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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| 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 |
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| REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, OCTOBER 14, 2011 |
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| AN ACT |
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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 |
17 | preliminary provisions, further providing for definitions; in |
18 | general requirements, further providing for well permits and |
19 | for permit objections; providing for protection of gas |
20 | storage reservoirs; and, in underground gas storage, further |
21 | providing for reliance on maps and burden of proof. |
22 | The General Assembly of the Commonwealth of Pennsylvania |
23 | hereby enacts as follows: |
24 | Section 1. The definition of "storage operator" in section |
25 | 103 of the act of December 19, 1984 (P.L.1140, No.223), known as |
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1 | the Oil and Gas Act, is amended and the section is amended by |
2 | adding a definition to read: |
3 | Section 103. Definitions. |
4 | The following words and phrases when used in this act shall |
5 | have the meanings given to them in this section unless the |
6 | context clearly indicates otherwise: |
7 | * * * |
8 | "Storage operator." Any person who proposes to or does |
9 | operate a storage reservoir either as owner or lessee, |
10 | regardless of whether all such facilities are underground, as |
11 | promulgated either by the Natural Gas Act, codified at 15 U.S.C. |
12 | § 717 et seq., or by this act. |
13 | * * * |
14 | "Unconventional well." A bore hole drilled or being drilled |
15 | for the purpose of or to be used for producing oil or gas from a |
16 | geologic formation existing below the base of the Elk Sandstone |
17 | or its geologic equivalent stratigraphic interval where oil or |
18 | gas generally cannot be produced at economic flow rates or in |
19 | economic volumes except by wells stimulated by hydraulic |
20 | fracture treatments, a horizontal well bore or by using |
21 | multilateral well bores or other techniques to expose more of |
22 | the formation of the well bore. |
23 | * * * |
24 | Section 2. Sections 201(b) and 202(b) of the act are amended |
25 | to read: |
26 | Section 201. Well permits. |
27 | * * * |
28 | (b) The permit application shall be accompanied by a plat |
29 | prepared by a competent engineer or a competent surveyor, on |
30 | forms to be furnished by the department, showing the political |
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1 | subdivision and county in which the tract of land upon which the |
2 | well to be drilled is located, the name of the surface landowner |
3 | of record and lessor, the name of all surface landowners or |
4 | water purveyors whose water supplies are within 1,000 feet of |
5 | the proposed well location, the name of the owner of record or |
6 | operator of all known underlying workable coal seams, if any, |
7 | the acreage in the tract to be drilled, the proposed location of |
8 | the well determined by survey, the courses and distances of such |
9 | location from two or more permanent identifiable points or |
10 | landmarks on said tract boundary corners, the proposed angle and |
11 | direction of such well, if the well is to be deviated |
12 | substantially from a vertical course, the number or other |
13 | identification to be given the well, the workable coal seams, if |
14 | any, underlying the tract of land upon which the well is to be |
15 | drilled or altered, which are to be cased off in accordance with |
16 | section 207, and such information needed by the department to |
17 | administer this act. The applicant shall forward, by certified |
18 | mail, a copy of said plat to the surface landowner, all surface |
19 | landowners or water purveyors whose water supplies are within |
20 | 1,000 feet of the proposed well location, the owner and lessee, |
21 | if any, of such coal seams, and every coal operator required to |
22 | be identified on the well permit application and shall submit |
23 | proof of such notification with the well permit application. The |
24 | applicant shall provide, by certified mail, a copy of said plat |
25 | to the gas storage operator, when a proposed well or |
26 | unconventional well location is within 2,000 linear feet of a |
27 | gas storage reservoir protective boundary. With respect to |
28 | surface owners, notification shall be accomplished under this |
29 | section by sending notice to the persons to whom the tax notices |
30 | for said surface property are sent, as indicated in the |
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1 | assessment books in the county in which the property is located. |
2 | With respect to surface landowners or water purveyors whose |
