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PRINTER'S NO. 876
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
716
Session of
2019
INTRODUCED BY BARTOLOTTA, STEFANO, SCARNATI, YAW AND J. WARD,
JUNE 5, 2019
REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, JUNE 5, 2019
AN ACT
Amending the act of April 9, 1929 (P.L.343, No.176), entitled,
as amended, "An act relating to the finances of the State
government; providing for cancer control, prevention and
research, for ambulatory surgical center data collection, for
the Joint Underwriting Association, for entertainment
business financial management firms, for private dam
financial assurance and for reinstatement of item vetoes;
providing for the settlement, assessment, collection, and
lien of taxes, bonus, and all other accounts due the
Commonwealth, the collection and recovery of fees and other
money or property due or belonging to the Commonwealth, or
any agency thereof, including escheated property and the
proceeds of its sale, the custody and disbursement or other
disposition of funds and securities belonging to or in the
possession of the Commonwealth, and the settlement of claims
against the Commonwealth, the resettlement of accounts and
appeals to the courts, refunds of moneys erroneously paid to
the Commonwealth, auditing the accounts of the Commonwealth
and all agencies thereof, of all public officers collecting
moneys payable to the Commonwealth, or any agency thereof,
and all receipts of appropriations from the Commonwealth,
authorizing the Commonwealth to issue tax anticipation notes
to defray current expenses, implementing the provisions of
section 7(a) of Article VIII of the Constitution of
Pennsylvania authorizing and restricting the incurring of
certain debt and imposing penalties; affecting every
department, board, commission, and officer of the State
government, every political subdivision of the State, and
certain officers of such subdivisions, every person,
association, and corporation required to pay, assess, or
collect taxes, or to make returns or reports under the laws
imposing taxes for State purposes, or to pay license fees or
other moneys to the Commonwealth, or any agency thereof,
every State depository and every debtor or creditor of the
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Commonwealth," in oil and gas wells, further providing for
legislative findings; and prohibiting the Governor from
placing a moratorium on nonsurface disturbance natural gas
drilling leases involving State forest land.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1601.1-E of the act of April 9, 1929
(P.L.343, No.176), known as The Fiscal Code, is amended to read:
Section 1601.1-E. Legislative findings.
The General Assembly finds and declares as follows:
(1) Revenue from the leasing of State land to extract
natural gas is necessary to obtain the revenue necessary to
effectuate the act of July 10, 2014 (P.L.3052, No.1A), known
as the General Appropriation Act of 2014.
(2) Leases utilized by the department include provisions
that are highly protective of the ecological integrity of
State forest lands and carefully crafted to minimize impacts
to rare and endangered plants, wildlife and their habitat and
the vast number of streams and watersheds that are part of
State forest and park lands.
(3) Leases utilized by the department for shale gas
provide for enhanced environmental and surface protections,
including:
(i) Increased setback distances from critical
recreation infrastructure, streams and water features,
State parks and designated wild and natural areas.
(ii) Limiting the amount of surface area disturbed,
prohibiting shallow well drilling and authorizing the
application of strict forestry resource management
principles.
(iii) Limiting the number of well pads allowed to be
constructed on the lease tract; providing for deep
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drilling insurance; and prohibiting the development of
the ecologically sensitive areas, including designated
wild and natural areas and areas of special
consideration, without the department's prior written
approval.
(4) The department continually updates and employs best
management practices when managing oil and gas activities on
State forest lands to ensure that shale gas activities are
consistent with the recreational and ecological uses of State
forest.
(5) The department has implemented a Shale Gas
Monitoring Program to monitor, evaluate and report any
impacts of shale gas development on the State forest system.
(6) The fund is not a constitutional trust.
(7) Money in the fund has increased exponentially from
the extraction of shale gas and the implementation of new gas
extraction techniques.
(8) The Commonwealth's role as trustee of the public's
natural resources is broader and more comprehensive than just
conserving the State forest and parks.
(9) The General Assembly affirms its intent that:
(i) The department should continue the operation of
the shale gas monitoring activities program to monitor,
evaluate and report the impacts of shale gas activities
in State forest and, in consultation with the Governor's
Office, utilize data received from ongoing monitoring to
adjust its management planning and practices.
(ii) The department should consider the State forest
and park lands as one of the Commonwealth's interests
when considering whether or not to lease additional State
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forest and park lands and determining what is in the best
interests of the Commonwealth. Interest involved in
decisions relating to leasing State forest and park lands
should not be made to the exclusion of all other
interests of the Commonwealth.
(iii) Notwithstanding any other law to the contrary,
it is in the best interest of the Commonwealth to lease
oil and gas rights in State forests and parks if the
department:
(A) [in consultation with the Governor,]
continues strong and effective lease protections,
best management practices and ongoing monitoring
programs on the impact of gas operations; and
(B) maintains a balance of money in the fund to
carry out the department's statutory obligation to
protect State forest and park land and other
environmental activities.
(10) If a balance in the funds is adequate to achieve
the purposes of paragraph (9), transfers to the General Fund
are permissible.
Section 2. The act is amended by adding a section to read:
Section 1611-E. Moratorium prohibition.
(a) Findings.--The General Assembly finds and declares as
follows:
(1) The General Assembly has previously recognized the
safe and responsible expansion of regulated gas leasing and
drilling on public lands in this Commonwealth, including the
State forest system, as an appropriate method of energy
production as well as an appropriate nontax source of
revenue.
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(2) The department has administered State-regulated
natural gas extraction for seven decades.
(3) The department's oversight of controlled mineral
extraction in this Commonwealth has included monitoring,
evaluating and reporting on the environmental impact that
occurs before, during and after drilling.
(4) The department has stated that:
Approximately 1.5 million acres of the 2.2 million-acre
State forest system are underlain by Marcellus and other
shale gas formations, making it a key venue for
developing this important energy source in Pennsylvania.
(5) The department's authority to provide nonsurface
disturbance natural gas leases on State forest land should be
restored.
(b) Prohibition.--Notwithstanding any other provision of
law, the Governor may not place a lease moratorium. A lease
moratorium placed prior to the effective date of this section
shall be invalid.
(c) Deposit.--Notwithstanding any other provision of law,
money from nonsurface disturbance natural gas drilling leases
involving State forest land, entered into on or after the
effective date of this section, shall be deposited into the
Green Infrastructure Fund.
(d) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Lease moratorium." A moratorium on nonsurface disturbance
natural gas drilling leases involving State forest land.
Section 3. This act shall take effect in 60 days.
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