PRINTER'S NO. 52

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 49 Session of 1987


        INTRODUCED BY PETRARCA, J. L. WRIGHT, HALUSKA, TRELLO, SWEET,
           KOSINSKI, STABACK, CAPPABIANCA, PETRONE AND CARLSON,
           JANUARY 28, 1987

        REFERRED TO COMMITTEE ON MINES AND ENERGY MANAGEMENT,
           JANUARY 28, 1987

                                     AN ACT

     1  Amending the act of April 9, 1929 (P.L.177, No.175), entitled
     2     "An act providing for and reorganizing the conduct of the
     3     executive and administrative work of the Commonwealth by the
     4     Executive Department thereof and the administrative
     5     departments, boards, commissions, and officers thereof,
     6     including the boards of trustees of State Normal Schools, or
     7     Teachers Colleges; abolishing, creating, reorganizing or
     8     authorizing the reorganization of certain administrative
     9     departments, boards, and commissions; defining the powers and
    10     duties of the Governor and other executive and administrative
    11     officers, and of the several administrative departments,
    12     boards, commissions, and officers; fixing the salaries of the
    13     Governor, Lieutenant Governor, and certain other executive
    14     and administrative officers; providing for the appointment of
    15     certain administrative officers, and of all deputies and
    16     other assistants and employes in certain departments, boards,
    17     and commissions; and prescribing the manner in which the
    18     number and compensation of the deputies and all other
    19     assistants and employes of certain departments, boards and
    20     commissions shall be determined," creating the Department of
    21     Energy and prescribing its powers and duties; establishing
    22     the Energy Research and Development Board as an advisory
    23     board in the Department of Energy; further providing for the
    24     powers and duties of the Department of Environmental
    25     Resources and the appointment of mine inspectors; creating a
    26     Division of Administrative Hearings in the Office of Attorney
    27     General and prescribing its powers and duties; further
    28     providing for mine inspectors and certain conflicts of
    29     interest; providing for the salary of the Secretary of
    30     Energy; transferring certain bureaus, personnel, allocations,
    31     appropriations, equipment and other materials from the
    32     Department of Environmental Resources to the Department of


     1     Energy; and making repeals.

     2     The General Assembly of the Commonwealth of Pennsylvania
     3  hereby enacts as follows:
     4     Section 1.  Section 201 of the act of April 9, 1929 (P.L.177,
     5  No.175), known as The Administrative Code of 1929, amended
     6  December 30, 1984 (P.L.1299, No.245), is amended to read:
     7     Section 201.  Executive Officers, Administrative Departments
     8  and Independent Administrative Boards and Commissions.--The
     9  executive and administrative work of this Commonwealth shall be
    10  performed by the Executive Department, consisting of the
    11  Governor, Lieutenant Governor, Secretary of the Commonwealth,
    12  Attorney General, Auditor General, State Treasurer, and
    13  Secretary of Education; by the Executive Board, and the
    14  Pennsylvania State Police; by the following administrative
    15  departments: Department of State, Office of Attorney General,
    16  Department of Corrections, Department of the Auditor General,
    17  Treasury Department, Department of Education, Department of
    18  Military Affairs, Insurance Department, Department of Banking,
    19  Department of Agriculture, Department of Transportation,
    20  Department of Health, Department of Labor and Industry,
    21  Department of Aging, Department of Public Welfare, Department of
    22  General Services, Department of Revenue, Department of Commerce,
    23  Department of Community Affairs [and], Department of
    24  Environmental Resources and Department of Energy; and by the
    25  following independent administrative boards and commissions:
    26  Pennsylvania Game Commission, Pennsylvania Fish Commission,
    27  State Civil Service Commission, Pennsylvania Public Utility
    28  Commission, the Pennsylvania Historical and Museum Commission
    29  and the Pennsylvania Securities Commission.
    30     All of the provisions of this act, which apply generally to
    19870H0049B0052                  - 2 -

     1  administrative departments, or generally except to the
     2  Department of the Auditor General, the Treasury Department and
     3  the Office of Attorney General, shall apply to the Executive
     4  Board and to the Pennsylvania State Police.
     5     Section 2.  As much as relates to the Department of
     6  Environmental Resources in section 202 of the act, added
     7  December 3, 1970 (P.L.834, No.275), is amended to read:
     8     Section 202.  Departmental Administrative Boards,
     9  Commissions, and Offices.--The following boards, commissions,
    10  and offices are hereby placed and made departmental
    11  administrative boards, commissions, or offices, as the case may
    12  be, in the respective administrative departments mentioned in
    13  the preceding section, as follows:
    14     * * *
    15     In the Department of Environmental Resources,
    16         Environmental Quality Board,
    17         Environmental Hearing Board,
    18         State Board for Certification of Sewage Treatment and
    19             Waterworks Operators,
    20         State Soil and Water Conservation Commission[,
    21         Anthracite Mine Inspectors,
    22         Bituminous Mine Inspectors].
    23     * * *
    24     Section 3.  Section 203 of the act, amended December 3, 1970
    25  (P.L.834, No.275), July 22, 1975 (P.L.75, No.45), June 20, 1978
    26  (P.L.477, No.70) and December 6, 1982 (P.L.774, No.223), is
    27  amended to read:
    28     Section 203.  Advisory Boards and Commissions.--The following
    29  advisory boards and commissions are placed in and made parts of
    30  the respective administrative departments, as follows:
    19870H0049B0052                  - 3 -

