Pennsylvania's Clean and Green Law Amended to Protect Marcellus Gas Landowners

On October 27th Governor Rendell signed Act 88 of 2010 into law. Act 88 protects landowners who participate in Pennsylvania’s “Clean and Green” program from large roll-back taxes due to the development of a gas well or pipeline on their property. 

 

You can read more about Act 88 and how it will affect landowners at http://www.pagaslaw.net/clean-green_amended.html

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Permalink Reply by John Weightman on November 18, 2010 at 4:46am
Hi Melissa thanks for the great info.
Would you happen to know any websites that address draft legislation regarding the Marcellus as far as units and such ?
Permalink Reply by Frank Walker on November 18, 2010 at 5:34am
This is excellent information. Thanks!

Just want to add the following:

AFAIK, this new law is NOT retroactive.

So if you were drilled in the past, and if you then were rolled back on the entire parcel in the past . . well . . all you can do is smile and pay up. The smile is optional, BTW.

For anyone confused by this new law:

The "rollback on the entire parcel", prior to passage of this new law, was only operative in four PA counties anyway. There are sixty-seven counties in this Commonwealth. So the new law impacts unevenly.

I do not know all four of the counties which rolled back on the entire parcel prior to this law. But Bradford and Susquehanna did so. Sullivan might also have done so (not sure).

Finally, if you are on the bubble:

Watch out for the effectivity date of this law. It might be 01/01/2011. I'm not sure.
Permalink Reply by Jeffrey A. Marshall on November 19, 2010 at 2:00am
The Clean & Green Law Amendments mentioned in my article are effective 60 days after the legislation was signed by the Governor on October 27, 2010.

Jeff Marshall
Permalink Reply by Frank Walker on November 19, 2010 at 2:23am
Excellent information.

I'm not sure if it's even possible. But landowners about to experience a rollback-triggering event in one of the four impacted counties might wish to attempt seeking a delay until 12/27/10.

Exception:

If your lease protects you, you have no worries or concerns. But read your lease very carefully. Many leases which appear to offer rollback protection, in reality contain wording which limits Lessee's vulnerability just to the acreage occupied by Lessee's development activity. That doesn't help much when, for example, the pad is six acres and the entire parcel is three hundred acres!! In a situation like that the rollback tax hit for the landowner could easily be many thousands of dollars.
Permalink Reply by Robin Fehrenbach Scala on November 23, 2010 at 4:03pm

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