Bill Text: PA HB1950 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Providing for an unconventional gas well fee and for transfers from the Oil and Gas Lease Fund; providing for distribution of fees and transfers; establishing the Natural Gas Energy Development Program; consolidating the Oil and Gas Act with modifications and additions relating to definitions, well permits, permit objections, comments by municipalities and storage operators, well location restrictions, well site restoration, protection of water supplies, notification to public drinking water systems, containment for unconventional wells, transportation records regarding wastewater fluids, corrosion control requirements, gathering lines, well control emergency response, hydraulic fracturing chemical discharge requirements, bonding, air containment emissions, public nuisances, enforcement orders, well control emergency cost recovery, penalties, civil penalties, inspection and production of materials, witnesses, depositions and rights of entry, third party liability and inspection reports; providing for local ordinances relating to oil and gas operations and for responsibility for fee; making an appropriation; and making a related repeal.

Spectrum: Moderate Partisan Bill (Republican 18-3)

Status: (Passed) 2012-02-14 - Act No. 13 [HB1950 Detail]

Download: Pennsylvania-2011-HB1950-Amended.html

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SENATE AMENDED
PRIOR PRINTER'S NOS. 2689, 2765, 2777 PRINTER'S NO. 2837
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1950 Session of2011
INTRODUCED BY ELLIS, S. H. SMITH, TURZAI, SAYLOR, REED, ADOLPH, MAJOR, STEVENSON, VEREB, ROSS, GROVE, MARSHALL, HELM, VULAKOVICH, P. COSTA, GERGELY, MOUL, CHRISTIANA, TALLMAN, EVERETT AND K. SMITH, NOVEMBER 1, 2011
SENATOR M. WHITE, ENVIRONMENTAL RESOURCES AND ENERGY, IN SENATE, AS AMENDED, DECEMBER 7, 2011
AN ACT
Amending Titles 27 (Environmental Resources) and 58 (Oil and <--
Gas) of the Pennsylvania Consolidated Statutes, requiring
rents and royalties from oil and gas leases of Commonwealth
land to be placed in a special fund to be used for
conservation, recreation, dams, flood control and certain
interfund transfers; authorizing the Secretary of
Conservation and Natural Resources to determine the need for
and location of such projects and to acquire the necessary
land; providing for interfund transfer; establishing the
Keystone Transit Program; providing a transfer of funds from
the Oil and Gas Lease Fund to the Department of Environmental
Protection for a competitive grant program for the transition
of small mass transit bus fleets to compressed natural gas;
establishing the Clean Transit Program; providing a transfer
of funds from the Oil and Gas Lease Fund to the Department of
Environmental Protection for a loan program for the
transition of large mass transit bus fleets to compressed
natural gas; authorizing counties to impose and collect an
unconventional gas well impact fee; providing for
distribution of fees and for the Oil and Gas Lease Fund;
consolidating the Oil and Gas Act with modifications and
additions; providing for local ordinances relating to oil and
gas operations; and repealing an act relating to the
establishment of the Oil and Gas Lease Fund and the Oil and
Gas Act.
Amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated <--
Statutes, consolidating the Oil and Gas Act with
modifications relating to definitions, well permits, well
location restrictions, protection of water supplies, well
reporting requirements, bonding, enforcement orders,
penalties, civil penalties and local ordinances; providing
for containment, for transportation regulations, for
emergency response information, for notification to public
drinking water systems, for corrosion control requirements,
for gathering lines and for model ordinance; providing for
local ordinances relating to oil and gas operations; and
making a related repeal.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 27 of the Pennsylvania Consolidated <--
Statutes is amended by adding chapters to read:
CHAPTER 33
OIL AND GAS
Subchapter
A. (Reserved)
B. Oil and Gas Lease Fund
c. keystone transit
d. clean transit
SUBCHAPTER A
(RESERVED)
SUBCHAPTER B
OIL AND GAS LEASE FUND
Sec.
3301. Definitions.
3302. Oil and Gas Lease Fund.
3303. Powers and duties of secretary.
3304. Appropriation of moneys.
3305. Interfund transfers.
§ 3301. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Conservation and Natural
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Resources of the Commonwealth.
"Fund." The Oil and Gas Lease Fund established by this
subchapter.
"Secretary." The Secretary of Conservation and Natural
Resources of the Commonwealth.
§ 3302. Oil and Gas Lease Fund.
(a) Establishment.--The Oil and Gas Lease Fund is
established in the State Treasury.
(b) Deposits.--All rents and royalties from oil and gas
leases of any land owned by the Commonwealth, except rents and
royalties received from game and fish lands, shall be placed in
the fund to be used exclusively:
(1) for conservation, recreation, dams or flood control;
(2) to match any Federal grants which may be made for
any of the purposes enumerated in this subchapter; and
(3) for interfund transfers as provided in section 3305
(relating to interfund transfers).
§ 3303. Powers and duties of secretary.
The secretary shall have the following powers and duties:
(1) To determine, in the secretary's discretion, the
need for and the location of any project authorized by this
chapter.
(2) To acquire in the name of the Commonwealth by
purchase, condemnation or otherwise such lands as may be
needed.
§ 3304. Appropriation of moneys.
All the moneys from time to time paid into the fund are
specifically appropriated on a continuing basis to the
department to carry out the purposes of this subchapter.
§ 3305. Interfund transfers.
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Transfers shall be made between funds in the State Treasury
as follows:
(1) On July 1, 2013, and each July 1 thereafter, an
amount equal to 25% of the total moneys received from the
prior fiscal year shall be transferred from the fund to the
Environmental Stewardship Fund for the purpose of plugging
abandoned oil and gas wells and other uses authorized by law
for the Environmental Stewardship Fund.
(2) (i) Beginning July 1, 2014, a total of $40,000,000
shall be transferred from the fund to the Hazardous Sites
Cleanup Fund for the purpose of remedial response or
remedy at oil and gas well sites and other uses
authorized by law for the Hazardous Sites Cleanup Fund.
(ii) On July 1, 2015, and each July 1 thereafter,
the following shall apply:
(A) the sum of the amount transferred under
subparagraph (i) during the prior fiscal year; and
(B) an amount equal to the percentage change in
the Consumer Price Index for All Urban Consumers from
the prior fiscal year, multiplied by the amount in
clause (A),
shall be transferred from the fund to the Hazardous Sites
Cleanup Fund for the purpose specified in subparagraph
(i).
(3) On July 1, 2013, and each July 1 thereafter, an
amount equal to 5% of the total moneys received from the
prior fiscal year, but not to exceed $5,000,000, shall be
transferred from the fund to the several counties, school
districts and townships entitled to receive payment from the
Commonwealth in lieu of taxes under the act of May 17, 1929
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(P.L.1798, No.591), referred to as the Forest Reserves
Municipal Financial Relief Law. The moneys transferred under
this paragraph shall be allocated to each county, school
district and township based on the number of acres of land in
the county, school district or township to which the payment
under that act applies in proportion to the aggregate number
of acres of all such lands of the counties, school districts
and townships in this Commonwealth.
(4) On July 1, 2013, and each July 1 thereafter, a total
of $15,000,000 shall be transferred from the fund to the
Conservation District Fund. These funds shall be distributed
in a manner consistent with the act of May 15, 1945 (P.L.547,
No.217), known as the Conservation District Law, and the
provisions of the State Conservation Commission's
Conservation District Fund Allocation Program—Statement of
Policy under 25 Pa. Code Ch. 83 Subch. B (relating to
Conservation District Fund Allocation Program—Statement of
Policy).
SUBCHAPTER C
KEYSTONE TRANSIT
Sec.
3311. Short title of subchapter.
3312. Definitions.
3313. Keystone Transit Program.
§ 3311. Short title of subchapter.
This subchapter shall be known and may be cited as the
Keystone Transit Act.
§ 3312. Definitions.
The following words and phrases when used in this subchapter
shall have the meanings given to them in this section unless the
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context clearly indicates otherwise:
"Dedicated compressed natural gas bus." A bus which runs
solely on compressed natural gas.
"Department." The Department of Environmental Protection of
the Commonwealth.
"Mass transit authority." An operator of regularly scheduled
transportation that is available to the general public and is
provided according to published schedules along designated
published routes with specified stopping points for the taking
on and discharging of passengers. The term does not include
exclusive ride taxi services, charter or sightseeing services,
nonpublic transportation or school bus or limousine services.
"Program." The Keystone Transit Program.
"Small mass transit authority." A mass transit authority
located in this Commonwealth that does not exceed 245,000
revenue vehicle hours for two consecutive years.
§ 3313. Keystone Transit Program.
(a) Establishment.--The department shall establish and
administer the Keystone Transit Program.
(b) Purpose.--The program is established in order to
decrease emissions from mass transit buses by utilizing natural
gas as a vehicle fuel.
(c) Transfer of funds.--The State Treasurer shall transfer
from the Oil and Gas Lease Fund to the department the sum of
$5,000,000 to fund the program.
(d) Use of funds.--The sum of $5,000,000 shall be used to
fund competitive grants available to small mass transit
authorities for the purchase of new dedicated compressed natural
gas buses.
(e) Application process.--
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(1) A mass transit authority must complete and submit to
the department a keystone transit grant application.
(2) Approved applications must obligate the mass transit
authority to contract with a private company:
(i) to build exclusively with private funds; and
(ii) to maintain and operate any new compressed
natural gas fueling facility necessary to support
compressed natural gas buses purchased with funds
received under this subchapter.
(3) The term "operate" as used in this subsection shall
not include the actual act of fueling buses.
(f) Eligible costs.--
(1) Grant funds received under this subchapter shall be
eligible for:
(i) Federally assisted purchases of new dedicated
compressed natural gas buses and shall be limited to the
total percentage of the State and local match.
(ii) Nonfederally assisted bus purchases and shall
be limited to 50% of the total incremental cost of a new
dedicated compressed natural gas bus.
(2) The incremental cost shall be capped at $60,000 for
buses which have a gross vehicle weight rating over 26,000
pounds and $35,000 for buses with a gross vehicle weight
rating of 26,000 pounds and under.
(3) Buses with a gross vehicle weight rating of less
than 16,000 pounds shall be ineligible.
(4) Priority shall be given to those applications which
provide for public access to compressed natural gas vehicle
fueling dispensers.
(g) Grant program.--The department shall establish a formula
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and method for awarding of grants under the program consistent
with this subchapter.
(h) Appeal process.--Applicants that are not awarded grants
under this subchapter shall not have the right to a hearing or
the issuance of an adjudication under section 4 of the act of
July 13, 1988 (P.L.530, No.94), known as the Environmental
Hearing Board Act, regarding the department's decision.
SUBCHAPTER d
CLEAN TRANSIT
Sec.
3321. Short title of subchapter.
3322. Definitions.
3323. Clean Transit Program.
§ 3321. Short title of subchapter.
This subchapter shall be known and may be cited as the Clean
Transit Act.
§ 3322. Definitions.
The following words and phrases when used in this subchapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Dedicated compressed natural gas bus." A bus which runs
solely on compressed natural gas.
"Department." The Department of Environmental Protection of
the Commonwealth.
"Large mass transit authority." A mass transit authority
located in this Commonwealth that exceeds 245,000 revenue
vehicle hours for two consecutive years.
"Mass transit authority." An operator of regularly scheduled
transportation that is available to the general public and is
provided according to published schedules along designated
20110HB1950PN2837 - 8 -
published routes with specified stopping points for the taking
on and discharging of passengers. The term does not include
exclusive ride taxi services, charter or sightseeing services,
nonpublic transportation or school bus or limousine services.
"Program." The Clean Transit Program.
§ 3323. Clean Transit Program.
(a) Establishment.--The department shall establish and
administer the Clean Transit Program.
(b) Purpose.--The program is established in order to
decrease emissions from mass transit buses by utilizing natural
gas as a vehicle fuel.
(c) Transfer of funds.--The State Treasurer shall transfer
from the Oil and Gas Lease Fund to the department the sum of
$7,500,000 to fund the program.
(d) Use of funds.--The sum of $7,500,000 shall be deposited
into a fund to be administered by the department and made
available to large mass transit authorities for the purchase of
new dedicated compressed natural gas buses. The following shall
apply:
(1) The money in the fund is hereby appropriated on a
continuing basis to the Department of Environmental
Protection for the purposes provided for in this subchapter.
(2) No more than 1.5% of the fund may be used for
administration.
(3) The department may set terms applicable to loans in
any manner it deems appropriate, subject to the provisions of
this subchapter.
(e) Application process.--
(1) A mass transit authority must complete and submit to
the department a clean transit loan application.
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(2) Approved applications must obligate the mass transit
authority to contract with a private company:
(i) to build exclusively with private funds; and
(ii) to maintain and operate any new compressed
natural gas fueling facility necessary to support
compressed natural gas buses purchased with funds
received under this act.
(3) The term "operate" as used in this subsection shall
not include the actual act of fueling buses.
(f) Eligible costs.--
(1) Loan funds received under this subchapter shall be
eligible for:
(i) Federally assisted purchases of new dedicated
compressed natural gas buses and shall be limited to the
total percentage of the State and local match.
(ii) Nonfederally assisted bus purchases and shall
be limited to 50% of the total incremental cost of a new
compressed natural gas bus.
(2) The incremental cost shall be capped at $60,000 for
buses which have a gross vehicle weight rating over 26,000
pounds and $35,000 for buses with a gross vehicle weight
rating of 26,000 pounds and under.
(3) Buses with a gross vehicle weight rating of less
than 16,000 pounds shall be ineligible.
(4) Priority shall be given to those applications which
provide for public access to compressed natural gas vehicle
fueling dispensers.
(g) Loan program.--The department shall establish a formula
and method for awarding of loans under the program consistent
with this subchapter.
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(h) Fund repayment.--
(1) Loans disbursed from the fund under subsection (d)
shall be repaid to the Oil and Gas Lease Fund within five
years from disbursement and before June 30, 2021.
(2) On June 30, 2021, no money shall be deposited into
the fund and any remaining money in the fund shall be
transferred to the Oil and Gas Lease Fund.
(3) The interest rate for loans provided by the program
shall not exceed 2%.
(i) Appeal process.--Applicants that are not awarded grants
under this subchapter shall not have the right to a hearing or
the issuance of an adjudication under section 4 of the act of
July 13, 1988 (P.L.530, No.94), known as the Environmental
Hearing Board Act, regarding the department's decision.
CHAPTER 35
WELLS
Subchapter
A. Unconventional Gas Wells
B. (Reserved)
SUBCHAPTER A
UNCONVENTIONAL GAS WELLS
Sec.
3501. Short title.
3502. Definitions.
3503. Unconventional gas well impact fee.
3504. (Reserved).
3505. (Reserved).
3506. Administration.
3506.1. Well information.
3506.2. Payment confirmation.
20110HB1950PN2837 - 11 -
3506.3. County authority.
3506.4. Enforcement.
3506.5. Examinations.
3507. Deposit of fees.
3508. Allocation and distribution of fees.
3509. Calculation of payments.
3510. Recordkeeping and State reporting.
3511. Expiration.
§ 3501. Short title.
This subchapter shall be known and may be cited as the
Unconventional Gas Well Impact Act.
§ 3502. Definitions.
The following words and phrases when used in this subchapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Association." A partnership, limited partnership or any
other form of unincorporated enterprise owned or conducted by
two or more persons.
"Coal bed methane." Gas that can be produced from coal beds,
coal seams, mined-out areas or gob wells.
"Corporation." A corporation, joint stock association,
limited liability company, business trust or any other
incorporated enterprise organized under the laws of the United
States, this Commonwealth or any other state, territory or
foreign country or dependency.
"Department." The Department of Environmental Protection of
the Commonwealth.
"Highway mileage." The number of miles of public roads and
streets most recently certified by the Department of
Transportation as eligible for distribution of liquid fuels
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funds under the act of June 1, 1956 (1955 P.L.1944, No.655),
referred to as the Liquid Fuels Tax Municipal Allocation Law.
"Municipality." A city, borough, incorporated town or
township.
"Natural gas." A fossil fuel consisting of a mixture of
hydrocarbon gases, primarily methane, possibly including ethane,
propane, butane, pentane, carbon dioxide, oxygen, nitrogen and
hydrogen sulfide and other gas species. The term includes gas
from oil fields known as associated gas or casing head gas,
natural gas fields known as nonassociated gas, coal beds, shale
beds and other formations. The term does not include coal bed
methane.
"Nonproducing well." A natural gas well that produces an
average of less than 90,000 cubic feet of natural gas per day
during a calendar year.
"Operator." A person or its subsidiary, affiliate or holding
company that holds a permit or other authorization to engage in
the business of severing natural gas for sale, profit or
commercial use from an unconventional gas well in this
Commonwealth. The term does not include a person who severs
natural gas from a storage field.
"Person." A natural person or a corporation, fiduciary,
association or other entity, including the Commonwealth and any
of its political subdivisions, instrumentalities and
authorities. When the term is used in a provision prescribing
and imposing a penalty or imposing a fine or both, the term
shall include a member of an association and an officer of a
corporation.
"Rate." The rate under section 3503 (relating to
unconventional gas well impact fee).
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"Reporting period." The fiscal year in which an
unconventional gas well impact fee is assessed.
"Unconventional gas well." A bore hole drilled or being
drilled for the purpose of or to be used for producing oil or
gas from a geologic shale 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 one of the
following:
(1) Vertical or horizontal well bores stimulated by
hydraulic fracture treatments.
(2) Using multilateral well bores or other techniques to
expose more of the formation of the well bore.
"Unconventional gas well impact fee." A fee that is adopted
under section 3503 (relating to unconventional gas well impact
fee) on each unconventional gas well producing natural gas
within this Commonwealth.
§ 3503. Unconventional gas well impact fee.
(a) Imposition.--By enactment of an ordinance by the
governing body of a county, except as set forth in subsection
(b), a county may impose an unconventional gas well impact fee
on each unconventional gas well that is located on a well pad
and produces natural gas within the county.
(b) Exemptions.--The unconventional gas well impact fee
shall not be imposed on:
(1) nonproducing wells; or
(2) unconventional gas wells in which all of the natural
gas is used directly by a consumer at the site.
(c) Fee for existing unconventional gas wells.--The fee for
an unconventional gas well which is in existence on the
20110HB1950PN2837 - 14 -
effective date of the ordinance under subsection (a) shall be as
follows:
(1) For the first year following the effective date of
the ordinance, not more than $40,000.
(2) For the second year following the effective date of
the ordinance, not more than $30,000.
(3) For the third year following the effective date of
the ordinance, not more than $20,000.
(4) For the fourth year through the tenth year following
the effective date of the ordinance, not more than $10,000.
(d) Fee for new unconventional gas wells.--The fee for an
unconventional gas well drilled after the effective date of the
ordinance under subsection (a) shall be as follows:
(1) For the first year, not more than $40,000.
(2) For the second year, not more than $30,000.
(3) For the third year, not more than $20,000.
(4) For the fourth year through the tenth year, not more
than $10,000.
(e) Vertical unconventional gas well fee.--
(1) The fee for a vertical unconventional gas well shall
be not more than 25% of the fee established in subsections
(c) and (d).
(2) For purposes of this subsection, a vertical
unconventional gas well shall be defined as an unconventional
gas well that utilizes hydraulic fracture treatment through a
single vertical well bore.
(f) Prohibition.--
(1) Under no circumstances may an operator make an
unconventional gas well impact fee, or any other levy related
to the removal or extraction of natural gas, an obligation,
20110HB1950PN2837 - 15 -
indebtedness or liability of a landowner, leaseholder or
other person in possession of real property upon which such
removal or extraction occurs.
(2) Any provision of an agreement between an operator
and a landowner, leaseholder or other person in possession of
real property upon which removal or extraction of natural gas
occurs that violates paragraph (1) shall be null and void.
(3) This section shall be applicable to any agreement
entered into before, on or after the effective date of this
section.
(g) Retroactivity prohibited.--No fee shall be imposed to
cover a period of natural gas production which occurred prior to
the effective date of the ordinance.
§ 3504. (Reserved).
§ 3505. (Reserved).
§ 3506. Administration.
(a) Report.--By April 1 of the year after enactment of an
ordinance imposing a fee under this chapter and each April 1
thereafter, each operator shall submit a report and payment of
the fee with the county on a form prescribed by the department
for the previous calendar year. The report shall include the
following:
(1) The number of unconventional gas wells of an
operator in each municipality within the county.
(2) The total number of cubic feet of natural gas
severed by the operator for each unconventional gas well
identified under paragraph (1) during the previous calendar
year.
(3) The date that each unconventional gas well
identified under paragraph (1) began or ceased the production
20110HB1950PN2837 - 16 -
of natural gas.
(b) Fee due date.--The fee imposed under this chapter shall
be due by April 1 of the year after enactment of an ordinance
imposing the fee and each April 1 thereafter. The fee shall
become delinquent if not remitted to the county on the reporting
date.
(c) Public availability.--A report under this section shall
be a public record under the act of February 14, 2008 (P.L.6,
No.3), known as the Right-to-Know Law.
§ 3506.1. Well information.
(a) List.--Upon request, the department shall provide a
county with a list of all unconventional gas wells that have
received a well permit from the department issued under this
chapter. The list shall be updated on a monthly basis. In lieu
of providing the list to each county, the department may
maintain a list on its publicly accessible Internet website if
the list is updated on a monthly basis.
(b) Updates.--An operator shall notify the county within 30
days from the date the unconventional gas well began or ceased
the production of natural gas.
§ 3506.2. Payment confirmation.
Prior to issuing a permit to drill an unconventional gas well
in this Commonwealth, the department shall require the permit
applicant to certify in its well permit application that the
operator has paid all fees that may be owed under this chapter.
The department may deny a well permit application if it finds
that the operator falsified this certification.
§ 3506.3. County authority.
(a) Powers.--A county may make all inquiries and
determinations necessary to calculate and collect a fee imposed
20110HB1950PN2837 - 17 -
under this chapter, including, if applicable, interest and
penalties.
(b) Notice.--If a county determines that a fee imposed under
this chapter has not been paid in full, it may issue a notice of
the amount due and demand for payment and shall set forth the
basis for the determination.
(c) Address.--Notice of failure to pay the correct fee shall
be sent to the operator at its registered address via certified
mail.
(d) Time period.--A county may challenge the amount of a fee
paid under this chapter within three years after the date the
report under this chapter is filed.
(e) Intent.--If no report is filed or an operator files a
false or fraudulent return with the intent to evade a fee, an
assessment of the amount owed may be made at any time.
§ 3506.4. Enforcement.
(a) Assessment.--A county may assess interest on any
delinquent fee imposed under this chapter at the rate prescribed
under section 806 of the act of April 9, 1929 (P.L.343, No.176),
known as The Fiscal Code.
(b) Penalty.--In addition to the interest under subsection
(a), if an operator fails to make timely payment of the fee, a
penalty shall be added to the amount of the fee due. The amount
of the penalty shall be 5% for each month, or fraction of a
month, during which the failure continues, not to exceed 25% in
the aggregate.
(c) Timely payment.--If a county determines that an operator
has not made a timely payment of the fee, the county shall send
a written notice of the amount of the deficiency to the operator
within 30 days from the date of determining the deficiency. If
20110HB1950PN2837 - 18 -
the operator has not provided a complete and accurate statement
of the volume of natural gas extracted for the payment period,
the county may estimate the volume in its deficiency notice.
(d) Remedies.--The remedies provided under this chapter
shall be in addition to any other remedies provided at law or in
equity.
(e) Lien.--Fines, fees, interest and penalties shall be
collectible in the manner provided by law for the collection of
debts. If the operator liable to pay any amount neglects or
refuses to pay the amount after demand, the amount, together
with costs that may accrue, shall be a judgment in favor of the
county upon the property of the operator, if the judgment has
been entered and docketed of record by the prothonotary of the
county where the property is situated.
§ 3506.5. Examinations.
(a) Access.--A county which has imposed a fee under this
chapter, or its authorized agents or representatives, shall:
(1) Have access to the books, papers and records of any
operator in order to verify the accuracy and completeness of
a report filed or fee paid under this chapter.
(2) Require and compel the preservation and production
of all books, papers and records for any period deemed proper
not to exceed three years from the end of the calendar year
to which the records relate.
(3) Examine any employee of an operator concerning the
severing of natural gas subject to a fee or any matter
relating to the enforcement of this chapter.
(b) Unauthorized disclosure.--
(1) Any information obtained by a county as a result of
any report, examination, investigation or hearing under this
20110HB1950PN2837 - 19 -
section shall be confidential and shall be exempt from
disclosure under the provisions of the act of February 14,
2008 (P.L.6, No.3), known as the Right-to-Know Law, and shall
not be disclosed except in accordance with judicial order or
as otherwise provided by law.
(2) An individual unlawfully divulging the information
described under this subsection commits a misdemeanor and
shall, upon conviction, be sentenced to pay a fine of not
more than $1,000 and costs of prosecution or to imprisonment
for not more than one year, or both.
§ 3507. Deposit of fees.
(a) Establishment.--Each county imposing a fee under this
chapter shall establish an interest-bearing account designed
solely for fees.
(b) Deposit.--All fees collected by a county imposing a fee
under this chapter shall be deposited into the account described
under subsection (a).
§ 3508. Allocation and distribution of fees.
(a) Allocation of fees.--The fees deposited into the account
established under section 3507 (relating to deposit of fees)
shall be allocated as follows:
(1) Seventy-five percent of the fees shall be allocated
to the county and its municipalities in the manner provided
under subsection (b).
(2) Twenty-five percent of the fees shall be allocated
to the Commonwealth and distributed in the manner provided
under subsections (c) and (d).
(b) Distribution of fees to county and municipalities.--The
fees allocated to the county and its municipalities under
subsection (a)(1) shall be distributed as follows:
20110HB1950PN2837 - 20 -
(1) Thirty-six percent of the fees shall be retained by
the county where the producing unconventional gas wells are
located.
(2) Thirty-seven percent of the fees shall be
distributed to the municipalities where producing
unconventional gas wells are located. The amount for each
municipality shall be determined using a formula that divides
the number of producing unconventional gas wells in the
municipality by the number of producing unconventional gas
wells in the county and multiplies the resulting percentage
by the amount available for distribution under this
subparagraph.
(3) Twenty-seven percent of the fees shall be
distributed to all municipalities in the county where
producing unconventional gas wells are located as follows:
(i) Fifty percent shall be distributed to all
municipalities using a formula that divides the
population of the municipality within the county by the
total population of the county and multiplies the
resulting percentage by the amount available for
distribution to the county under this subparagraph.
(ii) Fifty percent shall be distributed to each
municipality using a formula that divides the highway
mileage of the municipality within the county by the
total highway mileage of the county and multiplies the
resulting percentage by the amount available for
distribution to the county under this subparagraph.
(c) Distribution of fees to Commonwealth.--The fees
allocated to the Commonwealth under subsection (a)(2) shall be
remitted to the Commonwealth for deposit into a restricted
20110HB1950PN2837 - 21 -
account in the General Fund of the Commonwealth dedicated solely
for fees. The funds are hereby appropriated and shall be
distributed as follows and as set forth under subsection (e):
(1) Seventy percent to the Department of Transportation
for road, bridge, rail and other transportation
infrastructure improvements to address impacts from
unconventional natural gas development.
(2) Ten and one-half percent to the department, not to
exceed $10,000,000 annually, for the regulation of
unconventional gas wells and the plugging of abandoned and
orphan gas wells within the Commonwealth.
(3) Seven and one-half percent to the Public Utility
Commission, not to exceed $2,000,000 annually, for the
enhancement, inspection and enforcement of pipeline safety
standards as required by law related to the safe transport of
gas and hazardous liquids.
(4) Four and one-half percent to the Pennsylvania
Emergency Management Agency, not to exceed $2,000,000
annually, for emergency response planning, training and
coordination associated with unconventional natural gas
production activity within the Commonwealth.
(5) Three and three-quarters percent to the Department
of Health, not to exceed $2,000,000 annually, for collecting
and disseminating information, preparing and conducting
health care provider outreach and education and investigating
health-related complaints and other uses associated with
unconventional natural gas production activity within this
Commonwealth.
(6) Three and three-quarters percent to the Office of
State Fire Commissioner, not to exceed $2,000,000 annually,
20110HB1950PN2837 - 22 -
for the development, delivery and sustainment of training
programs for first responders and acquisition of specialized
equipment necessary for emergency response.
(d) Additional distribution of fees to Department of
Transportation.--In addition to the distribution of fees to the
Department of Transportation under subsection (c)(1), any funds
remaining in the restricted account after distribution of fees
under subsection (c)(2), (3), (4), (5) and (6) are hereby
appropriated shall be distributed to the Department of
Transportation.
(e) Continuing nature.--
(1) The distributions under subsections (c) and (d)
shall be executive authorizations.
(2) The appropriations under subsections (c) and (d)
shall be continuing appropriations. Those appropriations
shall not lapse at the end of any fiscal year.
(f) Timing of distribution.--A county shall distribute the
fees authorized under this chapter within 45 days after the date
the fees are received.
(g) Use of funds by counties and municipalities.--A county
or municipality receiving fees under this section shall make use
of the fees received only for the following purposes associated
with unconventional natural gas production within the county or
municipality:
(1) Construction, reconstruction, maintenance and repair
of roadways, bridges and public infrastructure.
(2) Water, storm water and sewer systems, including
construction, reconstruction, maintenance and repair.
(3) Emergency preparedness and response, including
police, fire, hazardous material response, 911, equipment
20110HB1950PN2837 - 23 -
acquisition, responder recruitment and other services.
(4) Preservation and reclamation of surface and
subsurface waters and water supplies, including drinking
water monitoring and testing.
(5) Records management, geographic information systems
and information technology.
(6) Projects that increase the availability of
affordable housing, either for sale or rental, to residents
whose annual income is less than the area median income.
(7) Delivery of social services, including domestic
relations, drug and alcohol treatment, job training and
counseling.
(8) Assistance to the county conservation district for
inspection, oversight and enforcement of unconventional
natural gas development.
(9) County or municipal planning.
(10) Local tax reduction.
(11) Career and technical centers for training of
workers in the oil and gas industry.
§ 3509. Calculation of payments.
(a) General rule.--The county treasurer of a county that
imposes and collects the unconventional gas well impact fee
shall certify the number of all unconventional gas wells located
within each municipality of the county based upon the
appropriate reports provided by the department.
(b) Payments to municipalities.--The county treasurer of a
county that imposes and collects the unconventional gas well
impact fee shall pay to municipalities the amounts required
under this subchapter.
§ 3510. Recordkeeping and State reporting.
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(a) General rule.--Commencing in calendar year 2013 and
each year thereafter, before December 1, each county that
imposes and collects the unconventional gas well impact fee
authorized by this subchapter shall prepare and deliver a report
to the Secretary of the Senate and the Chief Clerk of the House
of Representatives detailing the expenditure of the funds
collected under this subchapter.
(b) Audit.--The Department of Community and Economic
Development may audit a county's and municipality's expenditure
of the funds.
(c) Availability of records.--A county and municipality that
receives the funds shall make its financial records and other
documents relating to its expenditure of the funds available to
the department.
(d) Time.--Reports shall be prepared no later than June 30
of the year following the initial receipt of any fees
distributed under this section and each June 30 thereafter.
(e) Location.--Reports shall be published on the county or
municipality's publicly accessible Internet website. If a
municipality does not maintain a publicly accessible Internet
website, the municipality shall provide its report to the
county, which shall publish the municipality's report on the
county's publicly accessible Internet website.
§ 3511. Expiration.
(a) Notice.--The Secretary of the Commonwealth shall, upon
the effective date of an act authorizing a severance tax on each
unconventional gas well producing gas in this Commonwealth,
submit for publication in the Pennsylvania Bulletin notice of
that fact.
(b) Date.--This chapter shall expire on the date of the
20110HB1950PN2837 - 25 -
publication of the notice under subsection (a).
SUBCHAPTER B
(RESERVED)
Section 2. Title 58 is amended by adding parts to read:
PART I
PRELIMINARY PROVISIONS
(RESERVED)
PART II
(RESERVED)
PART III
UTILIZATION
Chapter
31. (Reserved)
32. Development
CHAPTER 31
(RESERVED)
CHAPTER 32
DEVELOPMENT
Subchapter
A. Preliminary Provisions
B. General Requirements
C. Underground Gas Storage
D. Eminent Domain
E. Enforcement and Remedies
F. Miscellaneous Provisions
SUBCHAPTER A
PRELIMINARY PROVISIONS
Sec.
3201. Scope of chapter.
3202. Declaration of purpose.
20110HB1950PN2837 - 26 -
3203. Definitions.
§ 3201. Scope of chapter.
This chapter relates to oil and gas.
§ 3202. Declaration of purpose.
The purposes of this chapter are to:
(1) Permit optimal development of oil and gas resources
of this Commonwealth consistent with protection of the
health, safety, environment and property of Pennsylvania
citizens.
(2) Protect the safety of personnel and facilities
employed in coal mining or exploration, development, storage
and production of natural gas or oil.
(3) Protect the safety and property rights of persons
residing in areas where mining, exploration, development,
storage or production occurs.
(4) Protect the natural resources, environmental rights
and values secured by the Constitution of Pennsylvania.
§ 3203. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Abandoned well." Any of the following:
(1) A well:
(i) that has not been used to produce, extract or
inject any gas, petroleum or other liquid within the
preceding 12 months;
(ii) for which equipment necessary for production,
extraction or injection has been removed; or
(iii) considered dry and not equipped for production
within 60 days after drilling, redrilling or deepening.
20110HB1950PN2837 - 27 -
(2) The term does not include wells granted inactive
status.
"Alteration." An operation which changes the physical
characteristics of a well bore, including stimulation or
removing, repairing or changing the casing. For the purpose of
this chapter only, the term does not include:
(1) Repairing or replacing of the casing if the activity
does not affect the depth or diameter of the well bore, the
use or purpose of the well does not change and the activity
complies with regulations promulgated under this chapter,
except that this exclusion does not apply:
(i) to production casings in coal areas when the
production casings are also the coal protection casings;
or
(ii) when the method of repairing or replacing the
casing would affect the coal protection casing.
(2) Stimulation of a well.
"Board." The Oil and Gas Technical Advisory Board.
"Bridge." An obstruction placed in a well at any depth.
"Building." An occupied structure with walls and roof within
which persons live or customarily work.
"Casing." A string or strings of pipe commonly placed in
wells drilled for natural gas or petroleum.
"Cement" or "cement grout." Any of the following:
(1) Hydraulic cement properly mixed with water only.
(2) A mixture of materials adequate for bonding or
sealing of well bores as approved by regulations promulgated
under this chapter.
"Coal mine." Any of the following:
(1) Operations in a coal seam, including excavated
20110HB1950PN2837 - 28 -
portions, abandoned portions and places actually being
worked.
(2) Underground workings and shafts, slopes, tunnels and
other ways and openings, including those which are in the
course of being sunk or driven, along with all roads and
facilities connected with them below the surface.
"Coal operator." A person that operates or proposes to
operate a coal mine as an owner or lessee.
"Completion of a well." The date after treatment, if any,
that the well is properly equipped for production of oil or gas,
or, if the well is dry, the date that the well is abandoned.
"Department." The Department of Environmental Protection of
the Commonwealth.
"Drilling." The drilling or redrilling of a well or the
deepening of an existing well.
"Environmental law." Any of the following:
(1) A Federal statute pertaining to oil and gas
operations, public health, safety, natural resources or the
environment.
(2) A Federal regulation, rule, administrative order or
agency interpretation or guidance pertaining to oil and gas
operations, public health, safety, natural resources or the
environment.
(3) A Federal judicial decision pertaining to oil and
gas operations, public health, safety, natural resources or
the environment.
(4) A Commonwealth statute pertaining to oil and gas
operations, public health, safety, natural resources or the
environment. The term includes any of the following:
(i) The act of June 22, 1937 (P.L.1987, No.394),
20110HB1950PN2837 - 29 -
known as The Clean Streams Law.
(ii) The act of January 8, 1960 (1959 P.L.2119,
No.787), known as the Air Pollution Control Act.
(iii) The act of July 7, 1961 (P.L.518, No.268),
known as the Delaware River Basin Compact.
(iv) The act of July 25, 1961 (P.L.825, No.359),
known as the Oil and Gas Conservation Law.
(v) The act of July 17, 1968 (P.L.368, No.181),
referred to as the Susquehanna River Basin Compact Law.
(vi) The act of October 4, 1978 (P.L.864, No.167),
known as the Storm Water Management Act.
(vii) The act of November 26, 1978 (P.L.1375,
No.325), known as the Dam Safety and Encroachments Act.
(viii) The act of July 7, 1980 (P.L.380, No.97),
known as the Solid Waste Management Act.
(ix) The act of June 23, 1982 (P.L.597, No.170),
known as the Wild Resource Conservation Act.
(x) The act of May 1, 1984 (P.L.206, No.43), known
as the Pennsylvania Safe Drinking Water Act.
(xi) The act of July 10, 1984 (P.L.688, No.147),
known as the Radiation Protection Act.
(xii) The act of October 5, 1984 (P.L.734, No.159),
known as the Worker and Community Right-to-Know Act.
(xiii) The act of December 18, 1984 (P.L.1069,
No.214), known as the Coal and Gas Resource Coordination
Act.
(xiv) The act of December 19, 1984 (P.L.1093,
No.219), known as the Noncoal Surface Mining Conservation
and Reclamation Act.
(xv) The act of October 18, 1988 (P.L.756, No.108),
20110HB1950PN2837 - 30 -
known as the Hazardous Sites Cleanup Act.
(xvi) The act of July 6, 1989 (P.L.169, No.32),
known as the Storage Tank and Spill Prevention Act.
(xvii) The act of December 7, 1990 (P.L.639,
No.165), known as the Hazardous Material Emergency
Planning and Response Act.
(xviii) The act of May 19, 1995 (P.L.4, No.2), known
as the Land Recycling and Environmental Remediation
Standards Act.
(xix) The act of July 4, 2008 (P.L.526, No.43),
known as the Great Lakes-St. Lawrence River Basin Water
Resources Compact.
(xx) The provisions of 27 Pa.C.S. Ch. 31 (relating
to water resources planning)
(xxi) The provisions of 27 Pa.C.S. Ch. 41 (relating
to environmental laboratory accreditation).
(xxii) The provisions of 27 Pa.C.S. Ch. 62 (relating
to waste transportation safety).
(xxiii) The provisions of 30 Pa.C.S. (relating to
fish).
(xxiv) The provisions of 34 Pa.C.S. (relating to
game).
(5) A regulation, rule, administrative order or agency
interpretation or guidance of a Commonwealth agency
pertaining to oil and gas operations, public health, safety,
natural resources or the environment.
(6) A decision of a court of this Commonwealth
pertaining to oil and gas operations, public health, safety,
natural resources or the environment.
"Fresh groundwater." Water in that portion of the generally
20110HB1950PN2837 - 31 -
recognized hydrologic cycle which occupies the pore spaces and
fractures of saturated subsurface materials.
"Gas." Any of the following:
(1) A fluid, combustible or noncombustible, which is
produced in a natural state from the earth and maintains a
gaseous or rarified state at standard temperature of 60
degrees Fahrenheit and pressure 14.7 PSIA.
(2) Any manufactured gas, byproduct gas or mixture of
gases or natural gas liquids.
"Inactivate." To shut off the vertical movement of gas in a
gas storage well by means of a temporary plug or other suitable
device or by injecting bentonitic mud or other equally nonporous
material into the well.
"Linear foot." A unit or measurement in a straight line on a
horizontal plane.
"Oil." Hydrocarbons in liquid form at standard temperature
of 60 degrees Fahrenheit and pressure 14.7 PSIA, also referred
to as petroleum.
"Oil and gas operations." Any of the following:
(1) Exploration for oil and gas. This paragraph includes
the conduct of seismic operations.
(2) Siting and locating of oil and gas wells.
(3) Drilling, stimulation and completion of oil and gas
wells.
(4) Generation, processing, treatment, storage,
transportation and disposal of fresh water, wastewater,
wastes, chemicals and other materials directly associated
with drilling, stimulation and completion of oil and gas
wells.
(5) Production, gathering and collection of oil or gas.
20110HB1950PN2837 - 32 -
(6) Compression, transportation, processing, measurement
and storage of oil or gas.
(7) Reclamation activities.
(8) Construction and use of drilling rigs and pipelines.
This paragraph includes equipment directly related to the
activities set forth in this paragraph.
(9) Construction and use of access roads, well sites,
drilling pads, impoundments, compression stations, processing
stations, meter stations and storage tanks. This paragraph
includes buildings, facilities or structures, which are
directly related to the activities set forth in this
paragraph. This paragraph does not include ancillary support,
supply and service facilities, the location of which is not
dependent on the location of specific wells or pipelines.
"Operating coal mine." Any of the following:
(1) An underground coal mine which is producing coal or
has been in production of coal at any time during the 12
months immediately preceding the date its status is put in
question, including contiguous worked-out or abandoned coal
mines to which it is connected underground.
(2) An underground coal mine to be established or
reestablished under paragraph (1).
"Operating well." A well that is not plugged and abandoned.
"Orphan well." A well abandoned prior to April 18, 1985,
that has not been affected or operated by the present owner or
operator and from which the present owner, operator or lessee
has received no economic benefit other than as a landowner or
recipient of a royalty interest from the well.
"Outside coal boundaries." When used in conjunction with the
term "operating coal mine," the boundaries of the coal acreage
20110HB1950PN2837 - 33 -
assigned to the coal mine under an underground mine permit
issued by the Department of Environmental Protection.
"Owner." A person who owns, manages, leases, controls or
possesses a well or coal property. The term does not apply to
orphan wells, except where the Department of Environmental
Protection determines a prior owner or operator benefited from
the well as provided in section 3220(a) (relating to plugging
requirements).
"Person." An individual, association, partnership,
corporation, political subdivision or agency of the Federal
Government, State government or other legal entity.
"Petroleum." Hydrocarbons in liquid form at standard
temperature of 60 degrees Fahrenheit and pressure 14.7 PSIA,
also referred to as oil.
"Pillar." A solid block of coal surrounded by either active
mine workings or a mined-out area.
"Plat." A map, drawing or print accurately drawn to scale
showing the proposed or existing location of a well or wells.
"Reservoir protective area." The area surrounding a storage
reservoir boundary, but within 2,000 linear feet of the storage
reservoir boundary, unless an alternate area has been designated
by the Department of Environmental Protection, which is deemed
reasonably necessary to afford protection to the reservoir,
under a conference held in accordance with section 3251
(relating to conferences).
"Retreat mining." Removal of coal pillars, ribs and stumps
remaining after development mining has been completed in that
section of a coal mine.
"Secretary." The Secretary of Environmental Protection of
the Commonwealth.
20110HB1950PN2837 - 34 -
"Storage operator." A person who operates or proposes to
operate a storage reservoir as an owner or lessee.
"Storage reservoir." That portion of a subsurface geological
stratum into which gas is or may be injected for storage
purposes or to test suitability of the stratum for storage.
"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 shale 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 one of the following:
(1) Vertical or horizontal well bores stimulated by
hydraulic fracture treatments.
(2) Using multilateral well bores or other techniques to
expose more of the formation of the well bore.
"Water management plan." A plan associated with drilling or
completing a well in an unconventional formation that
demonstrates that the withdrawal and use of water sources
protects those sources as required by law and protects public
health, safety and welfare.
"Water purveyor." Any of the following:
(1) The owner or operator of a public water system as
defined in section 3 of the act of May 1, 1984 (P.L.206,
No.43), known as the Pennsylvania Safe Drinking Water Act.
(2) Any person subject to the act of June 24, 1939
(P.L.842, No.365), referred to as the Water Rights Law.
"Water source."
(1) Any of the following:
(i) Waters of this Commonwealth.
(ii) A source of water supply used by a water
20110HB1950PN2837 - 35 -
purveyor.
(iii) Mine pools and discharges.
(iv) Any other waters that are used for drilling or
completing a well in an unconventional formation.
(2) The term does not include flowback or production
waters or other fluids:
(i) which are used for drilling or completing a well
in an unconventional formation; and
(ii) which do not discharge into waters of this
Commonwealth.
