1Imposing duties on lessees of oil and natural gas leases; and
2providing for the recording of surrender documents from oil
3and natural gas leases and of affidavits of termination<-, 
4expiration or cancellation.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1. Short title.

8This act shall be known and may be cited as the Recording of 
9Surrender Documents from Oil and Natural Gas Lease Act.

10Section 2. Definitions.

11The following words and phrases when used in this act shall
12have the meanings given to them in this section unless the
13context clearly indicates otherwise:

14"Lessee." A person who has the right to extract oil or
15natural gas, or both, pursuant to an oil or natural gas lease.
16The term includes an assignee of the lessee.

17"Lessor." An owner of oil and natural gas in place who 
18controls the oil and natural gas rights and has executed an oil
 

1or natural gas lease.

2"Oil or natural gas lease." A lease between a lessor and
3lessee for the extraction of oil or natural gas, or both, from
4the land of the lessor and which lease is recorded with the
5recorder of deeds of the county in which the land is located.

6"Surrender document." A written document relating to an oil
7or natural gas lease which includes:

8(1) A brief description of the land upon which the lease
9is based, including the municipality in which the land is
10situated.

11(2) A statement that the oil or natural gas lease is
12terminated<-, expired or canceled pursuant to the terms of the
13lease.

14(3) The date of the termination<-, expiration or
15cancellation.

16(4) A statement indicating that the lessee surrenders
17all of the lessee's rights, duties and interests under the
18lease.

19(5) The signature of the lessee.

20Section 3. Lessee duty to provide surrender document.

21(a) General rule.--Not more than 30 days after the
22termination<-, expiration or cancellation of an oil or natural gas
23lease, the lessee shall deliver to the lessor, without cost to
24the lessor, a surrender document in recordable form.

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

28(c) Applicability.--This section shall not apply if the
29lessee and lessor 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 surrender document.

3(a) Notice to lessee.--If a lessee fails to provide a timely
4surrender document as required under section 3, the lessor may
5serve notice on the lessee. The notice shall contain the
6following:

7(1) A statement that:

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

11(ii) The lessee has a duty to provide a surrender 
12document under section 3.

13(iii) The lessor has failed to receive a timely 
14surrender document from the lessee.

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

21(2) The names and addresses of the lessor, 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 lessor.

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 lessor.

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

1of the well, if known to the lessor.

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

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

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<-, expiration or
15cancellation under subsection (b), the lessee disputes that the
16oil or natural gas lease will be terminated<-, expired or canceled
17on the date stated in the notice, the lessee must, not more than 
1830 days after receipt of the notice, deliver a written challenge
19to the lessor.

20(d) Effect of no challenge.--A lessor who has served a
21notice under subsection (a) and fails to receive a timely
22challenge from the lessee under subsection (c) may record an
23affidavit of termination<-, expiration or cancellation of an oil
24or natural gas lease in the office of the recorder of deeds for
25the county in which the land is situated.

26Section 5. Affidavit of termination<-, expiration or
27cancellation.

28(a) Contents of affidavit.--An affidavit of termination<-, 
29expiration or cancellation of an oil or natural gas lease shall
30contain the following information:

1(1) The names and addresses of the lessor and lessee.

2(2) The municipality in which the land is located and a
3brief description of the land.

4(3) If located in a unit, the name or description of the
5unit, if known to the lessor.

6(4) If there is a well on the land, the name or number
7of the well, if known to the lessor.

8(5) The date of the execution of the oil or natural gas
9lease.

10(6) The date of termination<-, expiration or cancellation
11of the oil or natural gas lease.

12(7) A statement that the lessor complied with its duty
13to serve a notice to the lessee under section 4(a) and that
14the lessee failed to provide a timely challenge to the notice
15as provided by section 4(c).

16(8) A notarized signature of the lessor.

17(b) Duty of recorder of deeds.--A recorder of deeds who
18receives an affidavit of termination<-, expiration or cancellation
19that satisfies the provisions of this section shall record the
20affidavit.

21Section 6. Effective date.

22This act shall take effect in 60 days.