Mt. Vernon Register-News

State News

March 15, 2013

Fracking supporters announce well fees, tax rates

(Continued)

Under the agreed rates, well operators also would pay a 3 percent-per-barrel extraction, or "severance," tax during the first two years of operation. That tax would scale up after the second year depending on the well's average monthly production. The highest tax rate would be set at 6 percent.

Denzler told legislators he was "reticent" to estimate how much revenue fracking could generate for Illinois because production among wells varies. But he provided an overview using an estimated model: Production of 200 barrels a day per well, at a 3 percent tax rate, would generate just under $200,000 per year per well.

Denzler's group is among those that helped draft Bradley's proposal.

Gov. Pat Quinn, who has called it a jobs bill, reiterated his support Thursday, a day after House Speaker Michael Madigan said he supports a moratorium on fracking. Quinn cited the endorsement from some environmental groups that helped craft the legislation.

"If our environmental folks feel this is a safe bill, I think that's a good sign," he told reporters in Springfield after an unrelated event. "The bill that they've negotiated is a good bill, I hope it goes forward."

 

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