"Well." A bore hole drilled or being drilled for the purpose
of, or to be used for, producing, extracting or injecting gas,
petroleum or another liquid related to oil or gas production or
storage, including brine disposal, but excluding a bore hole
drilled to produce potable water. The term does not include a
bore hole drilled or being drilled for the purpose of, or to be
used for:
(1) Systems of monitoring, producing or extracting gas
from solid waste disposal facilities, if the bore hole is a
well subject to the act of July 7, 1980 (P.L.380, No.97),
known as the Solid Waste Management Act, which does not
penetrate a workable coal seam.
(2) Degasifying coal seams, if the bore hole is:
(i) used to vent methane to the outside atmosphere
from an operating coal mine; regulated as part of the
mining permit under the act of June 22, 1937 (P.L.1987,
No.394), known as The Clean Streams Law, and the act of
May 31, 1945 (P.L.1198, No.418), known as the Surface
Mining Conservation and Reclamation Act; and drilled by
the operator of the operating coal mine for the purpose
20110HB1950PN2837 - 36 -
of increased safety; or
(ii) used to vent methane to the outside atmosphere
under a federally funded or State-funded abandoned mine
reclamation project.
"Well control emergency." An incident during drilling,
operation, workover or completion that, as determined by the
department, poses a threat to public health, welfare or safety,
including a loss of circulation fluids, kick, casing failure,
blowout, fire and explosion.
"Well control specialist." Any person trained to respond to
a well control emergency with a current certification from a
well control course accredited by the International Association
of Drilling Contractors or other organization approved by the
department.
"Well operator" or "operator." Any of the following:
(1) The person designated as operator or well operator
on the permit application or well registration.
(2) If a permit or well registration was not issued, a
person who locates, drills, operates, alters or plugs a well
or reconditions a well with the purpose of production from
the well.
(3) If a well is used in connection with underground
storage of gas, a storage operator.
"Wetland." Areas inundated or saturated by surface or
groundwater at a frequency and duration sufficient to support,
and which normally support, a prevalence of vegetation typically
adapted for life in saturated soil conditions, including swamps,
marshes, bogs and similar areas.
"Workable coal seams." A coal seam which:
(1) is actually being mined in the area in question
20110HB1950PN2837 - 37 -
under this chapter by underground methods; or
(2) in the judgment of the Department of Environmental
Protection, can reasonably be expected to be mined by
underground methods.
SUBCHAPTER B
GENERAL REQUIREMENTS
Sec.
3211. Well permits.
3212. Permit objections.
3212.1. Comments by municipalities.
3213. Well registration and identification.
3214. Inactive status.
3215. Well location restrictions.
3215.1. General restrictions.
3216. Well site restoration.
3217. Protection of fresh groundwater and casing requirements.
3218. Protection of water supplies.
3219. Use of safety devices.
3219.1. Well control emergency response.
3220. Plugging requirements.
3221. Alternative methods.
3222. Well reporting requirements.
3223. Notification and effect of well transfer.
3224. Coal operator responsibilities.
3225. Bonding.
3226. Oil and Gas Technical Advisory Board.
3227. AIR CONTAINMENT EMISSIONS.
§ 3211. Well permits.
(a) Permit required.--No person shall drill or alter a well,
except for alterations which satisfy the requirements of
20110HB1950PN2837 - 38 -
subsection (j), without having first obtained a well permit
under subsections (b), (c), (d) and (e), or operate an abandoned
or orphan well unless in compliance with subsection (l). A copy
of the permit shall be kept at the well site during drilling or
alteration of the well. No person shall be required to obtain a
permit to redrill a nonproducing well if the redrilling:
(1) has been evaluated and approved as part of an order
from the department authorizing cleaning out and plugging or
replugging a nonproducing well under section 13(c) of the act
of December 18, 1984 (P.L.1069, No.214), known as the Coal
and Gas Resource Coordination Act; and
(2) is incidental to a plugging or replugging operation
and the well is plugged within 15 days of redrilling.
(b) Plat.--
(1) The permit application shall be accompanied by a
plat prepared by a competent engineer or a competent
surveyor, on forms 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; a list of
municipalities adjacent to the well site; the name of the
surface landowner of record and lessor; the name of all
surface landowners and water purveyors whose water supplies
are within 1,000 feet of the proposed well location or, in
the case of an unconventional well, within 2,500 feet of the
proposed well location; the name of the owner of record or
operator of all known underlying workable coal seams; the
acreage in the tract to be drilled; the proposed location of
the well determined by survey, courses and distances of the
location from two or more permanent identifiable points or
landmarks on the tract boundary corners; the proposed angle
20110HB1950PN2837 - 39 -
and direction of the 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
underlying the tract of land upon which the well is to be
drilled or altered and which shall be cased off under section
3217 (relating to protection of fresh groundwater and casing
requirements); and any other information needed by the
department to administer this chapter.
(2) no later than 30 days prior to submitting the
application required in subsection (a), the applicant shall
forward by certified mail a copy of the plat to the surface
landowner; the municipality in which the tract of land upon
which the well to be drilled is located; the municipalities
adjacent to the well; all surface landowners and water
purveyors, whose water supplies are within 1,000 feet of the
proposed well location or, in the case of an unconventional
well, within 2,500 feet of the proposed well location; the
owner and lessee of any coal seams; and each coal operator
required to be identified on the well permit application.
(b.1) Notification.--The applicant shall submit proof of
notification with the well permit application. Notification of
surface owners shall be performed by sending notice to those
persons to whom the tax notices for the surface property are
sent, as indicated in the assessment books in the county in
which the property is located. Notification of surface
landowners or water purveyors whose water supplies are within
1,000 feet of the proposed well location shall be on forms, and
in a manner prescribed by the department, sufficient to identify
the rights afforded those persons under section 3218 (relating
to protection of water supplies) and to advise them of the
20110HB1950PN2837 - 40 -
advantages of taking their own predrilling or prealteration
survey.
(b.2) Approval.--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 of any coal
underlying the proposed well location and no objections are
raised by the department within 15 days of filing, or if no
approval has been submitted and no objections are made to the
proposed well location within 15 days from receipt of notice by
the department, the surface landowner or any coal operator,
lessee or owner, the written approval shall be filed and become
a permanent record of the well location, subject to inspection
at any time by any interested person.
(c) Applicants.--If the applicant for a well permit is a
corporation, partnership or person that is not a resident of
this Commonwealth, the applicant shall designate the name and
address of an agent for the operator who shall be the attorney-
in-fact for the operator and who shall be a resident of this
Commonwealth upon whom notices, orders or other communications
issued under this chapter may be served and upon whom process
may be served. Each well operator required to designate an agent
under this section shall, within five days after termination of
the designation, notify the department of the termination and
designate a new agent.
(d) Permit fee.--Each application for a well permit shall be
accompanied by a permit fee, established by regulation of the
department, which bears a reasonable relationship to the cost of
administering this chapter.
(e) Issuance of permit.--The department shall issue a permit
within 45 days of submission of a permit application unless the
20110HB1950PN2837 - 41 -
department denies the permit application for one or more of the
reasons set forth in subsection (e.1), except that the
department shall have the right to extend the period for 15 days
for cause shown upon notification to the applicant of the
reasons for the extension. The department may impose permit
terms and conditions necessary to assure compliance with this
chapter or other laws administered by the department.
(e.1) Denial of permit.--The department may deny a permit
for any of the following reasons:
(1) The well site for which a permit is requested is in
violation of any of this chapter or issuance of the permit
would result in a violation of this chapter or other
applicable law.
(2) The permit application is incomplete.
(3) Unresolved objections to the well location by coal
mine owner or operator remain.
(4) The requirements of section 3225 (relating to
bonding) have not been met.
(5) The department finds that the applicant, or any
parent or subsidiary corporation of the applicant, is in
continuing violation of this subchapter, any other statute
administered by the department, any rule or regulation
promulgated under this subchapter or a statute administered
by the department or any plan approval, permit or order of
the department, unless the violation is being corrected to
the satisfaction of the department. The right of the
department to deny a permit under this paragraph shall not
take effect until the department has taken a final action on
the violations and:
(i) the applicant has not appealed the final
20110HB1950PN2837 - 42 -
action in accordance with the act of July 13, 1988
(P.L.530, No.94), known as the Environmental Hearing
Board Act; or
(ii) if an appeal has been filed, no supersedeas
has been issued.
(f) Drilling.--
(1) Upon issuance of a permit, the well operator may
drill at the location shown on the plat after providing the
department, the surface landowner and the local political
subdivision in which the well is to be located 24 hours'
notice of the date that drilling will commence.
(2) The unconventional well operator shall provide the
department 24 hours' notice prior to cementing all casing
strings, conducting pressure tests of the production casing,
stimulation and abandoning or plugging an unconventional
well.
(3) In noncoal areas where more than one well is to be
drilled as part of the same development project, only the
first well of the project need be located by survey.
Remaining wells of the project shall be shown on the plat in
a manner prescribed by regulation.
(4) Prior to drilling each additional project well, the
well operator shall notify the department and provide
reasonable notice of the date on which drilling will
commence.
(5) Whenever, before or during the drilling of a well
not within the boundaries of an operating coal mine, the well
operator encounters conditions of a nature which renders
drilling of the bore hole or a portion thereof impossible, or
more hazardous than usual, the well operator, upon verbal
20110HB1950PN2837 - 43 -
notice to the department, may immediately plug all or part of
the bore hole, if drilling has occurred, and commence a new
bore hole not more than 50 feet from the old bore hole if the
location of the new bore hole does not violate section 3215
(relating to well location restrictions) and, in the case of
a well subject to act of July 25, 1961 (P.L.825, No.359),
known as the Oil and Gas Conservation Law, if the new
location complies with existing laws, regulations and spacing
orders and the new bore hole is at least 330 feet from the
nearest lease boundary.
(6) Within ten days of commencement of the new bore
hole, the well operator shall file with the department a
written notice of intention to plug, a well record, a
completion report, a plugging certificate for the original
bore hole and an amended plat for the new bore hole.
(7) The well operator shall forward a copy of the
amended plat to the surface landowner identified on the well
permit application within ten days of commencement of the new
well bore.
(g) Posting.--The well permit number and operator's name,
address and telephone number shall be conspicuously posted at
the drilling site prior to commencement of drilling.
(h) Labeling.--The well operator shall install the permit
number issued by the department in a legible, visible and
permanent manner on the well upon completion.
(i) Expiration.--Well permits issued for drilling wells
under this chapter shall expire one year after issuance unless
operations for drilling the well are commenced within the period
and pursued with due diligence or unless the permit is renewed
in accordance with regulations of the department. If drilling is
20110HB1950PN2837 - 44 -
commenced during the one-year period, the well permit shall
remain in force until the well is plugged in accordance with
section 3220 (relating to plugging requirements) or the permit
is revoked. A drilling permit issued prior to April 18, 1985,
for a well which is an operating well on April 18, 1985, shall
remain in force as a well permit until the well is plugged in
accordance with section 3220. Nothing in this subsection shall
be construed to rescind the provisions pertaining to drilling
permits contained in Chapter 34.
(j) Exceptions.--The Environmental Quality Board may
establish by regulation certain categories of alterations of
permitted or registered wells for which permitting requirements
of this section shall not apply. A well operator or owner who
proposes to conduct the alteration activity shall first obtain a
permit or registration modification from the department. The
Environmental Quality Board shall promulgate regulations as to
the requirements for modifications.
(k) No transfer permitted.--No permit issued under this
section or registration issued under section 3213 (relating to
well registration and identification) may be transferred without
prior approval of the department. A request for approval of a
transfer shall be on the forms, and in the manner, prescribed by
the department. The department shall approve or deny a transfer
request within 45 days of receipt of a complete and accurate
application. The department may deny a request only for reasons
set forth in subsection (e.1)(4) and (5). Approval of a transfer
request shall permanently transfer responsibility to plug the
well under section 3220 to the recipient of the transferred
permit or registration.
(l) Regulations.--The Environmental Quality Board may
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establish by regulation requirements for the permitting and
operation of abandoned or orphan wells. A person who proposes to
conduct abandoned or orphan well operations shall first obtain a
permit to operate an abandoned or orphan well.
(m) Water management.--The following shall apply to water
management:
(1) No person may withdraw or use water from water
sources within this Commonwealth for the drilling or
hydraulic fracture stimulation of any natural gas well
completed in an unconventional gas formation, whether on or
off of the land where the gas well is located, except in
accordance with a water management plan approved by the
department.
(2) The department shall review and approve water
management plans based upon a determination that the proposed
withdrawal, when operated in accordance with the proposed
withdrawal operating conditions set forth in the plan,
including conditions relating to quantity, withdrawal rate
and timing and any passby flow conditions, will:
(i) not adversely affect the quantity or quality of
water available to other users of the same water sources;
(ii) protect and maintain the designated and
existing uses of water sources; and
(iii) not cause adverse impact to water quality in
the watershed considered as a whole.
(3) (i) The criteria under paragraph (2) shall be
presumed to be achieved if the proposed water withdrawal
has been approved by and is operated in accordance with
conditions established by the Susquehanna River Basin
Commission, the Delaware River Basin Commission or the
20110HB1950PN2837 - 46 -
Great Lakes Commission, as applicable.
(ii) Notwithstanding subparagraph (i), the
department may establish additional requirements as
necessary to comply with the laws of this Commonwealth.
(4) In addition to the requirements under paragraphs
(1), (2) and (3), compliance with a department-approved water
management plan shall be a condition of any permit issued
under this chapter for the drilling or hydraulic fracture
stimulation of any natural gas well completed in an
unconventional formation and shall be deemed to satisfy the
laws of this Commonwealth.
§ 3212. Permit objections.
(a) General rule.--If a well referred to in section 3211(b)
(relating to well permits) will be located on a tract whose
surface is owned by a person other than the well operator, the
surface landowner affected shall be notified of the intent to
drill and may file objections, in accordance with section 3251
(relating to conferences), based on the assertion that the well
location violates section 3215 (relating to well location
restrictions) or that information in the application is untrue
in any material respect, within 15 days of the receipt by the
surface owner of the plat under section 3211(b). Receipt of
notice by the surface owner shall be presumed to have occurred
15 days from the date of the certified mailing when the well
operator submits a copy of the certified mail receipt sent to
the surface owner and an affidavit certifying that the address
of the surface owner to which notice was sent is the same as the
address listed in the assessment books in the county where the
property is located. If no objection is filed or none is raised
by the department within 15 days after receipt of the plat by
20110HB1950PN2837 - 47 -
the surface landowner, or, if written approval by the surface
landowner is filed with the department and no objection is
raised by the department within 15 days of filing, the
department shall proceed to issue or deny the permit.
(b) Special circumstances.--If a well referred to in section
3211(b) will penetrate within the outside coal boundaries of an
operating coal mine or a coal mine already projected and platted
but not yet being operated, or within 1,000 linear feet beyond
those boundaries, and, in the opinion of the coal owner or
operator, the well or a pillar of coal about the well will
unduly interfere with or endanger the mine, the coal owner or
operator affected may file objections under section 3251 to the
proposed location within 15 days of the receipt by the coal
operator of the plat under section 3211(b). If possible, an
alternative location at which the proposed well could be drilled
to overcome the objections shall be indicated. If no objection
to the proposed location is filed or if none is 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
objection is raised by the department within 15 days of filing,
the department shall proceed to issue or deny the permit.
(c) Procedure upon objection.--If an objection is filed by a
coal operator or owner or made by the department, the department
shall fix a time and place for a conference under section 3251
not more than ten days from the date of service of the objection
to allow the parties to consider the objection and attempt to
agree on a location. If they fail to agree, the department, by
an appropriate order, shall determine a location on the tract of
land as near to the original location as possible where, in the
20110HB1950PN2837 - 48 -
judgment of the department, the well can be safely drilled
without unduly interfering with or endangering the mine as
defined in subsection (b). The new location agreed upon by the
parties or determined by the department shall be indicated on
the plat on file with the department and become a permanent
record upon which the department shall proceed to issue or deny
the permit.
(d) Survey.--Within 120 days after commencement of drilling
operations, the coal operator shall accurately locate the well
by a closed survey on the same datum as the mine workings or
coal boundaries are mapped, file the results of the survey with
the department and forward a copy by certified mail to the well
operator.
§ 3212.1. Comments by municipalities.
(a) General rule.--The municipality where the tract of land
upon which the unconventional well to be drilled is located may
submit written comments to the department describing local
conditions or circumstances which the municipality has
determined should be considered by the department in rendering
its determination on the unconventional well permit. A comment
under this subsection must be submitted to the department within
15 days of the receipt of the plat under section 3211(b)
(relating to well permits). The municipality shall
simultaneously forward a copy of its comments to the permit
applicant and all other parties entitled to a copy of the plat
under section 3211(b), who may submit a written response. A
written response must be submitted to the department within ten
days of receipt of the comments of the municipality.
(b) Consideration by department.--Comments and responses
under subsection (a) may be considered by the department in
20110HB1950PN2837 - 49 -
accordance with section 3215(d) (relating to well location
restrictions).
(c) No extension of time period.--The process outlined in
this section shall not extend the time period for the issuance
or denial of a permit beyond the time period set forth in this
chapter.
§ 3213. Well registration and identification.
(a) General rule.--On or before July 5, 1996, each person
who owned or operated a well in existence prior to April 18,
1985, which has not been registered with the department and for
which no drilling permit has been issued by the department,
shall register the well with the department. A well owner or
operator who registers under this subsection and a well owner or
operator who has previously registered a well under this chapter
shall, on or before July 5, 1996, identify any abandoned well on
property which the well owner or operator owns or leases and
request approval from the department for classification of the
well as an orphan well. Information regarding wells to be
registered or identified shall be provided on a form, or in a
manner prescribed by the department, and shall include:
(1) The name and address of the well operator and, if
the well operator is a corporation, partnership or person
nonresident of this Commonwealth, the name and address of an
agent for the operator upon whom notices, orders, process or
other communications issued under this chapter may be served.
(2) The well name and the location of the well indicated
by a point on a 7 1/2 minute United States Geological Survey
topographic map or any other location description sufficient
to enable the department to locate the well on the ground.
(3) The approximate date of drilling and completing the
20110HB1950PN2837 - 50 -
well, its approximate depth and producing horizons, well
construction information and, if available, driller's logs.
(4) An indemnity bond, an alternative fee in lieu of
bonding or other evidence of financial security submitted by
the well operator and deemed appropriate by the department
and satisfying the requirements of section 3225 (relating to
bonding). No bond, alternative fee or other evidence of
financial security shall be required for identification of an
orphan well. For wells drilled prior to January 30, 1956,
which have not been bonded, the well operator shall have five
years to comply with the provisions of this paragraph.
(5) A registration fee of $15 per well or blanket
registration fee of $250 for multiple well registration
applications submitted simultaneously. The registration fee
shall be waived until July 5, 1996, and no fee shall be
charged for identification of an orphan well.
(a.1) Orphan wells.--After July 5, 1996, a well owner, well
operator or other person discovering an abandoned well on
property purchased or leased by the well owner, well operator or
other person shall identify it to the department within 60 days
of discovery and advise the department that he is seeking
classification of the well as an orphan well. No fee shall be
required for identification.
(b) Extension.--The department may extend the one-year time
period under subsection (a) for good cause shown. The extension
may not exceed a period ending two years from April 18, 1985.
The department may adopt and promulgate guidelines designed to
ensure a fair implementation of this section, recognizing the
practical difficulties of locating unpermitted wells and
complying with the reporting requirements of this chapter.
20110HB1950PN2837 - 51 -
(c) Installation of registration number.--The well operator
shall install the registration number issued by the department
in a legible, conspicuous and permanent manner on the well
within 60 days of issuance.
(d) Definition.--For purposes of subsection (a)(4) and (5),
the term "owner" does not include an owner or possessor of
surface real property, on which an abandoned well is located,
who did not participate or incur costs in, and had no right of
control over, the drilling or extraction operation of the
abandoned well.
§ 3214. Inactive status.
(a) General rule.--Upon application, the department shall
grant inactive status for a period of five years for a permitted
or registered well, if the following requirements are met:
(1) the condition of the well is sufficient to prevent
damage to the producing zone or contamination of fresh water
or other natural resources or surface leakage of any
substance;
(2) the condition of the well is sufficient to stop the
vertical flow of fluids or gas within the well bore and is
adequate to protect freshwater aquifers, unless the
department determines the well poses a threat to the health
and safety of persons or property or to the environment;
(3) the operator anticipates construction of a pipeline
or future use of the well for primary or enhanced recovery,
gas storage, approved disposal or other appropriate uses
related to oil and gas well production; and
(4) the applicant satisfies the bonding requirements of
sections 3213 (relating to well registration and
identification) and 3225 (relating to bonding), except that
20110HB1950PN2837 - 52 -
the department may require additional financial security for
a well on which an alternative fee is being paid in lieu of
bonding under section 3225(d).
(b) Monitoring.--The owner or operator of a well granted
inactive status shall be responsible for monitoring the
mechanical integrity of the well to ensure that the requirements
of subsection (a)(1) and (2) are met and shall report the same
on an annual basis to the department in the manner and form
prescribed by departmental regulations.
(c) (Reserved).
(d) Return to active status.--A well granted inactive status
under subsection (a) shall be plugged in accordance with section
3220 (relating to plugging requirements) or returned to active
status within five years of the date inactive status was
granted, unless the owner or operator applies for an extension
of inactive status which may be granted on a year-to-year basis
if the department determines that the owner or operator has
demonstrated ability to continue meeting the requirements of
this section and the owner or operator certifies that the well
will be of future use within a reasonable period of time. An
owner or operator who has been granted inactive status for a
well which is returned to active status prior to expiration of
the five-year period set forth in subsection (a) shall notify
the department that the well has been returned to active status
and shall not be permitted to apply for another automatic five-
year period of inactive status for the well. The owner or
operator may make application to return the well to inactive
status, and the application may be approved on a year-to-year
basis if the department determines that the owner or operator
has demonstrated an ability to continue meeting the requirements
20110HB1950PN2837 - 53 -
of this section and the owner or operator certifies that the
well will be of future use within a reasonable period of time.
The department shall approve or deny an application to extend a
period of inactive status or to return a well to inactive status
within 60 days of receipt of the application, and the
application shall not be unreasonably denied. If the department
has not completed its review of the application within 60 days,
the inactive status shall continue until the department has made
a determination on the request. If the department denies an
application to extend the period of inactive status or to return
a well to inactive status, a well owner or operator aggrieved by
the denial shall have the right to appeal the denial to the
Environmental Hearing Board within 30 days of receipt of the
denial. Upon cause shown by a well owner or operator, the board
may grant a supersedeas under section 4 of the act of July 13,
1988 (P.L.530, No.94), known as the Environmental Hearing Board
Act, so that the well in question may retain inactive status
during the period of the appeal.
(e) Revocation of inactive status.--The department may
revoke inactive status and order immediate plugging of a well if
the well is in violation of this chapter or rules or regulations
promulgated under this chapter or if the owner or operator
demonstrates inability to perform obligations under this chapter
or becomes financially insolvent, or upon receipt by the
department of notice of bankruptcy proceedings by the permittee.
§ 3215. Well location restrictions.
(a) General rule.--Wells may not be drilled within 200 feet,
or, in the case of an unconventional gas well, 500 feet measured
horizontally from the vertical well bore to a building or water
well, existing when the copy of the plat is mailed as required
20110HB1950PN2837 - 54 -
by section 3211(b) (relating to well permits) without written
consent of the owner of the building or water well.
Unconventional gas wells may not be drilled within 1,000 feet
measured horizontally from the vertical well bore to any
existing water well, surface water intake, reservoir or other
water supply extraction point used by a water purveyor without
the written consent of the water purveyor. If consent is not
obtained and 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 the surface tract, the well operator shall
be granted a variance from the distance restriction upon
submission of a plan identifying the additional measures,
facilities or practices as prescribed by the department to be
employed during well site construction, drilling and operations.
The variance, if granted, shall include additional terms and
conditions required by the department to ensure safety and
protection of affected persons and property, including
insurance, bonding, indemnification and technical requirements.
(b) Limitation.--
(1) No well may be drilled within 100 feet, or, in the
case of an unconventional well, 300 feet measured
horizontally from any solid blue lined stream as identified
on the most current 7 1/2 minute topographic quadrangle map
of the United States Geological Survey.
(2) The edge of the disturbed area associated with any
unconventional well must maintain a 100-foot setback from the
edge of any solid blue lined stream as identified on the most
current 7 1/2 minute topographic quadrangle map of the United
States Geological Survey.
(3) No unconventional well may be drilled within 300
20110HB1950PN2837 - 55 -
feet of any wetlands greater than one acre in size, and the
edge of the disturbed area must maintain a 100-foot setback
from the boundary of the wetlands.
(4) The department shall waive the distance restrictions
upon submission of a plan identifying additional measures,
facilities or practices to be employed during well site
construction, drilling and operations. The waiver shall impose
permit conditions necessary to protect the waters of this
Commonwealth.
(c) Impact.--On making a determination on a well permit, the
department shall consider impact of the proposed well on public
resources, including, but not limited to:
(1) Publicly owned parks, forests, game lands 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.
(d) Consideration of municipality comments.--The department
may consider the comments submitted under section 3212.1
(relating to comments by municipalities) in making a
determination on a well permit. Notwithstanding any other law,
no municipality shall have a right of appeal or other form of
review from the department's decision.
(e) Regulation criteria.--The Environmental Quality Board
shall develop by regulation criteria:
(1) For the department to utilize for conditioning a
well permit based on its impact to the public resources
20110HB1950PN2837 - 56 -
identified under subsection (c) and for ensuring optimal
development of oil and gas resources and respecting property
rights of oil and gas owners.
(2) For appeal to the Environmental Hearing Board of a
permit containing conditions imposed by the department. The
regulations shall also provide that the department has the
burden of proving by clear and convincing evidence that the
conditions were necessary to protect against a probable
harmful impact of the public resources.
(3) For processes and procedures for the adjudication of
compensation claims of affected owners, if any conditions or
restrictions imposed by application of the criteria developed
under paragraph (1) deprive the owner of the oil and gas
rights, in part or in whole, of the right to produce or share
in the oil as gas underlying the surface tract or tracts
affected by imposition of any condition or conditions.
(f) Floodplains.--
(1) No well site may be prepared or well drilled within
any floodplain if the well site will have:
(i) a pit or impoundment containing drilling
cuttings, flowback water, produced water or hazardous
materials, chemicals or wastes within the floodplain; or
(ii) a tank containing hazardous materials,
chemicals, condensate, wastes, flowback or produced water
within the floodway.
(2) A well site shall not be eligible for a floodplain
restriction waiver if the well site will have a tank
containing condensate, flowback or produced water within the
flood fringe unless all the tanks have adequate floodproofing
in accordance with the National Flood Insurance Program
20110HB1950PN2837 - 57 -
standards and accepted engineering practices.
(3) The department may waive restrictions upon
submission of a plan that shall identify the additional
measures, facilities or practices to be employed during well
site construction, drilling and operations. The waiver, if
granted, shall impose permit conditions necessary to protect
the waters of this Commonwealth.
(4) Best practices to ensure the protection of the
waters of this Commonwealth must be utilized for the storage
and handling of all water, chemicals, fuels, hazardous
materials or solid waste on a well site located in a
floodplain. The department may request that the well site
operator submit a plan for the storage and handling of
materials for approval by the department and may impose
conditions or amend permits to include permit conditions as
are necessary to protect the environment, public health and
safety.
(5) Unless otherwise specified by the department, the
boundary of the floodplain shall be as indicated on maps and
flood insurance studies provided by the Federal Emergency
Management Agency. In an area where no Federal Emergency
Management Agency maps or studies have defined the boundary
of the 100-year frequency floodplain, absent evidence to the
contrary, the floodplain shall extend from:
(i) any perennial stream up to 100 feet horizontally
from the top of the bank of the perennial stream; or
(ii) from any intermittent stream up to 50 feet
horizontally from the top of the bank of the intermittent
stream.
(g) Existing wells and pads.--Subsections (a) and (b) shall
20110HB1950PN2837 - 58 -
not apply to any of the following:
(1) A well for which a valid permit exists as of the
effective date of this subsection.
(2) A well permit application submitted after the
effective date of this subsection for a well that will be
located on a wellpad upon which a well has been drilled under
a valid permit that was approved before the effective date of
this subsection.
§ 3215.1. General restrictions.
(a) Security fencing.--Security fencing shall be installed
at natural gas compressed stations, dehydration and processing
facilities and other central processing facilities to secure all
permanent buildings, facilities, structures and equipment and to
protect the public. Warning signs shall be placed on the
security fencing providing notice of potential dangers and
providing contact information in case of an emergency.
(b) Temporary operations.--The following shall apply to
temporary operations, such as well drilling and completion
operations:
(1) Except as provided under paragraph (2), temporary
security fencing shall be installed at the oil or gas well
site to secure all buildings, facilities, structures and
equipment at the site and to protect the public. Warning
signs shall be placed at the well site providing notice of
potential dangers and providing contact information in case
of an emergency.
(2) In lieu of security fencing under paragraph (1), a
well owner or operator may establish 24-hour security
staffing at the site and install a security gate at the
entrance of the access road to prevent unauthorized access.
20110HB1950PN2837 - 59 -
(c) Lighting.--Lighting at the well site and at other
buildings, facilities and structures directly related to oil and
gas operations, either temporary or permanent, shall be directed
downward and inward toward the activity, to the extent
practicable, so as to minimize the glare on public roads and
nearby buildings within 100 feet of the well site, building,
facility or structure.
(d) Noise regulations.--Well owners and operators shall
comply with all applicable noise regulations promulgated by the
Federal Energy Regulatory Commission, except that the noise
level from permanent oil and gas operations may not exceed 60
dBA at the nearest property line of the tract of land upon which
oil and gas operations are being conducted. Any compressor
situate within 2,500 feet of a dwelling shall be in a soundproof
building such that the noise level immediately outside such
building does not exceed 60 dBA.
(e) Atmospheric discharge.--Well owners and operators shall
comply with each applicable environmental law governing the
discharge of gases, vapors and odors into the atmosphere. The
discharge of gases, vapors and odors during oil and gas
operations may not unreasonably interfere with the comfortable
enjoyment of life or property.
(f) Applicability.--This section shall only apply to
unconventional natural gas wells.
§ 3216. Well site restoration.
(a) General rule.--Each oil or gas well owner or operator
shall restore the land surface within the area disturbed in
siting, drilling, completing and producing the well.
(b) Plan.--During and after earthmoving or soil disturbing
activities, including, but not limited to, activities related to
20110HB1950PN2837 - 60 -
siting, drilling, completing, producing and plugging the well,
erosion and sedimentation control measures shall be implemented
in accordance with an erosion and sedimentation control plan
prepared in accordance with the act of June 22, 1937 (P.L.1987,
No.394), known as The Clean Streams Law.
(c) Pits, drilling supplies and equipment.--Within nine
months after completion of drilling of a 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 express written consent of the
surface landowner is obtained.
(d) Items related to production or storage.--Within nine
months after plugging a well, the owner or operator shall remove
all production or storage facilities, supplies and equipment and
restore the well site.
(e) Clean Streams Law.--Restoration activities required by
this chapter or in regulations promulgated under this chapter
shall also comply with all applicable provisions of The Clean
Streams Law.
(f) Violation of chapter.--Failure to restore the well site
as required in this chapter or regulations promulgated under
this chapter constitutes a violation of this chapter.
(g) Extension.--
(1) The restoration period may be extended by the
department for an additional period of time not to exceed two
years upon demonstration by the well owner or operator that:
(i) the extension will result in less earth
disturbance, increased water reuse or more efficient
20110HB1950PN2837 - 61 -
development of the resources; or
(ii) site restoration cannot be achieved due to
adverse weather conditions or a lack of essential fuel,
equipment or labor.
(2) The demonstration under paragraph (1) shall do all
of the following:
(i) Include a site restoration plan that shall
provide for:
(A) the timely removal or fill of all pits used
to contain produced fluids or industrial wastes;
(B) the removal of all drilling supplies and
equipment not needed for production;
(C) the stabilization of the well site that
shall include interim postconstruction storm water
management best management practices; or
(D) other measures to be employed to minimize
accelerated erosion and sedimentation in accordance
with The Clean Streams Law.
(ii) Provide for returning the portions of the site
not occupied by production facilities or equipment to
approximate original contours and making them capable of
supporting the uses that existed prior to drilling the
well.
(3) The department may condition an extension under this
subsection as is necessary in accordance with The Clean
Streams Law.
§ 3217. Protection of fresh groundwater and casing
requirements.
(a) General rule.--To aid in protection of fresh
groundwater, well operators shall control and dispose of brines
20110HB1950PN2837 - 62 -
produced from the drilling, alteration or operation of an oil or
gas well in a manner consistent with the act of June 22, 1937
(P.L.1987, No.394), known as The Clean Streams Law, or any rule
or regulation promulgated under The Clean Streams Law.
(b) Casing.--To prevent migration of gas or fluids into
sources of fresh groundwater and pollution or diminution of
fresh groundwater, a string or strings of casing shall be run
and permanently cemented in each well drilled through the fresh
water-bearing strata to a depth and in a manner prescribed by
regulation by the department.
(c) Procedure when coal has been removed.--If a well is
drilled at a location where coal has been removed from one or
more coal seams, the well shall be drilled and cased to prevent
migration of gas or fluids into the seam from which coal has
been removed in a manner prescribed by regulation of the
department. The department and the coal operator, owner or
lessee shall be given at least 72 hours' notice prior to
commencement of work protecting the mine.
(d) Procedure when coal has not been removed.--If a well is
drilled at a location where the coal seam has not been removed,
the well shall be drilled to a depth and of a size sufficient to
permit placement of casing, packers in and vents on the hole at
the points and in the manner prescribed by regulation to exclude
gas or fluids from the coal seam, except gas or fluids found
naturally in the seam itself, and to enable monitoring the
integrity of the production casing.
§ 3218. Protection of water supplies.
(a) General rule.--In addition to the requirements of
subsection (c.1), a well operator who affects a public or
private water supply by pollution or diminution shall restore or
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replace the affected supply with an alternate source of water
adequate in quantity or quality for the purposes served by the
supply. The department shall ensure the restored or replaced
water supply meets the applicable water quality standards
consistent with the Safe Drinking Water Act (Public Law 93-523,
21 U.S.C. § 349 and 42 U.S.C. §§ 201 and 300f et seq.), the act
of May 1, 1984 (P.L.206, No.43), known as the Pennsylvania Safe
Drinking Water Act, and predrilling or alteration water quality
standards as determined by the department. The Environmental
Quality Board shall promulgate regulations necessary to meet the
requirements of this subsection.
(b) Pollution or diminution of water supply.--A landowner or
water purveyor suffering pollution or diminution of a water
supply as a result of the drilling, alteration or operation of
an oil or gas well may so notify the department and request that
an investigation be conducted. Within ten days of notification,
the department shall investigate the claim and make a
determination within 45 days following notification. If the
department finds that the pollution or diminution was caused by
drilling, alteration or operation activities or if it presumes
the well operator responsible for pollution under subsection
(c), the department shall issue orders to the well operator
necessary to assure compliance with subsection (a), including
orders requiring temporary replacement of a water supply where
it is determined that pollution or diminution may be of limited
duration.
(b.1) Survey.--Upon a written request by any landowner
residing within 5,500 feet but farther than 2,500 feet of a
proposed gas well using hydraulic fracturing, the well permit
applicant shall conduct a predrilling or prealteration survey,
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using a facility or laboratory certified by the department, and
send a copy of the survey by certified mail to the requester. A
predrilling or prealteration survey shall provide at a minimum
the testing results for chemicals or chemical compounds known to
be commonly used for hydraulic fracturing, including all major
cations and anions, arsenic, benzene, toluene, ethylbenzene,
xylenes, manganese, dissolved methane, total dissolved solids,
chlorides, nutrients and radionuclides.
(b.2) Telephone number.--The department shall establish a
single Statewide toll-free telephone number that persons may use
to report cases of water contamination. The Statewide toll-free
telephone number shall be provided in a conspicuous manner in
the notification required under section 201(b) and on the
department's Internet website.
(b.3) Responses.--The department shall develop appropriate
administrative responses to calls received on the Statewide
toll-free number for water contamination.
(b.4) Website.--The department shall establish a website
that lists the confirmed cases of water supply contamination
that result from hydraulic fracturing.
(c) Presumption.--Unless rebutted by a defense established
in subsection (d), it shall be presumed that a well operator is
responsible for pollution of a water supply if:
(1) except as set forth in paragraph (2):
(i) the water supply is within 1,000 feet of an oil
or gas well; and
(ii) the pollution occurred within six months after
completion of drilling or alteration of the oil or gas
well; or
(2) in the case of an unconventional well:
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(i) the water supply is within 2,500 feet of the
unconventional well; and
(ii) the pollution occurred within 12 months of the
later of completion, drilling or alteration of the
unconventional well.
(d) Defenses.--To rebut the presumption established under
subsection (c), a well operator must affirmatively prove any of
the following:
(1) except as set forth in paragraph (2):
(i) the pollution existed prior to the drilling or
alteration activity as determined by a predrilling or
prealteration survey;
(ii) the landowner or water purveyor refused to
allow the operator access to conduct a predrilling or
prealteration survey;
(iii) the water supply is not within 1,000 feet of
the well;
(iv) the pollution occurred more than six months
after completion of drilling or alteration activities;
and
(v) the pollution occurred as the result of a cause
other than the drilling or alteration activity; or
(2) in the case of an unconventional well:
(i) the pollution existed prior to the drilling or
alteration activity as determined by a predrilling or
prealteration survey;
(ii) the landowner or water purveyor refused to
allow the operator access to conduct a predrilling or
prealteration survey;
(iii) the water supply is not within 2,500 feet of
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the well; and
(iv) the pollution occurred more than 12 months
after completion of drilling or alteration activities.
(e) Independent certified laboratory.--An operator electing
to preserve a defense under subsection (d)(1) or (2) shall
retain an independent certified laboratory to conduct a
predrilling or prealteration survey of the water supply. A copy
of survey results shall be submitted to the department and the
landowner or water purveyor in the manner prescribed by the
department.
(e.1) Notice.--An operator must provide written notice to
the landowner or water purveyor indicating that the presumption
established under subsection (c) may be void if the landowner or
water purveyor refused to allow the operator access to conduct a
predrilling or prealteration survey.
(f) Other remedies preserved.--Nothing in this section shall
prevent a landowner or water purveyor claiming pollution or
diminution of a water supply from seeking any other remedy at
law or in equity.
§ 3219. Use of safety devices.
Any person engaged in drilling an oil or gas well shall equip
it with casings of sufficient strength, and other safety devices
as are necessary, in the manner prescribed by regulation of the
department, and shall use every effort and endeavor effectively
to prevent blowouts, explosions and fires.
§ 3219.1. Well control emergency response.
(a) Contracts.--The department may enter into contracts with
well control specialists in order to provide adequate emergency
response services in the event of a well control emergency.
(b) Civil immunity.--Except as set forth in subsection (c),
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a well control specialist with which the department has entered
into a contract under subsection (a) shall be immune from civil
liability for actions taken in good faith to carry out its
contractual obligations.
(c) Nonapplicability.--Subsection (b) shall not apply to
damage arising from any of the following:
(1) Breach of the contract under subsection (a).
(2) An intentional tort.
(3) Gross negligence.
§ 3220. Plugging requirements.
(a) General rule.--Upon abandoning a well, the owner or
operator shall plug it in the manner prescribed by regulation of
the department to stop vertical flow of fluids or gas within the
well bore, unless the department has granted inactive status for
the well or it has been approved by the department as an orphan
well. If the department determines that a prior owner or
operator received economic benefit, other than economic benefit
derived only as a landowner or from a royalty interest, after
April 18, 1979, from an orphan well or an unregistered well, the
owner or operator shall be responsible for plugging the well. In
the case of a gas well penetrating a workable coal seam which
was drilled prior to January 30, 1956, or which was permitted
after that date but not plugged in accordance with this chapter,
if the owner or operator or a coal operator or an agent proposes
to plug the well to allow mining through it, the gas well shall
be cleaned to a depth of at least 200 feet below the coal seam
through which mining is proposed and, unless impracticable, to a
point 200 feet below the deepest mineable coal seam. The gas
well shall be plugged from that depth in accordance with section
13 of the act of December 18, 1984 (P.L.1069, No.214), known as
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the Coal and Gas Resource Coordination Act, and the regulations
of the department.
(b) Areas underlain by coal.--Prior to the plugging and
abandonment of a well in an area underlain by a workable coal
seam, the well operator or owner shall notify the department and
the coal operator, lessee or owner and submit a plat, on a form
to be furnished by the department, showing the location of the
well and fixing the date and time plugging will commence, which
shall be not less than three working days, nor more than 30
days, after the notice is received, to permit representatives of
the persons notified to be present at the plugging. Notice and
the right to be present may be waived by the department and the
coal operator, lessee or owner, but waiver by the coal operator,
lessee or owner shall be in writing and a copy shall be attached
to the notice of abandonment filed with the department under
this section. Whether or not representatives attend, if the well
operator has fully complied with this section, the well operator
may proceed, at the time fixed, to plug the well in the manner
prescribed by regulation of the department. When plugging has
been completed, a certificate shall be prepared and signed, on a
form to be furnished by the department, by two experienced and
qualified people who participated in the work setting forth the
time and manner in which the well was plugged. One copy of the
certificate shall be mailed to each coal operator, lessee or
owner to whom notice was given by certified mail and another
shall be mailed to the department.
(c) Abandoned wells.--Prior to abandonment of a well, except
an uncompleted bore hole plugged immediately upon suspension of
drilling in an area not underlain by a workable coal seam, the
well operator shall notify the department of the intention to
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plug and abandon the well and submit a plat, on a form to be
furnished by the department, showing the location of the well
and fixing the date and time at which plugging will commence,
which shall be not less than three working days, nor more than
30 days, after the notice is received, to permit a department
representative to be present at the plugging. The notice or
waiting period may be verbally waived by the department. In
noncoal areas where more than one well has been drilled as part
of the same development project and the wells are now to be
plugged, the department shall be given three working days'
notice prior to plugging the first well of the project, subject
to waiver of notice described in subsection (b). In the plugging
of subsequent wells, no additional notice shall be required if
plugging on the project is continuous. If plugging of subsequent
wells is delayed for any reason, notice shall be given to the
department of continuation of the project. Whether or not a
representative attends, if the well operator has fully complied
with this section, the well operator may proceed, at the time
fixed, to plug the well in the manner prescribed by regulation
of the department. When plugging has been completed, a
certificate shall be prepared, on a form to be furnished by the
department, by two experienced and qualified people who
participated in the work setting forth the time and manner in
which the well was plugged. A copy of the certificate shall be
mailed to the department.
(d) Wells abandoned upon completion of drilling.--If a well
is to be abandoned immediately after completion of drilling, the
well operator shall give at least 24 hours' notice by telephone,
confirmed by certified mail, to the department and to the coal
operator, lessee or owner, if any, fixing the date and time when
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plugging will commence. Notice and the right to be present may
be waived by the department and the coal operator, lessee or
owner, if any. Whether or not representatives of the department
or coal operator, lessee or owner, if any, attend, if the well
operator has fully complied with the requirements of this
section, the well operator may proceed, at the time fixed, to
plug the well in the manner provided by regulation of the
department. The well operator shall prepare the certificate of
plugging and mail copies of the same as provided in subsection
(b).
(e) Orphan wells.--If a well is an orphan well or abandoned
without plugging, or if a well is in operation but not
registered under section 3213 (relating to well registration and
identification), the department may enter upon the well site and
plug the well and to sell equipment, casing and pipe at the site
which may have been used in production of the well in order to
recover the costs of plugging. The department shall make an
effort to determine ownership of a well which is in operation
but has not been registered and provide written notice to the
owner of pending action under this subsection. If the department
cannot determine ownership within 30 days, it may proceed under
this subsection. Costs of plugging shall have priority over all
liens on equipment, casing and pipe, and the sale shall be free
and clear of those liens to the extent that the cost of plugging
exceeds the sale price. If the amount obtained for casing and
pipe salvaged at the site is inadequate to pay for plugging, the
owner or operator of the abandoned or unregistered well shall be
liable for the additional costs.
(f) Definition.--For purposes of this section, the term
"owner" does not include the owner or possessor of surface real
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property, on which an abandoned well is located, who did not
participate or incur costs in and had no right of control over
the drilling or extraction operation of the abandoned well.
§ 3221. Alternative methods.
