THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY HANNA, GEORGE, BRENNAN, CALTAGIRONE, CONKLIN, DENLINGER, FABRIZIO, GOODMAN, HALUSKA, KULA, MIRABITO, MURPHY, MURT, READSHAW AND K. SMITH, FEBRUARY 15, 2011

REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, FEBRUARY 15, 2011  

AN ACT

Amending the act of December 19, 1984 (P.L.1140, No.223),

entitled "An act relating to the development of oil and gas

and coal; imposing duties and powers on the Department of

Environmental Resources; imposing notification requirements

to protect landowners; and providing for definitions, for

various requirements to regulate the drilling and operation

of oil and gas wells, for gas storage reservoirs, for various

reporting requirements, including certain requirements

concerning the operation of coal mines, for well permits, for

well registration, for distance requirements, for well casing

requirements, for safety device requirements, for storage

reservoir obligations, for well bonding requirements, for a

Well Plugging Restricted Revenue Account to enforce oil and

gas well plugging requirements, for the creation of an Oil

and Gas Technical Advisory Board, for oil and gas well

inspections, for enforcement and for penalties," in

preliminary provisions, further providing for definitions;

and, in enforcement and remedies, providing for securing

compensation for surface damage.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The definition of "department" in section 103 of

the act of December 19, 1984 (P.L.1140, No.223), known as the

Oil and Gas Act, is amended to read:

Section 103.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Department."  The Department of Environmental [Resources]

Protection of the Commonwealth.

* * *

Section 2.  The act is amended by adding a section to read:

Section 512.  Procedure for securing compensation for damage to

surface landowner's property caused by oil or gas

drilling or exploration; duties of the department.

(a)  (1)  A surface landowner who believes that the drilling,

well installation or exploration for oil or gas has caused

damage to any structure, surface ground or vegetation on his

property and who wishes compensation for any damage,

including compensation for the loss of use of his property,

shall notify the owner of the drill, well operator or oil or

gas explorer. 

(2)  If the owner of the drill, well operator or oil or

gas explorer agrees that oil or gas drilling, well

installation or exploration damaged such structure, ground or

vegetation, he shall compensate the surface landowner for the

damage or reach an agreement either prior to drilling or

exploration or after the damage has occurred.

(b)  If the parties are unable to agree within six months of

the date of notice as to the cause of the damage or the

reasonable cost of compensation, the surface landowner may file

a claim in writing with the department, a copy of which shall be

filed within two years of the date damage to the building,

surface ground, trees or vegetation occurred.

(c)  (1)  The department shall make an investigation of a

claim within 30 days of the receipt of the claim.

(2)  The department shall, within 60 days following the

investigation, make a determination in writing as to whether

the drilling, well installation or exploration of oil or gas

caused the damage and, if so, the reasonable cost of

repairing or replacing the damage, including the reasonable

cost of the loss of use to the surface landowner's property.

(3)  If the department finds the damage to be caused by

drilling or exploration, it shall issue a written order

directing the owner of the drill, well operator or oil or gas

explorer to make repairs within six months or a longer period

if the department finds that occurrence of subsequent damage

may occur to the same building as a result of drilling or

exploration.

(d)  (1)  In no event shall the owner, well operator or oil

or gas explorer be liable for repairs or compensation in an

amount exceeding the cost of replacement of the damaged

structure, ground or vegetation, including the cost of loss

of use to the property.

(2)  Notwithstanding the provisions of paragraph (1), the

surface landowner shall be entitled to additional payment for

reasonable, incidental costs agreed to by the parties or

approved by the department.

(e)  If the owner of the drill, well operator or oil or gas

explorer fails to repair or compensate for any damage within six

months or a longer period as the department has established or

fails to perfect an appeal of the department's order directing

repair or compensation, the department shall issue an order and

take any actions that are necessary to compel compliance with

the requirements of this section, including, but not limited to,

a cessation order or a permit revocation.

Section 3.  This act shall take effect in 60 days.