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House Environmental Resources and Energy Committee Approves Natural Gas Royalty Legislation
6/27/2016
HARRISBURG – Legislation authored by Rep. Garth Everett (R-Lycoming/Union) designed to protect natural gas drilling lease owners’ royalty payments was approved on a bipartisan vote of 20-7 by the House Environmental Resources and Energy Committee today. Joined by co-sponsors Reps. Sandra Major (R-Susquehanna/Wayne), Matthew Baker (R-Bradford/Potter/Tioga), Tina Pickett (R-Bradford/Sullivan/Susquehanna) and Karen Boback (R-Lackawanna/Luzerne/Wyoming), the following statement was issued:

“There has been a great deal of work done with legislative colleagues and stakeholders on this issue for some time and House Bill 1391 represents a more simplified effort to provide fairness for natural gas drilling lease holders. The approval by the committee signals that this is a good bill worthy of open debate on the House floor.

“This bill would protect lease owners by guaranteeing that a minimum royalty payment for unconventional gas well production would not be less than one-eighth (12.5 percent). Companies have reduced royalty payments by deducting post-production costs.

“A 2010 Pennsylvania Supreme Court case determined that the General Assembly is the proper branch of government to determine public policy regarding royalty valuation. We have continued to push this effort for the protection of the shale gas well lease holders.

“We anticipate the floor debate to include an amendment process and we look forward to a spirit of cooperation as we get to the final passage of this legislation.”


Representative Garth D. Everett
84th District
Representative Sandra Major
111th District
Representative Matthew Baker
68th District
Representative Tina Pickett
110th District
Representative Karen Boback
117th District


Media Contact:  Raymond Smith
rsmith@pahousegop.com
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