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PA Landowners Gas Royalties

PA Landowners Gas Royalties

AP--A bill that would limit the ability of natural gas exploration companies to deduct costs before paying royalties to Pennsylvania landowners has the approval of a state House committee.

The bill passed the House Environmental Resources and Energy Committee on Monday, 15-to-10.

Under the bill, companies could deduct post-production costs, but a landowners' royalty payment couldn't go below one-eighth of the gas sale proceeds in the commercial market.

It would apply to existing and future drilling leases.