     1     In the Department of Military Affairs,
     2         State Military Reservation Commission,
     3         State Veterans' Commission;
     4     In the Department of Environmental Resources,
     5         Citizens Advisory Council;
     6     In the Department of Health,
     7         Advisory Health Board;
     8     In the Department of Labor and Industry,
     9         Industrial Board,
    10         Advisory Council on Affairs of the Handicapped,
    11         Advisory Board on Problems of Older Workers;
    12     In the Department of Public Welfare,
    13         State Board of Public Welfare,
    14         Advisory Committee for the Blind,
    15         Advisory Committee for General and Special Hospitals,
    16         Advisory Committee for Children and Youth,
    17         Advisory Committee for Public Assistance,
    18         Advisory Committee for Mental Health and Mental
    19             Retardation;
    20     In the Department of Commerce,
    21         Board of the Ben Franklin Partnership Fund;
    22     In the Department of Energy,
    23         Energy Research and Development Board.
    24     Section 4.  Sections 206 and 207.1(d)(1) of the act, amended
    25  December 30, 1984 (P.L.1299, No.245), are amended to read:
    26     Section 206.  Department Heads.--Each administrative
    27  department shall have as its head an officer who shall, either
    28  personally, by deputy, or by the duly authorized agent or
    29  employe of the department, and subject at all times to the
    30  provisions of this act, exercise the powers and perform the
    19870H0049B0052                  - 4 -

     1  duties by law vested in and imposed upon the department.
     2     The following officers shall be the heads of the
     3  administrative departments following their respective titles:
     4     Secretary of the Commonwealth, of the Department of State;
     5     Auditor General, of the Department of the Auditor General;
     6     State Treasurer, of the Treasury Department;
     7     Attorney General, of the Office of Attorney General;
     8     Secretary of Education, of the Department of Education;
     9     Adjutant General, of the Department of Military Affairs;
    10     Insurance Commissioner, of the Insurance Department;
    11     Secretary of Banking, of the Department of Banking;
    12     Secretary of Agriculture, of the Department of Agriculture;
    13     Secretary of Transportation, of the Department of
    14         Transportation;
    15     Secretary of Health, of the Department of Health;
    16     Secretary of Labor and Industry, of the Department of Labor
    17         and Industry;
    18     Secretary of Aging, of the Department of Aging;
    19     Secretary of Public Welfare, of the Department of Public
    20         Welfare;
    21     Secretary of Revenue, of the Department of Revenue;
    22     Secretary of Commerce, of the Department of Commerce;
    23     Secretary of Community Affairs, of the Department of
    24         Community Affairs;
    25     Secretary of Environmental Resources, of the Department of
    26         Environmental Resources;
    27     Secretary of Energy, of the Department of Energy;
    28     Secretary of General Services, of the Department of General
    29         Services;
    30     Secretary of Corrections, of the Department of Corrections.
    19870H0049B0052                  - 5 -

     1     Section 207.1.  Gubernatorial Appointments.--* * *
     2     (d)  The Governor shall nominate in accordance with the
     3  provisions of the Constitution of the Commonwealth of
     4  Pennsylvania and, by and with the advice and consent of a
     5  majority of the members elected to the Senate appoint persons to
     6  fill the following positions:
     7     (1)  The Secretary of Education, the Secretary of the
     8  Commonwealth, the Adjutant General, the Insurance Commissioner,
     9  the Secretary of Banking, the Secretary of Agriculture, the
    10  Secretary of Transportation, the Secretary of Health, the
    11  Commissioner of the State Police, the Secretary of Corrections,
    12  the Secretary of Labor and Industry, the Secretary of Aging, the
    13  Secretary of Public Welfare, the Secretary of General Services,
    14  the Secretary of Revenue, the Secretary of Commerce, the
    15  Secretary of Community Affairs [and], the Secretary of
    16  Environmental Resources and the Secretary of Energy.
    17     * * *
    18     Section 5.  Section 438 of the act, amended December 3, 1970
    19  (P.L.834, No.275), is amended to read:
    20     Section 438.  Mine Inspectors.--There shall be as many
    21  [anthracite mine inspectors, and as many bituminous mine
    22  inspectors, as may now or hereafter be provided by law] mine
    23  inspectors as may now or hereafter be necessary to conduct
    24  inspections with the frequency mandated by State and Federal
    25  law. All such mine inspectors shall be appointed[, respectively,
    26  from among persons holding valid certificates of qualification
    27  issued by the Department of Environmental Resources.] in
    28  accordance with the act of August 5, 1941 (P.L.752, No.286),
    29  known as the "Civil Service Act."
    30     The manner of appointing mine inspectors[,] and their
    19870H0049B0052                  - 6 -

