Backers of a measure to regulate high-volume gas and oil drilling in Illinois have agreed on the fees and extraction taxes that drillers would pay to the state.
The rates were announced Thursday during a House committee meeting. Industry operators will pay $13,000 per well to help fund the state's regulatory program. They'll also pay a 3 percent per barrel ``severance'' tax during the first two years of operation, and higher taxes in later years. Lawmakers are considering a measure to regulate hydraulic fracturing, or ``fracking,'' in Illinois. Fracking uses water, sand and chemical mixtures to crack deep rock formations to release oil and natural gas.
The committee will vote Friday on whether to move the proposal to the House floor for consideration. Wednesday House Speaker Mike Madigan announced he would support a bill that would place a moratorium on high volume hydraulic fracturing. That declaration apparently jump-started discussions on the fee structure for oil and gas companies that want to operate high-volume hydraulic gas wells. Marion State Representative John Bradley helped negotiate the bill that would put in place fracking regulations. He says he's happy they've been able to get something done. Bradley, who heads the house revenue committee, says he does not expect the fracking moratorium bill will be called for a vote this session.
The legislation is HB-2615
