HARRISBURG – Legislation requiring natural gas companies operating in Pennsylvania to standardize all deductions on royalty check payment stubs unanimously passed the state Senate today, according to Senator Gene Yaw (R-23).
Sponsored by Yaw, Senate Bill 259 would require companies producing natural gas to show on each royalty check stub, attachment to a payment form, or other remittance advice a detailed itemization of all royalty deductions from royalties paid to a leaseholder.
Currently, the state of Pennsylvania does not require gas companies to list deductions in any standardized form from royalties paid to a landowner.
The division order would include a name, number or combination of name and number that identifies the lease, property, unit or well or wells for which payment is being made; the county in which the lease, property or well is located; the month and year of gas production; total barrels of crude oil or number of MCF of gas or volume of natural gas liquids sold; price received per barrel, MCF or gallon; total amount of severance and other production taxes and other deductions permitted under the lease, with the exception of the windfall profit tax; the net value of total sales after deductions; the owners’ interest in sales from the lease, property, or well expressed as a decimal or fraction; interest owners’ share of the total value of sales prior to deductions; interest owners’ share of the sales value less the interest owners’ share of taxes and deductions; and contact information, including an address and telephone number.
“Senate Bill 259 provides openness and transparency for subsurface owners who presently receive royalty payments from natural gas companies,” Yaw said. “This measure mirrors what is seen in other natural gas producing states and provides specificity to those recipients on natural gas royalties. I commend my colleagues for supporting this bill.”
Senate Bill 259 now moves to the House of Representatives for consideration.
Contact: Adam Pankake
(717) 787-3280