Ohio Rep. Cera wants increased severance tax
Saturday, June 4, 2016
The Intelligencer / Wheeling News-Register reports that an Ohio representative is asking for increased severance taxes on the state’s oil and gas industry.
Rep. Jack Cera, D-Bellaire, states that increased truck traffic, air pollution and water use for fracking are taking a toll on eastern Ohio’s environment.
Ohio’s current severance tax is 3 percent per 1,000 cubic feet of natural gas. It should generate $30 million this year, but in House Bill 540, which Cera introduced in the Ohio General Assembly, $20 million would be given to the Ohio Department of Natural Resources’ Oil and Gas Division for its regulatory program. The other money would be given to communities impacted by the shale industry.
Read more: The Intelligencer / Wheeling News-Register > Ohio Rep. Cera Wants Bigger Share of Marcellus, Utica Shale Taxes
Related: Ohio’s oil and gas severance tax generated $21.3 million during last fiscal year — Feb. 4, 2016
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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.
These guys always have the same solution and it always involves someone else’s money.