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For Immediate Release
June 21, 2005
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Senate Approves White Legislation to Encourage Development of Oil and Gas Resources

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."