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Gas royalty rip-off

Two recent Butler Eagle front-page articles caught my attention.

One had to do with a group of oil lease holders suing to recover some $5 million in fees that were wrongfully deducted from their royalty payments.

The other had to do with state Rep. Garth Everett, R-Lycoming County, whose House Bill 1391 would amend the Oil and Gas Lease Act of 1979 so that lease holders would receive the full 12.5 percent royalty with no post-production costs being deducted. This bill has gone to the House Committee on Environmental Resources and Energy. Rep. Brian Ellis, R-Butler is a co-sponsor.

In my case, I am satisfied with my 12.5 percent royalty. I am not satisfied with costs being deducted from that amount.

About two-thirds of my June royalty was deducted for costs incurred. My share remaining was approximately one-third.

If my math is correct, my royalty has dropped to 4.5 percent. Great for shareholders of the various gas companies, but not so great for me.

For other lease holders, take a good look at your last statement. Do a bit of math. Are you seeing percentages close to mine?

My advice is to contact your state representative by phone, e-mail or letter and voice your concern. Ask that HB1391 be moved along through committee so that it can be brought to the floor of the full House for a vote.

Everett is on the House Committee on Environmental Resources and Energy, as is my representative, Jim Marshall, R-Beaver County. I have contacted both.

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