1Amending the act of July 20, 1979 (P.L.183, No.60), entitled "An
2act regulating the terms and conditions of certain leases
3regarding natural gas and oil," further providing for royalty
4guaranteed.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1. Section 1.3 of the act of July 20, 1979 (P.L.183,
8No.60), known as the Oil and Gas Lease Act, added July 9, 2013
9(P.L.473, No.66), is amended to read:

10Section 1.3. Royalty guaranteed.

11A lease or other such agreement conveying the right to remove
12or recover oil, natural gas or gas of any other designation from
13the lessor to the lessee shall not be valid if the lease does
14not guarantee the lessor at least one-eighth royalty of all oil,
15natural gas or gas of other designations removed or recovered
16from the subject real property. Unless otherwise provided for in 
17the terms of a lease, royalties shall be calculated on the gross 
18value of the oil, natural gas or gas of other designation at the
 

1wellhead. The lessee may not deduct any severance taxes, impact 
2fees or postproduction costs, including any loss of volume or 
3costs associated with gathering, dehydration, compression, 
4treatment, processing, transporting and marketing the product. 
5Deductions shall only be enforceable if the value of the royalty 
6after the deductions results in at least one-eighth, or that 
7percentage or royalty determined by the lease, of the gross 
8value of the oil, natural gas or gas of other designation at the 
9wellhead.

10Section 2. This act shall take effect in 60 days.