Florida Senate - 2012                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1158
       
       
       
       
       
       
                                Barcode 610102                          
       
                              LEGISLATIVE ACTION                        
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       The Committee on Environmental Preservation and Conservation
       (Latvala) recommended the following:
       
    1         Senate Substitute for Amendment (132080) (with title
    2  amendment)
    3  
    4         Delete everything after the enacting clause
    5  and insert:
    6         Section 1. (1) DUTIES; AUTHORITY.—Notwithstanding the
    7  provisions in ss. 253.52, 253.53, and 253.54, Florida Statutes,
    8  if a land management agency determines that there is an
    9  opportunity to develop oil and gas resources under onshore lands
   10  west of the Tallahassee Meridian, longitude 84°16’37.59” west,
   11  owned by a board, department, or agency of this state to yield
   12  greater, near-term revenue returns for the state, the land
   13  management agency may participate with a business entity
   14  authorized to conduct business in the state in a public-private
   15  partnership contract.
   16         (2) PRIVATE-PARTNER RESPONSIBILITIES.—The financial,
   17  technical, and operational risk for the exploration,
   18  development, and production of oil and gas resources is the
   19  responsibility of the private business entity.
   20         (3) PROPOSAL SELECTION.—
   21         (a) A business entity seeking a public-private partnership
   22  contract shall submit a business proposal that describes the
   23  exploration for oil or gas resources and the development of
   24  state lands for those purposes. The business entity may nominate
   25  state land that is to be explored and developed under the
   26  public-private partnership contract. The proposal shall provide
   27  an estimate of the revenues that the project is expected to
   28  generate for the state. The proposal for upland state lands must
   29  be consistent with approved land management plans approved
   30  pursuant to s. 253.034, Florida Statutes.
   31         (b) The land management agency shall review the business
   32  proposal in a timely manner and in a manner that is consistent
   33  with contemporary industry practices. The geophysical seismic
   34  exploration, drilling, and production activities proposed shall
   35  be of a duration consistent with industry practices.
   36         (c) The land management agency shall select a private
   37  partner based on the business proposal. The land management
   38  agency’s consideration must include, but need not be limited to,
   39  the technical quality of the exploration program proposed and
   40  the proposed timetable of geophysical and drilling activities
   41  which expedites the potential for generating revenues. If more
   42  than one entity submits a proposal for a public-private
   43  partnership for substantially the same area, the land management
   44  agency shall evaluate and select the single proposal that will
   45  provide the best value for the state.
   46         (d) The geophysical data acquired and the subsequent
   47  interpretation shall be made available to the land management
   48  agency or its representatives for review during the period
   49  provided in paragraph (4)(a), but shall remain in the sole
   50  possession of the business entity until the business entity has
   51  selected the lease areas.
   52         (4) PUBLIC-PRIVATE PARTNERSHIP CONTRACT.—The public-private
   53  partnership contract shall provide for:
   54         (a) A period of 3 years or longer during which the private
   55  partner may explore specified state lands by geophysical seismic
   56  methods for the feasibility of oil and gas resource development
   57  and production;
   58         (b) A selection process after geophysical operations are
   59  concluded in which the private partner may select and lease
   60  prospective parcels of state land for the purpose of exploration
   61  and production;
   62         (c) The leasing of state lands identified as a result of
   63  the geophysical seismic operations, which shall be for a term of
   64  at least 5 years; and
   65         (d) Negotiated royalty rates and a lease bonus.
   66         (5) APPROVAL OF CONTRACT.—The proposed public-private
   67  partnership contract must be approved by the Governor and
   68  Cabinet sitting as the Board of Trustees of the Internal
   69  Improvement Trust Fund in order to be legally binding on the
   70  State of Florida.
   71         Section 2. This act shall take effect upon becoming a law.
   72  
   73  ================= T I T L E  A M E N D M E N T ================
   74         And the title is amended as follows:
   75         Delete everything before the enacting clause
   76  and insert:
   77                        A bill to be entitled                      
   78         An act relating to the development of oil and gas
   79         resources; authorizing a land management agency to
   80         enter into a public-private partnership with a
   81         business entity to develop oil and gas resources upon
   82         certain onshore state lands if the development yields
   83         near-term revenues for the state; providing that the
   84         financial, technical, and operational risk for the
   85         exploration, development, and production of oil and
   86         gas resources is the responsibility of the private
   87         business entity; requiring that a business entity
   88         seeking a public-private partnership contract submit a
   89         business proposal to the agency for review; specifying
   90         the information to be included in the business
   91         proposal; providing criteria for the agency to use in
   92         selecting the exploration proposal by a business
   93         entity; requiring that the geophysical data and the
   94         subsequent interpretation be made available to the
   95         agency or its representative for review but remain in
   96         the possession of the business entity; providing
   97         criteria for the public-private partnership contract;
   98         requiring a proposed public-private partnership
   99         contract to be approved by the Governor and Cabinet
  100         sitting as the Board of Trustees of the Internal
  101         Improvement Trust Fund; providing an effective date.
  102  
  103         WHEREAS, the exploration and development of oil and gas
  104  deposits under onshore lands owned by a board, department, or
  105  agency of the state may provide the opportunity to produce
  106  higher, near-term revenues to the state, and
  107         WHEREAS, the monetary reward for discovering new reserves
  108  of oil and gas deposits may be significant, and
  109         WHEREAS, the exploration for oil and gas deposits via
  110  modern three-dimensional, geophysical seismic methods and
  111  production, with its technological improvements, including
  112  directional and horizontal drilling, although costly, is more
  113  efficient and yields better results than older methods of
  114  exploration and production employed during the past 50 years,
  115  NOW, THEREFORE,