As Introduced

129th General Assembly Regular Session 2011-2012

H. B. No. 133

Representative Adams, J. 

Cosponsors: Representatives Beck, Blessing, Boose, Brenner, Buchy, Burke, Combs, Gonzales, Goodwin, Grossman, Hackett, Hall, Hayes, Huffman, Landis, Maag, Martin, McKenney, Rosenberger, Ruhl, Sears, Stebelton, Thompson, Uecker, Wachtmann, Young 

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A BILL

To amend sections 123.01, 1505.07, 1531.06, and

1

3345.181, to enact sections 131.50, 1509.70,

2

1509.71, 1509.72, 1509.73, and 1509.74, and to

3

repeal sections 5119.40, 5120.12, and 5123.23 of

4

the Revised Code to create the Oil and Gas Leasing

5

Board and to establish a procedure by which the

6

Board may enter into leases for oil and gas

7

production on land owned or under the control of a

8

state agency for the purpose of providing funding

9

for capital and operating costs for the agency.

10

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 123.01, 1505.07, 1531.06, and	11
3345.181 be amended and sections 131.50, 1509.70, 1509.71,	12
1509.72, 1509.73, and 1509.74 of the Revised Code be enacted to	13
read as follows:	14

Sec. 123.01.  (A) The department of administrative services,	15
in addition to those powers enumerated in Chapters 124. and 125.	16
of the Revised Code and provided elsewhere by law, shall exercise	17
the following powers:	18

(1) To prepare, or contract to be prepared, by licensed	19
engineers or architects, surveys, general and detailed plans,	20
specifications, bills of materials, and estimates of cost for any	21
projects, improvements, or public buildings to be constructed by	22
state agencies that may be authorized by legislative	23
appropriations or any other funds made available therefor,	24
provided that the construction of the projects, improvements, or	25
public buildings is a statutory duty of the department. This	26
section does not require the independent employment of an	27
architect or engineer as provided by section 153.01 of the Revised	28
Code in the cases to which that section applies nor affect or	29
alter the existing powers of the director of transportation.	30

(2) To have general supervision over the construction of any	31
projects, improvements, or public buildings constructed for a	32
state agency and over the inspection of materials previous to	33
their incorporation into those projects, improvements, or	34
buildings;	35

(3) To make contracts for and supervise the construction of	36
any projects and improvements or the construction and repair of	37
buildings under the control of a state agency, except contracts	38
for the repair of buildings under the management and control of	39
the departments of public safety, job and family services, mental	40
health, developmental disabilities, rehabilitation and correction,	41
and youth services, the bureau of workers' compensation, the	42
rehabilitation services commission, and boards of trustees of	43
educational and benevolent institutions and except contracts for	44
the construction of projects that do not require the issuance of a	45
building permit or the issuance of a certificate of occupancy and	46
that are necessary to remediate conditions at a hazardous waste	47
facility, solid waste facility, or other location at which the	48
director of environmental protection has reason to believe there	49
is a substantial threat to public health or safety or the	50
environment. These contracts shall be made and entered into by the	51
directors of public safety, job and family services, mental	52
health, developmental disabilities, rehabilitation and correction,	53
and youth services, the administrator of workers' compensation,	54
the rehabilitation services commission, the boards of trustees of	55
such institutions, and the director of environmental protection,	56
respectively. All such contracts may be in whole or in part on	57
unit price basis of maximum estimated cost, with payment computed	58
and made upon actual quantities or units.	59

(4) To prepare and suggest comprehensive plans for the	60
development of grounds and buildings under the control of a state	61
agency;	62

(5) To acquire, by purchase, gift, devise, lease, or grant,	63
all real estate required by a state agency, in the exercise of	64
which power the department may exercise the power of eminent	65
domain, in the manner provided by sections 163.01 to 163.22 of the	66
Revised Code;	67

(6) To make and provide all plans, specifications, and models	68
for the construction and perfection of all systems of sewerage,	69
drainage, and plumbing for the state in connection with buildings	70
and grounds under the control of a state agency;	71

(7) To erect, supervise, and maintain all public monuments	72
and memorials erected by the state, except where the supervision	73
and maintenance is otherwise provided by law;	74

