Natural gas severance tax still receiving opposition from shale industry
Tuesday, October 27, 2015
Pennsylvania Gov. Tom Wolf’s proposed severance tax to be enacted on shale gas drillers in the state could benefit some public entities, but the plan has also been met by opposition, Pittsburgh Tribune-Review reports.
Wolf has said that public schools would benefit from the funds collected by the severance tax. Recently, a number of top executives from the leading gas companies operating in Pennsylvania collectively asked legislative leaders to deny the tax.
The Republican-held Senate and House have turned down Wolf’s tax. Wolf has changed some details of the tax, such as lowering the percentage of the levy.
Via: Pittsburgh Tribune-Review > Shale executives raise pressure against severance tax
More about Pennsylvania’s severance tax:
- Pennsylvania Gov. Wolf’s tax plan, including severance tax for drillers, defeated Oct. 11, 2015
- Pennsylvania business owners sound off on proposed oil and gas severance tax May 20, 2015
- Proposed severance tax worries Pennsylvania officials April 1, 2015
- Pennsylvania Gov. Wolf’s severance tax meets opposition March 29, 2015
- Pa. oil and gas conference: Severance tax and legislation are big topics May 20, 2014
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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.