Shale impact fee could be a possibility in Ohio, too
Tuesday, February 21, 2012
COLUMBUS — Drilling in the Marcellus shale is not new in Pennsylvania and it took some time to get an impact fee passed, so it has some wondering if Ohio could be next for such a fee.
Rob Nichols, press secretary for Ohio Gov. John R. Kasich, said an impact fee is under consideration for Ohio, but the state wants to make sure it moves forward cautiously.
“We need to consider such a law for Ohio,” said Nichols.
He said the laws governing the industry, such as the severance tax, were written long before anyone knew what was under the ground.
Nichols said the governor wants to find a way for all Ohioans to benefit from the shale, however, the governor is realistic and realizes there will be regulatory costs associated with the industry, and feels an impact fee could fund those needs.
“We have got to do this right. We take this very seriously,” said Nichols.
**** Read what some Pennsylvania counties and one township think about the Marcellus shale impact fee and what it means to the state. ****
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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.