(8) To procure, by lease, storage accommodations for a state	75
agency;	76

(9) To lease or grant easements or licenses for unproductive	77
and unused lands or other property under the control of a state	78
agency. Such leases, easements, or licenses shall be granted for a	79
period not to exceed fifteen years and shall be executed for the	80
state by the director of administrative services and the governor	81
and shall be approved as to form by the attorney general, provided	82
that leases, easements, or licenses may be granted to any county,	83
township, municipal corporation, port authority, water or sewer	84
district, school district, library district, health district, park	85
district, soil and water conservation district, conservancy	86
district, or other political subdivision or taxing district, or	87
any agency of the United States government, for the exclusive use	88
of that agency, political subdivision, or taxing district, without	89
any right of sublease or assignment, for a period not to exceed	90
fifteen years, and provided that the director shall grant leases,	91
easements, or licenses of university land for periods not to	92
exceed twenty-five years for purposes approved by the respective	93
university's board of trustees wherein the uses are compatible	94
with the uses and needs of the university and may grant leases of	95
university land for periods not to exceed forty years for purposes	96
approved by the respective university's board of trustees pursuant	97
to section 123.77 of the Revised Code.	98

(10) To lease space for the use of a state agency;

99

(11) To have general supervision and care of the storerooms,	100
offices, and buildings leased for the use of a state agency;	101

(12) To exercise general custodial care of all real property	102
of the state;	103

(13) To assign and group together state offices in any city	104
in the state and to establish, in cooperation with the state	105
agencies involved, rules governing space requirements for office	106
or storage use;	107

(14) To lease for a period not to exceed forty years,	108
pursuant to a contract providing for the construction thereof	109
under a lease-purchase plan, buildings, structures, and other	110
improvements for any public purpose, and, in conjunction	111
therewith, to grant leases, easements, or licenses for lands under	112
the control of a state agency for a period not to exceed forty	113
years. The lease-purchase plan shall provide that at the end of	114
the lease period, the buildings, structures, and related	115
improvements, together with the land on which they are situated,	116
shall become the property of the state without cost.	117

(a) Whenever any building, structure, or other improvement is	118
to be so leased by a state agency, the department shall retain	119
either basic plans, specifications, bills of materials, and	120
estimates of cost with sufficient detail to afford bidders all	121
needed information or, alternatively, all of the following plans,	122
details, bills of materials, and specifications:	123

(i) Full and accurate plans suitable for the use of mechanics	124
and other builders in the improvement;	125

(ii) Details to scale and full sized, so drawn and	126
represented as to be easily understood;	127

(iii) Accurate bills showing the exact quantity of different	128
kinds of material necessary to the construction;	129

(iv) Definite and complete specifications of the work to be	130
performed, together with such directions as will enable a	131
competent mechanic or other builder to carry them out and afford	132
bidders all needed information;	133

(v) A full and accurate estimate of each item of expense and	134
of the aggregate cost thereof.	135

(b) The department shall give public notice, in such	136
newspaper, in such form, and with such phraseology as the director	137
of administrative services prescribes, published once each week	138
for four consecutive weeks, of the time when and place where bids	139
will be received for entering into an agreement to lease to a	140
state agency a building, structure, or other improvement. The last	141
publication shall be at least eight days preceding the day for	142
opening the bids. The bids shall contain the terms upon which the	143
builder would propose to lease the building, structure, or other	144
improvement to the state agency. The form of the bid approved by	145
the department shall be used, and a bid is invalid and shall not	146
be considered unless that form is used without change, alteration,	147
or addition. Before submitting bids pursuant to this section, any	148
builder shall comply with Chapter 153. of the Revised Code.	149

(c) On the day and at the place named for receiving bids for	150
entering into lease agreements with a state agency, the director	151
of administrative services shall open the bids and shall publicly	152
proceed immediately to tabulate the bids upon duplicate sheets. No	153
lease agreement shall be entered into until the bureau of workers'	154
compensation has certified that the person to be awarded the lease	155
agreement has complied with Chapter 4123. of the Revised Code,	156
until, if the builder submitting the lowest and best bid is a	157
foreign corporation, the secretary of state has certified that the	158
corporation is authorized to do business in this state, until, if	159
the builder submitting the lowest and best bid is a person	160
nonresident of this state, the person has filed with the secretary	161
of state a power of attorney designating the secretary of state as	162
its agent for the purpose of accepting service of summons in any	163
action brought under Chapter 4123. of the Revised Code, and until	164
the agreement is submitted to the attorney general and the	165
attorney general's approval is certified thereon. Within thirty	166
days after the day on which the bids are received, the department	167
shall investigate the bids received and shall determine that the	168
bureau and the secretary of state have made the certifications	169
required by this section of the builder who has submitted the	170
lowest and best bid. Within ten days of the completion of the	171
investigation of the bids, the department shall award the lease	172
agreement to the builder who has submitted the lowest and best bid	173
and who has been certified by the bureau and secretary of state as	174
required by this section. If bidding for the lease agreement has	175
been conducted upon the basis of basic plans, specifications,	176
bills of materials, and estimates of costs, upon the award to the	177
builder the department, or the builder with the approval of the	178
department, shall appoint an architect or engineer licensed in	179
this state to prepare such further detailed plans, specifications,	180
and bills of materials as are required to construct the building,	181
structure, or improvement. The department shall adopt such rules	182
as are necessary to give effect to this section. The department	183
may reject any bid. Where there is reason to believe there is	184
collusion or combination among bidders, the bids of those	185
concerned therein shall be rejected.	186

