| HOUSE AMENDED |
| PRIOR PRINTER'S NOS. 352, 1162, 1581, 1670, 1718 | PRINTER'S NO. 2209 |
|
| |
| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
| |
| SENATE BILL |
|
| |
| |
| INTRODUCED BY D. WHITE, BROWNE, TOMLINSON, WAUGH, M. WHITE, WOZNIAK, EARLL, GREENLEAF AND SCARNATI, FEBRUARY 1, 2011 |
| |
| |
| AS REPORTED FROM COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, HOUSE OF REPRESENTATIVES, AS AMENDED, MAY 23, 2012 |
| |
| |
| |
| AN ACT |
| |
1 | Providing for indigenous mineral certain resource development; | <-- |
2 | and imposing powers and duties on the Department of General |
3 | Services and the State System of Higher Education. |
4 | The General Assembly of the Commonwealth of Pennsylvania |
5 | hereby enacts as follows: |
6 | Section 1. Short title. |
7 | This act shall be known and may be cited as the Indigenous | <-- |
8 | Mineral Resources Development Act. |
9 | Section 2. Definitions. |
10 | The following words and phrases when used in this act shall |
11 | have the meanings given to them in this section unless the |
12 | context clearly indicates otherwise: |
13 | "Department." The Department of General Services of the |
14 | Commonwealth. |
15 | "Right-of-way." Includes: |
16 | (1) a right of passage and haulage for a lawful purpose; |
17 | (2) a right of flowage or transmission for a lawful |
|
1 | purpose; or |
2 | (3) the construction, operation and maintenance of |
3 | infrastructure necessary to facilitate a lawful purpose. |
4 | "State-owned land." Land owned by the Commonwealth. The term |
5 | does not include land owned and administered by the Department |
6 | of Conservation and Natural Resources, the Pennsylvania Fish and |
7 | Boat Commission or the Pennsylvania Game Commission. |
8 | "State system land." Land owned by the State System of |
9 | Higher Education or controlled by the State System of Higher |
10 | Education pursuant to a memorandum of understanding approved by |
11 | the Department of General Services. |
12 | "System." The State System of Higher Education of the |
13 | Commonwealth. |
14 | Section 3. Development of resources on State-owned land. |
15 | (a) Authority.--The department has the following powers: |
16 | (1) To make and execute contracts or leases in the name |
17 | of the Commonwealth for the mining or removal of valuable |
18 | coal, oil, natural gas, coal bed methane, limestone and | <-- |
19 | mineral resources and limestone which may be found in or | <-- |
20 | beneath State-owned land and to convey Commonwealth rights to |
21 | coal, oil, natural gas, coal bed methane, limestone and | <-- |
22 | mineral resources and limestone. | <-- |
23 | (2) To grant a right-of-way through State-owned land to |
24 | any individual or corporation that applies if the department |
25 | determines that: | <-- |
26 | (i) the grant will not so adversely affect the land |
27 | determines that the grant will not so adversely affect | <-- |
28 | the land as to interfere with its usual and orderly |
29 | administration; and | <-- |
30 | (ii) the interests of the Commonwealth or its |
|
1 | citizens will be promoted by the grant. administration. | <-- |
2 | (3) To cooperate with, consult with or delegate to the | <-- |
3 | Department of Conservation and Natural Resources in carrying |
4 | out the provisions of this act. |
5 | (b) Advertising.-- |
6 | (1) A proposed contract, lease or conveyance of coal, |
7 | oil, natural gas, coal bed methane, limestone and mineral | <-- |
8 | resources and limestone exceeding $1,000 in value must be | <-- |
9 | advertised once a week for three weeks, in at least two |
10 | newspapers of general circulation published nearest the |
11 | locality indicated, in advance of awarding the contract or |
12 | lease. |
13 | (2) If the proposed conveyance is included in the |
14 | proposed conveyance of the real property to which it is |
15 | attached, the department shall comply with the advertising |
16 | requirements for the conveyance of the real property. |
17 | (c) Bidding.-- |
18 | (1) Except as set forth in paragraphs (2) and (3), |
19 | contracts, leases and conveyances shall be awarded to the |
20 | highest and best bidder. If title to the property has already |
21 | been conveyed, but the Commonwealth has reserved the right to |
22 | coal, oil, natural gas, coal bed methane, limestone or | <-- |
23 | mineral resources or limestone, the Commonwealth may convey | <-- |
24 | the resources to the owner of the fee without bidding. |
25 | (2) The requirement for competitive bidding may be |
26 | waived if the Commonwealth owns a fractional interest in the |
27 | coal, oil, natural gas, coal bed methane, limestone or | <-- |
28 | mineral resources or limestone in or beneath State-owned | <-- |
29 | land; and the department may enter into a contract to lease |
30 | that fractional interest, with the approval of the Governor |
|
1 | and upon terms and conditions the department deems to be in |
2 | the best interest of the Commonwealth. |
3 | (3) If a proposed conveyance under this section is |
4 | included in the proposed conveyance of the real property to |
5 | which it is attached, the award shall be made to the selected |
6 | buyer of the real property. |
7 | (d) Bond.--A party that enters into a contract or lease |
8 | under this section must provide a bond satisfactory to the |
9 | department for the proper performance of the contract or lease. |
10 | Section 4. Development of resources on State system land. |
11 | (a) Authority.--The department has the following powers: |
12 | (1) To make and execute contracts or leases in the name |
13 | of the Commonwealth for the mining or removal of valuable |
14 | coal, oil, natural gas, coal bed methane, limestone and | <-- |
15 | mineral resources and limestone which may be found in or | <-- |
