| |
|
| |
| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
| |
| HOUSE BILL |
|
| |
| |
| INTRODUCED BY SONNEY, EVERETT, FABRIZIO, GEORGE, HALUSKA, HARPER, HORNAMAN, KORTZ, PICKETT, REICHLEY, VULAKOVICH, WAGNER AND WATERS, MARCH 14, 2011 |
| |
| |
| REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, MARCH 14, 2011 |
| |
| |
| |
| AN ACT |
| |
1 | Amending the act of December 19, 1984 (P.L.1140, No.223), |
2 | entitled "An act relating to the development of oil and gas |
3 | and coal; imposing duties and powers on the Department of |
4 | Environmental Resources; imposing notification requirements |
5 | to protect landowners; and providing for definitions, for |
6 | various requirements to regulate the drilling and operation |
7 | of oil and gas wells, for gas storage reservoirs, for various |
8 | reporting requirements, including certain requirements |
9 | concerning the operation of coal mines, for well permits, for |
10 | well registration, for distance requirements, for well casing |
11 | requirements, for safety device requirements, for storage |
12 | reservoir obligations, for well bonding requirements, for a |
13 | Well Plugging Restricted Revenue Account to enforce oil and |
14 | gas well plugging requirements, for the creation of an Oil |
15 | and Gas Technical Advisory Board, for oil and gas well |
16 | inspections, for enforcement and for penalties," in general |
17 | requirements, further providing for well location |
18 | restrictions and for bonding; and, in miscellaneous |
19 | provisions, further providing for well plugging funds. |
20 | The General Assembly of the Commonwealth of Pennsylvania |
21 | hereby enacts as follows: |
22 | Section 1. Section 205 of the act of December 19, 1984 |
23 | (P.L.1140, No.223), known as the Oil and Gas Act, is amended by |
24 | adding a subsection to read: |
25 | Section 205. Well location restrictions. |
|
1 | * * * |
2 | (b.1) No well site may be prepared or a well drilled within |
3 | 330 feet from a surface property line. This subsection shall not |
4 | apply to wells drilled into the Middle Devonian Marcellus |
5 | Formation or the Oriskany Formation. |
6 | * * * |
7 | Section 2. Sections 215(a)(1) and (2) and 601(b) and (c)(1) |
8 | of the act, amended July 2, 1992 (P.L.365, No.78), are amended |
9 | to read: |
10 | Section 215. Bonding. |
11 | (a) (1) Except as provided in subsection (d) hereof, upon |
12 | filing an application for a well permit and before continuing |
13 | to operate any oil or gas well, the owner or operator thereof |
14 | shall file with the department a bond for the well and the |
15 | well site on a form to be prescribed and furnished by the |
16 | department. Any such bond filed with an application for a |
17 | well permit shall be payable to the Commonwealth and |
18 | conditioned that the operator shall faithfully perform all of |
19 | the drilling, water supply replacement, restoration and |
20 | plugging requirements of this act. Any such bond filed with |
21 | the department for a well in existence on the effective date |
22 | of this act shall be payable to the Commonwealth and |
23 | conditioned that the operator shall faithfully perform all of |
24 | the water supply replacement, restoration and plugging |
25 | requirements of this act. The amount of the bond required |
26 | shall be [in the amount of $2,500 per well for at least two |
27 | years following the effective date of this act, after which |
28 | time the bond amount may be adjusted by the Environmental |
29 | Quality Board every two years to reflect the projected costs |
30 | to the Commonwealth of performing well plugging.] the |
|
1 | following amounts and may be adjusted by the Environmental |
2 | Quality Board every two years to reflect the projected costs |
3 | to the Commonwealth of performing well plugging: |
4 | (i) For wells with a total well bore length less |
5 | than 6,000 feet: |
6 | (A) For operating up to 50 wells, $4,000 per |
7 | well, provided the operator may not be required to |
8 | provide a bond under this clause exceeding $35,000. |
9 | (B) For operating 51 to 150 wells, $39,000 plus |
10 | $4,000 per well for each well in excess of 51 wells, |
11 | provided the operator may not be required to provide |
12 | a bond under this clause exceeding $60,000. |
13 | (C) For operating 151 to 250 wells, $64,000 plus |
14 | $4,000 per well for each well in excess of 151 wells, |
15 | provided the operator may not be required to provide |
16 | a bond under this clause exceeding $100,000. |
17 | (D) For operating more than 250 wells, $104,000 |
18 | plus $4,000 per well for each well in excess of 250 |
19 | wells, provided the operator may not be required to |
20 | provide a bond under this clause exceeding $250,000. |
21 | (ii) For wells with a total well bore length greater |
22 | than 6,000 feet: |
23 | (A) For operating up to 25 wells, $10,000 per |
24 | well, provided the operator may not be required to |
25 | provide a bond under this clause exceeding $60,000. |
26 | (B) For operating 26 to 50 wells, $70,000 plus |
27 | $10,000 per well for each well in excess of 26 wells, |
28 | provided the operator may not be required to provide |
29 | a bond under this clause exceeding $120,000. |
30 | (C) For operating 51 to 150 wells, $121,000 plus |
|
1 | $10,000 per well for each well in excess of 51 wells, |
2 | provided the operator may not be required to provide |
3 | a bond under this clause exceeding $180,000. |
4 | (D) For operating more than 150 wells, $190,000 |
5 | plus $10,000 per well for each well in excess of 151 |
6 | wells, provided the operator may not be required to |
7 | provide a bond under this clause exceeding $250,000. |
8 | [(2) In lieu of individual bonds for each well, an owner |
9 | or operator may file a blanket bond, on a form prepared by |
10 | the department, covering all of its wells in Pennsylvania as |
11 | enumerated on the bond form. A blanket bond shall be in the |
12 | amount of $25,000 for at least two years following the |
13 | effective date of this act, after which time the bond amount |
14 | may be adjusted by the Environmental Quality Board every two |
15 | years to reflect the projected costs to the Commonwealth of |
16 | performing well plugging.] |
17 | * * * |
18 | Section 601. Well plugging funds. |
19 | * * * |
20 | (b) To aid in the indemnification of the Commonwealth for |
21 | the cost of plugging abandoned wells, there shall be added to |
22 | the permit fee established by the department under section 201 |
23 | for new wells a [$50] $100 surcharge. All moneys collected as a |
24 | result of this surcharge shall be paid into the State Treasury |
25 | into a restricted revenue account to be known as the Abandoned |
26 | Well Plugging Fund, hereby established, and shall be expended by |
27 | the department to plug abandoned wells which threaten the health |
28 | and safety of persons or property or pollution of the waters of |
29 | the Commonwealth. |
30 | (c) (1) There is hereby created a restricted revenue |
|
1 | account to be known as the Orphan Well Plugging Fund. There |
2 | shall be added to the permit fee established by the |
3 | department under section 201 for new wells a [$100] $200 |
4 | surcharge for wells to be drilled for oil production and a |
5 | [$200] $400 surcharge for wells to be drilled for gas |
6 | production, which surcharges shall be placed in the Orphan |
7 | Well Plugging Fund and shall be expended by the department to |
8 | plug orphan wells. If an operator rehabilitates a well |
9 | abandoned by another operator or an orphan well, the permit |
10 | fee and the surcharge for such well shall be waived. |
11 | * * * |
12 | Section 3. This act shall take effect in 60 days. |
|