12/02/24 - 90 New Stories - REAL Environmental & Conservation Leadership In PA: http://tinyurl.com/5xpcbut8
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Senate Passes Bill Allowing Leasing Of Minerals On Other State Lands
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The Senate Wednesday approved Senate Bill 367 (D.White-R-Indiana) which 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 gives the Department of General Services 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," said Sen. Don White. "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 Sen. 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; 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," Sen. 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.
Senate Bill 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," Sen. White said. "This legislation would give SSHE schools that option and allow the system to benefit from the royalties."
The bill now goes to the House for consideration.
Senate Approves Mineral Leasing Bill
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10/31/2011 |
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