PRINTER'S NO. 2843
No. 2100 Session of 1984
INTRODUCED BY SWEET, GEIST, ITKIN, DALEY, HERMAN, JAROLIN,
TRELLO AND E. Z. TAYLOR, APRIL 30, 1984
REFERRED TO COMMITTEE ON MINES AND ENERGY MANAGEMENT,
APRIL 30, 1984
AN ACT
1 Requiring coordination of coal mine and gas well operators;
2 authorizing Department of Environmental Resources enforcement
3 powers; and providing penalties.
4 TABLE OF CONTENTS
5 Section 1. Short title.
6 Section 2. Definitions.
7 Section 3. Applicability; exclusions.
8 Section 4. Powers and duties of department.
9 Section 5. Permits.
10 Section 6. Permit application.
11 Section 7. Minimum distance between gas wells.
12 Section 8. Voluntary agreements.
13 Section 9. Validity of voluntary agreements.
14 Section 10. Modification.
15 Section 11. Renewal of inoperative status.
16 Section 12. Coordination of gas well drilling through active
17 coal mines.
1 Section 13. Plugging gas wells penetrating workable coal seams.
2 Section 14. Appeals and enforcement.
3 Section 15. Severability.
4 Section 16. Effective date.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as the Coal and Gas
9 Resource Coordination Act.
10 Section 2. Definitions.
11 The following words and phrases when used in this act shall
12 have the meanings given to them in this section unless the
13 context clearly indicates otherwise:
14 "Active coal mine." Any area permitted by this Commonwealth
15 for coal mining operations and any area adjacent to such
16 permitted area where the mine owner or operator has projected
17 mining operations within five years.
18 Department." The Department of Environmental Resources.
19 "Gas." A natural, manufactured or by-product gas or any
20 mixture thereof.
21 "Gas Operations Well-Drilling Petroleum and Coal Mining Act."
22 The act of November 30, 1955 (P.L.756, No.225), known as the Gas
23 Operations Well-Drilling Petroleum and Coal Mining Act.
24 "Gas well." A well which is producing or capable of
25 producing marketable quantities of gas and oil with a gas-oil
26 ratio of more than 100 MCF per bbl. of oil.
27 "Injection well." A well used for injection of gases or
28 liquids into an underground formation.
29 "Inoperative gas well." A gas well which is not producing
30 gas and for which the permittee of record has determined and
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1 reported to the department pursuant to section 10(b) that the
2 gas well is of future utility and the permittee reasonably
3 expects to utilize the well within five years of the date of
4 this report.
5 "Nonproducing gas well." A gas well that has not been used
6 to produce, extract or inject any gas within the preceding 24
7 months and any well for which the equipment necessary for
8 production, extraction or injection has been removed, except
9 that it shall not include any gas well waiting for a pipeline,
10 market or storage or any well designated as an inoperative gas
11 well or producing well pursuant to this act.
12 "Oil." Crude petroleum oil and all other hydrocarbons,
13 regardless of gravity, produced at a well in liquid form by
14 ordinary production methods, but does not include liquid
15 hydrocarbons that were originally in a gaseous phase in the
16 reservoir.
17 "Oil and Gas Conservation Law." The act of July 25, 1961
18 (P.L.825, No.359), known as the Oil and Gas Conservation Law.
19 "Oil well." A well which produces oil in marketable
20 quantities but has an insufficient amount of gas to be saleable.
21 "Onondaga horizon." The top of the onondaga formation,
22 except in those areas in which the onondaga formation is not
23 present, and in such areas the term shall be understood to mean
24 either the top of the stratigraphic horizon first appearing in
25 the interval of the missing onondaga formation, or where strata
26 older than the top of the onondaga are exposed at the surface,
27 then the term "onondaga horizon" shall mean the surface.
28 "Owner." When used in reference to a coal mine, a person who
29 has an economic interest in a workable coal seam or when used in
30 reference to gas properties or rights, a person who has an
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1 economic interest in the gas rights.
2 "Permittee." The well operator who has received a drilling
3 permit in accordance with the Gas Operations Well-Drilling
4 Petroleum and Coal Mining Act.
5 "Person." A natural person, corporation, association,
6 partnership, receiver, trustee, executor, administrator,
7 guardian, fiduciary, or other representative of any kind, and
8 includes any department, agency or instrumentality of this
9 Commonwealth, or any governmental subdivision thereof.
10 "Producing gas well." A well which is being used for the
11 production or extraction of gas.
