| |
| PRIOR PRINTER'S NOS. 2689, 2765, 2777, 2837 | PRINTER'S NO. 3048 |
|
| |
| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
| |
| HOUSE BILL |
|
| |
| |
| |
| Report of the Committee of Conference |
| |
| |
| |
| To the Members of the House of Representatives and Senate: |
| |
| We, the undersigned, Committee of Conference on the part of the Senate and House of Representatives for the purpose of considering House Bill No. 1950, entitled: |
| "An act amending Titles 27 (Environmental Resources) and 58 (Oil and P1:L2Gas) of the Pennsylvania Consolidated Statutes, * * *. |
| Amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes, * * * and P2:L7making a related repeal," |
| |
| respectfully submit the following bill as our report: |
| |
| BRIAN L. ELLIS |
| |
| DAVID L. REED |
| |
| |
| (Committee on the part of the House of Representatives.) |
| |
| JOSEPH B. SCARNATI |
| |
| MARY JO WHITE |
| |
| |
| (Committee on the part of the Senate.) |
| *** This page intentionally left blank *** |
| AN ACT |
| |
|
1 | Amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated |
2 | Statutes, providing for an unconventional gas well fee and |
3 | for transfers from the Oil and Gas Lease Fund; providing for |
4 | distribution of fees and transfers; establishing the Natural |
5 | Gas Energy Development Program; consolidating the Oil and Gas |
6 | Act with modifications and additions relating to definitions, |
7 | well permits, permit objections, comments by municipalities |
8 | and storage operators, well location restrictions, well site |
9 | restoration, protection of water supplies, notification to |
10 | public drinking water systems, containment for unconventional |
11 | wells, transportation records regarding wastewater fluids, |
12 | corrosion control requirements, gathering lines, well control |
13 | emergency response, hydraulic fracturing chemical discharge |
14 | requirements, bonding, air containment emissions, public |
15 | nuisances, enforcement orders, well control emergency cost |
16 | recovery, penalties, civil penalties, inspection and |
17 | production of materials, witnesses, depositions and rights of |
18 | entry, third party liability and inspection reports; |
19 | providing for local ordinances relating to oil and gas |
20 | operations and for responsibility for fee; making an |
21 | appropriation; and making a related repeal. |
22 | The General Assembly of the Commonwealth of Pennsylvania |
23 | hereby enacts as follows: |
24 | Section 1. Title 58 of the Pennsylvania Consolidated |
25 | Statutes is amended by adding parts to read: |
26 | PART I |
27 | (RESERVED) |
28 | PART II |
29 | OVERSIGHT AND DEVELOPMENT |
30 | Chapter |
31 | 23. Unconventional Gas Well Fee |
32 | 25. Oil and Gas Lease Fund |
33 | 27. Natural Gas Energy Development Program |
34 | CHAPTER 23 |
35 | UNCONVENTIONAL GAS WELL FEE |
36 | Sec. |
37 | 2301. Definitions. |
38 | 2302. Unconventional gas well fee. |
39 | 2303. Administration. |
|
1 | 2304. Well information. |
2 | 2305. Duties of department. |
3 | 2306. (Reserved). |
4 | 2307. Commission. |
5 | 2308. Enforcement. |
6 | 2309. Enforcement orders. |
7 | 2310. Administrative penalties. |
8 | 2311. (Reserved). |
9 | 2312. Recordkeeping. |
10 | 2313. Examinations. |
11 | 2314. Distribution of fee. |
12 | 2315. Statewide initiatives. |
13 | 2316. Small business participation. |
14 | 2317. Applicability. |
15 | 2318. Expiration. |
16 | § 2301. Definitions. |
17 | The following words and phrases when used in this chapter |
18 | shall have the meanings given to them in this section unless the |
19 | context clearly indicates otherwise: |
20 | "Average annual price of natural gas." The arithmetic mean |
21 | of the New York Mercantile Exchange (NYMEX) settled price for |
22 | the near-month contract, as reported by the Wall Street Journal |
23 | for the last trading day of each month of a calendar year for |
24 | the 12-month period ending December 31. |
25 | "Company." An entity doing business within this Commonwealth |
26 | and subject to tax under Article III, IV or VI of the act of |
27 | March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of |
28 | 1971. |
29 | "Commission." The Pennsylvania Public Utility Commission. |
30 | "Department." The Department of Environmental Protection of |
|
1 | the Commonwealth. |
2 | "Eligible applicant." Any of the following: |
3 | (1) A county, municipality, council of governments, |
4 | watershed organization, institution of higher education or |
5 | nonprofit organization. |
6 | (2) An authorized organization as defined in 27 Pa.C.S. |
7 | § 6103 (relating to definitions). |
8 | (3) A company, other than a producer. |
9 | "Fee." The unconventional gas well fee imposed under section |
10 | 2302 (relating to unconventional gas well fee). |
11 | "Fund." The Unconventional Gas Well Fund. |
12 | "Highway mileage." The number of miles of public roads and |
13 | streets most recently certified by the Department of |
14 | Transportation as eligible for distribution of liquid fuels |
15 | funds under the act of June 1, 1956 (1955 P.L.1944, No.655), |
16 | referred to as the Liquid Fuels Tax Municipal Allocation Law. |
17 | "Municipality." A borough, city, town or township. |
18 | "Natural gas." A fossil fuel consisting of a mixture of |
19 | hydrocarbon gases, primarily methane, and possibly including |
20 | ethane, propane, butane, pentane, carbon dioxide, oxygen, |
21 | nitrogen and hydrogen sulfide and other gas species. The term |
22 | includes natural gas from oil fields known as associated gas or |
23 | casing head gas, natural gas fields known as nonassociated gas, |
24 | coal beds, shale beds and other formations. The term does not |
25 | include coal bed methane. |
26 | "Number of spud unconventional gas wells." The most recent |
27 | numerical count of spud unconventional gas wells on the |
28 | inventory maintained and provided to the commission by the |
29 | department as of the last day of each month. |
30 | "Population." As follows: |
|
1 | (1) Population of the Commonwealth and population of a |
2 | county shall be determined using the United States Census |
3 | Bureau's most recently released Annual Estimates of the |
4 | Resident Population for Counties of Pennsylvania. |
5 | (2) Population of a municipality shall be determined |
6 | using the United States Census Bureau's most recently |
7 | released Annual Estimates for the Resident Population for |
8 | Incorporated Places in Pennsylvania. |
9 | (3) Population of municipalities not included in the |
10 | report referenced under paragraph (2) shall be determined |
11 | using the United States Census Bureau's most recently |
12 | released Annual Estimates of the Resident Population for |
13 | Minor Civil Divisions in Pennsylvania. |
14 | "Producer." A person or its subsidiary, affiliate or holding |
15 | company that holds a permit or other authorization to engage in |
16 | the business of severing natural gas for sale, profit or |
17 | commercial use from an unconventional gas well in this |
18 | Commonwealth. The term shall not include a producer that severs |
19 | natural gas from a site used to store natural gas that did not |
20 | originate from the site. |
21 | "Spud." The actual start of drilling of an unconventional |
22 | gas well. |
23 | "Stripper well." An unconventional gas well incapable of |
24 | producing more than 90,000 cubic feet of gas per day during any |
25 | calendar month, including production from all zones and |
26 | multilateral well bores at a single well, without regard to |
27 | whether the production is separately metered. |
28 | "Unconventional formation." A geological shale formation |
29 | existing below the base of the Elk Sandstone or its geologic |
30 | equivalent stratigraphic interval where natural gas generally |
|
1 | cannot be produced at economic flow rates or in economic volumes |
2 | except by vertical or horizontal well bores stimulated by |
3 | hydraulic fracture treatments or by using multilateral well |
4 | bores or other techniques to expose more of the formation to the |
5 | well bore. |
6 | "Unconventional gas well." A bore hole drilled or being |
7 | drilled for the purpose of or to be used for the production of |
8 | natural gas from an unconventional formation. |
9 | "Vertical gas well." An unconventional gas well which |
10 | utilizes hydraulic fracture treatment through a single vertical |
11 | well bore and produces natural gas in quantities greater than |
12 | that of a stripper well. |
13 | § 2302. Unconventional gas well fee. |
14 | (a) General rule.--The governing body of a county that has a |
15 | spud unconventional gas well located within its borders may |
16 | elect whether to impose a fee on unconventional gas wells that |
17 | have been spud in the county. |
18 | (a.1) Passage of ordinance.--Within 60 days after the |
19 | effective date of this section, the governing body of a county |
20 | under subsection (a) may adopt an ordinance to impose an |
21 | unconventional gas well fee. The governing body of a county must |
22 | notify the commission and give public notice of its intent to |
23 | adopt the ordinance. |
24 | (a.2) County ordinance.--The ordinance imposing a fee under |
25 | subsection (a.1) shall be clear and in language that is readily |
26 | understandable by a layperson and shall be in the following |
27 | form: |
28 | The county of (insert name) hereby imposes an unconventional |
29 | gas well fee on each unconventional gas well spud in this |
30 | county. |
|
1 | (a.3) Prohibition.-- |
2 | (1) A county subject to this section, in which the |
3 | governing body does not adopt an ordinance imposing an |
4 | unconventional gas well fee within 60 days of the effective |
5 | date of this section shall be prohibited from receiving funds |
6 | under sections 2314(d)(1) (relating to distribution of fee) |
7 | and 2315(a.1)(3) and (5) (relating to Statewide initiatives). |
8 | (2) The prohibition on receiving funds shall remain in |
9 | effect until the county adopts an ordinance imposing an |
10 | unconventional gas well fee. The prohibition shall expire and |
11 | funds may be received for the calendar year following the |
12 | adoption of an ordinance imposing the fee under this section. |
13 | (a.4) Alternate imposition.-- |
14 | (1) If the governing body of a county does not impose an |
15 | unconventional gas well fee under subsection (a), the |
16 | municipalities in the county may compel the imposition of an |
17 | unconventional gas well fee on each unconventional gas well |
18 | spud in the county by adopting resolutions under paragraphs |
19 | (2), (3) and (4). |
20 | (2) Following 60 days but not more than 120 days after |
21 | the effective date of this section, if the governing bodies |
22 | of at least half of the municipalities located in a county or |
23 | municipalities representing at least 50% of the population of |
24 | the county adopt resolutions to impose unconventional gas |
25 | well fees on all unconventional gas wells spud in the county, |
26 | the fee shall take effect. If a resolution is adopted, a copy |
27 | of the resolution shall be transmitted to the governing body |
28 | of the county and the commission. The governing body of a |
29 | municipality that is located in more than one county shall |
30 | transmit a copy of a resolution adopted under this paragraph |
|
1 | to the governing body of each county in which the |
2 | municipality is located. |
3 | (3) The transmittal of resolutions by governing bodies |
4 | under paragraph (2) shall constitute an imposition of the fee |
5 | in that county. The population of a municipality that is |
6 | located in more than one county shall be determined |
7 | separately for each county on the basis of the municipality's |
8 | population within each county. |
9 | (4) Resolutions adopted under this subsection must be |
10 | framed in the following form: |
11 | The (insert name) in the county of (insert name) hereby |
12 | resolves to have the county impose an unconventional gas |
13 | well fee on each unconventional gas well spud in the |
14 | county. |
15 | (5) A municipality which is located in a county that |
16 | does not adopt an ordinance imposing an unconventional gas |
17 | well fee and which does not adopt a resolution under |
18 | paragraphs (2), (3) and (4) shall be prohibited from |
19 | receiving funds under section 2314(d). |
20 | (b) Components.--The fee adopted under subsection (a), (a.1) |
21 | or (a.4) is imposed on every producer and shall apply to |
22 | unconventional gas wells spud in this Commonwealth regardless of |
23 | when spudding occurred. Unconventional gas wells spud before |
24 | the fee is imposed shall be considered to be spud in the |
25 | calendar year prior to the imposition of the fee for purposes of |
26 | determining the fee under this subsection. Prior to adjustment |
27 | under subsection (c), the fee for each unconventional gas well |
28 | shall be determined as follows: |
29 | (1) Year one: |
30 | (i) If the average annual price of natural gas is |
|
1 | not more than $2.25, the fee shall be $40,000 for the |
2 | calendar year in which the unconventional gas well is |
3 | spud. |
4 | (ii) If the average annual price of natural gas is |
5 | greater than $2.25 and less than $3.00, the fee shall be |
6 | $45,000 for the calendar year in which the unconventional |
7 | gas well is spud. |
8 | (iii) If the average annual price of natural gas is |
9 | greater than $2.99 and less than $5.00, the fee shall be |
10 | $50,000 for the calendar year in which the unconventional |
11 | gas well is spud. |
12 | (iv) If the average annual price of natural gas is |
13 | greater than $4.99 and less than $6.00, the fee shall be |
14 | $55,000 for the calendar year in which the unconventional |
15 | gas well is spud. |
16 | (v) If the average annual price of natural gas is |
17 | more than $5.99, the fee shall be $60,000 for the |
18 | calendar year in which the unconventional gas well is |
19 | spud. |
20 | (2) Year two: |
21 | (i) If the average annual price of natural gas is |
22 | not more than $2.25, the fee shall be $30,000 for the |
23 | calendar year following the year in which the |
24 | unconventional gas well is spud. |
25 | (ii) If the average annual price of natural gas is |
26 | greater than $2.25 and less than $3.00, the fee shall be |
27 | $35,000 for the calendar year following the year in which |
28 | the unconventional gas well is spud. |
29 | (iii) If the average annual price of natural gas is |
30 | greater than $2.99 and less than $5.00, the fee shall be |
|
1 | $40,000 for the calendar year following the year in which |
2 | the unconventional gas well is spud. |
3 | (iv) If the average annual price of natural gas is |
4 | greater than $4.99 and less than $6.00, the fee shall be |
5 | $45,000 for the calendar year following the year in which |
6 | the unconventional gas well is spud. |
7 | (v) If the average annual price of natural gas is |
8 | more than $5.99, the fee shall be $55,000 for the |
9 | calendar year following the year in which the |
10 | unconventional gas well is spud. |
11 | (3) Year three: |
12 | (i) If the average annual price of natural gas is |
13 | not more than $2.25, the fee shall be $25,000 for the |
14 | second calendar year following the year in which the |
15 | unconventional gas well is spud. |
16 | (ii) If the average annual price of natural gas is |
17 | greater than $2.25 and less than $3.00, the fee shall be |
18 | $30,000 for the second calendar year following the year |
19 | in which the unconventional gas well is spud. |
20 | (iii) If the average annual price of natural gas is |
21 | greater than $2.99 and less than $5.00, the fee shall be |
22 | $30,000 for the second calendar year following the year |
23 | in which the unconventional gas well is spud. |
24 | (iv) If the average annual price of natural gas is |
25 | greater than $4.99 and less than $6.00, the fee shall be |
26 | $40,000 for the second calendar year following the year |
27 | in which the unconventional gas well is spud. |
28 | (v) If the average annual price of natural gas is |
29 | more than $5.99, the fee shall be $50,000 for the second |
30 | calendar year following the year in which the |
|
1 | unconventional gas well is spud. |
2 | (4) Years 4, 5, 6, 7, 8, 9 and 10: |
3 | (i) If the average annual price of natural gas is |
4 | not more than $2.25, the fee shall be $10,000 for the |
5 | third through ninth calendar years following the year in |
6 | which the unconventional gas well is spud. |
7 | (ii) If the average annual price of natural gas is |
8 | greater than $2.25 and less than $3.00, the fee shall be |
9 | $15,000 for the third through ninth calendar years |
10 | following the year in which the unconventional gas well |
11 | is spud. |
12 | (iii) If the average annual price of natural gas is |
13 | greater than $2.99, the fee shall be $20,000 for the |
14 | third through ninth calendar years following the year in |
15 | which the unconventional gas well is spud. |
16 | (5) Years 11, 12, 13, 14 and 15: |
17 | (i) If the average annual price of natural gas is |
18 | less than $3.00, the fee shall be $5,000 for the 10th |
19 | through 14th calendar years following the year in which |
20 | the unconventional well is spud. |
21 | (ii) If the average annual price of natural gas is |
22 | greater than $2.99, the fee shall be $10,000 for the 10th |
23 | through 14th calendar years following the year in which |
24 | the unconventional well is spud. |
25 | (6) For purposes of this subsection, the fee shall be |
26 | determined using the average annual price of natural gas for |
27 | the calendar year in which the fee is imposed. |
28 | (b.1) Nonproducing unconventional gas wells.--If a spud |
29 | unconventional gas well begins paying the fee imposed under this |
30 | section and is subsequently capped or does not produce natural |
|
1 | gas in quantities greater than that of a stripper well within |
2 | two years after paying the initial fee, then the fee shall be |
3 | suspended: |
4 | (1) The fee shall be reinstated for a calendar year |
5 | during which the unconventional gas well produces natural gas |
6 | in quantities greater than that of a stripper well. |
7 | (2) Each calendar year during which a fee is suspended |
8 | shall not be considered a calendar year following spud for |
9 | purposes of determining the amount of the fee under |
10 | subsection (b). |
11 | (c) Annual adjustment.--Beginning January 1, 2013, the |
12 | commission shall annually adjust the fee amounts under |
13 | subsection (b) to reflect any upward changes in the Consumer |
14 | Price Index for all Urban Consumers for the Pennsylvania, New |
15 | Jersey, Delaware and Maryland area in the preceding 12 months |
16 | and shall immediately submit the adjusted fee amount to the |
17 | Legislative Reference Bureau for publication as a notice in the |
18 | Pennsylvania Bulletin. The fee shall be adjusted by multiplying |
19 | the annual fee amount by any percentage increase to the Consumer |
20 | Price Index for all Urban Consumers for the Pennsylvania, New |
21 | Jersey, Delaware and Maryland area, rounded to the nearest $100. |
22 | The resultant product shall be added to the fee amount and the |
23 | sum shall become the new annual fee amount under subsection (b). |
24 | The annual adjustment under this subsection shall take effect if |
25 | the total number of unconventional gas wells spud in the |
26 | adjustment year exceeds the total number of unconventional gas |
27 | wells spud in the prior year. |
28 | (d) Restimulated unconventional gas wells.-- |
29 | (1) An unconventional gas well which after restimulation |
30 | qualifies as a stripper well shall not be subject to this |
|
1 | subsection. |
2 | (2) The year in which the restimulation occurs shall be |
3 | considered the first year of spudding for purposes of |
4 | imposing the fee under this section if: |
5 | (i) a producer restimulates a previously stimulated |
6 | unconventional gas well following the tenth year after |
7 | being spud by: |
8 | (A) hydraulic fracture treatments; |
9 | (B) using additional multilateral well bores; |
10 | (C) drilling deeper into an unconventional |
11 | formation; or |
12 | (D) other techniques to expose more of the |
13 | formation to the well bore; and |
14 | (ii) the restimulation results in a substantial |
15 | increase in production. |
16 | (3) As used in this subsection, the term "substantial |
17 | increase in production" means an increase in production |
18 | amounting to more than 90,000 cubic feet of gas per day |
19 | during a calendar month. |
20 | (e) Cessation.--Payments of the fee shall cease upon |
21 | certification to the department by the producer that the |
22 | unconventional gas well has ceased production and has been |
23 | plugged according to the regulations established by the |
24 | department. |
25 | (f) Vertical unconventional gas well fee.--The fee for a |
26 | vertical unconventional gas well shall be 20% of the fee |
27 | established in subsections (b) and (c), except that the fee |
28 | under subsection (b)(5) shall not apply. |
29 | § 2303. Administration. |
30 | (a) Fee due date.-- |
|
1 | (1) Except as provided under paragraph (2), the fee |
2 | imposed under this chapter shall be due by April 1, 2013, and |
3 | each April 1 thereafter. The fee shall become delinquent if |
4 | not remitted to the commission on the reporting date. |
5 | (2) For wells spud before January 1, 2012, a fee imposed |
6 | under this chapter shall be due by September 1, 2012. |
7 | (b) Report.--By September 1, 2012, and April 1 of each year |
8 | thereafter, each producer shall submit payment of the fee to the |
9 | commission and a report on a form prescribed by the commission |
10 | for the previous calendar year. The report shall include the |
11 | following: |
12 | (1) The number of spud unconventional gas wells of a |
13 | producer in each municipality within each county that has |
14 | imposed a fee under this chapter. |
15 | (2) The date that each unconventional gas well |
16 | identified under paragraph (1) was spud or ceased the |
17 | production of natural gas. |
18 | (c) Costs of commission.-- |
19 | (1) The commission may impose an annual administrative |
20 | charge not to exceed $50 per spud unconventional gas well on |
21 | each producer, to be paid with the submission under |
22 | subsection (a), to pay for the actual costs of the commission |
23 | to administer and enforce this chapter. |
24 | (2) Within 30 days of the effective date of this |
25 | subsection the commission shall estimate its expenditures |
26 | through June 30, 2012, that will be directly attributable to |
27 | the administration and enforcement of this chapter. The |
28 | commission shall subtract the amount of the administrative |
29 | charges imposed under paragraph (1) and assess any remaining |
30 | balance on all producers subject to the administrative charge |
|
1 | in proportion to the number of wells owned by each producer. |
2 | Producers shall pay the assessments within 30 days of receipt |
3 | of notice from the commission. The amount of the assessment |
4 | may be challenged by a producer consistent with 66 Pa.C.S. § |
5 | 510(c), (d) and (e) (relating to assessment for regulatory |
6 | expenses upon public utilities). Any collections that exceed |
7 | any of the following shall be used to offset the |
8 | administrative charges or other funds received for fiscal |
9 | year 2012-2013: |
10 | (i) The budget amount approved by the General |
11 | Assembly and the Governor for administration and |
12 | enforcement of this chapter and Chapter 33 (relating to |
13 | local ordinances relating to oil and gas operations). |
14 | (ii) The actual expenditures directly attributable |
15 | to the administration and enforcement of this chapter and |
16 | Chapter 33. |
17 | (3) By June 30, 2012, and each June 30 thereafter, the |
18 | commission shall estimate its expenditures for the next |
19 | fiscal year that will be directly attributable to the |
20 | administration and enforcement of this chapter. After |
21 | subtracting any annual administrative charges imposed under |
22 | paragraph (1), amounts received by the commission under |
23 | section 2314(c.1)(2) (relating to distribution of fee) and |
24 | any amounts collected during the prior fiscal year that |
25 | exceeded actual expenditures directly attributable to the |
26 | administration and enforcement of this chapter, the |
27 | commission shall assess the remaining balance on all |
28 | producers subject to the unconventional gas well fee in |
29 | proportion to the number of wells owned by each producer. |
30 | Producers shall pay the assessments within 30 days of the |
|
1 | receipt of notice from the commission. The amount of the |
2 | assessment may be challenged by a producer consistent with 66 |
3 | Pa.C.S. § 510(c), (d) and (e). Any collections that exceed |
4 | any of the following shall be used to offset administrative |
5 | charges or assessments for the next fiscal year: |
6 | (i) The budget amount approved by the General |
7 | Assembly and the Governor for administration and |
8 | enforcement of this chapter and Chapter 33. |
9 | (ii) Actual expenditures directly attributable to |
10 | the administration and enforcement of this chapter and |
11 | Chapter 33. |
12 | § 2304. Well information. |
13 | (a) List.--Within 14 days of the effective date of this |
14 | section, the department shall provide the commission and, upon |
15 | request, a county, with a list of all spud unconventional gas |
16 | wells from the department. The department shall update the list |
17 | and provide it to the commission on a monthly basis. |
18 | (b) Updates.--A producer subject to the fee shall notify the |
19 | commission of the following within 30 days after a calendar |
20 | month in which the change occurs: |
21 | (1) The spudding of an unconventional gas well. |
22 | (1.1) The initiation of production at an unconventional |
23 | gas well. |
24 | (2) The removal of an unconventional gas well from |
25 | production. |
26 | § 2305. Duties of department. |
27 | (a) Confirmation of payment.--Prior to issuing a permit to |
28 | drill an unconventional gas well in this Commonwealth, the |
29 | department shall determine whether the producer has paid all |
30 | fees owed for an existing unconventional gas well under section |
|
1 | 2302 (relating to unconventional gas well fee). |
2 | (b) Prohibition.--The department shall not issue a permit to |
3 | drill an unconventional gas well until all unconventional gas |
4 | well fees owed under section 2302 that are not in dispute have |
5 | been paid to the commission. |
6 | (c) Payment of fees.--The commission shall provide the |
7 | department with information necessary to determine that the |
8 | producer has paid all unconventional gas well fees owed for an |
9 | unconventional gas well under section 2302. |
10 | § 2306. (Reserved). |
11 | § 2307. Commission. |
12 | (a) Powers.--The commission shall have the authority to make |
13 | all inquiries and determinations necessary to calculate and |
14 | collect the fee, administrative charges or assessments imposed |
15 | under this chapter, including, if applicable, interest and |
16 | penalties. |
17 | (b) Notice.--If the commission determines that the |
18 | unconventional gas well fee has not been paid in full, it may |
19 | issue a notice of the amount due and demand for payment and |
20 | shall set forth the basis for the determination. |
21 | (c) Address.--Notice of failure to pay the correct fee shall |
22 | be sent to the producer via certified mail. |
23 | (d) Time period.--Except as set forth in subsection (e), the |
24 | commission may challenge the amount of a fee paid within three |
25 | years after the date the report under section 2303(b) (relating |
26 | to administration) is filed. |
27 | (e) Intent.--If no report is filed or a producer files a |
28 | false or fraudulent report with the intent to evade the fee, an |
29 | assessment of the amount owed may be made at any time. |
30 | § 2308. Enforcement. |
|
1 | (a) Assessment.--The commission shall assess interest on any |
2 | delinquent fee at the rate determined under section 2307(a) |
3 | (relating to commission). |
4 | (b) Penalty.--In addition to the assessed interest under |
5 | subsection (a), if a producer fails to make timely payment of |
6 | the fee, there shall be added to the amount of the fee due a |
7 | penalty of 5% of the amount of the fee if failure to file a |
8 | timely payment is for not more than one month, with an |
9 | additional 5% penalty for each additional month, or fraction of |
10 | a month, during which the failure continues, not to exceed 25% |
11 | in the aggregate. |
12 | (c) Timely payment.--If the commission determines that a |
13 | producer has not made a timely payment of the fee, the |
14 | commission shall send written notice of the amount of the |
15 | deficiency to the producer within 30 days from the date of |
16 | determining the deficiency. The commission shall notify the |
17 | department of a producer that has failed to pay the fee for any |
18 | unconventional gas well under section 2302 (relating to |
19 | unconventional gas well fee). If the producer does not have a |
20 | pending appeal related to payment of the fee in process, the |
21 | department shall suspend the permit for that well until the fee |
22 | has been paid. |
23 | (d) Remedies.--The remedies provided under this chapter are |
24 | in addition to any other remedies provided by law or in equity. |
25 | (e) Lien.--Fines, fees, interest and penalties shall be |
26 | collectible as authorized by law for the collection of debts. If |
27 | the producer liable to pay an amount neglects or refuses to pay |
28 | the amount after demand, the amount, together with costs, shall |
29 | be a judgment in favor of the Commonwealth upon the property of |
30 | the producer, but only after the judgment has been entered, |
|
1 | docketed and recorded by the prothonotary of the county where |
2 | the property is situated. The Commonwealth shall transmit to the |
3 | prothonotaries of the respective counties certified copies of |
4 | the judgments. Each prothonotary shall enter, docket and record |
5 | the record in the prothonotary's office and index each judgment, |
6 | without requiring the payment of costs as a condition precedent |
7 | to the entry of the judgment. |
8 | § 2309. Enforcement orders. |
9 | (a) Issuance.--The commission may issue an order as |
10 | necessary to enforce this chapter. An order issued under this |
11 | section shall take effect upon notice, unless the order |
12 | specifies otherwise. A person aggrieved by an order under this |
13 | section may appeal to the Commonwealth Court under 42 Pa.C.S. § |
14 | 763 (relating to direct appeals from government agencies). |
15 | (b) Compliance.--A producer has the duty to comply with an |
16 | order issued under subsection (a). If a producer fails to |
17 | proceed diligently to comply with an order within the time |
18 | required, the producer shall be guilty of contempt and shall be |
19 | punished by the court in an appropriate manner. The commission |
20 | shall apply to the Commonwealth Court, which shall have |
21 | jurisdiction over matters relating to contempt. |
22 | § 2310. Administrative penalties. |
23 | (a) Civil penalties.--In addition to any other proceeding |
24 | authorized by law, the commission may assess a civil penalty not |
25 | to exceed $2,500 per violation upon a producer for the violation |
26 | of this chapter. In determining the amount of the penalty, the |
27 | commission shall consider the willfulness of the violation and |
28 | other relevant factors. |
29 | (b) Separate offense.--Each violation for each separate day |
30 | and each violation of this chapter shall constitute a separate |
|
1 | offense. |
2 | (c) Limitation of actions.--Notwithstanding any limitation |
3 | in 42 Pa.C.S. Ch. 55 Subch. B (relating to civil actions and |
4 | proceedings) an action under this section must be brought within |
5 | three years of the violation. |
6 | (d) Procedure.--A penalty under this chapter is subject to |
7 | 66 Pa.C.S. Ch. 3 Subch. B (relating to investigations and |
8 | hearings). |
9 | § 2311. (Reserved). |
10 | § 2312. Recordkeeping. |
11 | A producer liable for the fee under this chapter shall keep |
12 | records, make reports and comply with regulations of the |
13 | commission. The commission may require a producer to make |
14 | reports, render statements or keep records as the commission |
15 | deems sufficient to determine liability for the fee. |
16 | § 2313. Examinations. |
17 | (a) Access.--The commission or its authorized agents or |
18 | representatives shall: |
19 | (1) Have access to the relevant books, papers and |
20 | records of any producer in order to verify the accuracy and |
21 | completeness of a report filed or fee paid under this |
22 | chapter. |
23 | (2) Require the preservation of all relevant books, |
24 | papers and records for an appropriate period not to exceed |
25 | three years from the end of the calendar year to which the |
26 | records relate. |
27 | (3) Examine any employee of a producer under oath |
28 | concerning the severing of natural gas subject to a fee or |
29 | any matter relating to the enforcement of this chapter. |
30 | (4) Compel the production of relevant books, papers and |
|
1 | records and the attendance of all individuals who the |
2 | commission believes to have knowledge of relevant matters in |
3 | accordance with 66 Pa.C.S. (relating to public utilities). |
4 | (b) Unauthorized disclosure.--Any information obtained by |
5 | the commission as a result of any report, examination, |
6 | investigation or hearing under this chapter shall be |
7 | confidential and shall not be disclosed, except for official |
8 | purposes, in accordance with judicial order or as otherwise |
9 | provided by law. A commissioner or an employee of the commission |
10 | who without authorization divulges confidential information |
11 | shall be subject to disciplinary action by the commission. |
12 | § 2314. Distribution of fee. |
13 | (a) Establishment.--There is established a fund in the State |
14 | Treasury to be known as the Unconventional Gas Well Fund to be |
15 | administered by the commission. |
16 | (b) Deposit.--All fees imposed and collected under this |
17 | chapter shall be deposited into the fund and are hereby |
18 | appropriated for the purpose set forth in this section. |
19 | (c) Conservation districts.-- |
20 | (1) From fees collected for 2011, $2,500,000 from the |
21 | fund shall be distributed to county conservation districts. |
22 | (2) From fees collected for 2012, $5,000,000 from the |
23 | fund shall be distributed to county conservation districts. |
24 | (3) From fees collected for 2013, and each year |
25 | thereafter, $7,500,000 from the fund shall be distributed to |
26 | county conservation districts. |
27 | (4) Beginning July 1, 2014, each July 1 thereafter, the |
28 | amount distributed under paragraph (3) shall be increased by |
29 | any percentage increase in the Consumer Price Index for All |
30 | Urban Consumers for the most recent 12-month period for which |
|
1 | figures have been officially reported by the Bureau of Labor |
2 | Statistics immediately prior to July 1. |
3 | (5) Funds under paragraphs (1), (2) and (3) shall be |
4 | distributed in accordance with the following: |
5 | (i) One-half shall be distributed by dividing the |
6 | amount equally among conservation districts for any use |
7 | consistent with the act of May 15, 1945 (P.L.547, |
8 | No.217), known as the Conservation District Law. |
9 | (ii) One-half shall be distributed by the State |
10 | Conservation Commission in a manner consistent with the |
11 | Conservation District Law and the provisions of the State |
12 | Conservation Commission's Conservation District Fund |
13 | Allocation Program—Statement of Policy under 25 Pa. Code |
14 | Ch. 83 Subch. B (relating to Conservation District Fund |
15 | Allocation Program—Statement of Policy). |
16 | (c.1) Additional distributions.--From fees collected under |
17 | this chapter and deposited in the fund for 2011 and each year |
18 | thereafter: |
19 | (1) $1,000,000 shall be distributed to the Pennsylvania |
20 | Fish and Boat Commission for costs relating to the review of |
21 | applications for permits to drill unconventional gas wells. |
22 | (2) $1,000,000 shall be distributed to the Public |
23 | Utility Commission for costs to administer this chapter and |
24 | Chapter 33 (relating to local ordinances relating to oil and |
25 | gas operations). |
26 | (3) $6,000,000 to the department for the administration |
27 | of this act and the enforcement of acts relating to clean air |
28 | and clean water. |
29 | (4) $750,000 to the Pennsylvania Emergency Management |
30 | Agency for emergency response planning, training and |
|
1 | coordination related to natural gas production from |
2 | unconventional gas wells. |
3 | (5) $750,000 to the Office of State Fire Commissioner |
4 | for the development, delivery and sustainment of training and |
5 | grant programs for first responders and the acquisition of |
6 | specialized equipment for response to emergencies relating to |
7 | natural gas production from unconventional gas wells. |
8 | (6) $1,000,000 to the Department of Transportation for |
9 | rail freight assistance. |
