Pennsylvania Statutes Title 71 P.S. State Government § 1357.4. Development of resources on State system land

(1) To make and execute contracts or leases in the name of the Commonwealth for the mining or removal of valuable coal, oil, natural gas, coal bed methane and limestone which may be found in or beneath State system land.

(2) To grant a right-of-way through State system land to any individual or corporation that applies if the system determines that the grant will not so adversely affect the land as to interfere with its usual and orderly administration.

(3) To cooperate with, consult with or delegate to the Department of Conservation and Natural Resources, pursuant to its authority in the act of June 28, 1995 (P.L. 89, No. 18),  1 known as the Conservation and Natural Resources Act, in carrying out the provisions of this act.

(1) Except as set forth in paragraph (2), contracts and leases shall be awarded to the highest and best bidder.

(2) The requirement for competitive bidding may be waived if the Commonwealth owns a fractional interest in the mineral resources in or beneath State system land, and the department may enter into a contract to lease that fractional interest, with the approval of the Governor and upon terms and conditions the department deems to be in the best interest of the Commonwealth.