On Friday, Pennsylvania Gov. Tom Wolf signed legislation designed to increase transparency in oil and natural gas leases with landowners into law.
The legislation, sponsored by Sen. Gene Yaw (R-23), would ensure the leases have a clear and distinct assessment of the royalties landowners would receive.
“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 said. “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.”
The bill, S.B. 806, was supported by the Pennsylvania Farm Bureau, Pennsylvania Oil and Gas Landowner Alliance (POGLA), Bounty Minerals, and others. Effective four months from now, the law will require summary statements, if a landowner wants one, as well as timely payments, Yaw said.
“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, something I’ve heard a great deal about from leaseholders across our region,” Yaw said. “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.”
Advocates said the law was nearly a decade in the making and will make sure that all parties know what is expected of them and what they will receive.
“Senator Yaw has always been a tireless proponent for his constituents and all of the land and mineral owners of the Commonwealth,” said Bounty Minerals Director of Business Development Valerie M. Antonette. “Bounty Minerals was proud to partner with him to get SB 806 over the finish line after an eight-year campaign to bring more transparency to royalty statements. Ultimately, it was a cooperative effort between all stakeholders working together.”