1Relating to the surrender of oil and gas leases; and providing
2for 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 Surrender 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. Surrendering, methods and indexing.

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

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

9(i) A copy of the recorded memorandum <-or <-of lease 
10or, if not available, the original oil and gas lease.

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

12(2) A recording officer shall give notice of the
13recording validation procedure. The notice shall be entitled
14"Notice by (recording officer) to Adopt Recording Information
15Validation Procedure under the Oil and Gas Lease Surrender
16Act," and shall state any additional fees to be charged and
17shall be advertised in the county recorder's yearly fee
18schedule or fee bill, whichever is applicable.

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

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

30Section 4. Requirement and effect of surrender document.

1Every lessee shall, within 30 days after expiration,
2termination or forfeiture of the oil and gas lease, present for
3recording in the office where the oil and gas lease is recorded
4a duly executed surrender document in substantially the form set
5out in section 5 and acknowledged as provided by law. The
6surrender document shall thereafter discharge, defeat and
7release a lessee's interests in the lease upon recording.

8Section 5. Form of surrender document.

9A lessee, whether an individual or legal entity, shall
10surrender oil and gas leases by a surrender document in
11substantially the following form:

12SURRENDER DOCUMENT

13Made this day of ,

14Name of lessor:

15Name of lessee:

16Name of last assignee:

17Date of oil and gas lease:

18Oil and gas lease recorded on ,

19in the office of the Recorder of Deeds of

20County, Pennsylvania,

21in book , page /instrument

22number .

23Brief description of the location:

24The undersigned certifies that the terms secured by the
25above-mentioned oil and gas lease have expired or were
26terminated or forfeited, or otherwise discharged and that
27upon the recording of the oil and gas lease shall be and
28are fully and forever surrendered and discharged. The
29undersigned authorizes and empowers the recording officer
30of the county to enter this surrender document and to

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

5(acknowledgment)

6Section 6. Notice to surrender and damages for failure to
7surrender.

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

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

17(c) Form.--The notice to surrender shall be in substantially
18the following form:

19NOTICE TO RECORD OIL AND GAS

20LEASE SURRENDER DOCUMENT

21TO AVOID PENALTY

22Date of notice:

23To the lessee named below:

24The party issuing this notice believes that the terms of
25the oil and gas lease described below have expired,
26terminated, forfeited or otherwise discharged. The party
27issuing this notice requests that the lessee issue and
28present for recording a surrender document concerning the
29oil and gas lease or provide a satisfactory reason why
30the oil and gas lease should not be surrendered to the

1party issuing this notice. If you do not comply with this
2notice, you may be liable for penalties and costs in
3accordance with this act or the party issuing this notice
4may be able to surrender the oil and gas lease without
5your consent.

6Name of lessor:

7Name of lessee:

8Name of last assignee:

9Date of oil and gas lease:

10Recorded in County, Pennsylvania, in Book ,

11Page /instrument number.

12Brief description of the location covered by oil and gas
13lease:

14Lease number (if known):

15Name of party presenting this notice:

16Address of party presenting this notice:

17Telephone number of party presenting this notice:

18(d) Penalty for failure to surrender.--

19(1) If, within 60 days of the lessee's receipt of the
20first written request by the lessor for the surrender
21document, delivered and in substantially the form described
22in this section, the lessee fails to present for recording to
23the office where the oil and gas lease was recorded a
24surrender document as described in section 5 or the oil and
25gas lease is not otherwise surrendered, the lessor may
26initiate an appropriate court action to compel surrender of
27the lease, unless a satisfactory reason was provided by the 
28lessee as to why the oil and gas lease should not be
29surrendered.

30(2) In a successful action to compel surrender of the

1lease, the lessee shall reimburse the lessor for costs of the
2action, including the lessor's reasonable attorney fees.

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

6(4) The delivery of a second or subsequent written
7request by the lessor for a surrender document shall not give
8rise to an additional cause of action under this section.

9Section 7. Other rules or laws not affected.

10This act shall not affect nor impair any other act or any
11rule of civil procedure promulgated by the Pennsylvania Supreme
12Court, which provides for the surrender or discharge of an oil
13and gas lease by order or decree of any court upon payment of an
14applicable fee. The recording officer shall accept for recording
15a copy of the order or decree certified by the prothonotary and
16shall index and indicate the same in the record as is provided
17in this act for a surrender document. Except as provided in
18section 3(a), this act shall not affect or impair any other act
19providing for fees for the recording of the documents and
20instruments provided for in this act.

21Section 8. Prior instruments.

22Written surrender or intended surrender given prior to the 
23effective date of this section with respect to any oil and gas
24lease on real property situate in this Commonwealth shall be
25deemed good, valid and effective in law for the purposes therein
26recited.

27Section 9. Applicability.

28 Unless otherwise specified by contract, this act shall apply
29to every oil and gas lease on real property in this Commonwealth
30which has not been surrendered prior to the effective date of

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

3Section 10. Effective date.

4This act shall take effect in 60 days.