Bill > HB671

This bill, known as the Plain Language Oil and Gas Real Property Contract Act, aims to improve the readability and transparency of contracts in the oil and gas industry by establishing clear guidelines for contract language and design. The bill defines a "contract" as a written agreement between a landowner and an oil or gas company, and sets specific requirements for how these contracts should be written, including using short sentences, active verbs, avoiding technical legal jargon, and defining industry-specific terms in a clear manner. It also provides visual guidelines, such as using readable font sizes and contrasting ink. The bill mandates that contracts must be signed in the presence of a notary public, with both parties receiving a notarized copy. If a contract fails to meet these readability standards, the oil or gas company can be liable for damages up to $10,000, actual losses, court costs, and attorney fees. However, the company can avoid liability if the landowner wrote the problematic part of the contract or made a good faith effort to comply with the law. The bill will apply to new contracts and contract modifications executed one year after its effective date, and any lawsuits must be filed within 10 years of the contract's execution.

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https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=671