Report: Pennsylvania should enact severance tax, put revenue in trust fund
Friday, April 22, 2016
The shale drilling bust is eventually coming.
According to StateImpact Pennsylvania, states like Pennsylvania, where drilling has been a prominent industry during the oil and gas boom, should put revenue from drilling into trust funds.
Researchers from the Metropolitan Policy Program at Brookings Institution suggest that Pennsylvania should enact a natural gas severance tax and put some of the money generated from the tax in a permanent trust fund. Since shale drilling can be unstable, the trust fund would be a long-term investment source.
Pennsylvania Governor Tom Wolf proposed a severance tax in his 2016-2017 fiscal year budget. Currently, the state has an impact fee, though the fee’s revenue is expected to drop this year.
Read more: StateImpact Pennsylvania > States should put fracking money in trust funds, says new report
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What are mineral rights?
Mineral rights are the rights of the owner of the property to mine or produce any resources below the surface of the property. Mineral rights are different from surface rights.
Will I get free natural gas if I allow fracking on my property?
Maybe. It depends on your particular lease agreement. Some companies allow property owners a yearly free gas allowance. But, the process of connecting your property to the gas source may be more complicated. Some companies will provide a hookup, others require the landowner to provide one.