1Relating to the satisfaction of oil and gas leases; and
2providing for certain forms and damages.

3The General Assembly of the Commonwealth of Pennsylvania
4hereby enacts as follows:

5Section 1. Short title.

6This act shall be known and may be cited as the Oil and Gas
7Lease Satisfaction Act.

8Section 2. Definitions.

9The following words and phrases when used in this act shall
10have the meanings given to them in this section unless the
11context clearly indicates otherwise:

12"Lessee." A person who has obtained the right to explore,
13drill, stimulate, produce, market and sell the oil, gas and
14natural gas liquids, or portion of the oil, gas and natural gas
15liquids, by means of a properly executed lease.

16"Lessor." An owner of the oil and gas in place who controls
17the oil and gas rights and has executed a lease.

1Section 3. Satisfaction, methods and indexing.

2(a) Methods of satisfying oil and gas leases.--

3(1) Oil and gas leases shall be satisfied by
4satisfaction documents as described in sections 5 and 6 by
5the recording officer of the applicable county. A
6satisfaction document shall be accompanied by information
7sufficient to validate the original oil and gas lease
8recording information in the public record, which shall
9include the following:

10(i) The original oil and gas lease.

11(ii) A records fee established by the recording
12officer.

13(2) A recording officer shall give notice of the
14recording validation procedure. The notice shall be entitled
15"Notice by (recording officer) to Adopt Recording Information
16Validation Procedure under the Oil and Gas Lease Satisfaction
17Act," and shall state any additional fees to be charged and
18shall be advertised in the county recorder's yearly fee
19schedule or fee bill, whichever is applicable.

20(b) Indexing.--The recording officer shall properly index
21all satisfaction documents against the name of the lessee or
22last assignee as each is indicated in the satisfaction document
23and shall indicate the recording of each satisfaction document
24in the oil and gas lease record.

25(c) Liability of recording officer.--Nothing in this act
26shall impose liability on any recording officer or any political
27subdivision for a mistake, error or inaccuracy found in a
28satisfaction document which was presented for recording by a
29person or entity and which was recorded by the recording officer
30or political subdivision.

1Section 4. Requirement and effect of satisfaction document.

2Every lessee shall, within 30 days after expiration,
3termination or forfeiture of the oil and gas lease, present for
4recording in the office where the oil and gas lease is recorded
5a duly executed satisfaction document in substantially the form
6set out in section 5 and acknowledged as provided by law. The
7satisfaction document shall thereafter discharge, defeat and
8release a lessee's interests in the lease upon recording.

9Section 5. Form of satisfaction document.

10A lessee, whether an individual or legal entity, shall
11satisfy oil and gas leases by a satisfaction document in
12substantially the following form:

13SATISFACTION DOCUMENT

14Made this day of ,

15Name of lessor:

16Name of lessee:

17Name of last assignee:

18Date of oil and gas lease:

19Oil and gas lease recorded on ,

20in the office of the Recorder of Deeds of

21County, Pennsylvania,

22in book , page /instrument

23number .

24Brief description of the location:

25The undersigned certifies that the terms secured by the
26above-mentioned oil and gas lease have expired or were
27terminated or forfeited, or otherwise discharged and that
28upon the recording of the oil and gas lease shall be and
29are fully and forever satisfied and discharged. The
30undersigned authorizes and empowers the recording officer

1of the county to enter this satisfaction document and to
2cause the oil and gas lease to be satisfied of record.
3Witness the due execution of this document with the
4intent to be legally bound. (signature(s) of individual
5lessee(s) or representative(s) of legal entity)

6(acknowledgment)

7Section 6. Notice to satisfy and damages for failure to
8satisfy.

9(a) Notice.--After the time set forth in section 4, the
10lessor may send a notice to the lessee to present for recording
11a satisfaction document to avoid damages.

12(b) Delivery.--The satisfaction notice to satisfy shall be
13sent to the lessee by certified or registered mail, return
14receipt requested. The satisfaction notice shall be sent to the
15lessee at the lessee's address designated in the oil and gas
16lease unless the person issuing the notice has actually received
17from the lessee another name or address to which requests for
18satisfactions are to be sent.

19(c) Form.--The notice to satisfy shall be in substantially
20the following form:

21NOTICE TO RECORD OIL AND GAS

22LEASE SATISFACTION DOCUMENT

23 TO AVOID PENALTY

24Date of notice:

25To the lessee named below:

26The party issuing this notice believes that the terms of
27the oil and gas lease described below have expired,
28terminated, forfeited or received full satisfaction. The
29party issuing this notice requests that the lessee issue
30and present for recording a satisfaction document

1concerning the oil and gas lease or provide a
2satisfactory reason why the oil and gas lease should not
3be satisfied to the party issuing this notice. If you do
4not comply with this notice, you may be liable for
5penalties and costs in accordance with this act or the
6party issuing this notice may be able to satisfy the oil
7and gas lease without your consent.

8Name of lessor:

9Name of lessee:

10Name of last assignee:

11Date of oil and gas lease:

12Recorded in County, Pennsylvania, in Book ,

13Page /instrument number.

14Brief description of the location covered by oil and gas
15lease:

16Lease number (if known):

17Name of party presenting this notice:

18Address of party presenting this notice:

19Telephone number of party presenting this notice:

20(d) Penalty for failure to satisfy.--

21(1) If, within 60 days of the lessee's receipt of the
22first written request by the lessor for the satisfaction
23document, delivered and in substantially the form described
24in this section, the lessee fails to present for recording to
25the office where the oil and gas lease was recorded a
26satisfaction document as described in section 5 or the oil
27and gas lease is not otherwise satisfied, the lessee may
28initiate an appropriate court action to compel satisfaction
29of the lease, unless a satisfactory reason was provided as to
30why the oil and gas lease shall not be satisfied.

1(2) In a successful action to compel satisfaction of the
2lease, the lessee shall reimburse the lessor for costs of the
3action, including the lessor's reasonable attorney fees.

4(3) An action under this section shall be the exclusive
5remedy for damages for failure of a lessee to issue and
6present for recording a satisfaction document.

7(4) The delivery of a second or subsequent written
8request by the lessor for a satisfaction document shall not
9give rise to an additional cause of action under this
10section.

11Section 7. Other rules or laws not affected.

12This act shall not affect nor impair any other act or any
13rule of civil procedure promulgated by the Pennsylvania Supreme
14Court, which provides for the satisfaction or discharge of an
15oil and gas lease by order or decree of any court upon payment
16of an applicable fee. The recording officer shall accept for
17recording a copy of the order or decree certified by the
18prothonotary and shall index and indicate the same in the record
19as is provided in this act for a satisfaction document. Except
20as provided in section 3(a), this act shall not affect or impair
21any other act providing for fees for the recording of the
22documents and instruments provided for in this act.

23Section 8. Prior instruments.

24Written satisfaction or intended satisfaction given prior to
25the date of this act with respect to any oil and gas lease on
26real property situate in this Commonwealth shall be deemed good,
27valid and effective in law for the purposes therein recited.

28Section 9. Applicability.

29This act shall apply to every oil and gas lease on real
30property in this Commonwealth which has not been satisfied prior

1to the effective date of this section and regardless of whether
2the oil and gas lease was executed before the effective date of
3this section.

4Section 10. Effective date.

5This act shall take effect in 60 days.