PRIOR PRINTER'S NO. 2689

PRINTER'S NO.  2765

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

1950

Session of

2011

  

  

INTRODUCED BY ELLIS, S. H. SMITH, TURZAI, SAYLOR, REED, ADOLPH, MAJOR, STEVENSON, VEREB, ROSS, GROVE, MARSHALL, HELM, VULAKOVICH, P. COSTA, GERGELY, MOUL, CHRISTIANA, TALLMAN, EVERETT AND K. SMITH, NOVEMBER 1, 2011

  

  

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, NOVEMBER 16, 2011   

  

  

  

AN ACT

  

1

Amending Titles 27 (Environmental Resources) and 58 (Oil and

2

Gas) of the Pennsylvania Consolidated Statutes, requiring

3

rents and royalties from oil and gas leases of Commonwealth

4

land to be placed in a special fund to be used for

5

conservation, recreation, dams, flood control and certain

6

interfund transfers; authorizing the Secretary of

7

Conservation and Natural Resources to determine the need for

8

and location of such projects and to acquire the necessary

9

land; providing for interfund transfer; establishing the 

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10

Keystone Transit Program; providing a transfer of funds from

11

the Oil and Gas Lease Fund to the Department of Environmental

12

Protection for a competitive grant program for the transition

13

of small mass transit bus fleets to compressed natural gas;

14

establishing the Clean Transit Program; providing a transfer

15

of funds from the Oil and Gas Lease Fund to the Department of

16

Environmental Protection for a loan program for the

17

transition of large mass transit bus fleets to compressed

18

natural gas; authorizing counties to impose and collect an

19

unconventional gas well impact fee; providing for

20

distribution of fees and for the Oil and Gas Lease Fund;

21

consolidating the Oil and Gas Act with modifications and

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22

additions; providing for local ordinances relating to oil and 

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23

gas operations; and repealing an act relating to the

24

establishment of the Oil and Gas Lease Fund and the Oil and

25

Gas Act.

26

The General Assembly of the Commonwealth of Pennsylvania

27

hereby enacts as follows:

28

Section 1.  Title 27 of the Pennsylvania Consolidated

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1

Statutes is amended by adding chapters to read:

2

CHAPTER 33

3

OIL AND GAS

4

Subchapter

5

A.  (Reserved)

6

B.  Oil and Gas Lease Fund

7

SUBCHAPTER A

8

(RESERVED)

9

SUBCHAPTER B

10

OIL AND GAS LEASE FUND

11

Sec.

12

3301.  Definitions.

13

3302.  Oil and Gas Lease Fund.

14

3303.  Powers and duties of secretary.

15

3304.  Appropriation of moneys.

16

3305.  Interfund transfers.

17

§ 3301.  Definitions.

18

The following words and phrases when used in this chapter

19

shall have the meanings given to them in this section unless the

20

context clearly indicates otherwise:

21

"Department."  The Department of Conservation and Natural

22

Resources of the Commonwealth.

23

"Fund."  The Oil and Gas Lease Fund established by this

24

subchapter.

25

"Secretary."  The Secretary of Conservation and Natural

26

Resources of the Commonwealth.

27

§ 3302.  Oil and Gas Lease Fund.

28

(a)  Establishment.--The Oil and Gas Lease Fund is

29

established in the State Treasury.

30

(b)  Deposits.--All rents and royalties from oil and gas

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1

leases of any land owned by the Commonwealth, except rents and

2

royalties received from game and fish lands, shall be placed in

3

the fund to be used exclusively:

4

(1)  for conservation, recreation, dams or flood control;

5

(2)  to match any Federal grants which may be made for

6

any of the purposes enumerated in this subchapter; and

7

(3)  for interfund transfers as provided in section 3305

8

(relating to interfund transfers).

9

§ 3303.  Powers and duties of secretary.

10

The secretary shall have the following powers and duties:

11

(1)  To determine, in the secretary's discretion, the

12

need for and the location of any project authorized by this

13

chapter.

14

(2)  To acquire in the name of the Commonwealth by

15

purchase, condemnation or otherwise such lands as may be

16

needed.

17

§ 3304.  Appropriation of moneys.

18

All the moneys from time to time paid into the fund are

19

specifically appropriated on a continuing basis to the

20

department to carry out the purposes of this subchapter.

21

§ 3305.  Interfund transfers.

22

Transfers shall be made between funds in the State Treasury

23

as follows:

24

(1)  On July 1, 2013, and each July 1 thereafter, an

25

amount equal to 25% of the total moneys received from the

26

prior fiscal year shall be transferred from the fund to the

27

Environmental Stewardship Fund for the purpose of plugging

28

abandoned oil and gas wells and other uses authorized by law

29

for the Environmental Stewardship Fund.

