1Providing for protection for a <-royalty interest owner lessor of
2natural gas rights who reports a violation or suspected
3violation of a contractual agreement and for remedies and
4penalties.

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 Natural Gas
9Lease Anti-Retaliation 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"Good faith action." A claim, demand or complaint intended
15to secure rights granted under a lease or to determine whether
16the terms of a lease are being complied with, including, but not
17limited to, a request for an accounting of any costs, taxes or
18fees allowed to be deducted from royalty payments by lessee,

1that is made without malice or ulterior motive and which the
2lessor or a party acting on the lessor's behalf reasonably
3believes to be valid and legally correct.

4"Lessee." Any person who has obtained the right to explore,
5drill, stimulate, produce, market and sell oil, gas and natural
6gas liquids, or any portion thereof, pursuant to a properly
7executed lease.

8"Lessor." The owner of the oil and gas in place, who
9controls the oil and gas rights and has executed a lease.

10Section 3. Protection of <-royalty interest owners lessors.

11No <-lessor lessee may retaliate by ceasing development or
12production or take other reprisals against a lessor because <-a 
13the lessor takes a good faith action<-, as defined in this act.

14Section 4. Remedies.

15(a) Civil action.--A <-person lessor who alleges a violation
16of section 3 may bring a civil action in a court of competent
17jurisdiction for appropriate injunctive relief or damages, or
18both, within one year after the occurrence of the alleged
19violation.

20(b) Necessary showing of evidence.--A lessor alleging a
21violation of this act must show by a preponderance of the
22evidence that its action meets the definition of a good faith
23action and that a retaliatory action was taken by the lessee
24after it became aware of the good faith action of the lessor.

25(c) Defense.--It shall be a defense to an action under this
26section if the lessee proves by a preponderance of the evidence
27that the action by the lessee was authorized under the terms of
28the lease or occurred for legitimate business reasons.

29Section 5. Enforcement.

30A court that which finds in favor of the lessor <-shall may

1order the lessee to pay <-appropriate reasonable damages to the 
2lessor and may impose a civil fine of up to $1,000 per day for 
3each day the provisions of section 3 have been violated. A court 
4which finds that an action has been instituted for other than a 
5good faith action <-as defined in this act may order the lessor to 
6pay reasonable damage to the lessee.

7Section 6. Effective date.

8This act shall take effect in 60 days.