(15) To acquire by purchase, gift, devise, or grant and to	187
transfer, lease, or otherwise dispose of all real property	188
required to assist in the development of a conversion facility as	189
defined in section 5709.30 of the Revised Code as that section	190
existed before its repeal by Amended Substitute House Bill 95 of	191
the 125th general assembly;	192

(16) To lease for a period not to exceed forty years,	193
notwithstanding any other division of this section, the	194
state-owned property located at 408-450 East Town Street,	195
Columbus, Ohio, formerly the state school for the deaf, to a	196
developer in accordance with this section. "Developer," as used in	197
this section, has the same meaning as in section 123.77 of the	198
Revised Code.	199

Such a lease shall be for the purpose of development of the	200
land for use by senior citizens by constructing, altering,	201
renovating, repairing, expanding, and improving the site as it	202
existed on June 25, 1982. A developer desiring to lease the land	203
shall prepare for submission to the department a plan for	204
development. Plans shall include provisions for roads, sewers,	205
water lines, waste disposal, water supply, and similar matters to	206
meet the requirements of state and local laws. The plans shall	207
also include provision for protection of the property by insurance	208
or otherwise, and plans for financing the development, and shall	209
set forth details of the developer's financial responsibility.	210

The department may employ, as employees or consultants,	211
persons needed to assist in reviewing the development plans. Those	212
persons may include attorneys, financial experts, engineers, and	213
other necessary experts. The department shall review the	214
development plans and may enter into a lease if it finds all of	215
the following:	216

(a) The best interests of the state will be promoted by	217
entering into a lease with the developer;	218

(b) The development plans are satisfactory;

219

(c) The developer has established the developer's financial	220
responsibility and satisfactory plans for financing the	221
development.	222

The lease shall contain a provision that construction or	223
renovation of the buildings, roads, structures, and other	224
necessary facilities shall begin within one year after the date of	225
the lease and shall proceed according to a schedule agreed to	226
between the department and the developer or the lease will be	227
terminated. The lease shall contain such conditions and	228
stipulations as the director considers necessary to preserve the	229
best interest of the state. Moneys received by the state pursuant	230
to this lease shall be paid into the general revenue fund. The	231
lease shall provide that at the end of the lease period the	232
buildings, structures, and related improvements shall become the	233
property of the state without cost.	234

(17) To lease to any person any tract of land owned by the	235
state and under the control of the department, or any part of such	236
a tract, for the purpose of drilling for or the pooling of oil or	237
gas. Such a lease shall be granted for a period not exceeding	238
forty years, with the full power to contract for, determine the	239
conditions governing, and specify the amount the state shall	240
receive for the purposes specified in the lease, and shall be	241
prepared as in other cases.	242

(18) To manage the use of space owned and controlled by the	243
department, including space in property under the jurisdiction of	244
the Ohio building authority, by doing all of the following:	245

(a) Biennially implementing, by state agency location, a	246
census of agency employees assigned space;	247

(b) Periodically in the discretion of the director of	248
administrative services:	249

(i) Requiring each state agency to categorize the use of	250
space allotted to the agency between office space, common areas,	251
storage space, and other uses, and to report its findings to the	252
department;	253

(ii) Creating and updating a master space utilization plan	254
for all space allotted to state agencies. The plan shall	255
incorporate space utilization metrics.	256

(iii) Conducting a cost-benefit analysis to determine the	257
effectiveness of state-owned buildings;	258

(iv) Assessing the alternatives associated with consolidating	259
the commercial leases for buildings located in Columbus.	260

(c) Commissioning a comprehensive space utilization and	261
capacity study in order to determine the feasibility of	262
consolidating existing commercially leased space used by state	263
agencies into a new state-owned facility.	264

(B) This section and section 125.02 of the Revised Code shall	265
not interfere with any of the following:	266

(1) The power of the adjutant general to purchase military	267
supplies, or with the custody of the adjutant general of property	268
leased, purchased, or constructed by the state and used for	269
military purposes, or with the functions of the adjutant general	270
as director of state armories;	271