30

(2)  (i)  Beginning July 1, 2014, a total of $40,000,000

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1

shall be transferred from the fund to the Hazardous Sites

2

Cleanup Fund for the purpose of remedial response or

3

remedy at oil and gas well sites and other uses

4

authorized by law for the Hazardous Sites Cleanup Fund.

5

(ii)  On July 1, 2015, and each July 1 thereafter,

6

the following shall apply:

7

(A)  the sum of the amount transferred under

8

subparagraph (i) during the prior fiscal year; and

9

(B)  an amount equal to the percentage change in

10

the Consumer Price Index for All Urban Consumers from

11

the prior fiscal year, multiplied by the amount in

12

clause (A),

13

shall be transferred from the fund to the Hazardous Sites

14

Cleanup Fund for the purpose specified in subparagraph

15

(i).

16

(3)  On July 1, 2013, and each July 1 thereafter, an

17

amount equal to 5% of the total moneys received from the

18

prior fiscal year, but not to exceed $5,000,000, shall be

19

transferred from the fund to the several counties, school

20

districts and townships entitled to receive payment from the

21

Commonwealth in lieu of taxes under the act of May 17, 1929

22

(P.L.1798, No.591), referred to as the Forest Reserves

23

Municipal Financial Relief Law. The moneys transferred under

24

this paragraph shall be allocated to each county, school

25

district and township based on the number of acres of land in

26

the county, school district or township to which the payment

27

under that act applies in proportion to the aggregate number

28

of acres of all such lands of the counties, school districts

29

and townships in this Commonwealth.

30

(4)  On July 1, 2013, and each July 1 thereafter, a total

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1

of $15,000,000 shall be transferred from the fund to the

2

Conservation District Fund. These funds shall be distributed

3

in a manner consistent with the act of May 15, 1945 (P.L.547,

4

No.217), known as the Conservation District Law, and the

5

provisions of the State Conservation Commission's

6

Conservation District Fund Allocation Program—Statement of

7

Policy under 25 Pa. Code Ch. 83 Subch. B (relating to

8

Conservation District Fund Allocation Program—Statement of

9

Policy).

10

CHAPTER 35

11

WELLS

12

Subchapter

13

A.  Unconventional Gas Wells

14

B.  (Reserved)

15

SUBCHAPTER A

16

UNCONVENTIONAL GAS WELLS

17

Sec.

18

3501.  Short title.

19

3502.  Definitions.

20

3503.  Unconventional gas well impact fee.

21

3504.  (Reserved).

22

3505.  (Reserved).

23

3506.  Administration.

24

3506.1.  Well information.

25

3506.2.  Payment confirmation.

26

3506.3.  County authority.

27

3506.4.  Enforcement.

28

3506.5.  Examinations.

29

3507.  Deposit of fees.

30

3508.  Allocation and distribution of fees.

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1

3509.  Calculation of payments.

2

3510.  Recordkeeping and State reporting.

3

3511.  Expiration.

4

§ 3501.  Short title.

5

This subchapter shall be known and may be cited as the

6

Unconventional Gas Well Impact Act.

7

§ 3502.  Definitions.

8

The following words and phrases when used in this subchapter

9

shall have the meanings given to them in this section unless the

10

context clearly indicates otherwise:

11

"Association."  A partnership, limited partnership or any

12

other form of unincorporated enterprise owned or conducted by

13

two or more persons.

14

"Coal bed methane."  Gas that can be produced from coal beds,

15

coal seams, mined-out areas or gob wells.

16

"Corporation."  A corporation, joint stock association,

17

limited liability company, business trust or any other

18

incorporated enterprise organized under the laws of the United

19

States, this Commonwealth or any other state, territory or

20

foreign country or dependency.

21

"Department."  The Department of Environmental Protection of

22

the Commonwealth.

23

"Highway mileage."  The number of miles of public roads and

24

streets most recently certified by the Department of

25

Transportation as eligible for distribution of liquid fuels

26

funds under the act of June 1, 1956 (1955 P.L.1944, No.655),

27

referred to as the Liquid Fuels Tax Municipal Allocation Law.

28

"Municipality."  A city, borough, incorporated town or

29

township.

30

"Natural gas."  A fossil fuel consisting of a mixture of

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1

hydrocarbon gases, primarily methane, possibly including ethane,

2

propane, butane, pentane, carbon dioxide, oxygen, nitrogen and

3

hydrogen sulfide and other gas species. The term includes gas

4

from oil fields known as associated gas or casing head gas,

5

natural gas fields known as nonassociated gas, coal beds, shale

6

beds and other formations. The term does not include coal bed

7

methane.

8

"Nonproducing well."  A natural gas well that produces an

9

average of less than 90,000 cubic feet of natural gas per day

10

during a calendar year.