A well operator may request permission to use a method or
material other than those required by this chapter for casing,
plugging or equipping a well in an application to the department
which describes the proposed alternative in reasonable detail
and indicates the manner in which it will accomplish the goals
of this chapter. Notice of filing of the application shall be
given by the well operator by certified mail to any affected
coal operators, who may, within 15 days after the notice, file
objections to the proposed alternative method or material. If no
timely objections are filed or raised by the department, the
department shall determine whether to allow use of the proposed
alternative method or material.
§ 3222. Well reporting requirements.
(a) General rule.--Except as provided in subsection (a.1),
each well operator shall file with the department, on a form
provided by the department, an annual report specifying the
amount of production, on the most well-specific basis available,
along with the status of each well, except that in subsequent
years only changes in status must be reported. The Commonwealth
may utilize reported information in enforcement proceedings, in
making designations or determinations under section 1927-A of
the act of April 9, 1929 (P.L.177, No.175), known as The
Administrative Code of 1929, or in aggregate form for
statistical purposes.
(a.1) Marcellus Shale formation wells.--Each operator of an
unconventional well shall file with the department, on a form
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provided by the department, a semiannual report specifying the
amount of production on the most well-specific basis available.
The initial report under this subsection shall be filed on or
before August 15, 2010, and shall include production data from
the preceding calendar year and specify the status of each well.
In subsequent reports, only changes in status must be reported.
Subsequent semiannual reports shall be filed with the department
on or before February 15 and August 15 of each year and shall
include production data from the preceding reporting period. The
Commonwealth may utilize reported information in enforcement
proceedings, in making designations or determinations under
section 1927-A of The Administrative Code of 1929 or in
aggregate form for statistical purposes. Beginning November 1,
2010, the department shall make the reports available on its
publicly accessible Internet website. Costs incurred by the
department to comply with the requirements of this subsection
shall be paid out of the fees collected under section 3211(d)
(relating to well permits).
(b) Collection of data.--
(1) Well operators shall maintain a record of each well
drilled or altered.
(2) A record containing the information required by the
department shall be filed within 30 days of cessation of
drilling of each well.
(3) A completion report containing any additional
required information shall be filed within 30 days after
completing the well and shall be kept on file by the
department.
(4) (i) The completion report shall include a
stimulation record. At a minimum, the stimulation record
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shall contain pump rates, pressures, total volume used to
stimulate the well, a list of hazardous and other
chemicals used to stimulate the well, volume of water
used, identification of water sources used under a
department-approved water management plan and depth at
which potable aquifers are encountered during drilling.
The well operator may designate specific portions of the
stimulation record as containing a trade secret or
confidential proprietary information. The department
shall prevent disclosure of designated confidential
information to the extent permitted under the act of
February 14, 2008 (P.L.6, No.3), known as the Right-to-
Know Law.
(ii) The completion report shall identify:
(A) whether methane was encountered in other
than a target formation; and
(B) the country of origin and manufacture of the
steel products used in the construction of the well.
(iii) The completion report shall be kept on file by
the department and posted on the department's publicly
accessible Internet website.
(5) Upon request of the department, the well operator
shall, within 90 days of completion or recompletion of
drilling, submit a copy of any electrical, radioactive or
other standard industry logs which have been run. No
information under this paragraph shall be required unless the
well operator has compiled the information in the ordinary
course of business.
(6) Upon request by the department within one year, the
well operator shall file a copy of drill stem test charts,
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formation water analysis, porosity, permeability or fluid
saturation measurements, core analysis and lithologic log or
sample description or other similar data as compiled. No
information under this paragraph shall be required unless the
well operator had it compiled in the ordinary course of
business, and interpretation of data under this paragraph is
not required to be filed.
(c) Drill cuttings and core samples.--Upon notification by
the department prior to commencement of drilling, the well
operator shall collect any additional data specified by the
department, including representative drill cuttings and samples
from cores taken and any other geological information that the
operator reasonably can compile. Interpretation of the data is
not required to be filed.
(d) Retention and filing of data.--Data required under
subsection (b) and drill cuttings required under subsection (c)
shall be retained by the well operator and filed with the
department no more than three years after completion of the
well. Upon request, the department shall extend the deadline up
to five years from the date of completion of the well. The
department shall be entitled to utilize information collected
under this subsection in enforcement proceedings, in making
designations or determinations under section 1927-A of The
Administrative Code of 1929 and in aggregate form for
statistical purposes.
§ 3223. Notification and effect of well transfer.
The owner or operator of a well shall notify the department
in writing within 30 days, in a form directed by regulation, of
sale, assignment, transfer, conveyance or exchange by or to the
owner of the well. A transfer shall not relieve the well owner
20110HB1950PN2837 - 75 -
or operator of an obligation accrued under this chapter, nor
shall it relieve the owner or operator of an obligation to plug
the well until the requirements of section 3225 (relating to
bonding) have been met, at which time the transferring owner or
operator shall be relieved from all obligations under this
chapter, including the obligation to plug the well.
§ 3224. Coal operator responsibilities.
(a) General rule.--At any time prior to removing coal or
other underground materials from, or extending the workings in,
a coal mine within 500 feet of an oil or gas well of which the
coal operator has knowledge, or within 500 feet of an approved
well location of which the coal operator has knowledge, the coal
operator, by certified mail, shall forward to or file with the
well operator and the department a copy of the relevant part of
all maps and plans which it is presently required by law to
prepare and file with the department, showing the pillar which
the coal operator proposes to leave in place around each oil or
gas well in the projected workings. Thereafter, the coal
operator may proceed with mining operations in the manner
projected on the maps and plans, but the operator may not remove
coal or cut a passageway within 150 feet of the well or approved
well location without written approval under this section. If,
in the opinion of the well operator or the department, the plan
indicates that the proposed pillar is inadequate to protect
either the integrity of the well or public health and safety,
the affected well operator shall attempt to reach an agreement
with the coal operator on a suitable pillar, subject to approval
of the department. Upon failure to agree, the well operator may,
within ten days after receipt of the proposed plan under this
section, file objections under section 3251 (relating to
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conferences), indicating the size of the pillar to be left as to
each well. If objections are not timely filed and the department
has none, the department shall grant approval, reciting that
maps and plans have been filed, no objections have been made
thereto and the pillar proposed to be left for each well is
approved in the manner as projected.
(b) Objections.--If an objection is filed by the well
operator or raised by the department, the department shall order
that a conference be held under section 3251 within ten days of
the filing of objections. At the conference, the coal operator
and the person who has objected shall attempt to agree on a
proposed plan, showing the pillar to be left around each well,
which will satisfy the objections and receive department
approval. If an agreement is reached, the department shall grant
approval to the coal operator, reciting that a plan has been
filed and the pillar to be left for each well is approved
pursuant to the agreement. If an agreement is not reached on a
plan showing the pillar to be left with respect to a well, the
department, by appropriate order, shall determine the pillar to
be left with respect to the well. In a proceeding under this
section, the department shall follow as nearly as is possible
the original plan filed by the coal operator. The department
shall not require the coal operator to leave a pillar in excess
of 100 feet in radius, except that the department may require a
pillar of up to 150 feet in radius if the existence of unusual
conditions is established. Pillars determined by the department
shall be shown on maps or plans on file with the department as
provided in subsection (a), and the department shall approve the
pillar to be left for each well.
(c) Pillars of reduced size.--Application may be made at any
20110HB1950PN2837 - 77 -
time to the department by the coal operator to leave a pillar of
a size smaller than shown on the plan approved or determined by
the department under this section. If an application is filed,
the department shall:
(1) follow the appropriate procedure under subsection
(a) or (b);
(2) by appropriate order, determine a plan involving a
pillar of a smaller size as to any well covered by the
application; and
(3) grant approval for the pillar to be left with
respect to each well.
(d) Violation.--No coal operator, without written approval
of the department after notice and opportunity for a hearing
under this section, shall remove coal or cut a passageway so as
to leave a pillar of smaller size, with respect to an oil or gas
well, than that approved by the department under this chapter.
(e) Limitation.--With regard to a coal pillar required by
law to be left around a well drilled prior to April 18, 1985,
nothing in this chapter shall be construed to:
(1) require a well operator to pay for the coal pillar;
(2) affect a right which a coal operator may have had
prior to April 18, 1985, to obtain payment for the coal
pillar; or
(3) affect a duty or right which a storage operator or
landowner may have had prior to April 18, 1985, to pay or not
pay for the coal pillar.
(f) Mining through plugged wells.--A coal operator who
intends to mine through a plugged oil or gas well or otherwise
completely remove any pillar from around that well shall file a
plan under subsection (a) which shall be subject to all of the
20110HB1950PN2837 - 78 -
provisions of this section. No coal operator may mine through a
plugged oil or gas well of which he has knowledge until written
approval has been granted by the department in accordance with
this section. The Bureau of Deep Mine Safety in the department
shall have the authority to establish conditions under which the
department may approve a coal operator's plan to mine through a
plugged oil or gas well.
§ 3225. Bonding.
(a) General rule.--The following shall apply:
(1) Except as provided in subsection (d), upon filing an
application for a well permit, and before continuing to
operate an oil or gas well, the owner or operator of the well
shall file with the department a bond covering the well and
well site on a form to be prescribed and furnished by the
department. A bond filed with an application for a well
permit shall be payable to the Commonwealth and conditioned
upon the operator's faithful performance of all drilling,
water supply replacement, restoration and plugging
requirements of this chapter. A bond for a well in existence
on April 18, 1985, shall be payable to the Commonwealth and
conditioned upon the operator's faithful performance of all
water supply replacement, restoration and plugging
requirements of this chapter. The amount of the bond required
shall be in the following amounts and may be adjusted by the
Environmental Quality Board every two years to reflect the
projected costs to the Commonwealth of plugging the well:
(i) For wells with a total well bore length less
than 6,000 feet:
(A) For operating up to 50 wells, $4,000 per
well; but no bond may be required under this clause
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in excess of $35,000.
(B) For operating 51 to 150 wells, $35,000 plus
$4,000 per well for each well in excess of 50 wells;
but no bond may be required under this clause in
excess of $60,000.
(C) For operating 151 to 250 wells, $60,000 plus
$4,000 per well for each well in excess of 150 wells;
but no bond may be required under this clause in
excess of $100,000.
(D) For operating more than 250 wells, $100,000
plus $4,000 per well for each well in excess of 250
wells; but no bond may be required under this clause
in excess of $250,000.
(ii) For wells with a total well bore length greater
than 6,000 feet:
(A) For operating up to 25 wells, $10,000 per
well; but no bond may be required under this clause
in excess of $60,000.
(B) For operating 26 to 50 wells, $60,000 plus
$10,000 per well for each well in excess of 25 wells;
but no bond may be required under this clause in
excess of $120,000.
(C) For operating 51 to 150 wells, $120,000 plus
$10,000 per well for each well in excess of 50 wells;
but no bond may be required under this clause in
excess of $180,000.
(D) For operating more than 150 wells, $180,000
plus $10,000 per well for each well in excess of 150
wells; but no bond may be required under this clause
in excess of $250,000.
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(2) In lieu of individual bonds for each well, an owner
or operator may file a blanket bond for the applicable amount
under paragraph (1), on a form prepared by the department,
covering all of its wells in this Commonwealth, as enumerated
on the bond form.
(3) Liability under the bond shall continue until the
well has been properly plugged in accordance with this
chapter and for a period of one year after filing of the
certificate of plugging with the department. Each bond shall
be executed by the operator and a corporate surety licensed
to do business in this Commonwealth and approved by the
secretary. In lieu of a corporate surety, the operator may
deposit with the department:
(i) cash;
(ii) certificates of deposit or automatically
renewable irrevocable letters of credit, from financial
institutions chartered or authorized to do business in
this Commonwealth and regulated and examined by the
Commonwealth or a Federal agency, which may be terminated
at the end of a term only upon 90 days' prior written
notice by the financial institution to the permittee and
the department;
(iii) negotiable bonds of the United States
Government or the Commonwealth, the Pennsylvania Turnpike
Commission, the General State Authority, the State Public
School Building Authority or any municipality within the
Commonwealth; or
(iv) United States Treasury Bonds issued at a
discount without a regular schedule of interest payments
to maturity, otherwise known as Zero Coupon Bonds, having
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a maturity date of not more than ten years after the date
of purchase and at the maturity date having a value of
not less than the applicable amount under paragraph (1).
The cash deposit, certificate of deposit, amount of the
irrevocable letter of credit or market value of the
securities shall be equal at least to the sum of the
bond.
(4) The secretary shall, upon receipt of a deposit of
cash, letters of credit or negotiable bonds, immediately
place the same with the State Treasurer, whose duty it shall
be to receive and hold the same in the name of the
Commonwealth, in trust, for the purpose for which the deposit
is made.
(5) The State Treasurer shall at all times be
responsible for custody and safekeeping of deposits. The
operator making the deposit shall be entitled from time to
time to demand and receive from the State Treasurer, on the
written order of the secretary, the whole or any portion of
collateral deposited, upon depositing with the State
Treasurer, in lieu of that collateral, other collateral of
classes specified in this section having a market value at
least equal to the sum of the bond, and also to demand,
receive and recover the interest and income from the
negotiable bonds as they become due and payable.
(6) If negotiable bonds on deposit under this subsection
mature or are called, the State Treasurer, at the request of
the owner of the bonds, shall convert them into other
negotiable bonds, of classes specified in this section,
designated by the owner.
(7) If notice of intent to terminate a letter of credit
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is given, the department shall give the operator 30 days'
written notice to replace the letter of credit with other
acceptable bond guarantees as provided in this section. If
the owner or operator fails to timely replace the letter of
credit, the department shall draw upon and convert the letter
of credit into cash and hold it as a collateral bond
guarantee.
(b) Release.--No bond shall be fully released until the
requirements of subsection (a) and section 3223 (relating to
notification and effect of well transfer) have been fully met.
Upon release of bonds and collateral under this section, the
State Treasurer shall immediately return to the owner the
specified amount of cash or securities.
(c) Noncompliance.--If a well owner or operator fails or
refuses to comply with subsection (a), regulations promulgated
under this chapter or conditions of a permit relating to this
chapter, the department may declare the bond forfeited and shall
certify the same to the Attorney General, who shall proceed to
enforce and collect the full amount of the bond and, if the well
owner or operator has deposited cash or securities as collateral
in lieu of a corporate surety, the department shall declare the
collateral forfeited and direct the State Treasurer to pay the
full amount of the funds into the Well Plugging Restricted
Revenue Account or to sell the security to the extent forfeited
and pay the proceeds into the Well Plugging Restricted Revenue
Account. If a corporate surety or financial institution fails to
pay a forfeited bond promptly and in full, the corporate surety
or financial institution shall be disqualified from writing
further bonds under this chapter or any other environmental law
administered by the department. A person aggrieved by reason of
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forfeiting the bond or converting collateral, as provided in
this section, shall have a right to appeal to the Environmental
Hearing Board in the manner provided by law. Upon forfeiture of
a blanket bond for a violation occurring at one or more well
sites, the person whose bond is forfeited shall, within ten days
of the forfeiture, submit a replacement bond to cover all other
wells of which the person is an owner or operator. Failure to
submit the replacement bond constitutes a violation of this
section as to each of the wells owned or operated by the person.
(d) Alternatives to certain bonds.--The following shall
apply:
(1) An operator of not more than 200 wells who cannot
obtain a bond for a well drilled prior to April 18, 1985, as
required under subsection (a), due to inability to
demonstrate sufficient financial resources may, in lieu of
the bond:
(i) Submit to the department a fee in the amount of
$50 per well, a blanket fee of $500 for ten to 20 wells
or a blanket fee of $1,000 for more than 20 wells, which
shall be a nonrefundable fee paid each year that the
operator has not filed a bond with the department. All
fees collected in lieu of a bond under this subsection
shall be used for the purposes authorized by this
chapter. The Environmental Quality Board shall have the
power, by regulation, to increase the amount of the fees
established under this subsection.
(ii) Make phased deposits of collateral to fully
collateralize the bond, subject to the following:
(A) Payment shall be based on the number of
wells owned or operated. The operator shall make an
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initial deposit and make annual deposits in
accordance with the schedule in clause (B). Interest
accumulated by the collateral shall become a part of
the bond until 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 this subsection or
with a bank selected by the department which shall
act as trustee for the benefit of the Commonwealth to
guarantee the operator's compliance with the
drilling, water supply replacement, restoration and
plugging requirements of this chapter. The operator
shall be required to pay all costs of the trust.
(B) An operator of up to ten existing wells who
does not intend to operate additional wells shall
deposit $250 per well and shall, thereafter, annually
deposit $50 per well until the obligations of this
section are fully met. An operator of 11 to 25 wells
or an operator of up to ten wells who applies for one
or more permits for additional wells shall deposit
$2,000 and shall, thereafter, annually deposit $1,150
plus $150 for each additional well to be permitted
that year until the obligations of this section are
fully met. An operator of 26 to 50 wells shall
deposit $3,000 and shall, thereafter, annually
deposit $1,300 plus $400 for each additional well to
be permitted that year until the obligations of this
section are fully met. An operator of 51 to 100 wells
shall deposit $4,000 and shall, thereafter, annually
deposit $1,500 plus $400 for each additional well to
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be permitted that year until the obligations of this
section are fully met. Operators of 101 to 200 wells
shall deposit $8,000 and shall, thereafter, annually
deposit $1,600 plus $1,000 for each additional well
to be permitted that year until the obligations of
this section are fully met. Operators of more than
200 wells shall fully bond their wells immediately.
(C) The department shall reduce the amount of
phased collateral payments or the period of time over
which phased collateral payments shall be made on
behalf of owners or operators who, prior to August 1,
1992, have paid a fee in lieu of bond under
subparagraph (i), and who, by August 1, 1993, choose
to enter the phased collateral program under this
subparagraph rather than continue to make payments in
lieu of bond. Payments made prior to August 1, 1992,
in lieu of bond shall not be credited in any other
manner, and the department shall not be required to
refund the fees. The Environmental Quality Board, by
regulation, may change the annual deposits
established under clause (B) if necessary to
accommodate a change in the amount of the bond
required under this section.
(2) An operator may continue to pay a fee in lieu of
bond or make phased deposits of collateral to fully
collateralize the bond so long as the operator does not miss
a payment under this subsection and remains in compliance
with this chapter. If an operator misses a payment under this
subsection, the operator shall immediately:
(i) submit the appropriate bond amount in full; or
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(ii) cease all operations and plug all wells.
(d.1) Individuals.--The following shall apply:
(1) An individual who is unable to obtain a bond to
drill new wells due to 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. The individual shall be limited
to drilling ten new wells per calendar year and, for each
well to be drilled, deposit $500 and make an annual deposit
of 10% of the remaining bond amount for a period of ten
years. Interest accumulated shall become a part of the bond
until the collateral plus accumulated interest equals the
amount of the required bond. The collateral shall be
deposited in trust with the State Treasurer under 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
chapter. The individual shall pay all costs of the trust.
(2) Individuals may continue to use phased collateral to
obtain permits if they have not missed a payment for a well
drilled under this provision and remain in compliance with
this chapter. If an individual misses a payment, the
individual shall:
(i) immediately submit the appropriate bond amount
in full; or
(ii) cease all operations and plug all wells.
(3) For purposes of this subsection, an "individual"
means a natural person doing business under his own name.
(e) Reservation of remedies.--All remedies violating this
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chapter, regulations adopted under this chapter and conditions
of permits are expressly preserved. Nothing in this section
shall be construed as an exclusive penalty or remedy for
violations of law. No action taken under this section shall
waive or impair any other remedy or penalty provided in law.
(f) Change of law.--Owners or operators who have failed to
meet the requirements of this section prior to August 1, 1992,
shall not be required to make payments under this section on a
retroactive basis as a condition of obtaining a permit under
this chapter, nor shall the failure be deemed a violation of
this chapter.
§ 3226. Oil and Gas Technical Advisory Board.
(a) Creation of board.--The Oil and Gas Technical Advisory
Board is created, consisting of the following members, all of
whom shall be chosen by the Governor and shall be residents of
this Commonwealth:
(1) Three individuals, each of whom shall be:
(i) a petroleum engineer;
(ii) a petroleum geologist; or
(iii) an experienced driller representative of the
oil and gas industry with three years of experience in
this Commonwealth.
(2) One mining engineer from the coal industry with
three years of experience in this Commonwealth.
(3) One geologist or petroleum engineer with three years
of experience in this Commonwealth, who shall be chosen from
a list of three names submitted by the Citizens Advisory
Council to the Governor and who shall sit as a representative
of the public interest.
(b) Reimbursement.--Board members shall not receive a salary
20110HB1950PN2837 - 88 -
but shall be reimbursed for all necessary expenses incurred in
the performance of their duties.
(c) Majority vote.--All actions of the board shall be by
majority vote. The board shall meet as called by the secretary,
but not less than semiannually, to carry out its duties under
this chapter. The board shall select a chairman and other
officers deemed appropriate.
(d) Consultation.--The department shall consult with the
board in the formulation, drafting and presentation stages of
all regulations of a technical nature promulgated under this
chapter. The board shall be given a reasonable opportunity to
review and comment on all regulations of a technical nature
prior to submission to the Environmental Quality Board for
initial consideration. The written report of the board shall be
presented to the Environmental Quality Board with any regulatory
proposal. The chairman of the board shall be invited to
participate in the presentation of all regulations of a
technical nature before the Environmental Quality Board to the
extent allowed by procedures of the Environmental Quality Board.
Nothing herein shall preclude any member of the board from
filing a petition for rulemaking with the Environmental Quality
Board in accordance with procedures established by the
Environmental Quality Board.
§ 3227. Air contaminant emissions.
(a) Protocols for air contaminant emissions.--No later than
three months after the effective date of this chapter, the
department shall publish protocols for the detection,
quantification and reporting of air contaminant emissions from
unconventional gas production processes including wellhead
activities and the storage of unconventional gas prior to
20110HB1950PN2837 - 89 -
processing.
(b) Report on air contaminant emissions.--No later than nine
months after the effective date of this chapter, the department
shall publish for public comment a draft report quantifying
through measurements and calculations the total air contaminant
emissions in this Commonwealth from unconventional gas
development processes including wellhead activities and the
storage of unconventional gas prior to processing. The
department shall publish the final report no later than one year
after the effective date of this chapter. The department shall
publish a revised report every five years thereafter.
(c) Use of best available scientific principles.--The
department shall use best available scientific principles in
developing the protocols and reports required by this section.
SUBCHAPTER C
UNDERGROUND GAS STORAGE
Sec.
3231. Reporting requirements for gas storage operations.
3232. Reporting requirements for coal mining operations.
3233. General gas storage reservoir operations.
3234. Gas storage reservoir operations in coal areas.
3235. Inspection of facilities and records.
3236. Reliance on maps and burden of proof.
3237. Exemptions and prohibitions.
§ 3231. Reporting requirements for gas storage operations.
(a) General duties.--The following shall apply:
(1) A person injecting into or storing gas in a storage
reservoir underlying or within 3,000 linear feet of a coal
mine operating in a coal seam that extends over the storage
reservoir or reservoir protective area shall, within 60 days,
20110HB1950PN2837 - 90 -
file with the department a copy of a map and certain data in
the form and manner provided in this subsection or as
otherwise prescribed by regulation of the department.
(2) A person injecting gas into or storing gas in a
storage reservoir which is not under or within 3,000 linear
feet of, but less than 10,000 linear feet from, a coal mine
operating in a coal seam that extends over the storage
reservoir or reservoir protective area shall file the map and
data within 60 days or a longer period set by departmental
regulation.
(3) A person proposing to inject or store gas in a
storage reservoir located as defined in paragraph (1) or (2)
shall file the appropriate required map and data with the
department not less than six months prior to starting the
actual injection or storage.
(4) A map required by this subsection shall be prepared
by a competent engineer or geologist, showing:
(i) the stratum in which the existing or proposed
storage reservoir is or is proposed to be located;
(ii) the geographic location of the outside
boundaries of the storage reservoir and reservoir
protective area;
(iii) the location of all known oil or gas wells in
the reservoir or within 3,000 linear feet thereof which
have been drilled into or through the storage stratum,
indicating which have been or are to be cleaned out and
plugged or reconditioned for storage along with the
proposed location of all additional wells which are to be
drilled within the storage reservoir or within 3,000
linear feet thereof.
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(5) The following, if available, shall be furnished for
all known oil or gas wells which have been drilled into or
through the storage stratum within the storage reservoir or
within 3,000 linear feet thereof: name of the operator, date
drilled, total depth, depth of production if the well was
productive of oil or gas, the initial rock pressure and
volume, the depths at which all coal seams were encountered
and a copy of the driller's log or other similar information.
At the time of the filing of the maps and data, a statement
shall be filed:
(i) detailing efforts made to determine that the
wells shown are accurately located on the map;
(ii) affirming that the wells shown represent, to
the best of the operator's knowledge, all oil or gas
wells which have ever been drilled into or below the
storage stratum within the proposed storage reservoir or
within the reservoir protective area;
(iii) stating whether the initial injection is for
testing purposes;
(iv) stating the maximum pressure at which injection
and storage of gas is contemplated; and
(v) providing a detailed explanation of the methods
to be used or which previously have been used in
drilling, cleaning out, reconditioning and plugging wells
in the storage reservoir or within the reservoir
protective area.
(6) The map and data required to be filed under
paragraph (5) shall be amended or supplemented semiannually
if material changes occur. The department may require a
storage operator to amend or supplement the map or data at
20110HB1950PN2837 - 92 -
more frequent intervals if material changes have occurred
justifying the earlier filing.
(b) Other reporting requirements.--A person who is injecting
gas into or storing gas in a storage reservoir not at the time
subject to subsection (a), by a process other than that of
secondary recovery or gas recycling, shall, within 60 days, or a
longer period set by departmental regulations, file maps and
data required by departmental regulation and as follows:
(1) A person who, after April 18, 1985, proposes to
inject or store gas in a storage reservoir in an area not
covered by subsection (a) by a process other than that of
secondary recovery or gas recycling shall file the required
map and data with the department not less than six months
prior to the starting of actual injection or storage.
(2) The map shall be prepared by a competent engineer or
competent geologist and show:
(i) the stratum in which the existing or proposed
storage reservoir is or is to be located;
(ii) the geographic location of the outside
boundaries of the storage reservoir; and
(iii) the location of all known oil or gas wells
within the reservoir, or within 3,000 linear feet
thereof, which have been drilled into or through the
storage stratum, indicating which have been or are to be
cleaned out and plugged or reconditioned for storage and
the proposed location of all additional wells which are
to be drilled within the storage reservoir or within
3,000 linear feet thereof.
(3) The following, if available, shall be furnished for
all known oil or gas wells which have been drilled into or
20110HB1950PN2837 - 93 -
through the storage stratum within the storage reservoir or
within 3,000 linear feet thereof: name of the operator, date
drilled, total depth, depth of production if the well was
productive of oil or gas, the initial rock pressure and
volume and a copy of the driller's log or other similar
information. At the time of the filing of the maps and data,
a statement shall be filed:
(i) detailing efforts made to determine that the
wells shown are accurately located on the map;
(ii) affirming that the wells shown represent, to
the best of the operator's knowledge, all oil or gas
wells which have ever been drilled into or below the
storage stratum within the proposed storage reservoir;
(iii) stating whether the initial injection is for
testing purposes;
(iv) stating the maximum pressure at which injection
and storage of gas is contemplated; and
(v) providing a detailed explanation of the methods
to be used or which previously have been used in
drilling, cleaning out, reconditioning and plugging wells
in the storage reservoir.
(4) The map and data required to be filed under
paragraph (3) shall be amended or supplemented semiannually
if material changes occur. The department may require a
storage operator to amend or supplement the map or data at
more frequent intervals if material changes have occurred
justifying the earlier filing.
(c) Political subdivisions.--Storage operators shall give
notice to the department of the name of each political
subdivision and county in which the operator maintains and
20110HB1950PN2837 - 94 -
operates a gas storage reservoir.
(d) Notice to affected persons.--At the time of the filing
of maps and data and the filing of amended or supplemental maps
or data required by this section, the person filing the
information shall give written notice of the filing to all
persons who may be affected under the provisions of this chapter
by the storage reservoir described in the maps or data. Notices
shall contain a description of the boundaries of the storage
reservoir. When a person operating a coal mine or owning an
interest in coal properties which are or may be affected by the
storage reservoir requests, in writing, a copy of any map or
data filed with the department, the copy shall be furnished by
the storage operator.
(e) Outside boundaries.--For purposes of this chapter, the
outside boundaries of a storage reservoir shall be defined by
the location of those wells around the periphery of the storage
reservoir which had no gas production when drilled in the
storage stratum. The boundaries shall be originally fixed or
subsequently changed if, based on the number and nature of the
wells and the geological and production knowledge of the storage
stratum, its character, permeability, distribution and operating
experience, it is determined in a conference under section 3251
(relating to conferences) that modifications should be made.
(f) Inapplicability of section.--The requirements of this
section shall not apply to the operator of an underground gas
storage reservoir so long as the reservoir is located more than
10,000 linear feet from an operating coal mine, except that the
storage operator shall give notice to the department of the name
of each political subdivision and county in which the operator
maintains and operates a gas storage reservoir. In political
20110HB1950PN2837 - 95 -
subdivisions and counties where both gas storage reservoirs and
coal mines are being operated, the department may request the
storage operator to furnish maps showing geographical locations
and outside boundaries of the storage reservoirs. The department
shall keep a record of the information and promptly notify the
coal operator and the storage operator when notified by them
that the coal mine and storage reservoir are within 10,000
linear feet of each other.
§ 3232. Reporting requirements for coal mining operations.
(a) General rule.--A person owning or operating a coal mine
shall file with the department a map prepared and sealed by a
competent individual licensed as a professional engineer or
professional land surveyor under the provisions of the act of
May 23, 1945 (P.L.913, No.367), known as the Engineer, Land
Surveyor and Geologist Registration Law, showing the outside
coal boundaries of the operating coal mine, the existing
workings and exhausted areas and the relationship of the
boundaries to identifiable surface properties and landmarks. A
person owning or operating an operating coal mine which has been
penetrated by a well shall furnish a mine map to the department
each year indicating the excavations for the preceding year and
the projections for the ensuing year. The map required by this
subsection shall be furnished to a person storing or
contemplating the storage of gas in the vicinity of operating
coal mines, upon written request, by the coal operator, and the
person and the department shall thereafter be informed of any
boundary changes at the time the changes occur. The department
shall keep a record of the information and promptly notify the
coal operator and storage operator when notified by them that
the coal mine and the storage reservoir are within 10,000 linear
20110HB1950PN2837 - 96 -
feet of each other.
(b) Mines near certain reservoirs.--A person owning or
operating any coal mine which is or which comes within 10,000
linear feet of a storage reservoir and where the coal seam being
operated extends over the storage reservoir or reservoir
protective area shall, within 45 days after receiving notice
from the storage operator of that fact, file with the department
and furnish to the person operating the storage reservoir a map
in the form required by subsection (a) showing, in addition to
the requirements of subsection (a), existing and projected
excavations and workings of the operating coal mine for the
ensuing 18-month period and the location of oil or gas wells of
which the coal operator has knowledge. The person owning or
operating the coal mine shall, each six months thereafter, file
with the department and furnish to the person operating the
storage reservoir a revised map showing any additional
excavations and workings, together with the projected
excavations and workings for the then ensuing 18-month period,
which may be within 10,000 linear feet of the storage reservoir.
The department may require a coal operator to file revised maps
at more frequent intervals if material changes have occurred
justifying earlier filing. The person owning or operating the
coal mine shall also file with the department and furnish the
person operating the reservoir prompt notice of any wells which
have been cut into, together with all available pertinent
information.
(c) Mines near gas storage reservoirs.--A person owning or
operating a coal mine who has knowledge that it overlies or is
within 2,000 linear feet of a gas storage reservoir shall,
within 30 days, notify the department and the storage operator
20110HB1950PN2837 - 97 -
of that fact.
(d) Mines projected to be near storage reservoirs.--When a
person owning or operating a coal mine expects that, within the
ensuing nine-month period, the coal mine will be extended to a
point which will be within 2,000 linear feet of any storage
reservoir, the person shall notify the department and storage
operator in writing of that fact.
(e) New mines.--A person intending to establish or
reestablish an operating coal mine which will be over a storage
reservoir or within 2,000 linear feet of a storage reservoir or
may, within nine months thereafter, be expected to be within
2,000 linear feet of a storage reservoir shall immediately
notify the department and storage operator in writing. Notice
shall include the date on which the person intends to establish
or reestablish the operating coal mine.
(f) Misdemeanor.--A person who serves notice as required by
this subsection of an intention to establish or reestablish an
operating coal mine, without intending in good faith to
establish or reestablish the mine, is liable for continuing
damages to a storage operator injured by the improper notice and
commits a misdemeanor subject to the penalties of section 3255
(relating to penalties).
§ 3233. General gas storage reservoir operations.
(a) General rule.--A person who operates or proposes to
operate a storage reservoir, except one filled by the secondary
recovery or gas recycling process, shall:
(1) Use every known method which is reasonable under the
circumstances for discovering and locating all wells which
have or may have been drilled into or through the storage
reservoir.
20110HB1950PN2837 - 98 -
(2) Plug or recondition, as provided in departmental
regulations, all known wells drilled into or through the
storage reservoir, except to the extent otherwise provided in
subsections (b) and (c).
(b) Wells to be plugged.--To comply with subsection (a),
wells which are to be plugged shall be plugged in the manner
specified in section 3220 (relating to plugging requirements).
(b.1) Wells plugged prior to enactment of section.--If a
well located in the storage reservoir area has been plugged
prior to April 18, 1985, and on the basis of data, information
and other evidence submitted to the department, it is determined
that the plugging was done in the manner required by section
3220 or approved as an alternative method under section 3221
(relating to alternative methods) and the plugging is still
sufficiently effective to meet the requirements of this chapter,
the obligations under subsection (a) with regard to plugging the
well shall be considered to have been fully satisfied.
(c) Wells to be reconditioned.--The following shall apply:
(1) To comply with subsection (a), wells which are to be
reconditioned shall, unless the department by regulation
specifies a different procedure, be cleaned out from the
surface through the storage horizon, and the producing casing
and casing strings determined not to be in good physical
condition shall be replaced with new casing, using the same
procedure as is applicable to drilling a new well under this
chapter. In the case of wells to be used for gas storage, the
annular space between each string of casing and the annular
space behind the largest diameter casing to the extent
possible shall be filled to the surface with cement or
bentonitic mud or a nonporous material approved by the
20110HB1950PN2837 - 99 -
department under section 3221. At least 15 days prior to
reconditioning, the storage operator shall give notice to the
department, setting forth in the notice the manner in which
it is planned to recondition the well and any pertinent data
known to the storage operator which will indicate the
condition of the well existing at that time. In addition, the
storage operator shall give the department at least 72 hours'
notice of the time when reconditioning is to begin. If no
objections are raised by the department within ten days, the
storage operator may proceed with reconditioning in
accordance with the plan as submitted. If objections are made
by the department, the department may fix a time and place
for a conference under section 3251 (relating to conferences)
at which the storage operator and department shall endeavor
to agree on a plan to satisfy the objections and meet the
requirements of this section. If no agreement is reached, the
department may, by an appropriate order, determine whether
the plan as submitted meets the requirements of this section
or what changes, if any, are required. If, in reconditioning
a well in accordance with the plan, physical conditions are
encountered which justify or necessitate a change in the
plan, the storage operator may request that the plan be
changed. If the request is denied, the department shall fix a
conference under section 3251 and proceed in the same manner
as with original objections. An application may be made in
the manner prescribed by section 3221 for approval of an
alternative method of reconditioning a well. If a well
located within the storage reservoir was reconditioned, or
drilled and equipped, prior to April 18, 1985, the
obligations imposed by subsection (a), as to reconditioning
20110HB1950PN2837 - 100 -
the well, shall be considered fully satisfied if, on the
basis of the data, information and other evidence submitted
to the department, it is determined that:
(i) The conditioning or previous drilling and
equipping was done in the manner required in this
subsection, in regulations promulgated under this chapter
or in a manner approved as an alternative method in
accordance with section 3221.
(ii) The reconditioning or previous drilling and
equipping is still sufficiently effective to meet the
requirements of this chapter.
(2) If a well requires emergency repairs, this chapter
shall not be construed to require the storage operator to
give any notice required by this subsection before making the
repairs.
(d) Exception.--The requirements of subsection (a) shall not
apply to injection of gas into a stratum when the sole purpose
of injection, referred to in this subsection as testing, is to
determine whether the stratum is suitable for storage purposes.
Testing shall be conducted only in compliance with the following
requirements:
(1) The person testing or proposing to test shall comply
with section 3231 (relating to reporting requirements for gas
storage operations) and verify the statement required to be
filed by that section.
(2) The storage operator shall give at least six months'
written notice to the department of the fact that injection
of gas for testing purposes is proposed.
(3) If the department has objections, the department
shall fix a time and place for a conference under section
20110HB1950PN2837 - 101 -
3251, not more than ten days from the date of notice to the
storage operator, at which time the storage operator and
department shall attempt to resolve the issues presented. If
an agreement cannot be reached, the department may issue an
appropriate order.
(e) Failure to execute lawful order.--In a proceeding under
this chapter, if the department determines that an operator of a
storage reservoir has failed to carry out a lawful order issued
under this chapter, the department may require the operator to
suspend operation of the reservoir and withdraw the gas until
the violation is remedied, in which case the storage operator,
limited by due diligence insofar as existing facilities utilized
to remove gas from the reservoir will permit, shall:
(1) if possible, remove the amount required by the
department to be removed; or
(2) in any event, remove the maximum amount which can be
withdrawn in accordance with recognized engineering and
operating procedures.
(f) Duty of storage reservoir operator.--The following shall
apply:
(1) A person owning or operating a storage reservoir
subject to this chapter shall have a duty to:
(i) Maintain all wells drilled into or through the
reservoir in a condition, and operate them in a manner,
sufficient to prevent the escape of gas.
(ii) Operate and maintain the reservoir and its
facilities as prescribed by departmental regulations and
at a pressure which will prevent gas from escaping, but
the pressure shall not exceed the highest rock pressure
found to have existed during the production history of
20110HB1950PN2837 - 102 -
the reservoir or another high pressure limit approved by
the department after holding a conference under section
3251 based on geological and production knowledge of the
reservoir, its character, permeability distribution and
operating experience.
(2) The duty under paragraph (1) shall not be construed
to include inability to prevent the escape of gas when gas
escapes as a result of an act of God or a person not under
the control of the storage operator. In that instance, the
storage operator shall have a duty to take action reasonably
necessary to prevent further escape of gas. This paragraph
does not apply to a well which the storage operator failed to
locate and make known to the department.
§ 3234. Gas storage reservoir operations in coal areas.
(a) General rule.--A person operating a storage reservoir
which underlies or is within 2,000 linear feet of a coal mine
operating in a coal seam that extends over the storage reservoir
or the reservoir protective area shall:
(1) Use every known reasonable method for discovering
and locating all wells which have or may have been drilled
into or through the storage stratum in the acreage lying
within the outside coal boundaries of the operating coal mine
overlying the storage reservoir or the reservoir protective
area.
(2) Plug or recondition, as provided by section 3220
(relating to plugging requirements) and subsection (e), all
known wells, except to the extent provided in subsections
(e), (f), (g) and (h), drilled into or through the storage
stratum and located within the portion of the acreage of the
operating coal mine overlying the storage reservoir or the
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reservoir protective area. If an objection is raised as to
use of a well as a storage well and after a conference under
section 3251 (relating to conferences), it is determined by
the department, taking into account all circumstances and
conditions, that the well should not be used as a storage
well, the well shall be plugged unless, in the opinion of the
storage operator, the well may be used as a storage well in
the future, in which case, upon approval of the department
after taking into account all circumstances and conditions,
the storage operator may recondition and inactivate the well
rather than plug it.
(3) The requirements of paragraph (2) shall be deemed to
have been fully complied with if, as the operating coal mine
is extended, all wells which from time to time come within
the acreage described in paragraph (2) are reconditioned or
plugged as provided in section 3220 and subsection (e) or (f)
so that, by the time the coal mine has reached a point within
2,000 linear feet of the wells, they will have been
reconditioned or plugged in accordance with section 3220 and
subsection (e) or (f).
(b) Verified statement.--A person operating a storage
reservoir referred to in subsection (a) shall file with the
department and furnish a copy to the person operating the
affected operating coal mine a verified statement setting forth:
(1) That the map and any supplemental maps required by
section 3231(a) (relating to reporting requirements for gas
storage operations) have been prepared and filed in
accordance with section 3231.
(2) A detailed explanation of what the storage operator
has done to comply with the requirements of subsection (a)(1)
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and (2) and the results of those actions.
(3) Such additional efforts, if any, as the storage
operator is making and intends to make to locate all wells.
(4) Any additional wells that are to be plugged or
reconditioned to meet the requirements of subsection (a)(2).
(b.1) Order of department.--If the statement required under
subsection (b) is not filed by the storage reservoir operator
within the time specified by this chapter or the regulations of
the department, the department may order the operator to file
the statement.
(c) Procedure.--Within 120 days after receipt of a statement
required by this section, the department may direct that a
conference be held in accordance with section 3251 to determine
whether the requirements of section 3231 and subsection (a) have
been fully met. At the conference, if any person believes the
requirements have not been fully met, the parties shall attempt
to agree on additional actions to be taken and the time for
completion, subject to approval of the department. If an
agreement cannot be reached, the department shall make a
determination and, if the department determines any requirements
have not been met, the department shall issue an order
specifying in detail the extent to which the requirements have
not been met and the actions which the storage operator must
complete to meet the requirements. The order shall grant as much
time as is reasonably necessary to fully comply. If the storage
operator encounters conditions not known to exist at the time of
issuance of the order and which materially affect the validity
of the order or the ability of the storage operator to comply
with it, the storage operator may apply for a rehearing or
modification of the order.
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(d) Notification.--If, in complying with subsection (a), a
storage operator, after filing the statement provided for in
subsection (b), plugs or reconditions a well, the storage
operator shall notify the department and the coal operator
affected, in writing, setting forth facts indicating the manner
in which the plugging or reconditioning was done. Upon receipt
of the notification, the coal operator or department may request
a conference under section 3251.
(e) Plugging wells.--In order to meet the requirements of
subsection (a), wells which are to be plugged shall be plugged
in the manner specified in regulations promulgated under section
3211 (relating to well permits). When a well located within the
storage reservoir or the reservoir protective area has been
plugged prior to April 18, 1985, and, on the basis of the data
information and other evidence submitted to the department, it
is determined that the plugging was done in the manner required
by section 3220, or in a manner approved as an alternative
method in accordance with section 3221 (relating to alternative
methods), and the plugging is still sufficiently effective to
meet the requirements of this chapter, the requirements of
subsection (a) as to plugging the well shall be considered to
have been fully satisfied.
(f) Reconditioned wells.--The following shall apply:
(1) In order to comply with subsection (a), unless the
department by regulation specifies a different procedure,
wells which are to be reconditioned shall be cleaned out from
the surface through the storage horizon, and the following
casing strings shall be pulled and replaced with new casing,
using the procedure applicable to drilling a new well under
this chapter:
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(i) the producing casing;
(ii) the largest diameter casing passing through the
lowest workable coal seam unless it extends at least 25
feet below the bottom of the coal seam and is determined
to be in good physical condition, but the storage
operator may, instead of replacing the largest diameter
casing, replace the next largest casing string if the
casing string extends at least 25 feet below the lowest
workable coal seam; and
(iii) casing strings determined not to be in good
physical condition.
(2) In the case of a well to be used for gas storage,
the annular space between each string of casing and the
annular space behind the largest diameter casing, to the
extent possible, shall be filled to the surface with cement
or bentonitic mud or an equally nonporous material approved
by the department under section 3221.
