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," providing for oil and gas estate abandonment and
9for preservation of interests in oil and gas.

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

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

15Section 6.1.  Oil and gas estate abandonment.

16(a)  Circumstances deemed abandonment.--

17(1)  Except as otherwise provided under paragraph (2), an
18interest in oil or gas in land owned by a person other than
19the owner of the surface, which has not been sold, leased,
20mortgaged or transferred by instrument recorded in the
21recorder of deeds office for the county where the interest is

1located for a period of 20 years, shall be deemed abandoned
2in the absence of:

3(i)  a permit to drill an oil or gas well issued by
4the department as to the interest;

5(ii)  the actual production or withdrawal of oil or
6gas from the lands or from lands covered by a lease to
7which the interest is subject or from lands pooled,
8unitized or included in unit operations of the interest;
9or

10(iii)  the use of the interest in underground gas
11storage operations, during that 20-year period.

12(2)  An interest in oil or gas in land owned by a person
13identified under paragraph (1) shall not be deemed abandoned
14if the owner records a claim of interest as provided in
15section 6.2, prior to the latest of the following:

16(i)  twenty years after the last sale, lease,
17mortgage or transfer of record of the interest; or

18(ii)  twenty years after the last:

19(A)  issuance of a drilling permit as to the
20interest;

21(B)  actual production or withdrawal of oil or
22gas, from the land, or from lands covered by a lease
23to which the interest is subject, or from lands
24pooled, unitized or included in unit operations of
25the interest; or

26(C)  use of the interest in underground gas
27storage operations.

28(b)  Vesting of interest.--

29(1)  An interest in oil or gas deemed abandoned under
30subsection (a) shall vest as of the date of the abandonment

1in the owner or owners of the surface in keeping with the
2character of the surface ownership.

3(2)  The owner of the surface who claims a vested
4interest in an oil and gas estate abandoned under subsection
5(a) shall record written notice in the recorder of deeds
6office for the county in which the land is located.

7(3)  The notice shall:

8(i)  Be verified by oath.

9(ii)  Describe the land and the nature of the vested
10interest claimed.

11(iii)  Provide the name and address of the person
12claiming the vested interest.

13Section 6.2.  Preservation of interests in oil and gas.

14(a)  General rule.--An interest in oil or gas may be
15preserved by recording within the period specified by this act a
16written notice in the recorder of deeds office for the county in
17which the land is located.

18(b)  Form of notice.--The notice shall:

19(1)  Be verified by oath.

20(2)  Describe the land and the nature of the interest
21claimed.

22(3)  Provide the name and address of the person or
23persons claiming the interest.

24(4)  State that the person or persons desire to preserve
25the interest and do not intend to abandon the interest.

26(c)  Adequacy of description of interest.--A person other
27than the owner of the surface holding an interest in oil or gas
28in land for use in underground storage field operations may
29preserve the interest, and the rights of a lessor of the
30interest, by recording a single written notice defining the

1boundaries of and the formations included in the underground gas
2storage field without the necessity of describing each separate
3interest in oil or gas claimed in the underground gas storage
4field by that person.

5(d)  Legal effect of recorded notice.--

6(1)  Recording a written notice under this section shall
7operate to preserve the interest in oil or gas included in
8the written notice from abandonment under this act for a
9period of 20 years after recording.

10(2)  At the conclusion of the 20-year period, the
11interest shall be deemed abandoned if, during that 20-year
12period:

13(i)  the nondormant character of the interest has not
14been evidenced by sale, lease, mortgage or transfer by
15instrument recorded in the recorder of deeds office for
16the county in which the interest is located;

17(ii)  a drilling permit has not been issued;

18(iii)  oil or gas has not actually produced or
19withdrawn from the land, or from lands covered by a lease
20to which the interest is subject, or from lands pooled,
21unitized or included in unit operations of the interest;

22(iv)  there has been no use of the interest in
23underground gas storage operations; or

24(v)  no similar notice has been filed.

25(e)  Indefinitely preserving interest in oil and gas.--In the
26absence of prior abandonment, an interest in oil or gas in land
27owned by a person other than the owner of the surface may be
28preserved indefinitely from abandonment under this act by filing
29written notices as provided in this act or the performance of
30any of the acts specified in this act evidencing nondormancy of

1the interest within each succeeding 20-year period.

2(f)  Affidavit of good faith.--

3(1)  For the purposes of this act, a person who uses an
4interest in the gas of the underground gas storage field
5operations may file a good faith affidavit in the recorder of
6deeds office for the county or counties where the interest is
7located, which affidavit must define the boundaries of the
8underground gas storage field and the formations included in
9the underground gas storage field.

10(2)  An affidavit that complies with paragraph (1) shall
11be prima facie evidence of the use of the interest in the gas
12of the underground gas storage field operations.

13Section 7.1.  Applicability.

14This act shall not apply to an interest in oil or gas owned
15by a governmental body or agency.

16Section 2.  This act shall take effect in 60 days.