12 "Tract." The contiguous surface acreage encompassed by the
13 gas rights pursuant to which the gas well is to be drilled.
14 "Well." A bore hole drilled or being drilled primarily for
15 the purpose of or to be used for producing or extracting oil or
16 gas and which has not been plugged.
17 "Workable coal seam." A coal seam shown on the Topographical
18 and Geological Survey of the Department of Environmental
19 Resources Map 11 capable of being mined by underground methods.
20 Section 3. Applicability; exclusions.
21 (a) Except as provided in subsection (b), this act shall
22 apply to all gas wells which penetrate a workable coal seam in
23 this Commonwealth, including any gas well which penetrates a
24 workable coal seam on lands owned or administered by the
25 Commonwealth, or any political subdivision thereof.
26 (b) This act shall not apply to any:
27 (1) Gas well for which a permit is obtained under the
28 Oil and Gas Conservation Law and which is, in fact, drilled
29 to a depth which penetrates the onondaga horizon, or, in
30 those areas where the onondaga horizon is closer to the
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1 surface than 3,800 feet, penetrates deeper than 3,800 feet,
2 even if the well is completed as a gas well which would
3 otherwise be subject to this act; except to the extent that
4 such gas wells are considered "other wells" for the purposes
5 of section 7.
6 (2) Oil well, combination well, injection well or well
7 drilled to inject gas into or withdraw gas from a gas storage
8 reservoir, except to the extent that such wells are
9 considered "other wells" for the purposes of section 7.
10 (c) Nothing in this act shall be construed to require gas
11 wells drilled prior to the effective date of this act to comply
12 with the minimum distance requirements of section 7.
13 Section 4. Powers and duties of department.
14 (a) The department shall have authority over all persons and
15 property necessary to effectively enforce the provisions of this
16 act.
17 (b) This act shall not be construed to grant to the
18 department authority or power to:
19 (1) Limit production or output, or prorate production of
20 any gas well.
21 (2) Fix prices of natural gas.
22 (c) The powers and duties of the department shall be
23 strictly construed and limited to those set forth herein.
24 Section 5. Permits.
25 No person shall be issued a permit pursuant to the Gas
26 Operations Well-Drilling Petroleum and Coal Mining Act to drill
27 a new gas well unless the provisions of this act are met.
28 Section 6. Permit application.
29 (a) All permit applications made pursuant to the Gas
30 Operations Well-Drilling Petroleum and Coal Mining Act for a gas
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1 well covered by this act shall include a certification that the
2 gas well will be located so that it will comply with the minimum
3 distance requirements set forth in section 7, including any
4 exception granted by the department pursuant to section 7(b),
5 (c) and (d).
6 (b) All permit applications made pursuant to the Gas
7 Operations Well-Drilling Petroleum and Coal Mining Act for a gas
8 well covered by this act shall be processed by the department in
9 the order in which they are received. No such permit application
10 shall be deemed complete unless all information necessary to
11 process the permit in compliance with this act has been received
12 by the department, including all information necessary to act on
13 any exception requested pursuant to section 7(b), (c) and (d).
14 (c) In any case where two or more permits have been applied
15 for or issued by the department, pursuant to the Gas Operations
16 Well-Drilling Petroleum and Coal Mining Act, for gas wells
17 covered by this act, and gas wells covered by the permits or
18 applications cannot be drilled without violating the provisions
19 of section 7, the department shall notify each affected permit
20 applicant or permittee.
21 (d) (1) In any case where two or more permits have been
22 applied for or issued by the department, pursuant to the Gas
23 Operations Well-Drilling Petroleum and Coal Mining Act for
24 gas wells covered by this act, and all gas wells covered by
25 the permits or permit applications cannot be drilled without
26 violating the provisions of section 7, the first permitted
27 gas well for which drilling is commenced shall determine
28 compliance of the remaining proposed gas wells with section
29 7.
