Northwest Bancshares (NWBI) in Warren, Pa., has launched a service to help customers track royalties earned on gas and oil leases.
Northwest Savings Bank, the company's subsidiary with 166 community banking offices in Pennsylvania, New York, Ohio, and Maryland, has many customers who earn royalties from shale gas leases. Such leases are becoming increasingly common as natural gas production ramps up in the U.S.
The Royalty Manager service verifies payments and audits calculations of the company producing the gas or oil. It then distributes funds to customers' accounts according to their instructions and provides them with monthly and annual statements that track price and production data as well as deductions and expenses.
The service will benefit customers with more traditional oil and gas leases as well as those with shale gas leases, according to Northwest's senior oil, gas, and mineral officer, Bud Shuffstall.
"Old leases tend to have a net royalty provision," he said in a press release. "Royalty Manager tracks post-production expenses in net royalty leases, compares them with industry averages and flags any significant deviation from those industry averages for follow-up and resolution."
Northwest Bancshares has $8 billion in assets.