Royalties Rising in the Marcellus
Tuesday, June 11, 2013
Landowners typically receive two different payments for an oil and gas lease, a bonus payment and a royalty payment.
In Pennsylvania’s Marcellus, royalty payments are increasing, according to the Pittsburgh Business Times and a recent report by the Allegheny Institute for Public Policy.
According to the report, in 2008 royalty payments accounted for .0002 percent of Pennsylvania’s personal income, which totaled $513 billion. In 2012 royalty payments were 0.13 percent of personal income or $556.7 billion.
Remember, during 2008 the Marcellus was still in exploration mode.
» Via: Pittsburgh Business Times › Marcellus royalties rising
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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.