Shale well permit fees to more than double in Pennsylvania
Friday, January 24, 2020
A rule change approved on Tuesday by the Pennsylvania Department of Environmental Protection will more than double permit fees for shale gas wells, according to the Pittsburgh Post-Gazette.
The fee to drill a new Marcellus or Utica shale well will become the highest in the U.S., rising from $5,000 to $12,500. However, DEP regulators believe the hike is necessary to maintain the program that permits and inspects the commonwealth’s vast number of new and old wells.
Critics of the higher rate believe the fee will discourage companies from drilling new wells and may only compound DEP’s funding problems by driving permit applications lower.
Learn more: Pittsburgh Post-Gazette > Pennsylvania board votes to raise shale well permit fees 15%
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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.