Pennsylvania ruling may drop impact fees by millions
Thursday, April 27, 2017
Public utility regulators worry a Pennsylvania court ruling may cut this year’s impact fee collection by $16 million, with the potential for larger declines in years to come as production from older wells continues to decrease, according to PowerSource.
The court’s decision frees companies from paying impact fees on shale gas wells that fall below the minimum production level in at least one month of the year. The Pennsylvania Public Utility Commission believes the court’s interpretation will exempt more wells, causing impact fee collections to drop by approximately 10 percent this year.
The Public Utility Commission plans to appeal the Commonwealth Court’s decision in Snyder Brothers, Inc. v. Pennsylvania Public Utility Commission.
Learn more: PowerSource > ‘Stripper’ well ruling could cause $16 million drop in impact fees
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How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
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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.
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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.