(3) At least 15 days before a well is to be
reconditioned, the storage operator shall give notice to the
department and the coal operator, lessee or owner, setting
forth the manner in which reconditioning is planned and
pertinent data known to the storage operator which will
indicate the current condition of the well, along with at
least 72 hours' notice of the date and time when
reconditioning will begin. The coal operator, lessee or owner
shall have the right to file, within ten days after receipt
of the notice, objections to the plan of reconditioning as
submitted by the storage operator. If no objections are filed
and none are raised by the department within ten days, the
storage operator may proceed with reconditioning in
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accordance with the plan as submitted. If an objection is
filed or made by the department, the department shall fix a
time and place for a conference under section 3251, at which
conference the storage operator and the person having
objections shall attempt to agree on a plan of reconditioning
that meets the requirements of this section. If no agreement
is reached, the department shall, by an appropriate order,
determine whether the plan as submitted meets the
requirements of this section or what changes should be made
to meet the requirements. If, in reconditioning the well in
accordance with the plan, physical conditions are encountered
which justify or necessitate a change in the plan, the
storage operator or coal operator may request that the plan
be changed. If the parties cannot agree on a change, the
department shall arrange for a conference to determine the
matter in the same manner as set forth in connection with
original objections to the plan.
(4) Application may be made to the department in the
manner prescribed in section 3221 for approval of an
alternative method of reconditioning a well. When a well
located within the storage reservoir or the reservoir
protective area has been reconditioned or drilled and
equipped prior to April 18, 1985, and, on the basis of the
data, information and other evidence submitted to the
department, the obligations imposed by subsection (a) as to
reconditioning the well shall be considered to be fully
satisfied if it is determined that reconditioning or previous
drilling and equipping:
(i) was done in the manner required in this
subsection, or in regulations promulgated hereunder, or
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in a manner approved as an alternative method in
accordance with section 3221; or
(ii) is still sufficiently effective to meet the
requirements of this chapter.
(5) If a well requires emergency repairs, this
subsection shall not be construed to require the storage
operator to give the notices specified herein before making
the repairs.
(g) Producing wells.--If a well located within the reservoir
protective area is a producing well in a stratum below the
storage stratum, the obligations imposed by subsection (a) shall
not begin until the well ceases to be a producing well.
(h) Certain other wells.--If a well within a storage
reservoir or reservoir protective area penetrates the storage
stratum but does not penetrate the coal seam being mined by an
operating coal mine, the department may, upon application of the
operator of the storage reservoir, exempt the well from the
requirements of this section. Either party affected may request
a conference under section 3251 with respect to exemption of a
well covered by this subsection.
(i) Plugging limitation.--In fulfilling the requirements of
subsection (a)(2) with respect to a well within the reservoir
protective area, the storage operator shall not be required to
plug or recondition the well until the storage operator has
received from the coal operator written notice that the mine
workings will, within the period stated in the notice, be within
2,000 linear feet of the well. Upon the receipt of the notice,
the storage operator shall use due diligence to complete the
plugging or reconditioning of the well in accordance with the
requirements of this section and section 3220. If the mine
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workings do not, within a period of three years after the well
has been plugged, come within 2,000 linear feet of the well, the
coal operator shall reimburse the storage operator for the cost
of plugging, provided that the well is still within the
reservoir protective area as of that time.
(j) Retreat mining.--If retreat mining approaches a point
where, within 90 days, it is expected that the retreat work will
be at the location of the pillar surrounding an active storage
well, the coal operator shall give written notice to the storage
operator, and by agreement, the parties shall determine whether
it is necessary or advisable to effectively and temporarily
inactivate the well. The well shall not be reactivated until a
reasonable period, determined by the parties, has elapsed. If
the parties cannot agree as required by this subsection, the
matter shall be submitted to the department for resolution. The
number of wells required to be temporarily inactivated during
the retreat period shall not be of a number that materially
affects efficient operation of the storage pool, except that
this provision shall not preclude temporary inactivation of a
particular well if the practical effect of inactivating it is to
render the pool temporarily inoperative.
(k) Exceptions.--The requirements of subsections (a), (l)
and (m) shall not apply to injection of gas into a stratum when
the whole purpose of injection, referred to in this subsection
as testing, is to determine whether the stratum is suitable for
storage purposes. Testing shall be conducted only in compliance
with the following requirements:
(1) The person testing or proposing to test shall comply
with all provisions and requirements of section 3231 and
verify the statement required to be filed by that section.
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(2) If any part of the proposed storage reservoir is
under or within 2,000 linear feet of an operating coal mine
which is operating in a coal seam that extends over the
proposed storage reservoir or the reservoir protective area,
the storage operator shall give at least six months' written
notice to the department and coal operator of the fact that
injection of gas for testing purposes is proposed.
(3) The coal operator affected may at any time file
objections with the department, whereupon the department
shall fix a time and place for a conference under section
3251, not more than ten days from the date of the notice to
the storage operator. At the conference, the storage operator
and the objecting party shall attempt to agree, subject to
approval of the department, on the questions involved. If an
agreement cannot be reached, the department may issue an
appropriate order.
(4) If at any time a proposed storage reservoir being
tested comes under or within 2,000 linear feet of an
operating coal mine because of extension of the storage
reservoir being tested or because of extension or
establishment or reestablishment of the operating coal mine,
the requirements of this subsection shall immediately become
applicable to the testing.
(l) Storage reservoirs near operating coal mines.--A person
who proposes to establish a storage reservoir under or within
2,000 linear feet of a coal mine operating in a coal seam that
extends over the storage reservoir or the reservoir protective
area shall, prior to establishing the reservoir, and in addition
to complying with section 3231 and subsection (a), file the
verified statement required by subsection (b) and fully comply
20110HB1950PN2837 - 111 -
with any order of the department in the manner provided under
subsection (b) or (c) before commencing operation of the storage
reservoir. After the person proposing to operate the storage
reservoir complies with the requirements of this subsection and
commences operations, the person shall continue to be subject to
all provisions of this chapter.
(m) Gas storage reservoirs.--If a gas storage reservoir is
in operation on April 18, 1985, and at any time thereafter it is
under or within 2,000 linear feet of an operating coal mine, or
if a gas storage reservoir is put in operation after April 18,
1985, and at any time after storage operations begin it is under
or within 2,000 linear feet of an operating coal mine, the
storage operator shall comply with all of the provisions of this
section, except that:
(1) the time for filing the verified statement under
subsection (b) shall be 60 days after the date stated in the
notice filed by the coal operator under section 3232(d) and
(e) (relating to reporting requirements for coal mining
operations);
(2) the coal operator shall give notice of the delay to
the department;
(3) the department shall, upon the request of the
storage operator, extend the time for filing the statement by
the additional time which will be required to extend or
establish or reestablish the operating coal mine to a point
within 2,000 linear feet of the reservoir;
(4) the verified statement shall also indicate that the
map referred to in section 3231(a) has been currently amended
as of the time of the filing of the statement; and
(5) the person operating the storage reservoir shall
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continue to be subject to all of the provisions of this
chapter.
(n) Failure to comply with order.--If, in any proceeding
under this chapter, the department determines that an operator
of a storage reservoir has failed to comply with a lawful order
issued under this chapter, the department may require the
storage operator to suspend operation of the reservoir and
withdraw the gas from it until the violation is remedied, in
which case the storage operator, limited by due diligence
insofar as existing facilities utilized to remove gas from the
reservoir will permit, shall:
(1) if possible, remove the amount required by the
department to be removed; or
(2) in any event, remove the maximum amount which can be
withdrawn in accordance with recognized engineering and
operating procedures.
(o) Prevention of escape of gas.--In addition to initial
compliance with other provisions of this chapter and lawful
orders issued under this chapter, it shall be the duty, at all
times, of a person owning or operating a storage reservoir
subject to this chapter to keep all wells drilled into or
through the storage stratum in a condition, and operate the
wells in a manner, which is designed to prevent the escape of
gas out of the storage reservoir and its facilities, and to
operate and maintain the storage reservoir and its facilities in
the manner prescribed by regulation of the department and at a
pressure that will prevent gas from escaping from the reservoir
or its facilities. This duty shall not be construed to include
inability to prevent the escape of gas when escape results from
an act of God or a person not under the control of the storage
20110HB1950PN2837 - 113 -
operator, except that this exception does not apply to a well
which the storage operator has failed to locate and make known
to the department. If an escape of gas results from an act of
God or a person not under the control of the storage operator,
the storage operator shall be under the duty to take any action
reasonably necessary to prevent further escape of gas out of the
storage reservoir and its facilities.
§ 3235. Inspection of facilities and records.
(a) General rule.--The person operating a storage reservoir
affected by this chapter shall, at all reasonable times, be
permitted to inspect applicable records and facilities of a coal
mine overlying the storage reservoir or reservoir protective
area. The person operating a coal mine affected by this chapter
shall, at all reasonable times, be permitted to inspect
applicable records and facilities of a storage reservoir
underlying the coal mine.
(b) Order.--If a storage operator or coal operator subject
to subsection (a) refuses to permit inspection of records or
facilities, the department may, on its own motion or on
application of the party seeking inspection, after reasonable
written notice and a hearing if requested by an affected party,
order inspection.
§ 3236. Reliance on maps and burden of proof.
(a) General rule.--In determining whether a coal mine or
operating coal mine is or will be within a particular distance
from a storage reservoir which is material under this chapter,
the owner or operator of the coal mine and the storage operator
may rely on the most recent map of the storage reservoir or coal
mine filed by the other party with the department.
(b) Accuracy.--Where accuracy of a map or data filed under
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this chapter is in issue, the person that filed the map or data
shall:
(1) at the request of an objecting party, disclose the
information and method used to compile the map or data, along
with any information available to the person that might
affect current validity of the map or data; and
(2) have the burden of proving accuracy of the map or
data.
§ 3237. Exemptions and prohibitions.
(a) Inapplicability of chapter to certain coal mines.--This
chapter shall not apply to the following types of coal mines:
(1) Strip mines and auger mines operating from the
surface.
(2) Mines to which the former act of June 9, 1911
(P.L.756, No.319), entitled "An act to provide for the health
and safety of persons employed in and about the bituminous
coal-mines of Pennsylvania, and for the protection and
preservation of property connected therewith," did not apply
in accordance with section 3 of that act.
(3) Mines to which the former act of June 2, 1891
(P.L.176, No.177), entitled "An act to provide for the health
and safety of persons employed in and about the anthracite
coal mines of Pennsylvania and for the protection and
preservation of property connected therewith," did not apply
in accordance with section 32 of that act.
(b) Workable coal seams.--Injection of gas for storage
purposes in a workable coal seam, whether or not it is being or
has been mined, is prohibited.
(b.1) Original extraction.--Nothing in this chapter
prohibits original extraction of natural gas, crude oil or coal.
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(c) Certain rock formations.--Nothing in this chapter
applies to storage of gas or liquids in storage reservoirs
excavated in rock formations specifically for storage purposes.
SUBCHAPTER D
EMINENT DOMAIN
Sec.
3241. Appropriation of interest in real property.
§ 3241. Appropriation of interest in real property.
(a) General rule.--Except as provided in this subsection, a
corporation empowered to transport, sell or store natural gas or
manufactured gas in this Commonwealth may appropriate an
interest in real property located in a storage reservoir or
reservoir protective area for injection, storage and removal
from storage of natural gas or manufactured gas in a stratum
which is or previously has been commercially productive of
natural gas. The right granted by this subsection shall not be
exercised to acquire any of the following for the purpose of gas
storage:
(1) An interest in a geological stratum within the area
of a proposed storage reservoir or reservoir protective area:
(i) unless the original recoverable oil or gas
reserves in the proposed storage reservoir have been
depleted or exhausted by at least 80%; and
(ii) until the condemnor has acquired the right, by
grant, lease or other agreement, to store gas in the
geological stratum underlying at least 75% of the area of
the proposed storage reservoir.
(2) An interest in a geological stratum within the area
of a proposed storage reservoir or reservoir protective area
owned directly or indirectly by a gas company or other person
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engaged in local distribution of natural gas, if the interest
to be acquired is presently being used by the gas company or
other person for storage of gas in performance of service to
customers in its service area.
(b) Construction.--The following shall apply:
(1) This chapter authorizes appropriation within a
storage reservoir or reservoir protective area of the
following:
(i) a stratum to be used for storage;
(ii) any gas reserve remaining a stratum to be used
for storage;
(iii) an active or abandoned well or wells drilled
into a stratum to be used for storage; and
(iv) the right to enter upon and use the surface of
lands to:
(A) locate, recondition, maintain, plug or
replug an active or abandoned well; or
(B) operate a well drilled into or through a
stratum to be used for storage.
(2) This chapter does not preclude the owner of
nonstorage strata from drilling wells to produce oil or gas
from a stratum above or below the storage stratum
appropriated by another person, but a person appropriating or
holding storage rights may access, inspect and examine the
drilling, the completed well, drilling logs and other records
relating to drilling, equipping or operating the well in
order to determine whether the storage stratum is being
adequately protected to prevent escape of gas stored therein.
(3) This chapter does not authorize appropriation of a
coal or coal measure, regardless of whether it is being
20110HB1950PN2837 - 117 -
mined, or an interest in the coal mine or coal measure.
(c) Activities through appropriated strata.--A person
drilling, operating, using or plugging a well through a stratum
appropriated under this chapter shall drill, case, equip,
operate or plug it in a manner designed to prevent avoidable
escape of gas that may be stored in the storage stratum. Upon
violation of this subsection, the court of common pleas of the
county where the land in question is situated may compel
compliance by injunction or grant other appropriate relief in an
action brought by the person storing gas in the storage stratum.
(d) Prerequisites to appropriation.--Before appropriating
under this chapter, a person shall attempt to agree with owners
of interests in the real property involved as to damages payable
for rights and interests to be appropriated, if the owners can
be found and are sui juris. If the parties fail to agree, the
person shall tender a surety bond to the owners to secure them
in the payment of damages. If the owners refuse to accept the
bond, cannot be found or are not sui juris, and after reasonable
notice to the owners by advertisement or otherwise, the bond
shall be presented for approval to the court of common pleas of
the county in which the tract of land is situated. Upon the
approval of the bond by the court, the right of the person to
appropriate in accordance with the provisions of this chapter
shall be complete.
(e) Appointment of viewers.--Upon petition of a property
owner or a person appropriating under this chapter, the court
shall:
(1) appoint three disinterested freeholders of the
county to serve as viewers to assess damages to be paid to
the property owner for the rights appropriated;
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(2) fix a time for the parties to meet;
(3) provide notice to the parties; and
(4) after the viewers have filed their report, fix
reasonable compensation for the service of the viewers.
(f) Appeal.--Within 20 days after the filing of a report by
viewers appointed under subsection (e), a party may appeal and
proceed to a jury trial as in ordinary cases.
(g) Requirements.--Nothing in this section shall relieve a
person operating a storage reservoir from the requirements of
this chapter.
SUBCHAPTER E
ENFORCEMENT AND REMEDIES
Sec.
3251. Conferences.
3252. Public nuisances.
3253. Enforcement orders.
3254. Restraining violations.
3254.1. Well control emergency response cost recovery.
3255. Penalties.
3256. Civil penalties.
3257. Existing rights and remedies preserved and cumulative
remedies authorized.
3258. Inspection and production of materials, witnesses,
depositions and rights of entry.
3259. Unlawful conduct.
3260. Collection of fines and penalties.
3261. Third party liability.
3262. Inspection reports.
§ 3251. Conferences.
(a) General rule.--The department or any person having a
20110HB1950PN2837 - 119 -
direct interest in a matter subject to this chapter may, at any
time, request that a conference be held to discuss and attempt
to resolve by mutual agreement a matter arising under this
chapter. Unless otherwise provided, conferences shall be held
within 90 days after a request is received by the department,
and notice shall be given by the department to all interested
parties. A representative of the department shall attend the
conference and the department may make recommendations. An
agreement reached at a conference shall be consistent with this
chapter and, if approved by the department, it shall be reduced
to writing and shall be effective, unless reviewed and rejected
by the department within ten days after the conference. The
record of an agreement approved by the department shall be kept
on file by the department and copies shall be furnished to the
parties. The scheduling of a conference shall have no effect on
the department's authority to issue orders to compel compliance
with this chapter.
(b) Notification.--When a coal operator is to be notified of
a proceeding under this section, the department simultaneously
shall send a copy of the notice to the collective bargaining
representative of employees of the coal operator.
§ 3252. Public nuisances.
A violation of section 3215.1 (relating to general
restrictions), 3216 (relating to well site restoration), 3217
(relating to protection of fresh groundwater and casing
requirements), 3218 (relating to protection of water supplies),
3219 (relating to use of safety devices) or 3220 (relating to
plugging requirements), or a rule, regulation, order, term or
condition of a permit relating to any of those sections
constitutes a public nuisance.
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§ 3253. Enforcement orders.
(a) General rule.--Except as modified by subsections (b),
(c) and (d), the department may issue orders necessary to aid in
enforcement of this chapter. An order issued under this chapter
shall take effect upon notice, unless the order specifies
otherwise. The power of the department to issue an order under
this chapter is in addition to any other remedy available to the
department under this chapter or under any other law.
(b) Suspension and revocation.--The department may suspend
or revoke a well permit or well registration for any well in
continuing violation of this chapter, the act of June 22, 1937
(P.L.1987, No.394), known as The Clean Streams Law; the act of
July 7, 1980 (P.L.380, No.97), known as the Solid Waste
Management Act; any other statute administered by the
department; or a rule or regulation. A suspension order of the
department shall automatically terminate if the violation upon
which it is based is corrected by the operator to the
satisfaction of the department in order to bring the well into
compliance with this chapter.
(c) Written notice.--Prior to suspension or revocation of a
well permit or registration, the department shall serve written
notice on the well operator or its agent, stating specifically
the statutory provision, rule, regulation or other reason relied
upon, along with factual circumstances surrounding the alleged
violation.
(d) Immediate orders.--An order of the department requiring
immediate cessation of drilling operations shall be effective
only if authorized by the secretary or a designee.
(e) Grievances.--A person aggrieved by a department order
issued under this section shall have the right, within 30 days
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of receipt of the notice, to appeal to the Environmental Hearing
Board.
§ 3254. Restraining violations.
(a) General rule.--In addition to any other remedy provided
in this chapter, the department may institute a suit in equity
in the name of the Commonwealth for an injunction to restrain a
violation of this chapter or rules, regulations, standards or
orders adopted or issued under this chapter and to restrain the
maintenance or threat of a public nuisance. Upon motion of the
Commonwealth, the court shall issue a prohibitory or mandatory
preliminary injunction if it finds that the defendant is
engaging in unlawful conduct, as defined by this chapter, or
conduct causing immediate and irreparable harm to the public.
The Commonwealth shall not be required to furnish bond or other
security in connection with the proceeding. In addition to an
injunction, the court in equity may level civil penalties as
specified in section 3256 (relating to civil penalties).
(b) District attorney.--In addition to other remedies in
this chapter, upon relation of the district attorney of a county
affected, or upon relation of the solicitor of a municipality
affected, an action in equity may be brought in a court of
competent jurisdiction for an injunction to restrain a violation
of this chapter or rules and regulations promulgated under this
chapter or to restrain a public nuisance or detriment to health.
(c) Concurrent penalties.--Penalties and remedies under this
chapter shall be deemed concurrent. Existence or exercise of one
remedy shall not prevent the department from exercising another
remedy at law or in equity.
(d) Jurisdiction.--Actions under this section may be filed
in the appropriate court of common pleas or in Commonwealth
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Court, and those courts are hereby granted jurisdiction to hear
actions under this section.
§ 3254.1. Well control emergency response cost recovery.
A person liable for a well control emergency is responsible
for all response costs incurred by the department to respond to
the well control emergency. In an action before a court of
competent jurisdiction, the department may recover all its
response costs, including the cost of regaining control of the
well, controlling the perimeter of the well site, preparing
water sprays, establishing trenches or dikes to capture runoff
fluids and providing the resources and equipment needs for the
incident.
§ 3255. Penalties.
(a) General violation.--A person violating a provision of
this chapter commits a summary offense and, upon conviction,
shall be sentenced to pay a fine of not more than $300 or to
imprisonment of not more than 90 days, or both. Each day during
which the violation continues is a separate and distinct
offense.
(b) Willful violation.--A person willfully violating a
provision of this chapter or an order of the department issued
under this chapter commits a misdemeanor and, upon conviction,
shall be sentenced to pay a fine of not more than $5,000 or to
imprisonment of not more than one year, or both. Each day during
which the violation continues is a separate and distinct
offense.
(c) Authority.--The department may institute a prosecution
against any person or municipality for a violation of this
chapter.
§ 3256. Civil penalties.
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In addition to other remedies available at law or in equity
for a violation of this chapter, a rule or regulation of the
department or a departmental order, the department, after a
hearing, may assess a civil penalty regardless of whether the
violation was willful. The penalty shall not exceed $50,000 plus
$2,000 for each day during which the violation continues. In
determining the amount, the department shall consider
willfulness of the violation, damage or injury to natural
resources of this Commonwealth or their uses, endangerment of
safety of others, the cost of remedying the harm, savings
resulting to the violator as a result of the violation and any
other relevant factor. When the department proposes to assess a
civil penalty, it shall notify the person of the proposed amount
of the penalty. The person charged with the penalty must, within
30 days of notification, pay the proposed penalty in full or
file an appeal of the assessment with the Environmental Hearing
Board. Failure to comply with the time period under this section
shall result in a waiver of all legal rights to contest the
violation or the amount of the penalty. The civil penalty shall
be payable to the Commonwealth and collectible in any manner
provided at law for collection of debts. If a violator neglects
or refuses to pay the penalty after demand, the amount, together
with interest and costs that may accrue, shall become a lien in
favor of the Commonwealth on the real and personal property of
the violator, but only after the lien has been entered and
docketed of record by the prothonotary of the county where the
property is situated. The department may at any time transmit to
the prothonotaries of the various counties certified copies of
all liens. It shall be the duty of each prothonotary to enter
and docket the liens of record in the prothonotary's office and
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index them as judgments are indexed, without requiring payment
of costs as a condition precedent to entry.
§ 3257. Existing rights and remedies preserved and cumulative
remedies authorized.
Nothing in this chapter estops the Commonwealth or a district
attorney from proceeding in a court of law or in equity to abate
pollution forbidden under this chapter or a nuisance under
existing law. It is hereby declared to be the purpose of this
chapter to provide additional and cumulative remedies to control
activities related to drilling for, or production of, oil and
gas in this Commonwealth, and nothing contained in this chapter
abridges or alters rights of action or remedies existing, or
which existed previously, in equity or under common or statutory
law, criminal or civil. Neither this chapter, the grant of a
permit under this chapter nor an act done by virtue of this
chapter estops the Commonwealth, in exercising rights under
common or decisional law or in equity, from suppressing a
nuisance, abating pollution or enforcing common law or statutory
rights. No court of this Commonwealth with jurisdiction to abate
public or private nuisances shall be deprived of jurisdiction in
an action to abate a private or public nuisance instituted by
any person on grounds that the nuisance constitutes air or water
pollution.
§ 3258. Inspection and production of materials, witnesses,
depositions and rights of entry.
(a) General rule.--The department may make inspections,
conduct tests or sampling or examine books, papers and records
pertinent to a matter under investigation under this chapter to
determine compliance with this chapter. For this purpose, the
duly authorized agents and employees of the department may at
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all reasonable times enter and examine any involved property,
facility, operation or activity.
(a.1) Preoperation inspections.--The operator may not
commence drilling activities until the department has conducted
an inspection of the unconventional well site after the
installation of erosion and sediment control measures. The
department may conduct follow-up inspections of well sites and
related activities to determine compliance with the act.
(b) Access.--The owner, operator or other person in charge
of a property, facility, operation or activity under this
chapter, upon presentation of proper identification and purpose
either for inspection or to remediate or otherwise respond to a
well control emergency, by agents or employees of the
department, shall provide free and unrestricted entry and
access. Upon refusal, the agent or employee may obtain a search
warrant or other suitable order authorizing entry and
inspection, remediation or response. It shall be sufficient to
justify issuance of a search warrant authorizing examination and
inspection if:
(1) there is probable cause to believe that the object
of the investigation is subject to regulation under this
chapter; and
(2) access, examination or inspection is necessary to
enforce the provisions of this chapter.
(c) Witnesses.--In any part of this Commonwealth, the
department may subpoena witnesses, administer oaths, examine
witnesses, take testimony and compel production of books,
records, maps, plats, papers, documents and other writings
pertinent to proceedings or investigations conducted by the
department under this chapter. Upon refusal to obey a subpoena
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by any person and on application of the department, a court may
enforce a subpoena in contempt proceedings. Fees for serving a
subpoena shall be the same as those paid to sheriffs for similar
services.
(d) Deposition.--The department or a party to a proceeding
before the department may cause the deposition of a witness who
resides in or outside of this Commonwealth to be taken in the
manner prescribed by law for taking depositions in civil
actions.
(e) Witness fee.--Witnesses summoned before the department
shall be paid the same fees as are paid to witnesses in courts
of record of general jurisdiction. Witnesses whose depositions
are taken under this chapter, and the officers taking those
depositions, shall be entitled to the same fees as those paid
for like services in court.
(f) Purchasers.--Upon request, a purchaser of oil or gas
shall provide the department information necessary to determine
ownership of facilities from which the purchaser obtained oil or
gas. The information shall be kept confidential for a period of
five years, and the department may utilize it in enforcement
proceedings. The department may request information under this
section only when a well does not comply with section 3211(h)
(relating to well permits).
§ 3259. Unlawful conduct.
It shall be unlawful for any person to:
(1) Drill, alter, operate or utilize an oil or gas well
without a permit or registration from the department as
required by this chapter or in violation of rules or
regulations adopted under this chapter, orders of the
department or a term or condition of a permit issued by the
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department.
(2) Conduct an activity related to drilling for, or
production of, oil and gas:
(i) contrary to this chapter, rules or regulations
adopted under this chapter, an order of the department or
a term or condition of a permit issued by the department;
or
(ii) in any manner as to create a public nuisance or
adversely affect public health, safety, welfare or the
environment.
(3) Refuse, obstruct, delay or threaten an agent or
employee of the department acting in the course of lawful
performance of a duty under this chapter, including, but not
limited to, entry and inspection.
(4) Attempt to obtain a permit or identify a well as an
orphan well by misrepresentation or failure to disclose all
relevant facts.
(5) Cause abandonment of a well by removal of casing or
equipment necessary for production without plugging the well
in the manner prescribed under section 3220 (relating to
plugging requirements), except that the owner or operator of
a well may temporarily remove casing or equipment necessary
for production, but only if it is part of the normal course
of production activities.
§ 3260. Collection of fines and penalties.
Fines and penalties shall be collectible in a manner provided
by law for collection of debts. If a person liable to pay a
penalty neglects or refuses to pay after demand, the amount,
together with interest and costs that may accrue, shall be a
judgment in favor of the Commonwealth on the person's property,
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but only after the judgment has been entered and docketed of
record by the prothonotary of the county where the property is
situated. The department may transmit to prothonotaries of the
various counties certified copies of all judgments, and it shall
be the duty of each prothonotary to enter and docket them of
record in the prothonotary's office and index them as judgments
are indexed, without requiring payment of costs as a condition
precedent to entry.
§ 3261. Third party liability.
If a person other than a well operator renders a service or
product to a well or well site, that person is jointly and
severally liable with the well owner or operator for violations
of this chapter arising out of and caused by the person's
actions at the well or well site.
§ 3262. Inspection reports.
The department shall post inspection reports on its publicly
accessible Internet website. The inspection reports shall
include:
(1) The nature and description of violations.
(2) The operator's written response to the violation, if
available.
(3) The status of the violation.
(4) The remedial steps taken by the operator or the
department to address the violation.
SUBCHAPTER F
MISCELLANEOUS PROVISIONS
Sec.
3271. Well plugging funds.
3272. Local ordinances.
3273. Effect on department authority.
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3273.1. Relationship to solid waste and surface mining.
3274. Regulatory authority.
§ 3271. Well plugging funds.
(a) Appropriation.--Fines, civil penalties and permit and
registration fees collected under this chapter are appropriated
to the department to carry out the purposes of this chapter.
(b) Surcharge.--To aid in indemnifying the Commonwealth for
the cost of plugging abandoned wells, a $50 surcharge is added
to the permit fee established by the department under section
3211 (relating to well permits) for new wells. Money collected
as a result of the surcharge shall be paid into a restricted
revenue account in the State Treasury to be known as the
Abandoned Well Plugging Fund and expended by the department to
plug abandoned wells threatening the health and safety of
persons or property or pollution of waters of this Commonwealth.
(c) Orphan Well Plugging Fund.--The following shall apply:
(1) A restricted revenue account to be known as the
Orphan Well Plugging Fund is created. A $100 surcharge for
wells to be drilled for oil production and a $200 surcharge
for wells to be drilled for gas production are added to the
permit fee established by the department under section 3211
for new wells. The surcharges shall be placed in the Orphan
Well Plugging Fund and expended by the department to plug
orphan wells. If an operator rehabilitates a well abandoned
by another operator or an orphan well, the permit fee and the
surcharge for the well shall be waived.
(2) The department shall study its experience in
implementing this section and shall report its findings to
the Governor and the General Assembly by August 1, 1992. The
report shall contain information relating to the balance of
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the fund, number of wells plugged, number of identified wells
eligible for plugging and recommendations as to alternative
funding mechanisms.
(3) Expenditures by the department for plugging orphan
wells are limited to fees collected under this chapter. No
money from the General Fund shall be expended for this
purpose.
§ 3272. Local ordinances.
Except with respect to ordinances adopted under the act of
July 31, 1968 (P.L.805, No.247), known as the Pennsylvania
Municipalities Planning Code, and the act of October 4, 1978
(P.L.851, No.166), known as the Flood Plain Management Act, all
local ordinances and enactments purporting to regulate oil and
gas well operations regulated by this chapter are superseded by
this chapter. No ordinances or enactments adopted under the
Pennsylvania Municipalities Planning Code or the Flood Plain
Management Act may contain provisions which impose conditions,
requirements or limitations that are inconsistent with this
chapter. Except as otherwise provided in 27 Pa.C.S. Ch. 33
(relating to oil and gas), the Commonwealth, by this chapter,
preempts and supersedes the regulation of oil wells and gas
wells.
§ 3273. Effect on department authority.
This chapter does not affect, limit or impair any right or
authority of the department under the act of June 22, 1937
(P.L.1987, No.394), known as The Clean Streams Law; the act of
January 8, 1960 (1959 P.L.2119, No.787), known as the Air
Pollution Control Act; the act of November 26, 1978 (P.L.1375,
No.325), known as the Dam Safety and Encroachments Act; or the
act of July 7, 1980 (P.L.380, No.97), known as the Solid Waste
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Management Act.
§ 3273.1. Relationship to solid waste and surface mining.
(a) General rule.--The obligation to obtain a permit and
post a bond under Articles III and V of the act of July 7, 1980
(P.L.380, No.97), known as the Solid Waste Management Act, and
to provide public notice under section 1905-A(b)(1)(v) of the
act of April 9, 1929 (P.L.177, No.175), known as The
Administrative Code of 1929, for any pit, impoundment, method or
facility employed for the disposal, processing or storage of
residual wastes generated by the drilling of an oil or gas well
or from the production of wells which is located on the well
site, shall be considered to have been satisfied if the owner or
operator of the well meets the following conditions:
(1) the well is permitted under the requirements of
section 3211 (relating to well permits) or registered under
section 3213 (relating to well registration and
identification);
(2) the owner or operator has satisfied the financial
security requirements of section 3215 (relating to well
location restrictions) by obtaining a surety or collateral
bond for the well and well site; and
(3) the owner or operator maintains compliance with this
chapter and applicable regulations of the Environmental
Quality Board.
(b) Noncoal surface mining.--Obligations under the act of
December 19, 1984 (P.L.1093, No.219), known as the Noncoal
Surface Mining Conservation and Reclamation Act, or a rule or
regulation promulgated thereunder, for any borrow area where
minerals are extracted solely for the purpose of oil and gas
well development, including access road construction, shall be
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considered to have been satisfied if the owner or operator of
the well meets the conditions imposed under subsection (a)(1)
and (2) and maintains compliance with this chapter and
applicable regulations of the Environmental Quality Board.
(c) Solid Waste Management Act.--This section does not
diminish or otherwise affect duties or obligations of an owner
or operator under the Solid Waste Management Act. This section
does not apply to waste classified as hazardous waste under the
Solid Waste Management Act or the Resource Conservation and
Recovery Act of 1976 (Public Law 94-580, 90 Stat. 2795, 42
U.S.C. § 6901 et seq.).
(d) Definition.--As used in this section and sections 3216
(relating to well site restoration) and 3225 (relating to
bonding), the term "well site" means areas occupied by all
equipment or facilities necessary for or incidental to drilling,
production or plugging a well.
§ 3274. Regulatory authority.
(a) Existing regulations.--The rulemaking for 25 Pa. Code
Ch. 78 (relating to oil and gas wells) promulgated at 41 Pa.B.
805 (February 5, 2011), shall apply only to unconventional gas
wells.
(b) New regulations.--The Environmental Quality Board shall
adopt regulations to implement this chapter.
CHAPTER 33
LOCAL ORDINANCES RELATING TO
OIL AND GAS OPERATIONS
Sec.
3301. Scope of chapter.
3302. Definitions.
3303. Local ordinances.
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3304. Review by Attorney General.
3305. Civil actions.
3306. Commonwealth Court masters.
3307. Attorney fees and costs.
3308. Sanction.
3309. Provisions of local ordinances.
3310. Applicability.
§ 3301. Scope of chapter.
The purposes of this chapter are to:
(1) Allow municipalities to efficiently regulate oil and
gas operations consistent with their authority under the act
of July 31, 1968 (P.L.805, No.247), known as the Pennsylvania
Municipalities Planning Code.
(2) Foster the expeditious and efficient handling of
municipal oil and gas procedures.
(3) Clarify the role of all Federal and State agencies
and municipal governments with regard to oil and gas
development activities.
§ 3302. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Building." An occupied structure with walls and roof within
which individuals live or customarily work.
"Environment acts." All statutes enacted by the Commonwealth
relating to the protection of the environment or the protection
of public health, safety and welfare, that are administered and
enforced by the department or by another Commonwealth agency,
including an independent agency, and all Federal statutes
relating to the protection of the environment, to the extent
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those statutes regulate oil and gas operations.
"Local government." A county, city, borough, incorporated
town or township of this Commonwealth.
"Local ordinance." An ordinance adopted by a local
government that regulates oil and gas operations.
"MPC." The act of July 31, 1968 (P.L.805, No.247), known as
the Pennsylvania Municipalities Planning Code.
"Oil and gas operations." The term includes the following:
(1) well location assessment, including seismic
operations, well site preparation, construction, drilling,
hydraulic fracturing and site restoration associated with an
oil or gas well of any depth;
(2) water and other fluid storage or impoundment areas
used exclusively for oil and gas operations;
(3) construction, installation, use, maintenance and
repair of:
(i) oil and gas pipelines;
(ii) natural gas compressor stations; and
(iii) natural gas processing plants or facilities
performing equivalent functions; and
(4) construction, installation, use, maintenance and
repair of all equipment directly associated with activities
specified in paragraphs (1), (2) and (3), to the extent that:
(i) the equipment is necessarily located at or
immediately adjacent to a well site, impoundment area,
oil and gas pipeline, natural gas compressor station or
natural gas processing plant; and
(ii) the activities are authorized and permitted
under the authority of a Federal or Commonwealth agency.
"Permitted use." A use which, upon submission of notice to
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and receipt of a permit issued by a zoning officer or equivalent
official, is authorized to be conducted without restrictions
other than those set forth in section 3309 (relating to
provisions of local ordinances).
§ 3303. Local ordinances.
(a) General rule.--A local ordinance may only be enacted
pursuant to the MPC, the act of March 31, 1927 (P.L.98, No.69),
referred to as the Second Class City Zoning Law, or the act of
October 4, 1978 (P.L.851, No.166), known as the Flood Plain
Management Act, as applicable, and shall provide for the
reasonable development of minerals within the local government
in accordance with the provisions of section 603(i) of the MPC
and this chapter.
(b) Limitation.--Except as provided in this chapter, a local
ordinance shall not conflict with and shall not regulate oil and
gas operations covered by the environment acts, except to the
extent that the environment acts provide the authority.
(c) Construction.--Nothing in this chapter shall be
construed to impair or infringe on the preemption provisions of
section 3272 (relating to local ordinances).
§ 3304. Review by Attorney General.
(a) Request of owner or operator.--An owner or operator of
an oil and gas operation, or any person having the right to
royalty payments under a lease of oil or gas mineral rights, may
request the Attorney General to review a local ordinance to
determine whether it allows for the reasonable development of
oil and gas resources in accordance with the provisions
specifically addressed in this chapter, the MPC and judicial
decisions of the Commonwealth.
(b) Preenactment review.--A local government may, prior to
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the enactment of a local ordinance, request the Attorney General
to review the ordinance to determine whether it allows for the
reasonable development of oil and gas resources in accordance
with the provisions of Chapter 32 (relating to development), the
MPC and judicial decisions of the Commonwealth.
(c) Time period for review.--Within 120 days of receiving a
request under subsection (a) or (b), the Attorney General shall
advise in writing the person that made the request whether or
not the Attorney General determines that the local ordinance
provides for the reasonable development of oil and gas reserves
and provide a copy of the written determination to the affected
local government.
§ 3305. Civil actions.
(a) Attorney General.--The Attorney General may bring an
action against a local government in Commonwealth Court to
invalidate or enjoin the enforcement of a local ordinance that
does not allow for the reasonable development of oil and gas
resources.
(b) Private right of action.--
(1) Notwithstanding any provision of 42 Pa.C.S. Ch. 85
Subch. C (relating to actions against local parties), any
person who is aggrieved by the enactment or enforcement of a
local ordinance that does not allow for the reasonable
development of oil and gas resources in accordance with the
provisions of section 3272 (relating to local ordinances) may
bring an action in Commonwealth Court to invalidate the
ordinance or enjoin its enforcement.
(2) An aggrieved person may proceed without first
obtaining review of the ordinance by the Attorney General or
may proceed after receiving such review if the Attorney
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General determines that the ordinance fails to comply with
this chapter but declines to bring an action under subsection
(a).
(3) In an action brought relating to the enactment or
enforcement of a local ordinance, the determination of the
Attorney General made under section 3304 (relating to review
by Attorney General) shall become part of the record before
the court.
§ 3306. Commonwealth Court masters.
(a) General rule.--The Commonwealth Court may promulgate
rules for the selection and appointment of masters on a full-
time or part-time basis to oversee actions brought under section
3305 (relating to civil actions). A master must be a member of
the bar of this Commonwealth. The number and compensation of
masters shall be fixed by the Commonwealth Court, and their
compensation shall be paid by the Commonwealth.
(b) Procedure.--
(1) The Commonwealth Court may direct that a hearing in
an action brought under section 3305 be conducted in the
first instance by the master in the manner provided for in
this section.
(2) Upon the conclusion of a hearing before a master,
the master shall transmit written findings and
recommendations for disposition to the president judge.
Prompt written notice and copies of the findings and
recommendations shall be given to the parties to the
proceeding.
(3) The findings and recommendations of the master shall
become the findings and order of the Commonwealth Court upon
written confirmation by the president judge. A rehearing may
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be ordered by the president judge at any time upon cause
shown.
§ 3307. Attorney fees and costs.
In an action brought under section 3305 (relating to civil
actions), the court may do any of the following:
(1) If the court determines that the local government
enacted or enforced a local ordinance with willful or
reckless disregard for the limitation of authority
established under State law, it may order the local
government to pay the plaintiff reasonable attorney fees and
other reasonable costs incurred by the plaintiff in
connection with the action.
(2) If the court determines that the action brought by
the plaintiff was frivolous or was brought without
substantial justification in claiming that the local
ordinance in question was contrary to the requirements of
this chapter or Chapter 32 (relating to development), it may
order the plaintiff to pay the local government reasonable
attorney fees and other reasonable costs incurred by the
local government in defending the action.
§ 3308. Sanction.
If the Attorney General, the Commonwealth Court or the
Supreme Court determines that a local ordinance fails to provide
for the reasonable development of oil and gas resources, the
local government enacting or enforcing the local ordinance shall
be immediately ineligible to receive any funds collected under
Chapter 23 (relating to drilling impact fee). The local
government shall remain ineligible to receive funds under
Chapter 23 until the local government amends or repeals its
local ordinance in accordance with this chapter.
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§ 3309. Provisions of local ordinances.
In order to allow for the reasonable development of oil and
gas resources, a local ordinance must, in addition to complying
with this chapter, Chapter 32 (relating to development), the MPC
and judicial decisions of the Commonwealth:
(1) Allow well and pipeline location assessment
operations, including seismic operations and related
activities conducted in accordance with all applicable
Federal and State laws and regulations relating to the
storage and use of explosives throughout every local
government.
(2) Impose conditions, requirements or limitations on
oil and gas operations that are no more stringent than
similar conditions, requirements or limitations imposed on
construction activities for other land development within the
zoning district where the oil and gas operations are
situated.
(3) Impose conditions, requirements or limitations on
the height of permanent structures, setbacks from property
lines, screening and fencing, lighting and noise relating to
oil and gas operations that are no more stringent than
similar conditions, requirements or limitations imposed on
industrial uses or what is allowed within the particular
zoning district within the local government where the oil and
gas operations are situated or stipulated in or set forth in
State statute or regulations pertaining to oil and gas
operations.
(4) Have a review period for permitted uses that does
not exceed 30 days for complete submissions or that exceeds
120 days for conditional uses.
20110HB1950PN2837 - 140 -
(5) Authorize oil and gas operations, other than
activities in or at impoundment areas, compressor stations
and processing plants, as a permitted use in all zoning
districts.
(5.1) Notwithstanding section 3215 (relating to well
location restrictions) the oil and gas operations under
paragraph (5) may be prohibited, or permitted only as a
conditional use within a residential district where a well
site cannot be placed so that the wellhead is at least 500
feet from any existing building. In a residential district,
all of the following apply:
(i) A well site may not be located so that the outer
edge of the well pad is closer than 300 feet from an
existing building.
(ii) Except as set forth in paragraph (5) and in
this paragraph, oil and gas operations, other than the
placement, use and repair of oil and gas pipelines, water
pipelines, access roads or security facilities, may not
take place within 300 feet of an existing building.
(6) Authorize impoundment areas used for oil and gas
operations as a permitted use in all zoning districts,
provided that the edge of any impoundment area shall not be
located closer than 300 feet from an existing building.
(7) Authorize natural gas compressor stations as a
permitted use in agriculture and industrial zoning districts
and as a conditional use in all other zoning districts, if
the natural gas compressor building meets the following
conditions:
(i) is located 750 feet or more from the nearest
existing building or 200 feet from the nearest lot line,
20110HB1950PN2837 - 141 -
whichever is greater, unless waived by the owner of the
building or adjoining lot; and
(ii) does not exceed a noise standard of 60dbA at
the nearest property line or the applicable standard
imposed by Federal law, whichever is lesser.
(8) Authorize natural gas processing plants as a
permitted use in an industrial zoning district and as
conditional uses in agricultural zoning districts, if the
natural gas processing plant buildings meet the following
conditions:
(i) Unless there is a waiver by the owner of the
building or adjoining lot, the natural gas processing
plant building is located at the greater of:
(A) at least 750 feet from the nearest existing
building; or
(B) at least 200 feet from the nearest lot line.
(ii) The noise level of the natural gas processing
plant at the property line does not exceed the lesser of:
(A) a noise standard of 60dbA; or
(B) the applicable standard imposed by Federal
law.
(9) Impose restrictions on vehicular access routes for
overweight vehicles only as authorized under 75 Pa.C.S.
(relating to vehicles) or the MPC.
(10) Does not attempt to impose limits or conditions on
subterranean operations or hours of operation.
§ 3310. Applicability.
This chapter shall apply to the enforcement of local
ordinances existing on the date of this section and to the
enactment or enforcement of local ordinances enacted on or after
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the effective date of this chapter.
Section 3. The addition of 27 Pa.C.S. Ch. 33 Subch. B is a
continuation of the former act of December 15, 1955 (P.L.865,
No.256), entitled "An act requiring rents and royalties from oil
and gas leases of Commonwealth land to be placed in a special
fund to be used for conservation, recreation, dams and flood
control; authorizing the Secretary of Forests and Waters to
determine the need for and location of such projects and to
acquire the necessary land." The following apply:
(1) Except as otherwise provided in 27 Pa.C.S. Ch. 33
Subch. B, all activities initiated under the former act of
December 15, 1955 (P.L.865, No.256) shall continue and remain
in full force and effect and may be completed under 27
Pa.C.S. Ch. 33 Subch. B. Resolutions, orders, regulations,
rules and decisions which were made under the former act of
December 15, 1955 (P.L.865, No.256) and which are in effect
on the effective date of this section shall remain in full
force and effect until revoked, vacated or modified under 27
Pa.C.S. Ch. 33 Subch. B. Contracts, obligations and
agreements entered into under the former act of December 15,
1955 (P.L.865, No.256) are not affected nor impaired by the
repeal of the former act of December 15, 1955 (P.L.865,
No.256).
