1Relating to the <-satisfaction surrender of oil and gas leases;
2and providing 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 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. <-Satisfaction Surrendering, methods and indexing.

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

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

10(i) <-The A copy of the recorded memorandum or lease 
11or, if not available, the original oil and gas lease.

12(ii) A <-records fee established by the recording
13officer.

14(2) A recording officer shall give notice of the
15recording validation procedure. The notice shall be entitled
16"Notice by (recording officer) to Adopt Recording Information
17Validation Procedure under the Oil and Gas Lease <-Satisfaction 
<-18Surrender Act," and shall state any additional fees to be
19charged and shall be advertised in the county recorder's
20yearly fee schedule or fee bill, whichever is applicable.

21(b) Indexing.--The recording officer shall properly index
22all <-satisfaction surrender documents against the name of the
23lessee or last assignee as each is indicated in the <-satisfaction 
<-24surrender document and shall indicate the recording of each
<-25satisfaction surrender document in the oil and gas lease record.

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

1recording officer or political subdivision.

2Section 4. Requirement and effect of <-satisfaction surrender
3document.

4Every lessee shall, within 30 days after expiration,
5termination or forfeiture of the oil and gas lease, present for
6recording in the office where the oil and gas lease is recorded
7a duly executed <-satisfaction surrender document in substantially
8the form set out in section 5 and acknowledged as provided by
9law. The <-satisfaction surrender document shall thereafter
10discharge, defeat and release a lessee's interests in the lease
11upon recording.

12Section 5. Form of <-satisfaction surrender document.

13A lessee, whether an individual or legal entity, shall
14satisfy surrender oil and gas leases by a <-satisfaction surrender
15document in substantially the following form:

<-16SATISFACTION SURRENDER DOCUMENT

17Made this day of ,

18Name of lessor:

19Name of lessee:

20Name of last assignee:

21Date of oil and gas lease:

22Oil and gas lease recorded on ,

23in the office of the Recorder of Deeds of

24County, Pennsylvania,

25in book , page /instrument

26number .

27Brief description of the location:

28The undersigned certifies that the terms secured by the
29above-mentioned oil and gas lease have expired or were
30terminated or forfeited, or otherwise discharged and that

1upon the recording of the oil and gas lease shall be and
2are fully and forever <-satisfied surrendered and
3discharged. The undersigned authorizes and empowers the
4recording officer of the county to enter this
<-5satisfaction surrender document and to cause the oil and
6gas lease to be <-satisfied surrendered of record. Witness
7the due execution of this document with the intent to be
8legally bound. (signature(s) of individual lessee(s) or
9representative(s) of legal entity)

10(acknowledgment)

11Section 6. Notice to <-satisfy surrender and damages for failure
12to <-satisfy surrender.

13(a) Notice.--After the time set forth in section 4, the
14lessor may send a notice to the lessee to present for recording
15a <-satisfaction surrender document to avoid damages.

16(b) Delivery.--The satisfaction notice to <-satisfy surrender
17shall be sent to the lessee by certified or registered mail,
18return receipt requested. The <-satisfaction notice shall be sent
19to the lessee at the lessee's address designated in the oil and
20gas lease unless the person issuing the notice has actually
21received from the lessee another name or address to which
22requests for satisfactions are <-a notice is to be sent.

23(c) Form.--The notice to <-satisfy surrender shall be in
24substantially the following form:

25NOTICE TO RECORD OIL AND GAS

26LEASE <-SATISFACTION SURRENDER DOCUMENT

27 TO AVOID PENALTY

28Date of notice:

29To the lessee named below:

30The party issuing this notice believes that the terms of

1the oil and gas lease described below have expired,
2terminated, forfeited or <-received full satisfaction 
<-3otherwise discharged. The party issuing this notice
4requests that the lessee issue and present for recording
5a <-satisfaction surrender document concerning the oil and
6gas lease or provide a satisfactory reason why the oil
7and gas lease should not be <-satisfied surrendered to the
8party issuing this notice. If you do not comply with this
9notice, you may be liable for penalties and costs in
10accordance with this act or the party issuing this notice
11may be able to satisfy <-surrender the oil and gas lease
12without your consent.

13Name of lessor:

14Name of lessee:

15Name of last assignee:

16Date of oil and gas lease:

17Recorded in County, Pennsylvania, in Book ,

18Page /instrument number.

19Brief description of the location covered by oil and gas
20lease:

21Lease number (if known):

22Name of party presenting this notice:

23Address of party presenting this notice:

24Telephone number of party presenting this notice:

25(d) Penalty for failure to <-satisfy surrender.--

26(1) If, within 60 days of the lessee's receipt of the
27first written request by the lessor for the <-satisfaction 
<-28surrender document, delivered and in substantially the form
29described in this section, the lessee fails to present for
30recording to the office where the oil and gas lease was

1recorded a <-satisfaction surrender document as described in
2section 5 or the oil and gas lease is not otherwise <-satisfied 
3surrendered, the <-lessee lessor may initiate an appropriate
4court action to compel satisfaction <-surrender of the lease,
5unless a satisfactory reason was provided <-by the lessee as to
6why the oil and gas lease shall should not be <-satisfied 
<-7surrendered.

8(2) In a successful action to compel <-satisfaction 
<-9surrender of the lease, the lessee shall reimburse the lessor
10for costs of the action, including the lessor's reasonable
11attorney fees.

12(3) An action under this section shall be the exclusive
13remedy for damages for failure of a lessee to issue and
14present for recording a <-satisfaction surrender document.

15(4) The delivery of a second or subsequent written
16request by the lessor for a <-satisfaction surrender document
17shall not give rise to an additional cause of action under
18this section.

19Section 7. Other rules or laws not affected.

20This act shall not affect nor impair any other act or any
21rule of civil procedure promulgated by the Pennsylvania Supreme
22Court, which provides for the <-satisfaction surrender or
23discharge of an oil and gas lease by order or decree of any
24court upon payment of an applicable fee. The recording officer
25shall accept for recording a copy of the order or decree
26certified by the prothonotary and shall index and indicate the
27same in the record as is provided in this act for a <-satisfaction 
<-28surrender document. Except as provided in section 3(a), this act
29shall not affect or impair any other act providing for fees for
30the recording of the documents and instruments provided for in

1this act.

2Section 8. Prior instruments.

3Written satisfaction surrender or intended <-satisfaction 
4surrender given prior to the effective date of this <-act section
5with respect to any oil and gas lease on real property situate
6in this Commonwealth shall be deemed good, valid and effective
7in law for the purposes therein recited.

8Section 9. Applicability.

<-9This Unless otherwise specified by contract, this act shall
10apply to every oil and gas lease on real property in this
11Commonwealth which has not been satisfied <-surrendered prior to
12the effective date of this section and regardless of whether the
13oil and gas lease was executed before the effective date of this
14section.

15Section 10. Effective date.

16This act shall take effect in 60 days.