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Legislators pressured to "do something" about royalty payments
The issue of royalty payments and post-production deductions is complex and emotional, as articles in this week's news clips will attest. With the General Assembly scheduled to be in session just six more days this legislative session - three days this week and three days next week - lawmakers are under increased pressure to "do something." That something is to pass House Bill 1391, which would amend the Guaranteed Minimum Royalty Act to ban the apportionment of post-production costs to royalty owners.

PIOGA is opposed to HB 1391, which would in essence guarantee the leaseholder a profit of at least 12.5 percent. As President & Executive Director Dan Weaver said in an email today to House members, oil and gas leases are legally binding contracts that "do not guarantee producers a profit. As OGM owners, leaseholders must recognize and share the potential risks and benefits that accompany market conditions and that producers experience with every well drilled and all oil and natural gas produced."

"No other state in the country mandates this type of guaranteed profit to OGM owners" he continued. "This legislation will put Pennsylvania at a disadvantage for future investment, regardless of market conditions.

"The best way to improve market conditions is to change the inadequate pricing environment and address the concerns of leaseholders is to develop policies in Pennsylvania that encourage and support the increased use of natural gas and natural gas liquids. This includes new pipeline infrastructure to move gas to customers, a predictable regulatory climate, and incentives to grow manufacturing and other downstream users of natural gas."

We encourage members to register their opposition to HB 1391.
You can contact the bill's sponsor, Representative Garth Everett, via
this link. You can also identify and contact your own representative here. Additionally, the Associated Petroleum Industries of Pennsylvania sent House members a very persuasive letter last week that includes several strong talking points. Read it here.
The PIOGA Press - October issue
The latest issue of our monthly newsletter, The PIOGA Press, can be viewed by clicking here. Highlights include:
  • The new Chapter 78a regulations have arrived
  • Supreme Court strikes down several more Act 13 provisions
  • EPA extends deadline for ban of "unconventional" wastewater discharges to POTWs
  • DCED's Brinley talks about promoting Pennsylvania's energy assets
  • Updated state forest plan reinforces
    governor's leasing moratorium
A printed copy of the newsletter is mailed to the primary representative of each member company and to paid individual members. All members are invited to read the latest issue electronically.
Event highlights
Annual Meeting and retirement celebration. Make plans now to join us on the afternoon of Thursday, November 3, at the DoubleTree in Cranberry Township for PIOGA's Annual Membership meeting, along with a celebration for retiring President & Executive Director Lou D'Amico (pictured here). The annual meeting, which runs from 2-4 p.m., will include updates on the association's legislative, regulatory and education activities that impact your business, along with an open forum. Lou's retirement celebration follows from 4-7 p.m. Click here for more information and to RSVP. There is no charge to attend.

PGMD Fall Mixer. Get together after work with PIOGA's Pipeline & Gas Market Development Committee on Thursday, October 20, to learn about pipeline and gas market projects and meet industry colleagues. The event takes place from 5 to 7 p.m. at Dive Bar & Grille, Wexford. Cost, including appetizers and open bar, is $40 for PIOGA members and $50 for nonmembers. More details here. Please register by Friday, October 14.
SGICC white paper looks at cracker plant impact
The Ben Franklin Shale Gas Innovation and Commercialization Center (SGICC) has published a white paper taking a close look at Shell's coming petrochemical plant in Beaver County, its anticipated economic impact on the region and how businesses can take advantage of opportunities that arise from the facility.

"We decided that it would be helpful to our existing clients, and all PA-based companies to pull together a summary white paper to allow them to gain as good of an understanding as possible of what the Shell cracker is, the timeline as we could ascertain for its development and a broad view of what the buildout of the petrochemical industry means to our Commonwealth," Bill Hall SGICC director commented. "We wanted to provide a resource for stakeholders that allows them to gain a basic understanding of what is about to take place in Beaver County and beyond."
Hall also noted that developing the paper was challenging as there are many moving parts, and even with the facility, there are many pieces that remain to be solidified. "We've done our best to search for all publicly available information regarding the project, but readers of the paper should understand that what we are sharing is a snapshot at this time of where things appear to stand."

The paper can be downloaded



PIOGA's Annual Meeting and Retirement Celebration for Lou D'Amico

PIOGAtech Air Quality Compliance Training - Dec 8


Air Quality Compliance Training. PIOGA's Environmental Committee along with our partners All4, Inc. and Clean Air Engineering, Inc. will host a five-hour course on December 8 in Wexford that is designed to provide a basic understanding of the factors that influence air emissions, an overview of the regulations as they relate to oil and gas operations, compliance, and testing methods. The course is $100 for PIOGA members and $150 for nonmembers and will provide 5 continuing education units. For more information and registration, click here.

Upcoming Events


Pennsylvania 2016 Energy and Manufacturing Forum, featuring Senators Casey and Toomey, October 18, 8-10:30 a.m., Omni William Penn Hotel, Pittsburgh

Twin Tiers SPE Distinguished Lecturer, October 19, Penn College, Williamsport.

PIOGA Pipeline & Gas Market Development Fall Mixer, October 20, 5-7 p.m., Dive Bar & Grille, Wexford

Fall Open House, Penn Brad Oil Oil Museum, October 22, 2-6 p.m., Bradford

PIOGA Annual Membership Meeting and Retirement Celebration for Lou D'Amico, November 3, DoubleTree Pittsburgh Cranberry

Shale 101 Unplugged, November 2-3, Pittsburgh Airport Marriott

PIOGAtech Air Quality Compliance Training, December 3, The Chadwick, Wexford


Need to find some resource documents that were on the legacy Members Only Area?  Click here. If prompted for a password, use pioga-13.