1Imposing duties on lessees of oil and natural gas leases; and
2providing for the recording of releases from oil and natural
3gas leases and of affidavits of termination or cancellation.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Short title.

7This act shall be known and may be cited as the Recording of
8Release from Oil and Natural Gas Lease Act.

9Section 2. Definitions.

10The following words and phrases when used in this act shall
11have the meanings given to them in this section unless the
12context clearly indicates otherwise:

13"Lessee." A person who has the right to extract oil or
14natural gas, or both, pursuant to an oil or natural gas lease.
15The term includes an assignee of the lessee.

16"Oil or natural gas lease." A lease between an owner and
17lessee for the extraction of oil or natural gas, or both, from

1the land of the owner and which lease is recorded with the
2recorder of deeds of the county in which the land is located.

3"Owner." The person who owns the land on which an oil or
4natural gas lease is based.

5"Release." A written document relating to an oil or natural
6gas lease which includes:

7(1) A brief description of the land upon which the lease
8is based, including the municipality in which the land is
9situated.

10(2) A statement that the oil or natural gas lease is
11terminated or canceled pursuant to the terms of the lease.

12(3) The date of the termination or cancellation.

13(4) A statement indicating that the lessee releases all
14of the lessee's rights, duties and interests under the lease.

15(5) The signature of the lessee.

16Section 3. Lessee duty to provide release.

17(a) General rule.--Not less than 30 days prior to the
18termination or cancellation of an oil or natural gas lease, the
19lessee shall deliver to the owner, without cost to the owner, a
20release in recordable form.

21(b) Limitation on owner.--An owner who receives a release
22under subsection (a) may not record the release with the
23recorder of deeds for the county in which the land is situated
24until on or after the date of the termination or cancellation.

25(c) Duty of recorder of deeds.--A recorder of deeds who
26receives a release that satisfies the requirements of this act
27shall record the release.

28(d) Applicability.--This section shall not apply if the
29lessee and owner have expressed an interest in writing to each
30other of an intention to renew the oil or natural gas lease or

1to negotiate a new oil or natural gas lease.

2Section 4. Failure to provide release.

3(a) Notice to lessee.--If a lessee fails to provide a timely
4release as required under section 3, the owner may serve notice
5on the lessee. The notice may be served not less than 15 days
6prior to the date of termination or cancellation. The notice
7shall contain the following:

8(1) A statement that:

9(i) The lease will be terminated or canceled
10according to its terms, including the date of the
11termination or cancellation.

12(ii) The lessee has a duty to provide a release
13under section 3.

14(iii) The owner has failed to receive a timely
15release from the lessee.

16(iv) If the release is not received by the date of
17termination or cancellation, the owner has a right to
18record an affidavit of termination or cancellation of an
19oil or natural gas lease in the office of the recorder of
20deeds for the county in which the land is situated.

21(2) The names and addresses of the owner, if contained
22in the lease.

23(3) The name and address of the person giving notice and
24a statement as to the person's interest in the land or
25relationship to the owner.

26(4) The municipality in which the land is located and a
27brief description of the land.

28(5) If located in a unit, the name or description of the
29unit, if known to the owner.

30(6) If there is a well on the land, the name or number

1of the well, if known to the owner.

2(7) The date of the execution of the oil or natural gas
3lease.

4(8) The date of termination or cancellation of the oil
5or natural gas lease and the basis of the termination or
6cancellation.

7(b) Manner of service.--Service of the notice under
8subsection (a) shall be effected either personally or by
9certified mail to the lessee's last known business address, or,
10if service cannot be made by those means, by publication once a
11week for two weeks in a newspaper of general circulation in the
12county where the land is situated.

13(c) Challenge to notice of termination or cancellation.--If,
14after receiving a notice of termination or cancellation under
15subsection (b), the lessee disputes that the oil or natural gas
16lease will be terminated or canceled on the date stated in the
17notice, the lessee must, not less than seven days prior to the
18date of the termination or cancellation stated in the notice,
19deliver a written challenge to the owner.

20(d) Effect of challenge.--An owner who receives a timely
21challenge from the lessee under subsection (c) may not record an
22affidavit of termination or cancellation of an oil or natural
23gas lease in the office of the recorder of deeds for the county
24in which the land is situated without an order of court.

25(e) Effect of no challenge.--An owner who has served a
26notice under subsection (a) and fails to receive a timely
27challenge from the lessee under subsection (c) may record an
28affidavit of termination or cancellation of an oil or natural
29gas lease in the office of the recorder of deeds for the county
30in which the land is situated.

1Section 5. Affidavit of termination or cancellation.

2(a) Contents of affidavit.--An affidavit of termination or
3cancellation of an oil or natural gas lease shall contain the
4following information:

5(1) The names and addresses of the owner and lessee.

6(2) The municipality in which the land is located and a
7brief description of the land.

8(3) If located in a unit, the name or description of the
9unit, if known to the owner.

10(4) If there is a well on the land, the name or number
11of the well, if known to the owner.

12(5) The date of the execution of the oil or natural gas
13lease.

14(6) The date of termination or cancellation of the oil
15or natural gas lease.

16(7) A statement that the owner complied with its duty to
17serve a notice to the lessee under section 4(a) and that the
18lessee failed to provide a timely challenge to the notice as
19provided by section 4(c).

20(8) A notarized signature of the owner.

21(b) Duty of recorder of deeds.--A recorder of deeds who
22receives an affidavit of termination or cancellation that
23satisfies the provisions of this section shall record the
24affidavit.

25Section 6. Effective date.

26This act shall take effect in 60 days.