(f) Report.--By June 15, 2018, and June 15 of each year
thereafter, each producer shall submit payment of the volumetric
severance tax to the commission and a report on a form
prescribed by the commission for the imposition period.
(g) Exemptions.--The volumetric severance tax imposed under
this chapter shall not be imposed on the following:
(1) natural gas severed, sold and delivered by a
producer at or within five miles of the producing site for
the processing or manufacture of tangible personal property
as defined under section 201 of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971;
(2) natural gas severed under a natural gas lease and
provided to a lessor for no consideration for the lessor's
own use; or
(3) natural gas severed from a storage field.
(h) 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.
(i) Administration.--The volumetric severance tax shall be
administered and enforced in the same manner as the
unconventional gas well fee under Chapter 23 (relating to
unconventional gas well fee).
(j) Use of money.--Money collected from the volumetric
severance tax under this section shall be transferred to the
State Treasurer to be deposited into the General Fund.
(k) 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 chapter
and the unconventional gas well fee imposed under Chapter 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.
(l) 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.
§ 5103. Minimum royalty.
2017/90BIL/HB1401A04529 - 4 -
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