West Virginia governor signs minimum royalty bill
Thursday, March 22, 2018
West Virginia Governor Jim Justice recently signed a bill that guarantees mineral rights owners a minimum royalty of 12.5 percent regardless of the post-production deductions an oil and natural gas company makes, according to Marcellus Drilling News.
Senate Bill 360 was proposed to counter a West Virginia Supreme Court ruling from last May in Leggett v. EQT Production Company. The court reversed its decision from a few months earlier in its decision, allowing EQT to deduct post-production expenses from royalty payments.
Marcellus Drilling News believes this decision suggests there’s no reason why the Pennsylvania version of the new bill can’t be passed too.
Learn more: Marcellus Drilling News > WV Gov Justice Signs Bill to Guarantee 12.5% Minimum Royalty
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Shale FAQ
What are mineral rights?
Mineral rights are the rights of the owner of the property to mine or produce any resources below the surface of the property. Mineral rights are different from surface rights.
Will I get free natural gas if I allow fracking on my property?
Maybe. It depends on your particular lease agreement. Some companies allow property owners a yearly free gas allowance. But, the process of connecting your property to the gas source may be more complicated. Some companies will provide a hookup, others require the landowner to provide one.