HomeMy WebLinkAboutCC Ord 777 1969-02-03
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ORDINANCE NUMBER V-7
AN ORDINANCE OF THE CITY OF SEAL BEACH, CALIFORNIA,
A CHARTER CITY, ESTABLISHING A BUSINESS LICENSE TAX
FOR A PERSON OR PERSONS ENGAGED IN THE BUSINESS OF
EXTRACTING OIL FROM A WELL, PORTIONS OF WHICH ARE
LOCATED IN ONE OR MORE CITIES OR IN UNINCORPORATED
TERRITORY OF THE COUNTY.
The City Council of the city of Seal Beach, California, a charter
city, does ordain as follows:
Section 1. On or after July 1, 1969, every person conduction,
managing, carrying on, or engaged in the business or activity of produc-
ing crude oil, gas, petroleum, or other hydro carbon substances or
products from any well or wells where said well, or any portion of said
well passes through and/or is bOLtomed under any real property in the
City of Seal Beach and where portions of said well are located in one
or more other cities, or in the unincorporated territory of the county
or Orange or the County of Los Angeles, and where said well head is not
located within the City of Seal Beach, shall pay the sum or sums in
the manner and to the extent as hereinafter provided for a business
license tax:
1. The sum or sums to be paid on a per fiscal year basis,
payable quarterly.
2. For the fiscal year commencing July 1, 1969, and for each
succeeding fiscal year there shall be paid in the manner herein-
after provided, on or before September 30, December 31, March 31,
and June 30, respectively, an amount equal to one-cent per quarter
for each barrel of oil produced by each well in excess of three-
hundred barrels per quarter. Production during the months of
June, July, and August shall constitute the measurement of the
amount due on or before September 30 for the first quarter of the
fiscal year; production during the months of September, October,
and November shall constitute the measurement of the amount due
on or before December 31; production during the months of
December, January, and February shall constitute the measurement
of the amount due on or before March' 31; production during the
months of March, April, and May shall constitute the measurement
of the amount due on or before June 30. The first of such pay-
ments shall be due and payable on or D~e September 30, 1969.
3. For the purpose of determining the per license tax as pro-
vided in this ordinance:
a. A barrel of oil shall consist of forty-two U. S.
gallons of crude petroleum or hydro carbon substances
corrected for temperature variations in accordance
with methods generally approved in the petroleum
industry. Petroleum or hydro carbon substances means
crude oil remaining after the removal therefrom of
water or other impurities by preliminary processing in
the vicinity of the well site preparatory to the ship-
ment thereof.
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Ordinance Number
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3. (Continued)
b. If oil produced from two or more wells shall be
comingled without the production of the respective
wells being separately measured, each well whose
production has been so comingled shall be considered
as having produced an equal part of the total.
Section 2. The person subject to the payment of the tax shall,
before the business tax for each quarter becomes delinquent, file with
the city a written statement setting forth the number of wells in
operation and the number of barrels of oil produced by each well during
the pertinent three-month period of production upon which the tax due
is to be calculated, and such person shall pay at such time the amount
of the business tax computed upon the measure of the tax reported in
the statement. The written statement shall include a declaration
substantially as follows:
"I declare under penalty of making a false declaration
that I am authorized to make this statement, and that
to the best of my knowledge and belief it is a true,
correct, and complete statement made in good faith for
the period stated, in compliance with the provisions
of the Seal Beach City Code."
Such statements shall not be conclusive against the city as to the
information set forth therein, nor shall the filing of a statement pre-
clude the city from collecting by appropriate action any additional tax
that is later determined to be due and payable.
Section 3. Every person required to have a license under this
section shall keep full, true and accurate records as to the amount of
oil produced and shipped or sold by him from wells located within the
city and shall upon demand of the city manager make such records, to-
gether with any shipping documents or sales invoices pertaining to such
oil, available for the inspection of the city manager or his represen-
tative at all reasonable times.
(a) Nonproduction. Every person conducting, managing, carrying
on or engaged in the business or activity of oil well, injection well
or water source well drilling or servicing operations or refining oil
or petroleum products and producing the by-products or marketing,
selling, distributing at wholesale, oil or any petroleum proaucts or by-
products or maintaining tankage or warehouse storage facilities where
oil is kept for the purpose of wholesald distribution thereof shall
pay the sum of fifty dollars per year plus a sum equal to the total of
the following respective amounts per year per employee, in excess of
two for the average number of individuals employed by such person whose
principal activities are within the city during the twelve months
immediately preceding the thirty days next preceding the due date of
the license:
From 3 to 100 employees, inclusive
For the next 400 employees, inclusive
For all employees over 500 . . . . .
.$1.00
.50
. . .25
per
per
per
employee
employee
employee
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Ordinance Number
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A license issued pursuant to this subsection shall include and permit
the marketing, selling and distributing, at wholesale, of automobile
tires, batteries and accessories. The payment of one license as here-
inab0ve provided in this subsection sahlI permit the engaging in any
of the businesses or activities licensed without payment of an addi-
tional license taxi provided, however, that nothing in this subsection
shall be deemed to apply or relate to actual oil production operations
or to the operation of automobile filling stations.
Section 4. Penalty for Delinquency. If any fee herein required
to be paid to the City of Seal Beach is not paid at the time and in
the manner provided, the same shall, thirty days thereafter, automati-
cally be and become delinquent, and a penalty in an amount equal to
twenty-five (25) per cent of such fee shall be added thereto for such
delinquency, which penalty shall be and become a part of such fee and
shall be enforced and collected as a part of such fee.
Section 5. None of the provisions of this ordinance shall be
construed to affect or to invalidate in any manner the provisions of
Chapter IS, Section IS-lB. Oil Drilling, etc., operations generally,
or Chapter II, Section 11-117, Licenses and Business Regulations
Generally - Oil business, of the Code of the City of Seal Beach.
Section 6. Severability. If any section, subsection, sentence,
clause, phrase, or portion of this ordinance, or the application there-
of to any person, firm, corporation or circumstance, is for any reason
held to be invalid or unconstitutional by the decision of any court
of competent jurisdiction, such decision shall not affect the validity
of the remaining portions of this ordinance. The Council of the city
of Seal Beach hereby declares that it would have adopted this ordinance
and each section, subsection, sentence, clause, phrase, or portion
thereof, irrespective of the fact that anyone or more sections, sub-
sections, sentence, clause, phrase, or portion be declared invalid or
unconstitutional.
Section 7. Effective date. This ordinance shall be effective
within thirty (30) days after adoption.
Section B. The City Clerk shall
adoption of this ordinance and shall ca
required by law.
f'~EST: d } .
gt~AL~J ~-v.
C" y Cl!erk
TATE OF CALIFORNIA)
COUNTY OF ORANGE ) SS
CITY OF SEAL BEACH)
the passage and
to l?e posted as
I, Jerdys Weir, City Clerk of the City of Seal Beach, California,hereby
certify that the foregoing ordinance was passed, approved, and adopted
by the Ci~council of t~ City of Seal Beach at a meeting thereof held
On the 0L d~~~,: _ . 1969, by the foll~"'g ~te'
AYES: CouncJ.lmen ~. t, ~..Lc, jJIl#'''~ ~l-C~ ~~.._--.../
NOES: Councilmen "
ABSENT : Councilmen ~
, JERDYS WEIR. CITY CLERK OF THE CITY GE...S.!
~EACH, DO HER:OBY CERTIFY THAT THE FO ' , ~ler
ORDINANCE IS THE ORIGI~:AL O:1DINANCr: t:0 717
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