(2) The power of the director of transportation in acquiring	272
rights-of-way for the state highway system, or the leasing of	273
lands for division or resident district offices, or the leasing of	274
lands or buildings required in the maintenance operations of the	275
department of transportation, or the purchase of real property for	276
garage sites or division or resident district offices, or in	277
preparing plans and specifications for and constructing such	278
buildings as the director may require in the administration of the	279
department;	280

(3) The power of the director of public safety and the	281
registrar of motor vehicles to purchase or lease real property and	282
buildings to be used solely as locations to which a deputy	283
registrar is assigned pursuant to division (B) of section 4507.011	284
of the Revised Code and from which the deputy registrar is to	285
conduct the deputy registrar's business, the power of the director	286
of public safety to purchase or lease real property and buildings	287
to be used as locations for division or district offices as	288
required in the maintenance of operations of the department of	289
public safety, and the power of the superintendent of the state	290
highway patrol in the purchase or leasing of real property and	291
buildings needed by the patrol, to negotiate the sale of real	292
property owned by the patrol, to rent or lease real property owned	293
or leased by the patrol, and to make or cause to be made repairs	294
to all property owned or under the control of the patrol;	295

(4) The power of the division of liquor control in the	296
leasing or purchasing of retail outlets and warehouse facilities	297
for the use of the division;	298

(5) The power of the director of development to enter into	299
leases of real property, buildings, and office space to be used	300
solely as locations for the state's foreign offices to carry out	301
the purposes of section 122.05 of the Revised Code;	302

(6) The power of the director of environmental protection to	303
enter into environmental covenants, to grant and accept easements,	304
or to sell property pursuant to division (G) of section 3745.01 of	305
the Revised Code.	306

(C) Purchases for, and the custody and repair of, buildings	307
under the management and control of the capitol square review and	308
advisory board, the rehabilitation services commission, the bureau	309
of workers' compensation, or the departments of public safety, job	310
and family services, mental health, developmental disabilities,	311
and rehabilitation and correction, and buildings of educational	312
and benevolent institutions under the management and control of	313
boards of trustees, are not subject to the control and	314
jurisdiction of the department of administrative services.	315

(D) Any instrument by which real property is acquired	316
pursuant to this section shall identify the agency of the state	317
that has the use and benefit of the real property as specified in	318
section 5301.012 of the Revised Code.	319

Sec. 131.50.  (A) There is hereby created in the state	320
treasury the state land royalty fund consisting of money credited	321
to it under section 1509.71 of the Revised Code. Any investment	322
proceeds earned on money in the fund shall be credited to the fund	323
and used as required in division (B) of this section.	324

(B) Money in the state land royalty fund shall be used to pay	325
capital and operating costs of state agencies on whose behalf	326
money has been contributed to the fund by the oil and gas leasing	327
board under section 1509.71 of the Revised Code. Such a state	328
agency is entitled to receive from the fund the amount contributed	329
on its behalf by the board and a share of the investment earnings	330
of the fund in an amount that is equivalent to the proportionate	331
share of contributions made on behalf of the state agency to the	332
fund.	333

Sec. 1505.07.  Subject to the limitation set forth in section	334
1505.08 of the Revised Code, the director of natural resources,	335
with the approval of the director of environmental protection, the	336
attorney general, and the governor, may issue permits and make	337
leases to parties making application for permission to take and	338
remove sand, gravel, stone, and other minerals or substances from	339
and under the bed of Lake Erie other than oil or gas, either upon	340
a royalty or rental basis, as hethe director of natural resources	341
determines to be best for the state. Permits shall be issued for	342
terms of not less than one year nor more than ten years, and	343
leases shall be for a term of years or until the economic	344
extraction of the mineral or other substance covered thereby has	345
been completed. Such taking and removal shall be within certain	346
fixed boundaries that do not conflict with the rights of littoral	347
owners. Upon request from the holder of a permit, it shall be	348
canceled, but in the case of any permit or lease, any equipment or	349
buildings owned by the permittee or lessee shall be held as	350
security by the director of natural resources for payment of all	351
rentals or royalties due the state at the time of cancellation.	352

No person shall remove sand, gravel, stone, or other minerals	353
or substances from and under the bed of Lake Erie without first	354
obtaining a permit or lease therefor from the director.	355

The director of natural resources may, in accordance with	356
Chapter 119. of the Revised Code, adopt, amend, and rescind rules	357
for the administration, implementation, and enforcement of this	358
section.	359

Sec. 1509.70. (A) It is the policy of the state to provide	360
access to and support the exploration for, development of, and	361
production of oil and natural gas resources owned or controlled by	362
the state in an effort to stabilize energy prices for citizens of	363
this state and to use the state's natural resources responsibly.	364

