PENNSYLVANIA, October 19 - The order shall direct and authorize the payor to make payment

for [the] products taken in accordance with the [division order]

lease at the royalty owner's share established by the division

order.

["Interest owner." A person who is legally entitled to

payment from the proceeds derived from the sale of oil or gas

from an oil or gas well located in this Commonwealth.]

"Lessee." A person that has obtained the right to explore,

drill, stimulate, produce, market or sell oil, gas or natural

gas liquids pursuant to an executed lease.

* * *

"Royalty owner." Any owner of oil or gas in place or oil or

gas rights, subject to a lease covering such oil or gas in place

or oil or gas rights. The term includes the owner of an interest

in an oil or gas lease which entitles him to share in the

production of the oil or gas under such lease and the owner of

any interest in the oil or gas in place, or oil or gas rights,

who has not executed an oil and gas lease, to the extent that

the owner is not designated an "operator" under 58 Pa.C.S. §

3203 (relating to definitions).

Section 2. Sections 3.2 and 3.3 of the act are amended to

read:

Section 3.2. Payment information to [interest owners] royalty

owners.

(a) Payment information.--Whenever payment is made [for oil

or gas production to an interest owner, whether pursuant to a

division order, lease, servitude or other agreement,] to a

royalty owner for the production of oil, gas or natural gas

liquids, pursuant to an oil and gas lease, all of the following

information, at a minimum, shall be included on the check stub

20210SB0806PN1105 - 2 -

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