PRIOR PRINTER'S NOS. 1239, 1402 PRINTER'S NO. 2239
No. 1063 Session of 1977
INTRODUCED BY MESSRS. SWEET, B. F. O'BRIEN, TAYLOR, D.M. FISHER,
LEHR, BURNS, GAMBLE, TRELLO, McCALL, DeMEDIO, YAHNER,
GOODMAN, MISCEVICH, ABRAHAM, GATSKI AND LAUGHLIN, MAY 2, 1977
AS RE-REPORTED FROM COMMITTEE ON MINES AND ENERGY MANAGEMENT,
HOUSE OF REPRESENTATIVES, AS AMENDED, NOVEMBER 1, 1977
AN ACT
1 Amending the act of November 30, 1955 (P.L.756, No.225),
2 entitled, as amended, "An act relating to coal mining, well
3 operations and the underground storage of gas, except in
4 storage reservoirs excavated in rock formations specifically
5 for storage purposes, the safety of personnel and facilities
6 employed therein, and the protection of the people residing
7 in the area and their property rights; prescribing the rights
8 and duties of well operators, before, during, and after the
9 drilling of wells for the production, extraction or storage
10 of any gas, petroleum or other liquid; regulating the
11 underground storage of gas under workable coal seams;
12 prescribing the rights and duties of owners and operators of
13 coal mines in relation to wells and underground storage
14 areas; granting certain corporations a limited right of
15 eminent domain to appropriate interests in real property for
16 surface and sub-surface operations in connection with the
17 underground storage of gas; creating the Oil and Gas Division
18 of the Department of Mines and defining its personnel, powers
19 and duties; providing for hearings and the procedures to be
20 followed therein and imposing duties upon the courts and
21 providing methods for the enforcement of the provisions of
22 this act and imposing penalties," changing definitions,
23 adding definitions, providing for REGISTRATION FEES, PERMIT <--
24 FEES, registration and notice to the department of engaging
25 in certain operations; requiring indemnity bonds and other <--
26 security to be filed and executed upon certain conditions;
27 requiring safety devices, providing for capping, well casing,
28 shutting in, abandoning, DESERTING and inactivating of wells <--
29 and reporting of production data, further providing for
30 enforcement, and providing civil penalties, CREATING AN OIL <--
31 AND GAS FUND AND MAKING AN APPROPRIATION.
32 The General Assembly of the Commonwealth of Pennsylvania
1 hereby enacts as follows:
2 Section 1. Clauses (2), (6), (7), (10), (15), (17), (18) and <--
3 (24) of section 102 AND SECTION 104, act of November 30, 1955 <--
4 (P.L.756, No.225), known as the "Gas Operations Well-Drilling
5 Petroleum and Coal Mining Act," clause (24) added July 31, 1968
6 (P.L.881, No.265), are amended and the section 102 is amended by <--
7 adding clauses to read:
8 Section 102. Definitions.--As used in this act:
9 * * *
10 (2) "Operating coal mine" means (i) a coal mine which is
11 producing coal or has been in production of coal at any time
12 during the twelve months immediately preceding the date its
13 status is put in question under this act and any worked out or
14 abandoned coal mine connected underground with or contiguous to
15 such operating coal mine as herein defined [and] or (ii) any
16 coal mine to be established or reestablished as an operating
17 coal mine in the future pursuant to subsection (c) of section
18 303 of this act.
19 * * *
20 (6) "WELL" WHEN USED IN THIS ACT MEANS A BORE HOLE OR CORE <--
21 HOLE DRILLED OR BEING DRILLED FOR THE PURPOSE OF OR TO BE USED
22 FOR LOCATING, PREPARING, PRODUCING, EXTRACTING OR INJECTING ANY
23 GAS, MINERAL, PETROLEUM OR OTHER LIQUID BUT EXCLUDING BORE HOLES
24 DRILLED TO PRODUCE POTABLE WATER TO BE USED AS SUCH.
25 (7) "DIVISION" MEANS THE [OIL AND GAS DIVISION OF THE
26 DEPARTMENT OF MINES] DEPARTMENT OF ENVIRONMENTAL RESOURCES.
27 * * *
28 (10) "GAS" MEANS ANY [NATURAL, MANUFACTURED OR BY-PRODUCT
29 GAS OR ANY MIXTURE THEREOF] FLUID, EITHER COMBUSTIBLE OR
30 NONCOMBUSTIBLE WHICH IS PRODUCED IN A NATURAL STATE FROM THE
19770H1063B2239 - 2 -
1 EARTH AND WHICH MAINTAINS A GASEOUS OR RAREFIED STATE AT
2 ORDINARY TEMPERATURE AND PRESSURE.
3 * * *
4 (15) "CEMENT" OR "CEMENT GROUT" MEANS HYDRAULIC CEMENT
5 PROPERLY MIXED WITH WATER ONLY OR ANY MIXTURE OF HYDRAULIC
6 CEMENT WITH SUCH OTHER MATERIALS ADEQUATE FOR BONDING OR SEALING
7 OF WELL BORES AS THE DEPARTMENT SHALL PRESCRIBE.
8 * * *
9 (17) "OIL" MEANS [THE SAME AS THE WORD "PETROLEUM."]
10 HYDROCARBONS REGARDLESS OF GRAVITY WHICH ARE PRODUCED AT THE
11 WELLHEAD IN LIQUID FORM.
12 (18) "Person" means any individual, association, partnership
13 [or] corporation, political subdivision or agency of the State
14 or Federal Government.
15 * * *
16 (24) "Completion of a well" shall mean the date [after
17 treatment, if any, that the well is properly equipped for
18 production of oil or gas; or if the well is dry, the date the
19 well is abandoned] on which drilling ceases on a well, unless
20 the operator informs the department that the drilling will
21 recommence within thirty days and drilling does in fact
22 recommence.
