Law Wants Surcharge At Well Head
Published: July 9th, 2008
By: Melissa deCordova

Law wants surcharge at well head

NORWICH – Town of Norwich Supervisor David C. Law has called for a 10-cent surcharge on every 1,000 cubic feet of natural gas on producing wells in his town.

The revenue would be used to reduce property taxes, he told members of the Chenango County Planning Board yesterday, and is an effort to “be fair to our town’s citizens.” Law proposed the tax to town councilmen at a meeting in June. More than 30 residents were in attendance.

“If we don’t take a stand, there’s going to be a few big winners and a lot of losers in this,” he said.

It’s been a land rush over the past two years in Chenango County and other parts of the Appalachian Basin where natural gas landmen have heavily targeted landowners for drilling rights. Wells have been drilled and more are planned as national and international companies are hurrying to tap into the Marcellus Shale and other subsurface layers where large quantities of the energy source lies.

Law’s proposal was not approved. According to Councilman Adam Evans, the Norwich Town Board would be reviewing the legality of such a surcharge and the dollar amount it might represent.

“We are way too early in the game to propose new taxes on any industry that is interested in coming here, but I am not opposed to looking into it,” Evans said.

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