HARRISBURG — A bill recently introduced in the state House of Representatives would establish a more strict minimum royalty payment for unconventional gas well production.

House Bill 1391, introduced by Rep. Garth Everett, R-84th, on June 29, would amend the Oil and Gas Lease Act of 1979 to state that no lease holder may receive a royalty payment of less than 12.5 percent for their percentage ownership in a gas drilling operation.

The bill would protect landowners from unjustified post-production cost deductions, according to a news release from Everett.

Post-production costs can include compression, dehydration, transmission and other costs incurred between the wellhead and a final market point of sale.

After being introduced, it was referred to the House’s Committee on Environmental Resources and Energy.

Among the co-sponsors for the bill is Rep. Brian Ellis, R-11th.

Ellis said Thursday that the bill would ensure that all future leases would be written with standardized language and that land owners would not receive unfair deductions.

But existing leases would not be affected retroactively.

Ellis said he had heard concerns from residents who had seen news stories about land owners in Bradford County who were battling with Oklahoma-based Chesapeake Energy over royalties.

The energy companies operating in Butler County have been good partners to the community, Ellis said.

“Most of the companies here have been good actors by disclosing their costs up front and being transparent,” he said.

However, on Tuesday two Butler County property owners filed what they hope will become a class-action lawsuit against XTO Energy. The plaintiffs allege that XTO’s deduction of post-production costs from their royalties was a breach of contract.

They hope to reach a settlement on behalf of more than 100 landowners who are affected by the same situation.

In 2010 the Pennsylvania Supreme Court’s ruling on Kilmer v. Elexco Land Services stated that the law did not address cost deductions, but that the Legislature had the authority to set public policy on the issue.

The bill also would add a new section to the law stating that property owners may file a civil suit in county court if a drilling company has failed to pay the minimum royalty.

A statement released Thursday by Pittsburgh-based Marcellus Shale Coalition said, “Mineral owners are feeling the pinch of persistently low commodity prices, and even higher energy taxes will only further erode shrinking royalties. While we’re still reviewing this bill, it’s important to recognize that post production-related issues — which have been extremely localized and not widespread — are being actively addressed in the courts where contract matters should be addressed.”

Disputes over royalty payments in recent years have resulted in legal battles around the state.

Last year, at the request of Gov. Tom Corbett, Attorney General Kathleen Kane began an investigation into how Chesapeake charged leaseholders for certain expenses.