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Ginter Pushes for Improvements to Assist Mineral Owners

June 16, 2021
Timothy E. Ginter News

State Rep. Tim Ginter (R-Salem) announces improvements to House Bill 152 today during the House Energy and Natural Resources Committee. The goal of these changes are to ensure unleased mineral owners will not be inflicted with unbearable costs deducted from royalties while balancing payments to oil and gas producer affiliates.

“I have had numerous meetings personally with landowners and constituents in addition to our large interested parties meeting we held in April,” Ginter said. “The discussion process is still ongoing and we will continue to have conversations. I’m grateful for the opportunity to participate in these.”

Substitute House Bill 152 includes several changes from the original bill, specifically: 

  • The lease option must include a royalty of 1/8th of the gross proceeds versus net proceeds received by the applicant on the sale of production;
  • Reduces the bonus payment percentage from 75 to 50 percent;
  • Reduces the nonparticipation charge from 300 to 200 percent of the carried amounts;
  • Eliminates the 30-day minimum time period that must pass before a unit application hearing may be held; and
  • Prohibits any person from undertaking operations under a unit order on the surface of a tract owned by an unleased mineral owner without the written consent of the unleased mineral owner.

“The work on this bill has been transparent and has brought several improvements on its original introduction – this is our legislative process at work,” said Ginter. “I’m thankful for everyone’s input so far and I look forward to continuing discussions with all interested parties as hearings continue.”

Another hearing for Substitute House Bill 152 will be forthcoming in the House Energy and Natural Resources Committee. Representative Ginter looks forward to continuing to work with interested parties and constituents to ensure this legislation is fully vetted before passing out of committee.