1Amending the act of July 11, 2006 (P.L.1134, No.115), entitled
2"An act providing for the creation of a trust for the benefit
3of certain owners of interests in oil and gas; authorizing
4the trustee to enter into leases of interests in oil and gas
5under terms and conditions authorized by the court of common
6pleas; providing for the administration of the trust and for
7payment of moneys to the trustee; and imposing penalties for
8nonpayment," further providing for purpose, for definitions
9and for creation of trust for unknown owners.

10The General Assembly of the Commonwealth of Pennsylvania
11hereby enacts as follows:

12Section 1.  Section 2 of the act of July 11, 2006 (P.L.1134,
13No.115), known as the Dormant Oil and Gas Act, is amended to
14read:

15Section 2.  Purpose.

16The purpose of this act is to facilitate the development of
17subsurface properties by reducing the problems caused by
18fragmented and unknown or unlocatable ownership of oil and gas
19interests and to protect the interests of unknown or unlocatable
20owners of oil and gas. [It is not the purpose of this act to
21vest the surface owner with title to oil and gas interests that

1have been severed from the surface estate.]

2Section 2.  Section 3 of the act is amended by adding
3definitions to read:

4Section 3.  Definitions.

5The following words and phrases when used in this act shall
6have the meanings given to them in this section unless the
7context clearly indicates otherwise:

8"Bonus."  Money or other property given for the execution of
9an oil or gas lease, deed or other instrument conveying an oil
10or gas interest. The term does not include rental or royalty
11payments that are used to maintain an oil or gas interest.

12* * *

13"Correlative rights."  The rights of each owner of oil and
14gas interests in a common pool or source of supply of oil and
15gas to have a fair and reasonable opportunity to obtain and
16produce the owner's just and equitable share of the oil and gas
17in the pool or source of supply, without being required to drill
18unnecessary wells or incur other unnecessary expense to recover
19or receive the oil or gas or its equivalent.

20* * *

21Section 3.  Section 4 of the act is amended to read:

22Section 4.  Creation of trust for unknown owners.

23(a)  General rule.--Any person who owns an interest in oil
24and gas underlying a tract of land may petition the appropriate
25division of the court of common pleas of the county in which the
26tract or any portion of the tract is located to declare a trust
27in favor of all unknown owners of an interest in the oil and gas
28underlying the tract whose identity, present residence or
29present address is unknown and cannot be determined by diligent
30efforts. The petitioner's interest may be in fee, by lease, a

1royalty [or], by ownership of correlative rights in an oil and
2gas reservoir or by ownership of the surface tract that overlays 
3the oil and gas interest that is the subject of the petition.

4(b)  Requirements.--Before the court shall declare a trust in
5favor of an unknown owner or owners, the petitioner shall show
6to the satisfaction of the court that:

7(1)  Petitioner has made a diligent effort to locate the
8owner or claimant.

9(2)  Despite this diligent effort, petitioner has been
10unable to identify or to locate the present residence or
11other address of one or more owners or claimants of the oil
12or gas interest or interests in question.

13(2.1)  Service of process has occurred in accordance with
14Pa.R.C.P. No. 410 (relating to real property actions) and
15that original process was served upon all surface owners
16whose tracts overlay all or any part of the tract or tracts
17of land that are the subject of the petition.

18(3)  Appointment of a trustee will be in the best
19interest of all owners of interests in the oil and gas.

20(4)  By a preponderance of the evidence, the trust is
21likely to result in the commercial development of the
22subsurface properties.

23(c)  Appointment.--Following a determination that the
24requirements of subsection (b) have been met, the court shall
25appoint a financial institution authorized to do business in
26this Commonwealth as trustee of a trust for the unknown owner or
27owners and shall authorize the trustee to execute and deliver a 
28deed of sale or one or more oil or gas leases or other
29instruments on terms and conditions approved by the court.

30(d)  Deeds of sale, leases or other instruments.--Where a

1deed of sale, lease or other instrument is authorized under
2subsection (c), the trustee shall provide a credit to the sale
3price for the costs incurred under subsection (b). The trustee
4shall eliminate bonus payments as a factor in calculating the
5fair market value of the relevant interests.

6Section 4.  This act shall take effect in 60 days.