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| PRIOR PRINTER'S NO. 352 | PRINTER'S NO. 1162 |
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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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| SENATOR M. WHITE, ENVIRONMENTAL RESOURCES AND ENERGY, AS AMENDED, MAY 3, 2011 |
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| AN ACT |
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1 | Providing for indigenous mineral resource development; and |
2 | 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 | "Mineral resources." Coal, oil, natural gas, coal bed |
16 | methane, limestone and other valuable minerals. |
17 | "Right-of-way." Includes: |
18 | (1) a right of passage and haulage for a lawful purpose; |
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1 | (2) a right of flowage or transmission for a lawful |
2 | purpose; or |
3 | (3) the construction, operation and maintenance of |
4 | infrastructure necessary to facilitate a lawful purpose. |
5 | "State-owned land." Land owned by the Commonwealth. The term |
6 | does not include land owned and administered by the Department |
7 | of Conservation and Natural Resources, the Pennsylvania Fish and |
8 | Boat Commission or the Pennsylvania Game Commission. |
9 | "State system land." Land owned by the State System of | <-- |
10 | Higher Education or controlled by the State System of Higher |
11 | Education pursuant to a memorandum of understanding approved by |
12 | the Department of General Services. |
13 | "System." The State System of Higher Education of the |
14 | Commonwealth. |
15 | Section 3. Development of mineral resources on State-owned |
16 | land. |
17 | (a) Authority.--The department has the following powers: |
18 | (1) To make and execute contracts or leases in the name |
19 | of the Commonwealth for the mining or removal of valuable |
20 | mineral resources which may be found in or beneath State- |
21 | owned land and to convey Commonwealth rights to mineral | <-- |
22 | resources. |
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 | as to interfere with its usual and orderly |
28 | administration; and |
29 | (ii) the interests of the Commonwealth or its |
30 | citizens will be promoted by the grant. |
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1 | (b) Advertising.--A proposed contract or lease of mineral | <-- |
2 | (b) Advertising.-- | <-- |
3 | (1) A proposed contract, lease or conveyance of mineral |
4 | resources exceeding $1,000 in value must be advertised once a |
5 | week for three weeks, in at least two newspapers of general |
6 | circulation published nearest the locality indicated, in |
7 | advance of awarding the contract or lease. |
8 | (2) If the proposed conveyance of the mineral resources | <-- |
9 | is included in the proposed conveyance of the real property |
10 | to which it is attached, the department shall comply with the |
11 | advertising requirements for the conveyance of the real |
12 | property. |
13 | (c) Bidding.-- |
14 | (1) Except as set forth in paragraph (2) paragraphs (2) | <-- |
15 | and (3), contracts and, leases and conveyances shall be | <-- |
16 | awarded to the highest and best bidder. |
17 | (2) The requirement for competitive bidding may be |
18 | waived if the Commonwealth owns a fractional interest in the |
19 | mineral resources in or beneath State-owned land; and the |
20 | department may enter into a contract to lease that fractional |
21 | interest, with the approval of the Governor and upon terms |
22 | and conditions the department deems to be in the best |
23 | interest of the Commonwealth. |
24 | (3) If a proposed conveyance of the mineral resources is | <-- |
25 | included in the proposed conveyance of the real property to |
26 | which it is attached, the award shall be made to the selected |
27 | buyer of the real property. |
28 | (d) Bond.--A party that enters into a contract or lease |
29 | under this section must provide a bond satisfactory to the |
30 | department for the proper performance of the contract or lease. |
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1 | Section 4. Deposit of revenue. | <-- |
2 | Payments or royalties received by the department pursuant to |
3 | a contract or lease under this act shall be deposited into the |
4 | Environmental Stewardship Fund. |
5 | Section 4. Development of mineral resources on State system | <-- |
6 | land. |
7 | (a) Authority.--The system has the following powers: |
8 | (1) To make and execute contracts or leases in the name |
9 | of the Commonwealth for the mining or removal of valuable |
10 | mineral resources which may be found in or beneath State |
11 | system land. |
12 | (2) To grant a right-of-way through State system land to |
13 | any individual or corporation that applies if the system |
14 | determines that: |
15 | (i) The grant will not so adversely affect the land |
16 | as to interfere with its usual and orderly |
17 | administration. |
18 | (ii) The interests of the Commonwealth or its |
19 | citizens will be promoted by the grant. |
20 | (b) Advertising.--A proposed contract or lease of mineral |
21 | resources exceeding $1,000 in value must be advertised for three |
22 | weeks on the system's publicly accessible Internet website and |
23 | at least once a week for three weeks, in at least two newspapers |
24 | of general circulation published nearest the locality indicated, |
25 | in advance of awarding the contract or lease. |
26 | (c) Bidding.-- |
27 | (1) Except as set forth in paragraph (2), contracts and |
28 | leases shall be awarded to the highest and best bidder. |
29 | (2) The requirement for competitive bidding may be |
30 | waived if the Commonwealth owns a fractional interest in the |
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1 | mineral resources in or beneath State system land and the |
2 | system may enter into a contract to lease that fractional |
3 | interest, with the approval of the Governor and upon terms |
4 | and conditions the system deems to be in the best interest of |
5 | the Commonwealth. |
6 | (d) Bond.--A party that enters into a contract or lease |
7 | under this section must provide a bond satisfactory to the |
8 | system for the proper performance of the contract or lease. |
9 | Section 5. Deposit of revenue. |
10 | (a) Payments received by department.--Not less than 50% of |
11 | payments or royalties received by the department pursuant to a |
12 | contract or lease under this act shall be deposited into the |
13 | Environmental Stewardship Fund or the Keystone Recreation, Park |
14 | and Conservation Fund. The remaining payments received by the |
15 | department shall be deposited into the General Fund. |
16 | (b) Payments derived by system.--All payments or royalties |
17 | derived from any lease entered into by the system shall be |
18 | deposited in the Keystone Recreation, Park and Conservation |
19 | Fund. |
20 | Section 6. Condition relating to surplus property. |
21 | Notwithstanding the provisions of section 2405-A(6) of the |
22 | act of April 9, 1929 (P.L.177, No.175), known as The |
23 | Administrative Code of 1929, the department may convey all oil, |
24 | gas and mineral rights to the purchaser of surplus Commonwealth |
25 | real property along with the conveyance of the surplus real |
26 | property when done so in accordance with this act. |
27 | Section 10 7. Effective date. | <-- |
28 | This act shall take effect immediately. |
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