American Oil and Gas Reporter - March 2018 - 87

injection well development in the next
year or so."
Fund Transfers
Moody reports that PIOGA continues
to monitor the Pennsylvania Environmental
Defense Foundation's efforts to prevent
the commonwealth from using money from
oil and gas lease sales for purposes related
to environmental protection, such as operational costs of the state departments of
Environmental Protection (DEP) and Conservation and Natural Resources (DCNR).
PEDF renewed its efforts in January when
it asked the Pennsylvania Supreme Court
to order a lower court to act as directed by
the Supreme Court's earlier decision.
Since 2009, Moody explains, the governors and commonwealth legislators have
diverted money from the lease sales, which
are constitutionally mandated for use in
environmental protection projects, to the
general fund. The Pennsylvania Commonwealth Court upheld those transfers
in 2015. PEDF appealed, Moody relates,
arguing the transfers violated the state's
Environmental Rights Amendment.
On June 20, he continues, the Pennsylvania Supreme Court overturned the
lower court, ruling that royalties from
leasing public forest or park lands for
development could not be used to balance
the budget. The justices ruled Pennsylvania
must act as trustee for the commonwealth's
public natural resources and ordered the
Commonwealth Court to determine
whether bonus and rental payments from
state leasing are subject to the same restriction as royalties.
After the current state budged moved
$96 million from lease sales to help cover
the operation costs of state agencies
tasked with environmental protection, the
environmental group again turned to the
higher court when the lower court did
not move as quickly as the group wanted,
asking for the oversight it said was needed
to redress the improper fund transfers in
a timely manner.
"Governor (Ed) Rendell, a Democrat,
started the transfers out of the oil and gas
lease fund. (Tom) Corbett, a Republican
governor did it, and Governor Tom Wolf
continued it," Moody says. "The Supreme
Court held the Environmental Rights Amendment says the commonwealth is a trustee
of the state's publicly owned resources.
While no one can dispute that, there are
plenty of other ERA issues unresolved by
the PDEF decision, and PIOGA is working
with the Pennsylvania Chamber of Business
and Industry and other organizations to address these issues on behalf of all businesses
and industries because the ramifications
affect business development across the
board; not only oil and gas."
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American Oil and Gas Reporter - March 2018

Table of Contents for the Digital Edition of American Oil and Gas Reporter - March 2018

Contents
American Oil and Gas Reporter - March 2018 - 1
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