Tuesday, February 18, 2014

Landowners Rally to Support Changes to Huge Deductions From Royalty Checks

From the Daily Review:
Over 100 people attended a rally in Towanda on Friday in support of House Bill 1648, which would help protect landowners from large deductions being taken out of their royalty checks for post-production costs. 
The bill, if passed, would make sure that landowners receive at least the state's 12.5 percent guaranteed minimum royalty and would prevent deductions for post-production costs from reducing royalty payments below 12.5 percent. 
State Rep. Tina Pickett, a prime sponsor of the bill, told those at the rally that she feels the bill has been experiencing "good momentum" in the Legislature. 
She said she believes that the bill would pass the House, if brought up for a vote. "I have great hope that the Senate will pass it, too," she said.
Read the rest of the article by clicking here. 

Some landowners are receiving as little as 1.5% royalty once the driller (primarily Chesapeake in this particular story) gets through with massive deductions for post-production expenses.  If anyone is surprised that Chesapeake would be so focused on the bottom line that they would treat those who've signed leases with them this poorly, perhaps they should talk to some of the hundreds of employees that were victims of the company's cost-cutting measures last year.

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