1Imposing duties on lessees of oil and natural gas leases; and
2providing for the recording of <-releases surrender documents
3from oil and natural gas leases and of affidavits of
4termination or cancellation.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1. Short title.

8This act shall be known and may be cited as the Recording of
<-9Release Surrender Documents from Oil and Natural Gas Lease Act.

10Section 2. Definitions.

11The following words and phrases when used in this act shall
12have the meanings given to them in this section unless the
13context clearly indicates otherwise:

14"Lessee." A person who has the right to extract oil or
15natural gas, or both, pursuant to an oil or natural gas lease.
16The term includes an assignee of the lessee.

<-17"Lessor." An owner of oil and natural gas in place who 
18controls the oil and natural gas rights and has executed an oil
 

1or natural gas lease.

2"Oil or natural gas lease." A lease between <-an owner a 
3lessor and lessee for the extraction of oil or natural gas, or
4both, from the land of the <-owner lessor and which lease is
5recorded with the recorder of deeds of the county in which the
6land is located.

<-7"Owner." The person who owns the land on which an oil or
8natural gas lease is based.

9"Release." <-"Surrender document." A written document relating
10to an oil or natural gas lease which includes:

11(1) A brief description of the land upon which the lease
12is based, including the municipality in which the land is
13situated.

14(2) A statement that the oil or natural gas lease is
15terminated or canceled pursuant to the terms of the lease.

16(3) The date of the termination or cancellation.

17(4) A statement indicating that the lessee <-releases 
<-18surrenders all of the lessee's rights, duties and interests
19under the lease.

20(5) The signature of the lessee.

21Section 3. Lessee duty to provide <-release surrender document.

22(a) General rule.--Not less more than 30 days <-prior to after
23the termination or cancellation of an oil or natural gas lease,
24the lessee shall deliver to the <-owner lessor, without cost to
25the owner lessor, a <-release surrender document in recordable
26form.

<-27(b) Limitation on owner.--An owner who receives a release
28under subsection (a) may not record the release with the
29recorder of deeds for the county in which the land is situated
30until on or after the date of the termination or cancellation.

1(c) <-(b) Duty of recorder of deeds.--A recorder of deeds who
2receives a <-release surrender document that satisfies the
3requirements of this act shall record the <-release surrender 
4document.

<-5(d) (c) Applicability.--This section shall not apply if the
6lessee and <-owner lessor have expressed an interest in writing to
7each other of an intention to renew the oil or natural gas lease
8or to negotiate a new oil or natural gas lease.

9Section 4. Failure to provide <-release surrender document.

10(a) Notice to lessee.--If a lessee fails to provide a timely
<-11release surrender document as required under section 3, the
12owner lessor may serve notice on the lessee. <-The notice may be 
13served not less than 15 days prior to the date of termination or 
14cancellation. The notice shall contain the following:

15(1) A statement that:

16(i) The lease will be terminated or canceled
17according to its terms, including the date of the
18termination or cancellation.

19(ii) The lessee has a duty to provide a <-release 
<-20surrender document under section 3.

21(iii) The <-owner lessor has failed to receive a
22timely <-release surrender document from the lessee.

23(iv) If the <-release surrender document is not
24received by the date of termination or cancellation, the
<-25owner lessor has a right to record an affidavit of
26termination or cancellation of an oil or natural gas
27lease in the office of the recorder of deeds for the
28county in which the land is situated.

29(2) The names and addresses of the <-owner lessor, if
30contained in the lease.

1(3) The name and address of the person giving notice and
2a statement as to the person's interest in the land or
3relationship to the <-owner lessor.

4(4) The municipality in which the land is located and a
5brief description of the land.

6(5) If located in a unit, the name or description of the
7unit, if known to the <-owner lessor.

8(6) If there is a well on the land, the name or number
9of the well, if known to the <-owner lessor.

10(7) The date of the execution of the oil or natural gas
11lease.

12(8) The date of termination or cancellation of the oil
13or natural gas lease and the basis of the termination or
14cancellation.

15(b) Manner of service.--Service of the notice under
16subsection (a) shall be effected either personally or by
17certified mail to the lessee's last known business address, or,
18if service cannot be made by those means, by publication once a
19week for two weeks in a newspaper of general circulation in the
20county where the land is situated.

21(c) Challenge to notice of termination or cancellation.--If,
22after receiving a notice of termination or cancellation under
23subsection (b), the lessee disputes that the oil or natural gas
24lease will be terminated or canceled on the date stated in the
25notice, the lessee must, not <-less than seven days prior to the 
26date of the termination or cancellation stated in <-more than 30 
27days after receipt of the notice, deliver a written challenge to
28the <-owner lessor.

<-29(d) Effect of challenge.--An owner who receives a timely
30challenge from the lessee under subsection (c) may not record an

1affidavit of termination or cancellation of an oil or natural
2gas lease in the office of the recorder of deeds for the county
3in which the land is situated without an order of court.

4(e) (d) Effect of no challenge.--<-An owner A lessor who has
5served a notice under subsection (a) and fails to receive a
6timely challenge from the lessee under subsection (c) may record
7an affidavit of termination or cancellation of an oil or natural
8gas lease in the office of the recorder of deeds for the county
9in which the land is situated.

10Section 5. Affidavit of termination or cancellation.

11(a) Contents of affidavit.--An affidavit of termination or
12cancellation of an oil or natural gas lease shall contain the
13following information:

14(1) The names and addresses of the <-owner lessor and
15lessee.

16(2) The municipality in which the land is located and a
17brief description of the land.

18(3) If located in a unit, the name or description of the
19unit, if known to the <-owner lessor.

20(4) If there is a well on the land, the name or number
21of the well, if known to the <-owner lessor.

22(5) The date of the execution of the oil or natural gas
23lease.

24(6) The date of termination or cancellation of the oil
25or natural gas lease.

26(7) A statement that the <-owner lessor complied with its
27duty to serve a notice to the lessee under section 4(a) and
28that the lessee failed to provide a timely challenge to the
29notice as provided by section 4(c).

30(8) A notarized signature of the <-owner lessor.

1(b) Duty of recorder of deeds.--A recorder of deeds who
2receives an affidavit of termination or cancellation that
3satisfies the provisions of this section shall record the
4affidavit.

5Section 6. Effective date.

6This act shall take effect in 60 days.