(B) There is hereby created the oil and gas leasing board	365
consisting of the chief of the division of mineral resources	366
management, the chief of the division of geological survey, and	367
the following three members appointed by the governor:	368

(1) Two members recommended by a statewide organization	369
representing the oil and gas industry;	370

(2) One member representing a statewide environmental	371
advocacy organization.	372

(C) Of the initial members appointed to the board, one shall	373
serve a term of three years, one shall serve a term of four years,	374
and one shall serve a term of five years. Thereafter, terms of	375
office of members shall be for five years from the date of	376
appointment. Each member appointed by the governor shall hold	377
office from the date of appointment until the end of the term for	378
which the member was appointed. The governor shall fill a vacancy	379
occurring on the board by appointing a member within sixty days	380
after the vacancy occurs. A member appointed to fill a vacancy	381
occurring prior to the expiration of the term for which the	382
member's predecessor was appointed shall hold office for the	383
remainder of that term. A member shall continue in office	384
subsequent to the expiration date of the member's term until the	385
member's successor takes office, or until a period of sixty days	386
has elapsed, whichever occurs first.	387

(D) Three members constitute a quorum of the board, and no	388
action of the board is valid unless it has the concurrence of at	389
least three members. The board shall keep a record of its	390
proceedings. The chief of the division of mineral resources	391
management shall serve as the chairperson of the board.	392

(E) The governor may remove an appointed member from the	393
board for inefficiency, malfeasance, misfeasance, or nonfeasance.	394

(F) Members of the board shall receive no compensation, but	395
shall be reimbursed for their actual and necessary expenses	396
incurred in the course of the performance of their duties as	397
members of the board.	398

(G) The division of mineral resources management shall	399
provide staff assistance to the board if requested by the board.	400

Sec. 1509.71. (A) As used in this section:

401

(1) "State agency" means both of the following:

402

(a) "State agency" as defined in section 1.60 of the Revised	403
Code;	404

(b) "State university or college" as defined in section	405
3345.12 of the Revised Code.	406

(2) "Formation" means any of the following:

407

(a) The distance from the surface of the land to the top of	408
the Onondago limestone;	409

(b) The distance from the top of the Onondago limestone to	410
the bottom of the Queenston formation;	411

(c) The distance from the bottom of the Queenston formation	412
to the top of the Black River limestone;	413

(d) The distance from the top of the Black River limestone to	414
the basement rock.	415

(B) The oil and gas leasing board has exclusive authority to	416
lease any parcel of land that is owned or controlled by a state	417
agency for the purpose of exploring for and developing and	418
producing oil and natural gas resources. A person that is an owner	419
and that is interested in leasing a formation within a parcel of	420
land that is owned or controlled by a state agency for the	421
exploration for and the development and production of oil or	422
natural gas may submit to the board a nomination that identifies	423
the parcel of land. A person submitting a nomination shall submit	424
it in the manner and form established in rules adopted under	425
section 1509.72 of the Revised Code and shall include with the	426
nomination the information required by those rules.	427

(C)(1) Not later than thirty days after the receipt of a	428
nomination of a parcel of land, the board shall conduct a meeting	429
for the purpose of determining whether to enter into a lease for a	430
formation within the parcel of land that is identified in the	431
nomination. Not later than sixty days after the meeting, the board	432
shall approve or disapprove the nomination. In making its decision	433
to approve or disapprove the nomination of the parcel of land, the	434
board shall consider all of the following:	435

(a) The economic benefits, including the potential income	436
from an oil or natural gas operation, that would result if the	437
lease of a formation that is the subject of the nomination were	438
approved;	439

(b) Whether the proposed oil or gas operation is compatible	440
with the current uses of the parcel of land that is the subject of	441
the nomination;	442

(c) Any objections to the nomination submitted to the board	443
by the state agency that owns or controls the land on which the	444
proposed oil or natural gas operation would take place;	445

(d) Any other factors that the board establishes in rules	446
adopted under section 1509.72 of the Revised Code.	447

(2) Prior to making its decision to approve or disapprove a	448
nomination, the board shall notify the agency that owns or	449
controls the land on which the oil or gas operation would take	450
place.	451

(3) The board shall approve or deny a nomination not later	452
than ninety days after the receipt of the nomination. Notice of	453
the decision of the board shall be sent by certified mail to the	454
person that submitted the nomination.	455

(4) If the board approves a nomination, the board shall	456
divide the parcel of land that is the subject of the approved	457
nomination into smaller-sized parcels when appropriate in	458
accordance with rules adopted under section 1509.72 of the Revised	459
Code.	460

