09RS SB138
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SB138

09RS

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SB 138 (BR 886) - T. Jensen, R. Stivers II

     AN ACT relating to natural resources and making an appropriation therefor.
     Create new sections of KRS Chapter 56 to authorize the Finance and Administration cabinet to lease mineral rights owned by the state and by public universities; establish requirements for leases applicable to operations on state-owned, university-owned lands; establish royalty requirements on oil and gas leases; require the Finance and Administrative Cabinet to promulgate administrative regulations for auctioning the right to lease state-owned and university-owned mineral rights; create a new section of KRS 353.500 to 353.720 to require the Department for Natural Resources to develop a program of permitting oil and gas operations on state-owned lands; establish permitting requirements for oil and gas operations on state-owned lands; require that the proceeds from royalties, cash, bonuses, rents, and payments be paid into the oil and gas conservation fund to be used for the furtherance of the state agency of record on the deed and that proceeds from the fund be credited to the general fund for each agency of record; amend KRS 353.310 to set jurisdiction over oil and gas leases of state-owned mineral rights in Franklin Circuit Court; and amend KRS 353.510 to define "program," "fund," "alternative fuel" and "alternative energy infrastructure, "state oil and gas lease" and "state agency."

SB 138 - AMENDMENTS


     SCA (1, T. Jensen) - Make technical correction to change shot-in to shut-in.

     HCS - Retain original provisions of SB 138/GA; increase royalty reservation above 12.5 percent by negotiation in the lease; require separate reclamation and plugging bond; allow Finance and Administration to negotiate the construction, placement and operation of facilities appurtenant to the oil and gas operation; exempt the state from paying tax under 143A.020; require that forfeiture of the lease automatically forfeits all bonds; exempt moneys from required bonds and fines and penalties from the oil and gas permittee from the Oil and Gas Conservation Fund and are remitted to the appropriate funds established for plugging, reclamation and division operations; require the secretary of the Environmental and Public Protection Cabinet rather than the Commissioner of Natural Resources approve lands for the program; and make technical corrections.

     HFA (1, R. Webb) - Authorize the commissioner of the Department for Natural Resources to determine which state-owned or university-owned lands are unsuitable for oil and gas operations; and require the department to submit a written report of the monies received in and distributed from the oil and gas conservation fund to the Governor, the Legislative Research Commission, and the Interim Joint Committee on Appropriations and Revenue.

     HFA (2, S. Lee) - Remove jurisdiction of Franklin Circuit Court for appeals of final determinations of administrative hearing officers and give jurisdiction to the Circuit Court of the county where the land leased for the oil or gas operation is located; and remove jurisdiction of Franklin Circuit Court over proceedings involving a lease authorized under Section 1.

     HFA (3, S. Lee) - Remove jurisdiction of Franklin Circuit Court for appeals of final determinations of administrative hearing officers and give jurisdiction to the Circuit Court of the county where the land leased for the oil or gas operation is located; and remove jurisdiction of Franklin Circuit Court over proceedings involving a lease authorized under Section 1.

     Feb 12-introduced in Senate
     Feb 23-to Natural Resources and Energy (S)
     Feb 24-taken from committee; 1st reading; returned to Natural Resources and Energy (S)
     Feb 25-reported favorably, 2nd reading, to Rules with committee amendment (1)
     Feb 26-posted for passage in the Regular Orders of the Day for Friday, February 27, 2009
     Feb 27-3rd reading, passed 36-0 with committee amendment (1)
     Mar 2-received in House
     Mar 3-to Natural Resources & Environment (H)
     Mar 4-posting waived; posted in committee
     Mar 5-reported favorably, 1st reading, to Calendar; floor amendments (1) and (2) filed
     Mar 6-2nd reading, to Rules; recommitted to Natural Resources & Environment (H)
     Mar 9-posted in committee; posting waived
     Mar 10-posted in committee
     Mar 11-reported favorably, to Rules with Committee Substitute ; floor amendment (3) filed to Committee Substitute

Vote History
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