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PRINTER'S NO. 93
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
139
Session of
2017
INTRODUCED BY YAW, VOGEL, GREENLEAF, YUDICHAK, VULAKOVICH,
SCHWANK, WHITE, COSTA, BREWSTER, HUGHES, BAKER, RAFFERTY,
SCARNATI AND BARTOLOTTA, JANUARY 19, 2017
REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, JANUARY 19, 2017
AN ACT
Providing for protection for a lessor of natural gas rights who
reports a violation or suspected violation of a contractual
agreement and for remedies and penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Natural Gas
Lease Anti-Retaliation Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Good faith action." A claim, demand or complaint intended
to secure rights granted under a lease or to determine whether
the terms of a lease are being complied with, including, but not
limited to, a request for an accounting of any costs, taxes or
fees allowed to be deducted from royalty payments by the lessee,
that is made without malice or ulterior motive and which the
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lessor or a party acting on the lessor's behalf reasonably
believes to be valid and legally correct.
"Lessee." A person who has obtained the right to explore,
drill, stimulate, produce, market and sell oil, gas and natural
gas liquids, or any portion thereof, pursuant to a properly
executed lease.
"Lessor." The owner of the oil and gas in place, who
controls the oil and gas rights and has executed a lease.
Section 3. Protection of lessors.
A lessee may not retaliate by ceasing development or
production or take other reprisals against a lessor because the
lessor takes a good faith action.
Section 4. Remedies.
(a) Civil action.--A lessor who alleges a violation of
section 3 may bring a civil action in a court of competent
jurisdiction for appropriate injunctive relief or damages, or
both, within one year after the occurrence of the alleged
violation.
(b) Necessary showing of evidence.--A lessor alleging a
violation of this act must show by a preponderance of the
evidence that its action meets the definition of a good faith
action and that a retaliatory action was taken by the lessee
after it became aware of the good faith action of the lessor.
(c) Defense.--It shall be a defense to an action under this
section if the lessee proves by a preponderance of the evidence
that the action by the lessee was authorized under the terms of
the lease or occurred for legitimate business reasons.
Section 5. Enforcement.
A court that finds in favor of the lessor may order the
lessee to pay reasonable damages to the lessor and may impose a
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civil fine of up to $1,000 per day for each day the provisions
of section 3 have been violated. A court that finds that an
action has been instituted for other than a good faith action
may order the lessor to pay reasonable damage to the lessee.
Section 6. Effective date.
This act shall take effect in 60 days.
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