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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY GREENLEAF, ERICKSON, KASUNIC AND RAFFERTY, JANUARY 12, 2011 |
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| REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, JANUARY 12, 2011 |
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| AN ACT |
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1 | Amending the act of December 19, 1984 (P.L.1140, No.223), |
2 | entitled "An act relating to the development of oil and gas |
3 | and coal; imposing duties and powers on the Department of |
4 | Environmental Resources; imposing notification requirements |
5 | to protect landowners; and providing for definitions, for |
6 | various requirements to regulate the drilling and operation |
7 | of oil and gas wells, for gas storage reservoirs, for various |
8 | reporting requirements, including certain requirements |
9 | concerning the operation of coal mines, for well permits, for |
10 | well registration, for distance requirements, for well casing |
11 | requirements, for safety device requirements, for storage |
12 | reservoir obligations, for well bonding requirements, for a |
13 | Well Plugging Restricted Revenue Account to enforce oil and |
14 | gas well plugging requirements, for the creation of an Oil |
15 | and Gas Technical Advisory Board, for oil and gas well |
16 | inspections, for enforcement and for penalties," providing |
17 | for gas mineral rights lease agreement disclosure and |
18 | indemnification. |
19 | The General Assembly of the Commonwealth of Pennsylvania |
20 | hereby enacts as follows: |
21 | Section 1. The act of December 19, 1984 (P.L.1140, No.223), |
22 | known as the Oil and Gas Act, is amended by adding a section to |
23 | read: |
24 | Section 603.2 Gas mineral rights lease agreement disclosure and |
25 | indemnification. |
26 | (a) (1) Prior to the execution of a gas mineral rights |
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1 | lease agreement, the gas drilling company shall disclose to |
2 | the landowner that the landowner may be liable to other |
3 | landowners for damages that result from the gas drilling. |
4 | (2) The disclosure shall be on a separate piece of |
5 | paper, in ten-point all capital type and shall include a |
6 | statement that the landowner should consult an attorney |
7 | before signing any document relating to a gas mineral rights |
8 | lease agreement. |
9 | (3) The disclosure shall be signed by the landowner |
10 | prior to or simultaneously with the execution of the |
11 | agreement. |
12 | (b) The department shall approve the form and content of the |
13 | disclosure statement required under subsection (a). |
14 | (c) A gas mineral rights lease agreement shall contain an |
15 | indemnification provision that holds the landowner harmless from |
16 | any and all liability, liens, claims and environmental liability |
17 | arising out of the drilling company's operations under the terms |
18 | of the lease. |
19 | Section 2. This act shall take effect in 60 days. |
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