West Virginia Works to Eliminate Post Production Fees

by Elizabeth Alford on February 21, 2018

West Virginia is considering legislation that would adjust the way deductions are handled on royalty checks.

Learn more about and gas basics for mineral owners

Sometimes new mineral owners are shocked to open a royalty statement and see that the operator has withheld part of the royalty payment. This is a common practice that can include deductions for compression, dehydration, gathering, processing and treating. These fees are related to making the product marketable and can represent thousands of dollars, depending on the individual lease.
In early February, Sen. Charles Clements, R-Wetzel introduced Senate Bill 360 to eliminate post-production expenses and ensure that full royalty payments are made to mineral rights owners.
This week Charles Wilfong, president of the West Virginia Farm Bureau, called on lawmakers to move the bill forward.

“We need the leadership of the Senate to push this forward and get this out there to a vote at the Senate, and we need to get this done and passed out of the Legislature and signed by the governor.”

Read more at West Virginia’s Website



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