     1  qualifications[, and their terms of office,] shall be as may now
     2  or hereafter be provided by law.
     3     Section 6.  Section 448 of the act is amended by adding a
     4  clause to read:
     5     Section 448.  Advisory Boards and Commissions.--The advisory
     6  boards and commissions, within the several administrative
     7  departments, shall be constituted as follows:
     8     * * *
     9     (q)  The Energy Research and Development Board shall consist
    10  of the Secretary of Energy, who shall be chairman thereof, the
    11  Secretary of Commerce, the Secretary of Environmental Resources,
    12  the Chairman of the Pennsylvania Public Utility Commission, the
    13  Chairman of the Governor's Energy Council, and eight (8) members
    14  appointed by the Governor. The eight (8) appointed members shall
    15  be knowledgeable in fields related to energy development,
    16  production and use and shall be appointed by the Governor as
    17  follows: one (1) member shall be from an electric power utility,
    18  one (1) member shall be from a fossil fuel-fired boiler
    19  manufacturer, one (1) member shall be the owner or official of a
    20  coal mine or coal-cleaning plant, one (1) member shall be an oil
    21  or gas producer, one (1) member shall be knowledgeable in
    22  renewable energy resources, one (1) member shall be from a
    23  hydroelectric power user and two (2) members shall be from the
    24  energy research staff of an accredited Pennsylvania university
    25  or college. The membership of the Energy Research and
    26  Development Board shall also include four (4) members of the
    27  General Assembly, one appointed by the President pro tempore of
    28  the Senate, one by the Minority Leader of the Senate, one by the
    29  Speaker of the House of Representatives and one by the Minority
    30  Leader of the House of Representatives.
    19870H0049B0052                  - 7 -

     1     The term of office of each member appointed by the Governor
     2  shall be four (4) years, measured from the third Tuesday of
     3  January of the year in which he takes office, or until his
     4  successor has been appointed except, that in the initial
     5  appointments of the members of the board, the Governor shall
     6  appoint four members for terms of two (2) years each and four
     7  (4) members for terms of three (3) years each.
     8     Any member appointed to fill a vacancy created otherwise than
     9  by expiration of term shall be appointed for the unexpired term
    10  of the member whom he is to succeed. Members of the board shall
    11  not receive any compensation for their service but shall be
    12  reimbursed for actual and necessary expenses incurred in the
    13  performance of their duties and shall receive a per diem
    14  allowance of seventy-five dollars ($75).
    15     A majority of the members shall constitute a quorum. Meetings
    16  of the board shall be held at least quarterly or at the call of
    17  the chairman, or at the request of at least six (6) members of
    18  the board.
    19     The Department of Energy shall provide technical assistance
    20  and support services to the board.
    21     Section 7.  Section 1901-A of the act, added December 3, 1970
    22  (P.L.834, No.275), is amended to read:
    23     Section 1901-A.  Powers and Duties in General.--The
    24  Department of Environmental Resources shall, subject to any
    25  inconsistent provision in this act contained, continue to
    26  exercise the powers and perform the duties by law heretofore
    27  vested in and imposed upon:
    28     (1)  The Department of Forests and Waters, the Secretary of
    29  Forests and Waters, the Water and Power Resources Board, the
    30  Flood Control Commission, the Pennsylvania State Park and Harbor
    19870H0049B0052                  - 8 -

     1  Commission of Erie, and the State Forest Commission;
     2     [(2)  The Department of Mines and Mineral Industries, the
     3  Secretary of Mines and Mineral Industries, the Oil and Gas
     4  Conservation Commission, the Mine Inspectors' Examining Board
     5  for the Bituminous Coal Mines of Pennsylvania, and the
     6  Anthracite Mine Inspectors' Examining Board;]
     7     (3)  The Oil and Gas Inspectors' Examining Board, created by
     8  the act of December 21, 1959 (P.L.1967), which board is hereby
     9  abolished;
    10     (4)  The Land Restoration Board, created by the act of June
    11  27, 1947 (P.L.1095), which board is hereby abolished;
    12     (5)  The Land Reclamation Board, created by the act of May
    13  31, 1945 (P.L.1198), which board is hereby abolished;
    14     (6)  The Department of Health and the Secretary of Health in
    15  so far as such powers and duties pertain to the control of
    16  nuisances from grounds, vehicles, apartments, buildings and
    17  places within the Commonwealth, to the sanitary condition of
    18  tenements, lodging and boarding houses, to management of the
    19  sanitary affairs of the Commonwealth, the issuance of waterworks
    20  permits and to the control of water pollution;
    21     (7)  The former Commissioner of Health and the Department of
    22  Health by the act of April 22, 1905 (P.L.260), entitled "An act
    23  to preserve the purity of the waters of the State, for the
    24  protection of the public health;"
    25     (8)  The Department of Health and the Secretary of Health by
    26  the act of August 20, 1953 (P.L.1217), entitled "An act
    27  providing for payments by the Commonwealth to municipalities
    28  which have expended money to acquire and construct sewage
    29  treatments plants in accordance with the Clean Streams Program
    30  and the act, approved the twenty-second day of June, one
    19870H0049B0052                  - 9 -

