THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL
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1 PRINTER'S NO. THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL No. Session of 0 INTRODUCED BY GODSHALL, COHEN, KORTZ, KOTIK, SWANGER, HALUSKA, CARROLL, MURT, WHITE AND MOUL, JANUARY 1, 0 REFERRED TO COMMITEE ON ENVIRONMENTAL RESOURCES AND ENERGY, JANUARY 1, 0 AN ACT Amending the act of July, 00 (P.L., No.), entitled "An act providing for the creation of a trust for the benefit of certain owners of interests in oil and gas; authorizing the trustee to enter into leases of interests in oil and gas under terms and conditions authorized by the court of common pleas; providing for the administration of the trust and for payment of moneys to the trustee; and imposing penalties for nonpayment," providing for oil and gas estate abandonment and for preservation of interests in oil and gas. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. The act of July, 00 (P.L., No.), known as the Dormant Oil and Gas Act, is amended by adding sections to read: Section.1. Oil and gas estate abandonment. (a) Circumstances deemed abandonment.-- (1) Except as otherwise provided under paragraph (), an interest in oil or gas in land owned by a person other than the owner of the surface, which has not been sold, leased, mortgaged or transferred by instrument recorded in the recorder of deeds office for the county where the interest is
2 located for a period of 0 years, shall be deemed abandoned in the absence of: (i) a permit to drill an oil or gas well issued by the department as to the interest; (ii) the actual production or withdrawal of oil or gas from the lands or from lands covered by a lease to which the interest is subject or from lands pooled, unitized or included in unit operations of the interest; or (iii) the use of the interest in underground gas storage operations, during that 0-year period. () An interest in oil or gas in land owned by a person identified under paragraph (1) shall not be deemed abandoned if the owner records a claim of interest as provided in section., prior to the latest of the following: (i) twenty years after the last sale, lease, mortgage or transfer of record of the interest; or (ii) twenty years after the last: (A) issuance of a drilling permit as to the interest; (B) actual production or withdrawal of oil or gas, from the land, or from lands covered by a lease to which the interest is subject, or from lands pooled, unitized or included in unit operations of the interest; or (C) use of the interest in underground gas storage operations. (b) Vesting of interest.-- (1) An interest in oil or gas deemed abandoned under subsection (a) shall vest as of the date of the abandonment 00HB00PN00 - -
3 in the owner or owners of the surface in keeping with the character of the surface ownership. () The owner of the surface who claims a vested interest in an oil and gas estate abandoned under subsection (a) shall record written notice in the recorder of deeds office for the county in which the land is located. () The notice shall: (i) Be verified by oath. (ii) Describe the land and the nature of the vested interest claimed. (iii) Provide the name and address of the person claiming the vested interest. Section.. Preservation of interests in oil and gas. (a) General rule.--an interest in oil or gas may be preserved by recording within the period specified by this act a written notice in the recorder of deeds office for the county in which the land is located. (b) Form of notice.--the notice shall: (1) Be verified by oath. () Describe the land and the nature of the interest claimed. () Provide the name and address of the person or persons claiming the interest. () State that the person or persons desire to preserve the interest and do not intend to abandon the interest. (c) Adequacy of description of interest.--a person other than the owner of the surface holding an interest in oil or gas in land for use in underground storage field operations may preserve the interest, and the rights of a lessor of the interest, by recording a single written notice defining the 00HB00PN00 - -
4 boundaries of and the formations included in the underground gas storage field without the necessity of describing each separate interest in oil or gas claimed in the underground gas storage field by that person. (d) Legal effect of recorded notice.-- (1) Recording a written notice under this section shall operate to preserve the interest in oil or gas included in the written notice from abandonment under this act for a period of 0 years after recording. () At the conclusion of the 0-year period, the interest shall be deemed abandoned if, during that 0-year period: (i) the nondormant character of the interest has not been evidenced by sale, lease, mortgage or transfer by instrument recorded in the recorder of deeds office for the county in which the interest is located; (ii) a drilling permit has not been issued; (iii) oil or gas has not actually produced or withdrawn from the land, or from lands covered by a lease to which the interest is subject, or from lands pooled, unitized or included in unit operations of the interest; (iv) there has been no use of the interest in underground gas storage operations; or (v) no similar notice has been filed. (e) Indefinitely preserving interest in oil and gas.--in the absence of prior abandonment, an interest in oil or gas in land owned by a person other than the owner of the surface may be preserved indefinitely from abandonment under this act by filing written notices as provided in this act or the performance of any of the acts specified in this act evidencing nondormancy of 00HB00PN00 - -
5 1 1 1 the interest within each succeeding 0-year period. (f) Affidavit of good faith.-- (1) For the purposes of this act, a person who uses an interest in the gas of the underground gas storage field operations may file a good faith affidavit in the recorder of deeds office for the county or counties where the interest is located, which affidavit must define the boundaries of the underground gas storage field and the formations included in the underground gas storage field. () An affidavit that complies with paragraph (1) shall be prima facie evidence of the use of the interest in the gas of the underground gas storage field operations. Section.1. Applicability. This act shall not apply to an interest in oil or gas owned by a governmental body or agency. Section. This act shall take effect in 0 days. 00HB00PN00 - -
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