Agencies investigate if shale drillers are cheating Pennsylvania
Sunday, April 12, 2015
Property owners who have leased their land for drilling may question if they’re being paid properly by drilling companies, and now the commonwealth of Pennsylvania is questioning its royalty payments, too.
StateImpact Pennsylvania reports that some some oil and gas companies will charge landowners post-production fees, which are said to the expenses of moving gas from wells to markets, and also for compression, dehydration, pipeline transport and other processes.
In Pennsylvania, the Department of Natural Resources Conservation (DCNR) and the Game Commission manage drilling on public land. The two agencies have investigated companies that have drilled on public lands, and so far DCNR has found problems with Chesapeake Energy. Meanwhile, the Game Commission is working to determine what is and isn’t allowed on its leases.
Via: StateImpact Pennsylvania > Are Marcellus drillers cheating the state? Agencies take a closer look
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Shale FAQ
How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.