The Marcellus Shale formation in Pennsylvania saw quite a bit of action over the last week. However, while drilling is continuing, so is the great battle over royalty payments.
Pennsylvania Representative Garth Everett (R-Lycoming) announced last week that he is pushing his royalties bill once more. House Bill 1319 focuses on Pennsylvania landowners and making sure they receive fair royalty payments from natural gas drilling companies. Everett first introduced H.B. 1319 last year, but it did not make it on to the floor for voting, which is where Everett believes it would have been successful:
It’s being held up in strategic places by strategic people– the leadership in the Republican caucus … We just need to convince them. There are so many of us in favor of the bill, they’re obligated to allow us to take it to the floor.
The measure is an attempt to address complaints that have been made towards gas companies shorting lease holders on their royalty payments. Select gas companies have been charging people exorbitant fees, which are also known as post-production costs. These costs include the cost of processing and transporting natural gas through pipelines and compressor stations.
Due to these incidents occurring, several landowners have filed lawsuits, and those lawsuits are now affecting leasing for public land at state and local jurisdictions.
In 1979, a state law was created to guarantee that landowners would receive a minimum of 12.5 percent royalty from oil and natural gas wells. However, several people have reported they have received less, and in some cases up to six figures less than expected.
To read the full story regarding House Bill 1319 and landowners receiving fair royalty payments, click here.
The following information is provided by the Pennsylvania Department of Environmental Protection and covers June 22nd through June 28th.
Top Counties by Number of Permits
Top Companies by Number of Permits
TALISAN ENERGY USA INC: 7
RANGE RESOURCES APPALACHIA LLC: 6
CHEVRON APPALACHIA LLC: 5
CHESAPEAKE APPALACHIA: 5
PENNENERGY RESOURCES LLC: 3
JKLM ENERGY LLC: 3
APEX ENERGY (PA) LLC: 2
SENECA: RESOURCES CORP: 2
XTO ENERGY INC: 2
RICE DRILLING B LL: 1
SWEPI LP: 1
SWN PRODUCTION CO LLC: 1
CABOT OIL & GAS COPR: 1
SNYDER BROS INC: 1
HILCORP ENERGY CO: 1
EXCO RESOURCES PA LLC: 1
VANTAGE ENERGY APPALACHIA II LLC: 1