Obtaining a Release of Lease from the oil and gas industry has been a very tedious process.
If you need advice, please give us a call to discuss your particular circumstances.
What happens if you believe that your lease is either expired or terminated. Whether you believe that no production has occurred, haven’t been paid your upfront bonus or delay rentals, or any number of other reasons you can now force the oil and gas company to take action. The Governor is expected to sign legislation that will assist landowners
in obtaining a Release of Lease if the landowner initiates the process.
House Bill No. 401 was introduced in January 2013 and has had may opportunities to become law. The last revisions were made on June 27, 2014 and has been passed by both the House and Senate. The Bill is in on the Governor’s desk for signature. We will keep you advised on the status of the proposed legislation, but for now click here for the
Section 3. Lessee duty to provide surrender document.
(a) General rule.–Not more than 30 days after the
termination, EXPIRATION or cancellation of an oil or natural gas
lease, the lessee shall deliver to the lessor, without cost to
the lessor, a surrender document in recordable form.
(d) Effect of no challenge.–A lessor who has served a
notice under subsection (a) and fails to receive a timely
challenge from the lessee under subsection (c) may record an
affidavit of termination, EXPIRATION or cancellation of an oil
or natural gas lease in the office of the recorder of deeds for
the county in which the land is situated.