|Posted:||January 18, 2013 09:06 AM|
|From:||Senator Gene Yaw|
|To:||All Senate members|
|Subject:||Division Order for Royalties|
|In the very near future, I plan to re-introduce legislation, Senate Bill 460 of last session, to require gas companies to list all deductions on royalty check pay stubs. Currently, the state of Pennsylvania does not require gas companies to list deductions from royalties paid to the landowner on monthly payments.
My legislation would require companies producing natural gas to show on each check stub, attachment to a payment form, or other remittance advice:
• A name, number, or combination of name and number that identifies the lease, property, unit or well or wells for which payment is being made;
• the county in which the lease, property or well is located;
• the month and year of gas production;
• total of barrels of crude oil or number of MCF of gas or volume of natural gas liquids sold;
• price received per barrel, MCF or gallon;
• total amount of severance and other production taxes and other deductions permitted under the lease, with the exception of the windfall profit tax;
• the net value of total sales after deductions;
• the owners’ interest in sales from the lease, property, or well expressed as a decimal or fraction;
• interest owners’ share of the total value of sales prior to deductions;
• interest owners’ share of the sales value less the interest owners’ share of taxes and deductions; and
• contact information, including an address and telephone number.
By introducing this legislation, we will provide openness and transparency for mineral rights owners as seen in other natural gas producing states.
Introduced as SB259