Severance

West Virginia’s severance tax collections are projected to fall $192 million short of initial estimates for this fiscal year (FY) and grow at nowhere near the pace they did last year, said Gov. Earl Ray Tomblin’s spokesman a day after state-wide budget cuts were announced.

A dramatic decline in severance tax collections through the first three months of the fiscal year prompted West Virginia Gov. Earl Ray Tomblin on Monday to announce a 4% across-the-board cut in funding for most state agencies.

A legislative task force established to a reach a compromise on increasing Ohio’s unconventional oil and natural gas severance tax has said it would need more time to reach a solution, indicating that an Oct. 1 deadline announced by Republican leaders in June won’t be met.

Nearly three months into Pennsylvania’s state budget impasse Democratic Gov. Tom Wolf and Republican lawmakers are at loggerheads, with no agreement even remotely close as negotiations over a natural gas severance tax, education and other reforms appeared to breakdown on Wednesday.

Natural gas producers operating in Kentucky may not deduct severance taxes before calculating the amount of royalties to be paid to landowners, the Kentucky Supreme Court said Thursday.

Several states that produce large amounts of fossil fuels rely heavily on severance tax revenue, but Pennsylvania hasn’t received as large a revenue boost as might be expected from the wellhead fee it imposes on its substantial Marcellus Shale production, according to the Energy Information Administration (EIA).

Several states that produce large amounts of fossil fuels rely heavily on severance tax revenue, but Pennsylvania hasn’t received as large a revenue boost as might be expected from the wellhead fee it imposes on it’s massive Marcellus Shale production, according to the Energy Information Administration (EIA).

With a deadline fast approaching to pass a state budget, lawmakers in the Pennsylvania General Assembly have reached an impasse, with Republicans advancing their own spending plan that does not include a severance tax on oil and natural gas production, and Democratic Gov. Tom Wolf threatening to veto it.

With a deadline fast approaching to pass a state budget, lawmakers in the Pennsylvania General Assembly have reached an impasse, with Republicans advancing their own spending plan that does not include a severance tax on oil and natural gas production, and Democratic Gov. Tom Wolf threatening to veto it.