Bonus payments to landowners with oil and natural gas leases climbed to new highs during the third quarter, but they skyrocketed in Ohio’s Utica Shale, according to a survey by Farmers National Co. (FNC), a real estate management firm that also tracks data for landowners.
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A bill recently introduced in the Pennsylvania General Assembly would require the state’s Environmental Quality Board (EQB) to develop standards for the construction of oil and gas well pads in the Marcellus and Utica shales, according to Rep. Fred Keller, a Republican from central Pennsylvania.
The National Association of Publicly Traded Partnerships (NAPTP) recently warned its members that the Obama administration is considering corporate-level taxation of pass-through entities, such as master limited partnerships (MLP). Such a change could have significant consequences for the midstream energy sector where numerous companies are MLPs. The warning came in a confidential memo circulated to NAPTP members, which was leaked to Reuters. NAPTP Executive Director Mary Lyman would not share the memo with NGI but confirmed its distribution. In an e-mail to NGI, Lyman said, “At this point, there is no public proposal yet; we have simply heard that there is a proposal under discussion as part of corporate tax reform that would tax a broad section of pass-through entities, including MLPs — everything with gross receipts over $50 million.” The administration is still considering tax reform options, according to a White House spokeswoman.
Wyoming requires a “balanced approach” to protect the state’s wildlife and environment while allowing for all types of energy development, incoming Gov. Matt Mead said Wednesday.
Noting that while there are “important questions” about the environment, it has been reported that the Marcellus Shale could provide enough gas to meet U.S. demand for decades, while creating thousands of jobs, and most important can be developed responsibly, according to John Felmy, chief economist with the American Petroleum Institute (API).
Fresh data from the independent congressional Joint Committee on Taxation (JCT) reveal that as much as $700 million a year in subsidies are flowing to oil and natural gas companies as a result of a massive corporate tax cut bill that was enacted in 2004, according to Rep. Jim McDermott (D-WA).
Nova Scotia’s government last week issued a 25-year natural gas distribution license for the province on the assumption that the chosen distributor had natural gas supplies line up. However, the province has since learned that the new distributor does not have supply in place for its 4,000 potential customers and is still in the negotiating stages with several suppliers.