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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY PICKETT, MAJOR, MAHER, BOYD, FLECK, GINGRICH, HESS, MILLARD, OBERLANDER, SAYLOR, VULAKOVICH AND MILLER, FEBRUARY 9, 2011 |
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| REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS, FEBRUARY 9, 2011 |
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| AN ACT |
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1 | Amending the act of December 19, 1974 (P.L.973, No.319), |
2 | entitled "An act prescribing the procedure under which an |
3 | owner may have land devoted to agricultural use, agricultural |
4 | reserve use, or forest reserve use, valued for tax purposes |
5 | at the value it has for such uses, and providing for |
6 | reassessment and certain interest payments when such land is |
7 | applied to other uses and making editorial changes," further |
8 | providing for utilization of land or conveyance of rights for |
9 | exploration or extraction of gas, oil or coal bed methane. |
10 | The General Assembly of the Commonwealth of Pennsylvania |
11 | hereby enacts as follows: |
12 | Section 1. Section 6(c.1) of the act of December 19, 1974 |
13 | (P.L.973, No.319), known as the Pennsylvania Farmland and Forest |
14 | Land Assessment Act of 1974, added October 27, 2010 (P.L.866, |
15 | No.88), is amended to read: |
16 | Section 6. Split-off, Separation or Transfer; Leasing for |
17 | Wireless Service; Utilization of Land or Conveyance of Rights |
18 | for Exploration or Extraction of Gas, Oil or Coal Bed Methane; |
19 | Utilization of Land for Commercial Alternative Energy |
20 | Generation; Death of Landowner; Temporary Leases.--* * * |
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1 | (c.1) The following apply: |
2 | (1) Land subject to preferential assessment may be leased or |
3 | otherwise devoted to the exploration for and removal of gas and |
4 | oil, including the extraction of coal bed methane, and the |
5 | development of appurtenant facilities, including new roads and |
6 | bridges, pipelines and other buildings or structures, related to |
7 | exploration for and removal of gas and oil and the extraction of |
8 | coal bed methane. |
9 | (2) Portions of land subject to preferential assessment may |
10 | be used for exploration for and removal of gas and oil, |
11 | including the extraction of coal bed methane, and the |
12 | development of appurtenant facilities, including new roads and |
13 | bridges, pipelines and other buildings or structures, related to |
14 | those activities. |
15 | (3) Roll-back taxes shall be imposed upon those portions of |
16 | land actually devoted to activities set forth in paragraph (2), |
17 | excluding land devoted to subsurface transmission or gathering |
18 | lines, which shall not be subject to roll-back tax. The portion |
19 | of land subject to roll-back tax shall be the [restored well |
20 | site and] land which is incapable of being immediately used for |
21 | the agricultural use, agricultural reserve or forest reserve |
22 | activities required under section 3, as [measured from the] |
23 | determined when a well [site restoration] production report |
24 | [approved by] is first due to the Department of Environmental |
25 | Protection as required by section 212 of the act of December 19, |
26 | 1984 (P.L.1140, No.223), known as the "Oil and Gas Act," and 25 |
27 | Pa. Code [78.65 (relating to site restoration)] § 78.121 |
28 | (relating to annual production report) or its subsequent |
29 | version. A copy of this report shall be [submitted] provided by |
30 | the Department of Environmental Protection to the county |
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1 | assessor within ten days of its [approval] submission. The fair |
2 | market value of the [restored well site and] land which is |
3 | incapable of being immediately used for the agricultural use, |
4 | agricultural reserve or forest reserve activities required under |
5 | section 3 shall be adjusted retroactively to the date a permit |
6 | was approved under section 201 of [the act of December 19, 1984 |
7 | (P.L.1140, No.223), known as] the "Oil and Gas Act." The tax |
8 | calculated based on the adjusted fair market value shall be due |
9 | and payable in the tax year immediately following the year in |
10 | which a well production report is provided to the county |
11 | assessor. Roll-back taxes shall become due upon the [filing of |
12 | the approved well site restoration] receipt of a well production |
13 | report [with] by the county assessor. The utilization of a |
14 | portion of land for activities set forth in paragraph (2) shall |
15 | not invalidate the preferential assessment of the land which is |
16 | not so utilized and the land shall continue to receive |
17 | preferential assessment if it continues to meet the requirements |
18 | of section 3. |
19 | (4) Notwithstanding paragraph (3), no roll-back tax shall be |
20 | imposed upon a landowner for activities related to the |
21 | exploration for or removal of oil or gas, including the |
22 | extraction of coal bed methane, conducted by parties other than |
23 | the landowner that hold the rights to conduct such activities |
24 | pursuant to an instrument, conveyance or other vesting of the |
25 | rights if the transfer of the rights occurred: |
26 | (i) before the land was enrolled for preferential assessment |
27 | under this act; and |
28 | (ii) before the effective date of this section. |
29 | * * * |
30 | Section 2. This act shall take effect immediately. |
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