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White Legislation to Encourage Development of Oil and Gas
Resources
Approved
by Senate
HARRISBURG -- The
state Senate has approved legislation sponsored by Sen. Mary Jo White (R-21) to
encourage development of Pennsylvania’s oil and gas resources in cases where the
owners are not known or can’t be located.
White explained that oil and
gas producers who want to purchase or lease oil and gas property interests for
development often find that title to the estate is incomplete or uncertain
because current co-owners of the estate cannot be identified. It is
particularly troublesome in the case of old Pennsylvania leases, where the
estate has gone through several generations of a family.
“Producers are unwilling to
risk capital in the development of oil and gas resources if they are unable to
transfer and acquire complete legal title,” said White. “Usually it is a very
small interest that cannot be located and valuable oil and gas resources lie
dormant as a result.”
Senate Bill 594 would allow
Common Pleas Court to establish trusts to protect an unknown or non-locatable
owner’s oil and gas estate. The legal title of the estate could be transferred,
under the protection of the court, to a lessee or purchaser for development
purposes, and all royalties would be held by the trust for the unknown or
non-locatable owner.
The Senate Environmental
Resources and Energy Committee, chaired by Senator White, approved the bill in
April. The measure was sent to the House of Representatives for consideration.
“Pennsylvania is sitting on
oil and gas resources that go undeveloped only because the title paperwork is
old and hard to trace,” said White. “Removing these obstacles to development –
while protecting the rights of title owners -- will contribute to job creation
and energy independence. I urge the House to approve this bipartisan
legislation.”
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