Legislation recently introduced in the state Senate would ensure landowners receive a clear and distinct assessment of royalties paid to them through lease agreements with oil and natural gas operators.
Senate Bill 806 was written in response to land and mineral owners who expressed a lack of transparency regarding deductions from royalty payments. The deductions are subtracted from landowner’s checks and usually contain little or no description.
“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,” state Sen. Gene Yaw (R-Bradford County), the bill’s prime sponsor, 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. It also provides for summary statements, should a landowner choose to receive one, as well as timely payment requirements.”
The bill now moves to the House of Representatives for consideration. It has the support of numerous organizations, including the Pennsylvania Grade Crude Oil Coalition, the Pennsylvania Independent Oil & Gas Association, the Marcellus Shale Coalition, the Pennsylvania Farm Bureau, and the Pennsylvania Oil and Gas Landowner Alliance.