H. B. 2577


(By Delegates Love and Riggs, By Request)
[Introduced March 12, 1993; referred to the
Committee on the Judiciary.]




A BILL to amend and reenact sections five and six, article one-a, chapter twenty of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to the public land corporation required to conduct sales of public lands by competitive bidding, modified competitive bidding or direct sale and to hold a public hearing before the sale, exchange or transfer of land; when the public hearing is not required; competitive bidding and notice requirements before the development of natural resources on certain lands.

Be it enacted by the Legislature of West Virginia:
That sections five and six, article one-a, chapter twenty of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 1A. REAL ESTATE MANAGEMENT AND PROCEDURES.

§20-1A-5. Public land corporation to hold public hearing before sale, exchange or transfer of land.

(a) Prior to any final decision of any state agency to sell,exchange or transfer land, the public land corporation shall:
(1) Prepare and reduce to writing the reasons and supporting data regarding such the sale or exchange. The written reasons required under this section shall be available for public inspection at the office of the county clerk at the county courthouse of each county in which the affected land is located during the two successive weeks before the date of the public hearing required by this section;
(2) Provide for a public hearing to be held at a reasonable time and place within each county in which the affected land is located to allow interested members of the public to attend the hearing without undue hardship. Members of the public may be present, submit statements and testimony and question the corporation's representative appointed pursuant to this section;
(3) Not less than thirty days prior to such the public hearing, provide notice to all members of the Legislature in whose district the affected land is located, to the head of the governing body of any political subdivision having zoning or other land use regulatory responsibility in the geographic area within which the public lands are located and to the head of any political subdivision having administrative or public services responsibility in the geographic area within which the lands are located;
(4) Cause to be published a notice of the required public hearing. The notice shall be published as a Class II legal advertisement in compliance with the provisions of article three,chapter fifty-nine of this code and the publication area shall be each county in which the affected land is located. The public hearing shall be held no earlier than the fourteenth successive day and no later than the twenty-first successive day following the first publication of the notice. The notice shall contain the time and place of the public hearing along with a brief description of the affected land;
(5) Cause a copy of the required notice to be posted in a conspicuous place at the affected land for members of the public to observe. Such notice shall remain posted for two successive weeks prior to the date of the public hearing;
(6) Appoint a representative of the corporation who shall conduct the required public hearing. The corporation's representative shall have full knowledge of all the facts and circumstances surrounding the proposed sale, exchange or transfer. The representative of the corporation shall make a report of the public hearing available for inspection by the public or, upon written request of any interested person, provide a written copy thereof and to all individuals previously receiving written notice of the hearing within thirty days following the public hearing; and
(7) If the evidence at the public hearing establishes by a preponderance that the appraisal provided for in subsection (c), (d), section four of this article does not reflect the true, fair market value, the public land corporation shall cause another appraisal to be made. If the evidence at the public hearingestablishes by a preponderance that the sale or exchange of land does not meet the criteria set forth in subdivision three, section three of this article, the public land corporation shall not proceed with the sale or exchange of said land without judicial approval.
The representative of the corporation conducting the public hearing shall make the results of the hearing available to the corporation for its consideration prior to the board making decisions regarding the affected lands.
(b) No sale, exchange or transfer of land subject to the provisions of this section may be made before the thirtieth successive day following the public hearing required by this section, but in no event shall the sale, exchange or transfer of such lands be made prior to fifteen days after the report of the public hearings are made available to the public in general.
(c) Sales, exchanges or transfers of public lands by the public land corporation that are ten acres or smaller in area and/or have a fair market value of ten thousand dollars or less may be conducted without public notice and public hearing as otherwise required by this article. Fair market value shall still be determined as provided for in subsection (d), section four of this article, and the size shall be determined by a survey prepared by a West Virginia licensed surveyor.
§20-1A-6. Competitive bidding and notice requirements before the development of natural resources on certain lands.

The corporation may enter into a lease or contract for the development of minerals, gas or oil on or under lands in which the corporation holds any right, title or interest:
Provided, That no lease or contract may be entered into for the extraction and removal of minerals by surface mining or auger mining of coal. With the exception of deep mining operations which are already in progress and permitted as of the effective date of this article, extraction of coal by deep mining methods under state forests or wildlife refuges may be permitted only if such lease or contract provides that no entries, portals, air shafts or other incursions upon and into said land incident to said mining operations may be placed or constructed upon said lands or within three thousand feet of the boundary thereof. Any lease or contract entered into shall reserve to the state all rights to subjacent surface support which the state is seized or possessed of at the time of such lease or contract. Notwithstanding any other provisions of the code to the contrary, nothing herein shall be construed to permit extraction of coal minerals, oil or gas by any method from, on or under, any state park or state recreation area, nor the extraction of coal minerals by strip or auger mining upon any state forest or wildlife refuge. The extraction of oil and gas from under state parks and recreation areas may be undertaken only if any lease or contract allowing the extraction provides that there shall not be surface disturbance nor degradation from drilling activities, and that equipment, machinery, tanks, buildings, structures or otherappurtenances incidental to the drilling operations, shall not be placed nor constructed upon the surface of said lands or within three hundred feet of the boundary thereof, except for completely underground pipelines for which rights-of-way may be granted. The corporation may enter into a lease or contract for the development of minerals, oil or gas, where such lease or contract is not prohibited by any other provisions of this code, only after receiving sealer bids therefor, after notice by publication as a Class II legal advertisement in compliance with the provisions of article three, chapter fifty-nine of this code. The area for such publication shall be each county in which such lands are located. The corporation may also solicit sealed bids by sending a request to bid to prospective bidders. The minerals, oil or gas so advertised may be leased or contracted for development at not less than the fair market value, as determined by an appraisal made by an independent person or firm chosen by the corporation, to the highest responsible bidder, who shall give bond for the proper performance of the contract or lease as the corporation shall designate; but the corporation shall have the right to reject any and all bids and to readvertise for bids. If the foregoing provisions of this section have been complied with, and no bid equal to or in excess of the fair market value of such natural resources is received, the corporation may, at any time during a period of six months after the opening of the bids, lease or contract for the development of such natural resources in such manner as it isdeemed appropriate, but the lease or contract price shall not be less than the fair market value of such natural resources advertised.



NOTE: The purposes of this bill are, to provide that notice be given to those legislators in whose district proposed land transactions are to take place, to correct a subsection reference in the article, to allow land transactions of small areas and\or of little value to proceed without public notice and hearing only and to allow extraction of oil or gas underlying state parks by slant or offset drilling so long as the surface is undisturbed.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.