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By Paul R. Yagelski, Esquire
Rothman Gordon
Pittsburgh, Pennsylvania

Should you use the Recording of Surrender Documents from Oil and Natural Gas Lease Act to have an oil and gas company record a release or surrender of lease? No!

You believe that your oil and gas lease has terminated, expired or been cancelled. Simply put, you believe that your oil and gas lease is gone; it is no longer in effect. The oil and gas company, however, has not acknowledged this. In particular, it has not filed anything in the recorder of deeds office in the county where your oil and gas is located to give notice to the world that it no longer has an oil and gas lease covering your property. What can you do?

There are a number of options. One, you can send the oil and gas company a notice of expiration/termination of the lease informing the oil and gas company that the lease has expired and if appropriate, terminated and request that the oil and gas company file a release or surrender document with the county’s recorder’s office. Two, you can file an action for declaratory judgment and/or quiet title to have a court declare that the lease has expired and if appropriate, terminated. Three, you can utilize the Recording of Surrender Documents from Oil and Natural Gas Lease Act (“Act”), 58 P.S. § 901, et seq., but should you use the Act? The answer should be a resounding “NO”!

The Act is badly worded for use by a landowner/royalty owner. The Act could result in an admission by the landowner/royalty owner that in fact the lease has not expired or been terminated. The Act as written could prejudice the landowner/royalty owner and end in a court determination that the oil and gas lease that the landowner/royalty owner sought to have declared expired or terminated is declared to be in effect. How is this so?

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