| HOUSE AMENDED |
| PRIOR PRINTER'S NOS. 352, 1162, 1581, 1670, 1718, 2209 | PRINTER'S NO. 2327 |
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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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| AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 25, 2012 |
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| AN ACT |
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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 |
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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 State system land or land owned and | <-- |
6 | administered by the Department of Conservation and Natural |
7 | Resources, the Pennsylvania Fish and Boat Commission or the |
8 | 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 resources on State-owned land. |
16 | (a) Authority.--The department has the following powers: |
17 | (1) To make and execute contracts or leases in the name |
18 | of the Commonwealth for the mining or removal of valuable |
19 | coal, oil, natural gas, coal bed methane, limestone and | <-- |
20 | mineral resources and limestone which may be found in or | <-- |
21 | beneath State-owned land and to convey Commonwealth rights to |
22 | coal, oil, natural gas, coal bed methane, limestone and | <-- |
23 | mineral resources and limestone. | <-- |
24 | (2) To grant a right-of-way through State-owned land to |
25 | any individual or corporation that applies if the department |
26 | determines that: | <-- |
27 | (i) the grant will not so adversely affect the land |
28 | determines that the grant will not so adversely affect | <-- |
29 | the land as to interfere with its usual and orderly |
30 | administration; and | <-- |
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1 | (ii) the interests of the Commonwealth or its |
2 | citizens will be promoted by the grant. administration. | <-- |
3 | (3) To cooperate with, consult with or delegate to the | <-- |
4 | Department of Conservation and Natural Resources, pursuant to | <-- |
5 | its authority in the act of June 28, 1995 (P.L.89, No.18), |
6 | known as the Conservation and Natural Resources Act, in |
7 | carrying out the provisions of this act. |
8 | (b) Advertising.-- |
9 | (1) A proposed contract, lease or conveyance of coal, |
10 | oil, natural gas, coal bed methane, limestone and mineral | <-- |
11 | resources and limestone exceeding $1,000 in value must be | <-- |
12 | advertised once a week for three weeks, in at least two |
13 | newspapers of general circulation published nearest the |
14 | locality indicated, in advance of awarding the contract or |
15 | lease. |
16 | (2) If the proposed conveyance is included in the |
17 | proposed conveyance of the real property to which it is |
18 | attached, the department shall comply with the advertising |
19 | requirements for the conveyance of the real property. |
20 | (c) Bidding.-- |
21 | (1) Except as set forth in paragraphs (2) and (3), |
22 | contracts, leases and conveyances shall be awarded to the |
23 | highest and best bidder. If title to the property has already |
24 | been conveyed, but the Commonwealth has reserved the right to |
25 | coal, oil, natural gas, coal bed methane, limestone or | <-- |
26 | mineral resources or limestone, the Commonwealth may convey | <-- |
27 | the resources to the owner of the fee without bidding. |
28 | (2) The requirement for competitive bidding may be |
29 | waived if the Commonwealth owns a fractional interest in the |
30 | coal, oil, natural gas, coal bed methane, limestone or | <-- |
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1 | mineral resources or limestone in or beneath State-owned | <-- |
2 | land; and the department may enter into a contract to lease |
3 | that fractional interest, with the approval of the Governor |
4 | and upon terms and conditions the department deems to be in |
5 | the best interest of the Commonwealth. |
6 | (3) If a proposed conveyance under this section is |
7 | included in the proposed conveyance of the real property to |
8 | which it is attached, the award shall be made to the selected |
9 | buyer of the real property. |
10 | (d) Bond.--A party that enters into a contract or lease |
11 | under this section must provide a bond satisfactory to the |
12 | department for the proper performance of the contract or lease. |
13 | Section 4. Development of resources on State system land. |
14 | (a) Authority.--The department has the following powers: |
15 | (1) To make and execute contracts or leases in the name |
16 | of the Commonwealth for the mining or removal of valuable |
17 | coal, oil, natural gas, coal bed methane, limestone and | <-- |
18 | mineral resources and limestone which may be found in or | <-- |
19 | beneath State system land. |
20 | (2) To grant a right-of-way through State system land to |
21 | any individual or corporation that applies if the system |
22 | determines that: | <-- |
23 | (i) the grant will not so adversely affect the land |
24 | determines that the grant will not so adversely affect | <-- |
25 | the land as to interfere with its usual and orderly |
26 | administration; and | <-- |
27 | (ii) the interests of the Commonwealth or its |
28 | citizens will be promoted by the grant. Administration. | <-- |
29 | (3) To cooperate with, consult with or delegate to the |
30 | Department of Conservation and Natural Resources, pursuant to | <-- |
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1 | its authority in the act of June 28, 1995 (P.L.89, No.18), |
2 | known as the Conservation and Natural Resources Act, in |
3 | carrying out the provisions of this act. |
4 | (a.1) Limitations.--The department may not make or execute a | <-- |
5 | contract or lease under subsection (a)(1) unless the president |
6 | of the system university affected by the contract or lease has |
7 | provided the department with written authorization to proceed |
8 | with negotiating a contract or lease. |
9 | (b) Advertising.--A proposed contract or lease under this |
10 | act that exceeds $1,000 in value must be advertised for three |
11 | weeks on the system's publicly accessible Internet website and |
12 | at least once a week for three weeks, in at least two newspapers |
13 | of general circulation published nearest the locality indicated, |
14 | in advance of awarding the contract or lease. |
15 | (c) Bidding.-- |
16 | (1) Except as set forth in paragraph (2), contracts and |
17 | leases shall be awarded to the highest and best bidder. |
