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Bill

HB 671

An Act providing for plain language requirements in oil and gas real property contracts, for remedies and for penalties.

2025-2026 Regular Session Introduced by Nancy Guenst and 9 co-sponsors

HB 671 requires Pennsylvania oil and gas contracts use plain language, establishing penalties for non-compliance to protect landowners from exploitative or unclear agreements.

Referred to Judiciary
0
WeVote Research Nonpartisan
Bill Summary · HB 671

Legislative bill overview

HB 671 mandates that oil and gas real property contracts be written in plain language that is understandable to the average person, rather than using dense legal jargon. The bill establishes remedies for violations and penalties for companies that fail to comply with these plain language requirements.

Why is this important

Oil and gas leases often involve complex legal terms that disadvantage individual landowners who may lack legal expertise, potentially leading to unfavorable agreements. Clear, accessible contract language helps property owners understand their rights, obligations, and financial terms before signing away mineral rights or allowing drilling operations on their land.

Potential points of contention

  • Industry burden: Oil and gas companies may argue that standardizing contracts to plain language increases costs and creates compliance challenges, potentially discouraging investment in Pennsylvania
  • Definition ambiguity: "Plain language" standards can be subjective—disputes may arise over what constitutes adequately clear language, requiring litigation to resolve
  • Scope limitations: The bill may not address the fundamental power imbalance between large corporations and individual landowners, as plain language alone doesn't prevent unfavorable but clearly-written terms
  • Penalty structure: Depending on how penalties are designed, they could be insufficient to change industry behavior or so severe they create unintended consequences for contract enforcement

Compiled from official sources — confirm details with the bill’s official record.

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