PRINTER'S NO. 201

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 181 Session of 1977


        INTRODUCED BY MESSRS. J. L. WRIGHT, BURNS AND CESSAR,
           FEBRUARY 9, 1977

        REFERRED TO COMMITTEE ON MINES AND ENERGY MANAGEMENT,
           FEBRUARY 9, 1977

                                     AN ACT

     1  Providing for the conservation of methane gas; declaring methane
     2     gas to be the property of the Commonwealth; establishing a
     3     Methane Gas Commission; providing for licenses and regulating
     4     the taking of methane; providing penalties and making an
     5     appropriation.

     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8  Section 1.  Short title.
     9     This act shall be known and may be cited as the "Methane Gas
    10  Act."
    11  Section 2.  Legislative findings.
    12     The General Assembly of the Commonwealth of Pennsylvania
    13  hereby finds that certain confusions exist as to the ownership
    14  of methane when found in the Commonwealth, particularly in,
    15  around, and near coal fields. Therefore, the General Assembly
    16  finds that methane is a usable, commercially viable, natural
    17  energy resource of the Commonwealth and that the taking of
    18  methane should be promoted in commercial quantities for the
    19  benefit of the citizens of Pennsylvania.

     1  Section 3.  Definitions.
     2     The following words and phrases when used in this act shall
     3  have, unless the context clearly indicates otherwise, the
     4  meanings given to them in this section:
     5     "Commission."  The Methane Commission created by this act.
     6     "Methane."  A hydrocarbon gas (CH 4) frequently encountered
     7  in coal mines; it is inflammable and when it is diffused through
     8  the air in portions of 5% to 15%, the mixture in the presence of
     9  a flame or hot spark will explode.
    10  Section 4.  Methane ownership.
    11     All methane under the surface of land in this Commonwealth is
    12  hereby declared to be and is the property of the Commonwealth.
    13  Section 5.  Commission established.
    14     There is hereby established a commission to be known as the
    15  Methane Gas Commission which shall consist of seven members
    16  appointed by the Governor and serving at the pleasure of the
    17  Governor. Not more than five members of the commission shall be
    18  identified with the petrochemical or coal producing capacity as
    19  either management or labor, and at least two members of the
    20  commission shall be members of the general public and represent
    21  the consumer's interest.
    22     The members shall receive a per diem allowance as established
    23  by the Executive Board and such reimbursement of expenses
    24  actually incurred.
    25     For administrative purposes only, the commission shall be
    26  established in the Department of Environmental Resources.
    27  Section 6.  Powers and duties of commission.
    28     The commission shall promulgate rules and regulations for the
    29  production of methane, and to regulate the taking of methane
    30  from any or all sources of supply within the State, so as to
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     1  prevent waste and protect the interests of the public. Such
     2  rules and regulations shall include, but not be limited to:
     3         (1)  the setting of the license fee required by this act;
     4         (2)  providing procedures for the safe and convenient
     5     method of taking methane from coal mines with due regard to
     6     all safety procedures, Federal, State or local, which may be
     7     in effect from time to time;
     8         (3)  providing procedures for the safe and convenient
     9     method of taking methane from coal mines with due regard to
    10     any contractural provisions which may be in effect between
    11     coal operators and lessors and coal operators and labor
    12     unions;
    13         (4)  aiding producers of methane to arrange the necessary
    14     details for the efficient, safe and commercially viable
    15     distribution of such methane as the producer may achieve; and
    16         (5)  such other rules and regulations as are necessary to
    17     implement this act.
    18  Section 7.  Licenses required.
    19     A license is required by any person from the Methane
    20  Commission before a person may capture, disburse or otherwise
    21  deal with methane. Such licenses shall be evidence that the
    22  licensee is entitled to sole possession of the methane he may
    23  find in an area so described in the license and such license
    24  shall be evidence of all his right title and interest in said
    25  methane as if he were the agent of the Commonwealth.
    26  Section 8.  Conservation of methane.
    27     Whenever methane in commercial quantities, or a methane
    28  bearing stratum, known to contain methane in such quantity, is
    29  encountered in any coal mine in this Commonwealth, such methane
    30  shall be confined to its original stratum until such time as the
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     1  same can be produced and utilized without waste, and all such
     2  strata shall be adequately protected from infiltrating waters.
     3  Any unrestricted flow of methane in excess of one-half million
     4  cubic feet per 24 hours shall be considered a commercial
     5  quantity thereof; provided, that if in the opinion of the
     6  Methane Commission methane of a lesser quantity shall be of
     7  commercial value, the commission shall have authority to require
     8  the conservation of said gas in accordance with the provisions
     9  of the act.
    10  Section 9.  Waste defined and prohibited.
    11     (a)  The term waste, as used herein in addition to its
    12  ordinary meaning, shall include escape of methane in commercial
    13  quantities into the open air, the intentional drowning with
    14  water of a methane stratum capable of producing methane in
    15  commercial quantities, underground waste, the permitting of any
    16  methane well to burn wastefully and the wasteful utilization of
    17  such methane.
    18     (b)  The production of methane in this Commonwealth, in such
    19  manner, and under such conditions as to constitute waste, shall
    20  be unlawful and be punishable as a misdemeanor of the first
    21  degree.
    22  Section 10.  Misappropriation of methane; criminal
    23               responsibility.
    24     Any person who takes methane, or aids or abets in the taking
    25  of methane, except as herein provided shall be guilty of a
    26  misdemeanor of the first degree.
    27  Section 11.  Commission appropriation.
    28     The sum of $100,000 or as much as may be necessary is hereby
    29  appropriated to the Methane Gas Commission for the fiscal year
    30  1977 to 1978 to implement the provisions of this act.
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     1  Section 12.  Effective date.
     2     This act shall take effect in 60 days.



















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