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PRINTER'S NO. 1977
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1530
Session of
2017
INTRODUCED BY EVERETT, GODSHALL, PICKETT, ROZZI, MILLARD AND
WHEELAND, JUNE 12, 2017
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
JUNE 12, 2017
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 oil and gas estate abandonment,
for preservation of interests in oil and gas and for
applicability.
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. Oil and gas 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
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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 of Environmental Protection 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 6.2, 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.--
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(1) An interest in oil or gas deemed abandoned under
subsection (a) shall vest as of the date of the abandonment
in the owner of the surface in keeping with the character of
the surface ownership.
(2) 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.
(3) 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 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 claiming
the interest.
(4) State that the person desires to preserve the
interest and does 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
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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 been 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
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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.
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