Shale gas drilling permit fees more than double in Pa.
Monday, August 10, 2020
The price for a shale gas drilling permit in Pennsylvania increased 150% from $5,000 to $12,500 on Aug. 1, according to the Pittsburgh Post-Gazette.
Permit fees are raised periodically to cover the costs of running the Pennsylvania Department of Environmental Protection’s oil and gas regulatory program. The fees are the primary funding source for the program.
The recent increase was calculated based on an analysis of permit trends between 2014-17; however, those figures were outdated even before COVID-19Â sank fossil fuel prices and drilling investment.
The first half of 2020 had the lowest permit-issuance rate since 1993, with companies in the shale gas and conventional drilling industries combined receiving 523 permits to drill.
Learn more: Pittsburgh Post-Gazette > Fee hike more than doubles price for shale gas drilling permits in Pa.
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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.