Laws sponsored by Pennsylvania state Rep. Eric Davanzo, R-Westmoreland, would outline what can and can’t be deducted from landowners when calculating compensation for pure gasoline harvested from their property.
Home Invoice 1763 would amend the Oil and Fuel Lease Act to outline royalty funds and make clear how they’re calculated.
The present Assured Minimal Royalty Act of 1979 stipulates that pure gasoline firms are liable for paying landowners a minimal of one-eighth of the worth of the gasoline harvested from their property. The act doesn’t outline a royalty or how it’s calculated.
Pure gasoline firms can cost postproduction prices that lead to funds beneath the one-eighth quantity.
“It’s essential to Pennsylvania landowners and trade representatives that the definition of phrases utilized in contracts is exact and simply,” Davanzo mentioned in a information launch. “This laws will present assurance that two events can work collectively in furtherance of this essential trade.”