PRINTER'S NO. 2883
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2461
Session of
2022
INTRODUCED BY OWLETT, CAUSER, PICKETT, RYAN, HENNESSEY, O'NEAL,
ROTHMAN, BERNSTINE, SMITH, KAUFFMAN, OBERLANDER, JAMES,
M. MACKENZIE, COX, HAMM, COOK, SAYLOR, STRUZZI, GROVE, MOUL
AND HERSHEY, MARCH 25, 2022
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
MARCH 25, 2022
AN ACT
Providing for the leasing of subsurface rights on State forest
and park property for oil and natural gas development; and
abrogating an executive order and other orders and
administrative policies.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Subsurface
Oil and Gas Lease Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Company." An entity doing business within this Commonwealth
and subject to tax under Article III, IV or VI of the act of
March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
1971.
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"Department." The Department of Conservation and Natural
Resources of the Commonwealth.
"Secretary." The Secretary of Conservation and Natural
Resources of the Commonwealth.
Section 3. Subsurface drilling under Commonwealth lands.
(a) Program established.--The department shall establish a
program to review submissions or nominations by companies for
the leasing of subsurface rights under State forest and park
property by companies for oil and gas development from
subsurface drilling originating from well sites outside the
State forest or park property.
(b) Lease approval.--The secretary shall have the authority
to approve or disapprove any submission or nomination for a
lease under this act. The department shall provide in writing to
a company which has sent a submission or nomination to the
department notice of the department's decision to grant or not
grant a lease within 60 days of receipt from the company. If the
department is disapproving the grant of a lease, the department
shall list all reasons why the department has made the decision
in the notification.
(c) Resubmission upon disapproval.--A company receiving
notice of disapproval may resend a submission or nomination to
the department with or without changes and may include a
response addressing the department's reasons within 60 calendar
days of receipt of the department's disapproval. The department
shall provide in writing to a company which has sent a
resubmission to the department notice of the department's
decision to grant or not grant a lease within 60 days of receipt
from the company. If the department is disapproving the grant of
a lease, the department shall list all reasons why the
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department has made the decision in the notification.
(d) Reasons for disapproval.--The department may disapprove
a submission or nomination for the following reasons:
(1) The company has environmental compliance violations
within this Commonwealth which have not been satisfactorily
addressed and which have caused a significant negative
environmental impact.
(2) Development of the tract would lead to the need for
related infrastructure development elsewhere on State forest
land which would, in the department's determination, lead to
significant negative environmental impacts.
(e) Appeal.--A company receiving notice of a disapproval of
a resubmission under subsection (c) may appeal the disapproval
to Commonwealth Court. Commonwealth Court shall consider the
factors in subsection (d) when considering an appeal.
(f) Implementation and posting.--Within 90 days of the
effective date of this section, the department shall implement
the program under subsection (a) and post information relating
to the program and instructions regarding the manner in which
submissions or nominations should be sent for review on its
publicly accessible Internet website.
(g) Submissions and nominations.--Companies may begin
sending submissions or nominations for review under this act to
the department 90 days after the effective date of this section.
Section 4. Funds.
All revenue generated from leases and royalties under this
act shall be deposited into the Oil and Gas Lease Fund.
Section 5. Construction.
Nothing in this act shall be construed to prohibit oil and
gas drilling on State forest and park property in accordance
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with the laws of this Commonwealth.
Section 6. Abrogation of executive order and other orders and
administrative policies.
This act shall abrogate Executive Order 2015-03 and any other
order or administrative policy in conflict with this act.
Section 7. Effective date.
This act shall take effect immediately.
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