1Amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated
2Statutes, in unconventional gas well fee, further providing
3for distribution of fee; in Oil and Gas Lease Fund, further 
4providing for definitions; providing for establishment and 
5projects; further providing for appropriation of money and 
6for funds; and making related repeals.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1. Section 2314(c.1) of Title 58 of the Pennsylvania
10Consolidated Statutes is amended by adding paragraphs to read:

11§ 2314. Distribution of fee.

12* * *

13(c.1) Additional distributions.--From fees collected under
14this chapter and deposited in the fund for 2011 and each year
15thereafter:

16* * *

17(7) Thirty-five million dollars to the Environmental
18Stewardship Fund beginning in 2014 and each year thereafter.

1(8) Five million dollars to the Hazardous Sites Cleanup
2Fund for 2015 and $15,000,000 beginning in 2016 and each year
3thereafter.

4* * *

5Section 2. Sections 2501, 2502, 2503, 2504 and 2505 of Title
658 are amended to read:

7§ 2501. Definitions.

8The following words and phrases when used in this chapter
9shall have the meanings given to them in this section unless the
10context clearly indicates otherwise:

11"Department." The Department of Conservation and Natural
12Resources of the Commonwealth.

13"Fund." The Oil and Gas Lease Fund.

14"Secretary." The Secretary of Conservation and Natural
15Resources.

16§ 2502. [(Reserved).] Establishment.

17(a) Rents and royalties.--Rents and royalties from an oil
18and gas lease of land owned by the Commonwealth, except for
19rents and royalties received from game and fish lands, shall be
20placed in a special fund to be known as the Oil and Gas Lease
21Fund.

22(b) Use.--The fund shall be used exclusively for specific
23geographically identifiable conservation, recreation, dams or
24flood control projects or to match Federal grants which are made
25for conservation, recreation, dams or flood control projects.
26The fund may not be used for the general operation or
27administration of the department.

28§ 2503. [(Reserved).] Projects.

29The secretary shall determine the need for and the location
30of any project authorized under this chapter. The secretary

1shall have the power to acquire, in the name of the
2Commonwealth, land as needed.

3§ 2504. Appropriation of money.

4Money in the [Oil and Gas Lease Fund] fund is specifically
5appropriated to the department as provided in this chapter.

6[§ 2505. Funds.

7(a) Priority.--Funds appropriated from the Oil and Gas Lease
8Fund to the department under the act of April 9, 1929 (P.L.343,
9No.176), known as The Fiscal Code, or other appropriation act
10shall be distributed prior to allocations under subsection (b).

11(b) Allocations.--Money in the Oil and Gas Lease Fund shall
12be allocated on an annual basis as follows:

13(1) The following amounts shall be transferred from the
14Oil and Gas Lease Fund to the Marcellus Legacy Fund for
15distribution to the Environmental Stewardship Fund:

16(i) For 2013, $20,000,000.

17(ii) For 2014 and each year thereafter, $35,000,000.

18(2) The following amounts shall be transferred from the
19Oil and Gas Lease Fund to the Marcellus Legacy Fund for
20distribution to the Hazardous Sites Cleanup Fund:

21(i) For 2015, $5,000,000.

22(ii) For 2016 and each year thereafter,
23$15,000,000.]

24Section 3. Repeals are as follows:

25(1) The General Assembly declares that the repeals under
26paragraphs (2) and (3) are necessary to effectuate the
27amendment or addition of 58 Pa.C.S. §§ 2314(c.1)(7) and (8),
282502, 2503, 2504 and 2505.

29(2) The act of December 15, 1955 (P.L.865, No.256), 
30entitled, "An act requiring rents and royalties from oil and
 

1gas leases of Commonwealth land to be placed in a special 
2fund to be used for conservation, recreation, dams, and flood 
3control; authorizing the Secretary of Forests and Waters to 
4determine the need for and location of such projects and to 
5acquire the necessary land," is repealed.

6(3) Sections 1602-E and 1603-E of the act of April 9,
71929 (P.L.343, No.176), known as The Fiscal Code, are
8repealed.

9Section 4. The amendment of 58 Pa.C.S. §§ 2502 and 2503 is a
10continuation of the act of December 15, 1955 (P.L.865, No.256), 
11entitled, "An act requiring rents and royalties from oil and gas 
12leases of Commonwealth land to be placed in a special fund to be 
13used for conservation, recreation, dams, and flood control; 
14authorizing the Secretary of Forests and Waters to determine the 
15need for and location of such projects and to acquire the 
16necessary land." Except as otherwise provided in 58 Pa.C.S. §§ 
172502 and 2503, all activities initiated under Act 256 of 1955
18shall continue and remain in full force and effect and may be
19completed under 58 Pa.C.S. §§ 2502 and 2503. Orders,
20regulations, rules and decisions which were made under Act 256
21of 1955 and which are in effect on the effective date of section
223(2) of this act shall remain in full force and effect until
23revoked, vacated or modified under 58 Pa.C.S. §§ 2502 and 2503.
24Contracts, obligations and collective bargaining agreements
25entered into under Act 256 of 1955 are not affected nor impaired
26by the repeal of Act 256 of 1955.

27Section 5. This act shall take effect in 60 days.