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Pickett Seeks Greater Transparency with Royalty Payment Deductions
6/11/2013

HARRISBURG – Seeking to increase transparency in the royalty payment process, Rep. Tina Pickett (R-Bradford/Sullivan/Susquehanna) today voted in favor of legislation to require natural gas operators to provide specifics about deductions from royalty payments.

House Bill 1414 would require natural gas operators to detail specific information regarding payment amount and deductions on interest owners’ royalty check stubs or payment form attachments.

“This legislation is all about enhancing transparency, and making sure that landowners know exactly what types of payments are deducted from their royalty checks,” Pickett said. “In many cases, landowners are having a difficult time trying to obtain this information, and there is no state requirement they do so. This measure seeks to put that requirement in law, and I am pleased to support it.”

The proposal would also safeguard, protect and enforce the correlative rights of mineral rights owners in a well or unconventional reservoir of gas to ensure that each mineral rights owner obtains his or her just and equitable share of production from such well or unconventional reservoir of gas.

The types of information that would be required to be included on the stubs would include month and year of gas production; total units sold; price received per unit; net value of total sales from the property, less taxes and deductions; company contact information; total amount of severance and other production taxes and other deductions; and the interest owner’s share, interest of production, and share of sales value.

House Bill 1414 passed the House on Tuesday, June 11, and was sent to the state Senate for its consideration.

Representative Tina Pickett
110th District
Pennsylvania House of Representatives
Media Contact:  Jennifer Keaton
(717) 705-2094
jkeaton@pahousegop.com
RepPickett.com / Facebook.com/RepPickett
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