(2) Except as set forth in paragraph (3), any difference
in language between 27 Pa.C.S. Ch. 33 Subch. B and the former
act of December 15, 1955 (P.L.865, No.256) is intended only
to conform to the style of the Pennsylvania Consolidated
Statutes and is not intended to change or affect the
legislative intent, judicial construction or administrative
interpretation and implementation of the former act of
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December 15, 1955 (P.L.865, No.256).
(3) Paragraph (2) does not apply to 27 Pa.C.S. §§ 3301,
3302(b)(3) and 3305.
Section 4. Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate the addition of 27
Pa.C.S. Ch. 33.
(2) The act of December 15, 1955 (P.L.865, No.256),
entitled "An act requiring rents and royalties from oil and
gas leases of Commonwealth land to be placed in a special
fund to be used for conservation, recreation, dams, and flood
control; authorizing the Secretary of Forests and Waters to
determine the need for and location of such projects and to
acquire the necessary land," is repealed.
(3) The General Assembly declares that the repeal under
paragraph (4) is necessary to effectuate the addition of 58
Pa.C.S. Ch. 32.
(4) The act of December 19, 1984 (P.L.1140, No.223),
known as the Oil and Gas Act, is repealed.
Section 5. The addition of 58 Pa.C.S. Ch. 32 is a
continuation of the act of December 19, 1984 (P.L.1140, No.223),
known as the Oil and Gas Act. The following apply:
(1) Except as otherwise provided in 58 Pa.C.S. Ch. 32,
all activities initiated under the Oil and Gas Act shall
continue and remain in full force and effect and may be
completed under 58 Pa.C.S. Ch. 32. Orders, regulations, rules
and decisions which were made under the Oil and Gas Act and
which are in effect on the effective date of section 2(2) of
this act shall remain in full force and effect until revoked,
vacated or modified under 58 Pa.C.S. Ch. 32. Contracts,
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obligations and collective bargaining agreements entered into
under the Oil and Gas Act are not affected nor impaired by
the repeal of the Oil and Gas Act.
(2) Except as set forth in paragraph (3), any difference
in language between 58 Pa.C.S. Ch. 32 and the Oil and Gas Act
is intended only to conform to the style of the Pennsylvania
Consolidated Statutes and is not intended to change or affect
the legislative intent, judicial construction or
administration and implementation of the Oil and Gas Act.
(3) Paragraph (2) does not apply to the addition of 58
Pa.C.S. §§ 3203, 3211, 3212.1, 3215, 3215.1, 3216, 3218,
3219.1, 3222, 3225, 3227, 3252, 3253, 3254.1, 3256, 3258,
3262, 3272 and 3274.
(4) It is not the intent of the General Assembly to
change, repeal or otherwise affect any of the provisions of
the act of December 18, 1984 (P.L. 1069, No. 214), known as
the Coal and Gas Resource Coordination Act, or to change,
repeal or otherwise affect any of the provisions of the act
of January 26, 2011 (P.L.7, No.2), entitled "An act amending
the act of December 18, 1984 (P.L.1069, No.214), entitled 'An
act requiring coordination of coal mine and gas well
operators; authorizing Department of Environmental Resources
enforcement powers; and providing penalties,' further
providing for definitions, for permits, for permit
application, for minimum distance between gas wells, for well
class designation and for coordination of gas well drilling
through active coal mines; providing for a pillar support
study; and further providing for plugging gas wells
penetrating workable coal seams, for penalties and for
validity of other laws," which amended the Coal and Gas
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Resource Coordination Act.
Section 5.1. The addition of 58 Pa.C.S. § 3215(g)(2) shall
expire three years after the effective date of this act.
Section 6. This act shall take effect in 60 days.
Section 1. Title 58 of the Pennsylvania Consolidated <--
Statutes is amended by adding parts to read:
PART I
(RESERVED)
PART II
OVERSIGHT AND DEVELOPMENT
Chapter
23. Drilling Impact Fee
25. Natural Gas Energy Development Program
31. (Reserved)
32. Regulation
33. Local Ordinances Relating to Oil and Gas Operations
CHAPTER 23
DRILLING IMPACT FEE
Sec.
2301. Definitions.
2302. Shale Impact Fee.
2303. Administration.
2304. Well information.
2305. Duties of department.
2306. (Reserved).
2307. Commission.
2308. Enforcement.
2309. Enforcement orders.
2310. Administrative penalties.
2311. (Reserved).
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2312. Recordkeeping.
2313. Examinations.
2314. Distribution of fee.
2315. Statewide initiatives.
2316. Diverse business participation.
2317. Applicability.
2318. Expiration.
§ 2301. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Account." The Shale Impact Account.
"Average annual price of natural gas." The arithmetic mean
of the New York Mercantile Exchange (NYMEX) Henry Hub settled
price on the last trading day of each month of a calendar year
as reported by the Wall Street Journal for the 12-month period
ending December 31.
"Commission." The Pennsylvania Public Utility Commission.
"Department." The Department of Environmental Protection of
the Commonwealth.
"Eligible applicant." A county, municipality, council of
governments, watershed organization, institution of higher
education, nonprofit organization or an authorized organization
as defined in 27 Pa.C.S. § 6103 (relating to definitions).
"Fee." The Shale Impact Fee imposed under section 2302
(relating to Shale Impact Fee).
"Highway mileage." The number of miles of public roads and
streets most recently certified by the Department of
Transportation as eligible for distribution of liquid fuels
funds under the act of June 1, 1956 (1955 P.L.1944, No.655),
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referred to as the Liquid Fuels Tax Municipal Allocation Law.
"Municipality." A borough, city, town or township.
"Natural gas." A fossil fuel consisting of a mixture of
hydrocarbon gases, primarily methane, and possibly including
ethane, propane, butane, pentane, carbon dioxide, oxygen,
nitrogen and hydrogen sulfide and other gas species. The term
includes natural gas from oil fields known as associated gas or
casing head gas, natural gas fields known as nonassociated gas,
coal beds, shale beds and other formations. The term does not
include coal bed methane.
"Natural gas liquids." Hydrocarbons in natural gas which are
separated from the gas as liquids through the process of
absorption, condensation, adsorption or other methods in gas
processing of cycling plants.
"Number of producing unconventional wells." The most recent
numerical count of producing unconventional wells on the
inventory maintained and provided to the commission by the
department as of the last day of each month.
"Price adjustment factor." One of a range of numerical
values used to compute the adjusted fee under section 2302
(relating to Shale Impact Fee). The price adjustment factor
shall be determined as follows:
(1) If the average annual price of natural gas is less
than $5.01, the price adjustment factor shall be 1.0.
(2) If the average annual price of natural gas is $5.01
to $6.00, the price adjustment factor shall be 1.25.
(3) If the average annual price of natural gas is $6.01
to $7.00, the price adjustment factor shall be 1.75.
(4) If the average annual price of natural gas is $7.01
to $8.00, the price adjustment factor shall be 2.25.
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(5) If the average annual price of natural gas is
greater than $8.00, the price adjustment factor shall be
2.75.
"Producer." A person or its subsidiary, affiliate or holding
company that holds a permit or other authorization to engage in
the business of severing natural gas for sale, profit or
commercial use from an unconventional well in this Commonwealth.
The term shall not include a producer that severs natural gas
from a site used to store natural gas that did not originate
from the site.
"Stripper well." A gas well incapable of producing more than
90,000 cubic feet of gas per day during a calendar month,
including production from all zones and multilateral well bores
at a single well, without regard to whether the production is
separately metered.
"Unconventional formation." A geological shale formation
existing below the base of the Elk Sandstone or its geologic
equivalent stratigraphic interval where natural 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.
"Unconventional well." A bore hole drilled or being drilled
for the purpose of or to be used for the production of natural
gas from an unconventional formation.
"Vertical gas well." An unconventional well which begins as
a vertical linear bore and is not intentionally deviated from
the vertical.
§ 2302. Shale Impact Fee.
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(a) Imposition.--Beginning January 1, 2011, there shall be
imposed a Shale Impact Fee on each unconventional well producing
natural gas in this Commonwealth. The fee under this section
shall not apply to a stripper well.
(b) Components.--Prior to the adjustment under subsection
(c), the fee shall consist of an annual base fee for each
unconventional well as follows:
(1) For the first year of production, the fee shall be
$50,000.
(2) For the second year of production, the fee shall be
$40,000.
(3) For the third year of production, the fee shall be
$30,000.
(4) For the fourth year of production through the tenth
year of production, the fee shall be $20,000.
(5) For the eleventh year of production through the
twentieth year, the fee shall be $10,000.
(c) Annual adjustment.--
(1) The fee shall be adjusted by multiplying the base
fee amount times the price adjustment factor rounded to the
nearest $100.
(2) The fee for a vertical gas well shall not be subject
to adjustment under paragraph (1) and shall be computed as
follows:
(i) The fee for a vertical gas well capable of
producing more than 180,000 cubic feet of gas per day
during a calendar month shall be one-half of the amounts
under subsection (b).
(ii) The fee for a vertical gas well capable of
producing more than 90,000 but less than 180,000 cubic
20110HB1950PN2837 - 150 -
feet of gas per day during a calendar month shall be one-
fourth of the amounts under subsection (b).
(d) Restimulated wells.--
(1) A well which after restimulation qualifies as a
stripper well shall not be subject to this subsection.
(2) The year in which the restimulation occurs shall be
considered the first year of production for purposes of
imposing the fee under subsection (b) if:
(i) a producer restimulates a previously stimulated
unconventional well following the tenth year of
production by:
(A) hydraulic fracture treatments;
(B) using additional multilateral well bores;
(C) drilling deeper into an unconventional
formation; or
(D) other techniques to expose more of the
formation of the well bore; and
(ii) the restimulation results in a substantial
increase in production.
(3) As used in this subsection, the term "substantial
increase in production" means an increase in production
amounting to more than 90,000 cubic feet of gas per day
during a calendar month.
(d.1) Reopened wells.--If a producer reopens a previously
capped well or unconventional well and places the well into
production, all of the following apply:
(1) The years during which the well or unconventional
well was capped shall not be considered as a year of
production.
(2) The fee shall be reinstated based upon the actual
20110HB1950PN2837 - 151 -
year of production under subsections (b) and (d).
(e) Cessation.--Payments of the annual fee shall cease upon
certification to the department by the operator that the
unconventional well has ceased production and has been plugged
according to the regulations established by the department.
§ 2303. Administration.
(a) Commission.--On or before January 31 of each year, the
commission shall calculate and determine the average annual
price of natural gas for the previous calendar year.
(b) Notice.--Notice of the average annual price and the
annual fee schedule per well shall be provided to producers
operating unconventional wells and shall be published on the
commission's Internet website.
(c) Method.--If publication of the New York Mercantile
Exchange (NYMEX) Henry Hub settled price is discontinued, the
average annual price of natural gas then in effect shall not be
adjusted until a comparable method to determine the average
annual price of natural gas is adopted by commission rule. If
the base data of the NYMEX Henry Hub settled price is
substantially revised, the commission shall make appropriate
changes to ensure that the average annual price of natural gas
is reasonably consistent with the result that would have been
attained had the substantial revision not been made.
(d) Report.--By March 1, 2012, and each March 1 thereafter,
each producer shall submit a production report to the commission
on a form prescribed by the commission for the previous calendar
year. The report shall include the following:
(1) Annual units of production severed by the producer
for each unconventional well for the reporting period.
(2) The number of producing unconventional wells of a
20110HB1950PN2837 - 152 -
producer in each county and municipality.
(e) Fee for 2011.--For calendar year 2011, the fee due shall
be paid as follows:
(1) Fifty percent of the fee shall be paid by March 1,
2012.
(2) Fifty percent of the fee shall be paid by June 1,
2012.
(f) Fee due date.--Except as provided under subsection (e),
the fee shall be due on March 1 and each year thereafter. The
fee shall become delinquent if not remitted to the commission by
the due date.
(g) Costs of commission.--
(1) Within 30 days of the effective date of this
subsection, and each year thereafter, the commission may
impose an annual fee not to exceed $100 per well on each
reporting producer to pay for the actual costs of the
commission to administer and enforce this chapter and Chapter
25 (relating to Natural Gas Energy Development Program).
(2) By March 31, 2012, and each year thereafter, the
commission shall determine for the preceding calendar year
the amount of its actual expenditures directly attributable
to the administration and enforcement of this chapter and
Chapter 25. The commission shall subtract the amount of fees
collected under paragraph (1) in that calendar year and
assess any remaining balance on all producers subject to the
impact fee in proportion to the number of wells owned by each
producer.
(3) Each producer shall be assessed for and shall pay to
the commission that proportion of the amount determined under
paragraph (2) and allocated to the producer for that year.
20110HB1950PN2837 - 153 -
§ 2304. Well information.
(a) List.--Within 30 days of the effective date of this
section, the department shall provide the commission with a list
of all unconventional wells that have received a drilling permit
from the department. The department shall update the list and
provide it to the commission on a monthly basis.
(b) Updates.--A producer subject to the fee shall notify the
commission of the following within 30 days after a calendar
month in which the change occurs:
(1) The initiation of production at an unconventional
well.
(2) The removal of an unconventional well from
production.
§ 2305. Duties of department.
(a) Confirmation of payment.--Prior to issuing a permit to
drill an unconventional well in this Commonwealth, the
department shall determine whether the producer has paid all
fees owed for an existing well under section 2302 (relating to
Shale Impact Fee).
(b) Prohibition.--The department shall not issue a permit to
drill an unconventional well until all fees owed under section
2302 that are not in dispute have been paid to the commission.
(c) Payment of fees.--The commission shall provide the
department with information necessary to determine that the
producer has paid all fees owed for an existing well under
section 2302.
§ 2306. (Reserved).
§ 2307. Commission.
(a) Powers.--The commission shall have the authority to make
all inquiries and determinations necessary to calculate and
20110HB1950PN2837 - 154 -
collect the fee imposed under this chapter, including, if
applicable, interest and penalties.
(b) Notice.--If the commission determines that the fee has
not been paid in full, it may issue a notice of the amount due
and demand for payment and shall set forth the basis for the
determination.
(c) Address.--Notice of failure to pay the correct fee shall
be sent to the producer via certified mail.
(d) Time period.--Except as set forth in subsection (e), the
commission may challenge the amount of a fee paid within three
years after the date the report under section 2303(d) (relating
to administration) is filed.
(e) Intent.--If no report is filed or a producer files a
false or fraudulent report with the intent to evade the fee, an
assessment of the amount owed may be made at any time.
§ 2308. Enforcement.
(a) Assessment.--The commission shall assess interest on any
delinquent fee at the rate determined under section 2307(a)
(relating to commission).
(b) Penalty.--In addition to the assessed interest under
subsection (a), if a producer fails to make timely payment of
the fee, there shall be added to the amount of the fee due a
penalty of 5% of the amount of the fee if failure to file a
timely payment is for not more than one month, with an
additional 5% penalty for each additional month, or fraction of
a month, during which the failure continues, not to exceed 25%
in the aggregate.
(c) Timely payment.--If the commission determines that a
producer has not made a timely payment of the fee, the
commission shall send a written notice of the amount of the
20110HB1950PN2837 - 155 -
deficiency to the producer within 30 days from the date of
determining the deficiency. The commission shall notify the
department of a producer that has failed to pay the fee for any
producing well under section 2302 (relating to Shale Impact
Fee). If the producer does not have a pending appeal related to
payment of the fee in process, the department shall suspend the
permit for that well until the fee has been paid.
(d) Remedies.--The remedies provided under this chapter are
in addition to any other remedies provided by law or in equity.
(e) Lien.--Fines, fees, interest and penalties shall be
collectible as authorized by law for the collection of debts. If
the producer liable to pay an amount neglects or refuses to pay
the amount after demand, the amount, together with costs, shall
be a judgment in favor of the Commonwealth upon the property of
the producer, but only after the judgment has been entered,
docketed and recorded by the prothonotary of the county where
the property is situated. The Commonwealth shall transmit to the
prothonotaries of the respective counties certified copies of
the judgments. Each prothonotary shall enter, docket and record
the record in the prothonotary's office and index each judgment,
without requiring the payment of costs as a condition precedent
to the entry of the judgment.
§ 2309. Enforcement orders.
(a) Issuance.--The commission may issue an order as
necessary to enforce this chapter and Chapter 25 (relating to
natural gas energy development program). An order issued under
this section shall take effect upon notice, unless the order
specifies otherwise. An appeal of the order must be in
accordance with 66 Pa.C.S. Ch. 3 Subch. B (relating to
investigations and hearings).
20110HB1950PN2837 - 156 -
(b) Compliance.--A producer has the duty to comply with an
order issued under subsection (a). If a producer fails to
proceed diligently or to comply with an order within the time
required, the producer shall be guilty of contempt and shall be
punished by the court in an appropriate manner. The commission
shall apply to the Commonwealth Court, which shall have
jurisdiction over matters relating to contempt.
§ 2310. Administrative penalties.
(a) Civil penalties.--In addition to any other proceeding
authorized by law, the commission may assess a civil penalty not
to exceed $2,500 per violation upon a producer for the violation
of this chapter. In determining the amount of the penalty, the
commission shall consider the willfulness of the violation and
other relevant factors.
(b) Separate offense.--Each violation for each separate day
and each violation of this chapter shall constitute a separate
offense.
(c) Limitation of actions.--Notwithstanding any limitation
in 42 Pa.C.S. Ch. 55 Subch. B (relating to civil actions and
proceedings) an action under this section must be brought within
three years of the violation.
(d) Procedure.--A penalty under this chapter is subject to
66 Pa.C.S. Ch. 3 Subch. B (relating to investigations and
hearings).
§ 2311. (Reserved).
§ 2312. Recordkeeping.
A producer liable for the fee under this chapter or the
assessment under Chapter 25 (relating to natural gas energy
development program) shall keep records, make reports and comply
with regulations of the commission. The commission may require a
20110HB1950PN2837 - 157 -
producer to make reports, render statements or keep records as
the commission deems sufficient to determine liability for the
fee.
§ 2313. Examinations.
(a) Access.--The commission or its authorized agents or
representatives shall:
(1) Have access to the relevant books, papers and
records of any producer in order to verify the accuracy and
completeness of a report filed or fee paid under this chapter
or the assessment under Chapter 25 (relating to natural gas
energy development program).
(2) Require the preservation of all relevant books,
papers and records for an appropriate period not to exceed
three years from the end of the calendar year to which the
records relate.
(3) Examine any employee of a producer under oath
concerning the severing of natural gas subject to a fee or
any matter relating to the enforcement of this chapter.
(4) Compel the production of relevant books, papers and
records and the attendance of all individuals who the
commission believes to have knowledge of relevant matters in
accordance with 66 Pa.C.S. (relating to public utilities).
(b) Unauthorized disclosure.--Any information obtained by
the commission as a result of any report, examination,
investigation or hearing under this chapter shall be
confidential and shall not be disclosed, except for official
purposes, in accordance with judicial order or as otherwise
provided by law. A commissioner or an employee of the commission
who without authorization divulges confidential information
shall be subject to disciplinary action by the commission.
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§ 2314. Distribution of fee.
(a) Establishment.--There is hereby established a restricted
receipts account in the State Treasury to be known as the Shale
Impact Account to be administered by the commission.
(b) Deposit.--All fees imposed under this chapter shall be
deposited into the account and are hereby appropriated for the
purpose set forth in this section.
(c) Conservation districts.--
(1) From fees collected for 2011, $2,500,000 from the
account shall be distributed to county conservation
districts.
(2) From fees collected for 2012 and every year
thereafter, $5,000,000 from the account shall be distributed
to county conservation districts.
(3) Funds under paragraphs (1) and (2) shall be
distributed in accordance with the following:
(i) One-half shall be distributed by dividing the
amount equally among conservation districts for any use
consistent with the act of May 15, 1945 (P.L.547,
No.217), known as the Conservation District Law.
(ii) One-half shall be distributed by the State
Conservation Commission in a manner consistent with the
Conservation District Law and the provisions of the State
Conservation Commission's Conservation District Fund
Allocation Program—Statement of Policy under 25 Pa. Code
Ch. 83 Subch. B (relating to Conservation District Fund
Allocation Program—Statement of Policy).
(c.1) Office of the State Fire Commissioner.--
(1) From fees collected for 2011 and each year
thereafter, $1,500,000 shall be annually distributed to the
20110HB1950PN2837 - 159 -
Office of the State Fire Commissioner.
(2) Funds under paragraph (1) shall be used for the
following purposes:
(i) To support training programs for emergency
responders located in counties where drilling of
Marcellus Shale or other unconventional resources occurs.
(ii) To provide grants to fire departments for the
purchase of special equipment required to respond to
fires and other emergencies related to the production,
processing and transportation of natural gas or natural
gas liquids.
(c.2) Pennsylvania Fish and Boat Commission.--From fees
collected for 2011 and each year thereafter, $1,500,000 shall be
distributed to the Pennsylvania Fish and Boat Commission for
costs relating to the review of applications for permits to
drill unconventional wells.
(d) Distribution.--Following distribution under subsections
(c), (c.1) and (c.2), for 2011 and every year thereafter, 55% of
the revenues remaining in the account are hereby appropriated
under this subsection for the purposes authorized under
subsection (e). Local governments are encouraged, where
appropriate, to jointly fund projects that cross jurisdictional
lines. The commission, after making a disbursement under
subsection (d.2), shall distribute the remaining funds
appropriated under this subsection as follows within 45 days
after the date the fee is due:
(1) Thirty-six percent shall be distributed to counties
in which producing unconventional wells are located. The
amount for each county shall be determined using a formula
that divides the number of producing unconventional wells in
20110HB1950PN2837 - 160 -
the county by the number of producing unconventional wells in
this Commonwealth and multiplies the resulting percentage by
the amount available for distribution under this paragraph.
(2) Thirty-seven percent shall be distributed to
municipalities in which producing unconventional wells are
located. The amount for each municipality shall be determined
using a formula that divides the number of producing
unconventional gas wells in the municipality by the number of
producing unconventional wells in this Commonwealth and
multiplies the resulting percentage by the amount available
for distribution under this paragraph.
(3) Twenty-seven percent shall be distributed to
municipalities located in a county in which producing
unconventional wells are located. The amount available for
distribution in each county shall be determined by dividing
the number of producing unconventional wells in the county by
the number of producing unconventional wells in this
Commonwealth and multiplying the resulting percentage by the
amount available for distribution under this paragraph. The
resulting amount available for distribution in each county in
which producing unconventional wells are located shall be
distributed to each municipality in the county as follows:
(i) Fifty percent of the amount available under this
paragraph shall be distributed to municipalities in which
producing unconventional wells are located and to
municipalities that are either contiguous with a
municipality in which producing unconventional wells are
located or are located within five linear miles of a
producing unconventional well. The distribution shall be
made as follows:
20110HB1950PN2837 - 161 -
(A) One-half shall be distributed to each
eligible municipality using a formula that divides
the population of the eligible municipality within
the county by the total population of all eligible
municipalities within the county and multiplies the
resulting percentage by the amount allocated to the
county under this subparagraph.
(B) One-half shall be distributed to each
eligible municipality using a formula that divides
the highway mileage of the eligible municipality
within the county by the total highway mileage of all
eligible municipalities within the county and
multiplies the resulting percentage by the amount
allocated to the county under this subparagraph.
(ii) Fifty percent of the amount available under
this paragraph shall be distributed to each municipality
in the county regardless of whether an unconventional
well is located in the municipality as follows:
(A) One-half shall be distributed to each
municipality using a formula that divides the
population of the municipality within the county by
the total population of the county and multiplies the
resulting percentage by the amount allocated to the
county under this subparagraph.
(B) One-half shall be distributed to each
municipality using a formula that divides the highway
mileage of the municipality within the county by the
total highway mileage of the county and multiplies
the resulting percentage by the amount allocated to
the county under this subparagraph.
20110HB1950PN2837 - 162 -
(d.1) Restriction.--The amount allocated to each designated
municipality under subsection (d) shall not exceed 50% of its
total budget for fiscal year 2011, adjusted for inflation in
subsequent years by an amount not to exceed an annual cost-of-
living adjustment calculated by applying the percentage
increase, if any, in the Consumer Price Index immediately prior
to the date the adjustment is due to take effect. Any remaining
money shall be retained by the commission and deposited in the
Housing Affordability and Rehabilitation Enhancement Fund.
(d.2) Housing Affordability and Rehabilitation Enhancement
Fund.--
(1) From fees collected for 2011, $2,500,000 from the
account shall be distributed to the Housing Affordability and
Rehabilitation Enhancement Fund under the act of November 23,
2010 (P.L.1035, No.105), entitled "An act amending the act of
December 3, 1959 (P.L.1688, No.621), entitled, as amended,
'An act to promote the health, safety and welfare of the
people of the Commonwealth by broadening the market for
housing for persons and families of low and moderate income
and alleviating shortages thereof, and by assisting in the
provision of housing for elderly persons through the creation
of the Pennsylvania Housing Finance Agency as a public
corporation and government instrumentality; providing for the
organization, membership and administration of the agency,
prescribing its general powers and duties and the manner in
which its funds are kept and audited, empowering the agency
to make housing loans to qualified mortgagors upon the
security of insured and uninsured mortgages, defining
qualified mortgagors and providing for priorities among
tenants in certain instances, prescribing interest rates and
20110HB1950PN2837 - 163 -
other terms of housing loans, permitting the agency to
acquire real or personal property, permitting the agency to
make agreements with financial institutions and Federal
agencies, providing for the purchase by persons of low and
moderate income of housing units, and approving the sale of
housing units, permitting the agency to sell housing loans,
providing for the promulgation of regulations and forms by
the agency, prescribing penalties for furnishing false
information, empowering the agency to borrow money upon its
own credit by the issuance and sale of bonds and notes and by
giving security therefor, permitting the refunding,
redemption and purchase of such obligations by the agency,
prescribing remedies of holders of such bonds and notes,
exempting bonds and notes of the agency, the income
therefrom, and the income and revenues of the agency from
taxation, except transfer, death and gift taxes; making such
bonds and notes legal investments for certain purposes; and
indicating how the act shall become effective,' providing for
the Pennsylvania Housing Affordability and Rehabilitation
Enhancement Program; and establishing the Housing
Affordability and Rehabilitation Enhancement Fund." From fees
collected for 2012, and each year thereafter, $5,000,000
shall be annually distributed to the Housing Affordability
and Rehabilitation Enhancement Fund.
(2) Funds under paragraph (1) shall be used for the
following purposes:
(i) To provide support to projects in a county in
which producing unconventional wells are located that
increase availability of quality, safe, affordable
housing for low-income and moderate-income individuals or
20110HB1950PN2837 - 164 -
families, persons with disabilities or elderly persons.
(ii) To provide rental assistance in a county in
which producing unconventional wells are located to
persons or families whose household income does not
exceed the area median income.
(3) No less than 50% of the funds available under this
subsection shall be used in fifth, sixth, seventh and eighth
class counties.
(e) Use of funds.--A county or municipality receiving funds
under subsection (d) shall use the funds received only for the
following purposes associated with natural gas production from
unconventional wells within the county or municipality:
(1) Construction, reconstruction, maintenance and repair
of roadways, bridges and public infrastructure.
(2) Water, storm water and sewer systems, including
construction, reconstruction, maintenance and repair.
(3) Emergency preparedness and public safety, including
law enforcement and fire services, hazardous material
response, 911, equipment acquisition and other services.
(4) Environmental programs, including trails, parks and
recreation, open space, flood plain management, conservation
districts and agricultural preservation.
(5) Preservation and reclamation of surface and
subsurface waters and water supplies.
(6) Tax reductions, including homestead exclusions.
(7) Projects to increase the availability of safe and
affordable housing to residents.
(8) Records management, geographic information systems
and information technology.
(9) The delivery of social services.
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(10) Judicial services.
(11) For deposit into the county or municipality's
capital reserve fund if the funds are used solely for a
purpose set forth in this subsection.
(f) Reporting.--
(1) The commission shall submit an annual report on all
funds in the account. The report shall include a detailed
listing of all deposits and expenditures of the fund and be
submitted to the chairman and the minority chairman of the
Appropriations Committee of the Senate, the chairman and the
minority chairman of the Environmental Resources and Energy
Committee of the Senate, the chairman and the minority
chairman of the Appropriations Committee of the House of
Representatives and the chairman and the minority chairman of
the Environmental Resources and Energy Committee of the House
of Representatives. The report shall be submitted by
September 30, 2012, and by September 30 of each year
thereafter.
(2) All counties and municipalities receiving funds from
the account under this section shall submit information to
the commission on a form prepared by the commission that sets
forth the amount and use of the funds received in the prior
calendar year. The form shall set forth that the funds
received were committed to a specific project or use as
authorized in this section. The reports shall be published
annually on the county or municipality's publicly accessible
Internet website.
§ 2315. Statewide initiatives.
(a) Deposit and distribution.--Following distribution under
section 2314(c), (c.1) and (c.2) (relating to distribution of
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fee), 45% of the remaining revenue in the account shall be
distributed by the commission within 45 days after the date the
fee is due as follows:
(1) Twenty-five percent to the Commonwealth Financing
Authority for grants to eligible applicants for the
following:
(i) Acid mines: damage, abatement and cleanup and
mine reclamation, with priority given to projects which
recycle and treat water for use in drilling operations.
(ii) Orphan or abandoned oil and gas well plugging.
(iii) Complying with the act of January 24, 1966
(1965 P.L.1535, No.537), known as the Pennsylvania Sewage
Facilities Act.
(iv) Planning acquisition, development,
rehabilitation and repair of greenways, recreational
trails, open space, parks and beautification projects.
(v) Programs to establish baseline water quality
data on private water supplies.
(vi) Watershed programs and related projects.
(2) Twenty-five percent to the Highway Bridge
Improvement Restricted Account in the Motor License Fund to
counties to be distributed to fund the cost of the
replacement or repair of locally owned at-risk deteriorated
bridges. Funds shall be distributed to counties
proportionately based on the population of the county as
follows:
(i) In each county, the distribution shall be
according to the following formula:
(A) Divide:
(I) the total population of the county; by
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(II) the total population of the
Commonwealth;
(B) Express the quotient under clause (A) as a
percentage.
(C) Multiply:
(I) the percentage under clause (B); by
(II) the amount of money to be distributed
under this paragraph.
(ii) Each county shall receive a minimum of $40,000.
(iii) The Department of Transportation shall release
money under this paragraph upon approval of a plan
submitted by a county or municipality to repair an at-
risk deteriorated bridge. The plan must include funding
for replacement or repair.
(iv) A county of the first or second class may
submit a plan to use its funds under this paragraph for
at-risk deteriorated bridges owned by a public
transportation authority.
(3) Twenty-five percent for water and sewer projects.
Fifty percent of the amount distributed under this paragraph
shall be transmitted to the Pennsylvania Infrastructure
Infrastructure Investment Authority to be used in accordance
with the act of March 1, 1988 (P.L.82, No.16), known as the
Pennsylvania Infrastructure Investment Authority Act. Fifty
percent of the amount distributed under this paragraph shall
be distributed to the H2O PA program to be used by the
Commonwealth Financing Authority in accordance with section
301 of the act of July 9, 2008 (P.L.908, No.63), known as the
H2O PA Act. The prohibition on grants for projects located in
a city or county of the first or second class under section
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301 of the H2O PA Act shall not apply to funds distributed to
the H2O PA Program under this paragraph.
(4) Five percent to the Hazardous Sites Cleanup Fund.
(5) Fifteen percent for the planning, acquisition,
development rehabilitation and repair of greenways,
recreational trails, open space, natural areas, community
conservation and beautification projects, community and
heritage parks and water resource management. Funds shall be
distributed to counties proportionately based on the
population of the county as follows:
(i) In each county, the distribution shall be
according to the following formula:
(A) Divide:
(I) the total population of the county; by
(II) the total population of the
Commonwealth.
(B) Express the quotient under clause (A) as a
percentage.
(C) Multiply:
(I) the percentage under clause (B); by
(II) the amount of funds available under
this paragraph.
(ii) Each county shall receive a minimum of $25,000.
(6) Five percent for distribution as follows:
(i) For 2011, 2012 and 2013, to the Department of
Community and Economic Development for projects to
provide for the planning, development and construction of
a facility to liquefy natural gas or convert natural gas
to ethane, propane or similar substances.
(ii) After 2013, to the Hazardous Sites Cleanup
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Fund.
(b) Restriction on use of proceeds.--
(1) Funds distributed under subsection (a) shall not be
used for the purpose of public relations, outreach,
communications, lobbying or litigation.
(2) Funds distributed under subsection (a) may not be
used by an authorized organization as defined in 27 Pa.C.S. §
6103 (relating to definitions) for land acquisition unless
the authorized organization has obtained the written consent
of the county and municipality in which the land is situated.
(c) Coordination.--The department and the Department of
Conservation and Natural Resources shall review applications for
funding as requested by the Commonwealth Financing Authority and
provide recommendations on priority of projects and project
approval.
§ 2316. Diverse business participation.
(a) General rule.--Unconventional well producers and related
extraction companies, including contractors, subcontractors,
professional service providers and suppliers, shall provide
maximum practicable opportunities for diverse business
participation.
(b) Duties.--Unconventional well producers shall do all of
the following:
(1) Fully comply with the Commonwealth's contract
compliance policy regarding nondiscrimination.
(2) Notify the Department of General Services' Bureau of
Minority and Women Business Opportunities of contracting
opportunities from diverse businesses.
(3) Use or obtain the Bureau of Minority and Women
Business Opportunities' assistance in using the Department of
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General Services' Internet website to identify certified
diverse businesses as potential sources for Marcellus Shale
opportunities.
(4) Utilize the Department of General Services available
source list of veteran-owned small businesses.
(c) Survey.--The Department of General Services shall
conduct a survey of unconventional well producers to ascertain
the extent of diverse business participation. This survey shall
be completed by December 31, 2012.
(d) Report.--The Department of General Services shall submit
an annual report to the Appropriations Committee of the Senate
and the Appropriations Committee of the House of Representatives
on the utilization of diverse business participation in the
Marcellus Shale gas extraction industry.
(e) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Diverse business." Minority-owned business, women-owned
business and veteran-owned business as determined by the
Department of General Services.
§ 2317. Applicability.
The provisions of this chapter shall not negate or limit the
responsibilities of any producer under this title, 74 Pa.C.S
(relating to transportation) or 75 Pa.C.S. (relating to
vehicles).
§ 2318. Expiration.
(a) Notice.--The Secretary of the Commonwealth shall, upon
the imposition of a severance tax on unconventional wells in
this Commonwealth, submit for publication in the Pennsylvania
Bulletin notice of the imposition.
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(b) Date.--This chapter shall expire on the date of the
publication of the notice under subsection (a).
CHAPTER 25
NATURAL GAS ENERGY Development Program
Sec.
2501. Definitions.
2502. Assessment.
2503. Program.
§ 2501. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Authority." The Commonwealth Financing Authority
established in 64 Pa.C.S. § 1511 (relating to authority).
"Commission." As defined in section 2301 (relating to
definitions).
"Eligible applicant." Any of the following:
(1) A school district.
(2) A county or municipality.
(3) A Commonwealth authority.
(4) A municipal authority.
(5) The Pennsylvania Turnpike Commission.
(6) A local transportation organization.
(7) A nonprofit entity.
(8) A State-owned or State-related university.
"Local transportation organization." Any of the following:
(1) A political subdivision.
(2) A public transportation authority, port authority or
redevelopment authority, which is:
(i) organized under:
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(A) the laws of this Commonwealth; or
(B) an interstate compact; or
(ii) otherwise empowered to render, contract to
render or assist in rendering transportation services in
a limited area in this Commonwealth even though it may
also render or assist in rendering transportation service
in adjacent states.
(3) A nonprofit association which directly or indirectly
provides public transportation service.
(4) A nonprofit association of public transportation
providers operating within this Commonwealth.
"Municipality." A borough, city, town or township.
"Producer." As defined in section 2301 (relating to
definitions).
"Unconventional well." As defined in section 2301 (relating
to definitions).
"Vertical gas well." As defined in section 2301 (relating to
definitions).
§ 2502. Assessment.
(a) Imposition.--There shall be imposed an assessment by the
commission on unconventional wells located in this Commonwealth
prior to January 1, 2011.
(b) Unconventional well.--The assessment for each
unconventional well shall be determined as follows:
(1) The assessment for each unconventional well, other
than a vertical gas well, producing natural gas prior to
January 1, 2011, shall be $20,000.
(2) The assessment for each vertical gas well producing
natural gas prior to January 1, 2011, shall be $10,000.
(3) The assessment for each unconventional well drilled
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but not producing natural gas prior to January 1, 2011, shall
be $8,000.
(c) Deadline and payment.--For calendar year 2010, a report
in accordance with section 2303(d) (relating to administration)
shall be filed by December 31, 2011, and the assessment due
shall be paid as follows:
(1) Fifty percent of the assessment shall be paid by
June 30, 2012.
(2) Fifty percent of the assessment shall be paid by
September 30, 2012.
(d) Deposit of funds.--Funds received from the assessment
under this section shall be deposited by the commission into the
restricted receipts account established under section 2314(a)
(relating to distribution of fee).
§ 2503. Program.
(a) Establishment and purpose.--The Natural Gas Energy
Development Program is established. The purpose of the program
is to fund projects under this section.
(b) Appropriation.--By November 1, 2012, an amount equal to
the funds collected under section 2502 (relating to assessment)
shall be transferred from the restricted receipts account
established under section 2314(a) (relating to distribution of
fee) to the authority. The authority shall use the funds to
promote domestic energy development projects utilizing natural
gas.
(c) Projects.--
(1) Funds transferred to the authority under subsection
(b) shall be utilized for grants, loans, reimbursements or
rebates to eligible applicants for any of the following
programs:
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(i) The conversion or replacement of buses with
natural gas vehicles.
(ii) The conversion or replacement of public transit
authority vehicles with natural gas vehicles.
(iii) The conversion or replacement of medium and
heavy duty vehicles, including garbage trucks, street
sweepers and plow trucks, operated by eligible
applicants.
(iv) The construction of natural gas fueling
stations.
(v) The purchase and installation of the necessary
natural gas fleet refueling equipment for vehicles
operating on natural gas.
(2) A producer shall not be eligible for a grant, loan,
reimbursement or rebate under this subsection.
(d) Guidelines.--Funds under this section shall be used in
accordance with guidelines of the authority. Guidelines may
require the eligible applicant to provide matching funds not to
exceed 50% of the total cost of the project.
(e) Application.--An applicant shall submit an application
including supporting information as required by the authority.
(f) Administrative costs.--No more than 1% of the funds
appropriated to the authority under subsection (b) shall be used
for administrative costs.
(g) Applicant eligibility.--In order to be eligible to
receive funds under this section, an applicant must provide the
following:
(1) A detailed description of the project, including the
proposed use of funds and an explanation of how the project
will fulfill the goals of this section.
20110HB1950PN2837 - 175 -
(2) The cost of the project.
(3) The source and amount of any funds to be contributed
by the applicant.
(4) A description of how the project will increase this
Commonwealth's use of domestic natural gas.
(h) Project eligibility.--In order to be eligible for
funding under this section, a project shall be located in this
Commonwealth.
(i) Project review.--The authority shall review and prepare
an assessment of each application and determine which projects
will best utilize and promote the use of domestically produced
natural gas in this Commonwealth. Projects shall be awarded in
accordance with 64 Pa.C.S. § 1512 (relating to board). The
department or the Department of Community and Economic
Development shall provide technical assistance as appropriate.
(j) Report.--The authority shall provide a report to the
chairman and minority chairman of the Appropriations Committee
of the Senate and the chairman and minority chairman of the
Appropriations Committee of the House of Representatives by
October 1, 2013, and each October 1 thereafter. The report shall
be maintained on the authority's official Internet website and
shall include:
(1) A list of all grants, loans, reimbursements and
rebates approved and loans repaid during the previous fiscal
year, including the amount of the loan or grant and a
description of each approved project.
(2) The estimated domestic energy benefits to date for
all projects receiving funding during the fiscal year and the
method used to determine estimated benefits.
CHAPTER 31
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(RESERVED)
CHAPTER 32
REGULATION
Subchapter
A. Preliminary Provisions
B. General Requirements
C. Underground Gas Storage
D. Eminent Domain
E. Enforcement and Remedies
F. (Reserved)
G. Miscellaneous Provisions
SUBCHAPTER A
PRELIMINARY PROVISIONS
Sec.
3201. Scope of chapter.
3202. Declaration of purpose.
3203. Definitions.
§ 3201. Scope of chapter.
This chapter relates to oil and gas.
§ 3202. Declaration of purpose.
The purposes of this chapter are to:
(1) Permit optimal development of oil and gas resources
of this Commonwealth consistent with protection of the
health, safety, environment and property of Pennsylvania
citizens.
(2) Protect the safety of personnel and facilities
employed in coal mining or exploration, development, storage
and production of natural gas or oil.
(3) Protect the safety and property rights of persons
residing in areas where mining, exploration, development,
20110HB1950PN2837 - 177 -
storage or production occurs.
(4) Protect the natural resources, environmental rights
and values secured by the Constitution of Pennsylvania.
§ 3203. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Abandoned well." Any of the following:
(1) A well:
(i) that has not been used to produce, extract or
inject any gas, petroleum or other liquid within the
preceding 12 months;
(ii) for which equipment necessary for production,
extraction or injection has been removed; or
(iii) considered dry and not equipped for production
within 60 days after drilling, redrilling or deepening.
(2) The term does not include wells granted inactive
status.
"Alteration." An operation which changes the physical
characteristics of a well bore, including stimulation or
removing, repairing or changing the casing. For the purpose of
this chapter, the term does not include:
(1) Repairing or replacing of the casing if the
operation does not affect the depth or diameter of the well
bore, the use or purpose of the well does not change and the
activity complies with regulations promulgated under this
chapter. This paragraph shall not apply:
(i) to production casings in coal areas when the
production casings are also the coal protection casings;
or
20110HB1950PN2837 - 178 -
(ii) when the method of repairing or replacing the
casing would affect the coal protection casing.
(2) Stimulation of a well.
"Board." The Oil and Gas Technical Advisory Board.
"Bridge." An obstruction placed in a well at any depth.
"Building." An occupied structure with walls and roof within
which persons live or customarily work.
"Casing." A string or strings of pipe commonly placed in
wells drilled for natural gas or petroleum.
"Cement" or "cement grout." Any of the following:
(1) Hydraulic cement properly mixed with water only.
(2) A mixture of materials adequate for bonding or
sealing of well bores as approved by regulations promulgated
under this chapter.
"Coal mine." Any of the following:
(1) Operations in a coal seam, including excavated
portions, abandoned portions and places actually being
worked.
(2) Underground workings and shafts, slopes, tunnels and
other ways and openings, including those which are in the
course of being sunk or driven, along with all roads and
facilities connected with them below the surface.
"Coal operator." A person that operates or proposes to
operate a coal mine as an owner or lessee.
"Completion of a well." The date after treatment, if any,
that the well is properly equipped for production of oil or gas,
or, if the well is dry, the date that the well is abandoned.
"Department." The Department of Environmental Protection of
the Commonwealth.
"Drilling." The drilling or redrilling of a well or the
20110HB1950PN2837 - 179 -
deepening of an existing well.
"Fresh groundwater." Water in that portion of the generally
recognized hydrologic cycle which occupies the pore spaces and
fractures of saturated subsurface materials.
"Gas." Any of the following:
(1) A fluid, combustible or noncombustible, which is
produced in a natural state from the earth and maintains a
gaseous or rarified state at standard temperature of 60
degrees Fahrenheit and pressure 14.7 PSIA.
(2) Any manufactured gas, byproduct gas or mixture of
gases.
"Inactivate." To shut off the vertical movement of gas in a
gas storage well by means of a temporary plug or other suitable
device or by injecting bentonitic mud or other equally nonporous
material into the well.
"Linear foot." A unit or measurement in a straight line on a
horizontal plane.