10 | (c.2) Natural gas energy development.--Following |
11 | distributions from the fund under subsections (c) and (c.1), the |
12 | following amounts shall be deposited into the Marcellus Legacy |
13 | Fund for distribution to the department for the Natural Gas |
14 | Energy Development Program under Chapter 27 (relating to Natural |
15 | Gas Energy Development Program): |
16 | (1) For 2011, $10,000,000. |
17 | (2) For 2012, $7,500,000. |
18 | (3) For 2013, $2,500,000. |
19 | (c.3) Report.--All agencies or organizations receiving funds |
20 | under subsections (c), (c.1) and (c.2) shall submit a report by |
21 | December 31, 2012, and December 31 of each year thereafter to |
22 | the Secretary of the Budget and the Appropriations Committee of |
23 | the Senate and the Appropriations Committee of the House of |
24 | Representatives. The report shall include an itemization and |
25 | explanation of the use of all funds received under subsections |
26 | (c), (c.1) and (c.2). |
27 | (d) Distribution.--Except as provided in section 2302(a.3) |
28 | and (a.4) (relating to unconventional gas well fee), following |
29 | fee distribution under subsections (c), (c.1) and (c.2), from |
30 | fees collected for 2011 and each year thereafter, 60% of the |
|
1 | revenue remaining in the fund from fees collected for the prior |
2 | year are hereby appropriated to counties and municipalities for |
3 | purposes authorized under subsection (g). Counties and |
4 | municipalities are encouraged, where appropriate, to jointly |
5 | fund projects that cross jurisdictional lines. The commission, |
6 | after making a disbursement under subsection (f), shall |
7 | distribute the remaining funds appropriated as follows within |
8 | three months after the date the fee is due: |
9 | (1) Except as provided in section 2302(a.3), 36% shall |
10 | be distributed to counties in which spud unconventional gas |
11 | wells are located. The amount for each county to which funds |
12 | will be distributed shall be determined using a formula that |
13 | divides the number of spud unconventional gas wells in the |
14 | county by the number of spud unconventional gas wells in this |
15 | Commonwealth and multiplies the resulting percentage by the |
16 | amount available for distribution under this paragraph. |
17 | (2) Except as provided in section 2302(a.4), 37% shall |
18 | be distributed to municipalities in which spud unconventional |
19 | gas wells are located. The amount for each municipality to |
20 | which funds will be distributed shall be determined using a |
21 | formula that divides the number of spud unconventional gas |
22 | wells in the municipality by the number of spud |
23 | unconventional gas wells in this Commonwealth and multiplies |
24 | the resulting percentage by the amount available for |
25 | distribution under this paragraph. |
26 | (3) Except as provided in section 2302(a.4), 27% shall |
27 | be distributed to municipalities located in a county in which |
28 | spud unconventional gas wells are located. The amount |
29 | available for distribution in each county shall be determined |
30 | by dividing the number of spud unconventional gas wells in |
|
1 | the county by the number of spud unconventional gas wells in |
2 | this Commonwealth and multiplying the resulting percentage by |
3 | the amount available for distribution under this paragraph. |
4 | The resulting amount available for distribution in each |
5 | county in which spud unconventional gas wells are located |
6 | shall be distributed to each municipality in the county to |
7 | which funds will be distributed as follows: |
8 | (i) Except as provided in section 2302(a.4), 50% of |
9 | the amount available under this paragraph shall be |
10 | distributed to municipalities in which spud |
11 | unconventional gas wells are located and to |
12 | municipalities that are either contiguous with a |
13 | municipality in which spud unconventional gas wells are |
14 | located or are located within five linear miles of a spud |
15 | unconventional gas well. The distribution shall be made |
16 | as follows: |
17 | (A) One-half shall be distributed to each |
18 | municipality using a formula that divides the |
19 | population of the eligible municipality within the |
20 | county by the total population of all eligible |
21 | municipalities within the county and multiplies the |
22 | resulting percentage by the amount allocated to the |
23 | county under this subparagraph. |
24 | (B) One-half shall be distributed to each |
25 | municipality using a formula that divides the highway |
26 | mileage of the eligible municipality within the |
27 | county by the total highway mileage of all eligible |
28 | municipalities within the county and multiplies the |
29 | resulting percentage by the amount allocated to the |
30 | county under this subparagraph. |
|
1 | (ii) Except as provided in section 2302(a.4), 50% of |
2 | the amount available under this paragraph shall be |
3 | distributed to each municipality in the county regardless |
4 | of whether an unconventional gas well is located in the |
5 | municipality as follows: |
6 | (A) One-half shall be distributed to each |
7 | municipality using a formula that divides the |
8 | population of the municipality within the county by |
9 | the total population of the county and multiplies the |
10 | resulting percentage by the amount allocated to the |
11 | county under this subparagraph. |
12 | (B) One-half shall be distributed to each |
13 | municipality using a formula that divides the highway |
14 | mileage of the municipality within the county by the |
15 | total highway mileage of the county and multiplies |
16 | the resulting percentage by the amount allocated to |
17 | the county under this subparagraph. |
18 | (e) Restriction.--The amount allocated to each municipality |
19 | under subsection (d) shall not exceed the greater of $500,000 or |
20 | 50% of the total budget for the prior fiscal year beginning with |
21 | the 2010 budget year and continuing every year thereafter, |
22 | adjusted to reflect any upward changes in the Consumer Price |
23 | Index for all Urban Consumers for the Pennsylvania, New Jersey, |
24 | Delaware and Maryland area in the preceding 12 months. Any |
25 | remaining money shall be retained by the commission and |
26 | deposited in the Housing Affordability and Rehabilitation |
27 | Enhancement Fund for the uses specified under subsection (f). |
28 | (f) Housing Affordability and Rehabilitation Enhancement |
29 | Fund.-- |
30 | (1) From fees collected for 2011, $2,500,000 from the |
|
1 | fund shall be distributed to the Housing Affordability and |
2 | Rehabilitation Enhancement Fund under the act of November 23, |
3 | 2010 (P.L.1035, No.105), entitled "An act amending the act of |
4 | December 3, 1959 (P.L.1688, No.621), entitled, as amended, |
5 | 'An act to promote the health, safety and welfare of the |
6 | people of the Commonwealth by broadening the market for |
7 | housing for persons and families of low and moderate income |
8 | and alleviating shortages thereof, and by assisting in the |
9 | provision of housing for elderly persons through the creation |
10 | of the Pennsylvania Housing Finance Agency as a public |
11 | corporation and government instrumentality; providing for the |
12 | organization, membership and administration of the agency, |
13 | prescribing its general powers and duties and the manner in |
14 | which its funds are kept and audited, empowering the agency |
15 | to make housing loans to qualified mortgagors upon the |
16 | security of insured and uninsured mortgages, defining |
17 | qualified mortgagors and providing for priorities among |
18 | tenants in certain instances, prescribing interest rates and |
19 | other terms of housing loans, permitting the agency to |
20 | acquire real or personal property, permitting the agency to |
21 | make agreements with financial institutions and Federal |
22 | agencies, providing for the purchase by persons of low and |
23 | moderate income of housing units, and approving the sale of |
24 | housing units, permitting the agency to sell housing loans, |
25 | providing for the promulgation of regulations and forms by |
26 | the agency, prescribing penalties for furnishing false |
27 | information, empowering the agency to borrow money upon its |
28 | own credit by the issuance and sale of bonds and notes and by |
29 | giving security therefor, permitting the refunding, |
30 | redemption and purchase of such obligations by the agency, |
|
1 | prescribing remedies of holders of such bonds and notes, |
2 | exempting bonds and notes of the agency, the income |
3 | therefrom, and the income and revenues of the agency from |
4 | taxation, except transfer, death and gift taxes; making such |
5 | bonds and notes legal investments for certain purposes; and |
6 | indicating how the act shall become effective,' providing for |
7 | the Pennsylvania Housing Affordability and Rehabilitation |
8 | Enhancement Program; and establishing the Housing |
9 | Affordability and Rehabilitation Enhancement Fund." From fees |
10 | collected for 2012, and each year thereafter, $5,000,000 |
11 | shall be annually distributed to the Housing Affordability |
12 | and Rehabilitation Enhancement Fund. |
13 | (2) Funds under paragraph (1) shall be used for the |
14 | following purposes: |
15 | (i) To provide support to projects in a county in |
16 | which producing unconventional gas wells are located that |
17 | increase availability of quality, safe, affordable |
18 | housing for low-income and moderate-income individuals or |
19 | families, persons with disabilities or elderly persons. |
20 | (ii) To provide rental assistance in a county in |
21 | which producing unconventional gas wells are located to |
22 | persons or families whose household income does not |
23 | exceed the area median income. |
24 | (3) No less than 50% of the funds available under this |
25 | subsection shall be used in fifth, sixth, seventh and eighth |
26 | class counties. |
27 | (g) Use of funds.--A county or municipality receiving funds |
28 | under subsection (d) shall use the funds received only for the |
29 | following purposes associated with natural gas production from |
30 | unconventional gas wells within the county or municipality: |
|
1 | (1) Construction, reconstruction, maintenance and repair |
2 | of roadways, bridges and public infrastructure. |
3 | (2) Water, storm water and sewer systems, including |
4 | construction, reconstruction, maintenance and repair. |
5 | (3) Emergency preparedness and public safety, including |
6 | law enforcement and fire services, hazardous material |
7 | response, 911, equipment acquisition and other services. |
8 | (4) Environmental programs, including trails, parks and |
9 | recreation, open space, flood plain management, conservation |
10 | districts and agricultural preservation. |
11 | (5) Preservation and reclamation of surface and |
12 | subsurface waters and water supplies. |
13 | (6) Tax reductions, including homestead exclusions. |
14 | (7) Projects to increase the availability of safe and |
15 | affordable housing to residents. |
16 | (8) Records management, geographic information systems |
17 | and information technology. |
18 | (9) The delivery of social services. |
19 | (10) Judicial services. |
20 | (11) For deposit into the county or municipality's |
21 | capital reserve fund if the funds are used solely for a |
22 | purpose set forth in this subsection. |
23 | (12) Career and technical centers for training of |
24 | workers in the oil and gas industry. |
25 | (13) Local or regional planning initiatives under the |
26 | act of July 31, 1968 (P.L.805, No.247), known as the |
27 | Pennsylvania Municipalities Planning Code. |
28 | (h) Reporting.-- |
29 | (1) The commission shall submit an annual report on all |
30 | funds in the fund. The report shall include a detailed |
|
1 | listing of all deposits and expenditures of the fund and be |
2 | submitted to the chairman and the minority chairman of the |
3 | Appropriations Committee of the Senate, the chairman and the |
4 | minority chairman of the Environmental Resources and Energy |
5 | Committee of the Senate, the chairman and the minority |
6 | chairman of the Appropriations Committee of the House of |
7 | Representatives and the chairman and the minority chairman of |
8 | the Environmental Resources and Energy Committee of the House |
9 | of Representatives. The report shall be submitted by December |
10 | 30, 2012, and by September 30 of each year thereafter. |
11 | (2) All counties and municipalities receiving funds from |
12 | the fund under this section shall submit information to the |
13 | commission on a form prepared by the commission that sets |
14 | forth the amount and use of the funds received in the prior |
15 | calendar year. The form shall set forth that the funds |
16 | received were committed to a specific project or use as |
17 | authorized in this section. The reports shall be published |
18 | annually on the county or municipality's publicly accessible |
19 | Internet website. |
20 | (i) Availability of funds.--Distribution of funds under this |
21 | section and section 2315 (relating to Statewide initiatives) are |
22 | contingent on availability of funds in the fund. If sufficient |
23 | funds are not available, the commission shall disburse funds on |
24 | a pro rata basis. |
25 | § 2315. Statewide initiatives. |
26 | (a) Establishment.--There is established in the State |
27 | Treasury a fund to be known as the Marcellus Legacy Fund. |
28 | (a.1) Deposit and distribution.--Following distribution |
29 | under section 2314(c), (c.1) and (c.2) (relating to distribution |
30 | of fee) from fees collected for 2011 and each year thereafter, |
|
1 | 40% of the remaining revenue in the fund shall be deposited into |
2 | the Marcellus Legacy Fund and appropriated to the commission and |
3 | distributed within three months after the date the fee is due as |
4 | follows: |
5 | (1) Twenty percent to the Commonwealth Financing |
6 | Authority for grants to eligible applicants for the |
7 | following: |
8 | (i) Acid mines: damage, abatement and cleanup and |
9 | mine reclamation, with priority given to projects which |
10 | recycle and treat water for use in drilling operations. |
11 | (ii) Orphan or abandoned oil and gas well plugging. |
12 | (iii) Complying with the act of January 24, 1966 |
13 | (1965 P.L.1535, No.537), known as the Pennsylvania Sewage |
14 | Facilities Act. |
15 | (iv) Planning acquisition, development, |
16 | rehabilitation and repair of greenways, recreational |
17 | trails, open space, parks and beautification projects. |
18 | (v) Programs to establish baseline water quality |
19 | data on private water supplies. |
20 | (vi) Watershed programs and related projects. |
21 | (vii) Up to 25% of funds distributed to the |
22 | Commonwealth Financing Authority under this paragraph may |
23 | be utilized for flood-control projects. |
24 | (2) Ten percent to the Environmental Stewardship Fund. |
25 | (3) Twenty-five percent to the Highway Bridge |
26 | Improvement Restricted Account in the Motor License Fund to |
27 | counties to be distributed to fund the cost of the |
28 | replacement or repair of locally owned at-risk deteriorated |
29 | bridges. Funds shall be distributed to counties |
30 | proportionately based on the population of the county as |
|
1 | follows: |
2 | (i) In each county, the distribution shall be |
3 | according to the following formula: |
4 | (A) Divide: |
5 | (I) the total population of the county; by |
6 | (II) the total population of the |
7 | Commonwealth; |
8 | (B) Express the quotient under clause (A) as a |
9 | percentage. |
10 | (C) Multiply: |
11 | (I) the percentage under clause (B); by |
12 | (II) the amount of money to be distributed |
13 | under this paragraph. |
14 | (ii) Each county shall receive a minimum of $40,000 |
15 | to the extent funds are available. |
16 | (iii) The Department of Transportation shall release |
17 | money under this paragraph upon approval of a plan |
18 | submitted by a county or municipality to repair an at- |
19 | risk deteriorated bridge. The plan must include funding |
20 | for replacement or repair. |
21 | (iv) A county of the first or second class may |
22 | submit a plan to use its funds under this paragraph for |
23 | at-risk deteriorated bridges owned by a public |
24 | transportation authority. |
25 | (4) Twenty-five percent for water and sewer projects. |
26 | Fifty percent of the amount distributed under this paragraph |
27 | shall be transmitted to the Pennsylvania Infrastructure |
28 | Investment Authority to be used in accordance with the act of |
29 | March 1, 1988 (P.L.82, No.16), known as the Pennsylvania |
30 | Infrastructure Investment Authority Act. Fifty percent of the |
|
1 | amount distributed under this paragraph shall be distributed |
2 | to the H2O PA program to be used by the Commonwealth |
3 | Financing Authority in accordance with section 301 of the act |
4 | of July 9, 2008 (P.L.908, No.63), known as the H2O PA Act. |
5 | The prohibition on grants for projects located in a city or |
6 | county of the first or second class under section 301 of the |
7 | H2O PA Act shall not apply to funds distributed to the H2O PA |
8 | Program under this paragraph. |
9 | (5) Fifteen percent for the planning, acquisition, |
10 | development, rehabilitation and repair of greenways, |
11 | recreational trails, open space, natural areas, community |
12 | conservation and beautification projects, community and |
13 | heritage parks and water resource management. Funds may be |
14 | used to acquire lands for recreational or conservation |
15 | purposes and land damaged or prone to drainage by storms or |
16 | flooding. Funds shall be distributed to counties |
17 | proportionately based on the population of the county as |
18 | follows: |
19 | (i) In each county, the distribution shall be |
20 | according to the following formula: |
21 | (A) Divide: |
22 | (I) the total population of the county; by |
23 | (II) the total population of the |
24 | Commonwealth. |
25 | (B) Express the quotient under clause (A) as a |
26 | percentage. |
27 | (C) Multiply: |
28 | (I) the percentage under clause (B); by |
29 | (II) the amount of funds available under |
30 | this paragraph. |
|
1 | (ii) Each county shall receive a minimum of $25,000 |
2 | to the extent funds are available. |
3 | (6) Five percent for distribution as follows: |
4 | (i) From fees collected in 2011, 2012 and 2013, to |
5 | the Department of Community and Economic Development for |
6 | projects to provide for the planning, development, |
7 | remodeling, remediation and construction of projects |
8 | relating to oil, natural gas or other chemical |
9 | substances. Projects under this subparagraph may include |
10 | blending facilities to liquefy or refine natural gas or |
11 | to convert natural gas to ethane, propane or other |
12 | substances; facilities to refine oil; or facilities to |
13 | refine or process oil, heating oil, jet fuel or any other |
14 | chemical substance. Following 2014, funds not utilized by |
15 | the Department of Community and Economic Development |
16 | under this subparagraph shall be deposited in the |
17 | Hazardous Sites Cleanup Fund. |
18 | (ii) After 2013, to the Hazardous Sites Cleanup |
19 | Fund. |
20 | (b) Restriction on use of proceeds.-- |
21 | (1) Funds distributed under subsection (a.1) shall not |
22 | be used for the purpose of public relations, outreach not |
23 | directly related to project implementation, communications, |
24 | lobbying or litigation. |
25 | (2) Funds distributed under subsection (a.1) may not be |
26 | used by an authorized organization as defined in 27 Pa.C.S. § |
27 | 6103 (relating to definitions) for land acquisition unless |
28 | the authorized organization has obtained the written consent |
29 | of the county and municipality in which the land is situated. |
30 | (c) Coordination.--The department and the Department of |
|
1 | Conservation and Natural Resources shall review applications for |
2 | funding as requested by the Commonwealth Financing Authority and |
3 | provide recommendations on priority of projects and project |
4 | approval. |
5 | § 2316. Small business participation. |
6 | (a) Requirement.--Producers shall provide maximum |
7 | practicable contracting opportunities for diverse small |
8 | businesses, including minority-owned business enterprises, |
9 | women-owned business enterprises and veteran-owned businesses. |
10 | (b) Duties.--Producers shall do all of the following: |
11 | (1) Maintain a policy prohibiting discrimination in |
12 | employment and contracting based on gender, race, creed or |
13 | color. |
14 | (2) Use the database available on the Internet website |
15 | of the Department of General Services to identify certified |
16 | diverse small businesses, including minority-owned business |
17 | enterprises, women-owned business enterprises and veteran- |
18 | owned businesses, as potential contractors, subcontractors |
19 | and suppliers for opportunities related to unconventional |
20 | natural gas extraction. |
21 | (3) Respond to the survey under subsection (c) within 90 |
22 | days. |
23 | (c) Survey.--Within one year of the effective date of this |
24 | section, the Department of General Services shall send all |
25 | producers a survey to report the producers' efforts to provide |
26 | maximum practicable contracting opportunities related to |
27 | unconventional natural gas extraction for diverse, small |
28 | business participation. |
29 | (d) Reports.--The Department of General Services shall |
30 | compile the results and submit an annual report to the State |
|
1 | Government Committee of the Senate and the State Government |
2 | Committee of the House of Representatives on the utilization of |
3 | diverse small business participation related to unconventional |
4 | natural gas extraction. The report shall be submitted no later |
5 | than 150 days after the Department of General Services |
6 | disseminated the survey to producers. |
7 | (e) Definition.--As used in this section, the term "diverse |
8 | small business" means minority-owned business, women-owned |
9 | business and veteran-owned business as determined by the |
10 | Department of General Services. |
11 | § 2317. Applicability. |
12 | The provisions of this chapter shall not negate or limit the |
13 | responsibilities of any producer under this title, 74 Pa.C.S |
14 | (relating to transportation) or 75 Pa.C.S. (relating to |
15 | vehicles). |
16 | § 2318. Expiration. |
17 | (a) Notice.--The Secretary of the Commonwealth shall, upon |
18 | the imposition of a severance tax on unconventional gas wells in |
19 | this Commonwealth, submit for publication in the Pennsylvania |
20 | Bulletin notice of the imposition. |
21 | (b) Date.--This chapter shall expire on the date of the |
22 | publication of the notice under subsection (a). |
23 | CHAPTER 25 |
24 | OIL AND GAS LEASE FUND |
25 | Sec. |
26 | 2501. Definitions. |
27 | 2502. (Reserved). |
28 | 2503. (Reserved). |
29 | 2504. Appropriation of money. |
30 | 2505. Funds. |
|
1 | § 2501. Definitions. |
2 | The following words and phrases when used in this chapter |
3 | shall have the meanings given to them in this section unless the |
4 | context clearly indicates otherwise: |
5 | "Department." The Department of Conservation and Natural |
6 | Resources of the Commonwealth. |
7 | § 2502. (Reserved). |
8 | § 2503. (Reserved). |
9 | § 2504. Appropriation of money. |
10 | Money in the Oil and Gas Lease Fund is specifically |
11 | appropriated as provided in this chapter. |
12 | § 2505. Funds. |
13 | (a) Priority.--Funds appropriated from the Oil and Gas Lease |
14 | Fund to the department under the act of April 9, 1929 (P.L.343, |
15 | No.176), known as The Fiscal Code, or other appropriation act |
16 | shall be distributed prior to allocations under subsection (b). |
17 | (b) Allocations.--Money in the Oil and Gas Lease Fund shall |
18 | be allocated on an annual basis as follows: |
19 | (1) The following amounts shall be transferred from the |
20 | Oil and Gas Lease Fund to the Marcellus Legacy Fund for |
21 | distribution to the Environmental Stewardship Fund: |
22 | (i) For 2013, $20,000,000. |
23 | (ii) For 2014 and each year thereafter, $35,000,000. |
24 | (2) The following amounts shall be transferred from the |
25 | Oil and Gas Lease Fund to the Marcellus Legacy Fund for |
26 | distribution to the Hazardous Sites Cleanup Fund: |
27 | (i) For 2015, $5,000,000. |
28 | (ii) For 2016 and each year thereafter, $15,000,000. |
29 | CHAPTER 27 |
30 | NATURAL GAS ENERGY |
|
1 | DEVELOPMENT PROGRAM |
2 | Sec. |
3 | 2701. Definitions. |
4 | 2702. Assistance. |
5 | 2703. Program. |
6 | 2704. Expiration. |
7 | § 2701. Definitions. |
8 | The following words and phrases when used in this chapter |
9 | shall have the meanings given to them in this section unless the |
10 | context clearly indicates otherwise: |
11 | "Bi-fuel vehicle." A motor vehicle equipped to be propelled |
12 | in part by compressed natural gas fuel and in part by diesel or |
13 | gasoline fuel. |
14 | "Company." An entity doing business in this Commonwealth |
15 | which is subject to tax under Article III, IV or VI of the act |
16 | of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of |
17 | 1971. |
18 | "Dedicated compressed natural gas vehicle." A motor vehicle |
19 | that is produced by an original equipment manufacturer and |
20 | operates on 100% compressed natural gas fuel. |
21 | "Dedicated liquefied natural gas vehicle." A motor vehicle |
22 | that is produced by an original equipment manufacturer and |
23 | operates on 90% or more liquefied natural gas fuel and 10% or |
24 | less on gasoline or diesel fuel. |
25 | "Department." The Department of Environmental Protection of |
26 | the Commonwealth. |
27 | "Eligible applicant." Any of the following: |
28 | (1) A Commonwealth authority. |
29 | (2) A municipal authority. |
30 | (3) The Pennsylvania Turnpike Commission. |
|
1 | (4) A local transportation organization. |
2 | (5) A nonprofit entity. |
3 | (6) A State-owned or State-related university. |
4 | (7) A company. |
5 | "Eligible vehicles." The following shall constitute an |
6 | eligible vehicle under this chapter: |
7 | (1) Dedicated compressed natural gas vehicles that are |
8 | fleet vehicles and have a gross vehicle weight rating of at |
9 | least 14,000 pounds. |
10 | (2) Dedicated liquefied natural gas vehicles that are |
11 | fleet vehicles and have a gross vehicle weight rating of at |
12 | least 14,000 pounds. |
13 | (3) Bi-fuel vehicles that are fleet vehicles. |
14 | "Fleet vehicle." A vehicle registered to an eligible |
15 | applicant. |
16 | "Incremental purchase cost." The excess cost of a dedicated |
17 | compressed natural gas vehicle, a dedicated liquefied natural |
18 | gas vehicle or a bi-fuel vehicle over the price for a gasoline |
19 | or diesel fuel motor vehicle of a similar model. The term |
20 | includes the cost to retrofit a vehicle to operate as a |
21 | dedicated compressed natural gas vehicle, a dedicated liquefied |
22 | natural gas vehicle or a bi-fuel vehicle. |
23 | "Local transportation organization." Any of the following: |
24 | (1) A political subdivision. |
25 | (2) A public transportation authority, port authority or |
26 | redevelopment authority, which is: |
27 | (i) organized under: |
28 | (A) the laws of this Commonwealth; or |
29 | (B) an interstate compact; or |
30 | (ii) empowered to render, contract to render or |
|
1 | assist in rendering transportation services in a limited |
2 | area in this Commonwealth even though it may also render |
3 | or assist in rendering transportation service in adjacent |
4 | states. |
5 | (3) A nonprofit entity which directly or indirectly |
6 | provides public transportation service. |
7 | (4) A nonprofit entity of public transportation |
8 | providers operating within this Commonwealth. |
9 | "Original equipment manufacturer" or "OEM." The entity which |
10 | originally manufactures the natural gas engine or the vehicle |
11 | for sale. |
12 | "Start date." The date on which an eligible applicant first |
13 | places in service, through purchase or contract, a new or |
14 | retrofitted new natural gas vehicle. |
15 | § 2702. Assistance. |
16 | (a) Funding.--Grants under this chapter shall be made from |
17 | amounts deposited in the Marcellus Legacy Fund under section |
18 | 2314(c.2) (relating to distribution of fee). |
19 | (b) Grants.-- |
20 | (1) For fiscal year 2012-2013, the total amount of |
21 | grants approved under this chapter may not exceed |
22 | $10,000,000. Of that amount, $5,000,000 shall be allocated |
23 | exclusively for local transportation organizations. If the |
24 | total amount allocated to either the group of applications |
25 | exclusive of local transportation organizations or the group |
26 | of local transportation organization applicants is not |
27 | approved in fiscal year 2012-2013, the unused portion shall |
28 | be made available under paragraph (2). |
29 | (2) For fiscal year 2013-2014: |
30 | (i) The total amount of grants approved under this |
|
1 | chapter may not exceed the sum of: |
2 | (A) $7,500,000; and |
3 | (B) any unused portion available under paragraph |
4 | (1). |
5 | (ii) Of the amount under subparagraph (i), 50% shall |
6 | be allocated exclusively for local transportation |
7 | organizations. |
8 | (iii) If the total amount allocated to either the |
9 | group of applications exclusive of local transportation |
10 | organizations or the group of local transportation |
11 | organization applicants is not approved in fiscal year |
12 | 2013-2014, the unused portion shall be made available |
13 | under paragraph (3). |
14 | (3) For fiscal year 2014-2015, the total amount of |
15 | grants approved under this chapter may not exceed the sum of: |
16 | (i) $2,500,000; and |
17 | (ii) any unused portion available under paragraph |
18 | (2). |
19 | § 2703. Program. |
20 | (a) Establishment and purpose.--The Natural Gas Energy |
21 | Development Program is established. The purpose of the program |
22 | is to fund projects under this chapter. |
23 | (b) Eligible projects.--Funds transferred to the department |
24 | under Chapter 23 (relating to unconventional gas well fee) shall |
25 | be utilized for competitive grants to eligible applicants for |
26 | eligible projects as provided in this subsection. In order to be |
27 | eligible to receive a grant, an eligible applicant must provide |
28 | or demonstrate all of the following to the department: |
29 | (1) A plan to convert five or more fleet vehicles into |
30 | eligible vehicles or purchase five or more eligible vehicles. |
|
1 | The plan must be financially viable within four years of the |
2 | start date and must include the construction and utilization |
3 | of a natural gas fueling station in this Commonwealth or the |
4 | utilization of an existing natural gas fueling station. |
5 | (2) A statement of the projected usage of natural gas |
6 | stated in gasoline or diesel gallon equivalents accompanied |
7 | by the methodology utilized and how the project will increase |
8 | use of domestic natural gas in this Commonwealth. |
9 | (3) The cost of the project. |
10 | (4) The source and amount of any funds to be contributed |
11 | by the eligible applicant. |
12 | (5) The intent to maintain operations in this |
13 | Commonwealth for a period of not less than six years from the |
14 | start date. |
15 | (6) That all of the eligible vehicles purchased with the |
16 | grant will be registered in this Commonwealth. |
17 | (7) The utilization of Federal funds on the project to |
18 | the extent that Federal funds are available. |
19 | (8) Whether or not the project includes the utilization |
20 | of a natural gas fueling facility that is accessible to the |
21 | public. |
22 | (c) Guidelines.--Funds under this section shall be used in |
23 | accordance with guidelines adopted by the department. The |
24 | guidelines shall do all of the following: |
25 | (1) Restrict each grant for an eligible vehicle to cover |
26 | no more than 50% of the incremental purchase cost. |
27 | (2) Limit the amount of the grant so that it shall not |
28 | exceed $25,000 for each fleet vehicle. |
29 | (3) In the case of grants awarded for eligible vehicles |
30 | which are bi-fuel vehicles, provide for annual reporting to |
|
1 | the department by the eligible applicant demonstrating the |
2 | usage of compressed natural gas for a period not to exceed |
3 | four years after the start date. |
4 | (4) Require each eligible vehicle for which a grant is |
5 | awarded to comply with all Federal and State safety |
6 | requirements, including rules and regulations promulgated by |
7 | the Environmental Protection Agency. |
8 | (d) Application.--An applicant shall submit an application |
9 | including supporting information as required by the department. |
10 | (e) Project review.--The department shall review and prepare |
11 | an assessment of each application and determine which projects |
12 | will best utilize and promote the use of domestically produced |
13 | natural gas in this Commonwealth. |
14 | (f) Administrative costs.--No more than 1% of the funds |
15 | appropriated to the department shall be used for administrative |
16 | costs. |
17 | (g) Report.--The department shall provide a report to the |
18 | chairman and minority chairman of the Appropriations Committee |
19 | of the Senate and the chairman and minority chairman of the |
20 | Appropriations Committee of the House of Representatives by |
21 | October 1, 2013, and each October 1 thereafter. The report shall |
22 | be maintained on the department's official Internet website and |
23 | shall include: |
24 | (1) A list of all grants approved during the previous |
25 | fiscal year, including the amount of the grant and a |
26 | description of each approved project. |
27 | (2) The estimated domestic energy benefits to date for |
28 | all projects receiving funding during the fiscal year and the |
29 | method used to determine estimated benefits. |
30 | Section 2704. Expiration. |
|
1 | This chapter shall expire December 31, 2016. |
2 | PART III |
3 | UTILIZATION |
4 | Chapter |
5 | 31. (Reserved) |
6 | 32. Development |
7 | 33. Local Ordinances Relating to Oil and Gas Operation |
8 | 35. Responsibility for Fee |
9 | CHAPTER 31 |
10 | (RESERVED) |
11 | CHAPTER 32 |
12 | DEVELOPMENT |
13 | Subchapter |
14 | A. Preliminary Provisions |
15 | B. General Requirements |
16 | C. Underground Gas Storage |
17 | D. Eminent Domain |
18 | E. Enforcement and Remedies |
19 | F. Miscellaneous Provisions |
20 | SUBCHAPTER A |
21 | PRELIMINARY PROVISIONS |
22 | Sec. |
23 | 3201. Scope of chapter. |
24 | 3202. Declaration of purpose. |
25 | 3203. Definitions. |
26 | § 3201. Scope of chapter. |
27 | This chapter relates to oil and gas. |
28 | § 3202. Declaration of purpose. |
29 | The purposes of this chapter are to: |
30 | (1) Permit optimal development of oil and gas resources |
|
1 | of this Commonwealth consistent with protection of the |
2 | health, safety, environment and property of Pennsylvania |
3 | citizens. |
4 | (2) Protect the safety of personnel and facilities |
5 | employed in coal mining or exploration, development, storage |
6 | and production of natural gas or oil. |
7 | (3) Protect the safety and property rights of persons |
8 | residing in areas where mining, exploration, development, |
9 | storage or production occurs. |
10 | (4) Protect the natural resources, environmental rights |
11 | and values secured by the Constitution of Pennsylvania. |
12 | § 3203. Definitions. |
13 | The following words and phrases when used in this chapter |
14 | shall have the meanings given to them in this section unless the |
15 | context clearly indicates otherwise: |
16 | "Abandoned well." Any of the following: |
17 | (1) A well: |
18 | (i) that has not been used to produce, extract or |
19 | inject any gas, petroleum or other liquid within the |
20 | preceding 12 months; |
21 | (ii) for which equipment necessary for production, |
22 | extraction or injection has been removed; or |
23 | (iii) considered dry and not equipped for production |
24 | within 60 days after drilling, redrilling or deepening. |
25 | (2) The term does not include wells granted inactive |
26 | status. |
27 | "Additive." A hydraulic fracturing chemical. |
28 | "Alteration." An operation which changes the physical |
29 | characteristics of a well bore, including stimulation or |
30 | removing, repairing or changing the casing. For the purpose of |
|
1 | this chapter only, the term does not include: |
2 | (1) Repairing or replacing of the casing if the activity |
3 | does not affect the depth or diameter of the well bore, the |
4 | use or purpose of the well does not change and the activity |
5 | complies with regulations promulgated under this chapter, |
6 | except that this exclusion does not apply: |
7 | (i) to production casings in coal areas when the |
8 | production casings are also the coal protection casings; |
9 | or |
10 | (ii) when the method of repairing or replacing the |
11 | casing would affect the coal protection casing. |
12 | (2) Stimulation of a well. |
13 | "Board." The Oil and Gas Technical Advisory Board. |
14 | "Bridge." An obstruction placed in a well at any depth. |
15 | "Building." An occupied structure with walls and roof within |
16 | which persons live or customarily work. |
17 | "Casing." A string or strings of pipe commonly placed in |