30 (2) Drilling shall be deemed to have commenced for the
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1 purposes of this subsection when the permittee has begun
2 actually drilling with the intent of continuing the drilling
3 in a workmanlike manner to a formation capable of producing
4 enough gas to make it economically feasible to complete the
5 well.
6 Section 7. Minimum distance between gas wells.
7 (a) No permit for a gas well covered by this act may be
8 issued to drill a new gas well, or reopen a gas well which has
9 been plugged in accordance with the Gas Operations Well-Drilling
10 Petroleum and Coal Mining Act, unless the proposed gas well is
11 located not less than 1,000 feet from any other well and not
12 less than 330 feet from the boundary of the tract on which the
13 gas well is to be located. For the purpose of this section
14 "other well" shall not include any:
15 (1) Oil or gas well or injection well which does not
16 penetrate a workable coal seam.
17 (2) Oil or gas well or injection well which has been
18 plugged in accordance with this act.
19 (3) Nonproducing oil or gas well.
20 (b) The department shall, upon request of the permit
21 applicant or the owner of the workable coal seam which underlies
22 the proposed gas well, grant an exception from the minimum 1,000
23 feet distance requirement of subsection (a), where the permit
24 applicant and the owner of the workable coal seam consent, in
25 writing. In no case shall the minimum distance between the
26 proposed gas well and any other well be less than 900 feet
27 pursuant to this subsection.
28 (c) The department shall, upon the request of the permit
29 applicant or the owner of the workable coal seam which underlies
30 the proposed gas well, grant an exception to the requirements of
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1 subsection (a), where the vertical distance between the
2 producing formation of the proposed gas well and the producing
3 formation of any other well within 1,000 feet of the proposed
4 gas well is 1,000 feet or greater, where the permit applicant
5 and the owner of the workable coal seam consent in writing.
6 (d) The department shall, upon request of the permit
7 applicant, grant an exception from the requirement that a gas
8 well may not be located less than 330 feet from the boundary of
9 the tract on which the gas well is to be located if any of the
10 following conditions are proven:
11 (1) The proposed gas well must be located within 330
12 feet of the boundary to conform to the requirements of the
13 Gas Operations Well-Drilling Petroleum and Coal Mining Act.
14 (2) The topography of the tract on which the proposed
15 gas well is to be located is such that it cannot be located
16 any place on the tract which is not within 330 feet of the
17 boundary of the tract.
18 (3) The nature, character or location of the producing
19 formations sought to be drilled are such that drilling the
20 gas well more than 330 feet from the boundary of the tract
21 would not be efficient, economical or would prevent removal
22 of the maximum amount of gas.
23 (4) Locating the proposed gas well less than 330 feet
24 from the boundary of the tract is necessary to protect
25 property or to protect against potential injury to any
26 natural person.
27 (5) If the proposed gas well must be located within 330
28 feet to take advantage of any exception pursuant to
29 subsection (b), (c) or (d).
30 (6) If the proposed gas well must be located within 330
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1 feet as the result of any decision of the panel provided for
2 in section 12.
3 Section 8. Voluntary agreements.
4 The owners of adjoining rights in oil and gas properties may
5 agree to combine the rights in order to establish a tract to
6 conform to the requirements of section 7. The agreements shall
7 be in writing.
8 Section 9. Validity of voluntary agreements.
9 No agreement entered into for the purpose of complying with
10 section 7 or for the purpose of bringing about the integrated
11 development or operation of gas properties, shall be held to
12 violate any statute of this Commonwealth prohibiting monopolies
13 or acts, arrangements, agreements, contracts, combinations or
14 conspiracies in restraint of trade or commerce.
15 Section 10. Modification.
16 (a) Within one year of the effective date of this act, the
17 department shall serve written notice on the permittee of record
18 of all gas wells permitted under the Gas Operations Well-
19 Drilling Petroleum and Coal Mining Act and which penetrate a
20 workable coal seam that the permittee must designate his gas
21 well as nonproducing, inoperative or producing as those terms
22 are defined in this act.
23 (b) The permittee shall report his designation of each gas
24 well within one year of the receipt of the notice provided for
25 in subsection (a).
26 (c) Any gas well for which the department does not receive a
27 designation from the permittee shall be classified as a
28 nonproducing gas well.
