THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY PICKETT, MAJOR, MAHER, BOYD, FLECK, GINGRICH, HESS, MILLARD, OBERLANDER, SAYLOR, VULAKOVICH AND MILLER, FEBRUARY 9, 2011

REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS, FEBRUARY 9, 2011  

AN ACT

Amending the act of December 19, 1974 (P.L.973, No.319),

entitled "An act prescribing the procedure under which an

owner may have land devoted to agricultural use, agricultural

reserve use, or forest reserve use, valued for tax purposes

at the value it has for such uses, and providing for

reassessment and certain interest payments when such land is

applied to other uses and making editorial changes," further

providing for utilization of land or conveyance of rights for

exploration or extraction of gas, oil or coal bed methane.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 6(c.1) of the act of December 19, 1974

(P.L.973, No.319), known as the Pennsylvania Farmland and Forest

Land Assessment Act of 1974, added October 27, 2010 (P.L.866,

No.88), is amended to read:

Section 6.  Split-off, Separation or Transfer; Leasing for

Wireless Service; Utilization of Land or Conveyance of Rights

for Exploration or Extraction of Gas, Oil or Coal Bed Methane;

Utilization of Land for Commercial Alternative Energy

Generation; Death of Landowner; Temporary Leases.--* * *

(c.1)  The following apply:

(1)  Land subject to preferential assessment may be leased or

otherwise devoted to the exploration for and removal of gas and

oil, including the extraction of coal bed methane, and the

development of appurtenant facilities, including new roads and

bridges, pipelines and other buildings or structures, related to

exploration for and removal of gas and oil and the extraction of

coal bed methane.

(2)  Portions of land subject to preferential assessment may

be used for exploration for and removal of gas and oil,

including the extraction of coal bed methane, and the

development of appurtenant facilities, including new roads and

bridges, pipelines and other buildings or structures, related to

those activities.

(3)  Roll-back taxes shall be imposed upon those portions of

land actually devoted to activities set forth in paragraph (2),

excluding land devoted to subsurface transmission or gathering

lines, which shall not be subject to roll-back tax. The portion

of land subject to roll-back tax shall be the [restored well

site and] land which is incapable of being immediately used for

the agricultural use, agricultural reserve or forest reserve

activities required under section 3, as [measured from the]

determined when a well [site restoration] production report 

[approved by] is first due to the Department of Environmental

Protection as required by section 212 of the act of December 19,

1984 (P.L.1140, No.223), known as the "Oil and Gas Act," and 25

Pa. Code [78.65 (relating to site restoration)] § 78.121

(relating to annual production report) or its subsequent

version. A copy of this report shall be [submitted] provided by

the Department of Environmental Protection to the county

assessor within ten days of its [approval] submission. The fair

market value of the [restored well site and] land which is

incapable of being immediately used for the agricultural use,

agricultural reserve or forest reserve activities required under

section 3 shall be adjusted retroactively to the date a permit 

was approved under section 201 of [the act of December 19, 1984

(P.L.1140, No.223), known as] the "Oil and Gas Act." The tax

calculated based on the adjusted fair market value shall be due

and payable in the tax year immediately following the year in

which a well production report is provided to the county

assessor. Roll-back taxes shall become due upon the [filing of

the approved well site restoration] receipt of a well production 

report [with] by the county assessor. The utilization of a

portion of land for activities set forth in paragraph (2) shall

not invalidate the preferential assessment of the land which is

not so utilized and the land shall continue to receive 

preferential assessment if it continues to meet the requirements

of section 3.

(4)  Notwithstanding paragraph (3), no roll-back tax shall be

imposed upon a landowner for activities related to the

exploration for or removal of oil or gas, including the

extraction of coal bed methane, conducted by parties other than

the landowner that hold the rights to conduct such activities

pursuant to an instrument, conveyance or other vesting of the

rights if the transfer of the rights occurred:

(i)  before the land was enrolled for preferential assessment

under this act; and

(ii)  before the effective date of this section.

* * *

Section 2.  This act shall take effect immediately.