23 (25) "Capping" means the shutting off of the flow of the gas
24 or oil from a well after it has been completed but prior to
25 connection to a pipeline or other product gathering system.
26 (26) "Shutting in" means ceasing production from a well any
27 time after it has been connected to a pipeline or other product
28 gathering system.
29 (27) "Oil" means hydrocarbons regardless of gravity which <--
30 are produced at the wellhead in liquid form.
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1 (28) "Gas" means any fluid, either combustible or
2 noncombustible which is produced in a natural state from the
3 earth and which maintains a gaseous or rarefied state at
4 ordinary temperature and pressure.
5 (29) "Abandoned" a well shall be deemed abandoned for the
6 purposes of this act when it has been inactive for more than one
7 year and it is not adequately equipped for production.
8 (30) (27) "Department" means the Department of <--
9 Environmental Resources.
10 (31) "Association" means an unincorporated organization of <--
11 individuals voluntarily joined together for a common purpose or
12 purposes acting in a corporate mode or form.
13 (32) (28) "Drilling" shall include drilling, redrilling or <--
14 drilling deeper.
15 SECTION 104. DECLARATION OF PUBLIC POLICY.--THE PROVISIONS <--
16 OF THIS ACT SHALL BE LIBERALLY CONSTRUED TO EFFECT THE SAFETY OF
17 PERSONNEL AND FACILITIES EMPLOYED IN THE UNDERGROUND STORAGE OF
18 GAS AND THE PROTECTION OF THE PEOPLE RESIDING IN THE AREA WHERE
19 SUCH GAS IS STORED AND THEIR PROPERTY RIGHTS, AND THE SAFETY OF
20 PERSONS AND FACILITIES EMPLOYED IN THE MINING OF COAL.
21 Section 2. The act is amended by adding sections to read:
22 Section 105. Registration.--Every well operator shall be
23 required to register with the department within thirty days of
24 becoming engaged in such operation AND SHALL RENEW SAID <--
25 REGISTRATION ANNUALLY. Any well operator PERSON operating a well <--
26 on the effective date of this act, shall be required to register
27 with the department within six months of the effective date of
28 this act. AN ANNUAL REGISTRATION FEE OF FIFTY DOLLARS ($50) <--
29 SHALL BE PAID TO THE DEPARTMENT ON THE INITIAL REGISTRATION AND
30 UPON EACH ANNUAL RENEWAL THEREOF.
19770H1063B2239 - 4 -
1 Section 106. Notification of Transfer.--The well operator of
2 any well shall notify the department, in writing, in such form
3 as the department may direct of the sale, assignment, transfer,
4 conveyance, or exchange by the well operator or to the well
5 operator of such well within thirty days after such sale,
6 assignment, conveyance, or exchange. The notice shall contain
7 the following:
8 (1) The name and address of the person to whom such well was
9 sold, assigned, transferred, conveyed, or exchanged.
10 (2) The identification number and location, by county and
11 township, of the well.
12 (3) The date of the sale, assignment, transfer, conveyance
13 or exchange.
14 (4) The date when possession was relinquished by the owner
15 or operator.
16 (5) And such other information as may be required by the
17 department.
18 Section 3. Subsections (a) and (b) of section 201 of the
19 act, amended July 31, 1968 (P.L.881, No.265), are amended and
20 the section is amended by adding subsections to read:
21 Section 201. Well Operator's Responsibility Before and
22 During Drilling.--(a) Before drilling any well or altering any
23 unpermitted well, the well operator shall submit an application
24 to the department and have a plat prepared by a competent
25 engineer or surveyor (on a form to be furnished by the
26 [division] department) showing the political subdivision and
27 county in which the tract of land upon which the well to be
28 drilled is located, the name of the lessor or landowner, the
29 name of the owner or operator of all known underlying workable
30 coal seams, if any, the acreage in the tract to be drilled, the
19770H1063B2239 - 5 -
1 proposed location of the well determined by survey, the courses
2 and distances of such location from two or more permanent points
3 or landmarks on said tract, the proposed angle and direction of
4 such well, if the well is to be deviated substantially from a
5 vertical course and the number or other identification to be
6 given the well, indicating the workable coal seams, if any,
7 underlying said tract which are to be cased off in accordance
8 with section 204 of this act and shall [forward, by registered
9 mail, copies of the plat to the division] file the plat with the
10 department and the [division] department shall in turn forward,
11 by [registered] certified mail, a copy of said plat to the owner
12 and lessee, if any, of such coal WHO HAS FILED NOTICE OF <--
13 OWNERSHIP OR TENANCY RIGHTS IN WORKABLE COAL WITH THE DEPARTMENT
14 and every coal operator, operating in any of said seams of coal,
15 who has the right to file objections under section 202 and who
16 has mapped the same and filed his maps with the [Department of <--
17 Mines] DEPARTMENT as required by law. If the well operator <--
18 submits to the [division] department written approval of the
19 proposed well location by the coal operator, LESSEE or owner, if <--
20 any, of the coal underlying the proposed well location and no
21 objections are raised by the [division] department within [ten]
