Legislation focused on assessments of royalties to hit gov’s desk
Legislation aimed at ensuring landowners are afforded a clear and distinct assessment of royalties heads to the governor’s desk, according to a news release from the bill’s prime sponsor, state Sen. Gene Yaw, R-Loyalsock Township.
“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, according to the news release. “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 legislation was supported by the Pennsylvania Farm Bureau and Pennsylvania Oil and Gas Landowner Alliance, among other groups. The Senate concurred on the legislation Thursday after the House of Representatives approved it 200-0.
“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, according to the news release. “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.”
The legislation, which affects assessments of royalties paid to property owners through lease agreements with oil and natural gas operators, also provides for summary statements, should a landowner choose to receive one, as well as timely payment requirements, the news release said.
“Pennsylvania Farm Bureau thanks Sen. Yaw for his diligent and persuasive advocacy on an issue of longstanding importance to our members,” said Rick Ebert, Pennsylvania Farm Bureau president, according to the news release. “Senate Bill 806 would provide much-needed clarity and certainty to Pennsylvania farmers about the royalties paid to them through lease agreements with oil and natural gas operators. We also thank the other stakeholders for their critical work throughout this process.”
The legislation now awaits the governor’s approval.