16 | beneath State system land. |
17 | (2) To grant a right-of-way through State system land to |
18 | any individual or corporation that applies if the system |
19 | determines that: | <-- |
20 | (i) the grant will not so adversely affect the land |
21 | determines that the grant will not so adversely affect | <-- |
22 | the land as to interfere with its usual and orderly |
23 | administration; and | <-- |
24 | (ii) the interests of the Commonwealth or its |
25 | citizens will be promoted by the grant. Administration. | <-- |
26 | (3) To cooperate with, consult with or delegate to the |
27 | Department of Conservation and Natural Resources in carrying |
28 | out the provisions of this act. |
29 | (b) Advertising.--A proposed contract or lease under this |
30 | act that exceeds $1,000 in value must be advertised for three |
|
1 | weeks on the system's publicly accessible Internet website and |
2 | at least once a week for three weeks, in at least two newspapers |
3 | of general circulation published nearest the locality indicated, |
4 | in advance of awarding the contract or lease. |
5 | (c) Bidding.-- |
6 | (1) Except as set forth in paragraph (2), contracts and |
7 | leases shall be awarded to the highest and best bidder. |
8 | (2) The requirement for competitive bidding may be |
9 | waived if the Commonwealth owns a fractional interest in the |
10 | mineral resources in or beneath State system land and the |
11 | department may enter into a contract to lease that fractional |
12 | interest, with the approval of the Governor and upon terms |
13 | and conditions the department deems to be in the best |
14 | interest of the Commonwealth. |
15 | (d) Bond.--A party that enters into a contract or lease |
16 | under this section must provide a bond satisfactory to the |
17 | department for the proper performance of the contract or lease. |
18 | Section 5. Deposit of revenue. |
19 | (a) Payments.-- |
20 | (1) All payments or royalties received by the department |
21 | pursuant to a contract or lease under this act, except for a |
22 | contract or lease under section 4, in fiscal year 2011-2012 |
23 | through fiscal year 2013-2014 shall be deposited in the Oil | <-- |
24 | and Gas Lease Fund. |
25 | (2) All payments or royalties received by the department |
26 | pursuant to a contract or lease under this act, except for a |
27 | contract or lease under section 4, in fiscal year 2014-2015 |
28 | and each fiscal year thereafter shall be deposited as |
29 | follows: |
30 | (i) Twenty-five percent of payments or royalties |
|
1 | received by the department shall be deposited in the |
2 | Hazardous Sites Cleanup Fund. |
3 | (ii) Twenty-five percent of the payments or |
4 | royalties shall be allocated to the Pennsylvania |
5 | Infrastructure Investment Authority established under the |
6 | act of March 1, 1988 (P.L.82, No.16), known as the |
7 | Pennsylvania Infrastructure Investment Authority Act. |
8 | (iii) Twenty-five percent of the payments or |
9 | royalties shall be allocated to the H2O program |
10 | established under the act of July 9, 2008 (P.L.908, |
11 | No.63), known as the H2O PA Act. |
12 | (iv) Twenty-five percent of the payments or and | <-- |
13 | every year thereafter shall be deposited as follows: |
14 | (i) Twenty percent of the payments or royalties |
15 | shall be retained by the State agency where the coal, |
16 | oil, natural gas, coal bed methane or limestone is leased |
17 | or extracted. |
18 | (ii) All remaining payments or royalties shall be |
19 | deposited into the Oil and Gas Lease Fund. |
20 | (3) (2) The costs incurred by the department or the | <-- |
21 | Department of Conservation and Natural Resources in |
22 | advertising and contracting, leasing or conveying the |
23 | resources, including the fees of any survey, appraisal or |
24 | report, shall be deducted from payments or royalties, and |
25 | that amount shall be an executively authorized augmentation |
26 | to the appropriation to the department or the Department of |
27 | Conservation and Natural Resources. |
28 | (b) Payments derived by system.--All payments or royalties |
29 | derived from any lease entered into under section 4 shall be |
30 | allocated as follows: |
|
1 | (1) Forty percent shall be retained by the university |
2 | where the coal, oil, natural gas, coal bed methane, limestone | <-- |
3 | or mineral resource or limestone is leased or extracted and | <-- |
4 | shall be used by the university for deferred maintenance |
5 | projects or energy efficiency or energy cost saving |
6 | improvements. |
7 | (2) Sixty percent shall be allocated to the State System |
8 | of Higher Education for distribution among those universities |
9 | where no coal, oil, natural gas, coal bed methane, limestone | <-- |
10 | or mineral resources or limestone have been leased or | <-- |
11 | extracted. The distribution formula shall be determined by |
12 | the Board of Governors of the State System of Higher |
13 | Education. Funds distributed under this paragraph shall only |
14 | be used for deferred maintenance or energy efficiency or |
15 | energy cost saving improvements. |
16 | Section 6. Condition relating to surplus property. |
17 | Notwithstanding the provisions of section 2405-A(6) of the |
18 | act of April 9, 1929 (P.L.177, No.175), known as The |
19 | Administrative Code of 1929, the department may convey all oil, | <-- |
20 | gas and mineral coal, oil, natural gas, coal bed methane and | <-- |
21 | limestone rights to the purchaser of surplus Commonwealth real |
22 | property along with the conveyance of the surplus real property |
23 | when done so in accordance with this act. |
24 | Section 30 7. Effective date. | <-- |
25 | This act shall take effect immediately. |
|