Pennsylvania General Assembly passes bill regulating distribution of oil and gas royalty information to lessors

The Pennsylvania General Assembly has passed a bill (SB259) regulating how oil and gas royalty information is to be provided to lessors. As noted in an earlier blog posting the Pennsylvania House passed a bill earlier this year addressing this topic. The final version of the bill, which has been sent to the Governor, has some differences from the version previously passed by the House.

In addition to a few other changes, SB 259 no longer has a provision allowing for escrowing of payments. And, notably, while the required content of the royalty statement remains basically unchanged, the bill now states that the deductions that are to be shown are those deductions allowed by the “lease” as opposed to those allowed by “the division order, lease, servitude or other agreement” as in HB 1414.

Additionally, the prior House Bill included language regarding retroactivity of certain provisions and a direction that the addition of a certain section was intended to be a continuation of former section in the statute. That language does not appear in the Senate version. Nor is there an express repeal of a current section of the law, which was included in the prior House Bill.

This article was prepared by Jeremy Mercer ( or 724 416 0440) from Norton Rose Fulbright's Energy Practice.