11

"Operator."  A person or its subsidiary, affiliate or holding

12

company that holds a permit or other authorization to engage in

13

the business of severing natural gas for sale, profit or

14

commercial use from an unconventional well in this Commonwealth.

15

The term does not include a person who severs natural gas from a

16

storage field.

17

"Person."  A natural person or a corporation, fiduciary,

18

association or other entity, including the Commonwealth and any

19

of its political subdivisions, instrumentalities and

20

authorities. When the term is used in a provision prescribing

21

and imposing a penalty or imposing a fine or both, the term

22

shall include a member of an association and an officer of a

23

corporation.

24

"Rate."  The rate under section 3503 (relating to

25

unconventional gas well impact fee).

26

"Reporting period."  The fiscal year in which a well impact

27

fee is assessed.

28

"Unconventional gas well."  A bore hole drilled or being

29

drilled for the purpose of or to be used for producing oil or

30

gas from a geologic shale formation existing below the base of

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1

the Elk Sandstone or its geologic equivalent stratigraphic

2

interval where oil or gas generally cannot be produced at

3

economic flow rates or in economic volumes except by wells

4

stimulated by hydraulic fracture treatments, a horizontal well

5

bore or by using multilateral well bores or other techniques to

6

expose more of the formation of the well bore.

7

"Unconventional gas well impact fee."  A fee that is adopted

8

under section 3503 (relating to unconventional gas well impact

9

fee) on each unconventional well producing natural gas within

10

this Commonwealth.

11

§ 3503.  Unconventional gas well impact fee.

12

(a)  Imposition.--By enactment of an ordinance by the

13

governing body of a county, except as set forth in subsection

14

(b), a county may impose an unconventional gas well impact fee

15

on each unconventional gas well that is located on a well pad

16

and produces natural gas within the county.

17

(b)  Exemptions.--The unconventional gas well impact fee

18

shall not be imposed on:

19

(1)  nonproducing wells; or

20

(2)  unconventional gas wells in which the natural gas is

21

used directly by a consumer.

22

(c)  Fee for existing unconventional wells.--The fee for an

23

unconventional well producing natural gas which is in existence

24

on the effective date of the ordinance under subsection (a)

25

shall be as follows:

26

(1)  For the first year of production following the

27

effective date of the ordinance, not more than $40,000.

28

(2)  For the second year of production following the

29

effective date of the ordinance, not more than $30,000.

30

(3)  For the third year of production following the

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1

effective date of the ordinance, not more than $20,000.

2

(4)  For the fourth year of production through the tenth

3

year of production following the effective date of the

4

ordinance, not more than $10,000.

5

(d)  Fee for new unconventional wells.--The fee for an

6

unconventional well producing natural gas drilled after the

7

effective date of the ordinance under subsection (a) shall be as

8

follows:

9

(1)  For the first year of production, not more than

10

$40,000.

11

(2)  For the second year of production, not more than

12

$30,000.

13

(3)  For the third year of production, not more than

14

$20,000.

15

(4)  For the fourth year of production through the tenth

16

year of production, not more than $10,000.

17

(e)  Vertical unconventional well fee.--

18

(1)  The fee for an unconventional vertical well shall be

19

not more than 25% of the fee established in subsections (c)

20

and (d).

21

(2)  For purposes of this subsection, an unconventional

22

vertical well shall be defined as an unconventional well

23

producing oil or gas from a geologic shale formation existing

24

below the base of the Elk Sandstone or its geologic

25

equivalent stratigraphic interval and utilizes hydraulic

26

fracture treatment through a single vertical well bore.

27

(f)  Prohibition.--

28

(1)  Under no circumstances may an operator make an

29

unconventional gas well impact fee, or any other levy related

30

to the removal or extraction of natural gas, an obligation,

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1

indebtedness or liability of a landowner, leaseholder or

2

other person in possession of real property upon which such

3

removal or extraction occurs.

4

(2)  An agreement between an operator and a landowner,

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5

leaseholder or other person in possession of real property

6

upon which removal or extraction of natural gas occurs that

7

violates paragraph (1) shall be null and void.

8

(g)  Retroactivity prohibited.--No fee shall be imposed to

9

cover a period of natural gas production which occurred prior to

10

the effective date of the ordinance.

11

§ 3504.  (Reserved).

12

§ 3505.  (Reserved).

13

§ 3506.  Administration.

14

(a)  Report.--By April 1 of the year after enactment of an

15

ordinance imposing a fee under this chapter and each April 1

16

thereafter, each producer shall submit a report and payment of

17

the fee with the county on a form prescribed by the department

18

for the previous calendar year. The report shall include the

19

following:

20

(1)  The number of unconventional wells of a producer in

21

each municipality within the county.