22 thirty FIFTEEN days of filing or if no such approval has been <--
23 submitted and no objections are made to such proposed well
24 location within [ten] thirty FIFTEEN days from receipt of such <--
25 notice by the coal operator or owner, if any, or by the
26 [division] department, the same shall be filed and become a
27 permanent record of such location, subject to inspection at any
28 time by any interested person, and the [division] department
29 shall forthwith issue a drilling permit to the well operator and
30 the well operator may proceed with the drilling of the well at
19770H1063B2239 - 6 -
1 the exact location shown on the plat: Provided, however, That in
2 non-coal areas where more than one well is to be drilled as part
3 of the same development project, only the first well of the
4 project need be located by survey. The remaining wells of the
5 project shall be shown on the plat with courses and distances
6 from the first well plainly marked. Prior to drilling each of
7 the additional project wells, the well operator shall notify the
8 [division] department of his intention, and a permit will be
9 issued forthwith. WHENEVER DURING THE DRILLING OF ANY WELL WHICH <--
10 IS NOT UNDERLAIN BY AN OPERATING COAL MINE, THE WELL OPERATOR
11 SHALL ENCOUNTER CONDITIONS OF SUCH A NATURE AS TO RENDER
12 CONTINUED DRILLING IN THE SAME BORE HOLE MORE HAZARDOUS THAN
13 USUAL, OR OTHERWISE IMPOSSIBLE, THEN THE WELL OPERATOR SHALL
14 HAVE THE RIGHT, UPON VERBAL NOTICE TO THE APPROPRIATE OIL AND
15 GAS INSPECTOR, TO PLUG IMMEDIATELY SUCH BORE HOLE AND TO
16 COMMENCE A NEW BORE HOLE NOT MORE THAN TWENTY FEET DISTANT.
17 WITHIN TEN DAYS OF COMMENCEMENT OF SUCH NEW BORE HOLE, THE WELL
18 OPERATOR SHALL FILE AN AMENDED PLAT WITH THE DIVISION BY
19 CERTIFIED MAIL.
20 (b) It shall be the duty of the well operator to keep a
21 driller's log of [such well] ANY WELL DRILLED. Such log shall <--
22 show the character, thickness and depth of the formations passed
23 through or encountered in the drilling of such well and show the
24 depth at which all gas, oil and water were encountered. The log
25 shall show whether the well is productive of gas, oil or water,
26 the volume or quantity thereof and the initial rock pressure of
27 such well which has been taken for a period of not less than
28 forty-eight hours. A copy of this log shall be furnished to the
29 [division] department within thirty days after the completion of
30 the well and it shall be kept on file by the [division]
19770H1063B2239 - 7 -
1 department. Within ninety days after the completion of drilling
2 or recompletion of a well IF REQUESTED BY THE DEPARTMENT, the <--
3 operator shall submit a copy of the well log and the electrical,
4 radioactive or other similar conventional log if they have been
5 run. In addition, IF REQUESTED BY THE DEPARTMENT, as soon as <--
6 practicable, operators shall file a copy of drill stem test
7 charts, formation water analysis, porosity, permeability or
8 fluid saturation measurements, core analysis and lithologic log
9 or sample description as compiled: Provided, That no such
10 information shall be required unless the operator has compiled
11 such information in the ordinary course of business. No
12 interpretation of the data is to be filed.
13 * * *
14 (d) Within thirty days after the completion of any well,
15 drill cuttings, if requested, shall be submitted to the
16 department. The department shall notify, prior to commencement
17 of drilling, the operator or operators to collect, for the
18 department, drill cuttings representing each run drilled in
19 cable tool wells and each ten feet of distance drilled in rotary
20 wells. The samples must be washed unless the well is drilled
21 with rotary tools using air or gas as a drilling fluid.
22 Containers for such cuttings will be furnished by the
23 department. Cores taken when drilling wells for oil and gas
24 shall be available in their entirety as recovered, to authorized
25 representatives of the department for inspection and sampling,
26 provided such sampling shall not involve the removal of any
27 complete section of such core, except as such removal is
28 authorized by the operator or operators controlling the well.
29 (e) All information furnished under subsection (b) or (d)
30 hereof shall be kept confidential for one year after the date
19770H1063B2239 - 8 -
1 the information is required to be filed hereunder, unless IF the <--
2 operator gives written permission to release such information at <--
3 an earlier date. REQUESTS SUCH CONFIDENTIAL TREATMENT AT THE <--
4 TIME THE INFORMATION IS SUBMITTED TO THE DEPARTMENT. For good
5 cause shown by the operator, the department may extend the
6 period of confidentiality for one year. The total period of
7 confidentiality shall not exceed three years.
8 Section 4. The act is amended by adding sections to read: <--
9 Section 201.1. Indemnity Bond; Filing and Execution;
10 Contents; Conditions.--Every person, other than a political
11 subdivision or agency of the State or Federal Government who
12 engages in the drilling, redrilling, deepening, pulling casing,
13 inactivating, abandoning, shutting in, or capping of any well,
14 or in any operation permanently altering in any manner the
15 casing of any well shall file with the department an individual
16 indemnity bond in an amount to be determined by the department
17 based upon the total estimated cost to the Commonwealth of any
18 damage which may be caused by failure to comply with the
19 provisions of this act in such operation or operations for each
20 well so drilled, redrilled, deepened, casing pulled,
21 inactivated, abandoned, shut in, capped or permanently altered.
22 The amount of each individual bond shall not be less than $3,000
23 nor more than $10,000. The bond shall be filed with the
24 department at the time of the filing of the plat as provided in
25 section 201(a). The bond shall be executed by such person, as
26 principal, and by an authorized surety company, as surety,
27 conditioned that the principal named in the bond shall
28 faithfully comply with all the provisions of this act, in
29 drilling, redrilling, deepening, pulling casing, inactivating,
30 abandoning, shutting in, capping or permanently altering any
19770H1063B2239 - 9 -
1 well or wells covered by the bond, and shall secure the
2 Commonwealth against all losses, charges, and expenses incurred
3 by it to obtain such compliance by the principal named in the
4 bond.