18 | wells drilled for natural gas or petroleum. |
19 | "Cement" or "cement grout." Any of the following: |
20 | (1) Hydraulic cement properly mixed with water only. |
21 | (2) A mixture of materials adequate for bonding or |
22 | sealing of well bores as approved by regulations promulgated |
23 | under this chapter. |
24 | "Chemical." Any element, chemical compound or mixture of |
25 | elements or compounds that has its own specific name or |
26 | identity, such as a chemical abstract service number. |
27 | "Chemical Disclosure Registry." The chemical registry |
28 | website developed by the Ground Water Protection Council and the |
29 | Interstate Oil and Gas Compact Commission or their successor |
30 | organizations. |
|
1 | "Chemical family." A group of chemicals that share similar |
2 | chemical properties and have a common general name. |
3 | "Coal mine." Any of the following: |
4 | (1) Operations in a coal seam, including excavated |
5 | portions, abandoned portions and places actually being |
6 | worked. |
7 | (2) Underground workings and shafts, slopes, tunnels and |
8 | other ways and openings, including those which are in the |
9 | course of being sunk or driven, along with all roads and |
10 | facilities connected with them below the surface. |
11 | "Coal operator." A person that operates or proposes to |
12 | operate a coal mine as an owner or lessee. |
13 | "Completion of a well." The date after treatment, if any, |
14 | that the well is properly equipped for production of oil or gas, |
15 | or, if the well is dry, the date that the well is abandoned. |
16 | "Department." The Department of Environmental Protection of |
17 | the Commonwealth. |
18 | "Drilling." The drilling or redrilling of a well or the |
19 | deepening of an existing well. |
20 | "Fresh groundwater." Water in that portion of the generally |
21 | recognized hydrologic cycle which occupies the pore spaces and |
22 | fractures of saturated subsurface materials. |
23 | "Gas." Any of the following: |
24 | (1) A fluid, combustible or noncombustible, which is |
25 | produced in a natural state from the earth and maintains a |
26 | gaseous or rarified state at standard temperature of 60 |
27 | degrees Fahrenheit and pressure 14.7 PSIA. |
28 | (2) Any manufactured gas, by-product gas or mixture of |
29 | gases or natural gas liquids. |
30 | "Health professional." A physician, physician assistant, |
|
1 | nurse practitioner, registered nurse or emergency medical |
2 | technician licensed by the Commonwealth. |
3 | "Hydraulic fracturing chemical." Any chemical substance or |
4 | combination of substances, including any chemicals and |
5 | proppants, that is intentionally added to a base fluid for |
6 | purposes of preparing a stimulation fluid for use in hydraulic |
7 | fracturing. |
8 | "Inactivate." To shut off the vertical movement of gas in a |
9 | gas storage well by means of a temporary plug or other suitable |
10 | device or by injecting bentonitic mud or other equally nonporous |
11 | material into the well. |
12 | "Linear foot." A unit or measurement in a straight line on a |
13 | horizontal plane. |
14 | "Natural gas liquids." Hydrocarbons in natural gas which are |
15 | separated from the gas as liquids through the process of |
16 | absorption, condensation, adsorption or other methods in gas |
17 | processing of cycling plants. |
18 | "Oil." Hydrocarbons in liquid form at standard temperature |
19 | of 60 degrees Fahrenheit and pressure 14.7 PSIA, also referred |
20 | to as petroleum. |
21 | "Operating coal mine." Any of the following: |
22 | (1) An underground coal mine which is producing coal or |
23 | has been in production of coal at any time during the 12 |
24 | months immediately preceding the date its status is put in |
25 | question, including contiguous worked-out or abandoned coal |
26 | mines to which it is connected underground. |
27 | (2) An underground coal mine to be established or |
28 | reestablished under paragraph (1). |
29 | "Operating well." A well that is not plugged and abandoned. |
30 | "Operator." A well operator. |
|
1 | "Orphan well." A well abandoned prior to April 18, 1985, |
2 | that has not been affected or operated by the present owner or |
3 | operator and from which the present owner, operator or lessee |
4 | has received no economic benefit other than as a landowner or |
5 | recipient of a royalty interest from the well. |
6 | "Outside coal boundaries." When used in conjunction with the |
7 | term "operating coal mine," the boundaries of the coal acreage |
8 | assigned to the coal mine under an underground mine permit |
9 | issued by the Department of Environmental Protection. |
10 | "Owner." A person who owns, manages, leases, controls or |
11 | possesses a well or coal property. The term does not apply to |
12 | orphan wells, except where the Department of Environmental |
13 | Protection determines a prior owner or operator benefited from |
14 | the well as provided in section 3220(a) (relating to plugging |
15 | requirements). |
16 | "Person." An individual, association, partnership, |
17 | corporation, political subdivision or agency of the Federal |
18 | Government, State government or other legal entity. |
19 | "Petroleum." Hydrocarbons in liquid form at standard |
20 | temperature of 60 degrees Fahrenheit and pressure 14.7 PSIA, |
21 | also referred to as oil. |
22 | "Pillar." A solid block of coal surrounded by either active |
23 | mine workings or a mined-out area. |
24 | "Plat." A map, drawing or print accurately drawn to scale |
25 | showing the proposed or existing location of a well or wells. |
26 | "Reservoir protective area." The area surrounding a storage |
27 | reservoir boundary, but within 2,000 linear feet of the storage |
28 | reservoir boundary, unless an alternate area has been designated |
29 | by the Department of Environmental Protection, which is deemed |
30 | reasonably necessary to afford protection to the reservoir, |
|
1 | under a conference held in accordance with section 3251 |
2 | (relating to conferences). |
3 | "Retreat mining." Removal of coal pillars, ribs and stumps |
4 | remaining after development mining has been completed in that |
5 | section of a coal mine. |
6 | "Secretary." The Secretary of Environmental Protection of |
7 | the Commonwealth. |
8 | "Storage operator." A person who operates or proposes to |
9 | operate a storage reservoir as an owner or lessee. |
10 | "Storage reservoir." That portion of a subsurface geological |
11 | stratum into which gas is or may be injected for storage |
12 | purposes or to test suitability of the stratum for storage. |
13 | "Unconventional formation." A geological shale formation |
14 | existing below the base of the Elk Sandstone or its geologic |
15 | equivalent stratigraphic interval where natural gas generally |
16 | cannot be produced at economic flow rates or in economic volumes |
17 | except by vertical or horizontal well bores stimulated by |
18 | hydraulic fracture treatments or by using multilateral well |
19 | bores or other techniques to expose more of the formation to the |
20 | well bore. |
21 | "Unconventional well." A bore hole drilled or being drilled |
22 | for the purpose of or to be used for the production of natural |
23 | gas from an unconventional formation. |
24 | "Water management plan." A plan associated with drilling or |
25 | completing a well in an unconventional formation that |
26 | demonstrates that the withdrawal and use of water sources |
27 | protects those sources as required by law and protects public |
28 | health, safety and welfare. |
29 | "Water purveyor." Any of the following: |
30 | (1) The owner or operator of a public water system as |
|
1 | defined in section 3 of the act of May 1, 1984 (P.L.206, |
2 | No.43), known as the Pennsylvania Safe Drinking Water Act. |
3 | (2) Any person subject to the act of June 24, 1939 |
4 | (P.L.842, No.365), referred to as the Water Rights Law. |
5 | "Water source." |
6 | (1) Any of the following: |
7 | (i) Waters of this Commonwealth. |
8 | (ii) A source of water supply used by a water |
9 | purveyor. |
10 | (iii) Mine pools and discharges. |
11 | (iv) Any other waters that are used for drilling or |
12 | completing a well in an unconventional formation. |
13 | (2) The term does not include flowback or production |
14 | waters or other fluids: |
15 | (i) which are used for drilling or completing a well |
16 | in an unconventional formation; and |
17 | (ii) which do not discharge into waters of this |
18 | Commonwealth. |
19 | "Well." A bore hole drilled or being drilled for the purpose |
20 | of, or to be used for, producing, extracting or injecting gas, |
21 | petroleum or another liquid related to oil or gas production or |
22 | storage, including brine disposal, but excluding a bore hole |
23 | drilled to produce potable water. The term does not include a |
24 | bore hole drilled or being drilled for the purpose of, or to be |
25 | used for: |
26 | (1) Systems of monitoring, producing or extracting gas |
27 | from solid waste disposal facilities, if the bore hole is a |
28 | well subject to the act of July 7, 1980 (P.L.380, No.97), |
29 | known as the Solid Waste Management Act, which does not |
30 | penetrate a workable coal seam. |
|
1 | (2) Degasifying coal seams, if the bore hole is: |
2 | (i) used to vent methane to the outside atmosphere |
3 | from an operating coal mine; regulated as part of the |
4 | mining permit under the act of June 22, 1937 (P.L.1987, |
5 | No.394), known as The Clean Streams Law, and the act of |
6 | May 31, 1945 (P.L.1198, No.418), known as the Surface |
7 | Mining Conservation and Reclamation Act; and drilled by |
8 | the operator of the operating coal mine for the purpose |
9 | of increased safety; or |
10 | (ii) used to vent methane to the outside atmosphere |
11 | under a federally funded or State-funded abandoned mine |
12 | reclamation project. |
13 | "Well control emergency." An incident during drilling, |
14 | operation, workover or completion that, as determined by the |
15 | department, poses a threat to public health, welfare or safety, |
16 | including a loss of circulation fluids, kick, casing failure, |
17 | blowout, fire and explosion. |
18 | "Well control specialist." Any person trained to respond to |
19 | a well control emergency with a current certification from a |
20 | well control course accredited by the International Association |
21 | of Drilling Contractors or other organization approved by the |
22 | department. |
23 | "Well operator." Any of the following: |
24 | (1) The person designated as operator or well operator |
25 | on the permit application or well registration. |
26 | (2) If a permit or well registration was not issued, a |
27 | person who locates, drills, operates, alters or plugs a well |
28 | or reconditions a well with the purpose of production from |
29 | the well. |
30 | (3) If a well is used in connection with underground |
|
1 | storage of gas, a storage operator. |
2 | "Wetland." Areas inundated or saturated by surface or |
3 | groundwater at a frequency and duration sufficient to support, |
4 | and which normally support, a prevalence of vegetation typically |
5 | adapted for life in saturated soil conditions, including swamps, |
6 | marshes, bogs and similar areas. |
7 | "Workable coal seams." A coal seam which: |
8 | (1) is actually being mined in the area in question |
9 | under this chapter by underground methods; or |
10 | (2) in the judgment of the Department of Environmental |
11 | Protection, can reasonably be expected to be mined by |
12 | underground methods. |
13 | SUBCHAPTER B |
14 | GENERAL REQUIREMENTS |
15 | Sec. |
16 | 3211. Well permits. |
17 | 3212. Permit objections. |
18 | 3212.1. Comments by municipalities and storage operators. |
19 | 3213. Well registration and identification. |
20 | 3214. Inactive status. |
21 | 3215. Well location restrictions. |
22 | 3216. Well site restoration. |
23 | 3217. Protection of fresh groundwater and casing requirements. |
24 | 3218. Protection of water supplies. |
25 | 3218.1. Notification to public drinking water systems. |
26 | 3218.2. Containment for unconventional wells. |
27 | 3218.3. Transportation records regarding wastewater fluids. |
28 | 3218.4. Corrosion control requirements. |
29 | 3218.5. Gathering lines. |
30 | 3219. Use of safety devices. |
|
1 | 3219.1. Well control emergency response. |
2 | 3220. Plugging requirements. |
3 | 3221. Alternative methods. |
4 | 3222. Well reporting requirements. |
5 | 3222.1. Hydraulic fracturing chemical disclosure requirements. |
6 | 3223. Notification and effect of well transfer. |
7 | 3224. Coal operator responsibilities. |
8 | 3225. Bonding. |
9 | 3226. Oil and Gas Technical Advisory Board. |
10 | 3227. Air containment emissions. |
11 | § 3211. Well permits. |
12 | (a) Permit required.--No person shall drill or alter a well, |
13 | except for alterations which satisfy the requirements of |
14 | subsection (j), without having first obtained a well permit |
15 | under subsections (b), (c), (d) and (e), or operate an abandoned |
16 | or orphan well unless in compliance with subsection (l). A copy |
17 | of the permit shall be kept at the well site during preparation |
18 | and construction of the well site or access road during drilling |
19 | or alteration of the well. No person shall be required to obtain |
20 | a permit to redrill a nonproducing well if the redrilling: |
21 | (1) has been evaluated and approved as part of an order |
22 | from the department authorizing cleaning out and plugging or |
23 | replugging a nonproducing well under section 13(c) of the act |
24 | of December 18, 1984 (P.L.1069, No.214), known as the Coal |
25 | and Gas Resource Coordination Act; and |
26 | (2) is incidental to a plugging or replugging operation |
27 | and the well is plugged within 15 days of redrilling. |
28 | (b) Plat.-- |
29 | (1) The permit application shall be accompanied by a |
30 | plat prepared by a competent engineer or a competent |
|
1 | surveyor, on forms furnished by the department, showing the |
2 | political subdivision and county in which the tract of land |
3 | upon which the well to be drilled, operated or altered is |
4 | located; a list of municipalities adjacent to the well site; |
5 | the name of the surface landowner of record and lessor; the |
6 | name of all surface landowners and water purveyors whose |
7 | water supplies are within 1,000 feet of the proposed well |
8 | location or, in the case of an unconventional well, within |
9 | 3,000 feet from the vertical well bore; the name of the owner |
10 | of record or operator of all known underlying workable coal |
11 | seams; the acreage in the tract to be drilled; the proposed |
12 | location of the well determined by survey, courses and |
13 | distances of the location from two or more permanent |
14 | identifiable points or landmarks on the tract boundary |
15 | corners; the proposed angle and direction of the well if the |
16 | well is to be deviated substantially from a vertical course; |
17 | the number or other identification to be given the well; the |
18 | workable coal seams underlying the tract of land upon which |
19 | the well is to be drilled or altered and which shall be cased |
20 | off under section 3217 (relating to protection of fresh |
21 | groundwater and casing requirements); and any other |
22 | information needed by the department to administer this |
23 | chapter. |
24 | (2) The applicant shall forward by certified mail a copy |
25 | of the plat to the surface landowner; the municipality in |
26 | which the tract of land upon which the well to be drilled is |
27 | located; each municipality within 3,000 feet of the proposed |
28 | unconventional vertical well bore; the municipalities |
29 | adjacent to the well; all surface landowners and water |
30 | purveyors, whose water supplies are within 1,000 feet of the |
|
1 | proposed well location or, in the case of an unconventional |
2 | well, within 3,000 feet of the proposed unconventional |
3 | vertical well bore; storage operators within 3,000 feet of |
4 | the proposed unconventional vertical well bore; the owner and |
5 | lessee of any coal seams; and each coal operator required to |
6 | be identified on the well permit application. |
7 | (b.1) Notification.--The applicant shall submit proof of |
8 | notification with the well permit application. Notification of |
9 | surface owners shall be performed by sending notice to those |
10 | persons to whom the tax notices for the surface property are |
11 | sent, as indicated in the assessment books in the county in |
12 | which the property is located. Notification of surface |
13 | landowners or water purveyors shall be on forms, and in a manner |
14 | prescribed by the department, sufficient to identify the rights |
15 | afforded those persons under section 3218 (relating to |
16 | protection of water supplies) and to advise them of the |
17 | advantages of taking their own predrilling or prealteration |
18 | survey. |
19 | (b.2) Approval.--If the applicant submits to the department |
20 | written approval of the proposed well location by the surface |
21 | landowner and the coal operator, lessee or owner of any coal |
22 | underlying the proposed well location and no objections are |
23 | raised by the department within 15 days of filing, or if no |
24 | approval has been submitted and no objections are made to the |
25 | proposed well location within 15 days from receipt of notice by |
26 | the department, the surface landowner or any coal operator, |
27 | lessee or owner, the written approval shall be filed and become |
28 | a permanent record of the well location, subject to inspection |
29 | at any time by any interested person. The application form to |
30 | operate an abandoned or orphan well shall provide notification |
|
1 | to the applicant of its responsibilities to plug the well upon |
2 | abandonment. |
3 | (c) Applicants.--If the applicant for a well permit is a |
4 | corporation, partnership or person that is not a resident of |
5 | this Commonwealth, the applicant shall designate the name and |
6 | address of an agent for the operator who shall be the attorney- |
7 | in-fact for the operator and who shall be a resident of this |
8 | Commonwealth upon whom notices, orders or other communications |
9 | issued under this chapter may be served and upon whom process |
10 | may be served. Each well operator required to designate an agent |
11 | under this section shall, within five days after termination of |
12 | the designation, notify the department of the termination and |
13 | designate a new agent. |
14 | (d) Permit fee.--Each application for a well permit shall be |
15 | accompanied by a permit fee, established by the Environmental |
16 | Quality Board, which bears a reasonable relationship to the cost |
17 | of administering this chapter. |
18 | (e) Issuance of permit.--The department shall issue a permit |
19 | within 45 days of submission of a permit application unless the |
20 | department denies the permit application for one or more of the |
21 | reasons set forth in subsection (e.1), except that the |
22 | department shall have the right to extend the period for 15 days |
23 | for cause shown upon notification to the applicant of the |
24 | reasons for the extension. The department may impose permit |
25 | terms and conditions necessary to assure compliance with this |
26 | chapter or other laws administered by the department. |
27 | (e.1) Denial of permit.--The department may deny a permit |
28 | for any of the following reasons: |
29 | (1) The well site for which a permit is requested is in |
30 | violation of any of this chapter or issuance of the permit |
|
1 | would result in a violation of this chapter or other |
2 | applicable law. |
3 | (2) The permit application is incomplete. |
4 | (3) Unresolved objections to the well location by coal |
5 | mine owner or operator remain. |
6 | (4) The requirements of section 3225 (relating to |
7 | bonding) have not been met. |
8 | (5) The department finds that the applicant, or any |
9 | parent or subsidiary corporation of the applicant, is in |
10 | continuing violation of this chapter, any other statute |
11 | administered by the department, any regulation promulgated |
12 | under this chapter or a statute administered by the |
13 | department or any plan approval, permit or order of the |
14 | department, unless the violation is being corrected to the |
15 | satisfaction of the department. The right of the department |
16 | to deny a permit under this paragraph shall not take effect |
17 | until the department has taken a final action on the |
18 | violations and: |
19 | (i) the applicant has not appealed the final action |
20 | in accordance with the act of July 13, 1988 (P.L.530, |
21 | No.94), known as the Environmental Hearing Board Act; or |
22 | (ii) if an appeal has been filed, no supersedeas has |
23 | been issued. |
24 | (6) The applicant failed to pay the fee or file a report |
25 | under section 2303(c) (relating to administration), unless an |
26 | appeal is pending. The commission shall notify the department |
27 | of any applicant who has failed to pay the fee or file a |
28 | report and who does not have an appeal pending. |
29 | (f) Drilling.-- |
30 | (1) Upon issuance of a permit, the well operator may |
|
1 | drill, operate or alter at the exact location shown on the |
2 | plat after providing the department, the surface landowner |
3 | and the local political subdivision in which the well is to |
4 | be located 24 hours' notice of the date that drilling will |
5 | commence. Notification to the department must be provided |
6 | electronically. If there is a break in drilling of 30 days or |
7 | more, the well operator shall notify the department at least |
8 | 24 hours prior to the resumption of drilling. |
9 | (2) The unconventional well operator shall provide the |
10 | department 24 hours' notice prior to cementing all casing |
11 | strings, conducting pressure tests of the production casing, |
12 | stimulation and abandoning or plugging an unconventional |
13 | well. |
14 | (3) In noncoal areas where more than one well is to be |
15 | drilled as part of the same development project, only the |
16 | first well of the project need be located by survey. |
17 | Remaining wells of the project shall be shown on the plat in |
18 | a manner prescribed by regulation. |
19 | (4) Prior to drilling each additional project well, the |
20 | well operator shall notify the department and provide |
21 | reasonable notice of the date on which drilling will |
22 | commence. |
23 | (5) Whenever, before or during the drilling of a well |
24 | not within the boundaries of an operating coal mine, the well |
25 | operator encounters conditions of a nature which renders |
26 | drilling of the bore hole or a portion thereof impossible, or |
27 | more hazardous than usual, the well operator, upon verbal |
28 | notice to the department, may immediately plug all or part of |
29 | the bore hole, if drilling has occurred, and commence a new |
30 | bore hole not more than 50 feet from the old bore hole if the |
|
1 | location of the new bore hole does not violate section 3215 |
2 | (relating to well location restrictions) and, in the case of |
3 | a well subject to act of July 25, 1961 (P.L.825, No.359), |
4 | known as the Oil and Gas Conservation Law, if the new |
5 | location complies with existing laws, regulations and spacing |
6 | orders and the new bore hole is at least 330 feet from the |
7 | nearest lease boundary. |
8 | (6) Within ten days of commencement of the new bore |
9 | hole, the well operator shall file with the department a |
10 | written notice of intention to plug, a well record, a |
11 | completion report, a plugging certificate for the original |
12 | bore hole and an amended plat for the new bore hole. |
13 | (7) The well operator shall forward a copy of the |
14 | amended plat to the surface landowner identified on the well |
15 | permit application within ten days of commencement of the new |
16 | well bore. |
17 | (g) Posting.--The well permit number and operator's name, |
18 | address and telephone number shall be conspicuously posted at |
19 | the drilling site during site preparation, including the |
20 | construction of access roads, construction of the well site and |
21 | during drilling, operating or alteration of the well. |
22 | (h) Labeling.--The well operator shall install the permit |
23 | number issued by the department in a legible, visible and |
24 | permanent manner on the well upon completion. |
25 | (i) Expiration.--Well permits issued for drilling wells |
26 | under this chapter shall expire one year after issuance unless |
27 | operations for drilling the well are commenced within the period |
28 | and pursued with due diligence or unless the permit is renewed |
29 | in accordance with regulations of the department. If drilling is |
30 | commenced during the one-year period, the well permit shall |
|
1 | remain in force until the well is plugged in accordance with |
2 | section 3220 (relating to plugging requirements) or the permit |
3 | is revoked. A drilling permit issued prior to April 18, 1985, |
4 | for a well which is an operating well on April 18, 1985, shall |
5 | remain in force as a well permit until the well is plugged in |
6 | accordance with section 3220. |
7 | (j) Exceptions.--The Environmental Quality Board may |
8 | establish by regulation certain categories of alterations of |
9 | permitted or registered wells for which permitting requirements |
10 | of this section shall not apply. A well operator or owner who |
11 | proposes to conduct the alteration activity shall first obtain a |
12 | permit or registration modification from the department. The |
13 | Environmental Quality Board shall promulgate regulations as to |
14 | the requirements for modifications. |
15 | (k) No transfer permitted.--No permit issued under this |
16 | section or registration issued under section 3213 (relating to |
17 | well registration and identification) may be transferred without |
18 | prior approval of the department. A request for approval of a |
19 | transfer shall be on the forms, and in the manner, prescribed by |
20 | the department. The department shall approve or deny a transfer |
21 | request within 45 days of receipt of a complete and accurate |
22 | application. The department may deny a request only for reasons |
23 | set forth in subsection (e.1)(4) and (5). Approval of a transfer |
24 | request shall permanently transfer responsibility to plug the |
25 | well under section 3220 to the recipient of the transferred |
26 | permit or registration. |
27 | (l) Regulations.--The Environmental Quality Board may |
28 | establish by regulation requirements for the permitting and |
29 | operation of abandoned or orphan wells. A person who proposes to |
30 | conduct abandoned or orphan well operations shall first obtain a |
|
1 | permit to operate an abandoned or orphan well. |
2 | (m) Water management.--The following shall apply to water |
3 | management: |
4 | (1) No person may withdraw or use water from water |
5 | sources within this Commonwealth for the drilling or |
6 | hydraulic fracture stimulation of any natural gas well |
7 | completed in an unconventional gas formation, whether on or |
8 | off of the land where the gas well is located, except in |
9 | accordance with a water management plan approved by the |
10 | department. |
11 | (2) The department shall review and approve water |
12 | management plans based upon a determination that the proposed |
13 | withdrawal, when operated in accordance with the proposed |
14 | withdrawal operating conditions set forth in the plan, |
15 | including conditions relating to quantity, withdrawal rate |
16 | and timing and any passby flow conditions, will: |
17 | (i) not adversely affect the quantity or quality of |
18 | water available to other users of the same water sources; |
19 | (ii) protect and maintain the designated and |
20 | existing uses of water sources; |
21 | (iii) not cause adverse impact to water quality in |
22 | the watershed considered as a whole; and |
23 | (iv) include a reuse plan for fluids that will be |
24 | used to hydraulically fracture wells. |
25 | (3) As to criteria: |
26 | (i) The criteria under paragraph (2) shall be |
27 | presumed to be achieved if the proposed water withdrawal |
28 | has been approved by and is operated in accordance with |
29 | conditions established by the Susquehanna River Basin |
30 | Commission, the Delaware River Basin Commission or the |
|
1 | Great Lakes Commission, as applicable. |
2 | (ii) Notwithstanding subparagraph (i), the |
3 | department may establish additional requirements as |
4 | necessary to comply with the laws of this Commonwealth. |
5 | (4) In addition to the requirements under paragraphs |
6 | (1), (2) and (3), compliance with a department-approved water |
7 | management plan shall be a condition of any permit issued |
8 | under this chapter for the drilling or hydraulic fracture |
9 | stimulation of any natural gas well completed in an |
10 | unconventional formation and shall be deemed to satisfy the |
11 | laws of this Commonwealth. |
12 | § 3212. Permit objections. |
13 | (a) General rule.--If a well referred to in section 3211(b) |
14 | (relating to well permits) will be located on a tract whose |
15 | surface is owned by a person other than the well operator, the |
16 | surface landowner affected shall be notified of the intent to |
17 | drill and may file objections, in accordance with section 3251 |
18 | (relating to conferences), based on the assertion that the well |
19 | location violates section 3215 (relating to well location |
20 | restrictions) or that information in the application is untrue |
21 | in any material respect, within 15 days of the receipt by the |
22 | surface owner of the plat under section 3211(b). Receipt of |
23 | notice by the surface owner shall be presumed to have occurred |
24 | 15 days from the date of the certified mailing when the well |
25 | operator submits a copy of the certified mail receipt sent to |
26 | the surface owner and an affidavit certifying that the address |
27 | of the surface owner to which notice was sent is the same as the |
28 | address listed in the assessment books in the county where the |
29 | property is located. If no objection is filed or none is raised |
30 | by the department within 15 days after receipt of the plat by |
|
1 | the surface landowner, or, if written approval by the surface |
2 | landowner is filed with the department and no objection is |
3 | raised by the department within 15 days of filing, the |
4 | department shall proceed to issue or deny the permit. |
5 | (b) Special circumstances.--If a well referred to in section |
6 | 3211(b) will penetrate within the outside coal boundaries of an |
7 | operating coal mine or a coal mine already projected and platted |
8 | but not yet being operated, or within 1,000 linear feet beyond |
9 | those boundaries, and, in the opinion of the coal owner or |
10 | operator, the well or a pillar of coal about the well will |
11 | unduly interfere with or endanger the mine, the coal owner or |
12 | operator affected may file objections under section 3251 to the |
13 | proposed location within 15 days of the receipt by the coal |
14 | operator of the plat under section 3211(b). If possible, an |
15 | alternative location at which the proposed well could be drilled |
16 | to overcome the objections shall be indicated. If no objection |
17 | to the proposed location is filed or if none is raised by the |
18 | department within 15 days after receipt of the plat by the coal |
19 | operator or owner, or, if written approval by the coal operator |
20 | or owner of the location is filed with the department and no |
21 | objection is raised by the department within 15 days of filing, |
22 | the department shall proceed to issue or deny the permit. |
23 | (c) Procedure upon objection.--If an objection is filed by a |
24 | coal operator or owner or made by the department, the department |
25 | shall fix a time and place for a conference under section 3251 |
26 | not more than ten days from the date of service of the objection |
27 | to allow the parties to consider the objection and attempt to |
28 | agree on a location. If they fail to agree, the department, by |
29 | an appropriate order, shall determine a location on the tract of |
30 | land as near to the original location as possible where, in the |
|
1 | judgment of the department, the well can be safely drilled |
2 | without unduly interfering with or endangering the mine as |
3 | defined in subsection (b). The new location agreed upon by the |
4 | parties or determined by the department shall be indicated on |
5 | the plat on file with the department and become a permanent |
6 | record upon which the department shall proceed to issue or deny |
7 | the permit. |
8 | (d) Survey.--Within 120 days after commencement of drilling |
9 | operations, the coal operator shall accurately locate the well |
10 | by a closed survey on the same datum as the mine workings or |
11 | coal boundaries are mapped, file the results of the survey with |
12 | the department and forward a copy by certified mail to the well |
13 | operator. |
14 | § 3212.1. Comments by municipalities and storage operators. |
15 | (a) Municipalities.--The municipality where the tract of |
16 | land upon which the unconventional well to be drilled is located |
17 | may submit written comments to the department describing local |
18 | conditions or circumstances which the municipality has |
19 | determined should be considered by the department in rendering |
20 | its determination on the unconventional well permit. A comment |
21 | under this subsection must be submitted to the department within |
22 | 15 days of the receipt of the plat under section 3211(b) |
23 | (relating to well permits). The municipality shall |
24 | simultaneously forward a copy of its comments to the permit |
25 | applicant and all other parties entitled to a copy of the plat |
26 | under section 3211(b), who may submit a written response. A |
27 | written response must be submitted to the department within ten |
28 | days of receipt of the comments of the municipality. |
29 | (a.1) Storage operators.--A storage operator located within |
30 | 3,000 feet of a proposed unconventional vertical well bore may |
|
1 | submit written comments to the department describing |
2 | circumstances which the storage operator has determined should |
3 | be considered by the department in rendering its determination |
4 | on the unconventional well permit. A comment under this |
5 | subsection must be submitted to the department within 15 days of |
6 | the receipt of the plat under section 3211(b). The storage |
7 | operator shall simultaneously forward a copy of its comments to |
8 | the permit applicant and all other parties entitled to a copy of |
9 | the plat under section 3211(b), who may submit a written |
10 | response. A written response must be submitted to the department |
11 | within ten days of receipt of the comments of the storage |
12 | operator. |
13 | (b) Consideration by department.--Comments and responses |
14 | under subsections (a) and (a.1) may be considered by the |
15 | department in accordance with section 3215(d) (relating to well |
16 | location restrictions). |
17 | (c) No extension of time period.--The process outlined in |
18 | this section shall not extend the time period for the issuance |
19 | or denial of a permit beyond the time period set forth in this |
20 | chapter. |
21 | § 3213. Well registration and identification. |
22 | (a) General rule.--On or before July 5, 1996, each person |
23 | who owned or operated a well in existence prior to April 18, |
24 | 1985, which has not been registered with the department and for |
25 | which no drilling permit has been issued by the department, |
26 | shall register the well with the department. A well owner or |
27 | operator who registers under this subsection and a well owner or |
28 | operator who has previously registered a well under this chapter |
29 | shall, on or before July 5, 1996, identify any abandoned well on |
30 | property which the well owner or operator owns or leases and |
|
1 | request approval from the department for classification of the |
2 | well as an orphan well. Information regarding wells to be |
3 | registered or identified shall be provided on a form, or in a |
4 | manner prescribed by the department, and shall include: |
5 | (1) The name and address of the well operator and, if |
6 | the well operator is a corporation, partnership or person |
7 | nonresident of this Commonwealth, the name and address of an |
8 | agent for the operator upon whom notices, orders, process or |
9 | other communications issued under this chapter may be served. |
10 | (2) The well name and the location of the well indicated |
11 | by a point on a 7 1/2 minute United States Geological Survey |
12 | topographic map or any other location description sufficient |
13 | to enable the department to locate the well on the ground. |
14 | (3) The approximate date of drilling and completing the |
15 | well, its approximate depth and producing horizons, well |
16 | construction information and, if available, driller's logs. |
17 | (4) An indemnity bond, an alternative fee in lieu of |
18 | bonding or other evidence of financial security submitted by |
