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| PRIOR PRINTER'S NOS. 352, 1162, 1581, 1670, 1718, 2209, 2327 | PRINTER'S NO. 2349 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY D. WHITE, BROWNE, TOMLINSON, WAUGH, M. WHITE, WOZNIAK, EARLL, GREENLEAF AND SCARNATI, FEBRUARY 1, 2011 |
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| AMENDMENTS TO HOUSE AMENDMENTS, IN SENATE, JUNE 29, 2012 |
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| AN ACT |
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1 | Providing for certain indigenous mineral 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 |
18 | purpose; or |
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1 | (3) the construction, operation and maintenance of |
2 | infrastructure necessary to facilitate a lawful purpose. |
3 | "State-owned land." Land owned by the Commonwealth. The term |
4 | does not include State system land or land owned and |
5 | administered by the Department of Conservation and Natural |
6 | Resources, the Pennsylvania Fish and Boat Commission or the |
7 | 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 and limestone which |
19 | may be found in or beneath State-owned land and to convey |
20 | Commonwealth rights to coal, oil, natural gas, coal bed |
21 | methane and limestone. |
22 | (2) To grant a right-of-way through State-owned land to |
23 | any individual or corporation that applies if the department |
24 | determines that the grant will not so adversely affect the |
25 | land as to interfere with its usual and orderly |
26 | administration. |
27 | (3) To cooperate with, consult with or delegate to the |
28 | Department of Conservation and Natural Resources, pursuant to |
29 | its authority in the act of June 28, 1995 (P.L.89, No.18), |
30 | known as the Conservation and Natural Resources Act, in |
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1 | carrying out the provisions of this act. |
2 | (b) Advertising.-- |
3 | (1) A proposed contract, lease or conveyance of coal, |
4 | oil, natural gas, coal bed methane and limestone exceeding |
5 | $1,000 in value must be advertised once a week for three |
6 | weeks, in at least two newspapers of general circulation |
7 | published nearest the locality indicated, in advance of |
8 | awarding the contract or lease. |
9 | (2) If the proposed conveyance is included in the |
10 | proposed conveyance of the real property to which it is |
11 | attached, the department shall comply with the advertising |
12 | requirements for the conveyance of the real property. |
13 | (c) Bidding.-- |
14 | (1) Except as set forth in paragraphs (2) and (3), |
15 | contracts, leases and conveyances shall be awarded to the |
16 | highest and best bidder. If title to the property has already |
17 | been conveyed, but the Commonwealth has reserved the right to |
18 | coal, oil, natural gas, coal bed methane or limestone, the |
19 | Commonwealth may convey the resources to the owner of the fee |
20 | without bidding. |
21 | (2) The requirement for competitive bidding may be |
22 | waived if the Commonwealth owns a fractional interest in the |
23 | coal, oil, natural gas, coal bed methane or limestone in or |
24 | beneath State-owned land; and the department may enter into a |
25 | contract to lease that fractional interest, with the approval |
26 | of the Governor and upon terms and conditions the department |
27 | deems to be in the best interest of the Commonwealth. |
28 | (3) If a proposed conveyance under this section is |
29 | included in the proposed conveyance of the real property to |
30 | which it is attached, the award shall be made to the selected |
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1 | buyer of the real property. |
2 | (d) Bond.--A party that enters into a contract or lease |
3 | under this section must provide a bond satisfactory to the |
4 | department for the proper performance of the contract or lease. |
5 | Section 4. Development of resources on State system land. |
6 | (a) Authority.--The department has the following powers: |
7 | (1) To make and execute contracts or leases in the name |
8 | of the Commonwealth for the mining or removal of valuable |
9 | coal, oil, natural gas, coal bed methane and limestone which |
10 | may be found in or beneath State system land. |
11 | (2) To grant a right-of-way through State system land to |
12 | any individual or corporation that applies if the system |
13 | determines that the grant will not so adversely affect the |
14 | land as to interfere with its usual and orderly |
15 | administration. |
16 | (3) To cooperate with, consult with or delegate to the |
17 | Department of Conservation and Natural Resources, pursuant to |
18 | its authority in the act of June 28, 1995 (P.L.89, No.18), |
19 | known as the Conservation and Natural Resources Act, in |
20 | carrying out the provisions of this act. |
21 | (a.1) Limitations.--The department may not make or execute a |
22 | contract or lease under subsection (a)(1) unless the president |
23 | of the system university affected by the contract or lease has |
24 | provided the department with written authorization to proceed |
25 | with negotiating a contract or lease. |
26 | (b) Advertising.--A proposed contract or lease under this |
27 | act that exceeds $1,000 in value must be advertised for three |
28 | weeks on the system's publicly accessible Internet website and |
29 | at least once a week for three weeks, in at least two newspapers |
30 | of general circulation published nearest the locality indicated, |
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1 | in advance of awarding the contract or lease. |
2 | (c) Bidding.-- |
