THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY D. WHITE, BROWNE, TOMLINSON, WAUGH, M. WHITE, WOZNIAK, EARLL, GREENLEAF AND SCARNATI, FEBRUARY 1, 2011

REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, FEBRUARY 1, 2011  

AN ACT

Providing for indigenous mineral resource development; and

imposing powers and duties on the Department of General

Services.

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 Indigenous

Mineral Resources Development 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:

"Department."  The Department of General Services of the

Commonwealth.

"Mineral resources."  Coal, oil, natural gas, coal bed

methane, limestone and other valuable minerals.

"Right-of-way."  Includes:

(1)  a right of passage and haulage for a lawful purpose;

(2)  a right of flowage or transmission for a lawful

purpose; or

(3)  the construction, operation and maintenance of

infrastructure necessary to facilitate a lawful purpose.

"State-owned land."  Land owned by the Commonwealth. The term

does not include land owned and administered by the Department

of Conservation and Natural Resources, the Pennsylvania Fish and

Boat Commission or the Pennsylvania Game Commission.

Section 3.  Development of mineral resources on State-owned

land.

(a)  Authority.--The department has the following powers:

(1)  To make and execute contracts or leases in the name

of the Commonwealth for the mining or removal of valuable

mineral resources which may be found in or beneath State-

owned land.

(2)  To grant a right-of-way through State-owned land to

any individual or corporation that applies if the department

determines that:

(i)  the grant will not so adversely affect the land

as to interfere with its usual and orderly

administration; and

(ii)  the interests of the Commonwealth or its

citizens will be promoted by the grant.

(b)  Advertising.--A proposed contract or lease of mineral

resources exceeding $1,000 in value must be advertised once a

week for three weeks, in at least two newspapers of general

circulation published nearest the locality indicated, in advance

of awarding the contract or lease.

(c)  Bidding.--

(1)  Except as set forth in paragraph (2), contracts and

leases shall be awarded to the highest and best bidder.

(2)  The requirement for competitive bidding may be

waived if the Commonwealth owns a fractional interest in the

mineral resources in or beneath State-owned land; and the

department may enter into a contract to lease that fractional

interest, with the approval of the Governor and upon terms

and conditions the department deems to be in the best

interest of the Commonwealth.

(d)  Bond.--A party that enters into a contract or lease

under this section must provide a bond satisfactory to the

department for the proper performance of the contract or lease.

Section 4.  Deposit of revenue.

Payments or royalties received by the department pursuant to

a contract or lease under this act shall be deposited into the

Environmental Stewardship Fund.

Section 10.  Effective date.

This act shall take effect immediately.