     1  thousand nine hundred thirty-seven (Pamphlet Laws 1987), and
     2  making an appropriation;"
     3     (9)  The Department of Health by the act of June 23, 1931
     4  (P.L.899), known as the "Public Bathing Law;"
     5     [(10)  The Department of Health by the act of January 19,
     6  1968 (P.L.996), known as "The Land and Water Conservation and
     7  Reclamation Act;"]
     8     (11)  The Department of Health by the act of May 23, 1945
     9  (P.L.926), entitled "An act for the protection of the public
    10  health by regulating the conduct and operation of public eating
    11  and drinking places within this Commonwealth; requiring their
    12  licensing; imposing certain duties on the Department of Health
    13  of this Commonwealth and on the local health authorities; and
    14  providing penalties;"
    15     (12)  The Department of Health by the act of April 30, 1929
    16  (P.L.897), entitled "An act regulating the manufacturing,
    17  bottling, and selling of certain waters, and requiring permits
    18  therefor; prescribing the authority of the Department of Health
    19  and of local boards of health and health officers with respect
    20  thereto; and providing penalties;"
    21     (13)  The Department of Health by the act of November 10,
    22  1959 (P.L.1400), entitled "An act providing for the annual
    23  registration of organized camps for children, youth and adults;
    24  defining the duties of the Department of Health of the
    25  Commonwealth of Pennsylvania; and prescribing penalties;"
    26     (14)  The Department of Health by the act of January 24, 1966
    27  (P.L.1535), known as the "Pennsylvania Sewage Facilities Act;"
    28     (15)  The Department of Health by the act of July 31, 1968
    29  (Act No.241), known as the "Pennsylvania Solid Wastes Management
    30  Act;"
    19870H0049B0052                 - 10 -

     1     (16)  The Department of Health by the act of January 8, 1960
     2  (P.L.2119), known as the "Air Pollution Control Act;"
     3     (17)  The Department of Health by the act of January 28, 1966
     4  (P.L.1625), known as "The Atomic Energy Development and
     5  Radiation Control Act;"
     6     (18)  The Department of Health by the act of September 8,
     7  1959 (P.L.807), entitled "An act empowering the Department of
     8  Health to regulate the burial of radioactive material and to
     9  issue permits therefor; and prescribing penalties;"
    10     (19)  The Department of Health and the Secretary of Health by
    11  the act of October 26, 1959 (P.L.1380), entitled "An act
    12  empowering the Commonwealth to acquire land and operate burial
    13  grounds for the disposal of radioactive materials;"
    14     [(20)  The Department of Health by the act of June 22, 1937
    15  (P.L.1987), known as "The Clean Streams Law;"]
    16     (21)  The Department of Health by the act of November 18,
    17  1968 (Act No. 322), known as the "Sewage Treatment Plant and
    18  Waterworks Operators' Certification Act;"
    19     (22)  The Sanitary Water Board;
    20     (23)  The Air Pollution Commission, created by the act of
    21  January 8, 1960 (P.L.2119), known as the "Air Pollution Control
    22  Act," which commission is hereby abolished[;].
    23     [(24)  The Department of Labor and Industry and the Secretary
    24  of Labor and Industry in so far as such powers and duties relate
    25  to regulation of mining operations, quarry operations and sand
    26  and gravel pits under the act of July 1, 1937 (P.L.2681),
    27  entitled "An act relating to, and regulating the manufacture,
    28  storing, and possession of explosives; requiring permits for
    29  magazines, and prescribing permit fees; and providing
    30  penalties," and July 10, 1957 (P.L.685), entitled "An act
    19870H0049B0052                 - 11 -

     1  regulating the use of explosives in certain blasting operations;
     2  requiring examination and licensing of certain explosives'
     3  detonators and prescribing the fee thereof; and conferring
     4  powers and imposing duties on the Department of Labor and
     5  Industry."]
     6     Section 8.  Section 1902-A(6) and (13) of the act, added
     7  December 3, 1970 (P.L.834, No.275) and amended July 2, 1980
     8  (P.L.345, No.87), are amended to read:
     9     Section 1902-A.  Forest Powers and Duties.--The Department of
    10  Environmental Resources shall have the power, and its duty shall
    11  be:
    12     * * *
    13     (6)  Whenever it shall appear that the welfare of the
    14  Commonwealth, with reference to reforesting, and the betterment
    15  of the State forests, with respect to control, management,
    16  protection, utilization, development, and regulation, of their
    17  occupancy and use, will be advanced by selling or disposing of
    18  any of the timber on the State forests, to dispose of such
    19  timber on terms most advantageous to the State: Provided, That
    20  the department is authorized and directed to set aside, within
    21  the State forests, unusual or historical groves of trees, or
    22  natural features, especially worthy of permanent preservation,
    23  to make the same accessible and convenient for public use, and
    24  to dedicate them in perpetuity to the people of the State for
    25  their recreation and enjoyment. [And the said department is
    26  hereby empowered, to make and execute contracts or leases, in
    27  the name of the Commonwealth, for the mining or removal of any
    28  valuable minerals that may be found in said State forests, or of
    29  oil and gas beneath those waters of Lake Erie owned by the
    30  Commonwealth, or of oil and gas beneath the land of Woodville
    19870H0049B0052                 - 12 -