19 | the well operator and deemed appropriate by the department |
20 | and satisfying the requirements of section 3225 (relating to |
21 | bonding). No bond, alternative fee or other evidence of |
22 | financial security shall be required for identification of an |
23 | orphan well. For wells drilled prior to January 30, 1956, |
24 | which have not been bonded, the well operator shall have five |
25 | years to comply with the provisions of this paragraph. |
26 | (5) A registration fee of $15 per well or blanket |
27 | registration fee of $250 for multiple well registration |
28 | applications submitted simultaneously. The registration fee |
29 | shall be waived until July 5, 1996, and no fee shall be |
30 | charged for identification of an orphan well. |
|
1 | (a.1) Orphan wells.--After July 5, 1996, a well owner, well |
2 | operator or other person discovering an abandoned well on |
3 | property purchased or leased by the well owner, well operator or |
4 | other person shall identify it to the department within 60 days |
5 | of discovery and advise the department that he is seeking |
6 | classification of the well as an orphan well. No fee shall be |
7 | required for identification. |
8 | (b) Extension.--The department may extend the one-year time |
9 | period under subsection (a) for good cause shown. The extension |
10 | may not exceed a period ending two years from April 18, 1985. |
11 | The department may adopt and promulgate guidelines designed to |
12 | ensure a fair implementation of this section, recognizing the |
13 | practical difficulties of locating unpermitted wells and |
14 | complying with the reporting requirements of this chapter. |
15 | (c) Installation of registration number.--The well operator |
16 | shall install the registration number issued by the department |
17 | in a legible, conspicuous and permanent manner on the well |
18 | within 60 days of issuance. |
19 | (d) Definition.--For purposes of subsection (a)(4) and (5), |
20 | the term "owner" does not include an owner or possessor of |
21 | surface real property, on which an abandoned well is located, |
22 | who did not participate or incur costs in, and had no right of |
23 | control over, the drilling or extraction operation of the |
24 | abandoned well. |
25 | § 3214. Inactive status. |
26 | (a) General rule.--Upon application, the department shall |
27 | grant inactive status for a period of five years for a permitted |
28 | or registered well, if the following requirements are met: |
29 | (1) the condition of the well is sufficient to prevent |
30 | damage to the producing zone or contamination of fresh water |
|
1 | or other natural resources or surface leakage of any |
2 | substance; |
3 | (2) the condition of the well is sufficient to stop the |
4 | vertical flow of fluids or gas within the well bore and is |
5 | adequate to protect freshwater aquifers, unless the |
6 | department determines the well poses a threat to the health |
7 | and safety of persons or property or to the environment; |
8 | (3) the operator anticipates construction of a pipeline |
9 | or future use of the well for primary or enhanced recovery, |
10 | gas storage, approved disposal or other appropriate uses |
11 | related to oil and gas well production; and |
12 | (4) the applicant satisfies the bonding requirements of |
13 | sections 3213 (relating to well registration and |
14 | identification) and 3225 (relating to bonding), except that |
15 | the department may require additional financial security for |
16 | a well on which an alternative fee is being paid in lieu of |
17 | bonding under section 3225(d). |
18 | (b) Monitoring.--The owner or operator of a well granted |
19 | inactive status shall be responsible for monitoring the |
20 | mechanical integrity of the well to ensure that the requirements |
21 | of subsection (a)(1) and (2) are met and shall report the same |
22 | on an annual basis to the department in the manner and form |
23 | prescribed by departmental regulations. |
24 | (c) (Reserved). |
25 | (d) Return to active status.--A well granted inactive status |
26 | under subsection (a) shall be plugged in accordance with section |
27 | 3220 (relating to plugging requirements) or returned to active |
28 | status within five years of the date inactive status was |
29 | granted, unless the owner or operator applies for an extension |
30 | of inactive status which may be granted on a year-to-year basis |
|
1 | if the department determines that the owner or operator has |
2 | demonstrated ability to continue meeting the requirements of |
3 | this section and the owner or operator certifies that the well |
4 | will be of future use within a reasonable period of time. An |
5 | owner or operator who has been granted inactive status for a |
6 | well which is returned to active status prior to expiration of |
7 | the five-year period set forth in subsection (a) shall notify |
8 | the department that the well has been returned to active status |
9 | and shall not be permitted to apply for another automatic five- |
10 | year period of inactive status for the well. The owner or |
11 | operator may make application to return the well to inactive |
12 | status, and the application may be approved on a year-to-year |
13 | basis if the department determines that the owner or operator |
14 | has demonstrated an ability to continue meeting the requirements |
15 | of this section and the owner or operator certifies that the |
16 | well will be of future use within a reasonable period of time. |
17 | The department shall approve or deny an application to extend a |
18 | period of inactive status or to return a well to inactive status |
19 | within 60 days of receipt of the application, and the |
20 | application shall not be unreasonably denied. If the department |
21 | has not completed its review of the application within 60 days, |
22 | the inactive status shall continue until the department has made |
23 | a determination on the request. If the department denies an |
24 | application to extend the period of inactive status or to return |
25 | a well to inactive status, a well owner or operator aggrieved by |
26 | the denial shall have the right to appeal the denial to the |
27 | Environmental Hearing Board within 30 days of receipt of the |
28 | denial. Upon cause shown by a well owner or operator, the board |
29 | may grant a supersedeas under section 4 of the act of July 13, |
30 | 1988 (P.L.530, No.94), known as the Environmental Hearing Board |
|
1 | Act, so that the well in question may retain inactive status |
2 | during the period of the appeal. |
3 | (e) Revocation of inactive status.--The department may |
4 | revoke inactive status and order immediate plugging of a well if |
5 | the well is in violation of this chapter or rules or regulations |
6 | promulgated under this chapter or if the owner or operator |
7 | demonstrates inability to perform obligations under this chapter |
8 | or becomes financially insolvent, or upon receipt by the |
9 | department of notice of bankruptcy proceedings by the permittee. |
10 | § 3215. Well location restrictions. |
11 | (a) General rule.--Wells may not be drilled within 200 feet, |
12 | or, in the case of an unconventional gas well, 500 feet measured |
13 | horizontally from the vertical well bore to a building or water |
14 | well, existing when the copy of the plat is mailed as required |
15 | by section 3211(b) (relating to well permits) without written |
16 | consent of the owner of the building or water well. |
17 | Unconventional gas wells may not be drilled within 1,000 feet |
18 | measured horizontally from the vertical well bore to any |
19 | existing water well, surface water intake, reservoir or other |
20 | water supply extraction point used by a water purveyor without |
21 | the written consent of the water purveyor. If consent is not |
22 | obtained and the distance restriction would deprive the owner of |
23 | the oil and gas rights of the right to produce or share in the |
24 | oil or gas underlying the surface tract, the well operator shall |
25 | be granted a variance from the distance restriction upon |
26 | submission of a plan identifying the additional measures, |
27 | facilities or practices as prescribed by the department to be |
28 | employed during well site construction, drilling and operations. |
29 | The variance shall include additional terms and conditions |
30 | required by the department to ensure safety and protection of |
|
1 | affected persons and property, including insurance, bonding, |
2 | indemnification and technical requirements. Notwithstanding |
3 | section 3211(e), if a variance request has been submitted, the |
4 | department may extend its permit review period for up to 15 days |
5 | upon notification to the applicant of the reasons for the |
6 | extension. |
7 | (b) Limitation.-- |
8 | (1) No well site may be prepared or well drilled within |
9 | 100 feet or, in the case of an unconventional well, 300 feet |
10 | from the vertical well bore or 100 feet from the edge of the |
11 | well site, whichever is greater, measured horizontally from |
12 | any solid blue lined stream, spring or body of water as |
13 | identified on the most current 7 1/2 minute topographic |
14 | quadrangle map of the United States Geological Survey. |
15 | (2) The edge of the disturbed area associated with any |
16 | unconventional well site must maintain a 100-foot setback |
17 | from the edge of any solid blue lined stream, spring or body |
18 | of water as identified on the most current 7 1/2 minute |
19 | topographic quadrangle map of the United States Geological |
20 | Survey. |
21 | (3) No unconventional well may be drilled within 300 |
22 | feet of any wetlands greater than one acre in size, and the |
23 | edge of the disturbed area of any well site must maintain a |
24 | 100-foot setback from the boundary of the wetlands. |
25 | (4) The department shall waive the distance restrictions |
26 | upon submission of a plan identifying additional measures, |
27 | facilities or practices to be employed during well site |
28 | construction, drilling and operations necessary to protect |
29 | the waters of this Commonwealth. The waiver, if granted, |
30 | shall include additional terms and conditions required by the |
|
1 | department necessary to protect the waters of this |
2 | Commonwealth. Notwithstanding section 3211(e), if a waiver |
3 | request has been submitted, the department may extend its |
4 | permit review period for up to 15 days upon notification to |
5 | the applicant of the reasons for the extension. |
6 | (c) Impact.--On making a determination on a well permit, the |
7 | department shall consider the impact of the proposed well on |
8 | public resources, including, but not limited to: |
9 | (1) Publicly owned parks, forests, game lands and |
10 | wildlife areas. |
11 | (2) National or State scenic rivers. |
12 | (3) National natural landmarks. |
13 | (4) Habitats of rare and endangered flora and fauna and |
14 | other critical communities. |
15 | (5) Historical and archaeological sites listed on the |
16 | Federal or State list of historic places. |
17 | (6) Sources used for public drinking supplies in |
18 | accordance with subsection (b). |
19 | (d) Consideration of municipality and storage operator |
20 | comments.--The department may consider the comments submitted |
21 | under section 3212.1 (relating to comments by municipalities and |
22 | storage operators) in making a determination on a well permit. |
23 | Notwithstanding any other law, no municipality or storage |
24 | operator shall have a right of appeal or other form of review |
25 | from the department's decision. |
26 | (d.1) Additional protective measures.--The department may |
27 | establish additional protective measures for storage of |
28 | hazardous chemicals and materials intended to be used, or that |
29 | have been used, on an unconventional well drilling site within |
30 | 750 feet of a solid blue lined stream, spring or body of water |
|
1 | identified on the most current 7 1/2 minute topographic |
2 | quadrangle map of the United States Geological Survey. |
3 | (e) Regulation criteria.--The Environmental Quality Board |
4 | shall develop by regulation criteria: |
5 | (1) For the department to utilize for conditioning a |
6 | well permit based on its impact to the public resources |
7 | identified under subsection (c) and for ensuring optimal |
8 | development of oil and gas resources and respecting property |
9 | rights of oil and gas owners. |
10 | (2) For appeal to the Environmental Hearing Board of a |
11 | permit containing conditions imposed by the department. The |
12 | regulations shall also provide that the department has the |
13 | burden of proving that the conditions were necessary to |
14 | protect against a probable harmful impact of the public |
15 | resources. |
16 | (f) Floodplains.-- |
17 | (1) No well site may be prepared or well drilled within |
18 | any floodplain if the well site will have: |
19 | (i) a pit or impoundment containing drilling |
20 | cuttings, flowback water, produced water or hazardous |
21 | materials, chemicals or wastes within the floodplain; or |
22 | (ii) a tank containing hazardous materials, |
23 | chemicals, condensate, wastes, flowback or produced water |
24 | within the floodway. |
25 | (2) A well site shall not be eligible for a floodplain |
26 | restriction waiver if the well site will have a tank |
27 | containing condensate, flowback or produced water within the |
28 | flood fringe unless all the tanks have adequate floodproofing |
29 | in accordance with the National Flood Insurance Program |
30 | standards and accepted engineering practices. |
|
1 | (3) The department may waive restrictions upon |
2 | submission of a plan that shall identify the additional |
3 | measures, facilities or practices to be employed during well |
4 | site construction, drilling and operations. The waiver, if |
5 | granted, shall impose permit conditions necessary to protect |
6 | the waters of this Commonwealth. |
7 | (4) Best practices as determined by the department to |
8 | ensure the protection of the waters of this Commonwealth must |
9 | be utilized for the storage and handling of all water, |
10 | chemicals, fuels, hazardous materials or solid waste on a |
11 | well site located in a floodplain. The department may request |
12 | that the well site operator submit a plan for the storage and |
13 | handling of the materials for approval by the department and |
14 | may impose conditions or amend permits to include permit |
15 | conditions as are necessary to protect the environment, |
16 | public health and safety. |
17 | (5) Unless otherwise specified by the department, the |
18 | boundary of the floodplain shall be as indicated on maps and |
19 | flood insurance studies provided by the Federal Emergency |
20 | Management Agency. In an area where no Federal Emergency |
21 | Management Agency maps or studies have defined the boundary |
22 | of the 100-year frequency floodplain, absent evidence to the |
23 | contrary, the floodplain shall extend from: |
24 | (i) any perennial stream up to 100 feet horizontally |
25 | from the top of the bank of the perennial stream; or |
26 | (ii) from any intermittent stream up to 50 feet |
27 | horizontally from the top of the bank of the intermittent |
28 | stream. |
29 | (g) Applicability.-- |
30 | (1) This section shall not apply to a well proposed to |
|
1 | be drilled on an existing well site for which at least one |
2 | well permit has been issued prior to the effective date of |
3 | this section. |
4 | (2) Nothing in this section shall alter or abridge the |
5 | terms of any contract, mortgage or other agreement entered |
6 | into prior to the effective date of this section. |
7 | § 3216. Well site restoration. |
8 | (a) General rule.--Each oil or gas well owner or operator |
9 | shall restore the land surface within the area disturbed in |
10 | siting, drilling, completing and producing the well. |
11 | (b) Plan.--During and after earthmoving or soil disturbing |
12 | activities, including, but not limited to, activities related to |
13 | siting, drilling, completing, producing and plugging the well, |
14 | erosion and sedimentation control measures shall be implemented |
15 | in accordance with an erosion and sedimentation control plan |
16 | prepared in accordance with the act of June 22, 1937 (P.L.1987, |
17 | No.394), known as The Clean Streams Law. |
18 | (c) Pits, drilling supplies and equipment.--Within nine |
19 | months after completion of drilling of a well, the owner or |
20 | operator shall restore the well site, remove or fill all pits |
21 | used to contain produced fluids or industrial wastes and remove |
22 | all drilling supplies and equipment not needed for production. |
23 | Drilling supplies and equipment not needed for production may be |
24 | stored on the well site if express written consent of the |
25 | surface landowner is obtained. |
26 | (d) Items related to production or storage.--Within nine |
27 | months after plugging a well, the owner or operator shall remove |
28 | all production or storage facilities, supplies and equipment and |
29 | restore the well site. |
30 | (e) Clean Streams Law.--Restoration activities required by |
|
1 | this chapter or in regulations promulgated under this chapter |
2 | shall also comply with all applicable provisions of The Clean |
3 | Streams Law. |
4 | (f) Violation of chapter.--Failure to restore the well site |
5 | as required in this chapter or regulations promulgated under |
6 | this chapter constitutes a violation of this chapter. |
7 | (g) Extension.-- |
8 | (1) The restoration period may be extended by the |
9 | department for an additional period of time not to exceed two |
10 | years upon demonstration by the well owner or operator that: |
11 | (i) the extension will result in less earth |
12 | disturbance, increased water reuse or more efficient |
13 | development of the resources; or |
14 | (ii) site restoration cannot be achieved due to |
15 | adverse weather conditions or a lack of essential fuel, |
16 | equipment or labor. |
17 | (2) The demonstration under paragraph (1) shall do all |
18 | of the following: |
19 | (i) Include a site restoration plan that shall |
20 | provide for: |
21 | (A) the timely removal or fill of all pits used |
22 | to contain produced fluids or industrial wastes; |
23 | (B) the removal of all drilling supplies and |
24 | equipment not needed for production; |
25 | (C) the stabilization of the well site that |
26 | shall include interim postconstruction storm water |
27 | management best management practices; or |
28 | (D) other measures to be employed to minimize |
29 | accelerated erosion and sedimentation in accordance |
30 | with The Clean Streams Law. |
|
1 | (ii) Provide for returning the portions of the site |
2 | not occupied by production facilities or equipment to |
3 | approximate original contours and making them capable of |
4 | supporting the uses that existed prior to drilling the |
5 | well. |
6 | (3) The department may condition an extension under this |
7 | subsection as is necessary in accordance with The Clean |
8 | Streams Law. |
9 | (h) Definition.--As used in this section, the term "well |
10 | site" means areas occupied by all equipment or facilities |
11 | necessary for or incidental to drilling, production or plugging |
12 | a well. |
13 | § 3217. Protection of fresh groundwater and casing |
14 | requirements. |
15 | (a) General rule.--To aid in protection of fresh |
16 | groundwater, well operators shall control and dispose of brines |
17 | produced from the drilling, alteration or operation of an oil or |
18 | gas well in a manner consistent with the act of June 22, 1937 |
19 | (P.L.1987, No.394), known as The Clean Streams Law, or any |
20 | regulation promulgated under The Clean Streams Law. |
21 | (b) Casing.--To prevent migration of gas or fluids into |
22 | sources of fresh groundwater and pollution or diminution of |
23 | fresh groundwater, a string or strings of casing shall be run |
24 | and permanently cemented in each well drilled through the fresh |
25 | water-bearing strata to a depth and in a manner prescribed by |
26 | regulation by the department. |
27 | (c) Procedure when coal has been removed.--If a well is |
28 | drilled at a location where coal has been removed from one or |
29 | more coal seams, the well shall be drilled and cased to prevent |
30 | migration of gas or fluids into the seam from which coal has |
|
1 | been removed in a manner prescribed by regulation of the |
2 | department. The department and the coal operator, owner or |
3 | lessee shall be given at least 72 hours' notice prior to |
4 | commencement of work protecting the mine. |
5 | (d) Procedure when coal has not been removed.--If a well is |
6 | drilled at a location where the coal seam has not been removed, |
7 | the well shall be drilled to a depth and of a size sufficient to |
8 | permit placement of casing, packers in and vents on the hole at |
9 | the points and in the manner prescribed by regulation to exclude |
10 | gas or fluids from the coal seam, except gas or fluids found |
11 | naturally in the seam itself, and to enable monitoring the |
12 | integrity of the production casing. |
13 | § 3218. Protection of water supplies. |
14 | (a) General rule.--In addition to the requirements of |
15 | subsection (c.1), a well operator who affects a public or |
16 | private water supply by pollution or diminution shall restore or |
17 | replace the affected supply with an alternate source of water |
18 | adequate in quantity or quality for the purposes served by the |
19 | supply. The department shall ensure that the quality of a |
20 | restored or replaced water supply meets the standards |
21 | established under the act of May 1, 1984 (P.L.206, No.43), known |
22 | as the Pennsylvania Safe Drinking Water Act, or is comparable to |
23 | the quality of the water supply before it was affected by the |
24 | operator if that water supply exceeded those standards. The |
25 | Environmental Quality Board shall promulgate regulations |
26 | necessary to meet the requirements of this subsection. |
27 | (b) Pollution or diminution of water supply.--A landowner or |
28 | water purveyor suffering pollution or diminution of a water |
29 | supply as a result of the drilling, alteration or operation of |
30 | an oil or gas well may so notify the department and request that |
|
1 | an investigation be conducted. Within ten days of notification, |
2 | the department shall investigate the claim and make a |
3 | determination within 45 days following notification. If the |
4 | department finds that the pollution or diminution was caused by |
5 | drilling, alteration or operation activities or if it presumes |
6 | the well operator responsible for pollution under subsection |
7 | (c), the department shall issue orders to the well operator |
8 | necessary to assure compliance with subsection (a), including |
9 | orders requiring temporary replacement of a water supply where |
10 | it is determined that pollution or diminution may be of limited |
11 | duration. |
12 | (b.1) (Reserved). |
13 | (b.2) Telephone number.--The department shall establish a |
14 | single Statewide toll-free telephone number that persons may use |
15 | to report cases of water contamination which may be associated |
16 | with the development of oil and gas resources. The Statewide |
17 | toll-free telephone number shall be provided in a conspicuous |
18 | manner in the notification required under section 3211(b) |
19 | (relating to well permits) and on the department's Internet |
20 | website. |
21 | (b.3) Responses.--The department shall develop appropriate |
22 | administrative responses to calls received on the Statewide |
23 | toll-free number for water contamination. |
24 | (b.4) Website.--The department shall publish, on its |
25 | Internet website, lists of confirmed cases of subterranean water |
26 | supply contamination that result from hydraulic fracturing. |
27 | (b.5) Facility operation qualifications.--The department |
28 | shall ensure that a facility which seeks a National Pollutant |
29 | Discharge Elimination System permit for the purposes of treating |
30 | and discharging wastewater originating from oil and gas |
|
1 | activities into waters of this Commonwealth is operated by a |
2 | competent and qualified individual. |
3 | (c) Presumption.--Unless rebutted by a defense established |
4 | in subsection (d), it shall be presumed that a well operator is |
5 | responsible for pollution of a water supply if: |
6 | (1) except as set forth in paragraph (2): |
7 | (i) the water supply is within 1,000 feet of an oil |
8 | or gas well; and |
9 | (ii) the pollution occurred within six months after |
10 | completion of drilling or alteration of the oil or gas |
11 | well; or |
12 | (2) in the case of an unconventional well: |
13 | (i) the water supply is within 2,500 feet of the |
14 | unconventional vertical well bore; and |
15 | (ii) the pollution occurred within 12 months of the |
16 | later of completion, drilling, stimulation or alteration |
17 | of the unconventional well. |
18 | (c.1) Requirement.--If the affected water supply is within |
19 | the rebuttable presumption area as provided in subsection (c) |
20 | and the rebuttable presumption applies, the operator shall |
21 | provide a temporary water supply if the water user is without a |
22 | readily available alternative source of water. The temporary |
23 | water supply provided under this subsection shall be adequate in |
24 | quantity and quality for the purposes served by the supply. |
25 | (d) Defenses.--To rebut the presumption established under |
26 | subsection (c), a well operator must affirmatively prove any of |
27 | the following: |
28 | (1) except as set forth in paragraph (2): |
29 | (i) the pollution existed prior to the drilling or |
30 | alteration activity as determined by a predrilling or |
|
1 | prealteration survey; |
2 | (ii) the landowner or water purveyor refused to |
3 | allow the operator access to conduct a predrilling or |
4 | prealteration survey; |
5 | (iii) the water supply is not within 1,000 feet of |
6 | the well; |
7 | (iv) the pollution occurred more than six months |
8 | after completion of drilling or alteration activities; |
9 | and |
10 | (v) the pollution occurred as the result of a cause |
11 | other than the drilling or alteration activity; or |
12 | (2) in the case of an unconventional well: |
13 | (i) the pollution existed prior to the drilling, |
14 | stimulation or alteration activity as determined by a |
15 | predrilling or prealteration survey; |
16 | (ii) the landowner or water purveyor refused to |
17 | allow the operator access to conduct a predrilling or |
18 | prealteration survey; |
19 | (iii) the water supply is not within 2,500 feet of |
20 | the unconventional vertical well bore; |
21 | (iv) the pollution occurred more than 12 months |
22 | after completion of drilling or alteration activities; or |
23 | (v) the pollution occurred as the result of a cause |
24 | other than the drilling or alteration activity. |
25 | (e) Independent certified laboratory.--An operator electing |
26 | to preserve a defense under subsection (d)(1) or (2) shall |
27 | retain an independent certified laboratory to conduct a |
28 | predrilling or prealteration survey of the water supply. A copy |
29 | of survey results shall be submitted to the department and the |
30 | landowner or water purveyor in the manner prescribed by the |
|
1 | department. |
2 | (e.1) Notice.--An operator of an unconventional well must |
3 | provide written notice to the landowner or water purveyor |
4 | indicating that the presumption established under subsection (c) |
5 | may be void if the landowner or water purveyor refused to allow |
6 | the operator access to conduct a predrilling or prealteration |
7 | survey. Proof of written notice to the landowner or water |
8 | purveyor shall be provided to the department for the operator to |
9 | retain the protections under subsection (d)(2)(ii). Proof of |
10 | written notice shall be presumed if provided in accordance with |
11 | section 3212(a) (relating to permit objections). |
12 | (f) Other remedies preserved.--Nothing in this section shall |
13 | prevent a landowner or water purveyor claiming pollution or |
14 | diminution of a water supply from seeking any other remedy at |
15 | law or in equity. |
16 | § 3218.1. Notification to public drinking water systems. |
17 | Upon receiving notification of a spill, the department shall, |
18 | after investigating the incident, notify any public drinking |
19 | water facility that could be affected by the event that the |
20 | event occurred. The notification shall contain a brief |
21 | description of the event and any expected impact on water |
22 | quality. |
23 | § 3218.2. Containment for unconventional wells. |
24 | (a) Sites.--Unconventional well sites shall be designed and |
25 | constructed to prevent spills to the ground surface or spills |
26 | off the well site. Containment practices shall meet all of the |
27 | following: |
28 | (1) Be instituted on the well site during both drilling |
29 | and hydraulic fracturing operations. |
30 | (2) Be sufficiently impervious and able to contain |
|
1 | spilled material or waste until it can be removed or treated. |
2 | (3) Be compatible with the waste material or waste |
3 | stored or used within the containment. |
4 | (4) Additional practices as promulgated in regulation by |
5 | the Environmental Quality Board. |
6 | (b) Plan.--The applicant shall submit a plan to the |
7 | department describing the containment practices to be utilized |
8 | and the area of the well site where containment systems will be |
9 | employed. The plan shall include a description of the equipment |
10 | to be kept onsite during drilling and hydraulic fracturing |
11 | operations to prevent a spill from leaving the well site. |
12 | (c) Materials stored.--Containment systems shall be used |
13 | wherever any of the following are stored: |
14 | (1) Drilling mud. |
15 | (2) Hydraulic oil. |
16 | (3) Diesel fuel. |
17 | (4) Drilling mud additives. |
18 | (5) Hydraulic fracturing additives. |
19 | (6) Hydraulic fracturing flowback. |
20 | (d) Capacity.--Areas where any additives, chemicals, oils or |
21 | fuels are to be stored must have sufficient containment capacity |
22 | to hold the volume of the largest container stored in the area |
23 | plus 10% to allow for precipitation, unless the container is |
24 | equipped with individual secondary containment. |
25 | (e) Definition.--As used in this section, the term "well |
26 | site" means areas occupied by all equipment or facilities |
27 | necessary for or incidental to drilling, production or plugging |
28 | a well. |
29 | § 3218.3. Transportation records regarding wastewater fluids. |
30 | (a) Requirements.--A well operator of an unconventional well |
|
1 | that transports wastewater fluids shall do all of the following: |
2 | (1) Maintain records for five years, in accordance with |
3 | regulations under subsection (b) and on a form approved by |
4 | the department, of the amount and destination of the fluids |
5 | transported. |
6 | (2) Make the records under paragraph (1) available to |
7 | the department upon request. |
8 | (b) Recordkeeping.--Recordkeeping requirements shall be |
9 | determined by the department and shall include the following: |
10 | (1) The number of gallons of wastewater fluids produced |
11 | in the drilling, stimulation or alteration of a well. |
12 | (2) Upon completion of the well, the name of the person |
13 | of or company that transported the wastewater fluids to a |
14 | disposal site or to a location other than the well site. |
15 | (3) Each location where wastewater fluids were disposed |
16 | of or transported and the volumes that were disposed of at |
17 | the location other than the well site. |
18 | (4) The method of disposal. |
19 | § 3218.4. Corrosion control requirements. |
20 | (a) Pipelines.--All buried metallic pipelines shall be |
21 | installed and placed in operation in accordance with 49 CFR Pt. |
22 | 192 Subpt. I (relating to requirements for corrosion control). |
23 | (b) Tanks.--Permanent aboveground and underground tanks must |
24 | comply with the applicable corrosion control requirements in the |
25 | department's storage tank regulations. |
26 | (c) Other structures.--For all other buried metallic |
27 | structures, including well casings, the Environmental Quality |
28 | Board shall promulgate regulations setting forth methods of |
29 | determining the need for corrosion protection and installing |
30 | necessary corrosion protection. |
|
1 | (d) Procedures.--The corrosion control procedures under |
2 | subsections (a) and (b) must be carried out by or under the |
3 | direction of a person qualified in corrosion methods. |
4 | (e) Compliance.--An operator of a new, replaced, relocated |
5 | or otherwise changed pipeline must be in compliance with the |
6 | applicable requirements of this section by the date the pipeline |
7 | goes into service. |
8 | § 3218.5. Gathering lines. |
9 | (a) Requirement.--Owners and operators of gathering lines |
10 | shall comply with section 2(5)(i.1) of the act of December 10, |
11 | 1974 (P.L.852, No.287), referred to as the Underground Utility |
12 | Line Protection Law. |
13 | (b) Definition.--As used in this section, the term |
14 | "gathering line" means a pipeline used to transport natural gas |
15 | from a production facility to a transmission line. |
16 | § 3219. Use of safety devices. |
17 | Any person engaged in drilling an oil or gas well shall equip |
18 | it with casings of sufficient strength, and other safety devices |
19 | as are necessary, in the manner prescribed by regulation of the |
20 | department, and shall use every effort and endeavor effectively |
21 | to prevent blowouts, explosions and fires. |
22 | § 3219.1. Well control emergency response. |
23 | (a) Contracts.--The department may enter into contracts with |
24 | well control specialists in order to provide adequate emergency |
25 | response services in the event of a well control emergency. The |
26 | department shall make available upon request by a county |
27 | information relating to contracts with well control specialists. |
28 | (b) Civil immunity.--Except as set forth in subsection (c), |
29 | a well control specialist with which the department has entered |
30 | into a contract under subsection (a) shall be immune from civil |
|
1 | liability for actions taken in good faith to carry out its |
2 | contractual obligations. |
3 | (c) Nonapplicability.--Subsection (b) shall not apply to |
4 | damage arising from any of the following: |
5 | (1) Breach of the contract under subsection (a). |
6 | (2) An intentional tort. |
7 | (3) Gross negligence. |
8 | § 3220. Plugging requirements. |
9 | (a) General rule.--Upon abandoning a well, the owner or |
10 | operator shall plug it in the manner prescribed by regulation of |
11 | the department to stop vertical flow of fluids or gas within the |
12 | well bore, unless the department has granted inactive status for |
13 | the well or it has been approved by the department as an orphan |
14 | well. If the department determines that a prior owner or |
15 | operator received economic benefit, other than economic benefit |
16 | derived only as a landowner or from a royalty interest, after |
17 | April 18, 1979, from an orphan well or an unregistered well, the |
18 | owner or operator shall be responsible for plugging the well. In |
19 | the case of a gas well penetrating a workable coal seam which |
20 | was drilled prior to January 30, 1956, or which was permitted |
21 | after that date but not plugged in accordance with this chapter, |
22 | if the owner or operator or a coal operator or an agent proposes |
23 | to plug the well to allow mining through it, the gas well shall |
24 | be cleaned to a depth of at least 200 feet below the coal seam |
25 | through which mining is proposed and, unless impracticable, to a |
26 | point 200 feet below the deepest mineable coal seam. The gas |
27 | well shall be plugged from that depth in accordance with section |
28 | 13 of the act of December 18, 1984 (P.L.1069, No.214), known as |
29 | the Coal and Gas Resource Coordination Act, and the regulations |
30 | of the department. |
|
1 | (b) Areas underlain by coal.--Prior to the plugging and |
2 | abandonment of a well in an area underlain by a workable coal |
3 | seam, the well operator or owner shall notify the department and |
4 | the coal operator, lessee or owner and submit a plat, on a form |
5 | to be furnished by the department, showing the location of the |
6 | well and fixing the date and time plugging will commence, which |
7 | shall be not less than three working days, nor more than 30 |
8 | days, after the notice is received, to permit representatives of |
9 | the persons notified to be present at the plugging. Notice and |
10 | the right to be present may be waived by the department and the |
11 | coal operator, lessee or owner, but waiver by the coal operator, |
12 | lessee or owner shall be in writing and a copy shall be attached |
13 | to the notice of abandonment filed with the department under |
14 | this section. Whether or not representatives attend, if the well |
15 | operator has fully complied with this section, the well operator |
16 | may proceed, at the time fixed, to plug the well in the manner |