5 The conditions of the bond shall be stated in substantially
6 the following language:
7 "If said , the above bounden principal, shall
8 well and truly comply with all the provisions of the act of
9 November 30, 1955 (P.L.756, No.225), known as the "Gas
10 Operations Well-Drilling Petroleum and Coal Mining Act," and
11 shall obey all lawful orders of the department, subject to
12 subsequent appeal as provided by law, and shall pay all charges,
13 costs, and expenses incurred by the department in respect of
14 such well or wells or the property or properties of said
15 principal, or assessed against such well or wells or the
16 property or properties of such principal, in pursuance of the
17 provisions of said department, then this obligation shall be
18 void; otherwise it shall remain in full force and effect."
19 Section 201.2. Bond for drilling or altering one or more
20 wells; amount; execution; form and contents.--Any person who
21 engages in the drilling, redrilling, deepening, pulling casing,
22 inactivating, abandoning, shutting in, or capping of any well,
23 or in any operation permanently altering in any manner the
24 casing of one or more wells at any time, may file with the
25 department one blanket indemnity bond in an amount to be
26 determined by the department based upon the total estimated cost
27 to the Commonwealth of any damage which may be caused by failure
28 to comply with the provisions of this act in such operation or
29 operations to cover all his operations in drilling, redrilling,
30 deepening, pulling casing, inactivating, abandoning, shutting
19770H1063B2239 - 10 -
1 in, or capping of any well, or permanently altering any of his
2 wells in the Commonwealth in lieu of an individual indemnity
3 bond for each well drilled, redrilled, deepened, casing pulled,
4 inactivated, abandoned, shut in, capped or permanently altered.
5 The amount of the blanket bond shall not be less than $30,000
6 nor more than $100,000. The bond shall be executed by such
7 person as principal, and by an authorized surety company, as
8 surety, and shall be in substantially the same language and upon
9 the same conditions as provided in section 201.1.
10 Section 201.3. Cash Bond, Deposit or Security in Lieu of
11 Surety Bond.--In lieu of the bond required by sections 201.1,
12 and 201.2, a person may, with the written approval of the
13 department, file a cash bond in the applicable amount, or
14 negotiable bonds of the United States Government or the
15 Commonwealth of Pennsylvania, the Pennsylvania Turnpike
16 Commission, the General State Authority, the State Public School
17 Building Authority, or any municipality within the Commonwealth
18 in the applicable amount, with the State Treasurer. Such bond or
19 security filed in lieu thereof shall be subject to all
20 conditions set forth in sections 201.1, 201.2, 201.3, and 201.4.
21 Section 201.4. Termination and cancellation of individual or
22 blanket indemnity bond.--Any individual or blanket indemnity
23 bond issued in compliance with this act may, with the consent of
24 the department, be terminated and cancelled and the surety be
25 relieved of all obligations thereunder when the well or wells
26 covered by such bond have been properly plugged or another valid
27 bond has been substituted therefor. Should the person who has
28 filed a blanket bond properly plug a portion of his wells
29 covered by the bond, the bond may, with the consent of the
30 department, be terminated and cancelled and the surety be
19770H1063B2239 - 11 -
1 relieved of all obligations thereunder upon the filing by such
2 person of an individual bond for each well which is still
3 producing or which he is still engaged in drilling, redrilling,
4 deepening, pulling casing, inactivating, abandoning, shutting
5 in, capping, or permanently altering. Liability as to individual
6 wells that have been drilled and plugged under a blanket bond
7 may also be terminated with the consent of the department.
8 Section 201.5. Associations.--In lieu of the bond required
9 by sections 201.1 and 201.2, any association whose members are
10 engaged in the drilling, redrilling, deepening, pulling casing,
11 inactivating, abandoning, shutting in, or capping of any well,
12 or in any operation permanently altering in any manner the
13 casing of one or more wells at any time, may file with the
14 department a cash bond, deposit or security in the amount of
15 $100,000, as provided in section 201.3, to secure any damage to
16 the Commonwealth which may be caused by failure of its members
17 to comply with the provisions of this act in such operation or
18 operations to cover all their operations in drilling,
19 redrilling, deepening, pulling casing, inactivating, abandoning,
20 shutting in, or capping any well, or permanently altering any of
21 their wells in the Commonwealth: Provided, however, That such
22 association file with the department a list of its members to be
23 covered by such cash bond, deposit or security. The right of an
24 association to act as a surety for its members shall be limited
25 to the filing of such cash bond, deposit or security, in the
26 amount provided in this section and shall not include any right
27 to file any of the other bonds provided by this act.
28 Section 5 4. Subsections (a), and (c) AND (D) of section <--
29 202, SUBSECTION (D) AMENDED JULY 31, 1968 (P.L.881, NO.265), are <--
30 amended to read:
19770H1063B2239 - 12 -
1 Section 202. Drilling Permit, Agreed Location of Wells,
2 Docket of Proceedings.--(a) In case any well location referred
3 to in subsection (a) of section 201 is made so that the well
4 when drilled will penetrate anywhere within the outside coal
5 boundaries of any operating coal mine or coal mine already
6 projected and platted but not yet being operated or within one
7 thousand linear feet beyond such boundaries and the well when
8 drilled or the pillar of coal about the well will, in the
9 opinion of the coal owner or operator, unduly interfere with or
10 endanger such mine, then the coal owner or operator affected
11 shall have the right to file objections in accordance with
12 subsection (h) of section 501 to such proposed location within
13 [ten] thirty FIFTEEN days of [the receipt by the coal operator] <--
14 FILING of the plat provided for in subsection (a) of section 201 <--
15 BY THE WELL OPERATOR. An alternative location at which the <--
16 proposed well could be drilled to overcome such objections
17 shall, if possible, be indicated. If no such objections to the
18 proposed location are filed or if none are raised by the
19 [division] department within [ten] thirty FIFTEEN days after <--
20 [receipt] FILING of the plat [by the coal operator or owner], or <--
21 if written approval by the coal operator or owner of the
22 location is filed with the [division] department and no
23 objections are raised by the [division] department within [ten] <--
24 FIFTEEN days, of filing the [division] department shall <--
25 forthwith issue to the well operator a drilling permit
26 authorizing the well operator to drill at such location.