     1  State Hospital owned by the Commonwealth, whenever it shall
     2  appear to the satisfaction of the department that it would be
     3  for the best interests of the State to make such disposition of
     4  said minerals: And provided further, That any proposed contracts
     5  or leases of valuable minerals, exceeding one thousand dollars
     6  ($1,000) in value, shall have been advertised once a week for
     7  three weeks, in at least two newspapers published nearest the
     8  locality indicated, in advance of awarding such contract or
     9  lease. Such contracts or leases may then be awarded to the
    10  highest and best bidder, who shall give bond for the proper
    11  performance of the contract as the department shall designate:
    12  Provided, however, That where the Commonwealth owns a fractional
    13  interest in the oil, natural gas and other minerals under State
    14  forest lands, the requirement of competitive bidding may be
    15  waived, and the department may enter into a contract to lease
    16  that fractional interest, with the approval of the Governor, and
    17  upon such terms and conditions as the department deems to be in
    18  the best interest of the Commonwealth.]
    19     * * *
    20     [(13)  The Department of Environmental Resources shall, with
    21  the approval of the Governor, have the authority to enter into
    22  agreements with owners or lessees of property or property rights
    23  located in the same area as lands owned or leased by the
    24  Commonwealth, for the protection, preservation or recovery of
    25  metallic or nonmetallic ore, fuel, oil, natural gas or any other
    26  mineral deposits underlying said lands, provided the said
    27  deposits are owned by the Commonwealth;]
    28     * * *
    29     Section 9.  Section 1903-A(12) of the act is repealed.
    30     Section 10.  Section 1904-A(6) of the act, added December 3,
    19870H0049B0052                 - 13 -

     1  1970 (P.L.834, No.275), is amended to read:
     2     Section 1904-A.  Waters.--The Department of Environmental
     3  Resources shall have the power and its duty shall be:
     4     * * *
     5     (6)  [To] Subject to the provisions of section 1902-B(11), to
     6  maintain a complete inventory of all the water resources of the
     7  Commonwealth; collect all pertinent data, facts, and information
     8  in connection therewith; classify, tabulate, record, and
     9  preserve the same; and, upon the basis thereof, determine, the
    10  points at which storage reservoirs may be constructed for flood
    11  control, for municipal and domestic supply, [hydraulic and
    12  hydroelectric power, steam raising, steam condensation,]
    13  navigation, and other utilization; and generally to devise all
    14  possible ways and means to conserve and develop the water supply
    15  and water resources of the Commonwealth for the use of the
    16  people thereof;
    17     * * *
    18     Section 11.  Sections 1906-A(9), 1908-A(3), 1915-A, 1916-A
    19  and 1928-A of the act are repealed.
    20     Section 12.  The act is amended by adding an article to read:
    21                           ARTICLE XIX-B
    22                      POWERS AND DUTIES OF THE
    23                     DEPARTMENT OF ENERGY, ITS
    24                     OFFICERS AND ITS ADVISORY
    25                               BOARD
    26     Section 1901-B.  Powers and Duties in General.--The
    27  Department of Energy shall, subject to any inconsistent
    28  provision in this act, continue to exercise the powers and
    29  perform the duties by law heretofore vested in and imposed upon
    30  the Department of Environmental Resources under section 1901-
    19870H0049B0052                 - 14 -

     1  A(2), section 1901-A(10), as much of section 1901-A(20) as
     2  relates to any matter within the jurisdiction of the Department
     3  of Energy and section 1901-A(24).
     4     Section 1902-B.  The Department of Energy shall have the
     5  power and its duty shall be:
     6     (1)  To make and execute contracts or leases in the name of
     7  the Commonwealth, with the approval of the Governor, and have
     8  the authority to enter into agreements with owners or lessees of
     9  property or property rights located in the same areas as lands
    10  owned or leased by the Commonwealth, for the protection,
    11  preservation or recovery of metallic or nonmetallic ore, oil,
    12  natural gas or any other mineral deposits underlying said lands,
    13  provided said deposits are owned by the Commonwealth, whenever
    14  it is determined by the department that it would be for the best
    15  interests of the Commonwealth to make such disposition of said
    16  deposits. Any proposed contracts or leases for the extraction or
    17  recovery of metallic or nonmetallic ore, oil, natural gas or
    18  other minerals shall have been published once a week for three
    19  consecutive weeks, in at least two newspapers of general
    20  circulation in the locality where the extraction or recovery is
    21  to be located, prior to awarding such contract or lease. Such
    22  contract or lease shall be awarded to the highest and best
    23  bidder capable for the proper performance of the contract:
    24  Provided, however, That where the Commonwealth owns a fractional
    25  interest in the oil, natural gas and other minerals, the
    26  requirement of competitive bidding may be waived, and the
    27  department may enter into a contract to lease that fractional
    28  interest, with the approval of the Governor, and upon such terms
    29  and conditions as the department deems to be in the best
    30  interest of the Commonwealth.
    19870H0049B0052                 - 15 -

     1     (2)  To make and execute contracts or leases, in the name of
     2  the Commonwealth, for the mining or removal of any valuable
     3  minerals that may be found in State forests, or of oil and gas
     4  beneath those waters of Lake Erie owned by the Commonwealth, or
     5  of oil and gas beneath the land of Woodville State Hospital
     6  owned by the Commonwealth, whenever it shall appear to the
     7  satisfaction of the department that it would be for the best
     8  interests of the State to make such disposition of said
     9  minerals: Provided, That any proposed contracts or leases of
    10  valuable minerals exceeding one thousand dollars ($1,000) in
    11  value shall have been advertised once a week for three weeks, in
    12  at least two newspapers published nearest the locality
    13  indicated, in advance of awarding such contract or lease. Such
    14  contracts or leases may then be awarded to the highest and best
    15  bidder, who shall give bond for the proper performance of the
    16  contract as the department shall designate: Provided, however,
    17  That where the Commonwealth owns a fractional interest in the
    18  oil, natural gas and other minerals under State forest lands,
    19  the requirement of competitive bidding may be waived, and the
    20  department may enter into a contract to lease that fractional
    21  interest, with the approval of the Governor and upon such terms
    22  and conditions as the department deems to be in the best
    23  interest of the Commonwealth.
    24     (3)  To enter into agreements to sell, lease or otherwise
    25  dispose of any iron, coal, limestone, fire-clay, oil, gas and
    26  other minerals, except sand and gravel and minerals deposited in
    27  pools created by dams, that may be found in or beneath the beds
    28  of navigable streams or bodies of water within this Commonwealth
    29  and nonnavigable streams or bodies of water where the beds
    30  thereof are owned by the Commonwealth, on such terms and
    19870H0049B0052                 - 16 -

