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Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 1610-E. Temporary cessation of oil and gas wells

Current as of January 01, 2026 | Updated by Findlaw Staff

(a) General rule.--An oil and gas lessor shall be deemed to acknowledge that a period of nonproduction under an oil and gas lease is a temporary cessation insufficient to terminate the lease and the lessor waives his right to seek lease termination upon those grounds if, prior to claiming the lease has terminated:

(1) production is recommenced and the lessor accepts royalty payments for the production.  Any first royalty payment following recommencement of production after a period of more than one year of inactivity shall be accompanied by an explanation, in plain terms, that acceptance of the royalty payment shall constitute acknowledgment of an existing lease with the operator;  or

(2) the operator, after notifying the lessor of its intent to drill a new well and giving the lessor 90 days within which to object, drills a new well under the lease.

(b) Lease provisions.--Nothing in this section is intended to waive lease requirements related to commencement of operations during a lease's primary term or affect a lease provision expressly providing for lease termination following a fixed period of nonproduction.

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Cite this article: FindLaw.com - Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 1610-E. Temporary cessation of oil and gas wells - last updated January 01, 2026 | https://codes.findlaw.com/pa/title-72-ps-taxation-and-fiscal-affairs/pa-st-sect-72-1610-e/

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