Bill Text: PA HB1887 | 2011-2012 | Regular Session | Introduced

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Bill Title: In preliminary provisions, further providing for definitions; in general requirements, further providing for well permits, for well location restrictions, for well site restoration, for protection of fresh groundwater and casing requirements, for protection of water supplies, for well reporting requirements and for bonding; in miscellaneous provisions, further providing for penalties, for civil penalties and production of materials, witnesses, depositions and rights of entry and for third party liability; and providing for well control specialists.

Spectrum: Partisan Bill (Republican 25-0)

Status: (Introduced - Dead) 2011-10-04 - Referred to ENVIRONMENTAL RESOURCES AND ENERGY [HB1887 Detail]

Download: Pennsylvania-2011-HB1887-Introduced.html

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PRINTER'S NO. 2486
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1887 Session of2011
INTRODUCED BY BAKER, CLYMER, AUMENT, GEIST, BARRAR, R. BROWN, CREIGHTON, DAY, EMRICK, EVERETT, GABLER, GINGRICH, GROVE, HARHART, HARPER, HARRIS, MILLER, MURT, REICHLEY, SCAVELLO, SCHRODER, STEPHENS AND SWANGER, OCTOBER 4, 2011
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, OCTOBER 4, 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, for
well location restrictions, for well site restoration, for
protection of fresh groundwater and casing requirements, for
protection of water supplies, for well reporting requirements
and for bonding; in miscellaneous provisions, further
providing for penalties, for civil penalties and production
of materials, witnesses, depositions and rights of entry and
for third party liability; and providing for well control
specialists.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 103 of the act of December 19, 1984
(P.L.1140, No.223), known as the Oil and Gas Act, is amended by
adding definitions 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:
* * *
"Conventional well." A well utilizing traditional drilling
techniques to produce natural gas from geological formation
above the base of the Elk Sandstone formation.
* * *
"Unconventional formation." A geological formation
containing natural gas known to exist below the base of the Elk
Sandstone formation or its geologic equivalent stratigraphic
interval, including the Burket, Marcellus, Mandata and Utica
Shale formations.
"Unconventional well." A bore hole drilled or being drilled
for the purpose of or to be used for producing oil or gas from a
geological 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 vertical or horizontal
well bores stimulated by hydraulic fracture treatments or by
using multilateral well bores or other techniques to expose more
of the formation of the well bore.
* * *
Section 2. Sections 201(b), (e)(5) and (g), 205 and 206(c)
of the act are amended to read:
Section 201. Well permits.
20110HB1887PN2486 - 2 -
* * *
(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
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, a copy of any lease agreements or similar
documentation acknowledging the applicant's right to extract oil
or gas from under the surface of the proposed well location at
the request of the department, the name of all surface
landowners or water purveyors whose water supplies are within
1,000 feet of a conventional well and 2,500 feet of an
unconventional well, 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 conventional well location
and 2,500 feet of a proposed unconventional well location in the
municipality where the proposed well is to be located and any
20110HB1887PN2486 - 3 -
municipality within 2,500 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. 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 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] a proposed conventional well
location and 2,500 feet of a proposed unconventional 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.
* * *
(e) The department shall issue a permit within 45 days of
the submission of a permit application unless the department
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denies the permit application for one or more of the five
reasons set forth below: Provided, however, That the department
shall have the right to extend such period for 15 days for cause
shown upon notification to the applicant of the reasons for that
extension. The department may impose such permit terms and
conditions as are necessary to assure compliance with this act
and other laws administered by the department. The department
shall have the authority to deny a permit to any person for the
following reasons:
* * *
(5) the applicant, with respect to any other well or
wells which the applicant operates, is in continuing
violation or has failed to correct any violation of this act
or any other applicable statute administered by the
department. The applicant shall have the right to appeal any
determination of violations by the department. The right of
the department to deny a permit under this paragraph shall
not be effective until [a final administrative determination
has been made of any of these violations and no appeal is
pending in which a stay has been granted] the applicant has
had the opportunity to appeal any such violation and failed
to do so or, if an appeal has been filed, no supersedeas has
been issued by the Environmental Hearing Board.
