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11/30/2021 08:19 PM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20170&cosponId=24218
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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2017 - 2018 Regular Session

MEMORANDUM

Posted: June 23, 2017 10:00 AM
From: Representative Jason Ortitay
To: All House members
Subject: The Landowner Protection Act
 
Please join me as a co-sponsor of legislation to provide for increased fairness and transparency for landowners who lease their property for natural gas production from unconventional formations. This legislation also provides clarity for the entire oil and natural gas sector by legislatively codifying the point of valuation for royalty purposes.

The legislation prescribes which kinds of postproduction costs may be deducted from the proceeds of the sale of natural gas from unconventional wells in leases entered into after enactment. This will stop many of the abusive practices that we have heard about from our constituents. In addition, the legislation would provide landowners with the ability to receive a written summary of any deductions taken, and the ability to inspect the records to confirm the authenticity of those deductions.

The legislation also affirms that the application of the minimum royalty standard is based on the value of the oil, natural gas or gas of any other designation at the wellhead. This reflects a decision by the Pennsylvania Supreme Court in 2010 interpreting the language from the original 1979 act that set the minimum royalty standard.

I hope that you join me in co-sponsoring this important legislation.



Introduced as HB1708