PRIOR PRINTER'S NO. 600                       PRINTER'S NO. 670

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 568 Session of 1979


        INTRODUCED BY STAPLETON, ORLANDO, COPPERSMITH AND MOORE,
           MARCH 27, 1979

        SENATOR MELLOW, ENVIRONMENTAL RESOURCES, AS AMENDED,
           APRIL 24, 1979

                                     AN ACT

     1  Regulating the terms and conditions of certain leases regarding
     2     natural gas and oil.

     3     The General Assembly of the Commonwealth of Pennsylvania
     4  hereby enacts as follows:
     5     Section 1.  A lease or other such agreement conveying the
     6  right to remove or recover oil, natural gas or gas of any other
     7  designation underlying another's property FROM LESSOR TO LESSEE   <--
     8  shall not be valid if such lease does not guarantee the lessor
     9  at least one-eighth royalty of all oil, natural gas or gas of
    10  other designations removed or recovered from the subject real
    11  property.
    12     Section 2.  An oil, natural gas or other designation gas well
    13  or oil, natural gas or other designation gas lease which does
    14  not provide a one-eighth metered royalty shall be subject to
    15  such an escalation when its original state is altered by new
    16  drilling, deeper drilling, redrilling, artificial well
    17  stimulation, hydraulic fracturing or any other procedure for


     1  increased production.
     2     Section 3.  Whenever such an increased production procedure
     3  has been completed prior to the effective date of this act,
     4  metering and the above royalty shall commence within 90 days
     5  after the effective date of this act.
     6     Section 4.  This act shall take effect in 60 days.
















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