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| PRIOR PRINTER'S NOS. 352, 1162, 1581, 1670 | PRINTER'S NO. 1718 |
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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 25, 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 | coal, oil, natural gas, coal bed methane, limestone and | <-- |
21 | mineral resources which may be found in or beneath State- |
22 | owned land and to convey Commonwealth rights to coal, oil, | <-- |
23 | natural gas, coal bed methane, limestone and mineral |
24 | resources. |
25 | (2) To grant a right-of-way through State-owned land to |
26 | any individual or corporation that applies if the department |
27 | determines that: |
28 | (i) the grant will not so adversely affect the land |
29 | 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. |
3 | (3) To cooperate with, consult with or delegate to the |
4 | Department of Conservation and Natural Resources in carrying |
5 | out the provisions of this act. |
6 | (b) Advertising.-- |
7 | (1) A proposed contract, lease or conveyance of coal, | <-- |
8 | oil, natural gas, coal bed methane, limestone and mineral |
9 | resources exceeding $1,000 in value must be advertised once a |
10 | week for three weeks, in at least two newspapers of general |
11 | circulation published nearest the locality indicated, in |
12 | advance of awarding the contract or lease. |
13 | (2) If the proposed conveyance of the mineral resources | <-- |
14 | is included in the proposed conveyance of the real property |
15 | to which it is attached, the department shall comply with the |
16 | advertising requirements for the conveyance of the real |
17 | property. |
18 | (c) Bidding.-- |
19 | (1) Except as set forth in paragraphs (2) and (3), |
20 | contracts, leases and conveyances shall be awarded to the |
21 | highest and best bidder. If title to the property has already |
22 | been conveyed, but the Commonwealth has reserved the right to |
23 | coal, oil, natural gas, coal bed methane, limestone or | <-- |
24 | mineral resources, the Commonwealth may convey the mineral | <-- |
25 | resources to the owner of the fee without bidding. |
26 | (2) The requirement for competitive bidding may be |
27 | waived if the Commonwealth owns a fractional interest in the |
28 | coal, oil, natural gas, coal bed methane, limestone or | <-- |
29 | mineral resources in or beneath State-owned land; and the |
30 | department may enter into a contract to lease that fractional |
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1 | interest, with the approval of the Governor and upon terms |
2 | and conditions the department deems to be in the best |
3 | interest of the Commonwealth. |
4 | (3) If a proposed conveyance of the mineral resources | <-- |
5 | under this section is included in the proposed conveyance of | <-- |
6 | the real property to which it is attached, the award shall be |
7 | made to the selected buyer of the real property. |
8 | (d) Bond.--A party that enters into a contract or lease |
9 | under this section must provide a bond satisfactory to the |
10 | department for the proper performance of the contract or lease. |
11 | Section 4. Development of mineral resources on State system | <-- |
12 | land. |
13 | (a) Authority.--The department has the following powers: |
14 | (1) To make and execute contracts or leases in the name |
15 | of the Commonwealth for the mining or removal of valuable |
16 | coal, oil, natural gas, coal bed methane, limestone and | <-- |
17 | mineral resources which may be found in or beneath State |
18 | system land. |
19 | (2) To grant a right-of-way through State system land to |
20 | any individual or corporation that applies if the system |
21 | determines that: |
22 | (i) the grant will not so adversely affect the land |
23 | as to interfere with its usual and orderly |
24 | administration; and |
25 | (ii) the interests of the Commonwealth or its |
26 | citizens will be promoted by the grant. |
27 | (3) To cooperate with, consult with or delegate to the |
28 | Department of Conservation and Natural Resources in carrying |
29 | out the provisions of this act. |
30 | (b) Advertising.--A proposed contract or lease of mineral | <-- |
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1 | resources exceeding under this act that exceeds $1,000 in value | <-- |
2 | must be advertised for three weeks on the system's publicly |
3 | accessible Internet website and at least once a week for three |
4 | weeks, in at least two newspapers of general circulation |
5 | published nearest the locality indicated, in advance of awarding |