* * *
(g) The well operator shall post in a conspicuous manner at
each location for an unconventional gas or oil well and all
related facilities the following information: the well permit
number and operator's name, address and telephone number, the
department's emergency response telephone number, the local
emergency response telephone number and the physical street
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address or similar physical description of the location of the
well and shall [be posted] post the same information at the
drilling site, in a conspicuous manner, prior to commencement of
drilling or, in the case of any related facility, no later than
the time construction on the facility begins. The well operator
shall ensure that the physical street address or similar
physical description along with Global Positioning System
coordinates is provided to the county emergency management
organization within the county where the unconventional gas or
oil well or related facilities are located.
* * *
Section 205. Well location restrictions.
(a) [Wells may not be drilled within 200] Conventional wells
may not be drilled within 200 feet and unconventional wells may
not be drilled within 500 feet measured horizontally from any
existing building or existing water well without the written
consent of the owner thereof. Where the distance restriction
would deprive the owner of the oil and gas rights of the right
to produce or share in the oil or gas underlying said surface
tract, the well operator may be granted a variance from said
distance restriction upon submission of a plan which shall
identify the additional measures, facilities or practices to be
employed during well site construction, drilling and operations.
The variance, if granted, shall include such additional terms
and conditions as the department shall require to insure the
safety and protection of affected persons and property. The
provisions may include insurance, bonding and indemnification,
as well as technical requirements.
(b) [No well site may be prepared or well drilled within 100
feet measured horizontally] Conventional wells may not be
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drilled within 100 feet and unconventional wells may not be
drilled within 300 feet measured from the well bore and 100 feet
from the edge of the area of disturbed ground from any stream,
spring or body of water [as identified on the most current 7 1/2
minute topographic quadrangle map of the United States
Geological Survey] or within 100 feet of any wetlands greater
than one acre in size. The department may waive such distance
restrictions upon submission of a plan which shall identify the
additional measures, facilities or practices to be employed
during well site construction, drilling and operations. Such
waiver, if granted, shall impose such permit conditions as are
necessary to protect the waters of the Commonwealth. The
department may establish and require additional protective
measures or best management practices as is necessary to protect
streams designated as either Exceptional Value or High Quality,
or any stream, spring, body of water or wetland greater than one
acre in size within 500 feet of any site to be used for the
storage of hazardous chemicals or materials to be used at a well
site.
(c) The department shall, on making a determination on a
well permit, consider the impact of the proposed well on public
resources to include, but not be limited to, the following:
(1) Publicly owned parks, forests, gamelands and
wildlife areas.
(2) National or State scenic rivers.
(3) National natural landmarks.
(4) Habitats of rare and endangered flora and fauna and
other critical communities.
(5) Historical and archaeological sites listed on the
Federal or State list of historic places.
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(6) Public drinking water sources.
(7) A well's location within a floodplain.
Section 206. Well site restoration.
* * *
(c) Within nine months after completion of drilling of any
well, the owner or operator shall restore the well site, remove
or fill all pits used to contain produced fluids or industrial
wastes and remove all drilling supplies and equipment not needed
for production. Drilling supplies and equipment not needed for
production may be stored on the well site if the express written
consent of the surface landowner is obtained. The department may
extend this time period when the department determines that an
extension would result in less surface disturbance, increased
water reuse or more efficient development of the resource. The
department shall work with the well operator in identifying a
definitive time period for such an extension, but a final
decision on the time extension shall be at the sole discretion
of the department. The department may impose interim restoration
measures as necessary for the time period covered by the
extension.
* * *
Section 3. Section 207 of the act is amended by adding
subsections to read:
Section 207. Protection of fresh groundwater; casing
requirements.
* * *
(e) The department shall ensure the capability of any
facility for which a National Pollutant Discharge Elimination
System permit has been applied to be used for the treatment of
waste water related to hydraulic fracturing operations and the
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competency of any individual operating the facility.
(f) The department shall inspect each drilling site as
frequently as is necessary to ensure compliance with the laws of
this Commonwealth. The department shall inspect any drilling
sites upon the completion of any erosion and sedimentation
control measures for which a permit has been issued under 25 Pa.
Code Ch. 102 (relating to erosion and sediment control) prior to
the commencement of drilling activities.
(g) Each well operator shall provide notice to the
department not later than 24 hours prior to the commencement of
cementing and casing strings, pressure testing of production
casing strings, well stimulation and hydraulic fracturing and
plugging and abandonment of a well.
