One of the indisputable findings of our work on the impact of Marcellus Shale is that rent and royalty payments are having a significant impact on the incomes in counties where there are substantial wells drilled and operating.  And this begs the question: are the property assessors in these counties looking at the effect of rent and royalty payments on the value of land-both the acreage leased to gas drillers and neighboring properties that could suddenly become much more valuable?

A complaint often heard about Marcellus operations is that local governments and communities are being saddled with higher costs stemming from the drilling activity but do not have more revenue because there are no local fees or taxes levied directly on the gas companies.  The only revenue source for most local governments is the property tax. Sales taxes go to the state. Income taxes go to the state. Capturing wage taxes on non-residents who come and go is problematic. The longer term tax revenue generator will arise from property values.

Granted, when the gas runs out the value of the land will likely go down, but in the interim will counties with large levels of drilling activity and substantial rent and royalty incomes that will be in place for years at least consider looking at the market value of the rent and royalty producing land?