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For Immediate
Release
10/26/11
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Senate Approves Resource Extraction Options on State Land
Senate Bill 367 headed to House of Representatives for
consideration
The Senate today (October 26) approved legislation introduced by Senator Don
White (R-41) that would provide new options for the leasing of state-owned real
property for mining or removal of valuable coal, oil, natural gas, coal bed
methane, limestone and mineral resources.
Senate Bill 367 would give the Department of General Services (DGS) the
option to make and execute the contracts or leases.
"I appreciate my colleagues' support of this bill. This legislation provides
an opportunity currently available only to state game lands, state parks and
state forests to generate revenue," Senator White said. "This bill does not
require the state to lease or sell any property rights. SB 367 simply opens up
that option, which can provide revenue while boosting our state economy through
the creation of new jobs. Equally important, much of the revenue generated from
these leases will be used to boost Pennsylvania's environmental protection
efforts."
Currently, only a few state agencies such as the Department of Conservation
and Natural Resources, Game Commission and Fish and Boat Commission are
authorized by law to enter into leases for resource development.
Under Senator White's bill, also known as the "Indigenous Mineral Resources
Incentives Development Act," payments or royalties received pursuant to
contracts or leases on State-owned land will be equally apportioned into four
areas: the Hazardous Sites Cleanup Fund; the Pennsylvania Infrastructure
Investment Authority (PENNVEST); the Commonwealth Financing Authority's H2O PA
program; and, the Oil and Gas Lease Fund.
"This distribution formula supports four programs that are in need of funding
without making a defined dollar amount commitment to any one area," Senator
White said. "Instead it provides equitable funding and promotes our efforts to
maintain and improve Pennsylvania's environment and infrastructure improvement
efforts."
That formula would only apply to revenues from leases on state-own lands. A
separate formula would be used for revenues from leases of land owned by
Pennsylvania's state-owned universities.
Forty percent of the payments or royalties received pursuant to contracts or
leases on State System of Higher Education land would be retained by the
university where the resources are located and 60 percent would be allocated for
distribution among the member universities where no leases exist under a formula
determined by the Board of Governors. SB 367 requires the universities use the
funds for deferred maintenance, or energy efficiency or energy cost savings
projects.
"This fits well with the proposals made by the Governor when he urged state
universities to consider drilling for natural gas below campus to help solve
their financial problems," Senator White said. "This legislation would give
SSHE schools that option and allow the system to benefit from the royalties."
SB 367 now goes to the House of Representatives for consideration.
Contact:
Joe Pittman
(724) 357-0151
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