17 | prescribed by regulation of the department. When plugging has |
18 | been completed, a certificate shall be prepared and signed, on a |
19 | form to be furnished by the department, by two experienced and |
20 | qualified people who participated in the work setting forth the |
21 | time and manner in which the well was plugged. One copy of the |
22 | certificate shall be mailed to each coal operator, lessee or |
23 | owner to whom notice was given by certified mail and another |
24 | shall be mailed to the department. |
25 | (c) Abandoned wells.--Prior to abandonment of a well, except |
26 | an uncompleted bore hole plugged immediately upon suspension of |
27 | drilling in an area not underlain by a workable coal seam, the |
28 | well operator shall notify the department of the intention to |
29 | plug and abandon the well and submit a plat, on a form to be |
30 | furnished by the department, showing the location of the well |
|
1 | and fixing the date and time at which plugging will commence, |
2 | which shall be not less than three working days, nor more than |
3 | 30 days, after the notice is received, to permit a department |
4 | representative to be present at the plugging. The notice or |
5 | waiting period may be verbally waived by the department. In |
6 | noncoal areas where more than one well has been drilled as part |
7 | of the same development project and the wells are now to be |
8 | plugged, the department shall be given three working days' |
9 | notice prior to plugging the first well of the project, subject |
10 | to waiver of notice described in subsection (b). In the plugging |
11 | of subsequent wells, no additional notice shall be required if |
12 | plugging on the project is continuous. If plugging of subsequent |
13 | wells is delayed for any reason, notice shall be given to the |
14 | department of continuation of the project. Whether or not a |
15 | representative attends, if the well operator has fully complied |
16 | with this section, the well operator may proceed, at the time |
17 | fixed, to plug the well in the manner prescribed by regulation |
18 | of the department. When plugging has been completed, a |
19 | certificate shall be prepared, on a form to be furnished by the |
20 | department, by two experienced and qualified people who |
21 | participated in the work setting forth the time and manner in |
22 | which the well was plugged. A copy of the certificate shall be |
23 | mailed to the department. |
24 | (d) Wells abandoned upon completion of drilling.--If a well |
25 | is to be abandoned immediately after completion of drilling, the |
26 | well operator shall give at least 24 hours' notice by telephone, |
27 | confirmed by certified mail, to the department and to the coal |
28 | operator, lessee or owner, if any, fixing the date and time when |
29 | plugging will commence. Notice and the right to be present may |
30 | be waived by the department and the coal operator, lessee or |
|
1 | owner, if any. Whether or not representatives of the department |
2 | or coal operator, lessee or owner, if any, attend, if the well |
3 | operator has fully complied with the requirements of this |
4 | section, the well operator may proceed, at the time fixed, to |
5 | plug the well in the manner provided by regulation of the |
6 | department. The well operator shall prepare the certificate of |
7 | plugging and mail copies of the same as provided in subsection |
8 | (b). |
9 | (e) Orphan wells.--If a well is an orphan well or abandoned |
10 | without plugging, or if a well is in operation but not |
11 | registered under section 3213 (relating to well registration and |
12 | identification), the department may enter upon the well site and |
13 | plug the well and to sell equipment, casing and pipe at the site |
14 | which may have been used in production of the well in order to |
15 | recover the costs of plugging. The department shall make an |
16 | effort to determine ownership of a well which is in operation |
17 | but has not been registered and provide written notice to the |
18 | owner of pending action under this subsection. If the department |
19 | cannot determine ownership within 30 days, it may proceed under |
20 | this subsection. Costs of plugging shall have priority over all |
21 | liens on equipment, casing and pipe, and the sale shall be free |
22 | and clear of those liens to the extent that the cost of plugging |
23 | exceeds the sale price. If the amount obtained for casing and |
24 | pipe salvaged at the site is inadequate to pay for plugging, the |
25 | owner or operator of the abandoned or unregistered well shall be |
26 | liable for the additional costs. |
27 | (f) Definition.--For purposes of this section, the term |
28 | "owner" does not include the owner or possessor of surface real |
29 | property, on which an abandoned well is located, who did not |
30 | participate or incur costs in and had no right of control over |
|
1 | the drilling or extraction operation of the abandoned well. |
2 | § 3221. Alternative methods. |
3 | A well operator may request permission to use a method or |
4 | material other than those required by this chapter and |
5 | applicable regulations for casing, plugging or equipping a well |
6 | in an application to the department which describes the proposed |
7 | alternative in reasonable detail and indicates the manner in |
8 | which it will accomplish the goals of this chapter. Notice of |
9 | filing of the application shall be given by the well operator by |
10 | certified mail to any affected coal operators, who may, within |
11 | 15 days after the notice, file objections to the proposed |
12 | alternative method or material. If no timely objections are |
13 | filed or raised by the department, the department shall |
14 | determine whether to allow use of the proposed alternative |
15 | method or material. |
16 | § 3222. Well reporting requirements. |
17 | (a) General rule.--Except as provided in subsection (a.1), |
18 | each well operator shall file with the department, on a form |
19 | provided by the department, an annual report specifying the |
20 | amount of production, on the most well-specific basis available, |
21 | along with the status of each well, except that in subsequent |
22 | years only changes in status must be reported. The Commonwealth |
23 | may utilize reported information in enforcement proceedings, in |
24 | making designations or determinations under section 1927-A of |
25 | the act of April 9, 1929 (P.L.177, No.175), known as The |
26 | Administrative Code of 1929, or in aggregate form for |
27 | statistical purposes. |
28 | (a.1) Unconventional wells.--Each operator of an |
29 | unconventional well shall file with the department, on a form |
30 | provided by the department, a semiannual report specifying the |
|
1 | amount of production on the most well-specific basis available. |
2 | The initial report under this subsection shall be filed by |
3 | August 15 and shall include production data from the preceding |
4 | calendar year and specify the status of each well. In subsequent |
5 | reports, only changes in status must be reported. Subsequent |
6 | semiannual reports shall be filed with the department on or |
7 | before February 15 and August 15 of each year and shall include |
8 | production data from the preceding reporting period. The |
9 | Commonwealth may utilize reported information in enforcement |
10 | proceedings, in making designations or determinations under |
11 | section 1927-A of The Administrative Code of 1929 or in |
12 | aggregate form for statistical purposes. Beginning November 1, |
13 | 2010, the department shall make the reports available on its |
14 | publicly accessible Internet website. Costs incurred by the |
15 | department to comply with the requirements of this subsection |
16 | shall be paid out of the fees collected under section 3211(d) |
17 | (relating to well permits). |
18 | (b) Collection of data.-- |
19 | (1) Well operators shall maintain a record of each well |
20 | drilled or altered. |
21 | (2) A record containing the information required by the |
22 | department shall be filed within 30 days after drilling of a |
23 | well. |
24 | (3) Within 30 days after completion of the well, when |
25 | the well is capable of production, a completion report |
26 | containing any additional required information shall be filed |
27 | and shall be maintained by the department. |
28 | (4) Upon request of the department, the well operator |
29 | shall, within 90 days of completion or recompletion of |
30 | drilling, submit a copy of any electrical, radioactive or |
|
1 | other standard industry logs which have been run. |
2 | (5) Upon request by the department within one year, the |
3 | well operator shall file a copy of drill stem test charts, |
4 | formation water analysis, porosity, permeability or fluid |
5 | saturation measurements, core analysis and lithologic log or |
6 | sample description or other similar data as compiled. No |
7 | information shall be required unless the well operator had it |
8 | compiled in the ordinary course of business, and |
9 | interpretation of data under this paragraph is not required |
10 | to be filed. |
11 | (b.1) Report contents.-- |
12 | (1) The completion report shall contain the operator's |
13 | stimulation record. The stimulation record shall include all |
14 | of the following: |
15 | (i) A descriptive list of the chemical additives in |
16 | the stimulation fluids, including any acid, biocide, |
17 | breaker, brine, corrosion inhibitor, crosslinker, |
18 | demulsifier, friction reducer, gel, iron control, oxygen |
19 | scavenger, Ph adjusting agent, proppant, scale inhibitor |
20 | and surfactant. |
21 | (ii) The trade name, vendor and a brief descriptor |
22 | of the intended use or function of each chemical additive |
23 | in the stimulation fluid. |
24 | (iii) A list of the chemicals intentionally added to |
25 | the stimulation fluid, by name and chemical abstract |
26 | service number. |
27 | (iv) The maximum concentration, in percent by mass, |
28 | of each chemical intentionally added to the stimulation |
29 | fluid. |
30 | (v) The total volume of the base fluid. |
|
1 | (vi) A list of water sources used under the approved |
2 | water management plan and the volume of water used. |
3 | (vii) The pump rates and pressure used in the well. |
4 | (viii) The total volume of recycled water used. |
5 | (2) The well record shall identify all of the following: |
6 | (i) Whether methane was encountered in other than a |
7 | target formation. |
8 | (ii) The country of origin and manufacture of |
9 | tubular steel products used in the construction of the |
10 | well. |
11 | (b.2) Trade secret or confidential proprietary |
12 | information.--When an operator submits its stimulation record |
13 | under subsection (b.1), the operator may designate specific |
14 | portions of the stimulation record as containing a trade secret |
15 | or confidential proprietary information. The department shall |
16 | prevent disclosure of a designated trade secret or confidential |
17 | proprietary information to the extent permitted by the act of |
18 | February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law |
19 | or other applicable State law. |
20 | (c) Drill cuttings and core samples.--Upon notification by |
21 | the department prior to commencement of drilling, the well |
22 | operator shall collect any additional data specified by the |
23 | department, including representative drill cuttings and samples |
24 | from cores taken and any other geological information that the |
25 | operator reasonably can compile. Interpretation of the data is |
26 | not required to be filed. |
27 | (d) Retention and filing.--Data required under subsection |
28 | (b)(5) and drill cuttings required under subsection (c) shall be |
29 | retained by the well operator and filed with the department no |
30 | more than three years after completion of the well. Upon |
|
1 | request, the department shall extend the deadline up to five |
2 | years from the date of completion of the well. The department |
3 | shall be entitled to utilize information collected under this |
4 | subsection in enforcement proceedings, in making designations or |
5 | determinations under section 1927-A of The Administrative Code |
6 | of 1929 and in aggregate form for statistical purposes. |
7 | § 3222.1. Hydraulic fracturing chemical disclosure |
8 | requirements. |
9 | (a) Applicability.--This section applies to hydraulic |
10 | fracturing of unconventional wells performed on or after the |
11 | effective date of this section. |
12 | (b) Required disclosures.-- |
13 | (1) Except as provided under subsection (d), a service |
14 | provider who performs any part of a hydraulic fracturing |
15 | treatment and a vendor who provides hydraulic fracturing |
16 | additives directly to the operator for a hydraulic fracturing |
17 | treatment shall furnish the operator with the information |
18 | required under paragraph (2) not later than 60 days after the |
19 | commencement of the hydraulic fracturing. |
20 | (2) Within 60 days following the conclusion of hydraulic |
21 | fracturing, the operator of the well shall complete the |
22 | chemical disclosure registry form and post the form on the |
23 | chemical disclosure registry in accordance with regulations |
24 | promulgated under this chapter in a format that does not link |
25 | chemicals to their respective hydraulic fracturing additive. |
26 | (3) If the vendor, service provider or operator claims |
27 | that the specific identity of a chemical or the concentration |
28 | of a chemical, or both, are a trade secret or confidential |
29 | proprietary information, the operator of the well must |
30 | indicate that on the chemical disclosure registry form, and |
|
1 | the vendor, service provider or operator shall submit a |
2 | signed written statement that the record contains a trade |
3 | secret or confidential proprietary information. If a chemical |
4 | is a trade secret, the operator shall include in the chemical |
5 | registry disclosure form the chemical family or similar |
6 | description associated with the chemical. |
7 | (4) At the time of claiming that any of the following |
8 | are entitled to protection under paragraph (3), a vendor, |
9 | service provider or operator shall file a signed written |
10 | statement that the record contains a trade secret or |
11 | confidential proprietary information: |
12 | (i) A hydraulic fracturing additive. |
13 | (ii) A chemical. |
14 | (iii) A concentration. |
15 | (iv) Any combination of subparagraphs (i), (ii) and |
16 | (iii). |
17 | (5) Unless the information is entitled to protection as |
18 | a trade secret or confidential proprietary information, |
19 | information submitted to the department or posted to the |
20 | chemical disclosure registry shall be a public record. |
21 | (6) By January 1, 2013, the department shall determine |
22 | whether the chemical disclosure registry allows the |
23 | department and the public to search and sort Pennsylvania |
24 | chemical disclosure information by geographic area, chemical |
25 | ingredient, chemical abstract service number, time period and |
26 | operator. If the department determines that there is no |
27 | reasonable assurance that the registry will allow for |
28 | searches by geographic area, chemical ingredient, chemical |
29 | abstract service number, time period and operator, at a date |
30 | acceptable to the department, the department shall |
|
1 | investigate the feasibility of making the information under |
2 | paragraph (2) available on the department's Internet website |
3 | in a manner that will allow the department and the public to |
4 | search and sort the information by geographic area, chemical |
5 | ingredient, chemical abstract service number, time period and |
6 | operator, and shall report to the General Assembly whether |
7 | additional resources may be needed to implement the searches |
8 | and sorting. |
9 | (7) A vendor shall not be responsible for any inaccuracy |
10 | in information that is provided to the vendor by a third- |
11 | party manufacturer. |
12 | (8) A service provider shall not be responsible for any |
13 | inaccuracy in information that is provided to the service |
14 | provider by the vendor. |
15 | (9) An operator shall not be responsible for any |
16 | inaccuracy in information provided to the operator by the |
17 | vendor or service provider or manufacturer. |
18 | (10) A vendor, service company or operator shall |
19 | identify the specific identity and amount of any chemicals |
20 | claimed to be a trade secret or confidential proprietary |
21 | information to any health professional who requests the |
22 | information in writing if the health professional executes a |
23 | confidentiality agreement and provides a written statement of |
24 | need for the information indicating all of the following: |
25 | (i) The information is needed for the purpose of |
26 | diagnosis or treatment of an individual. |
27 | (ii) The individual being diagnosed or treated may |
28 | have been exposed to a hazardous chemical. |
29 | (iii) Knowledge of information will assist in the |
30 | diagnosis or treatment of an individual. |
|
1 | (11) If a health professional determines that a medical |
2 | emergency exists and the specific identity and amount of any |
3 | chemicals claimed to be a trade secret or confidential |
4 | proprietary information are necessary for emergency |
5 | treatment, the vendor, service provider or operator shall |
6 | immediately disclose the information to the health |
7 | professional upon a verbal acknowledgment by the health |
8 | professional that the information may not be used for |
9 | purposes other than the health needs asserted and that the |
10 | health professional shall maintain the information as |
11 | confidential. The vendor, service provider or operator may |
12 | request, and the health professional shall provide upon |
13 | request, a written statement of need and a confidentiality |
14 | agreement from the health professional as soon as |
15 | circumstances permit, in conformance with regulations |
16 | promulgated under this chapter. |
17 | (c) Disclosures not required.--Notwithstanding any other |
18 | provision of this chapter, a vendor, service provider or |
19 | operator shall not be required to do any of the following: |
20 | (1) Disclose chemicals that are not disclosed to it by |
21 | the manufacturer, vendor or service provider. |
22 | (2) Disclose chemicals that were not intentionally added |
23 | to the stimulation fluid. |
24 | (3) Disclose chemicals that occur incidentally or are |
25 | otherwise unintentionally present in trace amounts, may be |
26 | the incidental result of a chemical reaction or chemical |
27 | process or may be constituents of naturally occurring |
28 | materials that become part of a stimulation fluid. |
29 | (d) Trade secrets and confidential proprietary |
30 | information.-- |
|
1 | (1) Notwithstanding any other provision of this chapter, |
2 | a vendor, service company or operator shall not be required |
3 | to disclose trade secrets or confidential proprietary |
4 | information to the chemical disclosure registry. |
5 | (2) The following shall apply: |
6 | (i) If the specific identity of a chemical, the |
7 | concentration of a chemical or both the specific identity |
8 | and concentration of a chemical are claimed to be a trade |
9 | secret or confidential proprietary information, the |
10 | vendor, service provider or operator may withhold the |
11 | specific identity, the concentration, or both the |
12 | specific identity and concentration, of the chemical from |
13 | the information provided to the chemical disclosure |
14 | registry. |
15 | (ii) Nothing under this paragraph shall prohibit any |
16 | of the following from obtaining from a vendor, service |
17 | provider or operator information that may be needed to |
18 | respond to a spill or release: |
19 | (A) The department. |
20 | (B) A public health official. |
21 | (C) An emergency manager. |
22 | (D) A responder to a spill, release or a |
23 | complaint from a person who may have been directly |
24 | and adversely affected or aggrieved by the spill or |
25 | release. |
26 | (iii) Upon receipt of a written statement of need |
27 | for the information under subparagraph (ii), the |
28 | information shall be disclosed by the vendor, service |
29 | provider or operator to the requesting official or entity |
30 | authorized under subparagraph (ii) and shall not be a |
|
1 | public record. |
2 | (e) Disclosure prevented.--The department shall prevent |
3 | disclosure of trade secrets or confidential proprietary |
4 | information under this section pursuant to the requirements of |
5 | the Right-to-Know Law or other applicable State law. |
6 | (f) Well reporting.--Notwithstanding any other provision of |
7 | law, nothing in this section shall be construed to reduce or |
8 | modify the disclosure requirements for conventional well |
9 | operators contained in 25 Pa. Code Ch. 78 Subch. E (relating to |
10 | well reporting). |
11 | § 3223. Notification and effect of well transfer. |
12 | The owner or operator of a well shall notify the department |
13 | in writing within 30 days, in a form directed by regulation, of |
14 | sale, assignment, transfer, conveyance or exchange by or to the |
15 | owner of the well. A transfer shall not relieve the well owner |
16 | or operator of an obligation accrued under this chapter, nor |
17 | shall it relieve the owner or operator of an obligation to plug |
18 | the well until the requirements of section 3225 (relating to |
19 | bonding) have been met, at which time the transferring owner or |
20 | operator shall be relieved from all obligations under this |
21 | chapter, including the obligation to plug the well. |
22 | § 3224. Coal operator responsibilities. |
23 | (a) General rule.--At any time prior to removing coal or |
24 | other underground materials from, or extending the workings in, |
25 | a coal mine within 500 feet of an oil or gas well of which the |
26 | coal operator has knowledge, or within 500 feet of an approved |
27 | well location of which the coal operator has knowledge, the coal |
28 | operator, by certified mail, shall forward to or file with the |
29 | well operator and the department a copy of the relevant part of |
30 | all maps and plans which it is presently required by law to |
|
1 | prepare and file with the department, showing the pillar which |
2 | the coal operator proposes to leave in place around each oil or |
3 | gas well in the projected workings. Thereafter, the coal |
4 | operator may proceed with mining operations in the manner |
5 | projected on the maps and plans, but the operator may not remove |
6 | coal or cut a passageway within 150 feet of the well or approved |
7 | well location without written approval under this section. If, |
8 | in the opinion of the well operator or the department, the plan |
9 | indicates that the proposed pillar is inadequate to protect |
10 | either the integrity of the well or public health and safety, |
11 | the affected well operator shall attempt to reach an agreement |
12 | with the coal operator on a suitable pillar, subject to approval |
13 | of the department. Upon failure to agree, the well operator may, |
14 | within ten days after receipt of the proposed plan under this |
15 | section, file objections under section 3251 (relating to |
16 | conferences), indicating the size of the pillar to be left as to |
17 | each well. If objections are not timely filed and the department |
18 | has none, the department shall grant approval, reciting that |
19 | maps and plans have been filed, no objections have been made |
20 | thereto and the pillar proposed to be left for each well is |
21 | approved in the manner as projected. |
22 | (b) Objections.--If an objection is filed by the well |
23 | operator or raised by the department, the department shall order |
24 | that a conference be held under section 3251 within ten days of |
25 | the filing of objections. At the conference, the coal operator |
26 | and the person who has objected shall attempt to agree on a |
27 | proposed plan, showing the pillar to be left around each well, |
28 | which will satisfy the objections and receive department |
29 | approval. If an agreement is reached, the department shall grant |
30 | approval to the coal operator, reciting that a plan has been |
|
1 | filed and the pillar to be left for each well is approved |
2 | pursuant to the agreement. If an agreement is not reached on a |
3 | plan showing the pillar to be left with respect to a well, the |
4 | department, by appropriate order, shall determine the pillar to |
5 | be left with respect to the well. In a proceeding under this |
6 | section, the department shall follow as nearly as is possible |
7 | the original plan filed by the coal operator. The department |
8 | shall not require the coal operator to leave a pillar in excess |
9 | of 100 feet in radius, except that the department may require a |
10 | pillar of up to 150 feet in radius if the existence of unusual |
11 | conditions is established. Pillars determined by the department |
12 | shall be shown on maps or plans on file with the department as |
13 | provided in subsection (a), and the department shall approve the |
14 | pillar to be left for each well. |
15 | (c) Pillars of reduced size.--Application may be made at any |
16 | time to the department by the coal operator to leave a pillar of |
17 | a size smaller than shown on the plan approved or determined by |
18 | the department under this section. If an application is filed, |
19 | the department shall: |
20 | (1) follow the appropriate procedure under subsection |
21 | (a) or (b); |
22 | (2) by appropriate order, determine a plan involving a |
23 | pillar of a smaller size as to any well covered by the |
24 | application; and |
25 | (3) have the discretion to grant approval for the pillar |
26 | to be left with respect to each well. |
27 | (d) Violation.--No coal operator, without written approval |
28 | of the department after notice and opportunity for a hearing |
29 | under this section, shall remove coal or cut a passageway so as |
30 | to leave a pillar of smaller size, with respect to an oil or gas |
|
1 | well, than that approved by the department under this chapter. |
2 | (e) Limitation.--With regard to a coal pillar required by |
3 | law to be left around a well drilled prior to April 18, 1985, |
4 | nothing in this chapter shall be construed to: |
5 | (1) require a well operator to pay for the coal pillar; |
6 | (2) affect a right which a coal operator may have had |
7 | prior to April 18, 1985, to obtain payment for the coal |
8 | pillar; or |
9 | (3) affect a duty or right which a storage operator or |
10 | landowner may have had prior to April 18, 1985, to pay or not |
11 | pay for the coal pillar. |
12 | (f) Mining through plugged wells.--A coal operator who |
13 | intends to mine through a plugged oil or gas well or otherwise |
14 | completely remove any pillar from around that well shall file a |
15 | plan under subsection (a) which shall be subject to all of the |
16 | provisions of this section. No coal operator may mine through a |
17 | plugged oil or gas well of which he has knowledge until written |
18 | approval has been granted by the department in accordance with |
19 | this section. The Bureau of Deep Mine Safety in the department |
20 | shall have the authority to establish conditions under which the |
21 | department may approve a coal operator's plan to mine through a |
22 | plugged oil or gas well. |
23 | § 3225. Bonding. |
24 | (a) General rule.--The following shall apply: |
25 | (1) Except as provided in subsection (d), upon filing an |
26 | application for a well permit, and before continuing to |
27 | operate an oil or gas well, the owner or operator of the well |
28 | shall file with the department a bond covering the well and |
29 | well site on a form to be prescribed and furnished by the |
30 | department. A bond filed with an application for a well |
|
1 | permit shall be payable to the Commonwealth and conditioned |
2 | upon the operator's faithful performance of all drilling, |
3 | water supply replacement, restoration and plugging |
4 | requirements of this chapter. A bond for a well in existence |
5 | on April 18, 1985, shall be payable to the Commonwealth and |
6 | conditioned upon the operator's faithful performance of all |
7 | water supply replacement, restoration and plugging |
8 | requirements of this chapter. The amount of the bond required |
9 | shall be in the following amounts and may be adjusted by the |
10 | Environmental Quality Board every two years to reflect the |
11 | projected costs to the Commonwealth of plugging the well: |
12 | (i) For wells with a total well bore length less |
13 | than 6,000 feet: |
14 | (A) For operating up to 50 wells, $4,000 per |
15 | well; but no bond may be required under this clause |
16 | in excess of $35,000. |
17 | (B) For operating 51 to 150 wells, $35,000 plus |
18 | $4,000 per well for each well in excess of 50 wells; |
19 | but no bond may be required under this clause in |
20 | excess of $60,000. |
21 | (C) For operating 151 to 250 wells, $60,000 plus |
22 | $4,000 per well for each well in excess of 150 wells; |
23 | but no bond may be required under this clause in |
24 | excess of $100,000. |
25 | (D) For operating more than 250 wells, $100,000 |
26 | plus $4,000 per well for each well in excess of 250 |
27 | wells; but no bond may be required under this clause |
28 | in excess of $250,000. |
29 | (ii) For wells with a total well bore length of at |
30 | least 6,000 feet: |
|
1 | (A) For operating up to 25 wells, $10,000 per |
2 | well; but no bond may be required under this clause |
3 | in excess of $140,000. |
4 | (B) For operating 26 to 50 wells, $140,000 plus |
5 | $10,000 per well for each well in excess of 25 wells; |
6 | but no bond may be required under this clause in |
7 | excess of $290,000. |
8 | (C) For operating 51 to 150 wells, $290,000 plus |
9 | $10,000 per well for each well in excess of 50 wells; |
10 | but no bond may be required under this clause in |
11 | excess of $430,000. |
12 | (D) For operating more than 150 wells, $430,000 |
13 | plus $10,000 per well for each well in excess of 150 |
14 | wells; but no bond may be required under this clause |
15 | in excess of $600,000. |
16 | (2) In lieu of individual bonds for each well, an owner |
17 | or operator may file a blanket bond for the applicable amount |
18 | under paragraph (1), on a form prepared by the department, |
19 | covering all of its wells in this Commonwealth, as enumerated |
20 | on the bond form. |
21 | (3) Liability under the bond shall continue until the |
22 | well has been properly plugged in accordance with this |
23 | chapter and for a period of one year after filing of the |
24 | certificate of plugging with the department. Each bond shall |
25 | be executed by the operator and a corporate surety licensed |
26 | to do business in this Commonwealth and approved by the |
27 | secretary. In lieu of a corporate surety, the operator may |
28 | deposit with the department: |
29 | (i) cash; |
30 | (ii) certificates of deposit or automatically |
|
1 | renewable irrevocable letters of credit, from financial |
2 | institutions chartered or authorized to do business in |
3 | this Commonwealth and regulated and examined by the |
4 | Commonwealth or a Federal agency, which may be terminated |
5 | at the end of a term only upon 90 days' prior written |
6 | notice by the financial institution to the permittee and |
7 | the department; |
8 | (iii) negotiable bonds of the United States |
9 | Government or the Commonwealth, the Pennsylvania Turnpike |
10 | Commission, the General State Authority, the State Public |
11 | School Building Authority or any municipality within the |
12 | Commonwealth; or |
13 | (iv) United States Treasury Bonds issued at a |
14 | discount without a regular schedule of interest payments |
15 | to maturity, otherwise known as Zero Coupon Bonds, having |
16 | a maturity date of not more than ten years after the date |
17 | of purchase and at the maturity date having a value of |
18 | not less than the applicable amount under paragraph (1). |
19 | The cash deposit, certificate of deposit, amount of the |
20 | irrevocable letter of credit or market value of the |
21 | securities shall be equal at least to the sum of the |
22 | bond. |
23 | (4) The secretary shall, upon receipt of a deposit of |
24 | cash, letters of credit or negotiable bonds, immediately |
25 | place the same with the State Treasurer, whose duty it shall |
26 | be to receive and hold the same in the name of the |
27 | Commonwealth, in trust, for the purpose for which the deposit |
28 | is made. |
29 | (5) The State Treasurer shall at all times be |
30 | responsible for custody and safekeeping of deposits. The |
|
1 | operator making the deposit shall be entitled from time to |
2 | time to demand and receive from the State Treasurer, on the |
3 | written order of the secretary, the whole or any portion of |
4 | collateral deposited, upon depositing with the State |
5 | Treasurer, in lieu of that collateral, other collateral of |
6 | classes specified in this section having a market value at |
7 | least equal to the sum of the bond, and also to demand, |
8 | receive and recover the interest and income from the |
9 | negotiable bonds as they become due and payable. |
10 | (6) If negotiable bonds on deposit under this subsection |
11 | mature or are called, the State Treasurer, at the request of |
12 | the owner of the bonds, shall convert them into other |
13 | negotiable bonds, of classes specified in this section, |
14 | designated by the owner. |
15 | (7) If notice of intent to terminate a letter of credit |
16 | is given, the department shall give the operator 30 days' |
17 | written notice to replace the letter of credit with other |
18 | acceptable bond guarantees as provided in this section. If |
19 | the owner or operator fails to timely replace the letter of |
20 | credit, the department shall draw upon and convert the letter |
21 | of credit into cash and hold it as a collateral bond |
22 | guarantee. |
23 | (b) Release.--No bond shall be fully released until the |
24 | requirements of subsection (a) and section 3223 (relating to |
25 | notification and effect of well transfer) have been fully met. |
26 | Upon release of bonds and collateral under this section, the |
27 | State Treasurer shall immediately return to the owner the |
28 | specified amount of cash or securities. |
29 | (c) Noncompliance.--If a well owner or operator fails or |
30 | refuses to comply with subsection (a), regulations promulgated |
|
1 | under this chapter or conditions of a permit relating to this |
2 | chapter, the department may declare the bond forfeited and shall |
3 | certify the same to the Attorney General, who shall proceed to |
4 | enforce and collect the full amount of the bond and, if the well |
5 | owner or operator has deposited cash or securities as collateral |
6 | in lieu of a corporate surety, the department shall declare the |
7 | collateral forfeited and direct the State Treasurer to pay the |
8 | full amount of the funds into the Well Plugging Restricted |
9 | Revenue Account or to sell the security to the extent forfeited |
10 | and pay the proceeds into the Well Plugging Restricted Revenue |
11 | Account. If a corporate surety or financial institution fails to |
12 | pay a forfeited bond promptly and in full, the corporate surety |
13 | or financial institution shall be disqualified from writing |
14 | further bonds under this chapter or any other environmental law |
15 | administered by the department. A person aggrieved by reason of |
16 | forfeiting the bond or converting collateral, as provided in |
17 | this section, shall have a right to appeal to the Environmental |
18 | Hearing Board in the manner provided by law. Upon forfeiture of |
19 | a blanket bond for a violation occurring at one or more well |
20 | sites, the person whose bond is forfeited shall, within ten days |
21 | of the forfeiture, submit a replacement bond to cover all other |
22 | wells of which the person is an owner or operator. Failure to |
23 | submit the replacement bond constitutes a violation of this |
24 | section as to each of the wells owned or operated by the person. |
25 | (d) Alternatives to certain bonds.--The following shall |
26 | apply: |
27 | (1) An operator of not more than 200 wells who cannot |
28 | obtain a bond for a well drilled prior to April 18, 1985, as |
29 | required under subsection (a), due to inability to |
30 | demonstrate sufficient financial resources may, in lieu of |
|
1 | the bond: |
2 | (i) Submit to the department a fee in the amount of |
3 | $50 per well, a blanket fee of $500 for ten to 20 wells |
4 | or a blanket fee of $1,000 for more than 20 wells, which |
5 | shall be a nonrefundable fee paid each year that the |
6 | operator has not filed a bond with the department. All |
7 | fees collected in lieu of a bond under this subsection |
8 | shall be used for the purposes authorized by this |
9 | chapter. The Environmental Quality Board shall have the |
10 | power, by regulation, to increase the amount of the fees |
11 | established under this subsection. |
12 | (ii) Make phased deposits of collateral to fully |
13 | collateralize the bond, subject to the following: |
