State Senate OKs bills to protect landowners who lease to drillers

Two bills proposed by state Sen. Gene Yaw that protect landowners who hold leases with natural gas drilling companies passed the Senate last week.
Two bills proposed by state Sen. Gene Yaw that protect landowners who hold leases with natural gas drilling companies passed the Senate last week. | Courtesy of the Pennsylvania Senate

The Pennsylvania Senate on Thursday passed two bills that helped protect landowners who had leases with natural gas drilling companies, State Sen. Gene Yaw said.

Senate Bill 147 and Senate Bill 148 aim to give leaseholders options when it comes to challenging royalty payments made by drilling companies. Yaw said the most important issue is making sure landowners are treated fairly.

“These bills will give landowners more weapons to use in their arguments with the gas-drilling companies that pay their royalties,” Yaw said. “We’ve tried to provide them with the tools that they can use to determine the accuracy of their royalty reports.”

Senate Bill 147 gives landowners the right to look at gas-company records to ensure they are receiving proper payments. The law also requires that proceeds from oil and gas production be paid within 90 days of the production, unless a lease states otherwise, to ensure royalty payments are made monthly.

Senate Bill 148 prohibits gas companies from terminating a lease agreement or ceasing development if the landowner challenges a royalty payment's accuracy. The Pennsylvania House of Representatives will now take up the measure.

Organizations in this story

Sen. Gene Yaw (R-23) 330 Pine St., Suite 204 Williamsport, PA - 17701

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