27 * * *
28 (c) Within one hundred and twenty days after the
29 commencement of drilling operations, the coal operator shall
30 accurately locate the well by a closed survey on the same datum
19770H1063B2239 - 13 -
1 as the mine workings or coal boundaries are mapped and file the
2 results of the survey with the [division] DEPARTMENT and <--
3 forward, by registered mail, a copy to the well operator. The
4 coal operator shall file with the department such proof of
5 service as it may require. nor shall an unpermitted well be <--
6 altered in any manner without a permit issued under this
7 section.
8 (D) NO WELL SHALL BE DRILLED EXCEPT IN ACCORDANCE WITH A <--
9 PERMIT ISSUED UNDER THIS SECTION, NOR SHALL AN UNPERMITTED WELL
10 BE ALTERED IN ANY MANNER WITHOUT A PERMIT ISSUED UNDER THIS
11 SECTION.
12 Section 6 5. The act is amended by adding a section to read: <--
13 Section 202.1. Permits.--(a) Every application for a gas or
14 oil well permit shall be accompanied by a fifty dollar ($50) ONE <--
15 HUNDRED DOLLARS ($100) permit fee. SAID FEES SHALL BE PAYABLE TO <--
16 THE OIL AND GAS FUND CREATED BY THIS ACT.
17 (b) If the well operator in an application for a permit is a
18 corporation, partnership or a nonresident of the Commonwealth,
19 then there shall be designated the name and address of an agent
20 for such operator who shall be the attorney in fact for the
21 operator and who shall be a resident of the Commonwealth upon
22 whom notices, orders or other communications issued pursuant to
23 this act or the regulations adopted hereunder may be served, and
24 upon whom process may be served. Every well operator required to
25 designate an agent under this section shall within five days
26 after the termination of such designation notify the department
27 of such termination and designate a new agent.
28 (c) The department shall have the right to deny a permit to
29 any well operator who is in violation of any of the provisions
30 of the act with respect to any other well or wells of which he
19770H1063B2239 - 14 -
1 is the operator. THE DEPARTMENT'S RIGHT TO DENY A PERMIT UNDER <--
2 THIS SECTION SHALL NOT BE EFFECTIVE UNTIL A FINAL DETERMINATION
3 HAS BEEN MADE OF ANY ALLEGED VIOLATION.
4 Section 7 6. Section 204 and section 205 of the act amended <--
5 July 31, 1968 (P.L.881, No.265), are amended to read:
6 Section 204. Method of Casing Through Coal Seams.--(a) When
7 a well is drilled at a location where the coal has been removed
8 from only one seam, the hole shall be drilled at least thirty
9 feet below the coal seam and of a sufficient size to permit the
10 placing of a steel pipe liner not less than ten inches in
11 diameter and of at least one-quarter inch wall thickness. The
12 liner shall extend from a point not less than twenty-five feet
13 below the coal seam to a point not less than twenty-five feet
14 above it. The bottom end of the liner shall be fastened and
15 sealed to the casing and the casing shall be centrally located
16 within the liner, the casing and liner to be run and cemented
17 when the well is drilled at least thirty feet but not more than
18 fifty feet below the coal seam. The annular space between said
19 casing and liner shall be filled with bentonitic mud, cement or
20 such nonporous material as the [division] DEPARTMENT may approve <--
21 pursuant to an application filed under section 207. The casing
22 shall be raised at least ten feet off the bottom of the hole and
23 cement shall be placed in the well through the casing to a depth
24 of at least twenty feet. After the cement has been placed, the
25 casing shall be lowered to the bottom of the hole. In each case,
26 where cement is used to set such liners or casing strings,
27 sufficient time shall be allowed for the proper setting of the
28 cement before drilling is resumed. The casing string shall be
29 equipped with either an approved packer or casing shoe. A liner
30 may be run and cemented as a separate string of pipe: Provided,
19770H1063B2239 - 15 -
1 however, That the liner is run and cemented when the well is
2 drilled at least thirty feet but not more than fifty feet below
3 the coal seam; or such alternate method of protecting the coal
4 seam may be employed as the [division] DEPARTMENT may approve <--
5 pursuant to an application filed under section 207. [Such
6 representative of the division as the deputy secretary shall
7 have designated] THE DEPARTMENT and the coal operator shall be <--
8 given at least seventy-two hours notice by the well operator
9 when the work described above is to be done.] The department and <--
10 the coal operator shall be given at least five days notice by
11 certified mail by the well operator when the work described
12 above is to be done.
13 (b) When a well is drilled at a location where the coal has
14 been removed from two or more seams, such liner shall extend not
15 less than twenty-five feet below the lowest seam penetrated and
16 shall extend to a point not less than twenty-five feet above the
17 highest such seam. In such multiple coal seams in a location
18 from which the coal has been removed, the liner may be run and
19 cemented as a separate string of pipe: Provided, however, That
20 the liner shall be run and cemented when the well is drilled at
21 least thirty feet and not more than fifty feet below the lowest
22 coal seam; or such alternate method of protecting the coal seams
23 may be employed as the [division] DEPARTMENT may approve <--
24 pursuant to an application filed under section 207. [Such
25 representative of the division as the deputy secretary shall
26 have designated] THE DEPARTMENT and the coal operator shall be <--
27 given at least seventy-two hours notice by the well operator
28 when the casing is to be cemented through the coal seam.] The <--
29 department and the coal operator shall be given at least five
30 days notice by certified mail by the well operator when the work
19770H1063B2239 - 16 -
1 described above is to be done.
