Aug. 11, 2017
HARRISBURG — Rep. Jason Ortitay (R-Washington/Allegheny) today introduced legislation to increase fairness and transparency for landowners who lease their property and receive natural gas royalties.
“My office has received numerous calls regarding concerns with gas royalty payments,” Ortitay said. “While my proposal – or any legislation – cannot change existing leases, if approved, it would put in place important protections to make sure landowners receive the royalties to which they are entitled. This is something the legislature can – and should do – and I am proud to be spearheading this measure on behalf of royalty owners across Pennsylvania.”
House Bill 1708 defines what post-production costs are and outlines what is considered to be an acceptable deduction. In addition, the legislation would allow landowners to receive a written summary of any deductions taken and create an audit provision allowing landowners to review the records to confirm the authenticity of those deductions. Third, the bill would guarantee all sales take place as an arms-length transaction ensure appropriate business practices that do not jeopardize royalty owners. Finally, the legislation would prohibit the issuance of negative balance royalty checks.
“It is critical that the legislature take action to protect landowners and make sure companies live up to their end of the agreements,” Ortitay said. “And fundamentally, lessors should have peace of mind knowing they never owe a company money for royalties, as this was something brought to my attention that we are going to clear up in this legislation once and for all.”
The 46th Legislative District includes Collier and South Fayette townships and Bridgeville, Heidelberg, McDonald and Oakdale boroughs in Allegheny County. It also encompasses Canton, Cecil, Mt. Pleasant, Robinson and Smith townships and Burgettstown, McDonald and Midway boroughs in Washington County.
The 46th Legislative District includes Collier and South Fayette townships and Bridgeville, Heidelberg, McDonald and Oakdale boroughs in Allegheny County. It also encompasses Canton, Cecil, Mt. Pleasant, Robinson and Smith townships and Burgettstown, McDonald and Midway boroughs in Washington County.
Representative Jason Ortitay
46th Legislative District
Pennsylvania House of Representatives
Media Contact: Tracy Polovick
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