West Virginia Governor Jim Justice recently signed a bill that guarantees mineral rights owners a minimum royalty of 12.5 percent regardless of the post-production deductions an oil and natural gas company makes, according to Marcellus Drilling News.

Senate Bill 360 was proposed to counter a West Virginia Supreme Court ruling from last May in Leggett v. EQT Production Company. The court reversed its decision from a few months earlier in its decision, allowing EQT to deduct post-production expenses from royalty payments.

Marcellus Drilling News believes this decision suggests there’s no reason why the Pennsylvania version of the new bill can’t be passed too.

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