Section 4. Section 208(a) of the act is amended to read:
Section 208. Protection of water supplies.
(a) Any well operator who affects a public or private water
supply by pollution or diminution shall restore or replace the
affected supply with an alternate source of water adequate in
quantity or quality for the purposes served by the supply.
Restored or replaced water supplies shall meet all Federal and
State safe drinking water standards under the Safe Drinking
Water Act (Public Law 93-523, 88 Stat. 1660) and 25 Pa. Code Ch.
109 (relating to safe drinking water).
* * *
Section 5. Section 212(b) of the act, amended March 22, 2010
(P.L.169, No.15), is amended to read:
Section 212. Well reporting requirements.
* * *
(b) (1) It shall be the duty of the well operator to keep
records of any well drilled or altered. A record of the well
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containing such information as required by regulation shall
be filed with the department within 30 days of cessation of
drilling. A completion report containing such additional
information as required by regulation shall be filed with the
department within 30 days after the completion of the well
and it shall be kept on file by the department. Within 90
days after the completion of drilling or recompletion of a
well, if requested by the department, the well operator shall
submit a copy of the electrical, radioactive or other
standard industry logs if they have been run. In addition, if
requested by the department within one year, the well
operator shall file a copy of drill stem test charts,
formation water analysis, porosity, permeability or fluid
saturation measurements, core analysis and lithologic log or
sample description or other similar data as compiled. No such
information shall be required unless the well operator has
had such information compiled in the ordinary course of
business. No interpretation of the data is to be filed.
(2) For any unconventional wells, the department shall
require a well stimulation record as part of a completion
report. The well stimulation record shall contain the
following information and be posted on the department's
publicly accessible Internet website:
(i) The pump rate at which the well operates.
(ii) The pressure and total volume of the well.
(iii) A list of any hazardous chemicals used for
hydraulic fracturing.
(iv) An identification of any water sources in a
department-approved water management plan within 2,500
feet of the well.
20110HB1887PN2486 - 10 -
(v) The depth at which any potable aquifers exist.
(vi) A record of any methane encountered at levels
other than the target formation.
(vii) Any electrical, radioactive or other industry
standard logs, if available.
(viii) Other information as required by the
department.
Section 6. Section 215(d.1) of the act, amended July 2, 1992
(P.L.365, No.78), is amended to read:
Section 215. Bonding.
* * *
(d.1) (1) An individual who cannot obtain a bond to drill
new wells due to an inability to demonstrate financial
resources may meet the collateral bond requirements of
subsection (a) by making phased deposits of collateral to
fully collateralize the bond. Such individuals shall be
limited to drilling ten new wells per calendar year. The
individual shall, for each well to be drilled, deposit $500
and shall, thereafter, annually deposit 10% of the remaining
bond amount for a period of ten years. Interest accumulated
by the collateral shall become a part of the bond until such
time as the collateral, plus accumulated interest, equals the
amount of the required bond. The collateral shall be
deposited, in trust, with the State Treasurer as provided in
subsection (a) or with a bank selected by the department
which shall act as trustee for the benefit of the
Commonwealth, to guarantee the individual's compliance with
the drilling, water supply replacement, restoration and
plugging requirements of this act. The individual shall be
required to pay all costs of the trust.
20110HB1887PN2486 - 11 -
(2) Individuals may continue to use phased collateral to
obtain permits so long as they have not missed any payments
for wells drilled under this provision and so long as they
remain in compliance with this act and regulations and
permits issued thereunder. If an individual has missed any
payments for wells under this subsection, the operator shall:
(i) immediately submit the appropriate bond amount
in full; or
(ii) cease all operations and plug the wells in
accordance with section 210.
(3) The Environmental Quality Board may, by regulation,
develop any alternative financial assurance requirements in
which an operator may voluntarily choose to participate. An
operator participating in an alternative financial assurance
requirement under this paragraph may be exempt from a bond
specified under subsection (a). Alternative financial
assurance may be in the form of an insurance policy, trust
fund or other financial security providing for full coverage
of an operator's well plugging liability as determined by the
Environmental Quality Board. Any alternative financial
assurance may only be used to plug wells upon abandonment and
may not be forfeited or otherwise recovered for violations of
this act.
