Possible gas drilling bills are detailed
PROSPECT — A property owners advocacy group told a gathering Thursday night that it is monitoring state legislation to protect them against certain legislative changes tied to the Marcellus Shale natural gas drilling program.
About 30 people attended Thursday's meeting of the National Association of Royalty Owners at The Atrium on Route 422.
Brian Pitell, NARO regional manager, said he expects the following issues to come up this year in the state Legislature:
n a tax on natural gas extraction;
n forced pooling, which would make a property owner in the middle of a group of other property owners join with their plans to drill for natural gas;
n the Pugh Clause, which allows a property owner who finds that only a part of his property will be under gas production to use the rest of the property for additional gas development, instead of having it lay fallow;
n metering, which is currently not regulated by the state.
NARO was started in 1980 and is a nonprofit that promotes mineral rights and supports royalty owners, or the people who get payments for the extraction of oil and gas from their property.
NARO has about 2,500 members nationwide with chapters in 47 states. Pennsylvania has formed a new chapter in the wake of Marcellus Shale drilling and natural gas extraction. Before, it had been a part of the Appalachian Chapter.
Rodger Keith, a Penn State University extension educator, said estimates indicate natural gas usage will increase by at least 17 percent during the next 25 years.
He also said the Marcellus Shale industry would provide a rich environment for employment.
“These (drilling) companies want to train people locally to work on these wells for the long run, and so far Marcellus Shale has been a boost for rural areas that have been depressed (economically),” Keith said.
Both Keith and Jeffrey Morella of Morella and Associates, who spoke about estate planning, recommended property owners begin wealth management planning now, including estate planning for the mineral and royalty rights of their property.
“The peak production of these wells is usually the first two years, so you need to set aside money for tax liabilities and estate taxes in the future,” Keith said.
NARO will hold its first Pennsylvania state convention in State College March 31 and April 1.
Marcellus web sites
Information about Marcellus Shale natural gas is available at these websites:
• www.NARO-US.org. for the National Association of Royalty Owners
• www.naturalgas. psu.edu
• www.marcellus.psu. edu
• www.depweb.state. pa.us and select oil and gas