29 Section 11. Renewal of inoperative status.
30 A gas well which has been designated as inoperative pursuant
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1 to section 10(b) shall be declared a nonproducing gas well by
2 the department if it does not become a producing gas well within
3 five years of the date the permittee designates it as
4 inoperative, unless prior to expiration of the five-year period
5 the permittee certifies in writing to the department that it
6 will become a producing gas well within two years and that it
7 otherwise qualifies as an inoperative gas well as defined in
8 this act.
9 Section 12. Coordination of gas well drilling through active
10 coal mines.
11 (a) When a proposed gas well drilling is located above an
12 active coal mine then the owner of the coal mine may within ten
13 days from the receipt by the department of the plat and notice
14 required by the Gas Operations Well-Drilling Petroleum and Coal
15 Mining Act, file objections in writing to such proposed drilling
16 with the department, setting out in detail the ground or grounds
17 upon which the objections are based.
18 (b) If any objection is filed, the department shall notify
19 the permit applicant of the objections and shall provide the
20 permit applicant with a copy of the written objections.
21 (c) In the event the well operator and the objecting coal
22 owner or operator are unable to agree upon a drilling location,
23 their differences shall be resolved by a panel consisting of one
24 person selected by the objecting coal owners or operators, a
25 second person selected by the permit applicant and a third
26 selected by the other two. Each party shall pay the fee of the
27 panel member it selects and one-half the fee of the third
28 member. The panel shall convene a hearing within ten days of a
29 request to do so by either the permit applicant or the objecting
30 coal owner or operator.
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1 (d) The parties shall submit their positions to the panel
2 within such time as the panel prescribes. The panel shall
3 receive such written or oral information as it deems
4 appropriate. Based on the information it receives, the panel
5 shall choose the location, if any, on the permit applicant's
6 tract which:
7 (1) Permits the proposed gas well to be drilled without
8 endangering the safety of persons working in any coal mine.
9 (2) Allows for the maximum recovery of gas and removal
10 of coal.
11 In determining what location allows for the maximum recovery of
12 gas and removal of coal, the panel shall weigh the additional
13 cost, including the value of any oil or gas which will be lost,
14 of drilling in a location other than the one designated by the
15 permit applicant against the costs, including the value of coal
16 which will be lost, which will be incurred by the objecting coal
17 owner or operator by allowing the drilling to take place at the
18 location designated by the permit applicant.
19 (e) The panel shall make its decision within ten days of the
20 close of the hearing and immediately submit it to the department
21 and the parties to this proceeding. The department, if it
22 otherwise approves, shall proceed to issue a permit and the
23 location of the gas well as determined by the panel shall be
24 indicated on the plat on file with the department, and the
25 distance and direction of the new location, if any, from the
26 original location shall be shown and the plat shall be filed and
27 become a permanent record.
28 (f) Decisions of the panel shall be based on a majority
29 vote.
30 (g) The decisions of the panel pursuant to subsection (d)
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1 shall be final and binding on the department, and no appeal of
2 the panel's decision may be taken to the Environmental Hearing
3 Board or the courts of this Commonwealth.
4 Section 13. Plugging gas wells penetrating workable coal seams.
5 (a) The owner or permittee of any nonproducing gas well,
6 which was permitted after November 30, 1955, shall securely plug
7 the well using any one of the following techniques depending on
8 whether the coal protection string of casing has been circulated
9 and cemented into the surface:
10 (1) Where a coal protection string of casing has been
11 circulated and cemented into the surface, the well shall be
12 filled with sand pumpings, mud, or other equally nonporous
13 material from the bottom of the well to a point 20 feet above
14 the top of the lowest stratum bearing or having borne oil,
15 gas or water; or a permanent bridge shall be anchored 30 feet
16 below the lowest stratum bearing or having borne oil, gas or
17 water, and from such bridge the well shall be filled with
18 sand pumpings, mud or other equally nonporous material to a
19 point 20 feet above such stratum at which point there shall
20 be placed a plug of expanding cement to a depth of at least
21 20 feet which will completely seal the hole. A sufficient
22 lapse of time shall be allowed after the introduction of the
23 expanding cement for it to set properly before proceeding.