3 | (1) Except as set forth in paragraph (2), contracts and |
4 | leases shall be awarded to the highest and best bidder. |
5 | (2) The requirement for competitive bidding may be |
6 | waived if the Commonwealth owns a fractional interest in the |
7 | mineral resources in or beneath State system land and the |
8 | department may enter into a contract to lease that fractional |
9 | interest, with the approval of the Governor and upon terms |
10 | and conditions the department deems to be in the best |
11 | interest of the Commonwealth. |
12 | (d) Bond.--A party that enters into a contract or lease |
13 | under this section must provide a bond satisfactory to the |
14 | department for the proper performance of the contract or lease. |
15 | Section 5. Deposit of revenue. |
16 | (a) Payments derived from State-owned land.--Notwithstanding |
17 | section 1 of the act of December 15, 1955 (P.L.865, No.256), |
18 | entitled "An act requiring rents and royalties from oil and gas |
19 | leases of Commonwealth land to be placed in a special fund to be |
20 | used for conservation, recreation, dams, and flood control; |
21 | authorizing the Secretary of Forests and Waters to determine the |
22 | need for and location of such projects and to acquire the |
23 | necessary land," all payments or royalties received by the |
24 | department pursuant to a contract or lease under section 3 in |
25 | fiscal year 2011-2012 and every year thereafter shall be |
26 | deposited as follows: |
27 | (1) Twenty percent of the payments or royalties shall be | <-- |
28 | retained by the State agency where the coal, oil, natural |
29 | gas, coal bed methane or limestone is leased or extracted. |
30 | (2) All remaining payments or royalties shall be |
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1 | deposited into the Oil and Gas Lease Fund. |
2 | (1) Sixty percent of payments or royalties received by | <-- |
3 | the department shall be deposited in the Oil and Gas Lease |
4 | Fund. |
5 | (2) Twenty-five percent of payments or royalties |
6 | received by the department shall be allocated to the |
7 | Pennsylvania Infrastructure Investment Authority established |
8 | under the act of March 1, 1988 (P.L.82, No.16), known as the |
9 | Pennsylvania Infrastructure Investment Authority Act. The |
10 | authority may use these funds to provide grants for nonpoint |
11 | source best management practices to implement the Chesapeake |
12 | Bay Watershed Implementation Plan and total maximum daily |
13 | load plan implementation Statewide, in addition to the |
14 | authority's other permitted uses. |
15 | (3) Fifteen percent of payments or royalties received by |
16 | the department shall be retained by the State agency where |
17 | the coal, oil, natural gas, coal bed methane or limestone is |
18 | leased or extracted. |
19 | (b) Payments derived from State system land.--All payments |
20 | or royalties derived from any lease entered into under section 4 |
21 | in fiscal year 2012-2013 and each fiscal year thereafter shall | <-- |
22 | be allocated as follows: |
23 | (1) Except as provided under paragraph (3), 40% Fifty | <-- |
24 | percent shall be retained by the university where the coal, |
25 | oil, natural gas, coal bed methane or limestone is leased or |
26 | extracted and shall be used by the university for deferred |
27 | maintenance projects or energy efficiency or energy cost |
28 | saving improvements. |
29 | (2) Except as provided under paragraph (3), 60% Thirty- | <-- |
30 | five percent shall be allocated to the State System of Higher |
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1 | Education for distribution among those universities where no |
2 | coal, oil, natural gas, coal bed methane or limestone have |
3 | been leased or extracted. The distribution formula shall be |
4 | determined by the Board of Governors of the State System of |
5 | Higher Education. Funds distributed under this paragraph |
6 | shall only be used for deferred maintenance or energy |
7 | efficiency or energy cost saving improvements. |
8 | (3) Fifteen percent of the funds distributed under | <-- |
9 | paragraphs (1) and (2) shall be used exclusively for tuition |
10 | reduction shall be allocated to the system for distribution | <-- |
11 | to all 14 universities for the waiver of tuition fees and |
12 | other charges and fees pursuant to policies issued under |
13 | section 2006-A(a)(13) of the act of March 10, 1949 (P.L.30, |
14 | No.14), known as the Public School Code of 1949. |
15 | (c) Executively authorized augmentations.--The costs |
16 | incurred by the department or the Department of Conservation and |
17 | Natural Resources in advertising and contracting, leasing or |
18 | conveying the resources, including the fees of any survey, |
19 | appraisal or report, shall be deducted from payments or |
20 | royalties and that amount shall be an executively authorized |
21 | augmentation to the appropriation to the department or the |
22 | Department of Conservation and Natural Resources. |
23 | Section 6. Condition relating to surplus property. |
24 | Notwithstanding the provisions of section 2405-A(6) of the |
25 | act of April 9, 1929 (P.L.177, No.175), known as The |
26 | Administrative Code of 1929, the department may convey all coal, |
27 | oil, natural gas, coal bed methane and limestone rights to the |
28 | purchaser of surplus Commonwealth real property along with the |
29 | conveyance of the surplus real property when done so in |
30 | accordance with this act. |
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1 | Section 7. Effective date. |
2 | This act shall take effect immediately. |
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