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| PRIOR PRINTER'S NOS. 352,1162,1581 | PRINTER'S NO. 1670 |
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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 THIRD CONSIDERATION, OCTOBER 17, 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 | (3) To cooperate with, consult with or delegate to the | <-- |
2 | Department of Conservation and Natural Resources in carrying |
3 | out the provisions of this act. |
4 | (b) Advertising.-- |
5 | (1) A proposed contract, lease or conveyance of mineral |
6 | resources exceeding $1,000 in value must be advertised once a |
7 | week for three weeks, in at least two newspapers of general |
8 | circulation published nearest the locality indicated, in |
9 | advance of awarding the contract or lease. |
10 | (2) If the proposed conveyance of the mineral resources |
11 | is included in the proposed conveyance of the real property |
12 | to which it is attached, the department shall comply with the |
13 | advertising requirements for the conveyance of the real |
14 | property. |
15 | (c) Bidding.-- |
16 | (1) Except as set forth in paragraphs (2) and (3), |
17 | contracts, leases and conveyances shall be awarded to the |
18 | highest and best bidder. If title to the property has already | <-- |
19 | been conveyed, but the Commonwealth has reserved the right to |
20 | mineral resources, the Commonwealth may convey the mineral |
21 | resources to the owner of the fee without bidding. |
22 | (2) The requirement for competitive bidding may be |
23 | waived if the Commonwealth owns a fractional interest in the |
24 | mineral resources in or beneath State-owned land; and the |
25 | department may enter into a contract to lease that fractional |
26 | interest, with the approval of the Governor and upon terms |
27 | and conditions the department deems to be in the best |
28 | interest of the Commonwealth. |
29 | (3) If a proposed conveyance of the mineral resources is |
30 | included in the proposed conveyance of the real property to |
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1 | which it is attached, the award shall be made to the selected |
2 | buyer of the real property. |
3 | (d) Bond.--A party that enters into a contract or lease |
4 | under this section must provide a bond satisfactory to the |
5 | department for the proper performance of the contract or lease. |
6 | Section 4. Development of mineral resources on State system |
7 | land. |
8 | (a) Authority.--The department has the following powers: | <-- |
9 | (1) To make and execute contracts or leases in the name |
10 | of the Commonwealth for the mining or removal of valuable |
11 | mineral resources which may be found in or beneath State |
12 | system land. |
13 | (2) To grant a right-of-way through State system land to |
14 | any individual or corporation that applies if the system |
15 | determines that: |
16 | (i) The the grant will not so adversely affect the | <-- |
17 | land as to interfere with its usual and orderly |
18 | administration.; and | <-- |
19 | (ii) The the interests of the Commonwealth or its | <-- |
20 | citizens will be promoted by the grant. |
21 | (3) To cooperate with, consult with or delegate to the | <-- |
22 | Department of Conservation and Natural Resources in carrying |
23 | out the provisions of this act. |
24 | (b) Advertising.--A proposed contract or lease of mineral |
25 | resources exceeding $1,000 in value must be advertised for three |
26 | weeks on the system's publicly accessible Internet website and |
27 | at least once a week for three weeks, in at least two newspapers |
28 | of general circulation published nearest the locality indicated, |
29 | in advance of awarding the contract or lease. |
30 | (c) Bidding.-- |
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1 | (1) Except as set forth in paragraph (2), contracts and |
2 | leases shall be awarded to the highest and best bidder. |
3 | (2) The requirement for competitive bidding may be |
4 | waived if the Commonwealth owns a fractional interest in the |
5 | mineral resources in or beneath State system land and the | <-- |
6 | department may enter into a contract to lease that fractional | <-- |
7 | interest, with the approval of the Governor and upon terms |
8 | and conditions the department deems to be in the best | <-- |
9 | interest of the Commonwealth. |
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 5. Deposit of revenue. |
14 | (a) Payments.-- | <-- |
15 | (1) All payments or royalties received by the department |
16 | pursuant to a contract or lease under this act, except for a |
17 | contract or lease under section 4, in fiscal year 2011-2012 |
18 | through fiscal year 2013-2014 shall be deposited in the Oil |
19 | and Gas Lease Fund. |
20 | (2) All payments or royalties received by the department |
21 | pursuant to a contract or lease under this act, except for a |
22 | contract or lease under section 4, in fiscal year 2014-2015 |
23 | and each fiscal year thereafter shall be deposited as |
24 | follows: |
25 | (i) the first $50,000,000 of payments or royalties |
26 | received by the department shall be deposited in the |
27 | Hazardous Sites Cleanup Fund; and |
28 | (ii) all remaining payments or royalties shall be |
29 | deposited in the Oil and Gas Lease Fund. |
30 | (3) 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 mineral |
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 | (b) Payments derived by system.--All payments or royalties |
9 | derived from any lease entered into under section 4 shall be | <-- |
10 | allocated as follows: |
11 | (1) Forty percent shall be retained by the university |
12 | where the mineral resource is leased or extracted and shall |
13 | be used by the university for deferred maintenance projects |
14 | or energy efficiency or energy cost saving improvements. |
15 | (2) Sixty percent shall be allocated to the State System |
16 | of Higher Education for distribution among those universities |
17 | where no mineral resources have been leased or extracted. The |
18 | distribution formula shall be determined by the Board of |
19 | Governors of the State System of Higher Education. Funds |
20 | distributed under this paragraph shall only be used for |
21 | deferred maintenance or energy efficiency or energy cost |
22 | saving improvements. |
23 | Section 6. Condition relating to surplus property. |
24 | Notwithstanding the provisions of section 2405-A(6) of the |
25 | act of April 9, 1929 (P.L.177, No.175), known as The |
26 | Administrative Code of 1929, the department may convey all oil, |
27 | gas and mineral rights to the purchaser of surplus Commonwealth |
28 | real property along with the conveyance of the surplus real |
29 | property when done so in accordance with this act. |
30 | Section 7. Effective date. |
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1 | This act shall take effect immediately. |
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