Utilities to drop slightly in tune with lower natural gas prices
Tuesday, January 6, 2015
The effects of record shale production will be felt by consumers this winter, and in a good way, Pittsburgh Tribune-Review reports.
In Western Pennsylvania, Peoples Natural Gas Co. and Equitable Gas customers will soon see a slight decrease in their natural gas bills due to lower commodity charges. Even though it will only be a drop of $3, it’s significant to note that commodity charges have been cut in half in Pennsylvania since 2008, when the Marcellus Shale boom began.
Even though natural gas prices have dropped, companies plan to increase drilling. They predict that many power companies will switch from coal to natural gas and that there will be a rising demand for liquified natural gas exports.
Via: Pittsburgh Tribune-Review > Utility users to benefit from natural gas price drop
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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.