1Amending the act of June 28, 1995 (P.L.89, No.18), entitled "An
2act creating the Department of Conservation and Natural
3Resources consisting of certain functions of the Department
4of Environmental Resources and the Department of Community
5Affairs; renaming the Department of Environmental Resources
6as the Department of Environmental Protection; defining the
7role of the Environmental Quality Board in the Department of
8Environmental Protection; making changes to responsibilities
9of the State Conservation Commission and the Department of
10Agriculture; transferring certain powers and duties to the
11Department of Health; and repealing inconsistent acts,"
12further providing for forests.

13The General Assembly of the Commonwealth of Pennsylvania
14hereby enacts as follows:

15Section 1. Section 302(b)(11) of the act of June 28, 1995
16(P.L.89, No.18), known as the Conservation and Natural Resources
17Act, is amended and subsection (a) is amended by adding
18paragraphs to read:

19Section 302. Forests.

20(a) Acquisition, establishment and disposition.--The
21department has the following powers and duties with respect to
22the acquisition, establishment and disposition of State forest
23lands and certain other Commonwealth-owned resources:

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2(14) Prior to entering into any agreement, contract or
3lease to recover natural gas from unconventional formations
4with unconventional wells on lands underlying State forests
5or parks, to hold at least one public hearing in advance of
6awarding any agreement, contract or lease. The public hearing
7shall be held pursuant to public notice and advertised once a
8week for three weeks in at least two newspapers published
9nearest the locality indicated. If, after the public hearing
10held upon the proposed agreement, contract or lease, the
11proposed agreement, contract or lease is substantially
12revised, the department shall hold another public hearing
13pursuant to public notice, before proceeding to act on the
14agreement, contract or lease.

15(15) Prior to entering into any agreement, contract or
16lease for the recovery of natural gas where the Commonwealth
17does not own the natural gas underlying those lands, and
18after the public hearing held pursuant to paragraph (14), if
19the department finds that because of the land's unique
20environmental, natural, historical or cultural features, the
21land is especially worthy of permanent preservation to
22attempt to acquire ownership of any rights necessary to
23permanently preserve the land. In fulfilling the obligations
24of this paragraph, the department may use money in the Oil
25and Gas Lease Fund to the extent it is available.

26(b) Utilization and protection.--The department has the
27following powers and duties with respect to the utilization and
28protection of State forest lands:

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30(11) To lease, with the approval of the Governor, and in

1cooperation with the Department of [Commerce] Community and 
2Economic Development, those State forest lands acquired by
3gift from Pennsylvania State University or by acquisition
4from the Curtiss-Wright Corporation which are located at
5Quehanna, Pennsylvania, or recovered through the termination
6of a lease with Curtiss-Wright Corporation relating to
7Quehanna, Pennsylvania, and upon which are erected certain
8industrial buildings constructed by the Curtiss-Wright
9Corporation for industrial or economic development purposes
10or for nuclear reactor safety zone purposes. Such leases may
11be made with industrial tenants or nonprofit industrial
12development corporations. The department in securing tenants
13shall cooperate fully with the Department of [Commerce] 
14Community and Economic Development. Every such lease entered
15into shall conform in general to the terms of the standard
16industrial lease used by the department and approved by the
17General Counsel and the Attorney General. Every such lease
18shall otherwise than as in this act prescribed be upon such
19terms and conditions as the secretary considers in the best
20interests of this Commonwealth. However, all paved roads
21through the Quehanna project shall remain open to the general
22public use. Any such lease may permit the tenant to alter or
23expand, at its own expense and with the approval of the
24department first obtained in writing, existing buildings to
25meet the requirements of its particular industrial operation.
26Every such lease shall provide for the deposit of industrial
27floor space rentals and sewage and water rentals in a
28restricted revenue account from which the department may draw
29moneys for use in developing, operating and maintaining the
30water and sewage disposal facilities, and replacing

1machinery, equipment and fixtures appurtenant thereto, at
2aforesaid Quehanna. The restricted revenue account shall be
3audited two years from the effective date of this act and at
4two-year intervals thereafter, with any residue appearing in
5the account at the end of each auditing period to be
6deposited in the General Fund. The department is hereby
7authorized to indemnify and hold harmless PermaGrain
8Products, Inc., from and against any and all damages incurred
9by PermaGrain Products, Inc., related to personal injury or
10property damage, resulting from radioactive contamination
11arising exclusively from performance by this Commonwealth or
12its contractors of the characterization, remediation,
13decontamination and removal of radioactive materials from
14contaminated structures on those State forest lands acquired
15from the Pennsylvania State University or Curtiss-Wright
16Corporation and located at Quehanna, Pennsylvania.

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18Section 2. This act shall take effect in 60 days.