Pennsylvania Gov. Wolf’s severance tax meets opposition
Sunday, March 29, 2015
Pittsburgh Post-Gazette PowerSource reports that Pennsylvania Gov. Tom Wolf is proposing a Marcellus Shale severance tax on oil and gas drilling, while the largely Republican state Senate and House of Representatives wants to deal with other issues first.
Pipelines in the Marcellus Shale region haven’t been able to keep up with the production of natural gas, so prices have been depressed.
Chief of staff Drew Crompton, for Republican state Sen. Joe Scarnati, says that the problem with the severance tax lies in the tax increases that Wolf has proposed. Pennsylvania is the only state with major oil and gas production that does not have a severance tax.
From Pittsburgh Post-Gazette PowerSource:
“The severance tax proposal calls for a 5 percent tax on the value of the natural gas extracted from wells, 4.7 cents per thousand cubic feet (Mcf) on the volume of the natural gas, and a 5 percent tax on the value of natural gas liquids produced.”
Via: Pittsburgh Post-Gazette PowerSource > Pennsylvania lawmakers dig in on natural gas severance tax
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How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
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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.