2023 Legislative & Regulatory Update

As we prepare to close out 2023, let’s take a look at the year’s legislative updates for the tri-state area.

Pennsylvania Legislative Update

Pennsylvania opened its legislative session January 3 and is scheduled to close on November 30. HB1273, which attempts to improve a volumetric severance tax on unconventional natural gas, was introduced May 31. The tax fee does not affect the collection of the unconventional gas well fee imposed under Chapter 23 of the Tax Code (Impact Fee), and is graduated based on the average annual price of natural gas for the calendar year preceding the start of the imposition period, as shown in the table below.

Average Annual Price of Natural Gas for Calendar Year Immediately Preceding the Start of the Imposition Period Tax Rate per MCF Severed
Less than $3 $0.134
Equal to or greater than $3 and less than $5 $0.152
Equal to or greater than $5 and less than $6 $0.174
Equal to or greater than $6 $0.200

For fiscal year 2023-24, the imposition period is July 1, 2023, to April 30, 2024. For FY 2024-25 and beyond, the imposition period is May 1 of the preceding fiscal year to April 30 of the current year. By June 15, 2024, and by that date each year thereafter, every producer must submit payment of the volumetric severance tax to the department and submit a report on a form prescribed by the department for the imposition period.

West Virginia Legislative Update

West Virginia’s legislative session ran from January 11 through March 11. SB13 would amend sections 22-6-2 and 22-6-29 to provide for a $100 annual oversight fee per well for wells producing more than 10,000 cubic feet of gas per day (10 MCF) and allow for transfer of this fee to the Oil and Gas Reclamation Fund. It failed sine die.

Ohio had no legislative updates.

This update is based on legislative and regulatory information available at the time of publication and is not intended as legal, tax or accounting advice.

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