| |
|
| |
| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
| |
| HOUSE BILL |
|
| |
| |
| INTRODUCED BY GODSHALL, LONGIETTI, MOUL, SOLOBAY AND SONNEY, FEBRUARY 25, 2010 |
| |
| |
| REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, FEBRUARY 25, 2010 |
| |
| |
| |
| AN ACT |
| |
1 | Amending 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 |
3 | of certain owners of interests in oil and gas; authorizing |
4 | the trustee to enter into leases of interests in oil and gas |
5 | under terms and conditions authorized by the court of common |
6 | pleas; providing for the administration of the trust and for |
7 | payment of moneys to the trustee; and imposing penalties for |
8 | nonpayment," providing for mineral estate abandonment and for |
9 | preservation of interests in oil and gas. |
10 | The General Assembly of the Commonwealth of Pennsylvania |
11 | hereby enacts as follows: |
12 | Section 1. The act of July 11, 2006 (P.L.1134, No.115), |
13 | known as the Dormant Oil and Gas Act, is amended by adding |
14 | sections to read: |
15 | Section 6.1. Mineral estate abandonment. |
16 | (a) Circumstances deemed abandonment.-- |
17 | (1) Except as otherwise provided under paragraph (2), an |
18 | interest in oil or gas in land owned by a person other than |
19 | the owner of the surface, which has not been sold, leased, |
20 | mortgaged or transferred by instrument recorded in the |
21 | recorder of deeds office for the county where the interest is |
|
1 | located for a period of 20 years, shall be deemed abandoned |
2 | in the absence of: |
3 | (i) a permit to drill an oil or gas well issued by |
4 | the department as to the interest; |
5 | (ii) the actual production or withdrawal of oil or |
6 | gas from the lands or from lands covered by a lease to |
7 | which the interest is subject or from lands pooled, |
8 | unitized or included in unit operations of the interest; |
9 | or |
10 | (iii) the use of the interest in underground gas |
11 | storage operations, during that 20-year period. |
12 | (2) An interest in oil or gas in land owned by a person |
13 | identified under paragraph (1) shall not be deemed abandoned |
14 | if the owner records a claim of interest as provided in |
15 | section (b), prior to the latest of the following: |
16 | (i) July 1, 2026; |
17 | (ii) twenty years after the last sale, lease, |
18 | mortgage or transfer of record of the interest; or |
19 | (iii) twenty years after the last: |
20 | (A) issuance of a drilling permit as to the |
21 | interest; |
22 | (B) actual production or withdrawal of oil or |
23 | gas, from the land, or from lands covered by a lease |
24 | to which the interest is subject, or from lands |
25 | pooled, unitized or included in unit operations of |
26 | the interest; or |
27 | (C) use of the interest in underground gas |
28 | storage operations. |
29 | (b) Vesting of interest.--An interest in oil or gas deemed |
30 | abandoned under subsection (a) shall vest as of the date of the |
|
1 | abandonment in the owner or owners of the surface in keeping |
2 | with the character of the surface ownership. |
3 | Section 6.2. Preservation of interests in oil and gas. |
4 | (a) General rule.--An interest in oil or gas may be |
5 | preserved by recording within the period specified by this act a |
6 | written notice in the recorder of deeds office for the county in |
7 | which the land is located. |
8 | (b) Form of notice.--The notice shall: |
9 | (1) Be verified by oath. |
10 | (2) Describe the land and the nature of the interest |
11 | claimed. |
12 | (3) Provide the name and address of the person or |
13 | persons claiming the interest. |
14 | (4) State that the person or persons desire to preserve |
15 | the interest and do not intend to abandon the interest. |
16 | (c) Adequacy of description of interest.--A person other |
17 | than the owner of the surface holding an interest in oil or gas |
18 | in land for use in underground storage field operations may |
19 | preserve the interest, and the rights of a lessor of the |
20 | interest, by recording a single written notice defining the |
21 | boundaries of and the formations included in the underground gas |
22 | storage field without the necessity of describing each separate |
23 | interest in oil or gas claimed in the underground gas storage |
24 | field by that person. |
25 | (d) Legal effect of recorded notice.-- |
26 | (1) Recording a written notice under this section shall |
27 | operate to preserve the interest in oil or gas included in |
28 | the written notice from abandonment under this act for a |
29 | period of 20 years after recording. |
30 | (2) At the conclusion of the 20-year period, the |
|
1 | interest shall be deemed abandoned if, during that 20-year |
2 | period: |
3 | (i) the nondormant character of the interest has not |
4 | been evidenced by sale, lease, mortgage or transfer by |
5 | instrument recorded in the recorder of deeds office for |
6 | the county in which the interest is located; |
7 | (ii) a drilling permit has not been issued; |
8 | (iii) oil or gas has not actually produced or |
9 | withdrawn from the land, or from lands covered by a lease |
10 | to which the interest is subject, or from lands pooled, |
11 | unitized or included in unit operations of the interest; |
12 | (iv) there has been no use of the interest in |
13 | underground gas storage operations; or |
14 | (v) no similar notice has been filed. |
15 | (e) Indefinitely preserving interest in oil and gas.--In the |
16 | absence of prior abandonment, an interest in oil or gas in land |
17 | owned by a person other than the owner of the surface may be |
18 | preserved indefinitely from abandonment under this act by filing |
19 | written notices as provided in this act or the performance of |
20 | any of the acts specified in this act evidencing nondormancy of |
21 | the interest within each succeeding 20-year period. |
22 | (f) Affidavit of good faith.-- |
23 | (1) For the purposes of this act, a person who uses an |
24 | interest in the gas of the underground gas storage field |
25 | operations may file a good faith affidavit in the recorder of |
26 | deeds office for the county or counties where the interest is |
27 | located, which affidavit must define the boundaries of the |
28 | underground gas storage field and the formations included in |
29 | the underground gas storage field. |
30 | (2) An affidavit that complies with paragraph (1) shall |
|
1 | be prima facie evidence of the use of the interest in the gas |
2 | of the underground gas storage field operations. |
3 | Section 7.1. Applicability. |
4 | This act shall not apply to an interest in oil or gas owned |
5 | by a governmental body or agency. |
6 | Section 2. This act shall take effect in 60 days. |
|