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Royalty legislation passes state Senate

January 31st.

Legislation aimed at ensuring royalty owners are afforded a clear assessment of payments made to them through lease agreements with oil and natural gas operators unanimously cleared the state Senate on Wednesday.

“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," said the sponsor of Senate Bill 806, Senator Gene Yaw (R-Lycoming). "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.”

PIOGA supported the bill after an amendment was approved addressing some of our concerns about the timing of payments. SB 806 now moves to the House of Representatives, where PIOGA will continue to monitor its progress to ensure that both producers and their landowner partners are treated equitably.

Also last week, the House approved a bill to bring the way Pennsylvania tax code treats percentage depletion for oil and gas the same as under federal tax law. HB 199 passed the House by a vote of 118-82 and was referred to the Senate Finance Committee.

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