Pennsylvania House Bill HB347

Pennsylvania 2025-2026 Regular Session

• Introduced: 1/27/25
• Refer: 1/27/25

Caption

An Act providing for the leasing of subsurface rights on State forest and park property for oil and natural gas development; establishing a restricted account within the Oil and Gas Lease Fund; making . . . an appropriation; and abrogating an executive order and other orders and administrative policies.

Summary

HB347 would create a new state program allowing the Department of Conservation and Natural Resources to review company submissions or nominations for leasing subsurface rights beneath State forest and park lands for oil and natural gas development, so long as drilling originates from well sites outside the protected surface lands. The secretary would have authority to approve or deny proposed leases, with written notice required within 60 days, and companies could resubmit after a denial and ultimately appeal a final disapproval to Commonwealth Court. If a proposal is approved, the department must run a competitive bidding process open to any company and award the lease to the winning bidder. The bill also directs that lease revenue be deposited into the Oil and Gas Lease Fund, with upfront lease payments moved into a restricted account that is continuously appropriated to DCNR for a grant program focused on stream maintenance and clearing projects, especially those aimed at flood mitigation and protecting farmland or residential property from flooding.

Impact

The bill would add a new statutory framework governing how Pennsylvania can lease subsurface oil and gas rights under State forest and park property, while expressly stating that it does not prohibit drilling on those lands if otherwise lawful. It would also create a restricted account within the Oil and Gas Lease Fund and dedicate upfront lease payments to a new grant program for flood-related stream projects, shifting those revenues into a specific conservation and mitigation use. In addition, the bill would abrogate Executive Order 2015-03 and any conflicting orders or administrative policies, thereby overriding existing executive branch restrictions or procedures that conflict with the act.

Sentiment

No committee transcript or recorded vote information is available with the bill materials provided, so there is no direct evidence of debate, support, or opposition from hearings or floor action. Based on the bill text alone, the measure appears designed to promote resource development while tying some proceeds to environmental and flood-mitigation projects, suggesting an attempt to balance energy development interests with conservation and local infrastructure concerns.

Contention

The main point of contention is likely to be whether Pennsylvania should permit oil and gas leasing beneath State forest and park lands at all, especially given the bill’s override of prior executive policy and its authorization of subsurface development associated with drilling outside the protected surface area. Environmental concerns are built into the approval criteria, including prior compliance violations and potential infrastructure-driven impacts on State forest land, indicating that conservation advocates may focus on habitat, land-use, and cumulative environmental effects. Supporters are likely to emphasize revenue generation, competitive bidding, and the use of lease proceeds for flood mitigation and stream restoration, while critics may question whether those benefits justify expanded access to public lands for fossil fuel development.