HARRISBURG – Legislation aimed at ensuring landowners are afforded a clear and distinct assessment of royalties paid to them through lease agreements with oil and natural gas operators cleared the state Senate today, according to prime sponsor Sen. Gene Yaw (R-23).
Senate Bill 806 was supported by the Pennsylvania Farm Bureau, Pennsylvania Oil and Gas Landowner Alliance, Marcellus Shale Coalition, Bounty Minerals, Pennsylvania Independent Oil & Gas Association (PIOGA), Pennsylvania Grade Crude Oil Coalition (PGCC) and others.
“Concerns have been expressed by land and mineral owners for some time now centered on the lack of transparency that can come with deductions from their royalty payments,” Yaw noted. “In some cases, general deductions with little to no description are subtracted from landowner’s checks, leaving them with a fraction of what was promised.”
“My legislation would not impact lease agreements, but it would require entities making payments to landowners to provide more description, clarity and uniformity on their royalty check statements. This proposal is designed to help ensure all parties feel their lease agreements are executed as intended, and it will help mitigate concerns that have developed in recent years. It also provides for summary statements, should a landowner choose to receive one, as well as timely payment requirements.”
Senate Bill 806 now moves to the House of Representatives for consideration.