PENN ROAR January 2013 Volume 3 Pennsylvania’s Royalty Ow ners Action Report Issue 1 Penn ROAR, 359 Route 106 Greenfield Twp, PA 18407
[email protected] 570-267-4083 for advertising Inside NARO-PA premiere party & January 22 @ Montrose VFW … see page 5 This Issue Page 3… Market Enhancement Clauses and ‘Deductions’: New Well Owners Do I Have a Claim Against the Gas Company for Improper Booklet Answers Many Questions Royalty Payments? By: Douglas A. Clark, The Clark Law Firm, PC Page 4… An extremely hot issue at the present New Documentary addressing royalty calculation in effort to Aims to Correct time involves post-production costs or eliminate or reduce post-production costs. “Lies” and “deductions” that landowners are seeing One common royalty addendum “Misinformation” subtracted from their gas royalty checks. provision, often referred to as a “Market Typically, boilerplate Oil and Gas Leases Enhancement Clause”, began to surface in offered to landowners clearly permit the gas Page 6… many Oil and Gas Lease Addendum. The New Tax Rates & company to deduct post-production costs for “Market Enhancement Clause” provides as Rules to Affect Your the cost of producing, gathering, storing, Wallet for 2013 separating, treating, follows: dehydrating, processing, MARKET Page 7… transporting and marketing ENHANCEMENT Legislative Update the oil and gas. CLAUSE In the 2010 Pennsylvania All oil, gas or Page 8… Supreme Court’s decision in other proceeds accruing Marcellus Shale Kilmer v Elexco Land to Lessor under this lease boom sparks Services, Inc. et al., 605 or by state law shall be student's interest in oil, gas law Pa.413, 990 A.2D 147 (Pa.