Natural gas fee revenue drops in Pennsylvania again
Wednesday, June 28, 2017
For the third year in a row, Pennsylvania’s counties and municipal governments will see another drop in the annual fee revenue they receive from natural gas wells in the Marcellus shale play, according to the Associated Press.
Earlier this month, the Pennsylvania Public Utility Commission said impact fee revenue from Marcellus Shale wells dropped by almost $15 million to about $173 million in 2016. It was the third year of decline, but also the lowest annual payment in the six-year history of the impact fee.
According to the utility commission, fee revenue is declining because of an ongoing slump in natural gas prices and the increasing age of many of the wells.
Learn more: Pittsburgh Post-Gazette > Pennsylvania gas drilling fee revenue falls for third year
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Shale FAQ
How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.
Why does your Shale Well Map not show Pennsylvania?
The Ohio Department of Natural Resources provides all the information we use to generate our map. We haven’t been able to find a similar resource to pull well addresses from in Pennsylvania. Do you know of one we can use to add those wells?