     1  conditions as the department deems to be in the best interest of
     2  the Commonwealth. Nothing herein shall authorize the
     3  interference with free navigation of said streams or bodies of
     4  water or to undermine the bed thereof or to interfere with the
     5  rights of any person or persons holding property on the banks
     6  thereof.
     7     (4)  To enter into contracts: (i) to implement the Abandoned
     8  Mine Reclamation Program under Title IV of the Surface Mining
     9  Control and Reclamation Act of 1977, (Public Law 95-87, 30
    10  U.S.C. § 1231 et seq.); (ii) for the abatement and control work
    11  authorized under the act of January 19, 1968 (1967 P.L.996,
    12  No.443), known as "The Land and Water Conservation and
    13  Reclamation Act"; (iii) to reclaim abandoned surface mines as
    14  provided for in the act of May 31, 1945 (P.L.1198, No.418),
    15  known as the "Surface Mining Conservation and Reclamation Act,"
    16  the act of December 19, 1984 (P.L.1093, No.219), known as the
    17  "Noncoal Surface Mining Conservation and Reclamation Act," and
    18  the act of September 24, 1968 (P.L.1040, No.318), known as the
    19  "Coal Refuse Disposal Control Act"; (iv) to restore, repair or
    20  mitigate damages as provided for in the act of April 27, 1966
    21  (1st Sp.Sess., P.L.31, No.1), known as "The Bituminous Mine
    22  Subsidence and Land Conservation Act"; and (v) to plug abandoned
    23  oil and gas wells as provided in the act of December 19, 1984
    24  (P.L.1140, No.223), known as the "Oil and Gas Act."
    25     (5)  In all cases in which the department enters into a
    26  contract and the other party to the contract is required to post
    27  a bond or other acceptable security to be held to apply as a
    28  credit against any unpaid balances or to carry out any
    29  unfulfilled conditions, the moneys of said bonds or securities
    30  shall accrue to the benefit of the Department of Energy insofar
    19870H0049B0052                 - 17 -

     1  as necessary to indemnify the department and the Commonwealth
     2  from all losses caused by failure of the contracting party to
     3  fulfill any contract condition. Moneys not required by the
     4  department to pay unpaid balances or to fulfill contract
     5  conditions shall accrue to the General Fund; Provided, however,
     6  That where the contract was awarded under clause (3) of this
     7  section, the excess moneys shall be deposited into the fund
     8  under which the contract was authorized.
     9     (6)  To see that the mining laws of the Commonwealth are
    10  faithfully executed, and, for that purpose, cause lawfully
    11  qualified mine inspectors to enter, inspect and examine any mine
    12  or colliery within this Commonwealth and the works and machinery
    13  connected therewith.
    14     (7)  To give such aid and instruction to the mine inspectors,
    15  from time to time, as may be calculated to protect the health
    16  and promote the safety of all persons employed in and about the
    17  mines.
    18     (8)  To make such examinations and investigations as may be
    19  necessary to enable it to make recommendations upon any matters
    20  pertaining to the general welfare of coal miners and others
    21  connected with mining and the interests of mine owners and
    22  operators in this Commonwealth.
    23     (9)  To seal or close or backfill abandoned deep or strip
    24  coal mines, to plug abandoned oil and gas wells, other than
    25  those governed by the act of December 19, 1984 (P.L.1140,
    26  No.223), known as the "Oil and Gas Act," to fill voids in
    27  abandoned coal mines, to drill bore holes, dig ditches or
    28  construct flumes which would relieve flooding or hazardous
    29  conditions caused by mine water, and to extinguish fires in
    30  abandoned coal mines and in culm banks, in those instances where
    19870H0049B0052                 - 18 -

     1  such work is in the interest of the public welfare.
     2     (10)  To administer the laws and regulations of the
     3  Commonwealth relating to the drilling and operation of oil and
     4  gas wells and gas storage reservoirs.
     5     (11)  To administer the laws and regulations of the
     6  Commonwealth which regulate: (i) the construction operation and
     7  maintenance of dams, water obstructions or encroachments for
     8  hydraulic and hydroelectric power; (ii) stream raising and steam
     9  condensation reservoirs; and (iii) any dam, impoundment,
    10  embankment and other water obstruction and encroachment
    11  necessary for the extraction, recovery or processing of metallic
    12  and nonmetallic ore, oil, gas and other minerals.
    13     (12)  To request and receive, from any Commonwealth agency,
    14  department, board, bureau or commission, any assistance and data
    15  required to carry out the purposes of this article. The
    16  department is hereby authorized, with the approval of the
    17  Governor, to enter into memorandums of understanding,
    18  cooperative agreements or contracts to achieve such end and to
    19  cooperate in the activities of and with such Commonwealth
    20  agency, department, board, bureau or commission and the Federal
    21  Government or any appropriate agency thereof.
    22     (13)  To formulate, adopt and promulgate such rules and
    23  regulations necessary for the proper performance of the work of
    24  the department, and continue to exercise any power to formulate,
    25  adopt and promulgate rules and regulations relating to any
    26  matter within the jurisdiction of the department heretofore
    27  vested in the Environmental Quality Board or other departments
    28  and boards; and any such rules or regulations promulgated prior
    29  to the effective date of this act shall be the rules and
    30  regulations of the Department of Energy until such time as they
    19870H0049B0052                 - 19 -