6 | the contract or lease. |
7 | (c) Bidding.-- |
8 | (1) Except as set forth in paragraph (2), contracts and |
9 | leases shall be awarded to the highest and best bidder. |
10 | (2) The requirement for competitive bidding may be |
11 | waived if the Commonwealth owns a fractional interest in the |
12 | mineral resources in or beneath State system land and the |
13 | department may enter into a contract to lease that fractional |
14 | interest, with the approval of the Governor and upon terms |
15 | and conditions the department deems to be in the best |
16 | interest of the Commonwealth. |
17 | (d) Bond.--A party that enters into a contract or lease |
18 | under this section must provide a bond satisfactory to the |
19 | department for the proper performance of the contract or lease. |
20 | Section 5. Deposit of revenue. |
21 | (a) Payments.-- |
22 | (1) All payments or royalties received by the department |
23 | pursuant to a contract or lease under this act, except for a |
24 | contract or lease under section 4, in fiscal year 2011-2012 |
25 | through fiscal year 2013-2014 shall be deposited in the Oil |
26 | and Gas Lease Fund. |
27 | (2) All payments or royalties received by the department |
28 | pursuant to a contract or lease under this act, except for a |
29 | contract or lease under section 4, in fiscal year 2014-2015 |
30 | and each fiscal year thereafter shall be deposited as |
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1 | follows: |
2 | (i) the first $50,000,000 Twenty-five percent of | <-- |
3 | payments or royalties received by the department shall be |
4 | deposited in the Hazardous Sites Cleanup Fund. Fund; and | <-- |
5 | (ii) all remaining payments or royalties shall be |
6 | deposited in the Oil and Gas Lease Fund. |
7 | (ii) Twenty-five percent of the payments or |
8 | royalties shall be allocated to the Pennsylvania |
9 | Infrastructure Investment Authority established under the |
10 | act of March 1, 1988 (P.L.82, No.16), known as the |
11 | Pennsylvania Infrastructure Investment Authority Act. |
12 | (iii) Twenty-five percent of the payments or |
13 | royalties shall be allocated to the H2O program |
14 | established under the act of July 9, 2008 (P.L.908, |
15 | No.63), known as the H2O PA Act. |
16 | (iv) Twenty-five percent of the payments or |
17 | royalties shall be deposited into the Oil and Gas Lease |
18 | Fund. |
19 | (3) The costs incurred by the department or the |
20 | Department of Conservation and Natural Resources in |
21 | advertising and contracting, leasing or conveying the mineral | <-- |
22 | resources, including the fees of any survey, appraisal or |
23 | report, shall be deducted from payments or royalties, and |
24 | that amount shall be an executively authorized augmentation |
25 | to the appropriation to the department or the Department of |
26 | Conservation and Natural Resources. |
27 | (b) Payments derived by system.--All payments or royalties |
28 | derived from any lease entered into under section 4 shall be |
29 | allocated as follows: |
30 | (1) Forty percent shall be retained by the university |
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1 | where the coal, oil, natural gas, coal bed methane, limestone | <-- |
2 | or mineral resource is leased or extracted and shall be used |
3 | by the university for deferred maintenance projects or energy |
4 | efficiency or energy cost saving improvements. |
5 | (2) Sixty percent shall be allocated to the State System |
6 | of Higher Education for distribution among those universities |
7 | where no coal, oil, natural gas, coal bed methane, limestone | <-- |
8 | or mineral resources have been leased or extracted. The |
9 | distribution formula shall be determined by the Board of |
10 | Governors of the State System of Higher Education. Funds |
11 | distributed under this paragraph shall only be used for |
12 | deferred maintenance or energy efficiency or energy cost |
13 | saving improvements. |
14 | Section 6. Condition relating to surplus property. |
15 | Notwithstanding the provisions of section 2405-A(6) of the |
16 | act of April 9, 1929 (P.L.177, No.175), known as The |
17 | Administrative Code of 1929, the department may convey all oil, |
18 | gas and mineral rights to the purchaser of surplus Commonwealth |
19 | real property along with the conveyance of the surplus real |
20 | property when done so in accordance with this act. |
21 | Section 7 30. Effective date. | <-- |
22 | This act shall take effect immediately. |
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