PRINTER'S NO. 2350
No. 1699 Session of 1990
INTRODUCED BY ANDREZESKI, REIBMAN AND HELFRICK, JUNE 22, 1990
REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, JUNE 22, 1990
AN ACT
1 Amending the act of December 19, 1984 (P.L.1140, No.223),
2 entitled "An act relating to the development of oil and gas
3 and coal; imposing duties and powers on the Department of
4 Environmental Resources; imposing notification requirements
5 to protect landowners; and providing for definitions, for
6 various requirements to regulate the drilling and operation
7 of oil and gas wells, for gas storage reservoirs, for various
8 reporting requirements, including certain requirements
9 concerning the operation of coal mines, for well permits, for
10 well registration, for distance requirements, for well casing
11 requirements, for safety device requirements, for storage
12 reservoir obligations, for well bonding requirements, for a
13 Well Plugging Restricted Revenue Account to enforce oil and
14 gas well plugging requirements, for the creation of an Oil
15 and Gas Technical Advisory Board, for oil and gas well
16 inspections, for enforcement and for penalties," providing
17 for certain natural gas leases.
18 The General Assembly of the Commonwealth of Pennsylvania
19 hereby enacts as follows:
20 Section 1. The act of December 19, 1984 (P.L.1140, No.223),
21 known as the Oil and Gas Act, is amended by adding a section to
22 read:
23 Section 602.1. Provisions of certain leases.
24 The following provisions shall apply to all natural gas
25 leases executed on and after the effective date of this section:
26 (1) That the producer shall be in breach of contract
1 upon 30 days following the due date of a nonpaid royalty
2 payment to the mineral rights owner, and that interest on any
3 such past amount or amounts shall accrue at the statutory
4 rate.
5 (2) That if the royalties and interest remain delinquent
6 for a period of six months, the producer shall forfeit his
7 rights to the lease.
8 (3) That on and after the said six-month period has
9 passed, the mineral rights owner may, upon written notice to
10 the producer, do any or all of the following:
11 (i) Have the well turned off.
12 (ii) Have the gas producers' personnel barred from
13 the property.
14 (iii) Force capping of the well.
15 (iv) Force removal of existing equipment.
16 (v) Restore landscaping.
17 (vi) Offer the lease and existing equipment for
18 sale.
19 (vii) Renegotiate the lease with the producer in
20 default.
21 Section 2. This act shall take effect in 90 days.
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