This is huge for current and future leases! The is an amendment to the 1979 Oil & Gas Lease Act which A) guarantees a minimum NET royalty of 1/8 (12.5%) to landowners after any post production deductions by the gas company. B) It also directs that royalties will be paid at the market value price in an arms-length transaction with a 3rd party. In other words fair market price instead of "at the wellhead" where post production costs (transportation, dehydration, "marketing") are deducted. Here is the amendment. It's fairly short and simple.

http://www.marcellus-shale.us/pdf/Pa_HB1684_Royalty-deductions.pdf

Now, this has not passed the Pa House yet to become law. But if you have a lease, or have been royalties this will have a major impact on the $ you receive. I urge you to contact your local State Representative by email or social media and tell them to vote yes when this bill comes to the floor. Here's a list

http://www.house.gov/representatives/#state_pa

Here is a list of the committee members and their vote record on this amendment.

http://www.legis.state.pa.us/cfdocs/legis/RCC/PUBLIC/listVoteSummar...

I have thanked the supporting voters and castigated the dissenters via email and Facebook. Aside from Forced Pooling this is perhaps the most important issue for landowner's  since 1979. If you care about the income your lease will actually generate, then it is time to mobilize and spread the word. Trust me, your individual comments to these politicians will make a difference! This is an election year!

Now, be advised that this bill will NOT BE RETROACTIVE. It only applies to payments after it would get passed. And just because this bill passes doesn't necessarily mean your check will automatically be bigger. The O&G's will use every clause in your lease to hold on to revenue. I have some thoughts on that, and will start another discussion thread.

In the meantime, if you belong to any other county or shale forums pertaining to Pennsylvania PLEASE repost this information.