(3) natural gas severed from a storage field.
(c) Volume measurement.--
(1) Except as provided under paragraph (2), for purposes
of computing the volumetric severance tax, natural gas
severed shall be measured at the wellhead meter.
(2) Natural gas severed prior to the trigger date shall
be measured according to the standards and methods used for
reporting natural gas production to the department.
(d) Administration.--The volumetric severance tax shall be
administered and enforced in the same manner as the
unconventional gas well fee under 58 Pa.C.S. Ch. 23 (relating to
unconventional gas well fee).
(e) Use of funds.--Money collected from the volumetric
severance tax under this section shall be transferred to the
State Treasurer to be deposited into the General Fund.
(f) Independent Fiscal Office.--Beginning September 30,
2018, and quarterly thereafter, the Independent Fiscal Office
shall publish a report on its publicly accessible Internet
website that shows the calculation of an average effective tax
rate of the volumetric severance tax imposed under this article
and the unconventional gas well fee imposed under 58 Pa.C.S. Ch.
23, imposed for the preceding imposition period. The average
effective tax rate shall quantify the implicit tax burden
imposed on a producer by both the volumetric severance tax and
the unconventional gas well fee in a given year. The average
effective tax rate shall be based upon the market value of
natural gas at the wellhead using regional price information
from hubs located in this Commonwealth and postproduction costs
shall be deducted to approximate the value of natural gas at the
wellhead. The report shall include the methodology used to
calculate the average effective tax rate.
(g) Payment of tax.--A producer may not make the tax imposed
under this section on natural gas severed under a lease an
obligation, indebtedness or liability of the lessor and may not
otherwise require the lessor to reimburse the producer for the
amount of the tax.
Section 2403. Minimum royalty.
(a) Amount.--
(1) The minimum royalty payment made under the act of
July 20, 1979 (P.L.183, No.60), known as the Oil and Gas
Lease Act, to a lessor under a lease may not be less than
one-eighth of the gross proceeds received by the lessee for
the oil, natural gas or gas of any other designation
recovered by the lessee under the lease.
(2) A deduction or allocation of costs, expenses or
other adjustments may not be taken or made to gross proceeds
before calculating the amount of a royalty payment due to a
lessor under paragraph (1).
(b) Applicability.--The requirement to pay a minimum royalty
under subsection (a) shall only apply to oil, natural gas or gas
of any other designation recovered and sold by a lessee after
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