West Virginia Senate Bill 360

As I read SB 360, it seems to guarantee that all lessors will receive a minimum of 1/8 (12 1/2%) of the gross sales of gas and oil from the leased acreage. I have a modern lease (six year old) with a royalty payment of 12 1/2%. After deductions, I receive less than 9%. Will I eventually receive 12 1/2% of gross or will my lease be forever subject to deductions?

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Permalink Reply by Nancy Mosley on March 22, 2018 at 7:38am

I think this is just for wells drilled on flat rate leases not on the modern ones. Not sure if this applies to one eighth royalty wells already drilled on these flat rate leases, or just any new well. There was a law passed around 1986 requiring any new well drilled on a flat rate lease to be a 1/8 royalty well but the language was not clear about deductions. This bill is supposed to clear that up.

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