A little over a month ago, Bradford County, PA commissioners voted to hire a public relations firm to create a video to force the issue of passing House Bill (HB) 1391, a bill ensuring PA’s landowners will receive a 12.5% royalty check regardless of post-production costs (see Bradford Votes to Hire PR Firm, Targets PA Lawmakers re Royalties). The video is out and it is powerful–watch it below. The video leaves little doubt that Chesapeake Energy has dealt in bad faith with landowners in Bradford County. The local animal care shelter signed a lease with Chesapeake, and instead of getting royalty checks, they’ve gotten a bill from Chesapeake stating the shelter OWES Chesapeake $30,000! What landowner, in their right mind, will EVER sign a lease with Chesapeake again if others sign and end up owing the company money? It’s nuts–and everyone knows it. The purpose of the video is to push passage of House Bill (HB) 1391 which would guarantee landowners receive what they were promised–12.5% royalties from the gas sold. However, the drilling industry continues to push legislators to defeat the bill. Their argument is that the entire industry of already-signed contracts should not be abandoned over the actions of one bad actor. Last Friday the American Petroleum Institute sent a letter to PA legislators (copy below) outlining their reasons. The royalty civil war continues…
