Bill Text: PA HB126 | 2011-2012 | Regular Session | Introduced

---

Bill Title: In preliminary provisions, further providing for definitions; in general requirements, further providing for well permits and for permit objections; providing for protection of gas storage reservoirs; and, in underground gas storage, further providing for reliance on maps and burden of proof.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2011-10-14 - Referred to ENVIRONMENTAL RESOURCES AND ENERGY [HB126 Detail]

Download: Pennsylvania-2011-HB126-Introduced.html

---

PRINTER'S NO. 2544
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 126 Session of2011
INTRODUCED BY KRIEGER, STERN, HANNA, MURT, HARHART, CREIGHTON, GABLER, STURLA, KORTZ, EVANKOVICH, VULAKOVICH, REESE, LONGIETTI, HARKINS, HARRIS, SAINATO, SANTONI, KOTIK, DUNBAR, BENNINGHOFF, HARHAI, KAUFFMAN, GODSHALL, SONNEY AND READSHAW, OCTOBER 14, 2011
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, OCTOBER 14, 2011
AN ACT
Amending the act of December 19, 1984 (P.L.1140, No.223),
entitled "An act relating to the development of oil and gas
and coal; imposing duties and powers on the Department of
Environmental Resources; imposing notification requirements
to protect landowners; and providing for definitions, for
various requirements to regulate the drilling and operation
of oil and gas wells, for gas storage reservoirs, for various
reporting requirements, including certain requirements
concerning the operation of coal mines, for well permits, for
well registration, for distance requirements, for well casing
requirements, for safety device requirements, for storage
reservoir obligations, for well bonding requirements, for a
Well Plugging Restricted Revenue Account to enforce oil and
gas well plugging requirements, for the creation of an Oil
and Gas Technical Advisory Board, for oil and gas well
inspections, for enforcement and for penalties," in
preliminary provisions, further providing for definitions; in
general requirements, further providing for well permits and
for permit objections; providing for protection of gas
storage reservoirs; and, in underground gas storage, further
providing for reliance on maps and burden of proof.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "storage operator" in section
103 of the act of December 19, 1984 (P.L.1140, No.223), known as
the Oil and Gas Act, is amended and the section is amended by
adding a definition to read:
Section 103. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Storage operator." Any person who proposes to or does
operate a storage reservoir either as owner or lessee,
regardless of whether all such facilities are underground, as
promulgated either by the Natural Gas Act, codified at 15 U.S.C.
§ 717 et seq., or by this act.
* * *
"Unconventional well." A bore hole drilled or being drilled
for the purpose of or to be used for producing oil or gas from a
geologic formation existing below the base of the Elk Sandstone
or its geologic equivalent stratigraphic interval where oil or
gas generally cannot be produced at economic flow rates or in
economic volumes except by wells stimulated by hydraulic
fracture treatments, a horizontal well bore or by using
multilateral well bores or other techniques to expose more of
the formation of the well bore.
* * *
Section 2. Sections 201(b) and 202(b) of the act are amended
to read:
Section 201. Well permits.
* * *
(b) The permit application shall be accompanied by a plat
prepared by a competent engineer or a competent surveyor, on
forms to be furnished by the department, showing the political
20110HB0126PN2544 - 2 -
subdivision and county in which the tract of land upon which the
well to be drilled is located, the name of the surface landowner
of record and lessor, the name of all surface landowners or
water purveyors whose water supplies are within 1,000 feet of
the proposed well location, the name of the owner of record or
operator of all known underlying workable coal seams, if any,
the acreage in the tract to be drilled, the proposed location of
the well determined by survey, the courses and distances of such
location from two or more permanent identifiable points or
landmarks on said tract boundary corners, the proposed angle and
direction of such well, if the well is to be deviated
substantially from a vertical course, the number or other
identification to be given the well, the workable coal seams, if
any, underlying the tract of land upon which the well is to be
drilled or altered, which are to be cased off in accordance with
section 207, and such information needed by the department to
administer this act. The applicant shall forward, by certified
mail, a copy of said plat to the surface landowner, all surface
landowners or water purveyors whose water supplies are within
1,000 feet of the proposed well location, the owner and lessee,
if any, of such coal seams, and every coal operator required to
be identified on the well permit application and shall submit
proof of such notification with the well permit application. The
applicant shall provide, by certified mail, a copy of said plat
to the gas storage operator, when a proposed well or
unconventional well location is within 2,000 linear feet of a
gas storage reservoir protective boundary. With respect to
surface owners, notification shall be accomplished under this
section by sending notice to the persons to whom the tax notices
for said surface property are sent, as indicated in the
20110HB0126PN2544 - 3 -
assessment books in the county in which the property is located.
With respect to surface landowners or water purveyors whose
water supplies are within 1,000 feet of the proposed well
location, notification shall be made on forms and in a manner
prescribed by the department sufficient to identify, for such
persons, the rights afforded them under section 208 and the
advisability of taking their own predrilling or prealteration
survey. If the applicant submits to the department written
approval of the proposed well location by the surface landowner
and the coal operator, lessee or owner, if any, of the coal
underlying the proposed well location and no objections are
raised by the department within 15 days of filing or if no such
approval has been submitted and no objections are made to such
proposed well location within 15 days from receipt of such
notice by the surface landowner and the coal operator, lessee or
owner, if any, or by the department, the same shall be filed and
become a permanent record of such location, subject to
inspection at any time by any interested person.
* * *
Section 202. Permit objections.
* * *
(b) (1) In case any well location referred to in section
201(b) is made so that the well when drilled will penetrate
anywhere within the outside coal boundaries of any operating
coal mine or coal mine already projected and platted but not yet
being operated or within 1,000 linear feet beyond such
boundaries and the well when drilled or the pillar of coal about
the well will, in the opinion of the coal owner or operator,
unduly interfere with or endanger such mine, then the coal owner