14 | (A) Payment shall be based on the number of |
15 | wells owned or operated. The operator shall make an |
16 | initial deposit and make annual deposits in |
17 | accordance with the schedule in clause (B). Interest |
18 | accumulated by the collateral shall become a part of |
19 | the bond until the collateral plus accumulated |
20 | interest equals the amount of the required bond. The |
21 | collateral shall be deposited, in trust, with the |
22 | State Treasurer as provided in this subsection or |
23 | with a bank selected by the department which shall |
24 | act as trustee for the benefit of the Commonwealth to |
25 | guarantee the operator's compliance with the |
26 | drilling, water supply replacement, restoration and |
27 | plugging requirements of this chapter. The operator |
28 | shall be required to pay all costs of the trust. |
29 | (B) An operator of up to ten existing wells who |
30 | does not intend to operate additional wells shall |
|
1 | deposit $250 per well and shall, thereafter, annually |
2 | deposit $50 per well until the obligations of this |
3 | section are fully met. An operator of 11 to 25 wells |
4 | or an operator of up to ten wells who applies for one |
5 | or more permits for additional wells shall deposit |
6 | $2,000 and shall, thereafter, annually deposit $1,150 |
7 | plus $150 for each additional well to be permitted |
8 | that year until the obligations of this section are |
9 | fully met. An operator of 26 to 50 wells shall |
10 | deposit $3,000 and shall, thereafter, annually |
11 | deposit $1,300 plus $400 for each additional well to |
12 | be permitted that year until the obligations of this |
13 | section are fully met. An operator of 51 to 100 wells |
14 | shall deposit $4,000 and shall, thereafter, annually |
15 | deposit $1,500 plus $400 for each additional well to |
16 | be permitted that year until the obligations of this |
17 | section are fully met. Operators of 101 to 200 wells |
18 | shall deposit $8,000 and shall, thereafter, annually |
19 | deposit $1,600 plus $1,000 for each additional well |
20 | to be permitted that year until the obligations of |
21 | this section are fully met. Operators of more than |
22 | 200 wells shall fully bond their wells immediately. |
23 | (C) The department shall reduce the amount of |
24 | phased collateral payments or the period of time over |
25 | which phased collateral payments shall be made on |
26 | behalf of owners or operators who, prior to August 1, |
27 | 1992, have paid a fee in lieu of bond under |
28 | subparagraph (i), and who, by August 1, 1993, choose |
29 | to enter the phased collateral program under this |
30 | subparagraph rather than continue to make payments in |
|
1 | lieu of bond. Payments made prior to August 1, 1992, |
2 | in lieu of bond shall not be credited in any other |
3 | manner, and the department shall not be required to |
4 | refund the fees. The Environmental Quality Board, by |
5 | regulation, may change the annual deposits |
6 | established under clause (B) if necessary to |
7 | accommodate a change in the amount of the bond |
8 | required under this section. |
9 | (2) An operator may continue to pay a fee in lieu of |
10 | bond or make phased deposits of collateral to fully |
11 | collateralize the bond so long as the operator does not miss |
12 | a payment under this subsection and remains in compliance |
13 | with this chapter. If an operator misses a payment under this |
14 | subsection, the operator shall: |
15 | (i) immediately submit the appropriate bond amount |
16 | in full; or |
17 | (ii) cease all operations and plug all wells. |
18 | (d.1) Individuals.--The following shall apply: |
19 | (1) An individual who is unable to obtain a bond to |
20 | drill new wells due to inability to demonstrate financial |
21 | resources may meet the collateral bond requirements of |
22 | subsection (a) by making phased deposits of collateral to |
23 | fully collateralize the bond. The individual shall be limited |
24 | to drilling ten new wells per calendar year and, for each |
25 | well to be drilled, deposit $500 and make an annual deposit |
26 | of 10% of the remaining bond amount for a period of ten |
27 | years. Interest accumulated shall become a part of the bond |
28 | until the collateral plus accumulated interest equals the |
29 | amount of the required bond. The collateral shall be |
30 | deposited in trust with the State Treasurer under subsection |
|
1 | (a) or with a bank selected by the department which shall act |
2 | as trustee for the benefit of the Commonwealth to guarantee |
3 | the individual's compliance with the drilling, water supply |
4 | replacement, restoration and plugging requirements of this |
5 | chapter. The individual shall pay all costs of the trust. |
6 | (2) Individuals may continue to use phased collateral to |
7 | obtain permits if they have not missed a payment for a well |
8 | drilled under this provision and remain in compliance with |
9 | this chapter. If an individual misses a payment, the |
10 | individual shall: |
11 | (i) immediately submit the appropriate bond amount |
12 | in full; or |
13 | (ii) cease all operations and plug all wells. |
14 | (3) For purposes of this subsection, an "individual" |
15 | means a natural person doing business under his own name. |
16 | (e) Reservation of remedies.--All remedies for violations of |
17 | this chapter, regulations adopted under this chapter and |
18 | conditions of permits are expressly preserved. Nothing in this |
19 | section shall be construed as an exclusive penalty or remedy for |
20 | violations of law. No action taken under this section shall |
21 | waive or impair any other remedy or penalty provided in law. |
22 | (f) Change of law.--Owners or operators who have failed to |
23 | meet the requirements of this section prior to August 1, 1992, |
24 | shall not be required to make payments under this section on a |
25 | retroactive basis as a condition of obtaining a permit under |
26 | this chapter, nor shall the failure be deemed a violation of |
27 | this chapter. |
28 | (g) Definition.--As used in this section, the term "well |
29 | site" means areas occupied by all equipment or facilities |
30 | necessary for or incidental to drilling, production or plugging |
|
1 | a well. |
2 | § 3226. Oil and Gas Technical Advisory Board. |
3 | (a) Creation of board.--The Oil and Gas Technical Advisory |
4 | Board is created, consisting of the following members, all of |
5 | whom shall be chosen by the Governor and shall be residents of |
6 | this Commonwealth: |
7 | (1) Three individuals, each of whom shall be: |
8 | (i) a petroleum engineer; |
9 | (ii) a petroleum geologist; or |
10 | (iii) an experienced driller representative of the |
11 | oil and gas industry with three years of experience in |
12 | this Commonwealth. |
13 | (2) One mining engineer from the coal industry with |
14 | three years of experience in this Commonwealth. |
15 | (3) One geologist or petroleum engineer with three years |
16 | of experience in this Commonwealth, who shall be chosen from |
17 | a list of three names submitted by the Citizens Advisory |
18 | Council to the Governor and who shall sit as a representative |
19 | of the public interest. |
20 | (b) Reimbursement.--Board members shall not receive a salary |
21 | but shall be reimbursed for all necessary expenses incurred in |
22 | the performance of their duties. |
23 | (c) Majority vote.--All actions of the board shall be by |
24 | majority vote. The board shall meet as called by the secretary, |
25 | but not less than semiannually, to carry out its duties under |
26 | this chapter. The board shall select a chairman and other |
27 | officers deemed appropriate. |
28 | (d) Consultation.--The department shall consult with the |
29 | board in the formulation, drafting and presentation stages of |
30 | all regulations of a technical nature promulgated under this |
|
1 | chapter. The board shall be given a reasonable opportunity to |
2 | review and comment on all regulations of a technical nature |
3 | prior to submission to the Environmental Quality Board for |
4 | initial consideration. The written report of the board shall be |
5 | presented to the Environmental Quality Board with any regulatory |
6 | proposal. The chairman of the board shall be invited to |
7 | participate in the presentation of all regulations of a |
8 | technical nature before the Environmental Quality Board to the |
9 | extent allowed by procedures of the Environmental Quality Board. |
10 | Nothing herein shall preclude any member of the board from |
11 | filing a petition for rulemaking with the Environmental Quality |
12 | Board in accordance with procedures established by the |
13 | Environmental Quality Board. |
14 | § 3227. Air contaminant emissions. |
15 | (a) Natural gas operations.--An owner or operator of a |
16 | facility conducting natural gas operations in unconventional |
17 | formations including development, production, transmission and |
18 | processing shall submit to the department a source report |
19 | identifying and quantifying actual air contaminant emissions |
20 | from any air contamination source. The report shall include a |
21 | description of the methods used to calculate annual emissions. |
22 | (b) Air contamination sources.--An owner or operator of a |
23 | stationary air contamination source shall complete the reports |
24 | required under this section using forms and procedures specified |
25 | by the department. |
26 | (c) Nitrogen oxides and volatile organic compounds.--A |
27 | statement under 25 Pa. Code Ch. 135 (relating to reporting of |
28 | sources) for nitrogen oxides and volatile organic compounds |
29 | shall be submitted to the department according to the schedule |
30 | specified in subsection (d). |
|
1 | (d) Time.--The report for 2011 actual emissions shall be |
2 | submitted to the department on a schedule established by the |
3 | department. Each year after 2011, the report shall be submitted |
4 | to the department by March 1 for air contaminant emissions |
5 | during the preceding calendar year unless a different reporting |
6 | schedule is required by the Clean Air Act (69 Stat. 322, 42 |
7 | U.S.C. § 7401 et seq.) or regulations adopted under that act. |
8 | SUBCHAPTER C |
9 | UNDERGROUND GAS STORAGE |
10 | Sec. |
11 | 3231. Reporting requirements for gas storage operations. |
12 | 3232. Reporting requirements for coal mining operations. |
13 | 3233. General gas storage reservoir operations. |
14 | 3234. Gas storage reservoir operations in coal areas. |
15 | 3235. Inspection of facilities and records. |
16 | 3236. Reliance on maps and burden of proof. |
17 | 3237. Exemptions and prohibitions. |
18 | § 3231. Reporting requirements for gas storage operations. |
19 | (a) General duties.--The following shall apply: |
20 | (1) A person injecting into or storing gas in a storage |
21 | reservoir underlying or within 3,000 linear feet of an |
22 | operating coal mine in a coal seam that extends over the |
23 | storage reservoir or reservoir protective area shall, within |
24 | 60 days, file with the department a copy of a map and certain |
25 | data in the form and manner provided in this subsection or as |
26 | otherwise prescribed by regulation of the department. |
27 | (2) A person injecting gas into or storing gas in a |
28 | storage reservoir which is not under or within 3,000 linear |
29 | feet of, but less than 10,000 linear feet from, an operating |
30 | coal mine in a coal seam that extends over the storage |
|
1 | reservoir or reservoir protective area shall file the map and |
2 | data within 60 days or a longer period set by departmental |
3 | regulation. |
4 | (3) A person proposing to inject or store gas in a |
5 | storage reservoir located as defined in paragraph (1) or (2) |
6 | shall file the appropriate required map and data with the |
7 | department not less than six months prior to starting the |
8 | actual injection or storage. |
9 | (4) A map required by this subsection shall be prepared |
10 | by a competent engineer or geologist, showing: |
11 | (i) the stratum in which the existing or proposed |
12 | storage reservoir is or is proposed to be located; |
13 | (ii) the geographic location of the outside |
14 | boundaries of the storage reservoir and reservoir |
15 | protective area; |
16 | (iii) the location of all known oil or gas wells in |
17 | the reservoir or within 3,000 linear feet thereof which |
18 | have been drilled into or through the storage stratum, |
19 | indicating which have been or are to be cleaned out and |
20 | plugged or reconditioned for storage along with the |
21 | proposed location of all additional wells which are to be |
22 | drilled within the storage reservoir or within 3,000 |
23 | linear feet thereof. |
24 | (5) The following, if available, shall be furnished for |
25 | all known oil or gas wells which have been drilled into or |
26 | through the storage stratum within the storage reservoir or |
27 | within 3,000 linear feet thereof: name of the operator, date |
28 | drilled, total depth, depth of production if the well was |
29 | productive of oil or gas, the initial rock pressure and |
30 | volume, the depths at which all coal seams were encountered |
|
1 | and a copy of the driller's log or other similar information. |
2 | At the time of the filing of the maps and data, a statement |
3 | shall be filed: |
4 | (i) detailing efforts made to determine that the |
5 | wells shown are accurately located on the map; |
6 | (ii) affirming that the wells shown represent, to |
7 | the best of the operator's knowledge, all oil or gas |
8 | wells which have ever been drilled into or below the |
9 | storage stratum within the proposed storage reservoir or |
10 | within the reservoir protective area; |
11 | (iii) stating whether the initial injection is for |
12 | testing purposes; |
13 | (iv) stating the maximum pressure at which injection |
14 | and storage of gas is contemplated; and |
15 | (v) providing a detailed explanation of the methods |
16 | to be used or which previously have been used in |
17 | drilling, cleaning out, reconditioning and plugging wells |
18 | in the storage reservoir or within the reservoir |
19 | protective area. |
20 | (6) The map and data required to be filed under |
21 | paragraph (5) shall be amended or supplemented semiannually |
22 | if material changes occur. The department may require a |
23 | storage operator to amend or supplement the map or data at |
24 | more frequent intervals if material changes have occurred |
25 | justifying the earlier filing. |
26 | (b) Other reporting requirements.--A person who is injecting |
27 | gas into or storing gas in a storage reservoir not at the time |
28 | subject to subsection (a), by a process other than that of |
29 | secondary recovery or gas recycling, shall, within 60 days, or a |
30 | longer period set by departmental regulations, file maps and |
|
1 | data required by departmental regulation and as follows: |
2 | (1) A person who, after April 18, 1985, proposes to |
3 | inject or store gas in a storage reservoir in an area not |
4 | covered by subsection (a) by a process other than that of |
5 | secondary recovery or gas recycling shall file the required |
6 | map and data with the department not less than six months |
7 | prior to the starting of actual injection or storage. |
8 | (2) The map shall be prepared by a competent engineer or |
9 | competent geologist and show: |
10 | (i) the stratum in which the existing or proposed |
11 | storage reservoir is or is to be located; |
12 | (ii) the geographic location of the outside |
13 | boundaries of the storage reservoir; and |
14 | (iii) the location of all known oil or gas wells |
15 | within the reservoir, or within 3,000 linear feet |
16 | thereof, which have been drilled into or through the |
17 | storage stratum, indicating which have been or are to be |
18 | cleaned out and plugged or reconditioned for storage and |
19 | the proposed location of all additional wells which are |
20 | to be drilled within the storage reservoir or within |
21 | 3,000 linear feet thereof. |
22 | (3) The following, if available, shall be furnished for |
23 | all known oil or gas wells which have been drilled into or |
24 | through the storage stratum within the storage reservoir or |
25 | within 3,000 linear feet thereof: name of the operator, date |
26 | drilled, total depth, depth of production if the well was |
27 | productive of oil or gas, the initial rock pressure and |
28 | volume and a copy of the driller's log or other similar |
29 | information. At the time of the filing of the maps and data, |
30 | a statement shall be filed: |
|
1 | (i) detailing efforts made to determine that the |
2 | wells shown are accurately located on the map; |
3 | (ii) affirming that the wells shown represent, to |
4 | the best of the operator's knowledge, all oil or gas |
5 | wells which have ever been drilled into or below the |
6 | storage stratum within the proposed storage reservoir; |
7 | (iii) stating whether the initial injection is for |
8 | testing purposes; |
9 | (iv) stating the maximum pressure at which injection |
10 | and storage of gas is contemplated; and |
11 | (v) providing a detailed explanation of the methods |
12 | to be used or which previously have been used in |
13 | drilling, cleaning out, reconditioning and plugging wells |
14 | in the storage reservoir. |
15 | (4) The map and data required to be filed under |
16 | paragraph (3) shall be amended or supplemented semiannually |
17 | if material changes occur. The department may require a |
18 | storage operator to amend or supplement the map or data at |
19 | more frequent intervals if material changes have occurred |
20 | justifying the earlier filing. |
21 | (c) Political subdivisions.--Storage operators shall give |
22 | notice to the department of the name of each political |
23 | subdivision and county in which the operator maintains and |
24 | operates a gas storage reservoir. |
25 | (d) Notice to affected persons.--At the time of the filing |
26 | of maps and data and the filing of amended or supplemental maps |
27 | or data required by this section, the person filing the |
28 | information shall give written notice of the filing to all |
29 | persons who may be affected under the provisions of this chapter |
30 | by the storage reservoir described in the maps or data. Notices |
|
1 | shall contain a description of the boundaries of the storage |
2 | reservoir. When a person operating a coal mine or owning an |
3 | interest in coal properties which are or may be affected by the |
4 | storage reservoir requests, in writing, a copy of any map or |
5 | data filed with the department, the copy shall be furnished by |
6 | the storage operator. |
7 | (e) Outside boundaries.--For purposes of this chapter, the |
8 | outside boundaries of a storage reservoir shall be defined by |
9 | the location of those wells around the periphery of the storage |
10 | reservoir which had no gas production when drilled in the |
11 | storage stratum. The boundaries shall be originally fixed or |
12 | subsequently changed if, based on the number and nature of the |
13 | wells and the geological and production knowledge of the storage |
14 | stratum, its character, permeability, distribution and operating |
15 | experience, it is determined in a conference under section 3251 |
16 | (relating to conferences) that modifications should be made. |
17 | (f) Inapplicability of section.--The requirements of this |
18 | section shall not apply to the operator of an underground gas |
19 | storage reservoir so long as the reservoir is located more than |
20 | 10,000 linear feet from an operating coal mine, except that the |
21 | storage operator shall give notice to the department of the name |
22 | of each political subdivision and county in which the operator |
23 | maintains and operates a gas storage reservoir. In political |
24 | subdivisions and counties where both gas storage reservoirs and |
25 | coal mines are being operated, the department may request the |
26 | storage operator to furnish maps showing geographical locations |
27 | and outside boundaries of the storage reservoirs. The department |
28 | shall keep a record of the information and promptly notify the |
29 | coal operator and the storage operator when notified by them |
30 | that the coal mine and storage reservoir are within 10,000 |
|
1 | linear feet of each other. |
2 | § 3232. Reporting requirements for coal mining operations. |
3 | (a) General rule.--A person owning or operating a coal mine |
4 | shall file with the department a map prepared and sealed by a |
5 | competent individual licensed as a professional engineer or |
6 | professional land surveyor under the provisions of the act of |
7 | May 23, 1945 (P.L.913, No.367), known as the Engineer, Land |
8 | Surveyor and Geologist Registration Law, showing the outside |
9 | coal boundaries of the operating coal mine, the existing |
10 | workings and exhausted areas and the relationship of the |
11 | boundaries to identifiable surface properties and landmarks. A |
12 | person owning or operating an operating coal mine which has been |
13 | penetrated by a well shall furnish a mine map to the department |
14 | each year indicating the excavations for the preceding year and |
15 | the projections for the ensuing year. The map required by this |
16 | subsection shall be furnished to a person storing or |
17 | contemplating the storage of gas in the vicinity of operating |
18 | coal mines, upon written request, by the coal operator, and the |
19 | person and the department shall thereafter be informed of any |
20 | boundary changes at the time the changes occur. The department |
21 | shall keep a record of the information and promptly notify the |
22 | coal operator and storage operator when notified by them that |
23 | the coal mine and the storage reservoir are within 10,000 linear |
24 | feet of each other. |
25 | (b) Mines near certain reservoirs.--A person owning or |
26 | operating any coal mine which is or which comes within 10,000 |
27 | linear feet of a storage reservoir and where the coal seam being |
28 | operated extends over the storage reservoir or reservoir |
29 | protective area shall, within 45 days after receiving notice |
30 | from the storage operator of that fact, file with the department |
|
1 | and furnish to the person operating the storage reservoir a map |
2 | in the form required by subsection (a) showing, in addition to |
3 | the requirements of subsection (a), existing and projected |
4 | excavations and workings of the operating coal mine for the |
5 | ensuing 18-month period and the location of oil or gas wells of |
6 | which the coal operator has knowledge. The person owning or |
7 | operating the coal mine shall, each six months thereafter, file |
8 | with the department and furnish to the person operating the |
9 | storage reservoir a revised map showing any additional |
10 | excavations and workings, together with the projected |
11 | excavations and workings for the then ensuing 18-month period, |
12 | which may be within 10,000 linear feet of the storage reservoir. |
13 | The department may require a coal operator to file revised maps |
14 | at more frequent intervals if material changes have occurred |
15 | justifying earlier filing. The person owning or operating the |
16 | coal mine shall also file with the department and furnish the |
17 | person operating the reservoir prompt notice of any wells which |
18 | have been cut into, together with all available pertinent |
19 | information. |
20 | (c) Mines near gas storage reservoirs.--A person owning or |
21 | operating a coal mine who has knowledge that it overlies or is |
22 | within 2,000 linear feet of a gas storage reservoir shall, |
23 | within 30 days, notify the department and the storage operator |
24 | of that fact. |
25 | (d) Mines projected to be near storage reservoirs.--When a |
26 | person owning or operating a coal mine expects that, within the |
27 | ensuing nine-month period, the coal mine will be extended to a |
28 | point which will be within 2,000 linear feet of any storage |
29 | reservoir, the person shall notify the department and storage |
30 | operator in writing of that fact. |
|
1 | (e) New mines.--A person intending to establish or |
2 | reestablish an operating coal mine which will be over a storage |
3 | reservoir or within 2,000 linear feet of a storage reservoir or |
4 | may, within nine months thereafter, be expected to be within |
5 | 2,000 linear feet of a storage reservoir shall immediately |
6 | notify the department and storage operator in writing. Notice |
7 | shall include the date on which the person intends to establish |
8 | or reestablish the operating coal mine. |
9 | (f) Misdemeanor.--A person who serves notice as required by |
10 | this subsection of an intention to establish or reestablish an |
11 | operating coal mine, without intending in good faith to |
12 | establish or reestablish the mine, is liable for continuing |
13 | damages to a storage operator injured by the improper notice and |
14 | commits a misdemeanor subject to the penalties of section 3255 |
15 | (relating to penalties). |
16 | § 3233. General gas storage reservoir operations. |
17 | (a) General rule.--A person who operates or proposes to |
18 | operate a storage reservoir, except one filled by the secondary |
19 | recovery or gas recycling process, shall: |
20 | (1) Use every known method which is reasonable under the |
21 | circumstances for discovering and locating all wells which |
22 | have or may have been drilled into or through the storage |
23 | reservoir. |
24 | (2) Plug or recondition, as provided in departmental |
25 | regulations, all known wells drilled into or through the |
26 | storage reservoir, except to the extent otherwise provided in |
27 | subsections (b) and (c). |
28 | (b) Wells to be plugged.--To comply with subsection (a), |
29 | wells which are to be plugged shall be plugged in the manner |
30 | specified in section 3220 (relating to plugging requirements). |
|
1 | (b.1) Wells plugged prior to enactment of section.--If a |
2 | well located in the storage reservoir area has been plugged |
3 | prior to April 18, 1985, and on the basis of data, information |
4 | and other evidence submitted to the department, it is determined |
5 | that the plugging was done in the manner required by section |
6 | 3220 or approved as an alternative method under section 3221 |
7 | (relating to alternative methods) and the plugging is still |
8 | sufficiently effective to meet the requirements of this chapter, |
9 | the obligations under subsection (a) with regard to plugging the |
10 | well shall be considered to have been fully satisfied. |
11 | (c) Wells to be reconditioned.--The following shall apply: |
12 | (1) To comply with subsection (a), wells which are to be |
13 | reconditioned shall, unless the department by regulation |
14 | specifies a different procedure, be cleaned out from the |
15 | surface through the storage horizon, and the producing casing |
16 | and casing strings determined not to be in good physical |
17 | condition shall be replaced with new casing, using the same |
18 | procedure as is applicable to drilling a new well under this |
19 | chapter. In the case of wells to be used for gas storage, the |
20 | annular space between each string of casing and the annular |
21 | space behind the largest diameter casing to the extent |
22 | possible shall be filled to the surface with cement or |
23 | bentonitic mud or a nonporous material approved by the |
24 | department under section 3221. At least 15 days prior to |
25 | reconditioning, the storage operator shall give notice to the |
26 | department, setting forth in the notice the manner in which |
27 | it is planned to recondition the well and any pertinent data |
28 | known to the storage operator which will indicate the |
29 | condition of the well existing at that time. In addition, the |
30 | storage operator shall give the department at least 72 hours' |
|
1 | notice of the time when reconditioning is to begin. If no |
2 | objections are raised by the department within ten days, the |
3 | storage operator may proceed with reconditioning in |
4 | accordance with the plan as submitted. If objections are made |
5 | by the department, the department may fix a time and place |
6 | for a conference under section 3251 (relating to conferences) |
7 | at which the storage operator and department shall endeavor |
8 | to agree on a plan to satisfy the objections and meet the |
9 | requirements of this section. If no agreement is reached, the |
10 | department may, by an appropriate order, determine whether |
11 | the plan as submitted meets the requirements of this section |
12 | or what changes, if any, are required. If, in reconditioning |
13 | a well in accordance with the plan, physical conditions are |
14 | encountered which justify or necessitate a change in the |
15 | plan, the storage operator may request that the plan be |
16 | changed. If the request is denied, the department shall fix a |
17 | conference under section 3251 and proceed in the same manner |
18 | as with original objections. An application may be made in |
19 | the manner prescribed by section 3221 for approval of an |
20 | alternative method of reconditioning a well. If a well |
21 | located within the storage reservoir was reconditioned, or |
22 | drilled and equipped, prior to April 18, 1985, the |
23 | obligations imposed by subsection (a), as to reconditioning |
24 | the well, shall be considered fully satisfied if, on the |
25 | basis of the data, information and other evidence submitted |
26 | to the department, it is determined that: |
27 | (i) The conditioning or previous drilling and |
28 | equipping was done in the manner required in this |
29 | subsection, in regulations promulgated under this chapter |
30 | or in a manner approved as an alternative method in |
|
1 | accordance with section 3221. |
2 | (ii) The reconditioning or previous drilling and |
3 | equipping is still sufficiently effective to meet the |
4 | requirements of this chapter. |
5 | (2) If a well requires emergency repairs, this chapter |
6 | shall not be construed to require the storage operator to |
7 | give any notice required by this subsection before making the |
8 | repairs. |
9 | (d) Exception.--The requirements of subsection (a) shall not |
10 | apply to injection of gas into a stratum when the sole purpose |
11 | of injection, referred to in this subsection as testing, is to |
12 | determine whether the stratum is suitable for storage purposes. |
13 | Testing shall be conducted only in compliance with the following |
14 | requirements: |
15 | (1) The person testing or proposing to test shall comply |
16 | with section 3231 (relating to reporting requirements for gas |
17 | storage operations) and verify the statement required to be |
18 | filed by that section. |
19 | (2) The storage operator shall give at least six months' |
20 | written notice to the department of the fact that injection |
21 | of gas for testing purposes is proposed. |
22 | (3) If the department has objections, the department |
23 | shall fix a time and place for a conference under section |
24 | 3251, not more than ten days from the date of notice to the |
25 | storage operator, at which time the storage operator and |
26 | department shall attempt to resolve the issues presented. If |
27 | an agreement cannot be reached, the department may issue an |
28 | appropriate order. |
29 | (e) Failure to execute lawful order.--In a proceeding under |
30 | this chapter, if the department determines that an operator of a |
|
1 | storage reservoir has failed to carry out a lawful order issued |
2 | under this chapter, the department may require the operator to |
3 | suspend operation of the reservoir and withdraw the gas until |
4 | the violation is remedied, in which case the storage operator, |
5 | limited by due diligence insofar as existing facilities utilized |
6 | to remove gas from the reservoir will permit, shall: |
7 | (1) if possible, remove the amount required by the |
8 | department to be removed; or |
9 | (2) in any event, remove the maximum amount which can be |
10 | withdrawn in accordance with recognized engineering and |
11 | operating procedures. |
12 | (f) Duty of storage reservoir operator.--The following shall |
13 | apply: |
14 | (1) A person owning or operating a storage reservoir |
15 | subject to this chapter shall have a duty to: |
16 | (i) Maintain all wells drilled into or through the |
17 | reservoir in a condition, and operate them in a manner, |
18 | sufficient to prevent the escape of gas. |
19 | (ii) Operate and maintain the reservoir and its |
20 | facilities as prescribed by departmental regulations and |
21 | at a pressure which will prevent gas from escaping, but |
22 | the pressure shall not exceed the highest rock pressure |
23 | found to have existed during the production history of |
24 | the reservoir or another high pressure limit approved by |
25 | the department after holding a conference under section |
26 | 3251 based on geological and production knowledge of the |
27 | reservoir, its character, permeability distribution and |
28 | operating experience. |
29 | (2) The duty under paragraph (1) shall not be construed |
30 | to include inability to prevent the escape of gas when gas |
|
1 | escapes as a result of an act of God or a person not under |
2 | the control of the storage operator. In that instance, the |
3 | storage operator shall have a duty to take action reasonably |
4 | necessary to prevent further escape of gas. This paragraph |
5 | does not apply to a well which the storage operator failed to |
6 | locate and make known to the department. |
7 | § 3234. Gas storage reservoir operations in coal areas. |
8 | (a) General rule.--A person operating a storage reservoir |
9 | which underlies or is within 2,000 linear feet of a coal mine |
10 | operating in a coal seam that extends over the storage reservoir |
11 | or the reservoir protective area shall: |
12 | (1) Use every known reasonable method for discovering |
13 | and locating all wells which have or may have been drilled |
14 | into or through the storage stratum in the acreage lying |
15 | within the outside coal boundaries of the operating coal mine |
16 | overlying the storage reservoir or the reservoir protective |
17 | area. |
18 | (2) Plug or recondition, as provided by section 3220 |
19 | (relating to plugging requirements) and subsection (e), all |
20 | known wells, except to the extent provided in subsections |
21 | (e), (f), (g) and (h), drilled into or through the storage |
22 | stratum and located within the portion of the acreage of the |
23 | operating coal mine overlying the storage reservoir or the |
24 | reservoir protective area. If an objection is raised as to |
25 | use of a well as a storage well and after a conference under |
26 | section 3251 (relating to conferences), it is determined by |
27 | the department, taking into account all circumstances and |
28 | conditions, that the well should not be used as a storage |
29 | well, the well shall be plugged unless, in the opinion of the |
30 | storage operator, the well may be used as a storage well in |
|
1 | the future, in which case, upon approval of the department |
2 | after taking into account all circumstances and conditions, |
3 | the storage operator may recondition and inactivate the well |
4 | rather than plug it. |
5 | (3) The requirements of paragraph (2) shall be deemed to |
6 | have been fully complied with if, as the operating coal mine |
7 | is extended, all wells which from time to time come within |
8 | the acreage described in paragraph (2) are reconditioned or |
9 | plugged as provided in section 3220 and subsection (e) or (f) |
10 | so that, by the time the coal mine has reached a point within |
11 | 2,000 linear feet of the wells, they will have been |
12 | reconditioned or plugged in accordance with section 3220 and |
13 | subsection (e) or (f). |
14 | (b) Verified statement.--A person operating a storage |
15 | reservoir referred to in subsection (a) shall file with the |
16 | department and furnish a copy to the person operating the |
17 | affected operating coal mine a verified statement setting forth: |
18 | (1) That the map and any supplemental maps required by |
19 | section 3231(a) (relating to reporting requirements for gas |
20 | storage operations) have been prepared and filed in |
21 | accordance with section 3231. |
22 | (2) A detailed explanation of what the storage operator |
23 | has done to comply with the requirements of subsection (a)(1) |
24 | and (2) and the results of those actions. |
25 | (3) Such additional efforts, if any, as the storage |
26 | operator is making and intends to make to locate all wells. |
27 | (4) Any additional wells that are to be plugged or |
28 | reconditioned to meet the requirements of subsection (a)(2). |
29 | (b.1) Order of department.--If the statement required under |
30 | subsection (b) is not filed by the storage reservoir operator |
|
1 | within the time specified by this chapter or the regulations of |
2 | the department, the department may order the operator to file |
3 | the statement. |
4 | (c) Procedure.--Within 120 days after receipt of a statement |
5 | required by this section, the department may direct that a |
6 | conference be held in accordance with section 3251 to determine |
7 | whether the requirements of section 3231 and subsection (a) have |
