152 Reasons to Call Us if You Have an Old Oil and Gas Lease

Thank you for your attention. Note: this article does not contain 152 separate reasons to call if you have an old oil and gas lease, only one. That reason is Act 152 of 2014 (Act 152), or the Recording of Surrender Documents form Oil and Gas Lease Act. Act 152 requires Lessees to provide a surrender document to Lessors when an oil and gas lease expires. While plain in intent, Act 152 can get blurry in execution. 

As lease bonus prices rose, companies scrambled to hold leases by production. This often-left landowners in the lurch. This dynamic created a tug of war. At one end of the rope were companies clinging to leases with favorable terms for them. At the other was landowners looking to cash in during the boom. The opposing interests caused a stalemate for the two sides. In 2014, the General Assembly stepped in to break the stalemate. Act 152 was the end result. 

Section 4 of the Act provides relief to landowners when companies do not cooperate. Step one involves Lessor providing notice that their lease is no longer valid. Lessees then have 30 days to challenge this notice. If a Lessee fails to make a challenge, a Lessor will record an affidavit of termination, expiration, or cancellation. Once filed the affidavit deems the lease terminated, expired, or cancelled. (58 Pa. Stat. § 904.) This framework does give landowners a solution to situations companies used to ignore. Compliance with the Act’s nuances is the best way to ensure success. Landowners with a legacy lease, or who are unsure of their lease status, should contact an attorney to discuss their options.

Contact The Skeen Firm today if you feel Act 152 applies to your legacy lease, or with general oil and gas questions. 

Phone: 724-550-6970

Email: info@theskeenfirm.com

*Disclaimer: this article is for informational purposes only. It is not providing legal advice. It does not create an attorney-client relationship.