(5) If the board approves a nomination, the board shall offer	461
for lease each formation that is within a parcel of land.	462

(D) Each calendar quarter, the board shall proceed to	463
advertise for bids for a lease for a formation within a parcel of	464
land that was the subject of a nomination approved during the	465
previous calendar quarter. The advertisement shall be published on	466
a web site that is maintained by the board and in a newspaper of	467
general circulation in Franklin county and in each county in which	468
the parcel of land that was the subject of the nomination is	469
located. The advertisement shall be published once a week for four	470
consecutive weeks prior to the date that is established by the	471
board for the submission of bids. The notice shall include all of	472
the following:	473

(1) The procedure for the submission of a bid to enter into a	474
lease for a formation within a parcel of land;	475

(2) A statement that a person may submit a bid for only one	476
formation within the parcel of land;	477

(3) A statement that a standard lease form that is consistent	478
with the practices of the oil and natural gas industries will be	479
used for the lease of a formation within the parcel of land;	480

(4) Instructions for obtaining a copy of the standard lease	481
form that will be used for the lease of a formation within the	482
parcel of land;	483

(5) A statement, if applicable, that special terms and	484
conditions apply to the lease because of specific conditions	485
related to the parcel of land. If such special terms and	486
conditions apply to the lease, the statement shall include	487
instructions for obtaining a copy of them.	488

(6) Any other information that the board considers pertinent	489
to the advertisement for bids.	490

(E) In order to encourage the submission of bids and the	491
responsible and reasonable development of the state's natural	492
resources, the information that is contained in a bid submitted to	493
the board under this section shall be confidential and shall not	494
be disclosed.	495

(F) Not later than fifteen days after a deadline established	496
by the board for the submission of bids for each lease regarding a	497
particular parcel of land, bids received by the board shall be	498
unsealed and opened on the date designated by the board. Not later	499
than thirty days after the date on which the board unseals and	500
opens the bids, the board shall enter into a lease under this	501
section with the person who submits the highest and best bid for	502
each formation within that parcel of land, taking into account the	503
financial responsibility of the prospective lessee and the ability	504
of the prospective lessee to perform its obligations under the	505
lease. However, the board shall not lease more than one formation	506
within a particular parcel of land to the same person.	507

(G) All money received by the board in payment for leases	508
entered into under this section shall be paid by the board into	509
the state treasury to the credit of the state land royalty fund	510
created in section 131.50 of the Revised Code, except money that	511
is required to be credited to the oil and gas leasing board	512
administration fund created in section 1509.73 of the Revised Code	513
as required in rules adopted under section 1509.72 of the Revised	514
Code. Money credited to the state land royalty fund shall be	515
contributed on behalf of the state agency that owns or controls	516
the parcel of land on which the drilling for oil or gas takes	517
place.	518

Sec. 1509.72. The oil and gas leasing board shall adopt rules	519
in accordance with Chapter 119. of the Revised Code establishing	520
all of the following:	521

(A) The form of and the information to be included in	522
nominations that are submitted under section 1509.71 of the	523
Revised Code;	524

(B) Procedures for the submission of nominations to the	525
board;	526

(C) Factors that the board may consider when determining	527
whether to approve or disapprove a nomination submitted under	528
section 1509.71 of the Revised Code;	529

(D) Procedures and factors that the board shall use when	530
determining whether to divide a parcel of land that is the subject	531
of an approved nomination into smaller-sized parcels in order to	532
manage the land properly and to maximize the number of leases for	533
a particular parcel of land;	534

(E) A standard lease form that is consistent with the	535
practices of the oil and natural gas industries and that contains	536
a one-eighth landowner royalty, which standard lease form shall be	537
used by the board for leases entered into under section 1509.71 of	538
the Revised Code;	539

(F) Factors that the board shall consider when determining	540
whether special terms and conditions of leases may be required for	541
a particular parcel of land because of specific conditions related	542
to the parcel and to the development of any oil or natural gas	543
from the parcel;	544

(G) A percentage of the proceeds of each lease agreement that	545
shall be credited to the oil and gas leasing board administration	546
fund created in section 1509.73 of the Revised Code for the	547
purpose of providing funding for the board's administrative	548
expenses and actual and necessary expenses of the board members;	549

(H) Any other procedures and requirements that the board	550
determines necessary to implement sections 1509.70 to 1509.74 of	551
the Revised Code.	552