24 Between this sealing plug and a point 20 feet above the next
25 higher stratum bearing or having borne oil, gas or water, the
26 hole shall be either filled, or bridged and filled in the
27 manner just described and at such point there shall be placed
28 another similar plug of expanding cement to a depth of at
29 least 20 feet which will completely seal the hole. In like
30 manner the hole shall be filled and plugged, or bridged,
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1 filled and plugged with reference to each of the strata
2 bearing or having borne oil, gas or water. Whenever such
3 strata are not widely separated and are free from water, they
4 may be grouped and treated as a single horizon and the
5 aforesaid filling and plugging may be performed as through
6 there were but one horizon. An expanding cement plug shall be
7 placed approximately ten feet below the bottom of the largest
8 casing in the well and from this point to a point
9 approximately 100 feet below the bottom of coal protection
10 string of casing, the well shall be filled with sand
11 pumpings, mud or other equally nonporous material. A 100 foot
12 plug of expanding cement shall then be placed at a point just
13 below the coal protection string of casing. After such plug
14 has been securely placed in the well, the coal protection
15 string of casing shall be emptied of liquid from the surface
16 to a point 100 feet below the lowest workable coal seam or to
17 the bottom of the coal protection string of casing, whichever
18 is shallower. A vent or other device approved by the
19 department shall then be installed on top of the coal
20 protection string of casing in such a manner that will
21 prevent liquids and solids from entering the well but will
22 permit access to the full internal diameter of the coal
23 protection string of casing when required. The coal
24 protection string of casing and the vent or other device
25 approved by the department shall extend, when finally in
26 place, a distance of no less than 72 inches above ground
27 level and shall be permanently marked with the well number
28 assigned by the department.
29 (2) Where a coal protection string of casing has not
30 been circulated and cemented into the surface, the well shall
19840H2100B2843 - 13 -
1 be plugged in the manner provided in paragraph (1), to a
2 point approximately 200 feet below the lowest workable coal
3 seam. A 100 foot plug of expanding cement shall then be
4 placed in the well beginning at the point approximately 200
5 feet below the lowest workable coal bed and extending to a
6 point approximately 100 feet below the lowest workable coal
7 seam. A string of casing with an outside diameter not less
8 than eight and one half inches shall then be run into the
9 well to a point approximately 100 feet below the lowest
10 workable coal seam and such string of casing shall be
11 circulated and cemented into the surface. The casing shall
12 then be emptied of liquid from a point approximately 100 feet
13 below the lowest workable coal seam to the surface and a vent
14 or other device approved by the department shall be installed
15 on the top of the string of casing in such a manner that it
16 will prevent liquids and solids from entering the well but
17 will permit ready access to the full internal diameter of the
18 coal protection string of casing when required. The string of
19 casing and the vent or other device approved by the
20 department shall extend, when finally in place, a distance of
21 no less than 72 inches above ground level and shall be
22 permanently marked with the well number assigned by the
23 department.
24 (3) Where the coal protection-water string of casing has
25 been circulated and cemented into the surface, the well may
26 also be plugged by circulating with bentonite gel or other
27 equally nonporous material. In such case an expanding cement
28 plug or plugs shall then be set in such a way that each plug
29 or plugs will extend from at least 50 feet below each stratum
30 bearing or having borne oil, gas or water, to a point at
19840H2100B2843 - 14 -
1 least 100 feet above each stratum bearing or having borne
2 oil, gas or water. The bentonite gel shall separate each
3 expending cement plug. Whenever such strata are not widely
4 separated, they may be grouped or treated as a single stratum
5 bearing or having borne oil, gas or water and a single
6 expending cement plug may be used. When the uncemented
7 portion of the production string is removed during the
8 plugging procedure, an expanding cement plug extending from
9 the point where the production casing is separated to a point
10 at least 50 feet above the point of separation shall be set.
11 An expending cement plug shall be set at a point at least 100
12 feet below the bottom of the coal protection-water string to
13 a point at least 100 feet above the bottom of the coal
14 protection-water string.
