PRINTER'S NO. 1997
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1763
Session of
2021
INTRODUCED BY DAVANZO, BERNSTINE, BOBACK, R. BROWN, COOK,
SCHLEGEL CULVER, GAYDOS, GLEIM, JAMES, JOZWIAK, LEWIS
DELROSSO, LONGIETTI, MARSHALL, MILLARD, MOUL, OWLETT,
PICKETT, RYAN, SILVIS, SNYDER, STAMBAUGH, STRUZZI, WHEELAND
AND ZIMMERMAN, AUGUST 5, 2021
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
AUGUST 5, 2021
AN ACT
Amending the act of July 20, 1979 (P.L.183, No.60), entitled "An
act regulating the terms and conditions of certain leases
regarding natural gas and oil," further providing for
definitions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1.2 of the act of July 20, 1979 (P.L.183,
No.60), known as the Oil and Gas Lease Act, is amended by adding
a definition to read:
Section 1.2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Royalty." The lessor's ownership interest in the gross
proceeds generated at the first arm's-length point of sale of
oil, natural gas or gas of other designations to a third-party
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purchaser unaffiliated with the lessee or, to the extent the
underlying lease allows the lessor to take the lessor's royalty
in kind, the lessor's ownership interest in the oil, natural gas
or gas of other designations at the same location, but from
which ownership interest is excluded the costs of development
and drilling and all postproduction expenses directly or
indirectly incurred or paid by the lessee between the wellhead
and the point of sale.
Section 2. The addition of the definition of "royalty" in
section 1.2 of the act shall apply to oil, natural gas or gas
produced after the effective date of this section.
Section 3. This act shall take effect in 60 days.
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