Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Oil Spill Response, Prevention, and Administration Fees Annotations

BONDED JET FUEL

Bonded jet fuel received at a marine terminal and then used in international flights is not subject to the fees. The fuel enters the state under bond pursuant to federal law and regulation and it remains under bond in segregated storage until it is shipped by pipeline to an airport facility where it is used exclusively on international flights. The imposition of the fees on such fuel would conflict with the federal government's regulation of foreign commerce. 3/23/93.

CREDIT INTEREST

There is no statutory authority for the payment of credit interest on refunds made pursuant to Government Code section 8670.48(i)(1) or Revenue and Taxation Code section 46653. Generally, such refunds are made when funds in the Oil Spill Response Trust Fund exceed $50,000,000. The statute authorizes the payment of credit interest on refunds made pursuant to Revenue & Taxation Code section 46501, for fees paid more than once or erroneously or illegally collected or computed. 6/5/92.

DIRECTIONAL DRILLING

An oil production facility is located on or near a beach and is 700 to 800 feet from the ocean. The oil wells are drilled 8,000 to 10,000 feet straight down and then angle out towards the marine waters to between 12,000 to 14,000 feet below the ocean floor. Since the oil production facility is not located in marine waters, the facility is not required to register or pay the fee. 4/16/98. (M99–1).

INDEPENDENT CRUDE OIL PRODUCER

Crude oil produced by an independent crude oil producer, as the term is defined in Government Code section 8670.48(c)(3), is not subject to the fees. 6/11/91.

PETROLEUM PRODUCTS

Tar

Tar is subject to the fees because it is a naturally occurring liquid hydrocarbon rather than a solid. 6/11/91.

TRANSPORT OF CRUDE OIL BY PIPELINE

A company that transports crude oil out of state by pipeline, but not through marine waters, is not required to register with the Board or pay the administration and prevention fee. However, the company is required to file a response fee return and pay the response fee if the conditions of Government Code section 8670.48(g) are met (that is, if the year-to-date cumulative barrels of oil transported out of state by all feepayers by vessel or pipeline exceeds six percent by volume of total barrels of crude oil and petroleum product subject to the oil response fee for the prior calendar year). 3/13/92.

ANNOTATIONS DELETED

Annotation Title Edition
Chemicals Produced by a Petrochemical Plant 7/24/91 2003–1
Definition 5/06/92 2003–1
LPG 5/28/91 2003–1
Motor Oil and Lube Oil 7/24/91 2003–1
Net Barrels 6/30/97 2003–1
Petroleum Products—Alcohol 7/24/91 2010–1