3 | water supplies are within 1,000 feet of the proposed well |
4 | location, notification shall be made on forms and in a manner |
5 | prescribed by the department sufficient to identify, for such |
6 | persons, the rights afforded them under section 208 and the |
7 | advisability of taking their own predrilling or prealteration |
8 | survey. If the applicant submits to the department written |
9 | approval of the proposed well location by the surface landowner |
10 | and the coal operator, lessee or owner, if any, of the coal |
11 | underlying the proposed well location and no objections are |
12 | raised by the department within 15 days of filing or if no such |
13 | approval has been submitted and no objections are made to such |
14 | proposed well location within 15 days from receipt of such |
15 | notice by the surface landowner and the coal operator, lessee or |
16 | owner, if any, or by the department, the same shall be filed and |
17 | become a permanent record of such location, subject to |
18 | inspection at any time by any interested person. |
19 | * * * |
20 | Section 202. Permit objections. |
21 | * * * |
22 | (b) (1) In case any well location referred to in section |
23 | 201(b) is made so that the well when drilled will penetrate |
24 | anywhere within the outside coal boundaries of any operating |
25 | coal mine or coal mine already projected and platted but not yet |
26 | being operated or within 1,000 linear feet beyond such |
27 | boundaries and the well when drilled or the pillar of coal about |
28 | the well will, in the opinion of the coal owner or operator, |
29 | unduly interfere with or endanger such mine, then the coal owner |
30 | or operator affected shall have the right to file objections in |
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1 | accordance with section 501 to such proposed location within 15 |
2 | days of the receipt by the coal operator of the plat provided |
3 | for in section 201(b). An alternative location at which the |
4 | proposed well could be drilled to overcome such objections |
5 | shall, if possible, be indicated. |
6 | (2) In the event the location of the well or unconventional |
7 | well referred to in section 201(b) is situated so that the well |
8 | or unconventional well, when drilled, will penetrate within |
9 | 2,000 linear feet of the protective boundary of a gas storage |
10 | reservoir and the well or unconventional well, when drilled, |
11 | will, in the opinion of the gas storage operator, unduly |
12 | interfere with or endanger such gas storage reservoir, then the |
13 | gas storage operator affected shall have the right to file |
14 | objections in accordance with section 501 to such proposed |
15 | location within 15 days of the receipt by the gas storage |
16 | operator of the plat provided for in section 201(b). An |
17 | alternative location, if available, at which the proposed well |
18 | could be drilled to overcome any such objections shall be |
19 | indicated by the gas storage operator to the department and the |
20 | well operator within 15 days of the receipt of the plat plan. |
21 | (3) If no such objections to the proposed location are filed |
22 | or if none are raised by the department within 15 days after |
23 | receipt of the plat by the gas storage facility operator, the |
24 | department shall proceed to issue or deny the permit. |
25 | (4) In the event the well operator and the gas storage |
26 | facility operator are unable to agree upon a drilling location, |
27 | their differences shall be submitted to a panel consisting of |
28 | one person selected by the objecting gas storage facility |
29 | operator, a second person selected by the permit applicant and a |
30 | third selected by the other two. Each party shall pay the fee of |
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1 | the panel member it selects and one-half the fee of the third |
2 | member. The panel shall convene a meeting within ten days of a |
3 | request to do so by either party. The parties shall submit their |
4 | positions to the panel within such time as the panel prescribes. |
5 | The panel shall receive written or oral information as it deems |
6 | appropriate. |
7 | (5) Based on the information it receives, the panel shall |
8 | choose the location, if any, on the permit applicant's tract |
9 | which: |
10 | (i) Permits the proposed well or unconventional well to be |
11 | drilled without endangering the safety of the persons working at |
12 | the gas storage facility. |
13 | (ii) Ensure the integrity of the gas contained within the |
14 | gas storage facility. |
15 | (6) The panel shall make its recommendation within ten days |
16 | of the close of the meeting and shall immediately submit it to |
17 | the department and the parties. |
18 | (7) Within 20 days from the receipt of a panel's |
19 | recommendation, the department shall proceed to issue a permit |
