When a company wants to drill for natural gas, it will typically approach the person who owns the underground minerals in that location and negotiate a lease. That lease grants the mineral owner a certain percentage of the revenue generated from the gas well, known as the royalty.
But as StateImpact Pennsylvania has reported, disputes can arise over royalty money, particularly when companies take deductions for “post-production costs.” The costs often include expenses associated with transporting and treating the gas.
While Pennsylvania landowners have complained for years about deductions, now landowners across the country are echoing their concerns.
StateImpact reporters Marie Cusick and Amy Sisk discussed the latest surrounding these disputes today on “The Confluence,” a show produced by Pittsburgh NPR station WESA.
You can listen here: