HB 1489 and HB 1155 voted from House Rules Committee

September 13, 2009

Filed in: Capitol

Two bills, HB 1489 (Severance Tax) and HB 1155 (Surface Owners Protection Act) were voted from the House Rules Committee on Thursday and referred to the House Appropriations Committee. As noted in last week’s edition, Governor Rendell announced that the severance tax was “off the table” for the current budget.

This announcement was met with consternation from some and House Environmental Resources and Energy Chairman Camille “Bud” George issued a press release noting that the tax was “alive and well.” HB 1489 requires a driller to apply for a severance tax registration certificate, requires wellhead meters and establishes a reporting period defined as "a calendar month in which natural gas is severed.”

The tax imposed would be 5% of the gross value of units severed at the wellhead during a reporting period, plus 4.7 cents per unit severed. House Bill 1155 (George) The bill, known as “The Surface Owners’ Protection Act”, would:

Specify compensation to surface owners for damages;
Require detailed disclosure statements indicating the impact that mineral extraction will have on surface lands;
Compel parties to seek surface use and compensation agreements;
Implement standards governing the installation and operation of oil and gas wells and related facilities;
Detail the responsibilities of the owners of both the surface and mineral rights;
Outline the role of the Department of Environmental Protection.