20 | with the location of the well or the unconventional well as |
21 | recommended by the panel. |
22 | (8) In the event the department determines that the well or |
23 | unconventional well cannot be safely drilled or the integrity of |
24 | the gas storage facility will be compromised, it shall notify |
25 | the panel and the parties describing the reasons for its |
26 | determination. The department may direct the panel to submit |
27 | another recommendation or on its own identify an alternate |
28 | location. Upon issuance of the permit, the department shall |
29 | indicate the new location on the plat plan on file with the |
30 | department. |
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1 | (9) If no such objections to the proposed location are filed |
2 | or if none are raised by the department within 15 days after |
3 | receipt of the plat by the coal operator or owner or if written |
4 | approval by the coal operator or owner of the location is filed |
5 | with the department and no objections are raised by the |
6 | department within 15 days of filing, the department shall |
7 | proceed to issue or deny the permit. |
8 | * * * |
9 | Section 3. The act is amended by adding a section to read: |
10 | Section 217. Protection of gas storage reservoirs. |
11 | (a) A gas storage facility operator shall log any well or |
12 | unconventional well drilled through a storage reservoir. The gas |
13 | storage facility operator shall have the right to obtain |
14 | information about the drilling plan and operation from the |
15 | operator of a well or unconventional well in advance of drilling |
16 | through a gas storage reservoir. The operator of a well or |
17 | unconventional well shall grant, within reasonable time frames |
18 | to representatives of the gas storage facility, permission to |
19 | inspect the well or unconventional well-drilling operations. |
20 | (b) When a well or unconventional well is to be drilled at a |
21 | location within 2,000 linear feet of a gas storage reservoir |
22 | protective boundary, the department and the gas storage |
23 | operator, owner or lessee shall be given at least 72 hours' |
24 | written notice prior to commencing any activities by the |
25 | operator of a well or unconventional well designed to provide |
26 | protection of the gas storage reservoir. |
27 | (c) All costs of protecting a gas storage facility and all |
28 | costs of measured gas loss from a natural gas facility shall be |
29 | borne by the operator of the well or unconventional well that |
30 | was drilled into the natural gas storage reservoir. Prior to |
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1 | commencing the drilling operation, the gas storage facility |
2 | operator and the operator of a well or unconventional well must |
3 | agree on these costs. |
4 | (d) The operator of the well or unconventional well that is |
5 | drilled into the natural gas storage reservoir shall agree in |
6 | writing that for any horizontal well lateral trajectory there |
7 | will not be any stimulation either through hydraulic fracturing |
8 | or other technology that will propagate a microseismic event in |
9 | the formation to occur within 300 feet above and below the |
10 | storage interval. |
11 | (e) An operator of a well or unconventional well proposing |
12 | to locate a well within 2,000 linear feet of the gas storage |
13 | pool protective limits shall supply the gas storage facility |
14 | operator with copies of the laboratory analysis taken from any |
15 | water wells or natural springs which the operator of a well or |
16 | unconventional well is required to sample as part of a |
17 | prealteration survey. The gas storage facility operator shall be |
18 | supplied copies of follow-up postinstallation surveys and |
19 | laboratory analyses for a period of five years. |
20 | (f) The permit application for drilling a well within 2,000 |
21 | linear feet of a protective gas storage pool boundary shall |
22 | address, for those wells that penetrate the storage interval, |
23 | the manner in which the well will be plugged at the end of its |
24 | economic life. |
25 | Section 4. Section 306(a) of the act is amended to read: |
26 | Section 306. Reliance on maps; burden of proof. |
27 | (a) In determining whether a particular well, unconventional |
28 | well, coal mine or operating coal mine is or will be within any |
29 | distance material under this act from any storage reservoir, the |
30 | owner or operator of such well, unconventional well, coal mine |
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1 | or operating coal mine and the storage operator may rely on the |
2 | most recent map of the storage reservoir or coal mine filed by |
3 | the other with the department. |
4 | * * * |
5 | Section 5. This act shall take effect in 60 days. |
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