18 | (2) The requirement for competitive bidding may be |
19 | waived if the Commonwealth owns a fractional interest in the |
20 | mineral resources in or beneath State system land and the |
21 | department may enter into a contract to lease that fractional |
22 | interest, with the approval of the Governor and upon terms |
23 | and conditions the department deems to be in the best |
24 | interest of the Commonwealth. |
25 | (d) Bond.--A party that enters into a contract or lease |
26 | under this section must provide a bond satisfactory to the |
27 | department for the proper performance of the contract or lease. |
28 | Section 5. Deposit of revenue. |
29 | (a) Payments.-- | <-- |
30 | (1) All payments or royalties received by the department |
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1 | pursuant to a contract or lease under this act, except for a |
2 | contract or lease under section 4, in fiscal year 2011-2012 |
3 | through fiscal year 2013-2014 shall be deposited in the Oil | <-- |
4 | and Gas Lease Fund. |
5 | (2) All payments or royalties received by the department |
6 | pursuant to a contract or lease under this act, except for a |
7 | contract or lease under section 4, in fiscal year 2014-2015 |
8 | and each fiscal year thereafter shall be deposited as |
9 | follows: |
10 | (i) Twenty-five percent of payments or royalties |
11 | received by the department shall be deposited in the |
12 | Hazardous Sites Cleanup Fund. |
13 | (ii) Twenty-five percent of the payments or |
14 | royalties shall be allocated to the Pennsylvania |
15 | Infrastructure Investment Authority established under the |
16 | act of March 1, 1988 (P.L.82, No.16), known as the |
17 | Pennsylvania Infrastructure Investment Authority Act. |
18 | (iii) Twenty-five percent of the payments or |
19 | royalties shall be allocated to the H2O program |
20 | established under the act of July 9, 2008 (P.L.908, |
21 | No.63), known as the H2O PA Act. |
22 | (iv) Twenty-five percent of the payments or and | <-- |
23 | every year thereafter shall be deposited as follows: |
24 | (i) Twenty percent of the payments or royalties |
25 | shall be retained by the State agency where the coal, |
26 | oil, natural gas, coal bed methane or limestone is leased |
27 | or extracted. |
28 | (ii) All remaining payments or royalties shall be |
29 | deposited into the Oil and Gas Lease Fund. |
30 | (3) (2) The costs incurred by the department or the | <-- |
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1 | Department of Conservation and Natural Resources in |
2 | advertising and contracting, leasing or conveying the |
3 | resources, including the fees of any survey, appraisal or |
4 | report, shall be deducted from payments or royalties, and |
5 | that amount shall be an executively authorized augmentation |
6 | to the appropriation to the department or the Department of |
7 | Conservation and Natural Resources. |
8 | (a) Payments derived from State-owned land.--Notwithstanding | <-- |
9 | section 1 of the act of December 15, 1955 (P.L.865, No.256), |
10 | entitled "An act requiring rents and royalties from oil and gas |
11 | leases of Commonwealth land to be placed in a special fund to be |
12 | used for conservation, recreation, dams, and flood control; |
13 | authorizing the Secretary of Forests and Waters to determine the |
14 | need for and location of such projects and to acquire the |
15 | necessary land," all payments or royalties received by the |
16 | department pursuant to a contract or lease under section 3 in |
17 | fiscal year 2011-2012 and every year thereafter shall be |
18 | deposited as follows: |
19 | (1) Twenty percent of the payments or royalties shall be |
20 | retained by the State agency where the coal, oil, natural |
21 | gas, coal bed methane or limestone is leased or extracted. |
22 | (2) All remaining payments or royalties shall be |
23 | deposited into the Oil and Gas Lease Fund. |
24 | (b) Payments derived by system from State system land.--All | <-- |
25 | payments or royalties derived from any lease entered into under |
26 | section 4 shall be allocated as follows: |
27 | (1) Forty percent Except as provided under paragraph | <-- |
28 | (3), 40% shall be retained by the university where the coal, |
29 | oil, natural gas, coal bed methane, limestone or mineral | <-- |
30 | resource or limestone is leased or extracted and shall be | <-- |
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1 | used by the university for deferred maintenance projects or |
2 | energy efficiency or energy cost saving improvements. |
3 | (2) Sixty percent Except as provided under paragraph | <-- |
4 | (3), 60% shall be allocated to the State System of Higher |
5 | Education for distribution among those universities where no |
6 | coal, oil, natural gas, coal bed methane, limestone or | <-- |
7 | mineral resources or limestone have been leased or extracted. | <-- |
8 | The distribution formula shall be determined by the Board of |
9 | Governors of the State System of Higher Education. Funds |
10 | distributed under this paragraph shall only be used for |
11 | deferred maintenance or energy efficiency or energy cost |
12 | saving improvements. |
13 | (3) Fifteen percent of the funds distributed under | <-- |
14 | paragraphs (1) and (2) shall be used exclusively for tuition |
15 | reduction. |
16 | (c) Executively authorized augmentations.--The costs |
17 | incurred by the department or the Department of Conservation and |
18 | Natural Resources in advertising and contracting, leasing or |
19 | conveying the resources, including the fees of any survey, |
20 | appraisal or report, shall be deducted from payments or |
21 | royalties and that amount shall be an executively authorized |
22 | augmentation to the appropriation to the department or the |
23 | Department of Conservation and Natural Resources. |
24 | Section 6. Condition relating to surplus property. |
25 | Notwithstanding the provisions of section 2405-A(6) of the |
26 | act of April 9, 1929 (P.L.177, No.175), known as The |
27 | Administrative Code of 1929, the department may convey all oil, | <-- |
28 | gas and mineral coal, oil, natural gas, coal bed methane and | <-- |
29 | limestone rights to the purchaser of surplus Commonwealth real |
30 | property along with the conveyance of the surplus real property |
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1 | when done so in accordance with this act. |
2 | Section 30 7. Effective date. | <-- |
3 | This act shall take effect immediately. |
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