"Oil." Hydrocarbons in liquid form at standard temperature
of 60 degrees Fahrenheit and pressure 14.7 PSIA, also referred
to as petroleum.
"Operating coal mine." Any of the following:
(1) An underground coal mine which is producing coal or
has been in production of coal at any time during the 12
months immediately preceding the date its status is put in
question, including contiguous worked-out or abandoned coal
mines to which it is connected underground.
(2) An underground coal mine to be established or
reestablished under paragraph (1).
"Operating well." A well that is not plugged and abandoned.
"Orphan well." A well abandoned prior to April 18, 1985,
20110HB1950PN2837 - 180 -
that has not been affected or operated by the present owner or
operator and from which the present owner, operator or lessee
has received no economic benefit other than as a landowner or
recipient of a royalty interest from the well.
"Outside coal boundaries." When used in conjunction with the
term "operating coal mine," the boundaries of the coal acreage
assigned to the coal mine under an underground mine permit
issued by the Department of Environmental Protection.
"Owner." A person who owns, manages, leases, controls or
possesses a well or coal property. The term does not apply to
orphan wells, except where the Department of Environmental
Protection determines a prior owner or operator benefited from
the well as provided in section 3220(a) (relating to plugging
requirements).
"Person." An individual, association, partnership,
corporation, political subdivision or agency of the Federal
Government, State government or other legal entity.
"Petroleum." Hydrocarbons in liquid form at standard
temperature of 60 degrees Fahrenheit and pressure 14.7 PSIA,
also referred to as oil.
"Pillar." A solid block of coal surrounded by either active
mine workings or a mined-out area.
"Plat." A map, drawing or print accurately drawn to scale
showing the proposed or existing location of a well or wells.
"Reservoir protective area." The area surrounding a storage
reservoir boundary, but within 2,000 linear feet of the storage
reservoir boundary, unless an alternate area has been designated
by the Department of Environmental Protection, which is deemed
reasonably necessary to afford protection to the reservoir,
under a conference held in accordance with section 3251
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(relating to conferences).
"Retreat mining." Removal of coal pillars, ribs and stumps
remaining after development mining has been completed in that
section of a coal mine.
"Secretary." The Secretary of Environmental Protection of
the Commonwealth.
"Storage operator." A person who operates or proposes to
operate a storage reservoir as an owner or lessee.
"Storage reservoir." That portion of a subsurface geological
stratum into which gas is or may be injected for storage
purposes or to test suitability of the stratum for storage.
"Unconventional formation." A geological shale formation
existing below the base of the Elk Sandstone or its geologic
equivalent stratigraphic interval where natural 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.
"Unconventional well." A bore hole drilled or being drilled
for the purpose of or to be used for the production of natural
gas from an unconventional formation.
"Well." A bore hole drilled or being drilled for the purpose
of, or to be used for, producing, extracting or injecting gas,
petroleum or another liquid related to oil or gas production or
storage, including brine disposal, but excluding a bore hole
drilled to produce potable water. The term does not include a
bore hole drilled or being drilled for the purpose of, or to be
used for:
(1) Systems of monitoring, producing or extracting gas
20110HB1950PN2837 - 182 -
from solid waste disposal facilities, if the bore hole is a
well subject to the act of July 7, 1980 (P.L.380, No.97),
known as the Solid Waste Management Act, which does not
penetrate a workable coal seam.
(2) Degasifying coal seams, if the bore hole is:
(i) used to vent methane to the outside atmosphere
from an operating coal mine; regulated as part of the
mining permit under the act of June 22, 1937 (P.L.1987,
No.394), known as The Clean Streams Law, and the act of
May 31, 1945 (P.L.1198, No.418), known as the Surface
Mining Conservation and Reclamation Act; and drilled by
the operator of the operating coal mine for the purpose
of increased safety; or
(ii) used to vent methane to the outside atmosphere
under a federally funded or State-funded abandoned mine
reclamation project.
"Well operator" or "operator." Any of the following:
(1) The person designated as operator or well operator
on the permit application or well registration.
(2) If a permit or well registration was not issued, a
person who locates, drills, operates, alters or plugs a well
or reconditions a well with the purpose of production from
the well.
(3) If a well is used in connection with underground
storage of gas, a storage operator.
"Wetland." Areas inundated or saturated by surface or
groundwater at a frequency and duration sufficient to support,
and which normally support, a prevalence of vegetation typically
adapted for life in saturated soil conditions, including swamps,
marshes, bogs and similar areas.
20110HB1950PN2837 - 183 -
"Workable coal seams." A coal seam which:
(1) is actually being mined in the area in question
under this chapter by underground methods; or
(2) in the judgment of the Department of Environmental
Protection, can reasonably be expected to be mined by
underground methods.
SUBCHAPTER B
GENERAL REQUIREMENTS
Sec.
3211. Well permits.
3212. Permit objections.
3213. Well registration and identification.
3214. Inactive status.
3215. Well location restrictions.
3216. Well site restoration.
3217. Protection of fresh groundwater and casing requirements.
3218. Protection of water supplies.
3218.1. Containment for unconventional wells.
3218.2. Transportation records regarding wastewater fluids.
3218.3. Emergency response information.
3218.4. Notification to public drinking water systems.
3218.5. Corrosion control requirements.
3218.6. Gathering lines.
3219. Use of safety devices.
3220. Plugging requirements.
3221. Alternative methods.
3222. Well reporting requirements.
3223. Notification and effect of well transfer.
3224. Coal operator responsibilities.
3225. Bonding.
20110HB1950PN2837 - 184 -
3226. Oil and Gas Technical Advisory Board.
§ 3211. Well permits.
(a) Permit required.--No person shall drill a well or alter
an existing well, except for alterations which satisfy the
requirements of subsection (j), without having first obtained a
well permit in accordance with this section. A copy of the
permit shall be kept at the well site during preparation and
construction of the well site or access road, drilling,
operation or alteration of the well. No person shall be required
to obtain a permit to redrill a nonproducing well if the
redrilling:
(1) has been evaluated and approved as part of an order
from the department authorizing cleaning out and plugging or
replugging a nonproducing well under section 13(c) of the act
of December 18, 1984 (P.L.1069, No.214), known as the Coal
and Gas Resource Coordination Act; and
(2) is incidental to a plugging or replugging operation
and the well is plugged within 15 days of redrilling.
(b) Plat.--The permit application shall be accompanied by a
plat prepared by a competent engineer or a competent surveyor,
on forms furnished by the department, showing the political
subdivision and county in which the tract of land upon which the
well to be drilled, operated or altered, 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, or in the case of an unconventional well
within 3,000 feet from the vertical well bore, the name of the
owner of record or operator of all known underlying workable
coal seams, the acreage in the tract to be drilled, the proposed
location of the well determined by survey, courses and distances
20110HB1950PN2837 - 185 -
of the location from two or more permanent identifiable points
or landmarks on the tract boundary corners, the proposed angle
and direction of the well if the well is to be deviated
substantially from a vertical course, the number or other
identification to be given the well, workable coal seams
underlying the tract of land upon which the well is to be
drilled, operated or altered and which shall be cased off under
section 3217 (relating to protection of fresh groundwater and
casing requirements) and any other information needed by the
department to administer this chapter.
(b.1) Notification.--The following shall apply:
(1) The applicant shall forward by certified mail a copy
of the plat to the following:
(i) The surface landowner.
(ii) All surface landowners or water purveyors whose
water supplies are within 1,000 feet of the proposed well
location or, in the case of an unconventional well,
within 3,000 feet of the vertical well bore.
(iii) The owner and lessee, if any, of any workable
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.
(iv) The municipality where the proposed
unconventional well is located and each municipality
within 3,000 feet of the proposed unconventional vertical
well bore.
(v) Storage operators within 3,000 feet of the
proposed unconventional vertical well bore.
(2) Notification of surface owners shall be performed by
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sending notice to those persons to whom the tax notices for
the surface property are sent, as indicated in the assessment
books in the county in which the property is located.
Notification of surface landowners or water purveyors shall
be on forms, and in a manner prescribed by the department,
sufficient to identify the rights afforded those persons
under section 3218 (relating to protection of water supplies)
and advise them of the advisability of taking their own
predrilling or prealteration survey. The applicant shall
submit proof of compliance with this subsection with the well
permit application.
(b.2) Approval.--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 of any coal
underlying the proposed well location and no objections are
raised by the department within 15 days of filing, or if no
approval has been submitted and no objections are made to the
proposed well location within 15 days from receipt of 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 the well location, subject to inspection at
any time by any interested person. The application form to
operate an abandoned or orphan well shall provide notification
to the applicant of its responsibilities to plug the well upon
abandonment.
(c) Applicants.--If the applicant for a well permit is a
corporation, partnership or person that is not a resident of
this Commonwealth, the applicant shall designate the name and
address of an agent for the operator who shall be the attorney-
in-fact for the operator and who shall be a resident of this
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Commonwealth upon whom notices, orders or other communications
issued under this chapter may be served and upon whom process
may be served. Each well operator required to designate an agent
under this section shall, within five days after termination of
the designation, notify the department of the termination and
designate a new agent.
(d) Permit fee.--Each application for a well permit shall be
accompanied by a permit fee, established by regulation of the
Environmental Quality Board, which bears a reasonable
relationship to the cost of administering this chapter.
(e) Issuance of permit.--The department shall issue a permit
within 45 days of submission of an application unless the
department denies the permit application for any of the reasons
set forth in subsection (e.1), except that the department shall
have the right to extend the period for 15 days for cause shown
upon notification to the applicant of the reasons for the
extension. The department may impose permit terms and conditions
necessary to assure compliance with this chapter or other laws
administered by the department.
(e.1) Denial of permit.--The department may deny a permit
for any of the following reasons:
(1) The well site for which a permit is requested is in
violation of this chapter or issuance of the permit would
result in a violation of this chapter or other applicable
law.
(2) The permit application is incomplete.
(3) Unresolved objections to the well location by coal
mine owner or operator remain.
(4) The requirements of section 3225 (relating to
bonding) have not been met.
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(5) The applicant, with respect to any other well
operated by the applicant, is in continuing violation of this
chapter or other applicable law administered by the
department and the likely result of the violation is an
unsafe operation or environmental damage. If a final
determination of the violation has been made in the
applicant's favor, the department shall reconsider the
application and the violation shall not be considered in the
application review. The department may not collect an
application fee for the reconsideration.
(6) The applicant failed to pay the fee or file a report
under section 2303(d) and (e) (relating to administration),
unless an appeal is pending. The commission shall notify
the department of any applicant who has failed to pay the fee
or file a report and who does not have an appeal pending.
(7) The water management plan submitted by the
applicant to drill an unconventional well does not include a
reuse plan for fluids that will be used to hydraulically
fracture that well.
(f) Drilling.--Upon issuance of a permit, the well operator
may proceed to drill, operate or alter the well at the exact
location shown on the plat after providing the department, the
surface landowner and the local political subdivision in which
the well is to be located 24 hours' notice of the date that
drilling will commence. In noncoal areas where more than one
well is to be drilled as part of the same development project,
only the first well of the project need be located by survey.
Remaining wells of the project shall be shown on the plat in a
manner prescribed by regulation. Prior to drilling each
additional project well, the well operator shall notify the
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department and provide reasonable notice of the date on which
drilling will commence. Whenever, before or during the drilling
of a well not within the boundaries of an operating coal mine,
the well operator encounters conditions of a nature which
renders drilling of the bore hole or a portion thereof
impossible, or more hazardous than usual, the well operator,
upon verbal notice to the department, may immediately plug all
or part of the bore hole, if drilling has occurred, and commence
a new bore hole not more than 50 feet from the old bore hole if
the location of the new bore hole does not violate section 3215
(relating to well location restrictions) and, in the case of a
well subject to act of July 25, 1961 (P.L.825, No.359), known as
the Oil and Gas Conservation Law, if the new location complies
with existing laws, regulations and spacing orders and the new
bore hole is at least 330 feet from the nearest lease boundary.
Within ten days of commencement of the new bore hole, the well
operator shall file with the department a written notice of
intention to plug, a well record, a completion report, a
plugging certificate for the original bore hole and an amended
plat for the new bore hole. The well operator shall forward a
copy of the amended plat to the surface landowner identified on
the well permit application within ten days of commencement of
the new well bore.
(g) Posting.--The well permit number and operator's name,
address and telephone number shall be conspicuously posted at
the drilling site during site preparation , including the
construction of access roads, construction of the well site and
during drilling, operation or alteration of the well.
(h) Labeling.--The well operator shall install the permit
number issued by the department in a legible, visible and
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permanent manner on the well upon completion.
(i) Expiration.--Well permits issued for drilling wells
under this chapter shall expire one year after issuance unless
operations for drilling the well are commenced within the period
and pursued with due diligence or unless the permit is renewed
in accordance with regulations of the department. If drilling is
commenced during the one-year period, the well permit shall
remain in force until the well is plugged in accordance with
section 3220 (relating to plugging requirements) or the permit
is revoked. A drilling permit issued prior to April 18, 1985,
for a well which is an operating well on April 18, 1985, shall
remain in force as a well permit until the well is plugged in
accordance with section 3220. Nothing in this subsection shall
be construed to rescind the provisions pertaining to drilling
permits contained in the Oil and Gas Conservation Law.
(j) Exceptions.--The Environmental Quality Board may
establish by regulation certain categories of alterations of
permitted or registered wells for which permitting requirements
of this section shall not apply. A well operator or owner who
proposes to conduct the alteration activity shall first obtain a
permit or registration modification from the department. The
Environmental Quality Board shall promulgate regulations as to
the requirements for modifications.
(k) No transfer permitted.--No permit issued under this
section or registration issued under section 3213 (relating to
well registration and identification) may be transferred without
prior approval of the department. A request for approval of a
transfer shall be on the forms, and in the manner, prescribed by
the department. The department shall approve or deny a transfer
request within 45 days of receipt of a complete and accurate
20110HB1950PN2837 - 191 -
application. The department may deny a request only for reasons
set forth in subsection (e.1)(4), (5) and (6). Approval of a
transfer request shall permanently transfer responsibility to
plug the well under section 3220 to the recipient of the
transferred permit or registration. The department may establish
a procedure for accelerated approval of well permit applications
in hardship cases, as defined by regulation of the Environmental
Quality Board, consistent with the requirements of this chapter.
§ 3212. Permit objections.
(a) General rule.--If a well referred to in section 3211(b)
(relating to well permits) will be located on a tract whose
surface is owned by a person other than the well operator, the
surface landowner affected shall be notified of the intent to
drill and may file objections, in accordance with section 3251
(relating to conferences), based on the assertion that the well
location violates section 3215 (relating to well location
restrictions) or that information in the application is untrue
in any material respect, within 15 days of the receipt by the
surface owner of the plat under section 3211(b). Receipt of
notice by the surface owner shall be presumed to have occurred
15 days from the date of the certified mailing when the well
operator submits a copy of the certified mail receipt sent to
the surface owner and an affidavit certifying that the address
of the surface owner to which notice was sent is the same as the
address listed in the assessment books in the county where the
property is located. If no objection is filed or none is raised
by the department within 15 days after receipt of the plat by
the surface landowner, or if written approval by the surface
landowner is filed with the department and no objection is
raised by the department within 15 days of filing, the
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department shall proceed to issue or deny the permit.
(b) Special circumstances.--If a well referred to in section
3211(b) will penetrate within the outside coal boundaries of an
operating coal mine or a coal mine already projected and platted
but not yet being operated, or within 1,000 linear feet beyond
those boundaries, and, in the opinion of the coal owner or
operator, the well or a pillar of coal about the well will
unduly interfere with or endanger the mine, the coal owner or
operator affected may file objections under section 3251 to the
proposed location within 15 days of the receipt by the coal
operator of the plat under section 3211(b). If possible, an
alternative location at which the proposed well could be drilled
to overcome the objections shall be indicated. If no objection
to the proposed location is filed or if none is 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
objection is raised by the department within 15 days of filing,
the department shall proceed to issue or deny the permit.
(c) Procedure upon objection.--If an objection is filed by a
coal operator or owner or made by the department, the department
shall fix a time and place for a conference under section 3251
not more than ten days from the date of service of the objection
to allow the parties to consider the objection and attempt to
agree on a location. If they fail to agree, the department, by
an appropriate order, shall determine a location on the tract of
land as near to the original location as possible where, in the
judgment of the department, the well can be safely drilled
without unduly interfering with or endangering the mine as
defined in subsection (b). The new location agreed upon by the
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parties or determined by the department shall be indicated on
the plat on file with the department and become a permanent
record upon which the department shall proceed to issue or deny
the permit.
(d) Survey.--Within 120 days after commencement of drilling
operations, the coal operator shall accurately locate the well
by a closed survey on the same datum as the mine workings or
coal boundaries are mapped, file the results of the survey with
the department and forward a copy by certified mail to the well
operator.
§ 3213. Well registration and identification.
(a) General rule.--On or before July 5, 1996, each person
who owned or operated a well in existence prior to April 18,
1985, which has not been registered with the department and for
which no drilling permit has been issued by the department,
shall register the well with the department. A well owner or
operator who registers under this subsection and a well owner or
operator who has previously registered a well under this chapter
shall, on or before July 5, 1996, identify any abandoned well on
property which the well owner or operator owns or leases and
request approval from the department for classification of the
well as an orphan well. Information regarding wells to be
registered or identified shall be provided on a form, or in a
manner, prescribed by the department and shall include:
(1) The name and address of the well operator and, if
the well operator is a corporation, partnership or person
nonresident of this Commonwealth, the name and address of an
agent for the operator upon whom notices, orders, process or
other communications issued under this chapter may be served.
(2) The well name and the location of the well indicated
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by a point on a 7 1/2 minute United States Geological Survey
topographic map or any other location description sufficient
to enable the department to locate the well on the ground.
(3) The approximate date of drilling and completing the
well, its approximate depth and producing horizons, well
construction information and, if available, driller's logs.
(4) An indemnity bond, an alternative fee in lieu of
bonding or other evidence of financial security submitted by
the well operator and deemed appropriate by the department
and satisfying the requirements of section 3225 (relating to
bonding). No bond, alternative fee or other evidence of
financial security shall be required for identification of an
orphan well. For wells drilled prior to January 30, 1956,
which have not been bonded, the well operator shall have five
years to comply with the provisions of this paragraph.
(5) A registration fee of $15 per well or blanket
registration fee of $250 for multiple well registration
applications submitted simultaneously. The registration fee
shall be waived until July 5, 1996, and no fee shall be
charged for identification of an orphan well.
(a.1) Orphan wells.--After July 5, 1996, a well owner, well
operator or other person discovering an abandoned well on
property purchased or leased by the well owner, well operator or
other person shall identify it to the department within 60 days
of discovery and advise the department that he is seeking
classification of the well as an orphan well. No fee shall be
required for identification.
(b) Extension.--The department may extend the one-year time
period under subsection (a) for good cause shown. The extension
may not exceed a period ending two years from April 18, 1985.
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The department may adopt and promulgate guidelines designed to
ensure a fair implementation of this section, recognizing the
practical difficulties of locating unpermitted wells and
complying with the reporting requirements of this chapter.
(c) Installation of registration number.--The well operator
shall install the registration number issued by the department
in a legible, conspicuous and permanent manner on the well
within 60 days of issuance.
(d) Definition.--For purposes of subsection (a)(4) and (5),
the term "owner" does not include an owner or possessor of
surface real property, on which an abandoned well is located,
who did not participate or incur costs in, and had no right of
control over, the drilling or extraction operation of the
abandoned well.
§ 3214. Inactive status.
(a) General rule.--Upon application, the department shall
grant inactive status for a period of five years for a permitted
or registered well, if the following requirements are met:
(1) the condition of the well is sufficient to prevent
damage to the producing zone or contamination of fresh water
or other natural resources or surface leakage of any
substance;
(2) the condition of the well is sufficient to stop the
vertical flow of fluids or gas within the well bore and is
adequate to protect freshwater aquifers, unless the
department determines the well poses a threat to the health
and safety of persons or property or to the environment;
(3) the operator anticipates construction of a pipeline
or future use of the well for primary or enhanced recovery,
gas storage, approved disposal or other appropriate uses
20110HB1950PN2837 - 196 -
related to oil and gas well production; and
(4) the applicant satisfies the bonding requirements of
sections 3213 (relating to well registration and
identification) and 3225 (relating to bonding), except that
the department may require additional financial security for
a well on which an alternative fee is being paid in lieu of
bonding under section 3225(d).
(b) Monitoring.--The owner or operator of a well granted
inactive status shall be responsible for monitoring the
mechanical integrity of the well to ensure that the requirements
of subsection (a)(1) and (2) are met and shall report the same
on an annual basis to the department in the manner and form
prescribed by departmental regulations.
(c) (Reserved).
(d) Return to active status.--A well granted inactive status
under subsection (a) shall be plugged in accordance with section
3220 (relating to plugging requirements) or returned to active
status within five years of the date inactive status was
granted, unless the owner or operator applies for an extension
of inactive status which may be granted on a year-to-year basis
if the department determines that the owner or operator has
demonstrated ability to continue meeting the requirements of
this section and the owner or operator certifies that the well
will be of future use within a reasonable period of time. An
owner or operator who has been granted inactive status for a
well which is returned to active status prior to expiration of
the five-year period set forth in subsection (a) shall notify
the department that the well has been returned to active status
and shall not be permitted to apply for another automatic five-
year period of inactive status for the well. The owner or
20110HB1950PN2837 - 197 -
operator may make application to return the well to inactive
status, and the application may be approved on a year-to-year
basis if the department determines that the owner or operator
has demonstrated an ability to continue meeting the requirements
of this section and the owner or operator certifies that the
well will be of future use within a reasonable period of time.
The department shall approve or deny an application to extend a
period of inactive status or to return a well to inactive status
within 60 days of receipt of the application, and the
application shall not be unreasonably denied. If the department
has not completed its review of the application within 60 days,
the inactive status shall continue until the department has made
a determination on the request. If the department denies an
application to extend the period of inactive status or to return
a well to inactive status, a well owner or operator aggrieved by
the denial shall have the right to appeal the denial to the
Environmental Hearing Board within 30 days of receipt of the
denial. Upon cause shown by a well owner or operator, the board
may grant a supersedeas under section 4 of the act of July 13,
1988 (P.L.530, No.94), known as the Environmental Hearing Board
Act, so that the well in question may retain inactive status
during the period of the appeal.
(e) Revocation of inactive status.--The department may
revoke inactive status and order immediate plugging of a well if
the well is in violation of this chapter or rules or regulations
promulgated under this chapter or if the owner or operator
demonstrates inability to perform obligations under this chapter
or becomes financially insolvent, or upon receipt by the
department of notice of bankruptcy proceedings by the permittee.
§ 3215. Well location restrictions.
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(a) General rule.--Wells may not be drilled within 200 feet,
or in the case of an unconventional well within 500 feet,
measured horizontally from any existing building or existing
water well without written consent of the owner of the building
or water well. If 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 the surface tract, the well
operator may be granted a variance from the distance restriction
upon submission of a plan identifying the additional measures,
facilities or practices to be employed during well site
construction, drilling and operations. The variance, if granted,
shall include additional terms and conditions required by the
department to ensure safety and protection of affected persons
and property, including insurance, bonding, indemnification and
technical requirements.
(b) Limitation.--No well site may be prepared or well
drilled within 100 feet, or in the case of an unconventional
well within 300 feet from the vertical well bore or 100 feet
from the edge of the well pad, whichever is greater, measured
horizontally 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. No
unconventional well may be located within 1,000 feet from the
vertical well bore from a public water supply source as defined
in the Safe Drinking Water Act (Public Law 93-523, 21 U.S.C. §
349 and 42 U.S.C. §§ 201 and 300f et seq.). The department may
waive the distance restrictions upon submission of a plan
identifying additional measures, facilities or practices to be
employed during well site construction, drilling and operations.
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The waiver, if granted, shall impose permit conditions necessary
to protect the waters of the Commonwealth.
(c) Impact.-- When reviewing a well permit application, the
department shall consider and may deny or condition a well
permit based on the impact of the proposed well on public
resources, including, but not limited to:
(1) Publicly owned parks, forests, game lands 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.
(6) Sources used for public drinking water supplies in
accordance with subsection (b).
(7) Whether the proposed well location is within a
floodplain.
(d) Additional protective measures.--The department may
establish additional protective measures for storage of
hazardous chemicals and materials intended to be used, or that
have been used, on an unconventional well drilling site within
750 feet of a stream, spring or body of water identified on the
most current 7 1/2 minute topographic quadrangle map of the
United States Geological Survey.
(e) Applicability.--The following shall apply:
(1) This section shall not apply to a well proposed to
be drilled on on existing well site for which at least one
well permit has been issued prior to the effective date of
this section.
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(2) Nothing in this section shall alter or abridge the
terms of any contracts, mortgages or other agreements entered
into prior to to the effective date of this section.
§ 3216. Well site restoration.
(a) General rule.--Each oil or gas well owner or operator
shall restore the land surface within the area disturbed in
siting, drilling, completing and producing the well.
(b) Plan.--During and after earthmoving or soil disturbing
activities, including, but not limited to, activities related to
siting, drilling, completing, producing and plugging the well,
erosion and sedimentation control measures shall be implemented
in accordance with an erosion and sedimentation control plan
prepared in accordance with the act of June 22, 1937 (P.L.1987,
No.394), known as The Clean Streams Law.
(c) Pits, drilling supplies and equipment.--Within nine
months after completion of drilling of a 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 express written consent of the
surface landowner is obtained.
(d) Items related to production or storage.--Within nine
months after plugging a well, the owner or operator shall remove
all production or storage facilities, supplies and equipment and
restore the well site.
(e) Clean Streams Law.--Restoration activities required by
this chapter or in regulations promulgated under this chapter
shall also comply with all applicable provisions of The Clean
Streams Law.
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(f) Violation of chapter.--Failure to restore the well site
as required in this chapter or regulations promulgated under
this chapter constitutes a violation of this chapter.
(g) Extension.--The restoration period may be extended by
the department for an additional six months upon application of
the well owner or operator upon evidence of inability to comply
due to adverse weather conditions or lack of essential fuel,
equipment or labor.
§ 3217. Protection of fresh groundwater and casing
requirements.
(a) General rule.--To aid in protection of fresh
groundwater, well operators shall control and dispose of brines
produced from the drilling, alteration or operation of an oil or
gas well in a manner consistent with the act of June 22, 1937
(P.L.1987, No.394), known as The Clean Streams Law, or any rule
or regulation promulgated under The Clean Streams Law.
(b) Casing.--To prevent migration of gas or fluids into
sources of fresh groundwater and pollution or diminution of
fresh groundwater, a string or strings of casing shall be run
and permanently cemented in each well drilled through the fresh
water-bearing strata to a depth and in a manner prescribed by
regulation by the department.
(c) Procedure when coal has been removed.--If a well is
drilled at a location where coal has been removed from one or
more coal seams, the well shall be drilled and cased to prevent
migration of gas or fluids into the seam from which coal has
been removed, in a manner prescribed by regulation of the
department. The department and the coal operator, owner or
lessee shall be given at least 72 hours' notice prior to
commencement of work protecting the mine.
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(d) Procedure when coal has not been removed.--If a well is
drilled at a location where the coal seam has not been removed,
the well shall be drilled to a depth and of a size sufficient to
permit placement of casing, packers in and vents on the hole at
the points and in the manner prescribed by regulation to exclude
gas or fluids from the coal seam, except gas or fluids found
naturally in the seam itself, and to enable monitoring the
integrity of the production casing.
§ 3218. Protection of water supplies.
(a) General rule.--In addition to the requirements of
subsection (c.1), a 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 and quality for the purposes served by the
supply. The department shall ensure the restored or replaced
water supply meets the applicable water quality standards
consistent with the Safe Drinking Water Act (Public Law 93-523,
21 U.S.C. § 349 and 42 U.S.C. §§ 201 and 300f et seq.), the act
of May 1, 1984 (P.L.206, No.43), known as the Pennsylvania Safe
Drinking Water Act, or predrilling or alteration water quantity
standards as determined by the department. The Environmental
Quality Board shall promulgate regulations necessary to meet the
requirements of this subsection.
(b) Pollution or diminution of water supply.--A landowner or
water purveyor suffering pollution or diminution of a water
supply as a result of the drilling, alteration or operation of
an oil or gas well may so notify the department and request that
an investigation be conducted. Within ten days of notification,
the department shall investigate the claim and make a
determination within 45 days following notification. If the
20110HB1950PN2837 - 203 -
department finds that the pollution or diminution was caused by
drilling, alteration or operation activities or if it presumes
the well operator responsible for pollution under subsection
(c), the department shall issue orders to the well operator
necessary to assure compliance with subsection (a), including
orders requiring temporary replacement of a water supply where
it is determined that pollution or diminution may be of limited
duration.
(b.1) Toll-free telephone number.--The department shall
establish a single Statewide toll-free telephone number that
persons may use to report cases of water contamination. The
Statewide toll-free telephone number shall be provided in a
conspicuous manner in the notification required under section
3211(b.1) (relating to well permits) , shall be posted in a
conspicuous place at the drilling site and shall be posted on
the department's Internet website.
(b.2) Responses to calls.--The department shall develop
appropriate administrative responses to calls received on the
Statewide toll-free telephone number for water contamination.
(c) Presumption.--Unless rebutted by a defense established
in subsection (d), it shall be presumed that a well operator is
responsible for pollution of a water supply that is within 1,000
feet, or in the case of an unconventional well within 3,000 feet
from the vertical well bore, of an oil or gas well, if pollution
occurred within six months, or in the case of an unconventional
well within 12 months, after stimulation or alteration of the
unconventional well.
(c.1) Requirement.--If the affected water supply is within
the rebuttable presumption area as provided in subsection (c)
and the rebuttable presumption applies , the operator shall
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provide a temporary water supply if the water user is without a
readily available alternative source of water. The temporary
water supply provided under this subsection shall be adequate in
quantity and quality for the purposes served by the supply.
(d) Defenses.--To rebut the presumption established under
subsection (c), a well operator must affirmatively prove any of
the following:
(1) The pollution existed prior to the drilling,
stimulation or alteration activities as determined by a
predrilling or prealteration survey.
(2) The landowner or water purveyor refused to allow the
operator access to conduct a predrilling or prealteration
survey.
(3) The water supply is not within 1,000 feet, or in the
case of an unconventional well within 3,000 feet, of the
vertical well bore.
(4) The pollution occurred more than six months, or in
the case of an unconventional well more than 12 months after
drilling, stimulation or alteration activities.
(5) The pollution occurred as the result of a cause
other than the drilling, stimulation or alteration activity.
(e) Independent certified laboratory.--An operator electing
to preserve a defense under subsection (d)(1) or (2) shall
retain an independent certified laboratory to conduct a
predrilling or prealteration survey of the water supply. A copy
of survey results shall be submitted to the department and the
landowner or water purveyor in the manner prescribed by the
department.
(f) Other remedies preserved.--Nothing in this section shall
prevent a landowner or water purveyor claiming pollution or
20110HB1950PN2837 - 205 -
diminution of a water supply from seeking any other remedy at
law or in equity.
(g) Facility operation qualifications.--The department shall
ensure that a facility which seeks a National Pollutant
Discharge Elimination System permit for the purposes of treating
and discharging wastewater originating from oil and gas
activities into waters of this Commonwealth is operated by a
competent and qualified individual.
§ 3218.1. Containment for unconventional wells.
(a) Sites.--Unconventional well pad sites shall be designed
and constructed to prevent spills to the ground surface or
spills off the well pad area. Containment practices shall meet
all of the following:
(1) Be instituted on the pad during both drilling and
hydraulic fracturing operations.
(2) Be sufficiently impervious and able to contain
spilled material or waste until it can be removed or treated.
(3) Be compatible with the waste material or waste
stored or used within the containment.
(b) Plan.--The applicant shall submit a plan to the
department describing the containment practices to be utilized
and the area of the well pad where containment systems will be
employed. The plan shall include a description of the equipment
to be kept onsite during drilling and hydraulic fracturing
operations to prevent a spill from leaving the well pad.
(c) Materials stored.--Containment systems shall be used
wherever any of the following are stored:
(1) Drilling mud.
(2) Hydraulic oil.
(3) Diesel fuel.
20110HB1950PN2837 - 206 -
(4) Drilling mud additives.
(5) Hydraulic fracturing additives.
(6) Hydraulic fracturing flowback.
(d) Capacity.--Areas where any additives, chemicals, oils or
fuels are to be stored must have sufficient containment capacity
to hold the volume of the largest container stored in the area
plus 10% to allow for precipitation, unless the container is
equipped with individual secondary containment.
§ 3218.2. Transportation records regarding wastewater fluids.
(a) Requirements.--A well operator that transports
wastewater fluids shall do all of the following:
(1) Maintain records for five years, in accordance with
regulations under subsection (b) and on a form approved by
the department, of the amount and destination of the fluids
transported.
(2) Make the records available to the department upon
request.
(b) Recordkeeping.--Recordkeeping requirements shall be
determined by the department and shall include the following:
(1) The number of gallons of wastewater fluids produced
in the drilling, stimulation or alteration of a well.
(2) Upon completion of the well, the name of the person
or company that transported the wastewater fluids to a
disposal site or to a location other than the well site.
(3) Each location where wastewater fluids were disposed
of or transported and the volumes that were disposed of at
the location.
(4) The method of disposal.
§ 3218.3. Emergency response information.
The Pennsylvania Emergency Management Agency and the
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department shall require the operators of all unconventional
wells to do all of the following:
(1) Adopt a unique GPS coordinate address for each
unconventional well at both the access road entrance and well
pad site.
(2) Register that address with the agency, the
department and the county emergency management organization
within the county where the unconventional well is located.
(3) Require the development of an emergency response
plan and file that plan with the agency, the department and
the county emergency management organization with
jurisdiction over the unconventional well. The county shall
disseminate the GPS address and emergency response plan to
the local emergency management organization in which the
unconventional well is located.
(4) Post a reflective sign at the entrance to each well
site with the specific address of that site, the coordinates
for the site, the emergency contact number for the operator
and any other information as the agency or the department
deems necessary.
§ 3218.4. Notification to public drinking water systems.
Upon receiving notification of spill the department shall,
after investigating the incident, notify any public drinking
water facility that could be affected by the event that the
event occurred. The notification shall contain a brief
description of the event and any expected impact on water
quality.
§ 3218.5. Corrosion control requirements.
The following shall apply to corrosion control requirements:
(1) All buried metallic structures associated with gas
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wells including pipelines, well casings and underground tanks
must have corrosion protection measures designed to protect
the pipeline installed and placed in operation in accordance
with regulations promulgated by the Environmental Quality
Board.
(2) Permanent aboveground and underground tanks must
comply with the applicable corrosion control requirements in
the department's regulations.
(3) The corrosion control procedures under paragraphs
(1) and (2) must be carried out by or under the direction of
a person qualified in corrosion methods.
(4) An operator of a new, replaced, relocated or
otherwise changed line must be in compliance with the
applicable requirements of this section by the date the line
goes into service.
§ 3218.6. Gathering lines.
(a) Requirement.--Owners and operators of gathering lines
shall comply with section 2(5)(i.1) of the act of December 10,
1974 (P.L.852, No.287), referred to as the Underground Utility
Line Protection Law.
(b) Definition.--As used in this section, the term
"gathering lines" means a pipeline used to transport natural gas
from a production facility to a transmission line or main.
§ 3219. Use of safety devices.
Any person engaged in drilling an oil or gas well shall equip
it with casings of sufficient strength, and other safety devices
as are necessary, in the manner prescribed by regulation of the
department, and shall use every effort and endeavor effectively
to prevent blowouts, explosions and fires.
§ 3220. Plugging requirements.
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(a) General rule.--Upon abandoning a well, the owner or
operator shall plug it in the manner prescribed by regulation of
the department to stop vertical flow of fluids or gas within the
well bore, unless the department has granted inactive status for
the well or it has been approved by the department as an orphan
well. If the department determines that a prior owner or
operator received economic benefit, other than economic benefit
derived only as a landowner or from a royalty interest, after
April 18, 1979, from an orphan well or an unregistered well, the
owner or operator shall be responsible for plugging the well. In
the case of a gas well penetrating a workable coal seam which
was drilled prior to January 30, 1956, or which was permitted
after that date but not plugged in accordance with this chapter,
if the owner or operator or a coal operator or an agent proposes
to plug the well to allow mining through of it, the gas well
shall be cleaned to a depth of at least 200 feet below the coal
seam through which mining is proposed and, unless impracticable,
to a point 200 feet below the deepest mineable coal seam. The
gas well shall be plugged from that depth in accordance with
section 13 of the act of December 18, 1984 (P.L.1069, No.214),
known as the Coal and Gas Resource Coordination Act, and the
regulations of the department.
(b) Areas underlain by coal.--Prior to the plugging and
abandonment of a well in an area underlain by a workable coal
seam, the well operator or owner shall notify the department and
the coal operator, lessee or owner and submit a plat, on a form
to be furnished by the department, showing the location of the
well and fixing the date and time plugging will commence, which
shall be not less than three working days, nor more than 30
days, after the notice is received, to permit representatives of
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the persons notified to be present at the plugging. Notice and
the right to be present may be waived by the department and the
coal operator, lessee or owner, but waiver by coal operator,
lessee or owner shall be in writing and a copy shall be attached
to the notice of abandonment filed with the department under
this section. Whether or not representatives attend, if the well
operator has fully complied with this section, the well operator
may proceed, at the time fixed, to plug the well in the manner
prescribed by regulation of the department. When plugging has
been completed, a certificate shall be prepared and signed, on a
form to be furnished by the department, by two experienced and
qualified people who participated in the work setting forth the
time and manner in which the well was plugged. One copy of the
certificate shall be mailed to each coal operator, lessee or
owner to whom notice was given by certified mail and another
shall be mailed to the department.
(c) Abandoned wells.--Prior to abandonment of a well, except
an uncompleted bore hole plugged immediately upon suspension of
drilling in an area not underlain by a workable coal seam, the
well operator shall notify the department of the intention to
plug and abandon the well and submit a plat, on a form to be
furnished by the department, showing the location of the well
and fixing the date and time at which plugging will commence,
which shall be not less than three working days, nor more than
30 days, after the notice is received, to permit a department
representative to be present at the plugging. The notice or
waiting period may be verbally waived by the department. In
noncoal areas where more than one well has been drilled as part
of the same development project and the wells are now to be
plugged, the department shall be given three working days'
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notice prior to plugging the first well of the project, subject
to waiver of notice described in subsection (b). In the plugging
of subsequent wells, no additional notice shall be required if
plugging on the project is continuous. If plugging of subsequent
wells is delayed for any reason, notice shall be given to the
department of continuation of the project. Whether or not a
representative attends, if the well operator has fully complied
with this section, the well operator may proceed, at the time
fixed, to plug the well in the manner prescribed by regulation
of the department. When plugging has been completed, a
certificate shall be prepared, on a form to be furnished by the
department, by two experienced and qualified people who
participated in the work setting forth the time and manner in
which the well was plugged. A copy of the certificate shall be
mailed to the department.
(d) Wells abandoned upon completion of drilling.--If a well
is to be abandoned immediately after completion of drilling, the
well operator shall give at least 24 hours' notice by telephone,
confirmed by certified mail, to the department and to the coal
operator, lessee or owner, if any, fixing the date and time when
plugging will commence. Notice and the right to be present may
be waived by the department and the coal operator, lessee or
owner, if any. Whether or not representatives of the department
or coal operator, lessee or owner, if any, attend, if the well
operator has fully complied with the requirements of this
section, the well operator may proceed, at the time fixed, to
plug the well in the manner provided by regulation of the
department. The well operator shall prepare the certificate of
plugging and mail copies of the same as provided in subsection
(b).
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(e) Orphan wells.--If a well is an orphan well or abandoned
without plugging, or if a well is in operation but not
registered under section 3213 (relating to well registration and
identification), the department may enter upon the well site and
plug the well and sell equipment, casing and pipe at the site
which may have been used in production of the well in order to
recover the costs of plugging. The department shall make an
effort to determine ownership of a well which is in operation
but has not been registered and provide written notice to the
owner of pending action under this subsection. If the department
cannot determine ownership within 30 days, it may proceed under
this subsection. Costs of plugging shall have priority over all
liens on equipment, casing and pipe, and the sale shall be free
and clear of those liens to the extent that the cost of plugging
exceeds the sale price. If the amount obtained for casing and
pipe salvaged at the site is inadequate to pay for plugging, the
owner or operator of the abandoned or unregistered well shall be
liable for the additional costs.
(f) Definition.--For purposes of this section, the term
"owner" does not include the owner or possessor of surface real
property, on which an abandoned well is located, who did not
participate or incur costs in and had no right of control over
the drilling or extraction operation of the abandoned well.
§ 3221. Alternative methods.
A well operator may request permission to use a method or
material other than those required by this chapter for casing,
plugging or equipping a well in an application to the department
which describes the proposed alternative in reasonable detail
and indicates the manner in which it will accomplish the goals
of this chapter. Notice of filing of the application shall be
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given by the well operator by certified mail to any affected
coal operators, who may, within 15 days after the notice, file
objections to the proposed alternative method or material. If no
timely objections are filed or raised by the department, the
department shall determine whether to allow use of the proposed
alternative method or material.
§ 3222. Well reporting requirements.
(a) General rule.--Except as provided in subsection (a.1),
each well operator shall file with the department, on a form
provided by the department, an annual report specifying the
amount of production, on the most well-specific basis available,
along with the status of each well, except that in subsequent
years only changes in status must be reported. The Commonwealth
may utilize reported information in enforcement proceedings, in
making designations or determinations under section 1927-A of
the act of April 9, 1929 (P.L.177, No.175), known as The
Administrative Code of 1929, or in aggregate form for
statistical purposes.
(a.1) Unconventional wells.--Each operator of a well which
produces gas from an unconventional well shall file with the
department, on a form provided by the department, a semiannual
report specifying the amount of production on the most well-
specific basis available. The initial report under this
subsection shall be filed on or before August 15, 2010, and
shall include production data from the preceding calendar year
and specify the status of each well. In subsequent reports, only
changes in status must be reported. Subsequent semiannual
reports shall be filed with the department on or before February
15 and August 15 of each year and shall include production data
from the preceding reporting period. The Commonwealth may
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utilize reported information in enforcement proceedings, in
making designations or determinations under section 1927-A of
The Administrative Code of 1929 or in aggregate form for
statistical purposes. Beginning November 1, 2010, the department
shall make the reports available on its publicly accessible
Internet website. Costs incurred by the department to comply
with the requirements of this subsection shall be paid out of
the fees collected under section 3211(d) (relating to well
permits).
(b) Collection of data.--Well operators shall maintain a
record of each well drilled or altered. A record containing the
information required by the department, including the
information required under subsection (b.1), shall be filed
within 30 days after stimulation of the well. A completion
report containing any additional required information shall be
filed within 30 days after the stimulation of the well and shall
be kept on file by the department. Upon request of the
department, the well operator shall, within 90 days of
completion or recompletion of drilling, submit a copy of any
electrical, radioactive or other standard industry logs which
have been run and, upon request by the department within one
year, 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 information
shall be required unless the well operator had it compiled in
the ordinary course of business, and interpretation of data is
not required to be filed.
(b.1) Report contents.--The completion report shall contain
the operator's stimulation record which shall include the
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following:
(1) A descriptive list of the chemical additives in the
stimulation fluids, including any acid, biocide, breaker,
brine, corrosion inhibitor, crosslinker, demulsifier,
friction reducer, get, iron control, oxygen scavenger, pH
adjusting agent, proppant, scale inhibitor and surfactant.
(2) The percent by volume of each chemical additive in
the stimulation fluid.
(3) A list of the chemicals in the material safety data
sheets, by name and chemical abstract service number,
corresponding to the appropriate chemical additive.
(4) The percent by volume of each chemical list in the
material safety data sheets.
(5) The total volume of the base fluid.
(6) A list of water sources used under the approved
water management plan and the volume of water used.
(7) The pump rates and pressure used in the well.
(8) The total volume of recycled water used.
(b.2) Trade secret or confidential proprietary
information.--When an operator submits its stimulation record
under subsection (b.1), it may designate specific portions of
the stimulation record as containing a trade secret or
confidential proprietary information. The department shall
prevent disclosure of the designated confidential information to
the extent permitted by the act of February 14, 2008 (P.L.6,
No.3), known as the Right-to-Know Law, or other Federal or State
law.
