Pennsylvania townships concerned that severance tax would replace impact fee
Thursday, February 18, 2016
Across Pennsylvania, the effects of Marcellus shale drilling can be seen in many counties. Through Act 13, the state’s impact fee passed in 2012, townships have been able to repair roads affected by heavy truck traffic to and from well sites, as well as other projects that weren’t financially able to complete before. The impact fee provides for the impact from unconventional gas wells.
According to Penn State Extension, some townships are concerned that if Gov. Tom Wolf’s proposed severance tax on oil and gas shale drillers is passed, the impact fee will cease to exist.
You can read the original report from Jill M. Ercolino here, which details the improvements that townships across Pennsylvania have been able to accomplish through impact fee money.
Read more: Penn State Extension > Natural Gas Impact Fee Brings Hope to Struggling Townships
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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.