2 (c) A well penetrating one or more workable coal seams in a
3 location from which the coal has not been removed shall be
4 drilled to such depth and of such size as will permit the
5 placing of casing and packers in the hole at such points and in
6 such manner as will exclude all oil or gas from the coal seam,
7 except such as may be found naturally in the coal seam itself.
8 Each string of casing run in the hole shall be provided with a
9 steel casing, shoe collar, packer or other suitable device
10 firmly fixed on the bottom of such string of casing. The outer
11 string of casing run through any workable coal seam shall be of
12 at least one-quarter inch wall thickness and shall be seated at
13 least thirty feet below such coal seam or, if run through more
14 than one workable coal seam, then at least thirty feet below the
15 lowest of such coal seams, in at least twenty feet of cement,
16 bentonitic mud or nonporous material or by such alternate method
17 as the [division] DEPARTMENT may approve pursuant to an <--
18 application filed under section 207 and such casing string shall
19 extend to the surface. The space behind the largest diameter
20 casing extending through a workable coal seam or seams shall be
21 filled to the extent possible to the surface with cement,
22 bentonitic mud or such nonporous material or by such alternate
23 method as the [division] DEPARTMENT may approve pursuant to an <--
24 application filed under section 207. [Such representative of the
25 division as the deputy secretary shall have designated] THE <--
26 DEPARTMENT and the coal operator or owner shall be given at
27 least seventy-two hours notice by the well operator when the
28 well is to be cased through such coal seam.] The department and <--
29 the coal operator shall be given at least five days notice by
30 certified mail by the well operator when the work described
19770H1063B2239 - 17 -
1 above is to be done.
2 * * *
3 Section 205. Notice of Intention to Plug a Well and Filing
4 of Plugging Certificate.--(a) Prior to the abandonment of any
5 well in an area underlain by a workable coal seam, the well
6 operator shall notify the coal operator and the owner of all
7 known workable coal seams to whom notices are required to be
8 given under section 201 and [such representative of the division
9 as the deputy secretary shall have designated,] the department
10 of his intention to plug and abandon any such well and submit a
11 plat (on a form to be furnished by the [division] department)
12 showing the location of the well and fixing the time at which
13 the work of plugging will be commenced, which time shall be not
14 less than [seventy-two hours after the time when such notice is <--
15 received, five days after the mailing of such notice in order <--
16 that their representatives may be present at the plugging of the
17 well. Such notice shall be given by certified mail. Such notice <--
18 may be waived by the [division] department and said coal
19 operator or owner and either of them may likewise waive his
20 right to be present but such waiver shall be in writing and a
21 copy thereof attached to notice of abandonment, filed with the
22 [division] department under this section. Whether or not such
23 representatives appear, the well operator may, if he has fully
24 complied with the requirements of this section, proceed, at the
25 time fixed, to plug the well in the manner hereinafter
26 described. When such plugging has been completed, a certificate
27 shall be prepared (on a form to be furnished by the [division]
28 department) by two experienced and qualified men who
29 participated in the work setting forth the time and manner in
30 which the well was plugged. One copy of this certificate shall
19770H1063B2239 - 18 -
1 be mailed to each coal operator or owner to whom notice was
2 given by [registered] certified mail and another copy shall be
3 mailed to the [division] department.
4 (b) Prior to the abandonment of any well, EXCEPT AN <--
5 UNCOMPLETED BORE HOLE PLUGGED IMMEDIATELY UPON SUSPENSION OF
6 DRILLING UNDER PROVISONS OF SECTION 201(A), in an area not
7 underlain by a workable coal seam, the well operator shall
8 notify the [division or such representative of the division as
9 the deputy secretary shall have designated] department of his
10 intention to plug and abandon any such well and submit a plat
11 (on a form to be furnished by the [division] department) showing
12 the location of the well and fixing the time at which the work
13 of plugging will be commenced, which time shall not be less than
14 seventy-two hours nor more than thirty days after the time of
15 mailing such notice, in order that the [division] department
16 representative may be present at the plugging of the well. Such <--
17 notice shall be given by certified mail. Such notice or waiting
18 period may be [verbally] waived in writing by the [division or <--
19 its representative] department: Provided, however, That in non-
20 coal areas where more than one well has been drilled as part of
21 the same development project, and these wells are now to be
22 plugged, it is required that the district oil and gas
23 representative be given seventy-two hours notice prior to
24 plugging the first well of such project subject to waiver of
25 notice described herein. [In the plugging of subsequent wells on
26 this project it shall be the responsibility of the division
27 representative to learn when this work is to be continued.] In
28 the plugging of subsequent wells no additional notice shall be
29 required if the plugging on the project is continuous, if . IF <--
30 the plugging of subsequent wells is delayed for any reason,
19770H1063B2239 - 19 -
1 notice shall be given to the department of the continuation of
2 such project. Whether or not such [division] department
3 representative appears, the well operator may, if he has fully
4 complied with the requirements of this section, proceed at the
5 time fixed to plug the well in the manner hereinafter described.
6 When such plugging has been completed a certificate shall be
7 prepared, (on a form to be furnished by the [division]
8 department) by two experienced and qualified men who
9 participated in the work, setting forth the time and manner in
10 which the well was plugged. A copy of this certificate shall be
11 mailed to the [division] department.