Sec. 1509.73. There is hereby created in the state treasury	553
the oil and gas leasing board administration fund consisting of a	554
percentage of the money derived from leases as provided in rules	555
adopted under section 1509.72 of the Revised Code. Money in the	556
fund shall be used by the oil and gas leasing board to pay the	557
administrative expenses of the board and to pay the actual and	558
necessary expenses incurred by members of the board in the course	559
of the performance of their duties.	560

Sec. 1509.74. If a nomination to lease a parcel of land that	561
is submitted under section 1509.71 of the Revised Code is	562
disapproved by the oil and gas leasing board, the person that	563
submitted the nomination may appeal the board's disapproval to the	564
oil and gas commission for an order reversing the disapproval. The	565
requirements and procedures established in section 1509.36 of the	566
Revised Code that apply to an appeal of an order of the chief of	567
the division of mineral resources management apply to appeals	568
filed under this section.	569

Sec. 1531.06.  (A) The chief of the division of wildlife,	570
with the approval of the director of natural resources, may	571
acquire by gift, lease, purchase, or otherwise lands or surface	572
rights upon lands and waters or surface rights upon waters for	573
wild animals, fish or game management, preservation, propagation,	574
and protection, outdoor and nature activities, public fishing and	575
hunting grounds, and flora and fauna preservation. The chief, with	576
the approval of the director, may receive by grant, devise,	577
bequest, donation, or assignment evidences of indebtedness, the	578
proceeds of which are to be used for the purchase of such lands or	579
surface rights upon lands and waters or surface rights upon	580
waters.	581

(B)(1) The chief shall adopt rules for the protection of	582
state-owned or leased lands and waters and property under the	583
control of the division of wildlife against wrongful use or	584
occupancy that will ensure the carrying out of the intent of this	585
section, protect those lands, waters, and property from	586
depredations, and preserve them from molestation, spoilation,	587
destruction, or any improper use or occupancy thereof, including	588
rules with respect to recreational activities and for the	589
government and use of such lands, waters, and property.	590

(2) The chief may adopt rules benefiting wild animals, fish	591
or game management, preservation, propagation, and protection,	592
outdoor and nature activities, public fishing and hunting grounds,	593
and flora and fauna preservation, and regulating the taking and	594
possession of wild animals on any lands or waters owned or leased	595
or under the division's supervision and control and, for a	596
specified period of years, may prohibit or recall the taking and	597
possession of any wild animal on any portion of such lands or	598
waters. The division clearly shall define and mark the boundaries	599
of the lands and waters owned or leased or under its supervision	600
and control upon which the taking of any wild animal is	601
prohibited.	602

(C) The chief, with the approval of the director, may acquire	603
by gift, lease, or purchase land for the purpose of establishing	604
state fish hatcheries and game farms and may erect on it buildings	605
or structures that are necessary.	606

The title to or lease of such lands and waters shall be taken	607
by the chief in the name of the state. The lease or purchase price	608
of all such lands and waters may be paid from hunting and trapping	609
and fishing licenses and any other funds.	610

(D) To provide more public recreation, stream and lake	611
agreements for public fishing only may be obtained under rules	612
adopted by the chief.	613

(E) The chief, with the approval of the director, may	614
establish user fees for the use of special public facilities or	615
participation in special activities on lands and waters	616
administered by the division. The special facilities and	617
activities may include hunting or fishing on special designated	618
public lands and waters intensively managed or stocked with	619
artificially propagated game birds or fish, field trial	620
facilities, wildlife nature centers, firearm ranges, boat mooring	621
facilities, camping sites, and other similar special facilities	622
and activities. The chief shall determine whether the user fees	623
are refundable and shall ensure that that information is provided	624
at the time the user fees are paid.	625

(F) The chief, with the approval of the director, may enter	626
into lease agreements for rental of concessions or other special	627
projects situated on state-owned or leased lands or waters or	628
other property under the division's control. The chief shall set	629
and collect the fees for concession rentals or other special	630
projects; regulate through contracts between the division and	631
concessionaires the sale of tangible objects at concessions or	632
other special projects; and keep a record of all such fee payments	633
showing the amount received, from whom received, and for what	634
purpose the fee was collected.	635

(G) The chief may sell or donate conservation-related items	636
or items that promote wildlife conservation, including, but not	637
limited to, stamps, pins, badges, books, bulletins, maps,	638
publications, calendars, and any other educational article or	639
artifact pertaining to wild animals; sell confiscated or forfeited	640
items; and sell surplus structures and equipment, and timber or	641
crops from lands owned, administered, leased, or controlled by the	642
division. The chief, with the approval of the director, also may	643
engage in campaigns and special events that promote wildlife	644
conservation by selling or donating wildlife-related materials,	645
memberships, and other items of promotional value.	646