or operator affected shall have the right to file objections in
20110HB0126PN2544 - 4 -
accordance with section 501 to such proposed location within 15
days of the receipt by the coal operator of the plat provided
for in section 201(b). An alternative location at which the
proposed well could be drilled to overcome such objections
shall, if possible, be indicated.
(2) In the event the location of the well or unconventional
well referred to in section 201(b) is situated so that the well
or unconventional well, when drilled, will penetrate within
2,000 linear feet of the protective boundary of a gas storage
reservoir and the well or unconventional well, when drilled,
will, in the opinion of the gas storage operator, unduly
interfere with or endanger such gas storage reservoir, then the
gas storage operator affected shall have the right to file
objections in accordance with section 501 to such proposed
location within 15 days of the receipt by the gas storage
operator of the plat provided for in section 201(b). An
alternative location, if available, at which the proposed well
could be drilled to overcome any such objections shall be
indicated by the gas storage operator to the department and the
well operator within 15 days of the receipt of the plat plan.
(3) If no such objections to the proposed location are filed
or if none are raised by the department within 15 days after
receipt of the plat by the gas storage facility operator, the
department shall proceed to issue or deny the permit.
(4) In the event the well operator and the gas storage
facility operator are unable to agree upon a drilling location,
their differences shall be submitted to a panel consisting of
one person selected by the objecting gas storage facility
operator, a second person selected by the permit applicant and a
third selected by the other two. Each party shall pay the fee of
20110HB0126PN2544 - 5 -
the panel member it selects and one-half the fee of the third
member. The panel shall convene a meeting within ten days of a
request to do so by either party. The parties shall submit their
positions to the panel within such time as the panel prescribes.
The panel shall receive written or oral information as it deems
appropriate.
(5) Based on the information it receives, the panel shall
choose the location, if any, on the permit applicant's tract
which:
(i) Permits the proposed well or unconventional well to be
drilled without endangering the safety of the persons working at
the gas storage facility.
(ii) Ensure the integrity of the gas contained within the
gas storage facility.
(6) The panel shall make its recommendation within ten days
of the close of the meeting and shall immediately submit it to
the department and the parties.
(7) Within 20 days from the receipt of a panel's
recommendation, the department shall proceed to issue a permit
with the location of the well or the unconventional well as
recommended by the panel.
(8) In the event the department determines that the well or
unconventional well cannot be safely drilled or the integrity of
the gas storage facility will be compromised, it shall notify
the panel and the parties describing the reasons for its
determination. The department may direct the panel to submit
another recommendation or on its own identify an alternate
location. Upon issuance of the permit, the department shall
indicate the new location on the plat plan on file with the
department.
20110HB0126PN2544 - 6 -
(9) If no such objections to the proposed location are filed
or if none are raised by the department within 15 days after
receipt of the plat by the coal operator or owner or if written
approval by the coal operator or owner of the location is filed
with the department and no objections are raised by the
department within 15 days of filing, the department shall
proceed to issue or deny the permit.
* * *
Section 3. The act is amended by adding a section to read:
Section 217. Protection of gas storage reservoirs.
(a) A gas storage facility operator shall log any well or
unconventional well drilled through a storage reservoir. The gas
storage facility operator shall have the right to obtain
information about the drilling plan and operation from the
operator of a well or unconventional well in advance of drilling
through a gas storage reservoir. The operator of a well or
unconventional well shall grant, within reasonable time frames
to representatives of the gas storage facility, permission to
inspect the well or unconventional well-drilling operations.
(b) When a well or unconventional well is to be drilled at a
location within 2,000 linear feet of a gas storage reservoir
protective boundary, the department and the gas storage
operator, owner or lessee shall be given at least 72 hours'
written notice prior to commencing any activities by the
operator of a well or unconventional well designed to provide
protection of the gas storage reservoir.
(c) All costs of protecting a gas storage facility and all
costs of measured gas loss from a natural gas facility shall be
borne by the operator of the well or unconventional well that
was drilled into the natural gas storage reservoir. Prior to
20110HB0126PN2544 - 7 -
commencing the drilling operation, the gas storage facility
operator and the operator of a well or unconventional well must
agree on these costs.
(d) The operator of the well or unconventional well that is
drilled into the natural gas storage reservoir shall agree in
writing that for any horizontal well lateral trajectory there
will not be any stimulation either through hydraulic fracturing
or other technology that will propagate a microseismic event in
the formation to occur within 300 feet above and below the
storage interval.
(e) An operator of a well or unconventional well proposing
to locate a well within 2,000 linear feet of the gas storage
pool protective limits shall supply the gas storage facility
operator with copies of the laboratory analysis taken from any
water wells or natural springs which the operator of a well or
unconventional well is required to sample as part of a
prealteration survey. The gas storage facility operator shall be
supplied copies of follow-up postinstallation surveys and
laboratory analyses for a period of five years.
(f) The permit application for drilling a well within 2,000
linear feet of a protective gas storage pool boundary shall
address, for those wells that penetrate the storage interval,
the manner in which the well will be plugged at the end of its
economic life.
Section 4. Section 306(a) of the act is amended to read:
Section 306. Reliance on maps; burden of proof.
(a) In determining whether a particular well, unconventional
well, coal mine or operating coal mine is or will be within any
distance material under this act from any storage reservoir, the
owner or operator of such well, unconventional well, coal mine
20110HB0126PN2544 - 8 -
or operating coal mine and the storage operator may rely on the
most recent map of the storage reservoir or coal mine filed by
the other with the department.
* * *
Section 5. This act shall take effect in 60 days.
20110HB0126PN2544 - 9 -