THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY GREENLEAF, ERICKSON, O'PAKE AND RAFFERTY, OCTOBER 8, 2010

REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, OCTOBER 8, 2010  

AN ACT

Amending the act of December 19, 1984 (P.L.1140, No.223),

entitled "An act relating to the development of oil and gas

and coal; imposing duties and powers on the Department of

Environmental Resources; imposing notification requirements

to protect landowners; and providing for definitions, for

various requirements to regulate the drilling and operation

of oil and gas wells, for gas storage reservoirs, for various

reporting requirements, including certain requirements

concerning the operation of coal mines, for well permits, for

well registration, for distance requirements, for well casing

requirements, for safety device requirements, for storage

reservoir obligations, for well bonding requirements, for a

Well Plugging Restricted Revenue Account to enforce oil and

gas well plugging requirements, for the creation of an Oil

and Gas Technical Advisory Board, for oil and gas well

inspections, for enforcement and for penalties," providing

for gas mineral rights lease agreement disclosure and

indemnification.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of December 19, 1984 (P.L.1140, No.223),

known as the Oil and Gas Act, is amended by adding a section to

read:

Section 603.2  Gas mineral rights lease agreement disclosure and

indemnification.

(a)  (1)  Prior to the execution of a gas mineral rights

lease agreement, the gas drilling company shall disclose to

the landowner that the landowner may be liable to other

landowners for damages that result from the gas drilling.

(2)  The disclosure shall be on a separate piece of

paper, in ten-point all capital type and shall include a

statement that the landowner should consult an attorney

before signing any document relating to a gas mineral rights

lease agreement.

(3)  The disclosure shall be signed by the landowner

prior to or simultaneously with the execution of the

agreement.

(b)  The department shall approve the form and content of the

disclosure statement required under subsection (a).

(c)  A gas mineral rights lease agreement shall contain an

indemnification provision that holds the landowner harmless from

any and all liability, liens, claims and environmental liability

arising out of the drilling company's operations under the terms

of the lease.

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