(H) The chief may sell, lease, or transfer minerals or	647
mineral rights, with the approval of the director, when the chief	648
and the director determine it to be in the best interest of the	649
state. Upon approval of the director, the chief may make, execute,	650
and deliver contracts, including leases, to mine, drill, or	651
excavate iron ore, stone, coal, petroleum, gas, salt, and other	652
minerals, other than oil or gas, upon and under lands owned by the	653
state and administered by the division to any person who complies	654
with the terms of such a contract. No such contract shall be valid	655
for more than fifty years from its effective date. Consideration	656
for minerals and mineral rights shall be by rental or royalty	657
basis as prescribed by the chief and payable as prescribed by	658
contract. Moneys collected under this division shall be paid into	659
the state treasury to the credit of the wildlife habitat fund	660
created in section 1531.33 of the Revised Code. Contracts entered	661
into under this division also may provide for consideration for	662
minerals or mineral rights in the form of acquisition of lands as	663
provided under divisions (A) and (C) of this section.	664

(I) All moneys received under divisions (E), (F), and (G) of	665
this section shall be paid into the state treasury to the credit	666
of a fund that shall be used for the purposes outlined in section	667
1533.15 of the Revised Code and for the management of other wild	668
animals for their ecological and nonconsumptive recreational value	669
or benefit.	670

(J) The chief, with the approval of the director, may barter	671
or sell wild animals to other states, state or federal agencies,	672
and conservation or zoological organizations. Moneys received from	673
the sale of wild animals shall be deposited into the wild animal	674
fund created in section 1531.34 of the Revised Code.	675

(K) The chief shall adopt rules establishing standards and	676
guidelines for the administration of contraceptive chemicals to	677
noncaptive wild animals. The rules may specify chemical delivery	678
methods and devices and monitoring requirements.	679

The chief shall establish criteria for the issuance of and	680
shall issue permits for the administration of contraceptive	681
chemicals to noncaptive wild animals. No person shall administer	682
contraceptive chemicals to noncaptive wild animals without a	683
permit issued by the chief.	684

(L) All fees set by the chief under this section shall be	685
approved by the wildlife council.	686

(M) Information contained in the wildlife diversity database	687
that is established pursuant to division (B)(2) of this section	688
and section 1531.25 of the Revised Code may be made available to	689
any individual or public or private agency for research,	690
educational, environmental, land management, or other similar	691
purposes that are not detrimental to the conservation of a species	692
or feature. Information regarding sensitive site locations of	693
species that are listed pursuant to section 1531.25 of the Revised	694
Code and of features that are included in the wildlife diversity	695
database is not subject to section 149.43 of the Revised Code if	696
the chief determines that the release of the information could be	697
detrimental to the conservation of a species or feature.	698

Sec. 3345.181. (A) The board of trustees of a state	699
university, by majority vote, may make, execute, and deliver	700
contracts or leases to mine minerals upon lands under the	701
supervision of suchthe board, to any person or public entity that	702
complies with the terms prescribed by the board. Such contracts or	703
leases shall not operate as a conveyance of the fee to any part of	704
the realty.	705

(B) A board, by majority vote, may make expenditures and may	706
enter into contracts with any person or public entity for the	707
purposes of investigating, exploring, prospecting, or drilling for	708
petroleum and gas and the constituent components and mineral	709
by-products thereof upon lands under the supervision of such	710
board, and for the purposes of extracting, producing, selling,	711
using, or transporting such petroleum, gas, components, and	712
byproducts.	713

(C) The board may use the proceeds derived from its actions	714
under division (A) or (B) of this section for the furthering of	715
any of the purposes of the university.	716

Section 2.  That existing sections 123.01, 1505.07, 1531.06,	717
and 3345.181 and sections 5119.40, 5120.12, and 5123.23 of the	718
Revised Code are hereby repealed.	719

Section 3.  A lease entered into under division (B) of	720
section 3345.181 or section 123.01, 1505.07, 1531.06, 5119.40,	721
5120.12, or 5123.23 of the Revised Code as those sections existed	722
prior to their amendment or repeal by this act shall remain in	723
effect until the term of the lease expires as provided in the	724
lease.	725

Section 4. Section 123.01 of the Revised Code is presented in	726
this act as a composite of the section as amended by both Am. Sub.	727
H.B. 1 and Sub. S.B. 79 of the 128th General Assembly. The General	728
Assembly, applying the principle stated in division (B) of section	729
1.52 of the Revised Code that amendments are to be harmonized if	730
reasonably capable of simultaneous operation, finds that the	731
composite is the resulting version of the section in effect prior	732
to the effective date of the section as presented in this act.	733