University
Drilling Bill goes to Governor
A bill in Harrisburg awaiting Governor Corbett’s
signature would permit Pennsylvania’s state-owned university system to keep the
full proceeds if universities decide to lease campus land for drilling. Although the 14 universities were permitted
to lease land for drilling in the past, any revenue would have been collected
by the state treasury.
However, under the new law, royalties from mineral
extraction—including Marcellus Shale drilling—would be divided between the
individual university and the other state-owned institutions. Should any of the universities decide to
lease for drilling, the leasing university would take in 50 percent of the
revenue, while 35 percent would be distributed among the other thirteen
universities. The remaining 15 percent
would be allocated for tuition assistance for the schools. With the new law, six of the fourteen that
sit within the Marcellus Shale region—Manfield, Lock Haven, Indiana,
California, Clarion, and Slippery Rock Universities—could earn significant
profits from any drilling leases.
The spokesman for the State System of Higher Education
remarked that the universities had not previously leased any land because the
universities would not receive any of the revenue. However, with the bill’s easy passage through
the House of Representatives on Tuesday (136-62), several universities are
ready to explore leasing options.
The bill also allows for the lease of other state-owned
land, such as those in the large state prison grounds. An unspecified portion of the revenues would
be retained by the sponsoring state agency.
Any lands leased for drilling would join the roughly
700,000 acres of state forest currently leased.