OIL AND GAS - LEASES TO REMOVE OR RECOVER
Act of Jul. 20, 1979, P.L. 183, No. 60
Regulating the terms and conditions of certain leases regarding
natural gas and oil.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. A lease or other such agreement conveying the
right to remove or recover oil, natural gas or gas of any other
designation from lessor to lessee shall not be valid if such
lease does not guarantee the lessor at least one-eighth royalty
of all oil, natural gas or gas of other designations removed or
recovered from the subject real property.
Section 2. An oil, natural gas or other designation gas well
or oil, natural gas or other designation gas lease which does
not provide a one-eighth metered royalty shall be subject to
such an escalation when its original state is altered by new
drilling, deeper drilling, redrilling, artificial well
stimulation, hydraulic fracturing or any other procedure for
increased production. A lease shall not be affected when the
well is altered through routine maintenance or cleaning.
Section 3. Whenever such an increased production procedure
has been completed prior to the effective date of this act,
metering and the above royalty shall commence within 90 days
after the effective date of this act.
Section 4. This act shall take effect in 60 days.