     1  are modified, repealed, suspended, superseded or otherwise
     2  changed by the Department of Energy.
     3     Section 1903-B.  Review of Regulations.--Any rule,
     4  regulation, policy or procedure pertaining to matters within the
     5  jurisdiction of the department in effect on the effective date
     6  of this amendatory act shall be reviewed by the Secretary of
     7  Energy on the written request of a person substantially affected
     8  by the rule, regulation, policy or procedure. The secretary
     9  shall initiate a review within thirty (30) days of receipt of
    10  the request and issue a decision, in writing, within ninety (90)
    11  days of receipt of the request to retain, modify or suspend and
    12  the reasons therefor.
    13     Section 1904-B.  Division of Administrative Hearings.--(a)
    14  There is hereby created a Division of Administrative Hearings in
    15  the Office of Attorney General.
    16     (b)  The division shall have the power and it duties shall be
    17  to hold hearings and issue adjudications under Title 2 of the
    18  Pennsylvania Consolidated Statutes (relating to administrative
    19  law and procedure), on any decision or action of the department,
    20  including, but not limited to: notice of violation, penalty
    21  assessment, order, permit, license, or the whole or part of a
    22  rule or equivalent. A decision or action shall be considered
    23  final when reduced to writing, whether affirmative, negative,
    24  injunctive or declaratory in form.
    25     (c)  The division shall continue to exercise any power to
    26  hold hearings and issue adjudications relating to any matter
    27  within the jurisdiction of the department heretofore vested in
    28  the Environmental Hearing Board.
    29     (d)  Anything in any law to the contrary notwithstanding, any
    30  action of the department may be taken initially without regard
    19870H0049B0052                 - 20 -

     1  to the provisions of Title 2 of the Pennsylvania Consolidated
     2  Statutes, but no such action of the department adversely
     3  affecting any person shall be final as to such person until such
     4  person has had the opportunity to appeal such action to the
     5  division: Provided, however, That any such action shall be final
     6  as to any person who has not perfected his appeal in the manner
     7  hereinafter specified.
     8     (e)  An appeal taken to the division from a decision of the
     9  department shall not act as a supersedeas, but upon cause shown
    10  and where the circumstances require it, the department or the
    11  board shall have the power to grant a supersedeas.
    12     (f)  Hearings of the division shall be conducted in
    13  accordance with rules and regulations adopted by the Office of
    14  the Attorney General, and such rules and regulations shall
    15  include time limits for the taking of appeals, procedures for
    16  the taking of appeals, locations at which hearings shall be held
    17  and such other rules and regulations as may be determined
    18  advisable.
    19     (g)  The Attorney General shall employ hearing examiners,
    20  knowledgeable of the laws of the Commonwealth, and such other
    21  personnel as are necessary to perform the duties prescribed
    22  herein: Provided, however, That the number of examiners employed
    23  shall be sufficient to provide timely and expeditious hearings
    24  at each office of the department.
    25     (h)  The division shall have the power to subpoena witnesses,
    26  records and papers; and upon certification to it of failure to
    27  obey any such subpoena, the Commonwealth Court is empowered,
    28  after hearing, to enter, when proper, an adjudication of
    29  contempt and such other order as the circumstances require.
    30     Section 1905-B.  Energy Research and Development Board.--(a)
    19870H0049B0052                 - 21 -

     1  The Energy Research and Development Board shall have the
     2  responsibility for developing a master energy policy and plan
     3  for the Commonwealth.
     4     (b)  The board shall assist and provide advice to the
     5  Secretary of Energy, and the secretary shall work with and
     6  receive advice from the board in the development of energy
     7  programs for the Commonwealth.
     8     (c)  The functions of the board shall include, but not be
     9  limited to:
    10     (1)  Providing liaison among energy producers, labor
    11  organizations, academia and agencies of the United States and
    12  the Commonwealth.
    13     (2)  Providing coordination and oversight of energy research
    14  programs being conducted at colleges and universities located
    15  within this Commonwealth and, where possible, in the private
    16  sector.
    17     (3)  Recommending research and demonstration, through pilot
    18  projects, of technological developments which enhance the
    19  production and use of Pennsylvania coals and the more efficient
    20  combustion of all fossil fuels.
    21     (4)  Assisting the Secretary of Energy in developing
    22  environmentally sound, cost-effective energy regulatory programs
    23  and the policies and procedures to implement such programs.
    24     Section 1906-B.  Mine Inspectors.--Subject to any
    25  inconsistent provisions contained in this act, anthracite mine
    26  inspectors and bituminous mine inspectors shall, respectively,
    27  under the direction of the Secretary of Energy, continue to
    28  exercise the powers and perform the duties vested in and imposed
    29  upon them by law.
    30     Section 1907-B.  Conflict of Interest in Mining and Oil and
    19870H0049B0052                 - 22 -