For the purposes of this subsection an "individual" is defined
as an applicant who is a natural person doing business under his
own name.
* * *
Section 7. Sections 505, 506, 508(a) and 511 of the act are
amended to read:
Section 505. Penalties.
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(a) Any person who violates any provisions of the act is
guilty of a [summary offense] misdemeanor in the second degree
and, upon conviction thereof, shall be sentenced to pay a fine
of [not more than $300] $2,500 up to a maximum of $25,000 or
undergo imprisonment of not more than [90 days] two years, or
both. Each day's continuance of such violation shall be a
separate and distinct offense.
(b) Any person who willfully violates any provisions of this
act or any order of the department issued pursuant to the
provisions of this act is guilty of a [misdemeanor] felony of
the third degree and, upon conviction thereof, shall be
sentenced to pay a fine of [not more than] $5,000 up to a
maximum of $50,000 or undergo imprisonment of not more than [one
year] five years, or both. Each day's continuance of such
violation shall be a separate distinct offense.
(c) The department shall have the authority to institute
prosecutions against any person or municipality under this act.
Section 506. Civil penalties.
(a) In addition to proceeding under any other remedy
available at law or in equity for a violation of a provision of
this act or a [rule or regulation of the department or any order
of the department, the Environmental Hearing Board, after
hearing,] department rule, regulation or order, the department
may assess a civil penalty upon a person for such violation.
Such a penalty may be assessed whether or not the violation was
willful. The civil penalty so assessed shall not exceed $25,000,
plus $1,000 for each day of continued violation for convention
wells and $50,000, plus $2,000 for each day of continued
violation for unconventional wells.
(b) In determining the amount of the civil penalty, the
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board shall consider the willfulness of the violation, damage or
injury to the natural resources of the Commonwealth or their
uses, endangerment of the safety of others, costs of remedying
the harm, savings resulting to the person in consequence of such
violation and other relevant factors.
(c) [It] The civil penalty shall be payable to the
Commonwealth and shall be collectible in any manner provided at
law for the collection of debts.
(d) Those charged with a violation shall remit the penalty
within 30 days of receiving official notification from the
department. The operator may contest the amount of the
violation, and if so, the amount of the penalty shall be placed
in an escrow account established by the department.
(e) If any person liable to pay any such penalty neglects or
refuses to timely pay the same after demand, the amount,
together with interest and any costs that may accrue, shall be a
lien in favor of the Commonwealth upon the property, both real
and personal, of such person but only after same has been
entered and docketed of record by the prothonotary of the county
where such is situated. The board may, at any time, transmit to
the prothonotaries of the respective counties certified copies
of all such liens, and it shall be the duty of each prothonotary
to enter and docket the same of record in his office and to
index the same as judgments are indexed, without requiring the
payment of costs as a condition precedent to the entry thereof.
Section 508. Production of materials; witnesses; depositions;
rights of entry.
(a) (1) The department [is authorized to] shall make such
inspections, conduct such tests or sampling or examine books,
papers and records pertinent to any matter under
20110HB1887PN2486 - 14 -
investigation pursuant to this act as it deems necessary to
determine compliance with this act and, for this purpose, the
duly authorized agents and employees of the department are
authorized at all reasonable times to enter and examine any
property, facility, operation or activity.
(2) The department shall inspect each drilling pad or
location as frequently as necessary to determine compliance
with this act. Each unconventional well shall be inspected no
fewer than four times throughout the unconventional well
construction and completion phase.
* * *
Section 511. Third party and well operator liability.
(a) Where a person other than the well operator as herein
defined renders a service or product to a well or well site,
that person shall be jointly and severally liable with the well
owner or operator for violations of this act arising out of and
caused by his actions at the well or well site.
(b) Where the department enters into a contract with a well
control specialist to provide emergency response services at a
well site and incurs expense under the contract, the well
operator shall be liable to the department for such expense.
Section 8. The act is amended by adding a section to read:
Section 604.1. Well control specialists.
(a) The department may enter into a contract with a well
control specialist to provide emergency response services at a
well site.
(b) A well control specialist that has entered into a
contract with the department shall be immune from civil immunity
for all actions taken in the performance of the contract, except
for intentional misconduct or gross negligence.
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Section 9. This act shall take effect immediately.
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