12 (C) WHENEVER ANY WELL IS TO BE ABANDONED IMMEDIATELY AFTER <--
13 COMPLETION OF DRILLING, THE WELL OPERATOR, IF HE HAS INFORMED
14 THE COAL OPERATOR AND THE DEPARTMENT OF THE TIME WHEN DRILLING
15 COMMENCED, SHALL GIVE AT LEAST THIRTY-SIX HOURS NOTICE BY
16 TELEPHONE, CONFIRMED BY CERTIFIED MAIL, TO THE DEPARTMENT AND TO
17 THE COAL OPERATOR, IF ANY, FIXING THE TIME AT WHICH THE WORK OF
18 PLUGGING WILL BE COMMENCED. SUCH NOTICE MAY BE WAIVED IN WRITING
19 BY THE DEPARTMENT AND SAID COAL OPERATOR OR OWNER, AND EITHER OF
20 THEM MAY LIKEWISE WAIVE HIS RIGHT TO BE PRESENT. WHETHER OR NOT
21 ANY REPRESENTATIVE OF THE DEPARTMENT OR OF THE COAL OPERATOR, IF
22 ANY, APPEAR, THE WELL OPERATOR MAY, IF HE HAS FULLY COMPLIED
23 WITH THE REQUIREMENTS OF THIS SECTION, AND NO OBJECTIONS HAVE
24 BEEN RAISED, PROCEED, AT THE TIME FIXED, TO PLUG THE WELL IN THE
25 MANNER PROVIDED BY LAW. THE WELL OPERATOR SHALL PREPARE THE
26 CERTIFICATE OF PLUGGING AND MAIL COPIES OF THE SAME AS PROVIDED
27 IN SUBSECTIONS (A) AND (B).
28 Section 8 7. Section 207 of the act is amended by adding a <--
29 subsection to read:
30 Section 207. Alternative Method.--* * *
19770H1063B2239 - 20 -
1 (c) The department shall have the authority to adopt
2 regulations which provide for REQUIRE the use of alternative <--
3 methods of plugging wells, pulling casing, and protecting coal
4 seams from intrusion by gas, which shall take account of changes
5 in technology, but which will have as their purpose the
6 protection of people working underground, the protection of
7 potable water supplies and the health and safety of the public.
8 Section 9 8. The act is amended by adding sections to read: <--
9 Section 209. Use of Safety Devices to Prevent Blowouts,
10 Explosions, and Fires.--Any person engaged in operating any oil
11 or gas well wherein high pressure gas is known to exist, and any
12 person drilling for oil or gas in any district where the
13 pressure of oil or gas is unknown shall equip the well with
14 casings of sufficient strength, and with such other safety
15 devices as may be necessary, in accordance with methods approved
16 by the department, and shall use every effort and endeavor
17 effectually to prevent blowouts, explosions, and fires.
18 Section 210. Use of Well Casing to Prevent Water
19 Pollution.--The owner or operator of any well on lands producing
20 or reasonably presumed to contain oil or gas shall properly case
21 it with watertight and adequate metal casing, in accordance with
22 methods approved by the department, and shall, under its
23 direction, shut off all water overlying and underlying oil-
24 bearing or gas-bearing strata and prevent any water from
25 penetrating such strata. The owner or operator shall also use
26 every effort and endeavor to prevent damage to life, health,
27 property, and natural resources; to shut out detrimental <--
28 substances from strata containing water suitable for irrigation
29 or domestic purposes and from surface water suitable for such
30 purposes, and to prevent the infiltration of detrimental
19770H1063B2239 - 21 -
1 substances into such strata and into such surface water. AND <--
2 PREVENT POLLUTION OF WATER BEARING STRATA AND WATERS OF THE
3 COMMONWEALTH AS DEFINED BY THE ACT OF JUNE 22, 1937 (P.L.1987,
4 NO.394), KNOWN AS "THE CLEAN STREAMS LAW."
5 Section 211. Plugging of Abandoned Wells; Prima Facie <--
6 Evidence of Abandonment; Appeals from Orders.--The department
7 may order the plugging of any well that has been abandoned
8 whether or not any damage is occurring or threatened by reason
9 of such well. Suspension of drilling operations and removal of
10 drilling machinery is prima facie evidence of abandonment after
11 the elapse of one year unless a request for an extension of time
12 for a period not to exceed an additional six months is
13 theretofore filed. At any time, the department may, for good
14 cause shown, extend these periods.
15 Section 212. Report of Capped Wells.--Every well operator
16 shall file a written report with the Department of Environmental
17 Resources whenever he causes a well to be capped setting forth
18 the reason therefore. Said report shall be sent to the
19 department within thirty days of capping.
20 Section 213 Report of Shut-in-Wells.--Every well operator
21 shall file a written report with the Department of Environmental
22 Resources whenever he causes a well to be shut-in for a period
23 in excess of fifteen days, setting forth the reason therefore.
24 Said report shall be sent to the department within thirty days
25 of shutting in.
26 Section 214 211. Production Data.--(a) Every well operator <--
27 shall notify the Department DEPARTMENT within thirty days of any <--
28 well being placed into production FOR THE FIRST TIME. <--
29 (b) Every well operator shall file a seminnual AN ANNUAL <--
30 report with the department listing certain production data of
19770H1063B2239 - 22 -
1 each well. If such data is not available on an individual well
2 basis in the ordinary course of business, then such data may be
3 provided on a tank, meter or base LEASE basis, and shall <--
4 include, but not be limited to, the following:
5 (1) The amount of oil or gas produced from each well during <--
6 the period indicated.
7 (2) The number of wells drilling, producing, or idle, owned
8 or operated by such person.
9 (1) OPERATOR'S NAME. <--
10 (2) OPERATOR'S ADDRESS.
11 (3) PRODUCING FORMATION WHERE THE WELL IS LOCATED.
12 (4) IDENTIFICATION OF THE WELL.
