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