Who knew that the West Virginia legislature had it in them?  They’ve gone and cut taxes!  Specifically, a severance tax on coal, oil, and gas that was intended to replenish the State’s Worker’s Compensation Fund’s old debts.  It’s not done yet, but the prognosis is good.

The legislature passed this particular severance tax back in 2005.  It was in addition to the usual severance tax, and imposed a 4.7 cents per MCF tax on all gas production.  At the time, they expected this tax to be in place until about 2025, but Marcellus shale development brought higher than expected revenue.  The old debts got paid off quicker than expected.

When the tax was imposed, Governor Earl Ray Tomblin was a State Senator, and he promised that the tax would be repealed once the debts were paid off.  I have to give him props.  It’s not often, after all, that you hear of a politician keeping promises.  That’s especially true when the promise is to repeal a tax.

We’re excited, because even though it’s only 4.7 cents per MCF, it’s something.  In today’s rough natural gas climate, any good news is very welcome.  This is good for producers, which in turn is good for royalty and mineral owners.  Here’s to a bump up, however slight, in your royalty checks!