8 | been fully met. At the conference, if any person believes the |
9 | requirements have not been fully met, the parties shall attempt |
10 | to agree on additional actions to be taken and the time for |
11 | completion, subject to approval of the department. If an |
12 | agreement cannot be reached, the department shall make a |
13 | determination and, if the department determines any requirements |
14 | have not been met, the department shall issue an order |
15 | specifying in detail the extent to which the requirements have |
16 | not been met and the actions which the storage operator must |
17 | complete to meet the requirements. The order shall grant as much |
18 | time as is reasonably necessary to fully comply. If the storage |
19 | operator encounters conditions not known to exist at the time of |
20 | issuance of the order and which materially affect the validity |
21 | of the order or the ability of the storage operator to comply |
22 | with it, the storage operator may apply for a rehearing or |
23 | modification of the order. |
24 | (d) Notification.--If, in complying with subsection (a), a |
25 | storage operator, after filing the statement provided for in |
26 | subsection (b), plugs or reconditions a well, the storage |
27 | operator shall notify the department and the coal operator |
28 | affected, in writing, setting forth facts indicating the manner |
29 | in which the plugging or reconditioning was done. Upon receipt |
30 | of the notification, the coal operator or department may request |
|
1 | a conference under section 3251. |
2 | (e) Plugging wells.--In order to meet the requirements of |
3 | subsection (a), wells which are to be plugged shall be plugged |
4 | in the manner specified in regulations promulgated under section |
5 | 3211 (relating to well permits). When a well located within the |
6 | storage reservoir or the reservoir protective area has been |
7 | plugged prior to April 18, 1985, and, on the basis of the data |
8 | information and other evidence submitted to the department, it |
9 | is determined that the plugging was done in the manner required |
10 | by section 3220, or in a manner approved as an alternative |
11 | method in accordance with section 3221 (relating to alternative |
12 | methods), and the plugging is still sufficiently effective to |
13 | meet the requirements of this chapter, the requirements of |
14 | subsection (a) as to plugging the well shall be considered to |
15 | have been fully satisfied. |
16 | (f) Reconditioned wells.--The following shall apply: |
17 | (1) In order to comply with subsection (a), unless the |
18 | department by regulation specifies a different procedure, |
19 | wells which are to be reconditioned shall be cleaned out from |
20 | the surface through the storage horizon, and the following |
21 | casing strings shall be pulled and replaced with new casing, |
22 | using the procedure applicable to drilling a new well under |
23 | this chapter: |
24 | (i) the producing casing; |
25 | (ii) the largest diameter casing passing through the |
26 | lowest workable coal seam unless it extends at least 25 |
27 | feet below the bottom of the coal seam and is determined |
28 | to be in good physical condition, but the storage |
29 | operator may, instead of replacing the largest diameter |
30 | casing, replace the next largest casing string if the |
|
1 | casing string extends at least 25 feet below the lowest |
2 | workable coal seam; and |
3 | (iii) casing strings determined not to be in good |
4 | physical condition. |
5 | (2) In the case of a well to be used for gas storage, |
6 | the annular space between each string of casing and the |
7 | annular space behind the largest diameter casing, to the |
8 | extent possible, shall be filled to the surface with cement |
9 | or bentonitic mud or an equally nonporous material approved |
10 | by the department under section 3221. |
11 | (3) At least 15 days before a well is to be |
12 | reconditioned, the storage operator shall give notice to the |
13 | department and the coal operator, lessee or owner, setting |
14 | forth the manner in which reconditioning is planned and |
15 | pertinent data known to the storage operator which will |
16 | indicate the current condition of the well, along with at |
17 | least 72 hours' notice of the date and time when |
18 | reconditioning will begin. The coal operator, lessee or owner |
19 | shall have the right to file, within ten days after receipt |
20 | of the notice, objections to the plan of reconditioning as |
21 | submitted by the storage operator. If no objections are filed |
22 | and none are raised by the department within ten days, the |
23 | storage operator may proceed with reconditioning in |
24 | accordance with the plan as submitted. If an objection is |
25 | filed or made by the department, the department shall fix a |
26 | time and place for a conference under section 3251, at which |
27 | conference the storage operator and the person having |
28 | objections shall attempt to agree on a plan of reconditioning |
29 | that meets the requirements of this section. If no agreement |
30 | is reached, the department shall, by an appropriate order, |
|
1 | determine whether the plan as submitted meets the |
2 | requirements of this section or what changes should be made |
3 | to meet the requirements. If, in reconditioning the well in |
4 | accordance with the plan, physical conditions are encountered |
5 | which justify or necessitate a change in the plan, the |
6 | storage operator or coal operator may request that the plan |
7 | be changed. If the parties cannot agree on a change, the |
8 | department shall arrange for a conference to determine the |
9 | matter in the same manner as set forth in connection with |
10 | original objections to the plan. |
11 | (4) Application may be made to the department in the |
12 | manner prescribed in section 3221 for approval of an |
13 | alternative method of reconditioning a well. When a well |
14 | located within the storage reservoir or the reservoir |
15 | protective area has been reconditioned or drilled and |
16 | equipped prior to April 18, 1985, and, on the basis of the |
17 | data, information and other evidence submitted to the |
18 | department, the obligations imposed by subsection (a) as to |
19 | reconditioning the well shall be considered to be fully |
20 | satisfied if it is determined that reconditioning or previous |
21 | drilling and equipping: |
22 | (i) was done in the manner required in this |
23 | subsection, or in regulations promulgated hereunder, or |
24 | in a manner approved as an alternative method in |
25 | accordance with section 3221; or |
26 | (ii) is still sufficiently effective to meet the |
27 | requirements of this chapter. |
28 | (5) If a well requires emergency repairs, this |
29 | subsection shall not be construed to require the storage |
30 | operator to give the notices specified herein before making |
|
1 | the repairs. |
2 | (g) Producing wells.--If a well located within the reservoir |
3 | protective area is a producing well in a stratum below the |
4 | storage stratum, the obligations imposed by subsection (a) shall |
5 | not begin until the well ceases to be a producing well. |
6 | (h) Certain other wells.--If a well within a storage |
7 | reservoir or reservoir protective area penetrates the storage |
8 | stratum but does not penetrate the coal seam being mined by an |
9 | operating coal mine, the department may, upon application of the |
10 | operator of the storage reservoir, exempt the well from the |
11 | requirements of this section. Either party affected may request |
12 | a conference under section 3251 with respect to exemption of a |
13 | well covered by this subsection. |
14 | (i) Plugging limitation.--In fulfilling the requirements of |
15 | subsection (a)(2) with respect to a well within the reservoir |
16 | protective area, the storage operator shall not be required to |
17 | plug or recondition the well until the storage operator has |
18 | received from the coal operator written notice that the mine |
19 | workings will, within the period stated in the notice, be within |
20 | 2,000 linear feet of the well. Upon the receipt of the notice, |
21 | the storage operator shall use due diligence to complete the |
22 | plugging or reconditioning of the well in accordance with the |
23 | requirements of this section and section 3220. If the mine |
24 | workings do not, within a period of three years after the well |
25 | has been plugged, come within 2,000 linear feet of the well, the |
26 | coal operator shall reimburse the storage operator for the cost |
27 | of plugging, provided that the well is still within the |
28 | reservoir protective area as of that time. |
29 | (j) Retreat mining.--If retreat mining approaches a point |
30 | where, within 90 days, it is expected that the retreat work will |
|
1 | be at the location of the pillar surrounding an active storage |
2 | well, the coal operator shall give written notice to the storage |
3 | operator, and by agreement, the parties shall determine whether |
4 | it is necessary or advisable to effectively and temporarily |
5 | inactivate the well. The well shall not be reactivated until a |
6 | reasonable period, determined by the parties, has elapsed. If |
7 | the parties cannot agree as required by this subsection, the |
8 | matter shall be submitted to the department for resolution. The |
9 | number of wells required to be temporarily inactivated during |
10 | the retreat period shall not be of a number that materially |
11 | affects efficient operation of the storage pool, except that |
12 | this provision shall not preclude temporary inactivation of a |
13 | particular well if the practical effect of inactivating it is to |
14 | render the pool temporarily inoperative. |
15 | (k) Exceptions.--The requirements of subsections (a), (l) |
16 | and (m) shall not apply to injection of gas into a stratum when |
17 | the whole purpose of injection, referred to in this subsection |
18 | as testing, is to determine whether the stratum is suitable for |
19 | storage purposes. Testing shall be conducted only in compliance |
20 | with the following requirements: |
21 | (1) The person testing or proposing to test shall comply |
22 | with all provisions and requirements of section 3231 and |
23 | verify the statement required to be filed by that section. |
24 | (2) If any part of the proposed storage reservoir is |
25 | under or within 2,000 linear feet of an operating coal mine |
26 | which is operating in a coal seam that extends over the |
27 | proposed storage reservoir or the reservoir protective area, |
28 | the storage operator shall give at least six months' written |
29 | notice to the department and coal operator of the fact that |
30 | injection of gas for testing purposes is proposed. |
|
1 | (3) The coal operator affected may at any time file |
2 | objections with the department, whereupon the department |
3 | shall fix a time and place for a conference under section |
4 | 3251, not more than ten days from the date of the notice to |
5 | the storage operator. At the conference, the storage operator |
6 | and the objecting party shall attempt to agree, subject to |
7 | approval of the department, on the questions involved. If an |
8 | agreement cannot be reached, the department may issue an |
9 | appropriate order. |
10 | (4) If at any time a proposed storage reservoir being |
11 | tested comes under or within 2,000 linear feet of an |
12 | operating coal mine because of extension of the storage |
13 | reservoir being tested or because of extension or |
14 | establishment or reestablishment of the operating coal mine, |
15 | the requirements of this subsection shall immediately become |
16 | applicable to the testing. |
17 | (l) Storage reservoirs near operating coal mines.--A person |
18 | who proposes to establish a storage reservoir under or within |
19 | 2,000 linear feet of a coal mine operating in a coal seam that |
20 | extends over the storage reservoir or the reservoir protective |
21 | area shall, prior to establishing the reservoir, and in addition |
22 | to complying with section 3231 and subsection (a), file the |
23 | verified statement required by subsection (b) and fully comply |
24 | with any order of the department in the manner provided under |
25 | subsection (b) or (c) before commencing operation of the storage |
26 | reservoir. After the person proposing to operate the storage |
27 | reservoir complies with the requirements of this subsection and |
28 | commences operations, the person shall continue to be subject to |
29 | all provisions of this chapter. |
30 | (m) Gas storage reservoirs.--If a gas storage reservoir is |
|
1 | in operation on April 18, 1985, and at any time thereafter it is |
2 | under or within 2,000 linear feet of an operating coal mine, or |
3 | if a gas storage reservoir is put in operation after April 18, |
4 | 1985, and at any time after storage operations begin it is under |
5 | or within 2,000 linear feet of an operating coal mine, the |
6 | storage operator shall comply with all of the provisions of this |
7 | section, except that: |
8 | (1) the time for filing the verified statement under |
9 | subsection (b) shall be 60 days after the date stated in the |
10 | notice filed by the coal operator under section 3232(d) and |
11 | (e) (relating to reporting requirements for coal mining |
12 | operations); |
13 | (2) the coal operator shall give notice of the delay to |
14 | the department; |
15 | (3) the department shall, upon the request of the |
16 | storage operator, extend the time for filing the statement by |
17 | the additional time which will be required to extend or |
18 | establish or reestablish the operating coal mine to a point |
19 | within 2,000 linear feet of the reservoir; |
20 | (4) the verified statement shall also indicate that the |
21 | map referred to in section 3231(a) has been currently amended |
22 | as of the time of the filing of the statement; and |
23 | (5) the person operating the storage reservoir shall |
24 | continue to be subject to all of the provisions of this |
25 | chapter. |
26 | (n) Failure to comply with order.--If, in any proceeding |
27 | under this chapter, the department determines that an operator |
28 | of a storage reservoir has failed to comply with a lawful order |
29 | issued under this chapter, the department may require the |
30 | storage operator to suspend operation of the reservoir and |
|
1 | withdraw the gas from it until the violation is remedied, in |
2 | which case the storage operator, limited by due diligence |
3 | insofar as existing facilities utilized to remove gas from the |
4 | reservoir will permit, shall: |
5 | (1) if possible, remove the amount required by the |
6 | department to be removed; or |
7 | (2) in any event, remove the maximum amount which can be |
8 | withdrawn in accordance with recognized engineering and |
9 | operating procedures. |
10 | (o) Prevention of escape of gas.--In addition to initial |
11 | compliance with other provisions of this chapter and lawful |
12 | orders issued under this chapter, it shall be the duty, at all |
13 | times, of a person owning or operating a storage reservoir |
14 | subject to this chapter to keep all wells drilled into or |
15 | through the storage stratum in a condition, and operate the |
16 | wells in a manner, which is designed to prevent the escape of |
17 | gas out of the storage reservoir and its facilities, and to |
18 | operate and maintain the storage reservoir and its facilities in |
19 | the manner prescribed by regulation of the department and at a |
20 | pressure that will prevent gas from escaping from the reservoir |
21 | or its facilities. This duty shall not be construed to include |
22 | inability to prevent the escape of gas when escape results from |
23 | an act of God or a person not under the control of the storage |
24 | operator, except that this exception does not apply to a well |
25 | which the storage operator has failed to locate and make known |
26 | to the department. If an escape of gas results from an act of |
27 | God or a person not under the control of the storage operator, |
28 | the storage operator shall be under the duty to take any action |
29 | reasonably necessary to prevent further escape of gas out of the |
30 | storage reservoir and its facilities. |
|
1 | § 3235. Inspection of facilities and records. |
2 | (a) General rule.--The person operating a storage reservoir |
3 | affected by this chapter shall, at all reasonable times, be |
4 | permitted to inspect applicable records and facilities of a coal |
5 | mine overlying the storage reservoir or reservoir protective |
6 | area. The person operating a coal mine affected by this chapter |
7 | shall, at all reasonable times, be permitted to inspect |
8 | applicable records and facilities of a storage reservoir |
9 | underlying the coal mine. |
10 | (b) Order.--If a storage operator or coal operator subject |
11 | to subsection (a) refuses to permit inspection of records or |
12 | facilities, the department may, on its own motion or on |
13 | application of the party seeking inspection, after reasonable |
14 | written notice and a hearing if requested by an affected party, |
15 | order inspection. |
16 | § 3236. Reliance on maps and burden of proof. |
17 | (a) General rule.--In determining whether a coal mine or |
18 | operating coal mine is or will be within a particular distance |
19 | from a storage reservoir which is material under this chapter, |
20 | the owner or operator of the coal mine and the storage operator |
21 | may rely on the most recent map of the storage reservoir or coal |
22 | mine filed by the other party with the department. |
23 | (b) Accuracy.--Where accuracy of a map or data filed under |
24 | this chapter is in issue, the person that filed the map or data |
25 | shall: |
26 | (1) at the request of an objecting party, disclose the |
27 | information and method used to compile the map or data, along |
28 | with any information available to the person that might |
29 | affect current validity of the map or data; and |
30 | (2) have the burden of proving accuracy of the map or |
|
1 | data. |
2 | § 3237. Exemptions and prohibitions. |
3 | (a) Inapplicability of chapter to certain coal mines.--This |
4 | chapter shall not apply to the following types of coal mines: |
5 | (1) Strip mines and auger mines operating from the |
6 | surface. |
7 | (2) Mines to which the former act of June 9, 1911 |
8 | (P.L.756, No.319), entitled "An act to provide for the health |
9 | and safety of persons employed in and about the bituminous |
10 | coal-mines of Pennsylvania, and for the protection and |
11 | preservation of property connected therewith," did not apply |
12 | in accordance with section 3 of that act. |
13 | (3) Mines to which the former act of June 2, 1891 |
14 | (P.L.176, No.177), entitled "An act to provide for the health |
15 | and safety of persons employed in and about the anthracite |
16 | coal mines of Pennsylvania and for the protection and |
17 | preservation of property connected therewith," did not apply |
18 | in accordance with section 32 of that act. |
19 | (b) Workable coal seams.--Injection of gas for storage |
20 | purposes in a workable coal seam, whether or not it is being or |
21 | has been mined, is prohibited. |
22 | (b.1) Original extraction.--Nothing in this chapter |
23 | prohibits original extraction of natural gas, crude oil or coal. |
24 | (c) Certain rock formations.--Nothing in this chapter |
25 | applies to storage of gas or liquids in storage reservoirs |
26 | excavated in rock formations specifically for storage purposes. |
27 | SUBCHAPTER D |
28 | EMINENT DOMAIN |
29 | Sec. |
30 | 3241. Appropriation of interest in real property. |
|
1 | § 3241. Appropriation of interest in real property. |
2 | (a) General rule.--Except as provided in this subsection, a |
3 | corporation empowered to transport, sell or store natural gas or |
4 | manufactured gas in this Commonwealth may appropriate an |
5 | interest in real property located in a storage reservoir or |
6 | reservoir protective area for injection, storage and removal |
7 | from storage of natural gas or manufactured gas in a stratum |
8 | which is or previously has been commercially productive of |
9 | natural gas. The right granted by this subsection shall not be |
10 | exercised to acquire any of the following for the purpose of gas |
11 | storage: |
12 | (1) An interest in a geological stratum within the area |
13 | of a proposed storage reservoir or reservoir protective area: |
14 | (i) unless the original recoverable oil or gas |
15 | reserves in the proposed storage reservoir have been |
16 | depleted or exhausted by at least 80%; and |
17 | (ii) until the condemnor has acquired the right, by |
18 | grant, lease or other agreement, to store gas in the |
19 | geological stratum underlying at least 75% of the area of |
20 | the proposed storage reservoir. |
21 | (2) An interest in a geological stratum within the area |
22 | of a proposed storage reservoir or reservoir protective area |
23 | owned directly or indirectly by a gas company or other person |
24 | engaged in local distribution of natural gas, if the interest |
25 | to be acquired is presently being used by the gas company or |
26 | other person for storage of gas in performance of service to |
27 | customers in its service area. |
28 | (b) Construction.--The following shall apply: |
29 | (1) This chapter authorizes appropriation within a |
30 | storage reservoir or reservoir protective area of the |
|
1 | following: |
2 | (i) a stratum to be used for storage; |
3 | (ii) any gas reserve remaining a stratum to be used |
4 | for storage; |
5 | (iii) an active or abandoned well or wells drilled |
6 | into a stratum to be used for storage; and |
7 | (iv) the right to enter upon and use the surface of |
8 | lands to: |
9 | (A) locate, recondition, maintain, plug or |
10 | replug an active or abandoned well; or |
11 | (B) operate a well drilled into or through a |
12 | stratum to be used for storage. |
13 | (2) This chapter does not preclude the owner of |
14 | nonstorage strata from drilling wells to produce oil or gas |
15 | from a stratum above or below the storage stratum |
16 | appropriated by another person, but a person appropriating or |
17 | holding storage rights may access, inspect and examine the |
18 | drilling, the completed well, drilling logs and other records |
19 | relating to drilling, equipping or operating the well in |
20 | order to determine whether the storage stratum is being |
21 | adequately protected to prevent escape of gas stored therein. |
22 | (3) This chapter does not authorize appropriation of a |
23 | coal or coal measure, regardless of whether it is being |
24 | mined, or an interest in the coal mine or coal measure. |
25 | (c) Activities through appropriated strata.--A person |
26 | drilling, operating, using or plugging a well through a stratum |
27 | appropriated under this chapter shall drill, case, equip, |
28 | operate or plug it in a manner designed to prevent avoidable |
29 | escape of gas that may be stored in the storage stratum. Upon |
30 | violation of this subsection, the court of common pleas of the |
|
1 | county where the land in question is situated may compel |
2 | compliance by injunction or grant other appropriate relief in an |
3 | action brought by the person storing gas in the storage stratum. |
4 | (d) Prerequisites to appropriation.--Before appropriating |
5 | under this chapter, a person shall attempt to agree with owners |
6 | of interests in the real property involved as to damages payable |
7 | for rights and interests to be appropriated, if the owners can |
8 | be found and are sui juris. If the parties fail to agree, the |
9 | person shall tender a surety bond to the owners to secure them |
10 | in the payment of damages. If the owners refuse to accept the |
11 | bond, cannot be found or are not sui juris, and after reasonable |
12 | notice to the owners by advertisement or otherwise, the bond |
13 | shall be presented for approval to the court of common pleas of |
14 | the county in which the tract of land is situated. Upon the |
15 | approval of the bond by the court, the right of the person to |
16 | appropriate in accordance with the provisions of this chapter |
17 | shall be complete. |
18 | (e) Appointment of viewers.--Upon petition of a property |
19 | owner or a person appropriating under this chapter, the court |
20 | shall: |
21 | (1) appoint three disinterested freeholders of the |
22 | county to serve as viewers to assess damages to be paid to |
23 | the property owner for the rights appropriated; |
24 | (2) fix a time for the parties to meet; |
25 | (3) provide notice to the parties; and |
26 | (4) after the viewers have filed their report, fix |
27 | reasonable compensation for the service of the viewers. |
28 | (f) Appeal.--Within 20 days after the filing of a report by |
29 | viewers appointed under subsection (e), a party may appeal and |
30 | proceed to a jury trial as in ordinary cases. |
|
1 | (g) Requirements.--Nothing in this section shall relieve a |
2 | person operating a storage reservoir from the requirements of |
3 | this chapter. |
4 | SUBCHAPTER E |
5 | ENFORCEMENT AND REMEDIES |
6 | Sec. |
7 | 3251. Conferences. |
8 | 3252. Public nuisances. |
9 | 3253. Enforcement orders. |
10 | 3254. Restraining violations. |
11 | 3254.1. Well control emergency response cost recovery. |
12 | 3255. Penalties. |
13 | 3256. Civil penalties. |
14 | 3257. Existing rights and remedies preserved and cumulative |
15 | remedies authorized. |
16 | 3258. Inspection and production of materials, witnesses, |
17 | depositions and rights of entry. |
18 | 3259. Unlawful conduct. |
19 | 3260. Collection of fines and penalties. |
20 | 3261. Third party liability. |
21 | 3262. Inspection reports. |
22 | § 3251. Conferences. |
23 | (a) General rule.--The department or any person having a |
24 | direct interest in a matter subject to this chapter may, at any |
25 | time, request that a conference be held to discuss and attempt |
26 | to resolve by mutual agreement a matter arising under this |
27 | chapter. Unless otherwise provided, conferences shall be held |
28 | within 90 days after a request is received by the department, |
29 | and notice shall be given by the department to all interested |
30 | parties. A representative of the department shall attend the |
|
1 | conference and the department may make recommendations. An |
2 | agreement reached at a conference shall be consistent with this |
3 | chapter and, if approved by the department, it shall be reduced |
4 | to writing and shall be effective, unless reviewed and rejected |
5 | by the department within ten days after the conference. The |
6 | record of an agreement approved by the department shall be kept |
7 | on file by the department and copies shall be furnished to the |
8 | parties. The scheduling of a conference shall have no effect on |
9 | the department's authority to issue orders to compel compliance |
10 | with this chapter. |
11 | (b) Notification.--When a coal operator is to be notified of |
12 | a proceeding under this section, the department simultaneously |
13 | shall send a copy of the notice to the collective bargaining |
14 | representative of employees of the coal operator. |
15 | § 3252. Public nuisances. |
16 | A violation of section 3217 (relating to protection of fresh |
17 | groundwater and casing requirements), 3218 (relating to |
18 | protection of water supplies), 3219 (relating to use of safety |
19 | devices) or 3220 (relating to plugging requirements), or a |
20 | regulation, order, term or condition of a permit relating to any |
21 | of those sections constitutes a public nuisance. |
22 | § 3253. Enforcement orders. |
23 | (a) General rule.--Except as modified by subsections (b), |
24 | (c) and (d), the department may issue orders necessary to aid in |
25 | enforcement of this chapter. An order issued under this chapter |
26 | shall take effect upon notice, unless the order specifies |
27 | otherwise. The power of the department to issue an order under |
28 | this chapter is in addition to any other remedy available to the |
29 | department under this chapter or under any other law. |
30 | (b) Suspension and revocation.-- |
|
1 | (1) The department may suspend or revoke a well permit |
2 | or well registration for any well: |
3 | (i) in continuing violation of any of the following: |
4 | (A) This chapter. |
5 | (B) The act of June 22, 1937 (P.L.1987, No.394), |
6 | known as The Clean Streams Law. |
7 | (C) The act of July 7, 1980 (P.L.380, No.97), |
8 | known as the Solid Waste Management Act. |
9 | (D) Any other statute administered by the |
10 | department; |
11 | and |
12 | (ii) the likely result of a violation is an unsafe |
13 | operation or environmental damage. |
14 | (2) A suspension order of the department shall |
15 | automatically terminate if the violation upon which it is |
16 | based is corrected by the operator to the satisfaction of the |
17 | department in order to bring the well into compliance with |
18 | this chapter. |
19 | (c) Written notice.--Prior to suspension or revocation of a |
20 | well permit or registration, the department shall serve written |
21 | notice on the well operator or its agent, stating specifically |
22 | the statutory provision, regulation or other reason relied upon, |
23 | along with factual circumstances surrounding the alleged |
24 | violation. If the department suspends or revokes the permit or |
25 | registration, the department may order the operator to cap the |
26 | well if the likely result of the violation is an unsafe |
27 | operation or environmental damage. |
28 | (d) Immediate orders.--An order of the department requiring |
29 | immediate cessation of drilling operations shall be effective |
30 | only if authorized by the secretary or a designee. |
|
1 | (e) Grievances.--A person aggrieved by a department order |
2 | issued under this section shall have the right, within 30 days |
3 | of receipt of the notice, to appeal to the Environmental Hearing |
4 | Board. |
5 | § 3254. Restraining violations. |
6 | (a) General rule.--In addition to any other remedy provided |
7 | in this chapter, the department may institute a suit in equity |
8 | in the name of the Commonwealth for an injunction to restrain a |
9 | violation of this chapter or rules, regulations, standards or |
10 | orders adopted or issued under this chapter and to restrain the |
11 | maintenance or threat of a public nuisance. Upon motion of the |
12 | Commonwealth, the court shall issue a prohibitory or mandatory |
13 | preliminary injunction if it finds that the defendant is |
14 | engaging in unlawful conduct, as defined by this chapter, or |
15 | conduct causing immediate and irreparable harm to the public. |
16 | The Commonwealth shall not be required to furnish bond or other |
17 | security in connection with the proceeding. In addition to an |
18 | injunction, the court in equity may level civil penalties as |
19 | specified in section 3256 (relating to civil penalties). |
20 | (b) District attorney.--In addition to other remedies in |
21 | this chapter, upon relation of the district attorney of a county |
22 | affected, or upon relation of the solicitor of a municipality |
23 | affected, an action in equity may be brought in a court of |
24 | competent jurisdiction for an injunction to restrain a violation |
25 | of this chapter or rules and regulations promulgated under this |
26 | chapter or to restrain a public nuisance or detriment to health. |
27 | (c) Concurrent penalties.--Penalties and remedies under this |
28 | chapter shall be deemed concurrent. Existence or exercise of one |
29 | remedy shall not prevent the department from exercising another |
30 | remedy at law or in equity. |
|
1 | (d) Jurisdiction.--Actions under this section may be filed |
2 | in the appropriate court of common pleas or in Commonwealth |
3 | Court, and those courts are hereby granted jurisdiction to hear |
4 | actions under this section. |
5 | § 3254.1. Well control emergency response cost recovery. |
6 | A person liable for a well control emergency is responsible |
7 | for all response costs incurred by the department to respond to |
8 | the well control emergency. In an action before a court of |
9 | competent jurisdiction, the department may recover all its |
10 | response costs, including the cost of regaining control of the |
11 | well, controlling the perimeter of the well site, preparing |
12 | water sprays, establishing trenches or dikes to capture runoff |
13 | fluids and providing the resources and equipment needs for the |
14 | incident. |
15 | § 3255. Penalties. |
16 | (a) General violation.--A person violating a provision of |
17 | this chapter commits a summary offense and, upon conviction, |
18 | shall be sentenced to pay a fine of not more than $1,000 or to |
19 | imprisonment of not more than 90 days, or both. Each day during |
20 | which the violation continues is a separate and distinct |
21 | offense. |
22 | (b) Willful violation.--A person willfully violating a |
23 | provision of this chapter or an order of the department issued |
24 | under this chapter commits a misdemeanor and, upon conviction, |
25 | shall be sentenced to pay a fine of not more than $5,000 or to |
26 | imprisonment of not more than one year, or both. Each day during |
27 | which the violation continues is a separate and distinct |
28 | offense. |
29 | (c) Authority.--The department may institute a prosecution |
30 | against any person or municipality for a violation of this |
|
1 | chapter. |
2 | § 3256. Civil penalties. |
3 | In addition to other remedies available at law or in equity |
4 | for a violation of this chapter, a regulation of the department, |
5 | a departmental order or a permit condition, the department, |
6 | after a hearing, may assess a civil penalty regardless of |
7 | whether the violation was willful. The penalty shall not exceed |
8 | $25,000 plus $1,000 for each day during which the violation |
9 | continues or, in the case of a violation arising from the |
10 | construction, alteration or operation of an unconventional well, |
11 | $75,000 plus $5,000 for each day during which the violation |
12 | continues. In determining the amount, the department shall |
13 | consider willfulness of the violation, damage or injury to |
14 | natural resources of this Commonwealth or their uses, |
15 | endangerment of safety of others, the cost of remedying the |
16 | harm, savings resulting to the violator as a result of the |
17 | violation and any other relevant factor. When the department |
18 | proposes to assess a civil penalty, it shall notify the person |
19 | of the proposed amount of the penalty. The person charged with |
20 | the penalty must, within 30 days of notification, pay the |
21 | proposed penalty in full or file an appeal of the assessment |
22 | with the Environmental Hearing Board. Failure to comply with the |
23 | time period under this section shall result in a waiver of all |
24 | legal rights to contest the violation or the amount of the |
25 | penalty. The civil penalty shall be payable to the Commonwealth |
26 | and collectible in any manner provided at law for collection of |
27 | debts. If a violator neglects or refuses to pay the penalty |
28 | after demand, the amount, together with interest and costs that |
29 | may accrue, shall become a lien in favor of the Commonwealth on |
30 | the real and personal property of the violator, but only after |
|
1 | the lien has been entered and docketed of record by the |
2 | prothonotary of the county where the property is situated. The |
3 | department may transmit to the prothonotaries of the various |
4 | counties certified copies of all liens. It shall be the duty of |
5 | each prothonotary to enter and docket the liens of record in the |
6 | prothonotary's office and index them as judgments are indexed, |
7 | without requiring payment of costs as a condition precedent to |
8 | entry. |
9 | § 3257. Existing rights and remedies preserved and cumulative |
10 | remedies authorized. |
11 | Nothing in this chapter stops the Commonwealth or a district |
12 | attorney from proceeding in a court of law or in equity to abate |
13 | pollution forbidden under this chapter or a nuisance under |
14 | existing law. It is hereby declared to be the purpose of this |
15 | chapter to provide additional and cumulative remedies to control |
16 | activities related to drilling for, or production of, oil and |
17 | gas in this Commonwealth, and nothing contained in this chapter |
18 | abridges or alters rights of action or remedies existing, or |
19 | which existed previously, in equity or under common or statutory |
20 | law, criminal or civil. Neither this chapter, the grant of a |
21 | permit under this chapter nor an act done by virtue of this |
22 | chapter stops the Commonwealth, in exercising rights under |
23 | common or decisional law or in equity, from suppressing a |
24 | nuisance, abating pollution or enforcing common law or statutory |
25 | rights. No court of this Commonwealth with jurisdiction to abate |
26 | public or private nuisances shall be deprived of jurisdiction in |
27 | an action to abate a private or public nuisance instituted by |
28 | any person on grounds that the nuisance constitutes air or water |
29 | pollution. |
30 | § 3258. Inspection and production of materials, witnesses, |
