Monday, February 3, 2014

Hearing cancelled on PA royalty check deductions bill

A public hearing on HB 1684, scheduled for tomorrow, February 4. 2014, has been cancelled by the House Environmental Resources and Energy Committee, likely
due to the snow storm that is hitting Pennsylvania and neighboring states.

Sponsored by
State Rep. Garth Everett (R-Lycoming), the legislation aims to limit natural gas-drilling companies from deducting post-production costs from royalty checks.

Post-production costs are the expenses involved in processing and transporting gas from the
well to the market.

Although state law requires oil and gas companies to give a minimum royalty of 1/8th (or 12.5 percent), many landowners have been complaining recently they are receiving far less.

They have accused some companies–particularly Chesapeake Energy–of withholding significant amounts of money and charging them for the post-production costs. 

Read more on the legislation in State Impact's Bill aims to curb royalty check deductions

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