ILLINOIS POLLUTION CONTROL BOARD
March 19, 2009
CITATION OIL & GAS CORPORATION,
Bio Desulfurization Unit, (Property ID No. 15-
06-200-11),
Petitioner,
v.
ILLINOIS ENVIRONMENTAL
PROTECTION AGENCY,
Respondent.
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PCB 09-68
(Tax Certification - Air)
ORDER OF THE BOARD (by G.T. Girard):
On March 12, 2009, the Illinois Environmental Protection Agency (Agency)
recommended that the Board certify certain facilities of Citation Oil & Gas Corporation (Citation
Oil) as “pollution control facilities” for preferential tax treatment under the Property Tax Code.
See
35 ILCS 200/11-5
et seq.
(2006); 35 Ill. Adm. Code 125. Citation Oil’s natural gas liquids
(“NGL”) manufacturing plant is located near Odin in Marion County. In this order, the Board
describes the legal framework for tax certifications, discusses the Agency’s recommendation,
and certifies that Citation Oil’s air emissions sources at its site are pollution control facilities.
LEGAL FRAMEWORK
Under the Property Tax Code, “[i]t is the policy of this State that pollution control
facilities should be valued, at 33 1/3% of the fair cash value of their economic productivity to
their owners.” 35 ILCS 200/11-5 (2006);
see also
35 Ill. Adm. Code 125.200(a)(2). “For tax
purposes, pollution control facilities shall be certified as such by the Pollution Control Board and
shall be assessed by the Department [of Revenue].” 35 ILCS 200/11-20 (2006);
see also
35 Ill.
Adm. Code 125.200(a).
Under Section 125.202 of the Board’s procedural rules, a person may submit an
application for tax certification to the Agency.
See
35 Ill. Adm. Code 125.202. If the Agency
receives a tax certification application, the Agency must file with the Board a recommendation
on the application, unless the applicant withdraws the application.
See
35 Ill. Adm. Code
125.204(a). Among other things, the Agency’s filing must recommend that the Board issue or
deny tax certification.
See
35 Ill. Adm. Code 125.204(a)(4). If the Board finds “that the claimed
facility or relevant portion thereof is a pollution control facility . . ., the Pollution Control Board
. . . shall enter a finding and issue a certificate to that effect.” 35 ILCS 200/11-25 (2006);
see
also
35 Ill. Adm. Code 125.216(a).
2
AGENCY RECOMMENDATION
The Agency states that it received a tax certification application from Citation Oil on
December 26, 2006.
1
TAX CERTIFICATE
Rec. at 1. On March 12, 2009, 2009, the Agency filed a recommendation
on the application with the Board, attaching the application. The Agency’s recommendation
identifies the facilities at issue:
construction and installation of a Bio Desulfurization Unit. As a part of the NGL
manufacturing plant, the Bio Desulfurization Unit employs an innovative control
technology to control process emissions, using absorbtion techniques in
combination with biological treatment (i.e., hydrogen sulfide-eating bugs). Rec.
at 2.
The Agency’s recommendation further describes the facilities:
The control technology removes and breaks down the highly-concentrated
hydrogen sulfide that is found in the sour casing head gas that is processed in
NGL manufacturing. The process produces both elemental sulfur, which will be
sent to a landfill, and a sweet residue gas, which will be flared. As a result of the
project’s implementation, neither the acid gas from the NPL manufacturing plant
nor the existing well sites will need to be flared. Moreover, the resulting reduction
in hydrogen sulfide will reduce ambient sulfur dioxide emissions within a five
square mile area by an estimated 1,200 tons per year. Rec. at 2
.
The Agency recommends that the Board certify that the identified facilities are pollution
control facilities as defined in Section 11-10 of the Property Tax Code (35 ILCS 200/11-10
(2006)) because the primary purpose of the facilities is “prevent, eliminate or reduce air
pollution.” Rec. at 3.
Based on the Agency’s recommendation and Citation Oil’s application, the Board finds
and certifies that Citation Oil’s facilities identified in this order are pollution control facilities
under the Property Tax Code (35 ILCS 200/11-10 (2006)). Under Section 11-25 of the Property
Tax Code, the effective date of this certificate is “the date of application for the certificate or the
date of the construction of the facility, which ever is later.” 35 ILCS 200/11-25 (2006);
see also
35 Ill. Adm. Code 125.216(a). Section 125.216(d) of the Board’s procedural rules states that the
Clerk “will provide the applicant and the Agency with a copy of the Board’s order setting forth
the Board’s findings and certificate, if any
.” 35 Ill. Adm. Code 125.216(d) (quoting in italics 35
ILCS 200/11-30 (2006)). The Clerk therefore will provide Citation Oil and the Agency with a
copy of this order.
IT IS SO ORDERED.
1
The Agency’s recommendation is cited as “Rec. at _.”
3
Section 41(a) of the Environmental Protection Act provides that final Board orders may
be appealed directly to the Illinois Appellate Court within 35 days after the Board serves the
order. 415 ILCS 5/41(a) (2006);
see also
35 Ill. Adm. Code 101.300(d)(2), 101.906, 102.706.
Illinois Supreme Court Rule 335 establishes filing requirements that apply when the Illinois
Appellate Court, by statute, directly reviews administrative orders. 172 Ill. 2d R. 335. The
Board’s procedural rules provide that motions for the Board to reconsider or modify its final
orders may be filed with the Board within 35 days after the order is received. 35 Ill. Adm. Code
101.520;
see also
35 Ill. Adm. Code 101.902, 102.700, 102.702.
I, John Therriault, Assistant Clerk of the Illinois Pollution Control Board, certify
that the Board adopted the above order on March 19, 2009, by a vote of 5-0.
___________________________________
John Therriault, Assistant Clerk
Illinois Pollution Control Board
