Florida Senate - 2012                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1158
                                Barcode 132080                          
                              LEGISLATIVE ACTION                        
                    Senate             .             House              

       The Committee on Environmental Preservation and Conservation
       (Latvala) recommended the following:
    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. (1) DUTIES; AUTHORITY.—Notwithstanding the
    6  provisions in chapter 253, Florida Statutes, if a land
    7  management agency determines that there is an opportunity to
    8  develop oil and gas resources under onshore lands west of the
    9  Tallahassee Meridian, longitude 84°16’37.59” west, owned by a
   10  board, department, or agency of this state to yield greater,
   11  near-term revenue returns for the state, the land management
   12  agency may participate with a business entity authorized to
   13  conduct business in the state in a public-private partnership
   14  contract.
   15         (2) PRIVATE-PARTNER RESPONSIBILITIES.—The financial,
   16  technical, and operational risk for the exploration,
   17  development, and production of oil and gas resources is the
   18  responsibility of the private business entity.
   19         (3) PROPOSAL SELECTION.—
   20         (a) A business entity seeking a public-private partnership
   21  contract shall submit a business proposal that describes the
   22  exploration for oil or gas resources and the development of
   23  state lands for those purposes. The business entity may nominate
   24  state land that is to be explored and developed under the
   25  public-private partnership contract. The proposal shall provide
   26  an estimate of the revenues that the project is expected to
   27  generate for the state. The proposal for upland state lands must
   28  be consistent with approved land management plans approved
   29  pursuant to s. 253.034, Florida Statutes.
   30         (b) The land management agency shall review the business
   31  proposal in a timely manner and in a manner that is consistent
   32  with contemporary industry practices. The geophysical seismic
   33  exploration, drilling, and production activities proposed shall
   34  be of a duration consistent with industry practices.
   35         (c) The land management agency shall select a private
   36  partner based on the business proposal. The land management
   37  agency’s consideration must include, but need not be limited to,
   38  the technical quality of the exploration program proposed and
   39  the proposed timetable of geophysical and drilling activities
   40  which expedites the potential for generating revenues. If more
   41  than one entity submits a proposal for a public-private
   42  partnership for substantially the same area, the land management
   43  agency shall evaluate and select the single proposal that will
   44  provide the best value for the state.
   45         (d) The geophysical data acquired and the subsequent
   46  interpretation shall be made available to the land management
   47  agency or its representatives for review during the period
   48  provided in paragraph (4)(a), but shall remain in the sole
   49  possession of the business entity until the business entity has
   50  selected the lease areas.
   51         (4) PUBLIC-PRIVATE PARTNERSHIP CONTRACT.—The public-private
   52  partnership contract shall provide for:
   53         (a) A period of 3 years or longer during which the private
   54  partner may explore specified state lands by geophysical seismic
   55  methods for the feasibility of oil and gas resource development
   56  and production;
   57         (b) A selection process after geophysical operations are
   58  concluded in which the private partner may select and lease
   59  prospective parcels of state land for the purpose of exploration
   60  and production;
   61         (c) The leasing of state lands identified as a result of
   62  the geophysical seismic operations, which shall be for a term of
   63  at least 5 years; and
   64         (d) Negotiated royalty rates and a lease bonus.
   65         (5) APPROVAL OF CONTRACT.—The proposed public-private
   66  partnership contract must be approved by the Governor and
   67  Cabinet sitting as the Board of Trustees of the Internal
   68  Improvement Trust Fund in order to be legally binding on the
   69  State of Florida.
   70         Section 2. This act shall take effect upon becoming a law.
   72  ================= T I T L E  A M E N D M E N T ================
   73         And the title is amended as follows:
   74         Delete everything before the enacting clause
   75  and insert:
   76                        A bill to be entitled                      
   77         An act relating to the development of oil and gas
   78         resources; authorizing a land management agency to
   79         enter into a public-private partnership with a
   80         business entity to develop oil and gas resources upon
   81         certain onshore state lands if the development yields
   82         near-term revenues for the state; providing that the
   83         financial, technical, and operational risk for the
   84         exploration, development, and production of oil and
   85         gas resources is the responsibility of the private
   86         business entity; requiring that a business entity
   87         seeking a public-private partnership contract submit a
   88         business proposal to the agency for review; specifying
   89         the information to be included in the business
   90         proposal; providing criteria for the agency to use in
   91         selecting the exploration proposal by a business
   92         entity; requiring that the geophysical data and the
   93         subsequent interpretation be made available to the
   94         agency or its representative for review but remain in
   95         the possession of the business entity; providing
   96         criteria for the public-private partnership contract;
   97         requiring a proposed public-private partnership
   98         contract to be approved by the Governor and Cabinet
   99         sitting as the Board of Trustees of the Internal
  100         Improvement Trust Fund; providing an effective date.
  102         WHEREAS, the exploration and development of oil and gas
  103  deposits under onshore lands owned by a board, department, or
  104  agency of the state may provide the opportunity to produce
  105  higher, near-term revenues to the state, and
  106         WHEREAS, the monetary reward for discovering new reserves
  107  of oil and gas deposits may be significant, and
  108         WHEREAS, the exploration for oil and gas deposits via
  109  modern three-dimensional, geophysical seismic methods and
  110  production, with its technological improvements, including
  111  directional and horizontal drilling, although costly, is more
  112  efficient and yields better results than older methods of
  113  exploration and production employed during the past 50 years,