Senate Committee Approves Bill To Allow Mineral Development On Other State Lands
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The Senate Environmental Resources and Energy Committee this week approved Senate Bill 367 (D.White-R-Indiana) which would provide new options for the leasing of state-owned real property for mining and other resource extraction operations.

            “This legislation provides an opportunity currently available only to state game lands, state parks and state forests to generate revenue,” said Sen. Don White, sponsor of the bill. “My legislation does not require the state to lease or sell any mineral property rights, rather it provides them with new opportunities.  Senate Bill 367 simply affords the option, one that in certain cases can supply the Commonwealth with much needed revenue while giving a boost to 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 mineral resource development.
            The bill was amend in Committee to require a minimum of 50 percent of revenue received from bonus and lease payments to go to the Environmental Stewardship Fund or the Key '93 Fund.  The remaining revenue will go into the General Fund.  All money derived from the PA State System of Higher Education land will be deposited into the Key '93 Fund;
            The Department of General Services would have the option to make and execute contracts or leases for the mining or removal of any valuable resources that may be found in state lands.
SB 367 is almost identical to Senate Bill 1159; legislation introduced by Senator White last session and approved by the Environmental Resources and Energy Committee in March 2010.

            “This fits well with the proposals recently 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 (State System of Higher Education) schools that option and allow the system to benefit from the royalties.”
            The bill now goes to the full Senate for action.


5/9/2011

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