Corbett: It is not my intention to alter or affect the agreed-to terms of any existing lease

QFFECE THE Governor      
July 9, 2013



Today I signed Senate Bill 259, which amends Act 60 of 1979, commonly referred to as the Guaranteed 

Minimum Royalty Act. This legislation provides enhanced transparency to owners of oil and gas interests 

by requiring, at a minimum, that certain information which pertains to the payment for oil or gas production 

be disclosed on a royalty check stub or other means provided to the interest owner on a regular basis. 

These are important steps to better inform landowners and leaseholders regarding the production occurring 

from their property.  



I am aware of several questions and concerns which have been 'raised with regard to Section 4 of Senate 

Bill 259, which added a new Section 2.1 to the underlying statute. By signing this legislation, it is my 

intention, and I believe that of the General Assembly, to enhance the efficient development of oil and 

natural gas while safeguarding the rights and protections of landowners and leaseholders. 



It is not my intention to alter or affect the common-law Rule of Apportionment, or to alter or affect the 

agreed-to terms of any existing lease. I believe the constitutional protections which guard against legislative

impairment of contracts serves as an added backstop to these concerns.  



Moreover, I do not believe anything in Senate Bill 259 expands the ability of an oil or gas operator to define the size of a drilling unit, or to expand the ability of any operator to hold by production any parcels of leased land. Instead, the legal clarity provided by this legislation will further minimize environmental impacts and 

surface disturbance associated with oil or gas development; maximize the economic benefits of royalties 

realized by landowners and leaseholders; expand the number of royalty owners in the Commonwealth by 

encouraging the efficient development of oil and gas resources; and ensure that landowners and 

leaseholders are compensated fairly.  



I look forward to working with members of the General Assembly on additional, future steps to ensure that the interests of landowners are paramount.  



Sincerely, 

TOM CORBETT  

Governor

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Replies to This Discussion

Permalink Reply by Rick on July 23, 2013 at 1:48am

Jason, you are just talking in cliches.. sounds good, and rallies the troops, but those words have no substance. They mean nothing. Its like a politician saying "I'm against domestic abuse! but my opponent hasn't raised the issue, so therefore connect the dots" Do you not think there are republicans in new york? Are you sure everyone of them are on industry's side? Well here's a little tidbit for you, there are more democrats in Pa than there are republicans, so instead of bashing them, maybe you outta try to keep some of the less "radical left wingers" on the landowner's side, instead of blindly insulting their intelligence... ok? Not every democrat is against O&G development, but you can bet nearly everyone of them believe in landowner's rights when it comes to industry pushing them around. Also, on the other side of the coin, democrats arent the only ones who want safe developement of this resource, along with clean air, clean water, natural beauty, good working conditions, and saftey for people living around these wells.

Please dont be so trusting that industry will always do the right thing, and that job creation and wealth for us landowners will solve all of pennsylvania's problems. It aint that easy. If it werent for some people complaining, and watching the industry, they would still be handling frac water like they did 20 years ago... dump it in the river, or just mix it with lime and bury it on your property...

Permalink Reply by jason smith on July 25, 2013 at 5:24pm
You just don't get it Rick business owners are leaving New York in droves because of its left wing failed socialism policys of punishing the producers and giving it away to the takers...
Permalink Reply by Rick on July 26, 2013 at 1:39am

Jason.. where they goin? You mean all those skyscrapers in NYC will all be empty?....Still talking in cliches i see...

Permalink Reply by craig on July 26, 2013 at 8:05am

Rick, did you notice that  Jason said "business owners" most of which own their land and buildings, not renting in a skyscraper, and he said "New York", not NY city.

If NY city stays on its current path it probably won't take more than 8-10 years before you will see the empty buildings and vacant floors in skyscrapers. Forbes article http://www.forbes.com/sites/jennagoudreau/2013/02/07/the-states-peo...

For every one hundred movers in the state 42 are coming to the state and 58 are leaving. Do the math.

Permalink Reply by jason smith on July 26, 2013 at 5:47pm
Graig thanks for setting the record straight, and Rick New York is anti business friendly when you have crooked left wing radical politicians like Anthony Weiner...
Permalink Reply by Robert W. Sandera on July 16, 2013 at 4:35am

To all, Corbin is a bad governor that is trying or tried to make all kind of bad laws. And yes your right it is time for a third party to take the lead. People have no idea and are not represented what so ever the entire media is owned by one company and its all a bad joke.

 I need to address all you guys there has to be a federal law change. I got a oil man to actually move the lips without lying and your all being ripped bad especially Amish that don’t question things much. Our Country's Oil people have no intention or desire to make this Country energy Independent. This is why a controversial new figure is needed for President next time.

You have got to have the guts to risk your life to jail people and I've stated I do and I will. The problem is society was programmed to believe the way they thought the Country worked. Nothing could be father then the truth.

Give up all party allegiance if you ever want your Country back. I have the facts and evidence to prove why and will by the next presidential election. The question is will the public actually listen to truth or sit there and go oh that can't be right and vote to destroy their own life. That’s how much of this mess started and it was planned by the people above all Presidents.

Permalink Reply by LW on July 16, 2013 at 8:55am

Amen!

Permalink Reply by Robert W. Sandera on July 16, 2013 at 9:18am

“It is so vaguely written and so broad.” As a Federal Law specialist and Atty that goes after crooked politician specializes in constitutional and civil right law issues I can tell you those are two of the most important things that render law UNCONSTITUTIONAL Corbett is a regular Unconstitutional law specialist he writes such bad law and they do immediately get found unconstitutional. You guys shouldn’t take this garbage.

Permalink Reply by SpreadsheetWizard on July 17, 2013 at 5:37am

I own G&O rights and am stuck in a 37-year old lease.  The current leaseholder recently approached me to modify the lease and offered a signing bonus and increased royalties.  This law puts these negotiations in jeopardy.  The current crop of Republican legislators and the governor must be in the pocket of the drilling companies, because there is no way that this legislation can fail to harm landowners like me.

I hope that somebody mounts a legal challenge.  A class action suit would be a good way to go, and I would chip in and support one.

Unfortunately I am an absentee owner, and living out of state, there is no way I can vote to change things.  My advice is, if you must vote Republican, then vote in the primaries for candidates who are likely to keep the interests of landowners at heart.  The current crop clearly favors the drillers' interests.

F. H.

Permalink Reply by Inchworm antenna on July 17, 2013 at 4:58pm

I thought importance upon personal property rights is held in higher esteem amongst conservatives.  I guess Corbett and the Republicans who supported such a bill need an education conservative principals and what property rights mean.  Sad.  This is why a Tea Party is so important.

Permalink Reply by SpreadsheetWizard on July 18, 2013 at 2:33am

It appears that O&G lease ownership trumps mere land ownership where property rights are concerned in PA.

Permalink Reply by Rick on July 22, 2013 at 7:53am

Yes Frank, O&G lease ownership trumps us dumb farmers in the republicans eyes... their track record is proven time and time again to side against the landowner and in favor of the O&G companies in every single instance.... vote for the person that will have your best interest as a land/owner, mineral/owner on their agenda... republican or democrat... vote for YOUR protection... those fancy leases you have so carefully crafted may mean nothing shortly because there is new technology coming everyday that you didnt forbit in your contract...some of it doesnt have language for it as of yet...and as they say, if you didnt mention it in your lease, then it is assumed to be allowed!  Its gonna happen ..believe me..

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