By DAVID BEARD
The Dominion Post
CHARLESTON, W.Va. — The Senate Education, Industry and Mining Committee unanimously approved on Tuesday a bill to ban post-production expenses from royalty checks for certain kinds of leases, and sent it on to the Judiciary Committee.
Committee chair Randy Smith, R-Tucker, said he had expected gas industry representatives to show up and oppose the bill, and he was prepared to send SB 360 to a subcommittee for massaging, but no one appeared so he went ahead and held a vote.
SB 360 prohibits deduction of post-production expenses — such as transportation and processing for sale — from royalty payments.
The bill applies only to old flat-rate leases that were converted to one-eighth royalty leases based on a 1982 change to state code.
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