Energy Environmental Blog

PA: Check Stub Statute Passes General Assembly

Written by Greg Russell | Jul 5, 2013 6:01:26 PM

The Daily Review is reporting that the Pennsylvania General Assembly has passed legislation addressing royalty payments:  "Senate Bill 259 would require companies producing natural gas to show on each royalty check stub, attachment to a payment form, or other remittance advice a detailed itemization of all royalty deductions from royalties paid to a leaseholder."

For a copy of the legislation, see here.

Note: There was an interesting amendment introduced before it passed (and included in the final legislation): "Where an operator has the right to develop multiple contiguous leases separately, the operator may develop those leases jointly by horizontal drilling unless expressly prohibited by a lease." The default allocation of royalties - "in such proportion as the operator reasonably determines to be attributable to each lease."