     1  Gas Regulation.--(a)  No employe of the Department of Energy
     2  performing any function or duty within the scope of activities
     3  covered by the Surface Mining Control and Reclamation Act of
     4  1977 (Public Law 95-87 30 U.S.C. § 1201 et seq.) shall have a
     5  direct or indirect financial interest in any underground or
     6  surface coal mining operation as defined by this act. Whoever
     7  knowingly violates the provisions of this subsection shall, upon
     8  conviction, be punished by a fine of not more than two thousand
     9  five hundred dollars ($2,500) or by imprisonment of not more
    10  than one (1) year, or both. Rules and regulations shall be
    11  promulgated hereunder to establish methods by which the
    12  provisions of this subsection will be monitored and enforced by
    13  the Department of Energy, including, but not limited to,
    14  appropriate provisions for the filing by such employes and the
    15  review of statements and supplements thereto concerning any
    16  financial interest which may be affected by this subsection.
    17     (b)  No employe of the Department of Energy performing the
    18  function or duty of an oil or gas inspector shall act as a
    19  manager, employe or agent of any oil or gas drilling operation
    20  or of any mining or mining operation, nor shall he be interested
    21  in any pecuniary way in such operations in this Commonwealth.
    22  Whoever knowingly violates the provisions of this subsection
    23  shall, upon conviction, be punished by a fine of not more than
    24  two thousand five hundred dollars ($2,500) or by imprisonment of
    25  not more than one (1) year, or both. Rules and regulations shall
    26  be promulgated hereunder to establish methods by which the
    27  provisions of this subsection will be monitored and enforced by
    28  the Department of Energy, including, but not limited to,
    29  appropriate provisions for the filing by such employes and the
    30  review of statements and supplements thereto concerning any
    19870H0049B0052                 - 23 -

     1  financial interest which may be affected by this subsection.
     2     Section 1908-B.  Salary of Secretary of Energy.--The
     3  Secretary of Energy shall receive an annual salary, payable in
     4  equal semi-monthly installments, of sixty-five thousand dollars
     5  ($65,000).
     6     Section 13.  (a)  The following are transferred to the
     7  Department of Energy:
     8         (1)  All bureaus, divisions and government units, or
     9     portions thereof, in the Department of Environmental
    10     Resources concerned with the function relating to any matter
    11     within the jurisdiction of the Department of Energy.
    12         (2)  All bureaus, divisions and government units, or
    13     portions thereof, in the Department of Commerce responsible
    14     for the functions enumerated in section 2501-B(c), (d) and
    15     (e) of the act.
    16     (b)  All personnel, allocations, appropriations, equipment,
    17  files, records, contracts, agreements, obligations and other
    18  materials which are used, employed or expended in connection
    19  with the powers, duties or functions transferred by this act to
    20  the Department of Energy are hereby transferred to the
    21  Department of Energy with the same force and effect as if the
    22  appropriations had been made to and said items had been the
    23  property of the Department of Energy in the first instance and
    24  as if said contracts, agreements and obligations had been
    25  incurred or entered into by said Department of Energy.
    26     (c)  The personnel, appropriations, equipment and other items
    27  and material transferred by this section shall include an
    28  appropriate portion of the general administrative, overhead and
    29  supporting personnel, appropriations, equipment and other
    30  material of the agency and shall also include, where applicable,
    19870H0049B0052                 - 24 -

     1  Federal grants and funds and other benefits from any Federal
     2  program.
     3     (d)  All personnel transferred pursuant to this act shall
     4  retain any civil service employment status assigned to said
     5  personnel.
     6     Section 14.  All positions in the Department of Energy shall
     7  be deemed to be included in the list of positions set forth in
     8  section 13(d) of the act of August 5, 1941 (P.L.752, No.286),
     9  known as the Civil Service Act, and the provisions and benefits
    10  of that act shall be applicable to the employees of, and
    11  positions in, the department.
    12     Section 15.  Whenever the Secretary of Environmental
    13  Resources shall be entitled by law to serve on a board,
    14  commission or other body relating to any matter within the
    15  jurisdiction of the department, the Secretary of Energy shall
    16  serve in his place as if the Secretary of Energy had been
    17  designated to serve in the first instance.
    18     Section 16.  All orders, permits, regulations, decisions and
    19  other actions of the Department of Environmental Resources or
    20  any department, board, commission or agency whose functions have
    21  been transferred by this act to the Department of Energy shall
    22  remain in full force and effect until modified, repealed,
    23  superseded or otherwise changed by appropriate action of the
    24  Department of Energy.
    25     Section 17.  All acts and parts of acts are repealed insofar
    26  as they are inconsistent with this act.
    27     Section 18.  Nothing in this amendatory act shall be
    28  construed to abrogate or modify the power and jurisdiction of
    29  the Department of Environmental Resources to administer the laws
    30  of this Commonwealth except as provided in this amendatory act.
    19870H0049B0052                 - 25 -

     1     Section 19.  This act shall take effect in 180 days.




















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