|
1 | depositions and rights of entry. |
2 | (a) General rule.--The department may make inspections, |
3 | conduct tests or sampling or examine books, papers and records |
4 | pertinent to a matter under investigation under this chapter to |
5 | determine compliance with this chapter. For this purpose, the |
6 | duly authorized agents and employees of the department may at |
7 | all reasonable times enter and examine any involved property, |
8 | facility, operation or activity. |
9 | (a.1) Preoperation inspections.--The operator may not |
10 | commence drilling activities until the department has conducted |
11 | an inspection of the unconventional well site after the |
12 | installation of erosion and sediment control measures. The |
13 | department may conduct follow-up inspections of well sites and |
14 | related activities to determine compliance with this chapter. |
15 | (b) Access.--The owner, operator or other person in charge |
16 | of a property, facility, operation or activity under this |
17 | chapter, upon presentation of proper identification and purpose |
18 | either for inspection or to remediate or otherwise respond to a |
19 | well control emergency, by agents or employees of the |
20 | department, shall provide free and unrestricted entry and |
21 | access. Upon refusal, the agent or employee may obtain a search |
22 | warrant or other suitable order authorizing entry and |
23 | inspection, remediation or response. It shall be sufficient to |
24 | justify issuance of a search warrant authorizing examination and |
25 | inspection if: |
26 | (1) there is probable cause to believe that the object |
27 | of the investigation is subject to regulation under this |
28 | chapter; and |
29 | (2) access, examination or inspection is necessary to |
30 | enforce the provisions of this chapter. |
|
1 | (c) Witnesses.--In any part of this Commonwealth, the |
2 | department may subpoena witnesses, administer oaths, examine |
3 | witnesses, take testimony and compel production of books, |
4 | records, maps, plats, papers, documents and other writings |
5 | pertinent to proceedings or investigations conducted by the |
6 | department under this chapter. Upon refusal to obey a subpoena |
7 | by any person and on application of the department, a court may |
8 | enforce a subpoena in contempt proceedings. Fees for serving a |
9 | subpoena shall be the same as those paid to sheriffs for similar |
10 | services. |
11 | (d) Deposition.--The department or a party to a proceeding |
12 | before the department may cause the deposition of a witness who |
13 | resides in or outside of this Commonwealth to be taken in the |
14 | manner prescribed by law for taking depositions in civil |
15 | actions. |
16 | (e) Witness fee.--Witnesses summoned before the department |
17 | shall be paid the same fees as are paid to witnesses in courts |
18 | of record of general jurisdiction. Witnesses whose depositions |
19 | are taken under this chapter, and the officers taking those |
20 | depositions, shall be entitled to the same fees as those paid |
21 | for like services in court. |
22 | (f) Purchasers.--Upon request, a purchaser of oil or gas |
23 | shall provide the department information necessary to determine |
24 | ownership of facilities from which the purchaser obtained oil or |
25 | gas. The information shall be kept confidential for a period of |
26 | five years, and the department may utilize it in enforcement |
27 | proceedings. The department may request information under this |
28 | section only when a well does not comply with section 3211(h) |
29 | (relating to well permits). |
30 | § 3259. Unlawful conduct. |
|
1 | It shall be unlawful for any person to: |
2 | (1) Drill, alter, operate or utilize an oil or gas well |
3 | without a permit or registration from the department as |
4 | required by this chapter or in violation of rules or |
5 | regulations adopted under this chapter, orders of the |
6 | department or a term or condition of a permit issued by the |
7 | department. |
8 | (2) Conduct an activity related to drilling for, or |
9 | production of, oil and gas: |
10 | (i) contrary to this chapter, rules or regulations |
11 | adopted under this chapter, an order of the department or |
12 | a term or condition of a permit issued by the department; |
13 | or |
14 | (ii) in any manner as to create a public nuisance or |
15 | adversely affect public health, safety, welfare or the |
16 | environment. |
17 | (3) Refuse, obstruct, delay or threaten an agent or |
18 | employee of the department acting in the course of lawful |
19 | performance of a duty under this chapter, including, but not |
20 | limited to, entry and inspection. |
21 | (4) Attempt to obtain a permit or identify a well as an |
22 | orphan well by misrepresentation or failure to disclose all |
23 | relevant facts. |
24 | (5) Cause abandonment of a well by removal of casing or |
25 | equipment necessary for production without plugging the well |
26 | in the manner prescribed under section 3220 (relating to |
27 | plugging requirements), except that the owner or operator of |
28 | a well may temporarily remove casing or equipment necessary |
29 | for production, but only if it is part of the normal course |
30 | of production activities. |
|
1 | § 3260. Collection of fines and penalties. |
2 | Fines and penalties shall be collectible in a manner provided |
3 | by law for collection of debts. If a person liable to pay a |
4 | penalty neglects or refuses to pay after demand, the amount, |
5 | together with interest and costs that may accrue, shall be a |
6 | judgment in favor of the Commonwealth on the person's property, |
7 | but only after the judgment has been entered and docketed of |
8 | record by the prothonotary of the county where the property is |
9 | situated. The department may transmit to prothonotaries of the |
10 | various counties certified copies of all judgments, and it shall |
11 | be the duty of each prothonotary to enter and docket them of |
12 | record in the prothonotary's office and index them as judgments |
13 | are indexed, without requiring payment of costs as a condition |
14 | precedent to entry. |
15 | § 3261. Third party liability. |
16 | If a person other than a well operator renders a service or |
17 | product to a well or well site, that person is liable with the |
18 | well owner or operator for violations of this chapter arising |
19 | out of and caused by the person's actions at the well or well |
20 | site, in accordance with State law. |
21 | § 3262. Inspection reports. |
22 | The department shall post inspection reports on its publicly |
23 | accessible Internet website. The inspection reports shall |
24 | include: |
25 | (1) The nature and description of violations. |
26 | (2) The operator's written response to the violation, if |
27 | available. |
28 | (3) The status of the violation. |
29 | (4) The remedial steps taken by the operator or the |
30 | department to address the violation. |
|
1 | SUBCHAPTER F |
2 | MISCELLANEOUS PROVISIONS |
3 | Sec. |
4 | 3271. Well plugging funds. |
5 | 3272. (Reserved). |
6 | 3273. Effect on department authority. |
7 | 3273.1. Relationship to solid waste and surface mining. |
8 | 3274. Regulations. |
9 | § 3271. Well plugging funds. |
10 | (a) Appropriation.--Fines, civil penalties and permit and |
11 | registration fees collected under this chapter are appropriated |
12 | to the department to carry out the purposes of this chapter. |
13 | (b) Surcharge.--To aid in indemnifying the Commonwealth for |
14 | the cost of plugging abandoned wells, a $50 surcharge is added |
15 | to the permit fee established by the department under section |
16 | 3211 (relating to well permits) for new wells. Money collected |
17 | as a result of the surcharge shall be paid into a restricted |
18 | revenue account in the State Treasury to be known as the |
19 | Abandoned Well Plugging Fund and expended by the department to |
20 | plug abandoned wells threatening the health and safety of |
21 | persons or property or pollution of waters of this Commonwealth. |
22 | (c) Orphan Well Plugging Fund.--The following shall apply: |
23 | (1) A restricted revenue account to be known as the |
24 | Orphan Well Plugging Fund is created. A $100 surcharge for |
25 | wells to be drilled for oil production and a $200 surcharge |
26 | for wells to be drilled for gas production are added to the |
27 | permit fee established by the department under section 3211 |
28 | for new wells. The surcharges shall be placed in the Orphan |
29 | Well Plugging Fund and expended by the department to plug |
30 | orphan wells. If an operator rehabilitates a well abandoned |
|
1 | by another operator or an orphan well, the permit fee and the |
2 | surcharge for the well shall be waived. |
3 | (2) The department shall study its experience in |
4 | implementing this section and shall report its findings to |
5 | the Governor and the General Assembly by August 1, 1992. The |
6 | report shall contain information relating to the balance of |
7 | the fund, number of wells plugged, number of identified wells |
8 | eligible for plugging and recommendations as to alternative |
9 | funding mechanisms. |
10 | (3) Expenditures by the department for plugging orphan |
11 | wells are limited to fees collected under this chapter. No |
12 | money from the General Fund shall be expended for this |
13 | purpose. |
14 | § 3272. (Reserved). |
15 | § 3273. Effect on department authority. |
16 | This chapter does not affect, limit or impair any right or |
17 | authority of the department under the act of June 22, 1937 |
18 | (P.L.1987, No.394), known as The Clean Streams Law; the act of |
19 | January 8, 1960 (1959 P.L.2119, No.787), known as the Air |
20 | Pollution Control Act; the act of November 26, 1978 (P.L.1375, |
21 | No.325), known as the Dam Safety and Encroachments Act; or the |
22 | act of July 7, 1980 (P.L.380, No.97), known as the Solid Waste |
23 | Management Act. |
24 | § 3273.1. Relationship to solid waste and surface mining. |
25 | (a) General rule.--The obligation to obtain a permit and |
26 | post a bond under Articles III and V of the act of July 7, 1980 |
27 | (P.L.380, No.97), known as the Solid Waste Management Act, and |
28 | to provide public notice under section 1905-A(b)(1)(v) of the |
29 | act of April 9, 1929 (P.L.177, No.175), known as The |
30 | Administrative Code of 1929, for any pit, impoundment, method or |
|
1 | facility employed for the disposal, processing or storage of |
2 | residual wastes generated by the drilling of an oil or gas well |
3 | or from the production of wells which is located on the well |
4 | site, shall be considered to have been satisfied if the owner or |
5 | operator of the well meets the following conditions: |
6 | (1) the well is permitted under the requirements of |
7 | section 3211 (relating to well permits) or registered under |
8 | section 3213 (relating to well registration and |
9 | identification); |
10 | (2) the owner or operator has satisfied the financial |
11 | security requirements of section 3225 (relating to bonding) |
12 | by obtaining a surety or collateral bond for the well and |
13 | well site; and |
14 | (3) the owner or operator maintains compliance with this |
15 | chapter and applicable regulations of the Environmental |
16 | Quality Board. |
17 | (b) Noncoal surface mining.--Obligations under the act of |
18 | December 19, 1984 (P.L.1093, No.219), known as the Noncoal |
19 | Surface Mining Conservation and Reclamation Act, or a |
20 | regulation promulgated under the Noncoal Surface Mining |
21 | Conservation and Reclamation Act, for any borrow area where |
22 | minerals are extracted solely for the purpose of oil and gas |
23 | well development, including access road construction, shall be |
24 | considered to have been satisfied if the owner or operator of |
25 | the well meets the conditions imposed under subsection (a)(1) |
26 | and (2) and maintains compliance with this chapter and |
27 | applicable regulations of the Environmental Quality Board. |
28 | (c) Solid Waste Management Act.--This section does not |
29 | diminish or otherwise affect duties or obligations of an owner |
30 | or operator under the Solid Waste Management Act. This section |
|
1 | does not apply to waste classified as hazardous waste under the |
2 | Solid Waste Management Act or the Resource Conservation and |
3 | Recovery Act of 1976 (Public Law 94-580, 90 Stat. 2795, 42 |
4 | U.S.C. § 6901 et seq.). |
5 | (d) Definition.--As used in this section, the term "well |
6 | site" means areas occupied by all equipment or facilities |
7 | necessary for or incidental to drilling, production or plugging |
8 | a well. |
9 | § 3274. Regulations. |
10 | The Environmental Quality Board shall promulgate regulations |
11 | to implement this chapter. |
12 | CHAPTER 33 |
13 | LOCAL ORDINANCES RELATING TO |
14 | OIL AND GAS OPERATIONS |
15 | Sec. |
16 | 3301. Definitions. |
17 | 3302. Oil and gas operations regulated pursuant to Chapter 32. |
18 | 3303. Oil and gas operations regulated by environmental acts. |
19 | 3304. Uniformity of local ordinances. |
20 | 3305. Commission. |
21 | 3306. Civil actions. |
22 | 3307. Attorney fees and costs. |
23 | 3308. Ineligibility. |
24 | 3309. Applicability. |
25 | § 3301. Definitions. |
26 | The following words and phrases when used in this chapter |
27 | shall have the meanings given to them in this section unless the |
28 | context clearly indicates otherwise: |
29 | "Building." An occupied structure with walls and a roof |
30 | within which individuals live or customarily work. |
|
1 | "Commission." The Pennsylvania Public Utility Commission. |
2 | "Environmental acts." All statutes enacted by the |
3 | Commonwealth relating to the protection of the environment or |
4 | the protection of public health, safety and welfare, that are |
5 | administered and enforced by the department or by another |
6 | Commonwealth agency, including an independent agency, and all |
7 | Federal statutes relating to the protection of the environment, |
8 | to the extent those statutes regulate oil and gas operations. |
9 | "Local government." A county, city, borough, incorporated |
10 | town or township of this Commonwealth. |
11 | "Local ordinance." An ordinance or other enactment, |
12 | including a provision of a home rule charter, adopted by a local |
13 | government that regulates oil and gas operations. |
14 | "MPC." The act of July 31, 1968 (P.L.805, No.247), known as |
15 | the Pennsylvania Municipalities Planning Code. |
16 | "Oil and gas operations." The term includes the following: |
17 | (1) well location assessment, including seismic |
18 | operations, well site preparation, construction, drilling, |
19 | hydraulic fracturing and site restoration associated with an |
20 | oil or gas well of any depth; |
21 | (2) water and other fluid storage or impoundment areas |
22 | used exclusively for oil and gas operations; |
23 | (3) construction, installation, use, maintenance and |
24 | repair of: |
25 | (i) oil and gas pipelines; |
26 | (ii) natural gas compressor stations; and |
27 | (iii) natural gas processing plants or facilities |
28 | performing equivalent functions; and |
29 | (4) construction, installation, use, maintenance and |
30 | repair of all equipment directly associated with activities |
|
1 | specified in paragraphs (1), (2) and (3), to the extent that: |
2 | (i) the equipment is necessarily located at or |
3 | immediately adjacent to a well site, impoundment area, |
4 | oil and gas pipeline, natural gas compressor station or |
5 | natural gas processing plant; and |
6 | (ii) the activities are authorized and permitted |
7 | under the authority of a Federal or Commonwealth agency. |
8 | "Permitted use." A use which, upon submission of written |
9 | notice to and receipt of a permit issued by a zoning officer or |
10 | equivalent official, is authorized to be conducted without |
11 | restrictions other than those set forth in section 3304 |
12 | (relating to uniformity of local ordinances). |
13 | § 3302. Oil and gas operations regulated pursuant to Chapter |
14 | 32. |
15 | Except with respect to local ordinances adopted pursuant to |
16 | the MPC and the act of October 4, 1978 (P.L.851, No.166), known |
17 | as the Flood Plain Management Act, all local ordinances |
18 | purporting to regulate oil and gas operations regulated by |
19 | Chapter 32 (relating to development) are hereby superseded. No |
20 | local ordinance adopted pursuant to the MPC or the Flood Plain |
21 | Management Act shall contain provisions which impose conditions, |
22 | requirements or limitations on the same features of oil and gas |
23 | operations regulated by Chapter 32 or that accomplish the same |
24 | purposes as set forth in Chapter 32. The Commonwealth, by this |
25 | section, preempts and supersedes the regulation of oil and gas |
26 | operations as provided in this chapter. |
27 | § 3303. Oil and gas operations regulated by environmental acts. |
28 | Notwithstanding any other law to the contrary, environmental |
29 | acts are of Statewide concern and, to the extent that they |
30 | regulate oil and gas operations, occupy the entire field of |
|
1 | regulation, to the exclusion of all local ordinances. The |
2 | Commonwealth by this section, preempts and supersedes the local |
3 | regulation of oil and gas operations regulated by the |
4 | environmental acts, as provided in this chapter. |
5 | § 3304. Uniformity of local ordinances. |
6 | (a) General rule.--In addition to the restrictions contained |
7 | in sections 3302 (relating to oil and gas operations regulated |
8 | pursuant to Chapter 32) and 3303 (relating to oil and gas |
9 | operations regulated by environmental acts), all local |
10 | ordinances regulating oil and gas operations shall allow for the |
11 | reasonable development of oil and gas resources. |
12 | (b) Reasonable development of oil and gas resources.--In |
13 | order to allow the for the reasonable development of oil and gas |
14 | resources, a local ordinance: |
15 | (1) Shall allow well and pipeline location assessment |
16 | operations, including seismic operations and related |
17 | activities conducted in accordance with all applicable |
18 | Federal and State laws and regulations relating to the |
19 | storage and use of explosives throughout every local |
20 | government. |
21 | (2) May not impose conditions, requirements or |
22 | limitations on the construction of oil and gas operations |
23 | that are more stringent than conditions, requirements or |
24 | limitations imposed on construction activities for other |
25 | industrial uses within the geographic boundaries of the local |
26 | government. |
27 | (3) May not impose conditions, requirements or |
28 | limitations on the heights of structures, screening and |
29 | fencing, lighting or noise relating to permanent oil and gas |
30 | operations that are more stringent than the conditions, |
|
1 | requirements or limitations imposed on other industrial uses |
2 | or other land development within the particular zoning |
3 | district where the oil and gas operations are situated within |
4 | the local government. |
5 | (4) Shall have a review period for permitted uses that |
6 | does not exceed 30 days for complete submissions or that does |
7 | not exceed 120 days for conditional uses. |
8 | (5) Shall authorize oil and gas operations, other than |
9 | activities at impoundment areas, compressor stations and |
10 | processing plants, as a permitted use in all zoning |
11 | districts. |
12 | (5.1) Notwithstanding section 3215 (relating to well |
13 | location restrictions), may prohibit, or permit only as a |
14 | conditional use, wells or well sites otherwise permitted |
15 | under paragraph (5) within a residential district if the |
16 | well site cannot be placed so that the wellhead is at least |
17 | 500 feet from any existing building. In a residential |
18 | district, all of the following apply: |
19 | (i) A well site may not be located so that the outer |
20 | edge of the well pad is closer than 300 feet from an |
21 | existing building. |
22 | (ii) Except as set forth in paragraph (5) and this |
23 | paragraph, oil and gas operations, other than the |
24 | placement, use and repair of oil and gas pipelines, water |
25 | pipelines, access roads or security facilities, may not |
26 | take place within 300 feet of an existing building. |
27 | (6) Shall authorize impoundment areas used for oil and |
28 | gas operations as a permitted use in all zoning districts, |
29 | provided that the edge of any impoundment area shall not be |
30 | located closer than 300 feet from an existing building. |
|
1 | (7) Shall authorize natural gas compressor stations as a |
2 | permitted use in agricultural and industrial zoning districts |
3 | and as a conditional use in all other zoning districts, if |
4 | the natural gas compressor building meets the following |
5 | standards: |
6 | (i) is located 750 feet or more from the nearest |
7 | existing building or 200 feet from the nearest lot line, |
8 | whichever is greater, unless waived by the owner of the |
9 | building or adjoining lot; and |
10 | (ii) the noise level does not exceed a noise |
11 | standard of 60dbA at the nearest property line or the |
12 | applicable standard imposed by Federal law, whichever is |
13 | less. |
14 | (8) Shall authorize a natural gas processing plant as a |
15 | permitted use in an industrial zoning district and as |
16 | conditional uses in agricultural zoning districts if all of |
17 | the following apply: |
18 | (i) The natural gas processing plant building is |
19 | located at the greater of at least 750 feet from the |
20 | nearest existing building or at least 200 feet from the |
21 | nearest lot line unless waived by the owner of the |
22 | building or adjoining lot. |
23 | (ii) The noise level of the natural gas processing |
24 | plant building does not exceed a noise standard of 60dbA |
25 | at the nearest property line or the applicable standard |
26 | imposed by Federal law, whichever is less. |
27 | (9) Shall impose restrictions on vehicular access routes |
28 | for overweight vehicles only as authorized under 75 Pa.C.S. |
29 | (relating to vehicles) or the MPC. |
30 | (10) May not impose limits or conditions on subterranean |
|
1 | operations or hours of operation of compressor stations and |
2 | processing plants or hours of operation for the drilling of |
3 | oil and gas wells or the assembly and disassembly of drilling |
4 | rigs. |
5 | (11) May not increase setback distances set forth in |
6 | Chapter 32 (relating to development) or this chapter. A local |
7 | ordinance may impose setback distances that are not regulated |
8 | by or set forth in Chapter 32 or this chapter if the setbacks |
9 | are no more stringent than those for other industrial uses |
10 | within the geographic boundaries of the local government. |
11 | § 3305. Commission. |
12 | (a) Advisory opinions to municipalities.-- |
13 | (1) A municipality may, prior to the enactment of a |
14 | local ordinance, in writing, request the commission to review |
15 | a proposed local ordinance to issue an opinion on whether it |
16 | violates the MPC, this chapter or Chapter 32 (relating to |
17 | development). |
18 | (2) Within 120 days of receiving a request under |
19 | paragraph (1), the commission shall, in writing, advise the |
20 | municipality whether or not the local ordinance violates the |
21 | MPC, this chapter or Chapter 32. |
22 | (3) An opinion under this subsection shall be advisory |
23 | in nature and not subject to appeal. |
24 | (b) Orders.-- |
25 | (1) An owner or operator of an oil or gas operation, or |
26 | a person residing within the geographic boundaries of a local |
27 | government, who is aggrieved by the enactment or enforcement |
28 | of a local ordinance may request the commission to review the |
29 | local ordinance of that local government to determine whether |
30 | it violates the MPC, this chapter or Chapter 32. |
|
1 | (2) Participation in the review by the commission shall |
2 | be limited to parties specified in paragraph (1) and the |
3 | municipality which enacted the local ordinance. |
4 | (3) Within 120 days of receiving a request under this |
5 | subsection, the commission shall issue an order to determine |
6 | whether the local ordinance violates the MPC, this chapter or |
7 | Chapter 32. |
8 | (4) An order under this subsection shall be subject to |
9 | de novo review by the Commonwealth Court. A petition for |
10 | review must be filed within 30 days of the date of service of |
11 | the commission's order. The order of the commission shall be |
12 | made part of the record before the court. |
13 | (c) Exemptions.--An opinion under subsection (a) and an |
14 | order under subsection (b) shall not be subject to: |
15 | (1) 2 Pa.C.S. Ch. 5 Subch. A (relating to practice and |
16 | procedure of Commonwealth agencies); |
17 | (2) 65 Pa.C.S. Ch. 7 (relating to open meetings); or |
18 | (3) 66 Pa.C.S. Ch. 3 Subch. B (relating to |
19 | investigations and hearings). |
20 | (d) Authority.--The commission has the following powers to |
21 | carry out this chapter: |
22 | (1) Employ individuals. |
23 | (2) Issue orders. |
24 | (3) Promulgate regulations. |
25 | (4) Until January 1, 2013, promulgate temporary |
26 | regulations. Regulations under this paragraph: |
27 | (i) shall expire no later than two years following |
28 | the effective date of this section; and |
29 | (ii) are exempt from: |
30 | (A) sections 201, 202 and 203 of the act of July |
|
1 | 31, 1968 (P.L.769, No.240), referred to as the |
2 | Commonwealth Documents Law; and |
3 | (B) the act of June 25, 1982 (P.L.633, No.181), |
4 | known as the Regulatory Review Act. |
5 | § 3306. Civil actions. |
6 | The following shall apply: |
7 | (1) Notwithstanding any provision of 42 Pa.C.S. Ch. 85 |
8 | Subch. C (relating to actions against local parties), any |
9 | person who is aggrieved by the enactment or enforcement of a |
10 | local ordinance that violates the MPC, this chapter or |
11 | Chapter 32 may bring an action in Commonwealth Court to |
12 | invalidate the ordinance or enjoin its enforcement. |
13 | (2) An aggrieved person may proceed under this section |
14 | without first obtaining review of the ordinance by the |
15 | commission. |
16 | (3) In an action relating to the enactment or |
17 | enforcement of a local ordinance, a determination of the |
18 | commission made under section 3305(b) (relating to |
19 | commission) shall become part of the record before the court. |
20 | § 3307. Attorney fees and costs. |
21 | In an action brought under section 3306 (relating to civil |
22 | actions), the court may do any of the following: |
23 | (1) If the court determines that the local government |
24 | enacted or enforced a local ordinance with willful or |
25 | reckless disregard of the MPC, this chapter or Chapter 32 |
26 | (relating to development), it may order the local government |
27 | to pay the plaintiff reasonable attorney fees and other |
28 | reasonable costs incurred by the plaintiff in connection with |
29 | the action. |
30 | (2) If the court determines that the action brought by |
|
1 | the plaintiff was frivolous or was brought without |
2 | substantial justification in claiming that the local |
3 | ordinance in question was contrary to the MPC, this chapter |
4 | or Chapter 32, it may order the plaintiff to pay the local |
5 | government reasonable attorney fees and other reasonable |
6 | costs incurred by the local government in defending the |
7 | action. |
8 | § 3308. Ineligibility. |
9 | If the commission, the Commonwealth Court or the Supreme |
10 | Court issues an order that a local ordinance violates the MPC, |
11 | this chapter or Chapter 32 (relating to development), the |
12 | municipality enacting or enforcing the local ordinance shall be |
13 | immediately ineligible to receive any funds collected under |
14 | Chapter 23 (relating to unconventional gas well fee). The local |
15 | government shall remain ineligible to receive funds under |
16 | Chapter 23 until the local government amends or repeals its |
17 | ordinance in accordance with this chapter or the order or |
18 | determination that the local ordinance is unlawful is reversed |
19 | on appeal. |
20 | § 3309. Applicability. |
21 | (a) Ordinances.--This chapter shall apply to the enforcement |
22 | of local ordinances existing on the effective date of this |
23 | chapter and to the enactment or enforcement of a local ordinance |
24 | enacted on or after the effective date of this chapter. |
25 | (b) Local governments.--A local government that has enacted |
26 | a local ordinance relating to oil and gas operations prior to |
27 | the effective date of this chapter shall have 120 days from the |
28 | effective date of this chapter to review and amend an ordinance |
29 | in order to comply with this chapter. |
30 | CHAPTER 35 |
|
1 | RESPONSIBILITY FOR FEE |
2 | Sec. |
3 | 3501. Declaration of policy. |
4 | 3502. Prohibition. |
5 | 3503. Existing agreements. |
6 | 3504. Future agreements. |
7 | § 3501. Declaration of policy. |
8 | The General Assembly finds and declares as follows: |
9 | (1) The enactment of this chapter is an exercise of the |
10 | authority of the Commonwealth to safeguard the vital |
11 | interests of its citizens. |
12 | (2) This chapter is intended to advance the significant |
13 | and legitimate public purpose of ensuring that entities |
14 | responsible for the impacts of unconventional oil and gas |
15 | well development are solely responsible for payment of impact |
16 | fees. |
17 | § 3502. Prohibition. |
18 | A producer may not make the fee authorized under Chapter 23 |
19 | (relating to unconditional gas well fee) an obligation, |
20 | indebtedness or liability of a landowner, leaseholder or other |
21 | person in possession of real property, upon which the removal or |
22 | extraction occurs. |
23 | § 3503. Existing agreements. |
24 | A provision of an agreement in existence prior to the |
25 | effective date of this section which violates section 3502 |
26 | (relating to prohibition) is declared to be illegal and contrary |
27 | to public policy and shall be null and void. |
28 | § 3504. Future agreements. |
29 | On or after the effective date of this section, a provision |
30 | of an agreement in violation of section 3502 (relating to |
|
1 | prohibition) is declared to be illegal and contrary to public |
2 | policy and shall be null and void. |
3 | Section 2. For fiscal year 2011-2012, $250,000 is |
4 | appropriated from the General Fund to the Pennsylvania Public |
5 | Utility Commission for costs associated with implementation of |
6 | this act. |
7 | Section 3. Repeals are as follows: |
8 | (1) The General Assembly declares that the repeal under |
9 | paragraph (2) is necessary to effectuate the addition of 58 |
10 | Pa.C.S. Ch. 32. |
11 | (2) The act of December 19, 1984 (P.L.1140, No.223), |
12 | known as the Oil and Gas Act, is repealed. |
13 | Section 4. The addition of 58 Pa.C.S. Ch. 32 and 58 Pa.C.S. |
14 | § 3302 is a continuation of the act of December 19, 1984 |
15 | (P.L.1140, No.223), known as the Oil and Gas Act. The following |
16 | apply: |
17 | (1) Except as otherwise provided in 58 Pa.C.S. Ch. 32 or |
18 | 33, all activities initiated under the Oil and Gas Act shall |
19 | continue and remain in full force and effect and may be |
20 | completed under 58 Pa.C.S. Chs. 32 and 33. Orders, |
21 | regulations, rules and decisions which were made under the |
22 | Oil and Gas Act and which are in effect on the effective date |
23 | of section 3(2) of this act shall remain in full force and |
24 | effect until revoked, vacated or modified under 58 Pa.C.S. |
25 | Ch. 32 or 33. Except as provided in 58 Pa.C.S. Ch. 35, |
26 | contracts, obligations and collective bargaining agreements |
27 | entered into under the Oil and Gas Act are not affected nor |
28 | impaired by the repeal of the Oil and Gas Act. |
29 | (2) Except as set forth in paragraph (3), any difference |
30 | in language between 58 Pa.C.S. Ch. 32 and the Oil and Gas Act |
|
1 | is intended only to conform to the style of the Pennsylvania |
2 | Consolidated Statutes and is not intended to change or affect |
3 | the legislative intent, judicial construction or |
4 | administration and implementation of the Oil and Gas Act. |
5 | (3) Paragraph (2) does not apply to the addition of the |
6 | following provisions of 58 Pa.C.S.: |
7 | (i) Section 3203. |
8 | (ii) Section 3211. |
9 | (iii) Section 3212.1. |
10 | (iv) Section 3215. |
11 | (v) Section 3216. |
12 | (vi) Section 3218. |
13 | (vii) Section 3218.1. |
14 | (viii) Section 3218.2. |
15 | (ix) Section 3218.3. |
16 | (x) Section 3218.4. |
17 | (xi) Section 3218.5. |
18 | (xii) Section 3219.1. |
19 | (xiii) Section 3222. |
20 | (xiv) Section 3222.1. |
21 | (xv) Section 3225. |
22 | (xvi) Section 3227. |
23 | (xvii) Section 3252. |
24 | (xviii) Section 3253. |
25 | (xix) Section 3254.1. |
26 | (xx) Section 3255. |
27 | (xxi) Section 3256. |
28 | (xxii) Section 3258. |
29 | (xxiii) Section 3261. |
30 | (xxiv) Section 3262. |
|
1 | (4) Any difference in language between 58 Pa.C.S. § 3302 |
2 | and section 602 of the Oil and Gas Act is intended only to |
3 | conform to the style of the Pennsylvania Consolidated |
4 | Statutes and is not intended to change or affect the |
5 | legislative intent, judicial construction or administration |
6 | and implementation of section 602 of the Oil and Gas Act. |
7 | Section 5. The addition of 58 Pa.C.S. Ch. 23 shall apply to |
8 | all oil and gas deposits and oil and gas development activities |
9 | and operations subject to the jurisdiction of the Commonwealth. |
10 | With respect to oil and gas deposits on national forest lands |
11 | identified under section 17(o) of the Mineral Leasing Act (106 |
12 | Stat. 3108, 30 U.S.C. § 226(o)), the application of regulations |
13 | and statutes adopted by the Commonwealth shall be the exclusive |
14 | method and means by which any requirements may be imposed on any |
15 | feature, aspect or process of oil and gas operations pertaining |
16 | to the development of the deposits. |
17 | Section 6. It is not the intent of the General Assembly to |
18 | change, repeal or otherwise affect any of the provisions of the |
19 | act of December 18, 1984 (P.L.1069, No.214), known as the Coal |
20 | and Gas Resource Coordination Act, or to change, repeal or |
21 | otherwise affect any of the provisions of the act of January 26, |
22 | 2011 (P.L.7, No.2), entitled "An act amending the act of |
23 | December 18, 1984 (P.L.1069, No.214), entitled 'An act requiring |
24 | coordination of coal mine and gas well operators; authorizing |
25 | Department of Environmental Resources enforcement powers; and |
26 | providing penalties,' further providing for definitions, for |
27 | permits, for permit application, for minimum distance between |
28 | gas wells, for well class designation and for coordination of |
29 | gas well drilling through active coal mines; providing for a |
30 | pillar support study; and further providing for plugging gas |
|
1 | wells penetrating workable coal seams, for penalties and for |
2 | validity of other laws," which amended the Coal and Gas Resource |
3 | Coordination Act. |
4 | Section 7. Within 90 days of the effective date of this |
5 | section, the Department of Transportation shall issue a |
6 | statement of policy, effective upon publication in the |
7 | Pennsylvania Bulletin, adopting an appropriate methodology to |
8 | provide letters of local determination that identify particular |
9 | vehicles, routes or uses as local in nature. The Department of |
10 | Transportation may determine that hauling related to |
11 | unconventional oil and gas development is excluded from local |
12 | traffic status based on its disproportionate and qualitatively |
13 | different impact upon highways and bridges. The methodology |
14 | shall allow for exemptions from 67 Pa. Code Ch. 189 (relating to |
15 | hauling in excess of posted weight limit) related to at-risk |
16 | industry sectors in this Commonwealth that have experienced a |
17 | 20% or more decline in Statewide employment since 2002 or that |
18 | demonstrate other evidence of economic decline as determined by |
19 | the department in consultation with the Department of Labor and |
20 | Industry. The exemptions and related requirements shall remain |
21 | in existence until December 31, 2015. |
22 | Section 8. The Energy Executive of the Governor shall |
23 | consult with the Department of Environmental Protection, the |
24 | Pennsylvania Public Utility Commission, State legislators, local |
25 | government organizations, natural gas industry representatives, |
26 | conservationists and other affected entities on the issue of |
27 | pipeline placement for natural gas gathering lines in this |
28 | Commonwealth. The Energy Executive of the Governor shall submit |
29 | a report summarizing pipeline placement for natural gas |
30 | gathering lines and make his recommendations to the General |
|
1 | Assembly within one year of the effective date of this section. |
2 | Section 9. This act shall take effect as follows: |
3 | (1) The following provisions shall take effect |
4 | immediately: |
5 | (i) The addition of 58 Pa.C.S. Ch. 23. |
6 | (ii) Section 6 of this act. |
7 | (iii) Section 7 of this act. |
8 | (iv) This section. |
9 | (2) The remainder of this act shall take effect in 60 |
10 | days. |
|