SENATE AMENDED

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

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

SENATOR CORMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS AMENDED, JUNE 21, 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 definitions, for land devoted to agricultural

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use, agricultural reserve, and/or forest reserve AND 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

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(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 1.  The definition of "agricultural use" in section 2

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

Pennsylvania Farmland and Forest Land Assessment Act of 1974,

amended November 23, 2010 (P.L.1095, No.109), is amended and the

section is amended by adding a definition to read:

Section 2.  Definitions.--As used in this act, the following

words and phrases shall have the meanings ascribed to them in

this section unless the context obviously otherwise requires:

* * *

"Agricultural use."  Land which is used for the purpose of

producing an agricultural commodity or is devoted to and meets

the requirements and qualifications for payments or other

compensation pursuant to a soil conservation program under an

agreement with an agency of the Federal Government. The term

includes:

(1)  any farmstead land on the tract;

(2)  a woodlot;

(3)  any land which is rented to another person and used for

the purpose of producing an agricultural commodity; [and]

(4)  any land devoted to the development and operation of an

alternative energy system, if a majority of the energy annually

generated is utilized on the tract[.]; and

(5)  any land devoted to composting.

* * *

"Composting."  The processing of agricultural manures into

material, products or substances useful to humankind, including

finished compost transported or tended to be transported in

commerce. The term includes any land, facilities, buildings,

structures, equipment or operations used to enhance the form,

economic value or energy value of the manure and such matter. If

materials other than manure are used as ingredients in the

composting process, the amount of those other materials by

weight shall not exceed the amount of manure used by weight. The

term shall also include other beneficial uses of such

agricultural manures, agricultural waste material and byproducts

therefrom, including methane and other digesters, such uses as

may be set forth in the duly approved nutrient management plan

for the enrolled land and such uses adopted in furtherance of

and in compliance with the environmental laws of the United

States and of this Commonwealth, including those relating to the

restoration of the Chesapeake Bay.

* * *

Section 2.  Section 3(a.1) of the act is amended by adding a

paragraph to read:

Section 3.  Land Devoted to Agricultural Use, Agricultural

Reserve, and/or Forest Reserve.--* * *

(a.1)  The following apply to enrollment:

* * *

(3)  Land enrolled as devoted to composting shall be limited

to the land actually used for composting and shall not include

adjacent land that is otherwise used.

* * *

Section 3.  Section 6(c.1) of the act, 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 4.  The amendment of section 2 of the act shall be

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applicable to any composting use already in existence that is

located upon land enrolled under the act of December 19, 1974

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

Land Assessment Act of 1974, including those composting uses

existing as of the effective date of this act for which rollback

tax may have been assessed for a composting use. Provided an

enrolled owner has filed an appeal from a decision of a county

assessor, a board of assessment appeals or a court with

jurisdiction, no rollback tax shall be due or collected from an

enrolled owner as to any composting use as composting is defined

in section 2 of the act.

Section 2 5.  This act shall take effect immediately.

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