(b.3) List of the chemical constituents.--In addition to
submitting a stimulation record to the department under
subsection (b.1) and subject to the protections afforded for
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trade secrets and confidential proprietary information under the
Right-to-Know Law, the operator shall arrange to provide a list
of the chemical constituents of the chemical additives used to
hydraulically fracture a well, by name and chemical abstract
service number, unless the additive does not have a number, to
the department upon written request of the department.
(c) Drill cuttings and core samples.--Upon notification by
the department prior to commencement of drilling, the well
operator shall collect any additional data specified by the
department, including representative drill cuttings and samples
from cores taken and any other geological information that the
operator reasonably can compile. Interpretation of the data is
not required to be filed.
(d) Retention of data.--Data required under subsection (b)
and drill cuttings required under subsection (c) shall be
retained by the well operator and filed with the department no
more than three years after completion of the well. Upon
request, the department shall extend the deadline up to five
years from the date of completion of the well. The department
shall be entitled to utilize information collected under this
subsection in enforcement proceedings, in making designations or
determinations under section 1927-A of The Administrative Code
of 1929 and in aggregate form for statistical purposes.
§ 3223. Notification and effect of well transfer.
The owner or operator of a well shall notify the department
in writing within 30 days, in a form directed by regulation, of
sale, assignment, transfer, conveyance or exchange by or to the
owner of the well. A transfer shall not relieve the well owner
or operator of an obligation accrued under this chapter, nor
shall it relieve the owner or operator of an obligation to plug
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the well until the requirements of section 3225 (relating to
bonding) have been met, at which time the transferring owner or
operator shall be relieved from all obligations under this
chapter, including the obligation to plug the well.
§ 3224. Coal operator responsibilities.
(a) General rule.--At any time prior to removing coal or
other underground materials from, or extending the workings in,
a coal mine within 500 feet of an oil or gas well of which the
coal operator has knowledge, or within 500 feet of an approved
well location of which the coal operator has knowledge, the coal
operator, by certified mail, shall forward to or file with the
well operator and the department a copy of the relevant part of
all maps and plans which it is presently required by law to
prepare and file with the department, showing the pillar which
the coal operator proposes to leave in place around each oil or
gas well in the projected workings. Thereafter, the coal
operator may proceed with mining operations in the manner
projected on the maps and plans, but the operator may not remove
coal or cut a passageway within 150 feet of the well or approved
well location without written approval under this section. If,
in the opinion of the well operator or the department, the plan
indicates that the proposed pillar is inadequate to protect
either the integrity of the well or public health and safety,
the affected well operator shall attempt to reach an agreement
with the coal operator on a suitable pillar, subject to approval
of the department. Upon failure to agree, the well operator may,
within ten days after receipt of the proposed plan under this
section, file objections under section 3251 (relating to
conferences), indicating the size of the pillar to be left as to
each well. If objections are not timely filed and the department
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has none, the department shall grant approval, reciting that
maps and plans have been filed, no objections have been made
thereto and the pillar proposed to be left for each well is
approved in the manner as projected.
(b) Objections.--If an objection is filed by the well
operator or raised by the department, the department shall order
that a conference be held under section 3251 within ten days of
the filing of objections. At the conference, the coal operator
and the person who has objected shall attempt to agree on a
proposed plan, showing the pillar to be left around each well,
which will satisfy the objections and receive department
approval. If an agreement is reached, the department shall grant
approval to the coal operator, reciting that a plan has been
filed and the pillar to be left for each well is approved
pursuant to the agreement. If an agreement is not reached on a
plan showing the pillar to be left with respect to a well, the
department, by appropriate order, shall determine the pillar to
be left with respect to the well. In a proceeding under this
section, the department shall follow as nearly as is possible
the original plan filed by the coal operator. The department
shall not require the coal operator to leave a pillar in excess
of 100 feet in radius, except that the department may require a
pillar of up to 150 feet in radius if the existence of unusual
conditions is established. Pillars determined by the department
shall be shown on maps or plans on file with the department as
provided in subsection (a) and the department shall approve the
pillar to be left for each well.
(c) Pillars of reduced size.--Application may be made at any
time to the department by the coal operator to leave a pillar of
a size smaller than shown on the plan approved or determined by
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the department under this section. If an application is filed,
the department shall:
(1) follow the appropriate procedure under subsection
(a) or (b);
(2) by appropriate order, determine a plan involving a
pillar of a smaller size as to any well covered by the
application; and
(3) grant approval for the pillar to be left with
respect to each well.
(d) Violation.--No coal operator, without written approval
of the department after notice and opportunity for a hearing
under this section, shall remove coal or cut a passageway so as
to leave a pillar of smaller size, with respect to an oil or gas
well, than that approved by the department under this chapter.
(e) Limitation.--With regard to a coal pillar required by
law to be left around a well drilled prior to April 18, 1985,
nothing in this chapter shall be construed to:
(1) require a well operator to pay for the coal pillar;
(2) affect a right which a coal operator may have had
prior to April 18, 1985, to obtain payment for the coal
pillar; or
(3) affect a duty or right which a storage operator or
landowner may have had prior to April 18, 1985, to pay or not
pay for the coal pillar.
(f) Mining through plugged wells.--A coal operator who
intends to mine through a plugged oil or gas well or otherwise
completely remove any pillar from around that well shall file a
plan under subsection (a) which shall be subject to all of the
provisions of this section. No coal operator may mine through a
plugged oil or gas well of which he has knowledge until written
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approval has been granted by the department in accordance with
this section. The Bureau of Deep Mine Safety in the department
shall have the authority to establish conditions under which the
department may approve a coal operator's plan to mine through a
plugged oil or gas well.
§ 3225. Bonding.
(a) General rule.--The following shall apply:
(1) Except as provided in subsection (d), upon filing an
application for a well permit, and before continuing to
operate an oil or gas well, the owner or operator of the well
shall file with the department a bond covering the well and
well site on a form to be prescribed and furnished by the
department. A bond filed with an application for a well
permit shall be payable to the Commonwealth and conditioned
upon the operator's faithful performance of all drilling,
water supply replacement, restoration and plugging
requirements of this chapter. A bond for a well in existence
on April 18, 1985, shall be payable to the Commonwealth and
conditioned upon the operator's faithful performance of all
water supply replacement, restoration and plugging
requirements of this chapter. The amount of the bond required
shall be in the following amounts and shall be adjusted by
the Environmental Quality Board every three years to reflect
the projected costs to the Commonwealth of plugging the well:
(i) For a well which is less than 6,000 feet in
depth and which is permitted prior to the effective date
of this section, $2,500. The operator shall not be
required to provide a bond under this paragraph which
exceeds $25,000. The bond amount may be adjusted by the
Environmental Quality Board every two years to reflect
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the projected costs to the Commonwealth of performing
well plugging.
(ii) For a well which is less than 6,000 feet in
bore length and which is permitted after the effective
date of this section, $3,500. The operator shall not be
required to provide a bond under this paragraph which
exceeds $40,000.
(iii) For wells with a total well bore length
greater than 6,000 feet:
(A) For operating up to 25 wells, $10,000 per
well, provided the operator may not be required to
provide a bond under this section exceeding
$140,000.
(B) For operating 26 to 50 wells, $140,000 plus
$10,000 per well for each well in excess of 25 wells,
provided the operator may not be required to provide
a bond under this section exceeding $290,000.
(C) For operating 51 to 150 wells, $290,000
plus $10,000 per well for each well in excess of 50
wells, provided the operator may not be required to
provide a bond under this section exceeding
$430,000.
(D) For operating more than 150 wells, $430,000
plus $10,000 per well for each well in excess of 150
wells, provided the operator may not be required to
provide a bond under this section exceeding
$600,000.
(2) In lieu of individual bonds for each well, an owner
or operator may file a blanket bond, for the appropriate
amount as indicated under paragraph (1), on a form prepared
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by the department, covering all of its wells in this
Commonwealth, as enumerated on the bond form.
(3) Liability under the bond shall continue until the
well has been properly plugged in accordance with this
chapter and for a period of one year after filing of the
certificate of plugging with the department. Each bond shall
be executed by the operator and a corporate surety licensed
to do business in this Commonwealth and approved by the
secretary. In lieu of a corporate surety, the operator may
deposit with the department:
(i) cash;
(ii) certificates of deposit or automatically
renewable irrevocable letters of credit, from financial
institutions chartered or authorized to do business in
this Commonwealth and regulated and examined by the
Commonwealth or a Federal agency, which may be terminated
at the end of a term only upon 90 days' prior written
notice by the financial institution to the permittee and
the department;
(iii) negotiable bonds of the United States
Government or the Commonwealth, the Pennsylvania Turnpike
Commission, the State Public School Building Authority or
any municipality within the Commonwealth; or
(iv) United States Treasury Bonds issued at a
discount without a regular schedule of interest payments
to maturity, otherwise known as Zero Coupon Bonds, having
a maturity date of not more than ten years after the date
of purchase and at the maturity date having a value under
paragraph (1). The cash deposit, certificate of deposit,
amount of the irrevocable letter of credit or market
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value of the securities shall be equal at least to the
sum of the bond.
(4) The secretary shall, upon receipt of a deposit of
cash, letters of credit or negotiable bonds, immediately
place the same with the State Treasurer, whose duty it shall
be to receive and hold the same in the name of the
Commonwealth, in trust, for the purpose for which the deposit
is made.
(5) The State Treasurer shall at all times be
responsible for custody and safekeeping of deposits. The
operator making the deposit shall be entitled from time to
time to demand and receive from the State Treasurer, on the
written order of the secretary, the whole or any portion of
collateral deposited, upon depositing with the State
Treasurer, in lieu of that collateral, other collateral of
classes specified in this section having a market value at
least equal to the sum of the bond, and also to demand,
receive and recover the interest and income from the
negotiable bonds as they become due and payable.
(6) If negotiable bonds on deposit under this subsection
mature or are called, the State Treasurer, at the request of
the owner of the bonds, shall convert them into other
negotiable bonds, of classes specified in this section,
designated by the owner.
(7) If notice of intent to terminate a letter of credit
is given, the department shall give the operator 30 days'
written notice to replace the letter of credit with other
acceptable bond guarantees as provided in this section. If
the owner or operator fails to timely replace the letter of
credit, the department shall draw upon and convert the letter
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of credit into cash and hold it as a collateral bond
guarantee.
(b) Release.--No bond shall be fully released until the
requirements of subsection (a) and section 3223 (relating to
notification and effect of well transfer) have been fully met.
Upon release of bonds and collateral under this section, the
State Treasurer shall immediately return to the owner the
specified amount of cash or securities.
(c) Noncompliance.--If a well owner or operator fails or
refuses to comply with subsection (a), regulations promulgated
under this chapter or conditions of a permit relating to this
chapter, the department may declare the bond forfeited and shall
certify the same to the Attorney General, who shall proceed to
enforce and collect the full amount of the bond and, if the well
owner or operator has deposited cash or securities as collateral
in lieu of a corporate surety, the department shall declare the
collateral forfeited and direct the State Treasurer to pay the
full amount of the funds into the Well Plugging Restricted
Revenue Account or to sell the security to the extent forfeited
and pay the proceeds into the Well Plugging Restricted Revenue
Account. If a corporate surety or financial institution fails to
pay a forfeited bond promptly and in full, the corporate surety
or financial institution shall be disqualified from writing
further bonds under this chapter or any other environmental law
administered by the department. A person aggrieved by reason of
forfeiting the bond or converting collateral, as provided in
this section, shall have a right to appeal to the Environmental
Hearing Board in the manner provided by law. Upon forfeiture of
a blanket bond for a violation occurring at one or more well
sites, the person whose bond is forfeited shall, within ten days
20110HB1950PN2837 - 225 -
of the forfeiture, submit a replacement bond to cover all other
wells of which the person is an owner or operator. Failure to
submit the replacement bond constitutes a violation of this
section as to each of the wells owned or operated by the person.
(d) Alternatives to certain bonds.--The following shall
apply:
(1) An operator of not more than 200 wells that cannot
obtain a bond for a well drilled prior to April 18, 1985, as
required under subsection (a), due to inability to
demonstrate sufficient financial resources may, in lieu of
the bond:
(i) Submit to the department a fee in the amount of
$50 per well, a blanket fee of $500 for ten to 20 wells
or a blanket fee of $1,000 for more than 20 wells, which
shall be a nonrefundable fee paid each year that the
operator has not filed a bond with the department. All
fees collected in lieu of a bond under this subsection
shall be used for the purposes authorized by this
chapter. The Environmental Quality Board shall have the
power, by regulation, to increase the amount of the fees
established under this subsection.
(ii) Make phased deposits of collateral to fully
collateralize the bond, subject to the following:
(A) Payment shall be based on the number of
wells owned or operated. The operator shall make an
initial deposit and make annual deposits in
accordance with the schedule in clause (B). Interest
accumulated by the collateral shall become a part of
the bond until the collateral plus accumulated
interest equals the amount of the required bond. The
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collateral shall be deposited, in trust, with the
State Treasurer as provided in this subsection or
with a bank selected by the department which shall
act as trustee for the benefit of the Commonwealth to
guarantee the operator's compliance with the
drilling, water supply replacement, restoration and
plugging requirements of this chapter. The operator
shall be required to pay all costs of the trust.
(B) An operator of up to ten existing wells that
does not intend to operate additional wells shall
deposit $250 per well and shall, thereafter, annually
deposit $50 per well until the obligations of this
section are fully met. An operator of 11 to 25 wells
or an operator of up to ten wells that applies for
one or more permits for additional wells shall
deposit $2,000 and shall, thereafter, annually
deposit $1,150 plus $150 for each additional well to
be permitted that year until the obligations of this
section are fully met. An operator of 26 to 50 wells
shall deposit $3,000 and shall, thereafter, annually
deposit $1,300 plus $400 for each additional well to
be permitted that year until the obligations of this
section are fully met. An operator of 51 to 100 wells
shall deposit $4,000 and shall, thereafter, annually
deposit $1,500 plus $400 for each additional well to
be permitted that year until the obligations of this
section are fully met. Operators of 101 to 200 wells
shall deposit $8,000 and shall, thereafter, annually
deposit $1,600 plus $1,000 for each additional well
to be permitted that year until the obligations of
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this section are fully met. Operators of more than
200 wells shall fully bond their wells immediately.
(C) The department shall reduce the amount of
phased collateral payments or the period of time over
which phased collateral payments shall be made on
behalf of owners or operators that, prior to August
3, 1992, have paid a fee in lieu of bond under
subparagraph (i), and that, by August 3, 1993, chose
to enter the phased collateral program under this
subparagraph rather than continue to make payments in
lieu of bond. Payments made prior to August 3, 1992,
in lieu of bond shall not be credited in any other
manner, and the department shall not be required to
refund the fees. The Environmental Quality Board, by
regulation, may change the annual deposits
established under clause (B) if necessary to
accommodate a change in the amount of the bond
required under this section.
(2) An operator may continue to pay a fee in lieu of
bond or make phased deposits of collateral to fully
collateralize the bond so long as the operator does not miss
a payment under this subsection and remains in compliance
with this chapter. If an operator misses a payment under this
subsection, the operator shall :
(i) immediately submit the appropriate bond amount
in full; or
(ii) cease all operations and plug all wells.
(d.1) Individuals.--The following shall apply:
(1) An individual who is unable to obtain a bond to
drill new wells due to inability to demonstrate financial
20110HB1950PN2837 - 228 -
resources may meet the collateral bond requirements of
subsection (a) by making phased deposits of collateral to
fully collateralize the bond. The individual shall be limited
to drilling ten new wells per calendar year and, for each
well to be drilled, deposit $500 and make an annual deposit
of 10% of the remaining bond amount for a period of ten
years. Interest accumulated shall become a part of the bond
until the collateral plus accumulated interest equal the
amount of the required bond. The collateral shall be
deposited in trust with the State Treasurer under 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
chapter. The individual shall pay all costs of the trust.
(2) Individuals may continue to use phased collateral to
obtain permits if they have not missed a payment for a well
drilled under this provision and remain in compliance with
this chapter. If an individual misses a payment, the
individual shall:
(i) immediately submit the appropriate bond amount
in full; or
(ii) cease all operations and plug all wells.
(3) For purposes of this subsection, an "individual"
means a natural person doing business under his own name.
(e) Reservation of remedies.--All remedies for violations
of this chapter, regulations adopted under this chapter and
conditions of permits are expressly preserved. Nothing in this
section shall be construed as an exclusive penalty or remedy for
violations of law. No action taken under this section shall
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waive or impair any other remedy or penalty provided in law.
(f) Change of law.--Owners or operators that have failed to
meet the requirements of this section shall not be required to
make payments under this section on a retroactive basis as a
condition of obtaining a permit under this chapter, nor shall
the failure be deemed a violation of this chapter.
§ 3226. Oil and Gas Technical Advisory Board.
(a) Creation of board.--The Oil and Gas Technical Advisory
Board is created, consisting of the following members, all of
whom shall be chosen by the Governor and shall be residents of
this Commonwealth:
(1) Three individuals, each of whom shall be:
(i) a petroleum engineer;
(ii) a petroleum geologist; or
(iii) an experienced driller representative of the
oil and gas industry with three years of experience in
this Commonwealth.
(2) One mining engineer from the coal industry with
three years of experience in this Commonwealth.
(3) One geologist or petroleum engineer with three years
of experience in this Commonwealth, who shall be chosen from
a list of three names submitted by the Citizens Advisory
Council to the Governor and who shall sit as a representative
of the public interest.
(b) Reimbursement.--Board members shall not receive a salary
but shall be reimbursed for all necessary expenses incurred in
the performance of their duties.
(c) Majority vote.--All actions of the board shall be by
majority vote. The board shall meet as called by the secretary,
but not less than semiannually, to carry out its duties under
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this chapter. The board shall select a chairman and other
officers deemed appropriate.
(d) Consultation.--The department shall consult with the
board in the formulation, drafting and presentation stages of
all regulations of a technical nature promulgated under this
chapter. The board shall be given a reasonable opportunity to
review and comment on all regulations of a technical nature
prior to submission to the Environmental Quality Board for
initial consideration. The written report of the board shall be
presented to the Environmental Quality Board with any regulatory
proposal. The chairman of the board shall be invited to
participate in the presentation of all regulations of a
technical nature before the Environmental Quality Board to the
extent allowed by procedures of the Environmental Quality Board.
Nothing herein shall preclude any member of the board from
filing a petition for rulemaking with the Environmental Quality
Board in accordance with procedures established by the
Environmental Quality Board.
SUBCHAPTER C
UNDERGROUND GAS STORAGE
Sec.
3231. Reporting requirements for gas storage operations.
3232. Reporting requirements for coal mining operations.
3233. General gas storage reservoir operations.
3234. Gas storage reservoir operations in coal areas.
3235. Inspection of facilities and records.
3236. Reliance on maps and burden of proof.
3237. Exemptions and prohibitions.
§ 3231. Reporting requirements for gas storage operations.
(a) General rule.--The following shall apply:
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(1) A person injecting into or storing gas in a storage
reservoir underlying or within 3,000 linear feet of a coal
mine operating in a coal seam that extends over the storage
reservoir or reservoir protective area shall, within 60 days,
file with the department a copy of a map and certain data in
the form and manner provided in this subsection or as
otherwise prescribed by regulation of the department.
(2) A person injecting gas into or storing gas in a
storage reservoir which is not under or within 3,000 linear
feet of, but less than 10,000 linear feet from, a coal mine
operating in a coal seam that extends over the storage
reservoir or reservoir protective area shall file the map and
data within 60 days or a longer period set by departmental
regulation.
(3) A person proposing to inject or store gas in a
storage reservoir located as defined in paragraph (1) or (2)
shall file the appropriate required map and data with the
department not less than six months prior to starting the
actual injection or storage.
(4) A map required by this subsection shall be prepared
by a competent engineer or geologist, showing:
(i) the stratum in which the existing or proposed
storage reservoir is or is proposed to be located;
(ii) the geographic location of the outside
boundaries of the storage reservoir and reservoir
protective area;
(iii) the location of all known oil or gas wells in
the reservoir or within 3,000 linear feet thereof which
have been drilled into or through the storage stratum,
indicating which have been or are to be cleaned out and
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plugged or reconditioned for storage along with the
proposed location of all additional wells which are to be
drilled within the storage reservoir or within 3,000
linear feet thereof.
(5) The following, if available, shall be furnished for
all known oil or gas wells which have been drilled into or
through the storage stratum within the storage reservoir or
within 3,000 linear feet of the storage reservoir:
(i) Name of the operator.
(ii) Date drilled.
(iii) Total depth.
(iv) Depth of production if the well was productive
of oil or gas.
(v) Initial rock pressure and volume.
(vi) Depths at which all coal seams were
encountered.
(vii) A copy of the driller's log or other similar
information.
(5.1) At the time of the filing of the maps and data, a
statement shall be filed:
(i) detailing efforts made to determine that the
wells shown are accurately located on the map;
(ii) affirming that the wells shown represent, to
the best of the operator's knowledge, all oil or gas
wells which have ever been drilled into or below the
storage stratum within the proposed storage reservoir or
within the reservoir protective area;
(iii) stating whether the initial injection is for
testing purposes;
(iv) stating the maximum pressure at which injection
20110HB1950PN2837 - 233 -
and storage of gas is contemplated; and
(v) providing a detailed explanation of the methods
to be used or which previously have been used in
drilling, cleaning out, reconditioning and plugging wells
in the storage reservoir or within the reservoir
protective area.
(6) The map and data required to be filed under
paragraphs (5) and (5.1) shall be amended or supplemented
semiannually if material changes occur. The department may
require a storage operator to amend or supplement the map or
data at more frequent intervals if material changes have
occurred justifying the earlier filing.
(b) Other reporting requirements.--A person who is injecting
gas into or storing gas in a storage reservoir not at the time
subject to subsection (a), by a process other than that of
secondary recovery or gas recycling, shall, within 60 days, or a
longer period set by departmental regulations, file maps and
data required by departmental regulation and as follows:
(1) A person who, after April 18, 1985, proposes to
inject or store gas in a storage reservoir in an area not
covered by subsection (a) by a process other than that of
secondary recovery or gas recycling shall file the required
map and data with the department not less than six months
prior to the starting of actual injection or storage.
(2) The map shall be prepared by a competent engineer or
competent geologist and show:
(i) the stratum in which the existing or proposed
storage reservoir is or is to be located;
(ii) the geographic location of the outside
boundaries of the storage reservoir; and
20110HB1950PN2837 - 234 -
(iii) the location of all known oil or gas wells
within the reservoir, or within 3,000 linear feet
thereof, which have been drilled into or through the
storage stratum, indicating which have been or are to be
cleaned out and plugged or reconditioned for storage and
the proposed location of all additional wells which are
to be drilled within the storage reservoir or within
3,000 linear feet thereof.
(3) The following, if available, shall be furnished for
all known oil or gas wells which have been drilled into or
through the storage stratum within the storage reservoir or
within 3,000 linear feet of the storage reservoir:
(i) Name of the operator.
(ii) Date drilled.
(iii) Total depth.
(iv) Depth of production if the well was productive
of oil or gas.
(v) Initial rock pressure and volume.
(vi) A copy of the driller's log or other similar
information.
(3.1) At the time of the filing of the maps and data, a
statement shall be filed:
(i) detailing efforts made to determine that the
wells shown are accurately located on the map;
(ii) affirming that the wells shown represent, to
the best of the operator's knowledge, all oil or gas
wells which have ever been drilled into or below the
storage stratum within the proposed storage reservoir;
(iii) stating whether the initial injection is for
testing purposes;
20110HB1950PN2837 - 235 -
(iv) stating the maximum pressure at which injection
and storage of gas is contemplated; and
(v) providing a detailed explanation of the methods
to be used or which previously have been used in
drilling, cleaning out, reconditioning and plugging wells
in the storage reservoir.
(4) The map and data required to be filed under
paragraphs (3) and (3.1) shall be amended or supplemented
semiannually if material changes occur. The department may
require a storage operator to amend or supplement the map or
data at more frequent intervals if material changes have
occurred justifying the earlier filing.
(c) Political subdivisions.--Storage operators shall give
notice to the department of the name of each political
subdivision and county in which the operator maintains and
operates a gas storage reservoir.
(d) Notice to affected persons.--At the time of the filing
of maps and data and the filing of amended or supplemental maps
or data required by this section, the person filing the
information shall give written notice of the filing to all
persons who may be affected under the provisions of this chapter
by the storage reservoir described in the maps or data. Notices
shall contain a description of the boundaries of the storage
reservoir. When a person operating a coal mine or owning an
interest in coal properties which are or may be affected by the
storage reservoir requests, in writing, a copy of any map or
data filed with the department, the copy shall be furnished by
the storage operator.
(e) Outside boundaries.--For purposes of this chapter, the
outside boundaries of a storage reservoir shall be defined by
20110HB1950PN2837 - 236 -
the location of those wells around the periphery of the storage
reservoir which had no gas production when drilled in the
storage stratum. The boundaries shall be originally fixed or
subsequently changed if, based on the number and nature of the
wells and the geological and production knowledge of the storage
stratum, its character, permeability, distribution and operating
experience, it is determined in a conference under section 3251
(relating to conferences) that modifications should be made.
(f) Inapplicability of section.--The requirements of this
section shall not apply to the operator of an underground gas
storage reservoir so long as the reservoir is located more than
10,000 linear feet from an operating coal mine, except that the
storage operator shall give notice to the department of the name
of each political subdivision and county in which the operator
maintains and operates a gas storage reservoir. In political
subdivisions and counties where both gas storage reservoirs and
coal mines are being operated, the department may request the
storage operator to furnish maps showing geographical locations
and outside boundaries of the storage reservoirs. The department
shall keep a record of the information and promptly notify the
coal operator and the storage operator when notified by them
that the coal mine and storage reservoir are within 10,000
linear feet of each other.
§ 3232. Reporting requirements for coal mining operations.
(a) General rule.--A person owning or operating a coal mine
shall file with the department a map prepared and sealed by a
competent individual licensed as a professional engineer or
professional land surveyor under the provisions of the act of
May 23, 1945 (P.L.913, No.367), known as the Engineer, Land
Surveyor and Geologist Registration Law, showing the outside
20110HB1950PN2837 - 237 -
coal boundaries of the operating coal mine, the existing
workings and exhausted areas and the relationship of the
boundaries to identifiable surface properties and landmarks. A
person owning or operating an operating coal mine which has been
penetrated by a well shall furnish a mine map to the department
each year indicating the excavations for the preceding year and
the projections for the ensuing year. The map required by this
subsection shall be furnished to a person storing or
contemplating the storage of gas in the vicinity of operating
coal mines shall, upon written request, by the coal operator,
and the person and the department shall thereafter be informed
of any boundary changes at the time the changes occur. The
department shall keep a record of the information and promptly
notify the coal operator and storage operator when notified by
them that the coal mine and the storage reservoir are within
10,000 linear feet of each other.
(b) Mines near certain reservoirs.--A person owning or
operating any coal mine which is or which comes within 10,000
linear feet of a storage reservoir and where the coal seam being
operated extends over the storage reservoir or reservoir
protective area shall, within 45 days after receiving notice
from the storage operator of that fact, file with the department
and furnish to the person operating the storage reservoir a map
in the form required by subsection (a) showing, in addition to
the requirements of subsection (a), existing and projected
excavations and workings of the operating coal mine for the
ensuing 18-month period and the location of oil or gas wells of
which the coal operator has knowledge. The person owning or
operating the coal mine shall, each six months thereafter, file
with the department and furnish to the person operating the
20110HB1950PN2837 - 238 -
storage reservoir a revised map showing any additional
excavations and workings, together with the projected
excavations and workings for the then ensuing 18-month period,
which may be within 10,000 linear feet of the storage reservoir.
The department may require a coal operator to file revised maps
at more frequent intervals if material changes have occurred
justifying earlier filing. The person owning or operating the
coal mine shall also file with the department and furnish the
person operating the reservoir prompt notice of any wells which
have been cut into, together with all available pertinent
information.
(c) Mines near gas storage reservoirs.--A person owning or
operating a coal mine who has knowledge that it overlies or is
within 2,000 linear feet of a gas storage reservoir shall,
within 30 days, notify the department and the storage operator
of that fact.
(d) Mines projected to be near storage reservoirs.--When a
person owning or operating a coal mine expects that, within the
ensuing nine-month period, the coal mine will be extended to a
point which will be within 2,000 linear feet of any storage
reservoir, the person shall notify the department and storage
operator in writing of that fact.
(e) New mines.--A person intending to establish or
reestablish an operating coal mine which will be over a storage
reservoir or within 2,000 linear feet of a storage reservoir or
may within nine months thereafter be expected to be within 2,000
linear feet of a storage reservoir shall immediately notify the
department and storage operator in writing. Notice shall include
the date on which the person intends to establish or reestablish
the operating coal mine.
20110HB1950PN2837 - 239 -
(f) Misdemeanor.--A person who serves notice as required by
this subsection of an intention to establish or reestablish an
operating coal mine, without intending in good faith to
establish or reestablish the mine, is liable for continuing
damages to a storage operator injured by the improper notice and
commits a misdemeanor subject to the penalties of section 3255
(relating to penalties).
§ 3233. General gas storage reservoir operations.
(a) General rule.--A person who operates or proposes to
operate a storage reservoir, except one filled by the secondary
recovery or gas recycling process, shall:
(1) Use every known method which is reasonable under the
circumstances for discovering and locating all wells which
have or may have been drilled into or through the storage
reservoir.
(2) Plug or recondition, as provided in departmental
regulations, all known wells drilled into or through the
storage reservoir, except to the extent otherwise provided in
subsections (b) and (c).
(b) Wells to be plugged.--To comply with subsection (a),
wells which are to be plugged shall be plugged in the manner
specified in section 3220 (relating to plugging requirements).
(b.1) Wells plugged prior to enactment of section.--If a
well located in the storage reservoir area has been plugged
prior to April 18, 1985, and on the basis of data, information
and other evidence submitted to the department, it is determined
that the plugging was done in the manner required by section
3220 or approved as an alternative method under section 3221
(relating to alternative methods) and the plugging is still
sufficiently effective to meet the requirements of this chapter,
20110HB1950PN2837 - 240 -
the obligations under subsection (a) with regard to plugging the
well shall be considered to have been fully satisfied.
(c) Wells to be reconditioned.--The following shall apply:
(1) To comply with subsection (a), wells which are to be
reconditioned shall, unless the department by regulation
specifies a different procedure, be cleaned out from the
surface through the storage horizon, and the producing casing
and casing strings determined not to be in good physical
condition shall be replaced with new casing, using the same
procedure as is applicable to drilling a new well under this
chapter. In the case of wells to be used for gas storage, the
annular space between each string of casing and the annular
space behind the largest diameter casing to the extent
possible shall be filled to the surface with cement or
bentonitic mud or a nonporous material approved by the
department under section 3221. At least 15 days prior to
reconditioning, the storage operator shall give notice to the
department, setting forth in the notice the manner in which
it is planned to recondition the well and any pertinent data
known to the storage operator which will indicate the
condition of the well existing at that time. In addition, the
storage operator shall give the department at least 72 hours'
notice of the time when reconditioning is to begin. If no
objections are raised by the department within ten days, the
storage operator may proceed with reconditioning in
accordance with the plan as submitted. If objections are made
by the department, the department may fix a time and place
for a conference under section 3251 (relating to conferences)
at which the storage operator and department shall endeavor
to agree on a plan to satisfy the objections and meet the
20110HB1950PN2837 - 241 -
requirements of this section. If no agreement is reached, the
department may, by an appropriate order, determine whether
the plan as submitted meets the requirements of this section
or what changes, if any, are required. If, in reconditioning
a well in accordance with the plan, physical conditions are
encountered which justify or necessitate a change in the
plan, the storage operator may request that the plan be
changed. If the request is denied, the department shall fix a
conference under section 3251 and proceed in the same manner
as with original objections. An application may be made in
the manner prescribed by section 3221 for approval of an
alternative method of reconditioning a well. If a well
located within the storage reservoir was reconditioned, or
drilled and equipped, prior to April 18, 1985, the
obligations imposed by subsection (a), as to reconditioning
the well, shall be considered fully satisfied if, on the
basis of the data, information and other evidence submitted
to the department, it is determined that:
(i) The conditioning or previous drilling and
equipping was done in the manner required in this
subsection, in regulations promulgated under this chapter
or in a manner approved as an alternative method in
accordance with section 3221.
(ii) The reconditioning or previous drilling and
equipping is still sufficiently effective to meet the
requirements of this chapter.
(2) If a well requires emergency repairs, this chapter
shall not be construed to require the storage operator to
give any notice required by this subsection before making the
repairs.
20110HB1950PN2837 - 242 -
(d) Exception.--The requirements of subsection (a) shall not
apply to injection of gas into a stratum when the sole purpose
of injection, referred to in this subsection as testing, is to
determine whether the stratum is suitable for storage purposes.
Testing shall be conducted only in compliance with the following
requirements:
(1) The person testing or proposing to test shall comply
with section 3231 (relating to reporting requirements for gas
storage operations) and verify the statement required to be
filed by that section.
(2) The storage operator shall give at least six months'
written notice to the department of the fact that injection
of gas for testing purposes is proposed.
(3) If the department has objections, the department
shall fix a time and place for a conference under section
3251, not more than ten days from the date of notice to the
storage operator, at which time the storage operator and
department shall attempt to resolve the issues presented. If
an agreement cannot be reached, the department may issue an
appropriate order.
(e) Failure to execute lawful order.--In a proceeding under
this chapter, if the department determines that an operator of a
storage reservoir has failed to carry out a lawful order issued
under this chapter, the department may require the operator to
suspend operation of the reservoir and withdraw the gas until
the violation is remedied, in which case the storage operator,
limited by due diligence insofar as existing facilities utilized
to remove gas from the reservoir will permit, shall:
(1) if possible, remove the amount required by the
department to be removed; or
20110HB1950PN2837 - 243 -
(2) in any event, remove the maximum amount which can be
withdrawn in accordance with recognized engineering and
operating procedures.
(f) Duty of storage reservoir operator.--The following shall
apply:
(1) A person owning or operating a storage reservoir
subject to this chapter shall have a duty to:
(i) Maintain all wells drilled into or through the
reservoir in a condition, and operate them in a manner,
sufficient to prevent the escape of gas.
(ii) Operate and maintain the reservoir and its
facilities as prescribed by departmental regulations and
at a pressure which will prevent gas from escaping, but
the pressure shall not exceed the highest rock pressure
found to have existed during the production history of
the reservoir or another high pressure limit approved by
the department after holding a conference under section
3251 based on geological and production knowledge of the
reservoir, its character, permeability distribution and
operating experience.
(2) The duty under paragraph (1) shall not be construed
to include inability to prevent the escape of gas when gas
escapes as a result of an act of God or a person not under
the control of the storage operator. In that instance, the
storage operator shall have a duty to take action reasonably
necessary to prevent further escape of gas. This paragraph
does not apply to a well which the storage operator failed to
locate and make known to the department.
§ 3234. Gas storage reservoir operations in coal areas.
(a) General rule.--A person operating a storage reservoir
20110HB1950PN2837 - 244 -
which underlies or is within 2,000 linear feet of a coal mine
operating in a coal seam that extends over the storage reservoir
or the reservoir protective area shall:
(1) Use every known reasonable method for discovering
and locating all wells which have or may have been drilled
into or through the storage stratum in the acreage lying
within the outside coal boundaries of the operating coal mine
overlying the storage reservoir or the reservoir protective
area.
(2) Plug or recondition, as provided by section 3220
(relating to plugging requirements) and subsection (e), all
known wells, except to the extent provided in subsections
(e), (f), (g) and (h), drilled into or through the storage
stratum and located within the portion of the acreage of the
operating coal mine overlying the storage reservoir or the
reservoir protective area. If an objection is raised as to
use of a well as a storage well and after a conference under
section 3251 (relating to conferences) it is determined by
the department, taking into account all circumstances and
conditions, that the well should not be used as a storage
well, the well shall be plugged unless, in the opinion of the
storage operator, the well may be used as a storage well in
the future, in which case, upon approval of the department
after taking into account all circumstances and conditions,
the storage operator may recondition and inactivate the well
rather than plug it.
(3) The requirements of paragraph (2) shall be deemed to
have been fully complied with if, as the operating coal mine
is extended, all wells which from time to time come within
the acreage described in paragraph (2) are reconditioned or
20110HB1950PN2837 - 245 -
plugged as provided in section 3220 and subsection (e) or (f)
so that, by the time the coal mine has reached a point within
2,000 linear feet of the wells, they will have been
reconditioned or plugged in accordance with section 3220 and
subsection (e) or (f).
(b) Verified statement.--A person operating a storage
reservoir referred to in subsection (a) shall file with the
department and furnish a copy to the person operating the
affected operating coal mine a verified statement setting forth:
(1) That the map and any supplemental maps required by
section 3231(a) (relating to reporting requirements for gas
storage operations) have been prepared and filed in
accordance with section 3231.
(2) A detailed explanation of what the storage operator
has done to comply with the requirements of subsection (a)(1)
and (2) and the results of those actions.
(3) Such additional efforts, if any, as the storage
operator is making and intends to make to locate all wells.
(4) Any additional wells that are to be plugged or
reconditioned to meet the requirements of subsection (a)(2).
(b.1) Order of department.--If the statement required under
subsection (b) is not filed by the storage reservoir operator
within the time specified by this chapter or the regulations of
the department, the department may order the operator to file
the statement.
(c) Procedure.--Within 120 days after receipt of a statement
required by this section, the department may direct that a
conference be held in accordance with section 3251 to determine
whether the requirements of section 3231 and subsection (a) have
been fully met. At the conference, if any person believes the
20110HB1950PN2837 - 246 -
requirements have not been fully met, the parties shall attempt
to agree on additional actions to be taken and the time for
completion, subject to approval of the department. If an
agreement cannot be reached, the department shall make a
determination and, if the department determines any requirements
have not been met, the department shall issue an order
specifying in detail the extent to which the requirements have
not been met and the actions which the storage operator must
complete to meet the requirements. The order shall grant as much
time as is reasonably necessary to fully comply. If the storage
operator encounters conditions not known to exist at the time of
issuance of the order and which materially affect the validity
of the order or the ability of the storage operator to comply
with it, the storage operator may apply for a rehearing or
modification of the order.
(d) Notification.--If, in complying with subsection (a), a
storage operator, after filing the statement provided for in
subsection (b), plugs or reconditions a well, the storage
operator shall notify the department and the coal operator
affected, in writing, setting forth facts indicating the manner
in which the plugging or reconditioning was done. Upon receipt
of the notification, the coal operator or department may request
a conference under section 3251.
(e) Plugging wells.--In order to meet the requirements of
subsection (a), wells which are to be plugged shall be plugged
in the manner specified in regulations promulgated under section
3211 (relating to well permits). When a well located within the
storage reservoir or the reservoir protective area has been
plugged prior to April 18, 1985, and, on the basis of the data
information and other evidence submitted to the department, it
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is determined that the plugging was done in the manner required
by section 3220, or in a manner approved as an alternative
method in accordance with section 3221 (relating to alternative
methods), and the plugging is still sufficiently effective to
meet the requirements of this chapter, the requirements of
subsection (a) as to plugging the well shall be considered to
have been fully satisfied.
(f) Reconditioned wells.--The following shall apply:
(1) In order to comply with subsection (a), unless the
department by regulation specifies a different procedure,
wells which are to be reconditioned shall be cleaned out from
the surface through the storage horizon, and the following
casing strings shall be pulled and replaced with new casing,
using the procedure applicable to drilling a new well under
this chapter:
(i) the producing casing;
(ii) the largest diameter casing passing through the
lowest workable coal seam unless it extends at least 25
feet below the bottom of the coal seam and is determined
to be in good physical condition, but the storage
operator may, instead of replacing the largest diameter
casing, replace the next largest casing string if the
casing string extends at least 25 feet below the lowest
workable coal seam; and
(iii) casing strings determined not to be in good
physical condition
(2) In the case of a well to be used for gas storage,
the annular space between each string of casing and the
annular space behind the largest diameter casing, to the
extent possible, shall be filled to the surface with cement
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or bentonitic mud or an equally nonporous material approved
by the department under section 3221.
(3) At least 15 days before a well is to be
reconditioned, the storage operator shall give notice to the
department and the coal operator, lessee or owner, setting
forth the manner in which reconditioning is planned and
pertinent data known to the storage operator which will
indicate the current condition of the well, along with at
least 72 hours' notice of the date and time when
reconditioning will begin. The coal operator, lessee or owner
shall have the right to file, within ten days after receipt
of the notice, objections to the plan of reconditioning as
submitted by the storage operator. If no objections are filed
and none are raised by the department within ten days, the
storage operator may proceed with reconditioning in
accordance with the plan as submitted. If an objection is
filed or made by the department, the department shall fix a
time and place for a conference under section 3251, at which
conference the storage operator and the person having
objections shall attempt to agree on a plan of reconditioning
that meets the requirements of this section. If no agreement
is reached, the department shall, by an appropriate order,
determine whether the plan as submitted meets the
requirements of this section or what changes should be made
to meet the requirements. If, in reconditioning the well in
accordance with the plan, physical conditions are encountered
which justify or necessitate a change in the plan, the
storage operator or coal operator may request that the plan
be changed. If the parties cannot agree on a change, the
department shall arrange for a conference to determine the
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matter in the same manner as set forth in connection with
original objections to the plan.
(4) Application may be made to the department in the
manner prescribed in section 3221 for approval of an
alternative method of reconditioning a well. When a well
located within the storage reservoir or the reservoir
protective area has been reconditioned or drilled and
equipped prior to April 18, 1985, and, on the basis of the
data, information and other evidence submitted to the
department, the obligations imposed by subsection (a) as to
reconditioning the well shall be considered to be fully
satisfied if it is determined that reconditioning or previous
drilling and equipping:
(i) was done in the manner required in this
subsection, or in regulations promulgated hereunder, or
in a manner approved as an alternative method in
accordance with section 3221; or
(ii) is still sufficiently effective to meet the
requirements of this chapter.
(5) If a well requires emergency repairs, this
subsection shall not be construed to require the storage
operator to give the notices specified herein before making
the repairs.
(g) Producing wells.--If a well located within the reservoir
protective area is a producing well in a stratum below the
storage stratum, the obligations imposed by subsection (a) shall
not begin until the well ceases to be a producing well.
(h) Certain other wells.--If a well within a storage
reservoir or reservoir protective area penetrates the storage
stratum but does not penetrate the coal seam being mined by an
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operating coal mine, the department may, upon application of the
operator of the storage reservoir, exempt the well from the
requirements of this section. Either party affected may request
a conference under section 3251 with respect to exemption of a
well covered by this subsection.
(i) Plugging limitation.--In fulfilling the requirements of
subsection (a)(2) with respect to a well within the reservoir
protective area, the storage operator shall not be required to
plug or recondition the well until the storage operator has
received from the coal operator written notice that the mine
workings will, within the period stated in the notice, be within
2,000 linear feet of the well. Upon the receipt of the notice,
the storage operator shall use due diligence to complete the
plugging or reconditioning of the well in accordance with the
requirements of this section and section 3220. If the mine
workings do not, within a period of three years after the well
has been plugged, come within 2,000 linear feet of the well, the
coal operator shall reimburse the storage operator for the cost
of plugging, provided that the well is still within the
reservoir protective area as of that time.
(j) Retreat mining.--If retreat mining approaches a point
where, within 90 days, it is expected that the retreat work will
be at the location of the pillar surrounding an active storage
well, the coal operator shall give written notice to the storage
operator, and by agreement the parties shall determine whether
it is necessary or advisable to effectively and temporarily
inactivate the well. The well shall not be reactivated until a
reasonable period, determined by the parties, has elapsed. If
the parties cannot agree as required by this subsection, the
matter shall be submitted to the department for resolution. The
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number of wells required to be temporarily inactivated during
the retreat period shall not be of a number that materially
affects efficient operation of the storage pool, except that
this provision shall not preclude temporary inactivation of a
particular well if the practical effect of inactivating it is to
render the pool temporarily inoperative.
