THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY GODSHALL, LONGIETTI, MOUL, SOLOBAY AND SONNEY, FEBRUARY 25, 2010

REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, FEBRUARY 25, 2010  

AN ACT

Amending the act of July 11, 2006 (P.L.1134, No.115), 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 mineral 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 11, 2006 (P.L.1134, No.115),

known as the Dormant Oil and Gas Act, is amended by adding

sections to read:

Section 6.1.  Mineral estate abandonment.

(a)  Circumstances deemed abandonment.--

(1)  Except as otherwise provided under paragraph (2), 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

located for a period of 20 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 20-year period.

(2)  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 (b), prior to the latest of the following:

(i)  July 1, 2026;

(ii)  twenty years after the last sale, lease,

mortgage or transfer of record of the interest; or

(iii)  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.--An interest in oil or gas deemed

abandoned under subsection (a) shall vest as of the date of the

abandonment in the owner or owners of the surface in keeping

with the character of the surface ownership.

Section 6.2.  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.

(2)  Describe the land and the nature of the interest

claimed.

(3)  Provide the name and address of the person or

persons claiming the interest.

(4)  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

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 20 years after recording.

(2)  At the conclusion of the 20-year period, the

interest shall be deemed abandoned if, during that 20-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

the interest within each succeeding 20-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.

(2)  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 7.1.  Applicability.

This act shall not apply to an interest in oil or gas owned

by a governmental body or agency.

Section 2.  This act shall take effect in 60 days.