15 (4) Where a coal protection-water string of casing has
16 not been circulated and cemented into the surface, the well
17 may also be plugged in the manner provided in subsection
18 (a)(3) to a point approximately 300 feet below the bottom of
19 the coal protection-water string. In such case a 100-foot
20 plug of expanding cement shall then be placed in the well
21 beginning at the point approximately 300 feet below the
22 bottom of the coal protection-water string and extending to a
23 point approximately 200 feet below the bottom of the coal
24 protection-water string. A string of casing with an outside
25 diameter no less than four and one-half inches shall then be
26 run into the well to a point approximately 100 feet below the
27 bottom of the coal protection-water string and such string of
28 casing shall be circulated and cemented into the surface. The
29 casing and open hole shall then be emptied of liquid from a
30 point approximately 200 feet below the bottom of the coal
19840H2100B2843 - 15 -
1 protection-water string to the surface and a vent or other
2 device approved by the department shall be installed on the
3 top of the string of casing in such a manner that it will
4 prevent liquids and solids from entering the well but will
5 permit ready access to the full internal diameter of the coal
6 protection string of casing when required. The string of
7 casing and the vent or other device approved by the
8 department shall extend, when finally in place, a distance of
9 no less than 72 inches above ground level and shall be
10 permanently marked with the well number assigned by the
11 department.
12 (b) Where the owner or operator of the gas well proposes to
13 plug a gas well drilled prior to November 30, 1955 or a gas well
14 permitted after such date but not plugged in accordance with the
15 provisions of subsection (a), for the purpose of allowing the
16 mining through of the gas well, the gas well shall be cleaned
17 out to a depth at least 200 feet below the coal seam in which
18 the mining through is proposed and, unless impracticable, to a
19 point 200 feet below the lowest mineable coal seam. Such gas
20 well shall then be plugged in accordance with subsection (a)(1),
21 (2), (3) or (4) whichever shall be applicable.
22 (c) Any person may apply to the department for an order
23 authorizing him to clean out, plug or replug a nonproducing
24 well. Such application shall be filed with the department and
25 shall contain the well number, a general description of the well
26 location, the name and address of the owner of the surface land
27 upon which the well is located, a copy of or record reference to
28 a deed, lease or other document which entitles the applicant to
29 enter upon the surface land, and a description of the method by
30 which such applicant proposes to clean out and replug or to plug
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1 the well. At the time such application is filed with the
2 department, the person plugging the well shall mail by
3 registered or certified mail a copy of the application to the
4 owner or owners of the land, and the oil and gas lessor and
5 lessee of record, if any, of the site of the well. If no
6 objection to the plugging or replugging of such well is filed by
7 any such landowner, lessor or lessee within 30 days after the
8 filing of the application, and if the applicant proposes to plug
9 the well in accordance with subsection (a)(1) or (2), whichever
10 is applicable, then the applicant may proceed with the cleaning
11 out, plugging or replugging.
12 (d) Notwithstanding the foregoing provisions of this
13 section, if under particular circumstances a different method of
14 plugging is required to obtain the approval of the Federal
15 Government for the safe mining through of said gas well, the
16 department may approve such different method of plugging if it
17 finds the same to be as safe for mining through and otherwise
18 adequate to prevent gas or other fluid migration from the oil
19 and gas reservoirs as the methods above specified.
20 Section 14. Appeals and enforcement.
21 (a) Appeals of all final actions of the department shall be
22 taken to the Environmental Hearing Board pursuant to the
23 provisions of the act of April 9, 1929 (P.L.177, No.175), known
24 as The Administration Code of 1929.
25 (b) The Environmental Hearing Board shall conduct expedited
26 hearings and issue its decisions promptly whenever it appears
27 that delay in issuing a permit or uncertainty with respect to
28 the validity of a permit will result in the loss of any right,
29 title, lease, option to lease or other proprietary interest.
30 (c) The courts of common pleas and, in the case an action
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1 brought by the department, the Commonwealth Court and courts of
2 common pleas shall have the power to award injunctions to
3 prevent violations of this act and to otherwise provide for its
4 enforcement upon suit brought by the department or by any person
5 having an interest in a workable coal seam or any owner or
6 operator of an active coal mine who may be adversely affected by
7 violations of this act.
8 Section 15. Severability.
9 The provisions of this act are severable. If any provision of
10 this act or its application to any person or circumstances is
11 held invalid, the invalidity shall not affect other provisions
12 or applications of this act which can be given effect without
13 the invalid provision or application.
14 Section 16. Effective date.
15 This act shall take effect in 90 days.
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