(k) Exceptions.--The requirements of subsections (a), (l)
and (m) shall not apply to injection of gas into a stratum when
the whole purpose of injection, referred to in this subsection
as testing, is to determine whether the stratum is suitable for
storage purposes. Testing shall be conducted only in compliance
with the following requirements:
(1) The person testing or proposing to test shall comply
with all provisions and requirements of section 3231 and
verify the statement required to be filed by that section.
(2) If any part of the proposed storage reservoir is
under or within 2,000 linear feet of an operating coal mine
which is operating in a coal seam that extends over the
proposed storage reservoir or the reservoir protective area,
the storage operator shall give at least six months' written
notice to the department and coal operator of the fact that
injection of gas for testing purposes is proposed.
(3) The coal operator affected may at any time file
objections with the department, whereupon the department
shall fix a time and place for a conference under section
3251, not more than ten days from the date of the notice to
the storage operator. At the conference, the storage operator
and the objecting party shall attempt to agree, subject to
approval of the department, on the questions involved. If an
agreement cannot be reached, the department may issue an
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appropriate order.
(4) If at any time a proposed storage reservoir being
tested comes under or within 2,000 linear feet of an
operating coal mine because of extension of the storage
reservoir being tested or because of extension or
establishment or reestablishment of the operating coal mine,
the requirements of this subsection shall immediately become
applicable to the testing.
(l) Storage reservoirs near operating coal mines.--A person
who proposes to establish a storage reservoir under or within
2,000 linear feet of a coal mine operating in a coal seam that
extends over the storage reservoir or the reservoir protective
area shall, prior to establishing the reservoir, and in addition
to complying with section 3231 and subsection (a), file the
verified statement required by subsection (b) and fully comply
with any order of the department in the manner provided under
subsection (b) or (c) before commencing operation of the storage
reservoir. After the person proposing to operate the storage
reservoir complies with the requirements of this subsection and
commences operations, the person shall continue to be subject to
all provisions of this chapter.
(m) Gas storage reservoirs.--If a gas storage reservoir is
in operation on April 18, 1985, and at any time thereafter it is
under or within 2,000 linear feet of an operating coal mine, or
if a gas storage reservoir is put in operation after April 18,
1985, and at any time after storage operations begin it is under
or within 2,000 linear feet of an operating coal mine, the
storage operator shall comply with all of the provisions of this
section, except that:
(1) the time for filing the verified statement under
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subsection (b) shall be 60 days after the date stated in the
notice filed by the coal operator under section 3232(d) and
(e) (relating to reporting requirements for coal mining
operations);
(2) the coal operator shall give notice of the delay to
the department;
(3) the department shall, upon the request of the
storage operator, extend the time for filing the statement by
the additional time which will be required to extend or
establish or reestablish the operating coal mine to a point
within 2,000 linear feet of the reservoir;
(4) the verified statement shall also indicate that the
map referred to in section 3231(a) has been currently amended
as of the time of the filing of the statement; and
(5) the person operating the storage reservoir shall
continue to be subject to all of the provisions of this
chapter.
(n) Failure to comply with order.--If, in any proceeding
under this chapter, the department determines that an operator
of a storage reservoir has failed to comply with a lawful order
issued under this chapter, the department may require the
storage operator to suspend operation of the reservoir and
withdraw the gas from it until the violation is remedied, in
which case the storage operator, limited by due diligence
insofar as existing facilities utilized to remove gas from the
reservoir will permit, shall:
(1) if possible, remove the amount required by the
department to be removed; or
(2) in any event, remove the maximum amount which can be
withdrawn in accordance with recognized engineering and
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operating procedures.
(o) Prevention of escape of gas.--In addition to initial
compliance with other provisions of this chapter and lawful
orders issued under this chapter, it shall be the duty, at all
times, of a person owning or operating a storage reservoir
subject to this chapter to keep all wells drilled into or
through the storage stratum in a condition, and operate the
wells in a manner, which is designed to prevent the escape of
gas out of the storage reservoir and its facilities, and to
operate and maintain the storage reservoir and its facilities in
the manner prescribed by regulation of the department and at a
pressure that will prevent gas from escaping from the reservoir
or its facilities. This duty shall not be construed to include
inability to prevent the escape of gas when escape results from
an act of God or a person not under the control of the storage
operator, except that this exception does not apply to a well
which the storage operator has failed to locate and make known
to the department. If an escape of gas results from an act of
God or a person not under the control of the storage operator,
the storage operator shall be under the duty to take any action
reasonably necessary to prevent further escape of gas out of the
storage reservoir and its facilities.
§ 3235. Inspection of facilities and records.
(a) General rule.--The person operating a storage reservoir
affected by this chapter shall, at all reasonable times, be
permitted to inspect applicable records and facilities of a coal
mine overlying the storage reservoir or reservoir protective
area. The person operating a coal mine affected by this chapter
shall, at all reasonable times, be permitted to inspect
applicable records and facilities of a storage reservoir
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underlying the coal mine.
(b) Order.--If a storage operator or coal operator subject
to subsection (a) refuses to permit inspection of records or
facilities, the department may, on its own motion or on
application of the party seeking inspection, after reasonable
written notice and a hearing if requested by an affected party,
order inspection.
§ 3236. Reliance on maps and burden of proof.
(a) General rule.--In determining whether a coal mine or
operating coal mine is or will be within a particular distance
from a storage reservoir which is material under this chapter,
the owner or operator of the coal mine and the storage operator
may rely on the most recent map of the storage reservoir or coal
mine filed by the other party with the department.
(b) Accuracy.--Where accuracy of a map or data filed under
this chapter is in issue, the person that filed the map or data
shall:
(1) at the request of an objecting party, disclose the
information and method used to compile the map or data, along
with any information available to the person that might
affect current validity of the map or data; and
(2) have the burden of proving accuracy of the map or
data.
§ 3237. Exemptions and prohibitions.
(a) Inapplicability of chapter to certain coal mines.--This
chapter shall not apply to the following types of coal mines:
(1) Strip mines and auger mines operating from the
surface.
(2) Mines to which the former act of June 9, 1911
(P.L.756, No.319), entitled "An act to provide for the health
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and safety of persons employed in and about the bituminous
coal-mines of Pennsylvania, and for the protection and
preservation of property connected therewith," did not apply
in accordance with section 3 of Article XXVIII of that act.
(3) Mines to which the former act of June 2, 1891
(P.L.176, No.177), entitled "An act to provide for the health
and safety of persons employed in and about the anthracite
coal mines of Pennsylvania and for the protection and
preservation of property connected therewith," did not apply
in accordance with section 1 of Article I of that act.
(b) Workable coal seams.--Injection of gas for storage
purposes in a workable coal seam, whether or not it is being or
has been mined, is prohibited.
(b.1) Original extraction.--Nothing in this chapter
prohibits original extraction of natural gas, crude oil or coal.
(c) Certain rock formations.--Nothing in this chapter
applies to storage of gas or liquids in storage reservoirs
excavated in rock formations specifically for storage purposes.
SUBCHAPTER D
EMINENT DOMAIN
Sec.
3241. Appropriation of interest in real property.
§ 3241. Appropriation of interest in real property.
(a) General rule.--Except as provided in this subsection, a
corporation empowered to transport, sell or store natural gas or
manufactured gas in this Commonwealth may appropriate an
interest in real property located in a storage reservoir or
reservoir protective area for injection, storage and removal
from storage of natural gas or manufactured gas in a stratum
which is or previously has been commercially productive of
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natural gas. The right granted by this subsection shall not be
exercised to acquire any of the following for the purpose of gas
storage:
(1) An interest in a geological stratum within the area
of a proposed storage reservoir or reservoir protective area:
(i) unless the original recoverable oil or gas
reserves in the proposed storage reservoir have been
depleted or exhausted by at least 80%; and
(ii) until the condemnor has acquired the right, by
grant, lease or other agreement, to store gas in the
geological stratum underlying at least 75% of the area of
the proposed storage reservoir.
(2) An interest in a geological stratum within the area
of a proposed storage reservoir or reservoir protective area
owned directly or indirectly by a gas company or other person
engaged in local distribution of natural gas, if the interest
to be acquired is presently being used by the gas company or
other person for storage of gas in performance of service to
customers in its service area.
(b) Construction.--The following shall apply:
(1) This chapter authorizes appropriation within a
storage reservoir or reservoir protective area of the
following:
(i) a stratum to be used for storage;
(ii) any gas reserve remaining a stratum to be used
for storage;
(iii) an active or abandoned well or wells drilled
into a stratum to be used for storage; and
(iv) the right to enter upon and use the surface of
lands to:
20110HB1950PN2837 - 258 -
(A) locate, recondition, maintain, plug or
replug an active or abandoned well; or
(B) operate a well drilled into or through a
stratum to be used for storage.
(2) This chapter does not preclude the owner of
nonstorage strata from drilling wells to produce oil or gas
from a stratum above or below the storage stratum
appropriated by another person, but a person appropriating or
holding storage rights may access, inspect and examine the
drilling, the completed well, drilling logs and other records
relating to drilling, equipping or operating the well in
order to determine whether the storage stratum is being
adequately protected to prevent escape of gas stored therein.
(3) This chapter does not authorize appropriation of a
coal or coal measure, regardless of whether it is being
mined, or an interest in the coal mine or coal measure.
(c) Activities through appropriated strata.--A person
drilling, operating, using or plugging a well through a stratum
appropriated under this chapter shall drill, case, equip,
operate or plug it in a manner designed to prevent avoidable
escape of gas that may be stored in the storage stratum. Upon
violation of this subsection, the court of common pleas of the
county where the land in question is situated may compel
compliance by injunction or grant other appropriate relief in an
action brought by the person storing gas in the storage stratum.
(d) Prerequisites to appropriation.--Before appropriating
under this chapter, a person shall attempt to agree with owners
of interests in the real property involved as to damages payable
for rights and interests to be appropriated, if the owners can
be found and are sui juris. If the parties fail to agree, the
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person shall tender a surety bond to the owners to secure them
in the payment of damages. If the owners refuse to accept the
bond, cannot be found or are not sui juris, and after reasonable
notice to the owners by advertisement or otherwise, the bond
shall be presented for approval to the court of common pleas of
the county in which the tract of land is situated. Upon the
approval of the bond by the court, the right of the person to
appropriate in accordance with the provisions of this chapter
shall be complete.
(e) Appointment of viewers.--Upon petition of a property
owner or a person appropriating under this chapter, the court
shall:
(1) appoint three disinterested freeholders of the
county to serve as viewers to assess damages to be paid to
the property owner for the rights appropriated;
(2) fix a time for the parties to meet;
(3) provide notice to the parties; and
(4) after the viewers have filed their report, fix
reasonable compensation for the service of the viewers.
(f) Appeal.--Within 20 days after the filing of a report by
viewers appointed under subsection (e), a party may appeal and
proceed to a jury trial as in ordinary cases.
(g) Requirements.--Nothing in this section shall relieve a
person operating a storage reservoir from the requirements of
this chapter.
SUBCHAPTER E
ENFORCEMENT AND REMEDIES
Sec.
3251. Conferences.
3252. Public nuisances.
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3253. Enforcement orders.
3254. Restraining violations.
3255. Penalties.
3256. Civil penalties.
3257. Existing rights and remedies preserved and cumulative
remedies authorized.
3258. Production of materials, witnesses, depositions and
rights of entry.
3259. Unlawful conduct.
3260. Collection of fines and penalties.
3261. Third-party liability.
§ 3251. Conferences.
(a) General rule.--The department or any person having a
direct interest in a matter subject to this chapter may, at any
time, request that a conference be held to discuss and attempt
to resolve by mutual agreement a matter arising under this
chapter. Unless otherwise provided, conferences shall be held
within 90 days after a request is received by the department,
and notice shall be given by the department to all interested
parties. A representative of the department shall attend the
conference and the department may make recommendations. An
agreement reached at a conference shall be consistent with this
chapter and, if approved by the department, it shall be reduced
to writing and shall be effective, unless reviewed and rejected
by the department within ten days after the conference. The
record of an agreement approved by the department shall be kept
on file by the department and copies shall be furnished to the
parties. The scheduling of a conference shall have no effect on
the department's authority to issue orders to compel compliance
with this chapter.
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(b) Notification.--When a coal operator is to be notified of
a proceeding under this section, the department simultaneously
shall send a copy of the notice to the collective bargaining
representative of employees of the coal operator.
§ 3252. Public nuisances.
A violation of section 3216 (relating to well site
restoration), 3217 (relating to protection of fresh groundwater
and casing requirements), 3218 (relating to protection of water
supplies), 3219 (relating to use of safety devices) or 3220
(relating to plugging requirements), or a rule, regulation,
order, term or condition of a permit relating to any of those
sections constitutes a public nuisance.
§ 3253. Enforcement orders.
(a) General rule.--Except as modified by subsections (b),
(c) and (d), the department may issue orders necessary to aid in
enforcement of this chapter. An order issued under this chapter
shall take effect upon notice, unless the order specifies
otherwise. The power of the department to issue an order under
this chapter is in addition to any other remedy available to the
department under this chapter or under any other law.
(b) Suspension and revocation.--The department may suspend
or revoke a well permit or well registration for any well in
continuing violation of this chapter, the act of June 22, 1937
(P.L.1987, No.394), known as The Clean Streams Law, the act of
July 7, 1980 (P.L.380, No.97), known as the Solid Waste
Management Act, any other statute administered by the department
or a rule or regulation. The right of the department to revoke a
permit or registration under this subsection shall not be
effective until a final administrative determination has been
made of the violation and no appeal is pending in which a stay
20110HB1950PN2837 - 262 -
has been granted. A suspension order of the department shall
automatically terminate if the violation upon which it is based
is corrected by the operator to bring the well into compliance
with this chapter.
(c) Written notice.--Prior to suspension or revocation of a
well permit or registration, the department shall serve written
notice on the well operator or its agent, stating specifically
the statutory provision, rule, regulation or other reason relied
upon, along with factual circumstances surrounding the alleged
violation. The well operator shall have 15 days to request a
conference with the department to show cause why action should
not be taken. Upon receipt of a request, the department shall
hold a conference and render a decision within 15 days after the
conference. The department shall provide written notice of the
decision to the well operator or its agent, which shall become
effective upon receipt. If the decision is to suspend or revoke
the permit or registration, the department may order the
operator to cap the well if the likely result of the violation
is an unsafe operation or environmental damage.
(d) Immediate orders.--An order of the department requiring
immediate cessation of drilling operations shall be effective
only if authorized by the secretary or by the Executive Deputy
Secretary for Environmental Protection.
(e) Grievances.--A person aggrieved by a department order
issued under this section shall have the right, within 30 days
of receipt of the notice, to appeal to the Environmental Hearing
Board.
(f) Inspection reports.--The department shall post
inspection reports on its publicly accessible Internet website.
The inspection reports shall include:
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(1) The nature and description of violations.
(2) The operator's written response to the violation, if
available.
(3) The status of the violation.
(4) The remedial steps taken by the operator or the
department to address the violation.
§ 3254. Restraining violations.
(a) General rule.--In addition to any other remedy provided
in this chapter, the department may institute a suit in equity
in the name of the Commonwealth for an injunction to restrain a
violation of this chapter or rules, regulations, standards or
orders adopted or issued under this chapter and to restrain the
maintenance or threat of a public nuisance. Upon motion of the
Commonwealth, the court shall issue a prohibitory or mandatory
preliminary injunction if it finds that the defendant is
engaging in unlawful conduct, as defined by this chapter, or
conduct causing immediate and irreparable harm to the public.
The Commonwealth shall not be required to furnish bond or other
security in connection with the proceeding. In addition to an
injunction, the court in equity may level civil penalties as
specified in section 3256 (relating to civil penalties).
(b) District attorney.--In addition to other remedies in
this chapter, upon relation of the district attorney of a county
affected, or upon relation of the solicitor of a municipality
affected, an action in equity may be brought in a court of
competent jurisdiction for an injunction to restrain a violation
of this chapter or rules and regulations promulgated under this
chapter or to restrain a public nuisance or detriment to health.
(c) Concurrent penalties.--Penalties and remedies under this
chapter shall be deemed concurrent. Existence or exercise of one
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remedy shall not prevent the department from exercising another
remedy at law or in equity.
(d) Jurisdiction.--Actions under this section may be filed
in the appropriate court of common pleas or in Commonwealth
Court, and those courts are hereby granted jurisdiction to hear
actions under this section.
§ 3255. Penalties.
(a) General violation.--A person violating a provision of
this chapter commits a summary offense and, upon conviction,
shall be sentenced to pay a fine of not more than $1,000 or to
imprisonment of not more than 90 days, or both. Each day during
which the violation continues is a separate and distinct
offense.
(b) Willful violation.--A person willfully violating a
provision of this chapter or an order of the department issued
under this chapter commits a misdemeanor and, upon conviction,
shall be sentenced to pay a fine of not more than $5,000 or to
imprisonment of not more than one year, or both. Each day during
which the violation continues is a separate and distinct
offense.
(c) Authority.--The department may institute a prosecution
against any person or municipality for a violation of this
chapter.
§ 3256. Civil penalties.
In addition to other remedies available at law or in equity
for a violation of this chapter, a rule or regulation of the
department or a departmental order or a permit condition, the
department, after a hearing, may assess a civil penalty
regardless of whether the violation was willful. The penalty
shall not exceed $25,000 plus $1,000 for each day during which
20110HB1950PN2837 - 265 -
the violation continues, or in the case of a violation arising
from the construction, alteration or operation of an
unconventional well, $75,000 plus $5,000 for each day during
which the violation continues. In determining the amount, the
department shall consider willfulness of the violation, damage
or injury to natural resources of this Commonwealth or their
uses, endangerment of safety of others, the cost of remedying
the harm, savings resulting to the violator as a result of the
violation and any other relevant factor. The penalty shall be
payable to the Commonwealth and collectible in any manner
provided at law for collection of debts. If a violator neglects
or refuses to pay the penalty after demand, the amount, together
with interest and costs that may accrue, shall become a lien in
favor of the Commonwealth on the real and personal property of
the violator, but only after the lien has been entered and
docketed of record by the prothonotary of the county where the
property is situated. The department may at any time transmit to
the prothonotaries of the various counties certified copies of
all liens. It shall be the duty of each prothonotary to enter
and docket the liens of record in the prothonotary's office and
index them as judgments are indexed, without requiring payment
of costs as a condition precedent to entry.
§ 3257. Existing rights and remedies preserved and cumulative
remedies authorized.
Nothing in this chapter estops the Commonwealth or a district
attorney from proceeding in a court of law or in equity to abate
pollution forbidden under this chapter or a nuisance under
existing law. It is hereby declared to be the purpose of this
chapter to provide additional and cumulative remedies to control
activities related to drilling for, or production of, oil and
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gas in this Commonwealth, and nothing contained in this chapter
abridges or alters rights of action or remedies existing, or
which existed previously, in equity or under common or statutory
law, criminal or civil. Neither this chapter, the grant of a
permit under this chapter nor an act done by virtue of this
chapter estops the Commonwealth, in exercising rights under
common or decisional law or in equity, from suppressing a
nuisance, abating pollution or enforcing common law or statutory
rights. No court of this Commonwealth with jurisdiction to abate
public or private nuisances shall be deprived of jurisdiction in
an action to abate a private or public nuisance instituted by
any person on grounds that the nuisance constitutes air or water
pollution.
§ 3258. Production of materials, witnesses, depositions and
rights of entry.
(a) General rule.--The department may make inspections,
conduct tests or sampling or examine books, papers and records
pertinent to a matter under investigation under this chapter to
determine compliance with this chapter. For this purpose, the
duly authorized agents and employees of the department may at
all reasonable times enter and examine any involved property,
facility, operation or activity.
(b) Access.--The owner, operator or other person in charge
of a property, facility, operation or activity under this
chapter, upon presentation of proper identification and purpose
for inspection by agents or employees of the department, shall
provide free and unrestricted entry and access. Upon refusal,
the agent or employee may obtain a search warrant or other
suitable order authorizing entry and inspection. It shall be
sufficient to justify issuance of a search warrant authorizing
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examination and inspection if:
(1) there is probable cause to believe that the object
of the investigation is subject to regulation under this
chapter; and
(2) access, examination or inspection is necessary to
enforce the provisions of this chapter.
(c) Witnesses.--In any part of this Commonwealth, the
department may subpoena witnesses, administer oaths, examine
witnesses, take testimony and compel production of books,
records, maps, plats, papers, documents and other writings
pertinent to proceedings or investigations conducted by the
department under this chapter. Upon refusal to obey a subpoena
by any person and on application of the department, a court may
enforce a subpoena in contempt proceedings. Fees for serving a
subpoena shall be the same as those paid to sheriffs for similar
services.
(d) Deposition.--The department or a party to a proceeding
before the department may cause the deposition of a witness who
resides in or outside of this Commonwealth to be taken in the
manner prescribed by law for taking depositions in civil
actions.
(e) Witness fee.--Witnesses summoned before the department
shall be paid the same fees as are paid to witnesses in courts
of record of general jurisdiction. Witnesses whose depositions
are taken under this chapter, and the officers taking those
depositions, shall be entitled to the same fees as those paid
for like services in court.
(f) Purchasers.--Upon request, a purchaser of oil or gas
shall provide the department information necessary to determine
ownership of facilities from which the purchaser obtained oil or
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gas. The information shall be kept confidential for a period of
five years and the department may utilize it in enforcement
proceedings. The department may request information under this
section only when a well does not comply with section 3211(h)
(relating to well permits).
§ 3259. Unlawful conduct.
It shall be unlawful for any person to:
(1) Drill, alter, operate or utilize an oil or gas well
without a permit or registration from the department as
required by this chapter or in violation of rules or
regulations adopted under this chapter, orders of the
department or a term or condition of a permit issued by the
department.
(2) Conduct an activity related to drilling for, or
production of, oil and gas:
(i) contrary to this chapter, rules or regulations
adopted under this chapter, an order of the department or
a term or condition of a permit issued by the department;
or
(ii) in any manner as to create a public nuisance or
adversely affect public health, safety, welfare or the
environment.
(3) Refuse, obstruct, delay or threaten an agent or
employee of the department acting in the course of lawful
performance of a duty under this chapter, including, but not
limited to, entry and inspection.
(4) Attempt to obtain a permit or identify a well as an
orphan well by misrepresentation or failure to disclose all
relevant facts.
(5) Cause abandonment of a well by removal of casing or
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equipment necessary for production without plugging the well
in the manner prescribed under section 3220 (relating to
plugging requirements), except that the owner or operator of
a well may temporarily remove casing or equipment necessary
for production, but only if it is part of the normal course
of production activities.
§ 3260. Collection of fines and penalties.
Fines and penalties shall be collectible in a manner provided
by law for collection of debts. If a person liable to pay a
penalty neglects or refuses to pay after demand, the amount,
together with interest and costs that may accrue, shall be a
judgment in favor of the Commonwealth on the person's property,
but only after the judgment has been entered and docketed of
record by the prothonotary of the county where the property is
situated. The department may transmit to prothonotaries of the
various counties certified copies of all judgments, and it shall
be the duty of each prothonotary to enter and docket them of
record in the prothonotary's office and index them as judgments
are indexed, without requiring payment of costs as a condition
precedent to entry.
§ 3261. Third-party liability.
If a person other than a well operator renders a service or
product to a well or well site, that person is jointly and
severally liable with the well owner or operator for violations
of this chapter arising out of and caused by the person's
actions at the well or well site.
SUBCHAPTER F
(RESERVED)
SUBCHAPTER G
MISCELLANEOUS PROVISIONS
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Sec.
3291. Well plugging funds.
3292. Local ordinances.
3293. Effect on department authority.
3294. Relationship to solid waste and surface mining.
3295. Regulatory authority.
§ 3291. Well plugging funds.
(a) Appropriation.--Fines, civil penalties and permit and
registration fees collected under this chapter are appropriated
to the department to carry out the purposes of this chapter.
(b) Surcharge.--To aid in indemnifying the Commonwealth for
the cost of plugging abandoned wells, a $50 surcharge is added
to the permit fee established by the department under section
3211 (relating to well permits) for new wells. Money collected
as a result of the surcharge shall be paid into a restricted
revenue account in the State Treasury to be known as the
Abandoned Well Plugging Fund and expended by the department to
plug abandoned wells threatening the health and safety of
persons or property or pollution of waters of this Commonwealth.
(c) Orphan Well Plugging Fund.--The following shall apply:
(1) A restricted revenue account to be known as the
Orphan Well Plugging Fund is created. A $100 surcharge for
wells to be drilled for oil production and a $200 surcharge
for wells to be drilled for gas production are added to the
permit fee established by the department under section 3211
for new wells. The surcharges shall be placed in the Orphan
Well Plugging Fund and expended by the department to plug
orphan wells. If an operator rehabilitates a well abandoned
by another operator or an orphan well, the permit fee and the
surcharge for the well shall be waived.
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(2) The department shall study its experience in
implementing this section and shall report its findings to
the Governor and the General Assembly by August 1, 1992. The
report shall contain information relating to the balance of
the fund, number of wells plugged, number of identified wells
eligible for plugging and recommendations as to alternative
funding mechanisms.
(3) Expenditures by the department for plugging orphan
wells are limited to fees collected under this chapter. No
money from the General Fund shall be expended for this
purpose.
§ 3292. Local ordinances.
Except with respect to ordinances adopted under the act of
July 31, 1968 (P.L.805, No.247), known as the Pennsylvania
Municipalities Planning Code, the act of October 4, 1978
(P.L.851, No.166), known as the Flood Plain Management Act, and
the act of March 31, 1927 (P.L.98, No.69), referred to as the
Second Class City Zoning Law, local ordinances and enactments
purporting to regulate oil and gas well operations regulated by
this chapter are preempted and superseded by this chapter to the
extent the ordinances and enactments regulate the method of oil
and gas well operations. No ordinances or enactments adopted
under those acts shall impose conditions, requirements or
limitations that are inconsistent with this part.
§ 3293. Effect on department authority.
This chapter does not affect, limit or impair any right or
authority of the department under the act of June 22, 1937
(P.L.1987, No.394), known as The Clean Streams Law, the act of
January 8, 1960 (1959 P.L.2119, No.787), known as the Air
Pollution Control Act, the act of November 26, 1978 (P.L.1375,
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No.325), known as the Dam Safety and Encroachments Act or the
act of July 7, 1980 (P.L.380, No.97), known as the Solid Waste
Management Act.
§ 3294. Relationship to solid waste and surface mining.
(a) General rule.--The obligation to obtain a permit and
post a bond under Articles III and V of the act of July 7, 1980
(P.L.380, No.97), known as the Solid Waste Management Act, and
to provide public notice under section 1905-A(b)(1)(v) of the
act of April 9, 1929 (P.L.177, No.175), known as The
Administrative Code of 1929, for any pit, impoundment, method or
facility employed for the disposal, processing or storage of
residual wastes generated by the drilling of an oil or gas well
or from the production of wells which is located on the well
site, shall be considered to have been satisfied if the owner or
operator of the well meets the following conditions:
(1) the well is permitted under the requirements of
section 3211 (relating to well permits) or registered under
section 3213 (relating to well registration and
identification);
(2) the owner or operator has satisfied the financial
security requirements of section 3225 (relating to bonding)
by obtaining a surety or collateral bond for the well and
well site; and
(3) the owner or operator maintains compliance with this
chapter and applicable regulations of the Environmental
Quality Board.
(b) Noncoal surface mining.--Obligations under the act of
December 19, 1984 (P.L.1093, No.219), known as the Noncoal
Surface Mining Conservation and Reclamation Act, or a rule or
regulation promulgated thereunder, for any borrow area where
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minerals are extracted solely for the purpose of oil and gas
well development, including access road construction, shall be
considered to have been satisfied if the owner or operator of
the well meets the conditions imposed under subsection (a)(1)
and (2) and maintains compliance with this chapter and
applicable regulations of the Environmental Quality Board.
(c) Solid Waste Management Act.--This section does not
diminish or otherwise affect duties or obligations of an owner
or operator under the Solid Waste Management Act. This section
does not apply to waste classified as hazardous waste under the
Solid Waste Management Act or the Resource Conservation and
Recovery Act of 1976 (Public Law 94-580, 90 Stat. 2795, 42
U.S.C. § 6901 et seq.).
(d) Definition.--As used in this section and sections 3216
(relating to well site restoration) and 3225 (relating to
bonding), the term "well site" means areas occupied by all
equipment or facilities necessary for or incidental to drilling,
production or plugging a well.
§ 3295. Regulatory authority.
The Environmental Quality Board shall adopt regulations to
implement this chapter.
CHAPTER 33
LOCAL ORDINANCES RELATING TO
OIL AND GAS OPERATIONS
Sec.
3301. Scope of chapter.
3302. Definitions.
3303. Local ordinances.
3304. Review by Attorney General.
3305. Civil actions.
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3306. Commonwealth Court masters.
3307. Attorney fees and costs.
3308. Sanction.
3309. Provisions of local ordinances.
3310. Applicability.
§ 3301. Scope of chapter.
The purposes of this chapter are to:
(1) Allow municipalities to efficiently regulate oil and
gas operations consistent with their authority under the act
of July 31, 1968 (P.L.805, No.247), known as the Pennsylvania
Municipalities Planning Code.
(2) Foster the expeditious and efficient handling of
municipal oil and gas procedures.
(3) Clarify the role of all Federal and State agencies
and municipal governments with regard to oil and gas
development activities.
§ 3302. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Building." An occupied structure with walls and roof within
which individuals live or customarily work.
"Environment acts." All statutes enacted by the Commonwealth
relating to the protection of the environment or the protection
of public health, safety and welfare, that are administered and
enforced by the department or by another Commonwealth agency,
including an independent agency, and all Federal statutes
relating to the protection of the environment, to the extent
those statutes regulate oil and gas operations.
"Local government." A county, city, borough, incorporated
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town or township of this Commonwealth.
"Local ordinance." An ordinance adopted by a local
government that regulates oil and gas operations.
"MPC." The act of July 31, 1968 (P.L.805, No.247), known as
the Pennsylvania Municipalities Planning Code.
"Oil and gas operations." The term includes the following:
(1) well location assessment, including seismic
operations, well site preparation, construction, drilling,
hydraulic fracturing and site restoration associated with an
oil or gas well of any depth;
(2) water and other fluid storage or impoundment areas
used exclusively for oil and gas operations;
(3) construction, installation, use, maintenance and
repair of:
(i) oil and gas pipelines;
(ii) natural gas compressor stations; and
(iii) natural gas processing plants or facilities
performing equivalent functions; and
(4) construction, installation, use, maintenance and
repair of all equipment directly associated with activities
specified in paragraphs (1), (2) and (3), to the extent that:
(i) the equipment is necessarily located at or
immediately adjacent to a well site, impoundment area,
oil and gas pipeline, natural gas compressor station or
natural gas processing plant; and
(ii) the activities are authorized and permitted
under the authority of a Federal or Commonwealth agency.
"Permitted use." A use which, upon submission of notice to
and receipt of a permit issued by a zoning officer or equivalent
official, is authorized to be conducted without restrictions
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other than those set forth in section 3309 (relating to
provisions of local ordinances).
§ 3303. Local ordinances.
(a) General rule.--A local ordinance may only be enacted
pursuant to the MPC, the act of March 31, 1927 (P.L.98, No.69),
referred to as the Second Class City Zoning Law, or the act of
October 4, 1978 (P.L.851, No.166), known as the Flood Plain
Management Act, as applicable, and shall provide for the
reasonable development of minerals within the local government
in accordance with the provisions of section 603(i) of the MPC
and this chapter.
(b) Limitation.--Except as provided in this chapter, a local
ordinance shall not conflict with and shall not regulate oil and
gas operations covered by the environment acts, except to the
extent that the environment acts provide the authority.
(c) Construction.--Nothing in this chapter shall be
construed to impair or infringe on the preemption provisions of
section 3292 (relating to local ordinances).
§ 3304. Review by Attorney General.
(a) Request of owner or operator.--An owner or operator of
an oil and gas operation, or any person having the right to
royalty payments under a lease of oil or gas mineral rights, may
request the Attorney General to review a local ordinance to
determine whether it allows for the reasonable development of
oil and gas resources in accordance with the provisions
specifically addressed in this chapter, Chapter 32 (relating to
regulation), the MPC and judicial decisions of the Commonwealth.
(b) Preenactment review.--A local government may, prior to
the enactment of a local ordinance, request the Attorney General
to review the ordinance to determine whether it allows for the
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reasonable development of oil and gas resources in accordance
with the provisions of this chapter, Chapter 32, the MPC and
judicial decisions of the Commonwealth.
(c) Time period for review.--Within 120 days of receiving a
request under subsection (a) or (b), the Attorney General shall
advise in writing the person that made the request whether or
not the Attorney General determines that the local ordinance
provides for the reasonable development of oil and gas reserves
and provide a copy of the written determination to the affected
local government.
§ 3305. Civil actions.
(a) Attorney General.--The Attorney General may bring an
action against a local government in Commonwealth Court to
invalidate or enjoin the enforcement of a local ordinance that
does not allow for the reasonable development of oil and gas
resources.
(b) Private right of action.--
(1) Notwithstanding any provision of 42 Pa.C.S. Ch. 85
Subch. C (relating to actions against local parties), any
person who is aggrieved by the enactment or enforcement of a
local ordinance that does not allow for the reasonable
development of oil and gas resources in accordance with the
provisions of section 3292 (relating to local ordinances) may
bring an action in Commonwealth Court to invalidate the
ordinance or enjoin its enforcement.
(2) An aggrieved person may proceed without first
obtaining review of the ordinance by the Attorney General or
may proceed after receiving such review if the Attorney
General determines that the ordinance fails to comply with
this chapter but declines to bring an action under subsection
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(a).
(3) In an action brought relating to the enactment or
enforcement of a local ordinance, the determination of the
Attorney General made under section 3304 (relating to review
by Attorney General) shall become part of the record before
the court.
§ 3306. Commonwealth Court masters.
(a) General rule.--The Commonwealth Court may promulgate
rules for the selection and appointment of masters on a full-
time or part-time basis to oversee actions brought under section
3305 (relating to civil actions). A master must be a member of
the bar of this Commonwealth. The number and compensation of
masters shall be fixed by the Commonwealth Court, and their
compensation shall be paid by the Commonwealth.
(b) Procedure.--
(1) The Commonwealth Court may direct that a hearing in
an action brought under section 3305 be conducted in the
first instance by the master in the manner provided for in
this section.
(2) Upon the conclusion of a hearing before a master,
the master shall transmit written findings and
recommendations for disposition to the president judge.
Prompt written notice and copies of the findings and
recommendations shall be given to the parties to the
proceeding.
(3) The findings and recommendations of the master shall
become the findings and order of the Commonwealth Court upon
written confirmation by the president judge. A rehearing may
be ordered by the president judge at any time upon cause
shown.
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§ 3307. Attorney fees and costs.
In an action brought under section 3305 (relating to civil
actions), the court may do any of the following:
(1) If the court determines that the local government
enacted or enforced a local ordinance with willful or
reckless disregard for the limitation of authority
established under State law, it may order the local
government to pay the plaintiff reasonable attorney fees and
other reasonable costs incurred by the plaintiff in
connection with the action.
(2) If the court determines that the action brought by
the plaintiff was frivolous or was brought without
substantial justification in claiming that the local
ordinance in question was contrary to the requirements of
this chapter or Chapter 32 (relating to regulations), the Oil
and Gas Act, it may order the plaintiff to pay the local
government reasonable attorney fees and other reasonable
costs incurred by the local government in defending the
action.
§ 3308. Sanction.
If the Attorney General, the Commonwealth Court or the
Supreme Court determines that a local ordinance fails to provide
for the reasonable development of oil and gas resources, the
local government enacting or enforcing the local ordinance shall
be immediately ineligible to receive any funds collected under
Chapter 23 (relating to drilling impact fee). The local
government shall remain ineligible to receive funds under
Chapter 23 until the local government amends or repeals its
local ordinance in accordance with this chapter.
§ 3309. Provisions of local ordinances.
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In order to allow for the reasonable development of oil and
gas resources, a local ordinance must, in addition to complying
with this chapter, Chapter 32 (relating to regulations) the Oil
and Gas Act, the MPC and judicial decisions of the Commonwealth:
(1) Allow well and pipeline location assessment
operations, including seismic operations and related
activities conducted in accordance with all applicable
Federal and State laws and regulations relating to the
storage and use of explosives throughout every local
government.
(2) Impose conditions, requirements or limitations on
oil and gas operations that are no more stringent than
similar conditions, requirements or limitations imposed on
construction activities for other land development within the
zoning district where the oil and gas operations are
situated.
(3) Impose conditions, requirements or limitations on
the height of permanent structures, setbacks from property
lines, screening and fencing, lighting and noise relating to
oil and gas operations that are no more stringent than
similar conditions, requirements or limitations imposed on
industrial uses or what is allowed within the particular
zoning district within the local government where the oil and
gas operations are situated or stipulated in or set forth in
State statute or regulations pertaining to oil and gas
operations.
(4) Have a review period for permitted uses that does
not exceed 30 days for complete submissions or that exceeds
120 days for conditional uses.
(5) Authorize oil and gas operations, other than
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activities in or at impoundment areas, compressor stations
and processing plants, as a permitted use in all zoning
districts.
(5.1) Notwithstanding section 3215 (relating to well
location restrictions) the oil and gas operations under
paragraph (5) may be prohibited, or permitted only as a
conditional use within a residential district where a well
site cannot be placed so that the wellhead is at least 500
feet from any existing building. In a residential district,
all of the following apply:
(i) A well site may not be located so that the outer
edge of the well pad is closer than 300 feet from an
existing building.
(ii) Except as set forth in paragraph (5) and in
this paragraph, oil and gas operations, other than the
placement, use and repair of oil and gas pipelines, water
pipelines, access roads or security structures and
fencing, may not take place within 300 feet of an
existing building.
(6) Authorize impoundment areas used for oil and gas
operations as a permitted use in all zoning districts,
provided that the edge of any impoundment area shall not be
located closer than 300 feet from an existing building.
(7) Authorize natural gas compressor stations as a
permitted use in agriculture and industrial zoning districts
and as a conditional use in all other zoning districts, if
the natural gas compressor building meets the following
conditions:
(i) is located 750 feet or more from the nearest
existing building or 200 feet from the nearest lot line,
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whichever is greater, unless waived by the owner of the
building or adjoining lot; and
(ii) does not exceed a noise standard of 60dbA at
the nearest property line or the applicable standard
imposed by Federal law, whichever is lesser.
(8) Authorize natural gas processing plants as a
permitted use in an industrial zoning district and as
conditional uses in agricultural zoning districts, if the
natural gas processing plant buildings meet the following
conditions:
(i) Unless there is a waiver by the owner of the
building or adjoining lot, the natural gas processing
plant building is located at the greater of:
(A) at least 750 feet from the nearest existing
building; or
(B) at least 200 feet from the nearest lot line.
(ii) The noise level of the natural gas processing
plant at the property line does not exceed the lesser of:
(A) a noise standard of 60dbA; or
(B) the applicable standard imposed by Federal
law.
(9) Impose restrictions on vehicular access routes for
overweight vehicles only as authorized under 75 Pa.C.S.
(relating to vehicles) or the MPC.
(10) Does not attempt to impose limits or conditions on
subterranean operations or hours of operation.
§ 3310. Applicability.
This chapter shall apply to the enforcement of local
ordinances existing on the date of this section and to the
enactment or enforcement of local ordinances enacted on or after
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the effective date of this chapter.
Section 2. Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate the addition of 58
Pa.C.S. Ch. 32.
(2) The act of December 19, 1984 (P.L.1140, No.223),
known as the Oil and Gas Act, is repealed.
Section 3. This act shall apply as follows:
(1) The addition of 58 Pa.C.S. § 3225(a)(1)(iii) shall
apply to wells drilled after the effective date of this
section.
(2) The addition of 58 Pa.C.S. Pt II shall apply to all
oil and gas deposits and oil and gas development activities
and operations subject to the jurisdiction of the
Commonwealth. With respect to oil and gas deposits on
national forest lands identified under section 17(o) of the
Mineral Leasing Act (106 Stat. 3108, 30 U.S.C. § 226(o)), the
application of regulations and statutes adopted by the
Commonwealth shall be the exclusive method and means by which
any requirements may be imposed on any feature, aspect or
process of oil and gas operations pertaining to the
development of the deposits.
Section 4. The addition of 58 Pa.C.S. Ch. 32 is a
continuation of the act of December 19, 1984 (P.L.1140, No.223),
known as the Oil and Gas Act. The following apply:
(1) Except as otherwise provided in 58 Pa.C.S. Ch. 32,
all activities initiated under the Oil and Gas Act shall
continue and remain in full force and effect and may be
completed under 58 Pa.C.S. Ch. 32. Orders, regulations, rules
and decisions which were made under the Oil and Gas Act and
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which are in effect on the effective date of section 2(2) of
this act shall remain in full force and effect until revoked,
vacated or modified under 58 Pa.C.S. Ch. 32. Contracts,
obligations and collective bargaining agreements entered into
under the Oil and Gas Act are not affected nor impaired by
the repeal of the Oil and Gas Act.
(2) Except as set forth in paragraph (3), any difference
in language between 58 Pa.C.S. Ch. 32 and the Oil and Gas Act
is intended only to conform to the style of the Pennsylvania
Consolidated Statutes and is not intended to change or affect
the legislative intent, judicial construction or
administration and implementation of the Oil and Gas Act.
(3) Paragraph (2) does not apply to the addition of the
following provisions:
(i) The following definitions in section 3203:
(A) "Unconventional formation."
(B) "Unconventional well."
(ii) Section 3211(a) introductory paragraph, (b),
(b.1), (b.2), (d), (e), (e.1)(5), (6) and (7), (f), (g)
and (k).
(iii) Section 3215(a), (b), (c) introductory
paragraph, (6) and (7) , (d) and (e).
(iv) Section 3218(a), (b.1), (b.2), (c), (c.1), (d)
(1), (3), (4) and (5) and (g).
(v) Section 3218.1.
(vi) Section 3218.2.
(vii) Section 3218.3.
(viii) Section 3218.4.
(ix) Section 3218.5.
(x) Section 3218.6.
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(xi) Section 3222(a.1), (b), (b.1), (b.2) and (b.3).
(xii) Section 3225(a)(1), (2) and (3)(iii) and (iv),
(c), (d), (d.1) and (f).
(xiii) Section 3253(c) and (f).
(xiv) Section 3255(a) and (b).
(xv) Section 3256.
(xvi) Section 3292.
Section 4.1. It is not the intent of the General Assembly to
change, repeal or otherwise affect any of the provisions of the
act of December 18, 1984 (P.L. 1069, No. 214), known as the Coal
and Gas Resource Coordination Act, or to change, repeal or
otherwise affect any of the provisions of the act of January 26,
2011 (P.L.7, No.2), entitled "An act amending the act of
December 18, 1984 (P.L.1069, No.214), entitled 'An act requiring
coordination of coal mine and gas well operators; authorizing
Department of Environmental Resources enforcement powers; and
providing penalties,' further providing for definitions, for
permits, for permit application, for minimum distance between
gas wells, for well class designation and for coordination of
gas well drilling through active coal mines; providing for a
pillar support study; and further providing for plugging gas
wells penetrating workable coal seams, for penalties and for
validity of other laws," which amended the Coal and Gas Resource
Coordination Act.
Section 4.2. Within 180 days of the effective date of this
section, the Department of Transportation shall, based on
accurate department records reflecting average historical
expenses which have been incurred in the repair of excess
damages and levels of use by industries, including the
transportation of forest and other products, publish proposed
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regulations to:
(1) adopt an appropriate method to determine levels of
financial security, degrees of liability and bonding
requirements for hauling in excess of posted weight limits on
State and local roads in counties where there are
unconventional gas wells; and
(2) impose bonding requirements based on levels of use
by industry.
Section 5. This act shall take effect as follows:
(1) The following provisions shall take effect
immediately:
(i) The addition of 58 Pa.C.S. § 3301.
(ii) Section 4.1 of this act.
(iii) Section 4.2 of this act.
(iv) This section.
(2) Except for the addition of 58 Pa.C.S. § 3301, the
addition of 58 Pa.C.S. Ch. 33 shall take effect in 30 days.
(2.1) The addition of 58 Pa.C.S. § 3215 shall take
effect in 120 days.
(3) The addition of 58 Pa.C.S. § 3225 shall take effect
in 180 days.
(4) The remainder of this act shall take effect in 60
days.
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