PRINTER'S NO. 118
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
141
Session of
2017
INTRODUCED BY YAW, VOGEL, VULAKOVICH, WARD, BAKER, BREWSTER AND
HUGHES, JANUARY 20, 2017
REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, JANUARY 20, 2017
AN ACT
Amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated
Statutes, in development, providing for lease extended by
production.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 58 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
ยง 3213.1. Lease extended by production.
(a) Prohibition.--Any portion of land subject to a lease
that is combined with other lands or leases to form a unit shall
be subject to operations and production on and in the unit. The
operations and production shall continue a lease in force and
effect during or after the primary term according to the lease
provisions only as to that portion of the leased land that is
included in the unit. Any land covered by a lease and not
included in the unit shall not be subject to operations or
production on or in the unit. The lease may be kept in force in
any manner provided in the lease agreement for leased land not
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included in an agreement.
(b) Applicability.--
(1) Subsection (a) shall apply to any unit formed after
the effective date of this section.
(2) This section shall only apply to lease interests in
an unconventional reservoir.
(c) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Unconventional reservoir." A formation below the base of
the Elk Sandstone or its geologic equivalent stratigraphic
interval that contains or produces oil or gas that generally
cannot be economically produced at flow rates or in volumes
except by hydraulic fracturing, horizontal or multilateral well
bores or other techniques to expose the reservoir to the well
bore.
"Unit." A consolidation of interests of persons actively
engaged in the business of extracting oil or gas from land owned
or leased by the persons within a defined geographic area to
facilitate the drilling of wells from one or more unconventional
reservoirs.
Section 2. This act shall take effect in 60 days.
20170SB0141PN0118 - 2 -
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