13 (5) NUMBER AND IDENTIFICATION OF WELLS PRODUCING.
14 (6) NUMBER AND IDENTIFICATION OF INACTIVE WELLS.
15 (7) NUMBER AND IDENTIFICATION OF WELLS CAPPED DURING THE
16 REPORTING PERIOD TOGETHER WITH THE TIME PERIOD EACH WELL WAS
17 CAPPED AND THE REASON THEREFORE.
18 (8) NUMBER AND IDENTIFICATION OF WELLS SHUT-IN FOR MORE THAN
19 NINETY CONSECUTIVE DAYS DURING THE REPORTING PERIOD TOGETHER
20 WITH THE TIME PERIOD EACH WELL WAS SHUT-IN AND THE REASON
21 THEREFORE.
22 (9) THE AMOUNT OF OIL OR GAS PRODUCED FROM EACH WELL DURING
23 THE REPORTING PERIOD.
24 (3) (10) The disposition which was made of the OIL OR gas <--
25 produced from each well, including the names of persons, if any,
26 to whom the OIL OR gas was delivered, and such other information <--
27 regarding the OIL OR gas and the disposition thereof as the <--
28 department may require: PROVIDED, HOWEVER, THAT ANY COMPANY <--
29 SUBJECT TO THE PROVISIONS OF THE ACT OF MAY 28, 1937 (P.L.1053,
30 NO.286), KNOWN AS THE "PUBLIC UTILITY LAW," SHALL NOT BE
19770H1063B2239 - 23 -
1 REQUIRED TO REPORT THE NAMES OF PERSONS TO WHOM THE OIL OR GAS
2 WAS DELIVERED. Upon request and satisfactory showing, a longer
3 interval may be fixed by the department for such reports in the
4 case of any specific owner or operator.
5 (c) The department is hereby authorized to adopt rules and
6 regulations regarding the filing of data pursuant to this
7 section. and sections 212 and 213. <--
8 Section 215 212. Department Staffing.--The department is <--
9 hereby authorized adequate staffing to effectively carry out its
10 duties under this act.
11 Section 10 9. Section 301 of the act is amended by adding a <--
12 subsection to read:
13 Section 301. Filing of Maps and Data by Persons Operating or
14 Proposing to Operate Gas Storage Reservoirs.--* * *
15 (a.1) All persons operating gas storage reservoirs within
16 this State, shall file with the department, within sixty days of
17 the end of each storage year, an annual report showing the
18 operating history of said reservoir including withdrawals and
19 injections of gas, monthly rates and amounts of withdrawal and
20 injection, withdrawals and injection pressure data and amounts
21 of cushion and working gas at the end of that operating year and
22 other data as the department shall, by regulation, require.
23 * * *
24 Section 11 10. Section 503 of the act is amended by adding a <--
25 subsection to read:
26 Section 503. Enforcement.--* * *
27 (e) All oil and gas inspectors shall have the power under
28 this act to issue orders in connection with an inspection under
29 this act, which shall become immediately effective. Such an
30 order shall be followed by a written memorandum of the order
19770H1063B2239 - 24 -
1 from the department.
2 Section 12 11. The act is amended by adding a section <--
3 SECTIONS to read: <--
4 Section 504.1. Civil Penalties.--In addition to proceeding
5 under any other remedy available at law or in equity for a
6 violation of a provision of this act or a rule or regulation of
7 the department or any order of the department, the Environmental
8 Hearing Board, after hearing, may assess a civil penalty upon a
9 person for such violation. Such a penalty may be assessed
10 whether or not the violation was willful. The civil penalty so
11 assessed shall not exceed five thousand dollars ($5,000), plus
12 five hundred dollars ($500) for each day of continued violation.
13 In determining the amount of the civil penalty the board shall
14 consider the willfullness of the violation, damage or injury to
15 the waters of the Commonwealth or their uses, endangerment of
16 the safety of others, costs of remedying the harm, and other
17 relevant factors. It shall be payable to the Commonwealth of
18 Pennsylvania and shall be collectible in any manner provided at
19 law for the collection of debts. If any person liable to pay any
20 such penalty neglects or refuses to pay the same after demand,
21 the amount, together with interest and any costs that may
22 accrue, shall be a lien in favor of the Commonwealth upon the
23 property, both real and personal, of such person but only after
24 same has been entered and docketed of record by the prothonotary
25 of the county where such is situated. The board may, at any
26 time, transmit to the prothonotaries of the respective counties
27 certified copies of all such liens, and it shall be the duty of
28 each prothonotary to enter and docket the same of record in his
29 office, and to index the same as judgments are indexed, without
30 requiring the payment of costs as a condition precedent to the
19770H1063B2239 - 25 -
1 entry thereof.
2 SECTION 504.2. OIL AND GAS FUND.--ALL FINES, CIVIL PENALTIES <--
3 AND PERMIT FEES COLLECTED UNDER THIS ACT SHALL BE PAID INTO THE
4 TREASURY OF THE COMMONWEALTH INTO A SPECIAL FUND TO BE KNOWN AS
5 THE "OIL AND GAS FUND," HEREBY ESTABLISHED, WHICH SHALL BE
6 ADMINISTERED BY THE DEPARTMENT FOR THE PLUGGING AND SEALING OF
7 ABANDONED OIL AND GAS WELLS AND TO COVER THE PURPOSES OF
8 ADMINISTERING THIS ACT, AND FOR SAID PURPOSES THE MONEYS IN THE
9 FUND ARE HEREBY APPROPRIATED TO THE DEPARTMENT.
10 Section 13 12. This act shall take effect immediately IN 90 <--
11 DAYS.
D25L42JLW/19770H1063B2239 - 26 -