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State Treasury Holds More Than $3 Million In Unclaimed Royalties

Over the past five years the state Treasury’s Bureau of Unclaimed Property has trackedĀ 16,022 properties that fall under ā€œmineral and royalty proceeds.ā€
From the Pittsburgh Business Times:

That totals $3.3 million, accumulated between 2007 and 2012, that is sitting in the stateā€™s system.
ā€œWhat happens with unclaimed property is that when it goes dormant, the ā€˜holderā€™ (financial institution or other entity) must file a holder report with Treasury and remit the unclaimed property,ā€ spokeswomanElizabeth FooseĀ said in an email. By law, after five years, holders must turn over abandoned property to the Treasury.

A 2013 report from the Allegheny Institute for Public PolicyĀ estimated that Pennsylvanians received $731 million in royalties during 2012.
However, that report relies on estimates landowners are receive the state’s minimum royalty– 12.5 percent (some have negotiated higher amounts).
A number of landowners have complained recently that they’re not receiving that minimum amount. They say some companies are taking out excessive deductions– known as “post-production” costs for moving the gas from the wellhead to the market.
The issue sparked a state Senate hearing earlier this summer, and a group of legislators is planning to introduce legislationĀ soon to try to clarify the law and guarantee the 12.5 percent legal minimum.

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