22

(2)  The total number of cubic feet of natural gas

23

severed by the producer for each unconventional well

24

identified under paragraph (1) during the previous calendar

25

year.

26

(3)  The date that each unconventional well identified

27

under paragraph (1) began or ceased the production of natural

28

gas.

29

(b)  Fee due date.--The fee imposed under this chapter shall

30

be due by April 1 of the year after enactment of an ordinance

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1

imposing the fee and each April 1 thereafter. The fee shall

2

become delinquent if not remitted to the county on the reporting

3

date.

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4

§ 3506.1.  Well information.

5

(a)  List.--Upon request, the department shall provide a

6

county with a list of all unconventional wells that have

7

received a well permit from the department issued under this

8

chapter. The list shall be updated on a monthly basis. In lieu

9

of providing the list to each county, the department may

10

maintain a list on its publicly accessible Internet website if

11

the list is updated on a monthly basis.

12

(b)  Updates.--A producer shall notify the county within 30

13

days from the date the unconventional well began or ceased the

14

production of natural gas.

15

§ 3506.2.  Payment confirmation.

16

Prior to issuing a permit to drill an unconventional well in

17

this Commonwealth, the department shall require the permit

18

applicant to certify in its well permit application that the

19

producer has paid all fees that may be owed under this chapter.

20

The department may deny a well permit application if it finds

21

that the producer falsified this certification.

22

§ 3506.3.  County authority.

23

(a)  Powers.--A county may make all inquiries and

24

determinations necessary to calculate and collect a fee imposed

25

under this chapter, including, if applicable, interest and

26

penalties.

27

(b)  Notice.--If a county determines that a fee imposed under

28

this chapter has not been paid in full, it may issue a notice of

29

the amount due and demand for payment and shall set forth the

30

basis for the determination.

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1

(c)  Address.--Notice of failure to pay the correct fee shall

2

be sent to the producer at its registered address via certified

3

mail.

4

(d)  Time period.--A county may challenge the amount of a fee

5

paid under this chapter within three years after the date the

6

report under this chapter is filed.

7

(e)  Intent.--If no report is filed or a producer files a

8

false or fraudulent return with the intent to evade a fee, an

9

assessment of the amount owed may be made at any time.

10

§ 3506.4.  Enforcement.

11

(a)  Assessment.--A county may assess interest on any

12

delinquent fee imposed under this chapter at the rate prescribed

13

under section 806 of the act of April 9, 1929 (P.L.343, No.176),

14

known as The Fiscal Code.

15

(b)  Penalty.--In addition to the interest under subsection

16

(a), if a producer fails to make timely payment of the fee, a

17

penalty shall be added to the amount of the fee due. The amount

18

of the penalty shall be 5% for each month, or fraction of a

19

month, during which the failure continues, not to exceed 25% in

20

the aggregate.

21

(c)  Timely payment.--If a county determines that a producer

22

has not made a timely payment of the fee, the county shall send

23

a written notice of the amount of the deficiency to the producer

24

within 30 days from the date of determining the deficiency. If

25

the producer has not provided a complete and accurate statement

26

of the volume of natural gas extracted for the payment period,

27

the county may estimate the volume in its deficiency notice.

28

(d)  Remedies.--The remedies provided under this chapter

29

shall be in addition to any other remedies provided at law or in

30

equity.

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1

(e)  Lien.--Fines, fees, interest and penalties shall be

2

collectible in the manner provided by law for the collection of

3

debts. If the producer liable to pay any amount neglects or

4

refuses to pay the amount after demand, the amount, together

5

with costs that may accrue, shall be a judgment in favor of the

6

county upon the property of the producer, if the judgment has

7

been entered and docketed of record by the prothonotary of the

8

county where the property is situated.

9

§ 3506.5.  Examinations.

10

(a)  Access.--A county which has imposed a fee under this

11

chapter, or its authorized agents or representatives, shall:

12

(1)  Have access to the books, papers and records of any

13

producer in order to verify the accuracy and completeness of

14

a report filed or fee paid under this chapter.

15

(2)  Require and compel the preservation and production

16

of all books, papers and records for any period deemed proper

17

not to exceed three years from the end of the calendar year

18

to which the records relate.

19

(3)  Examine any employee of a producer concerning the

20

severing of natural gas subject to a fee or any matter

21

relating to the enforcement of this chapter.

22

(b)  Unauthorized disclosure.--

23

(1)  Any information obtained by a county as a result of

24

any report, examination, investigation or hearing under this

25

chapter shall be confidential and shall be exempt from

26

disclosure under the provisions of the act of February 14,

27

2008 (P.L.6, No.3), known as the Right-to-Know Law, and shall

28

not be disclosed except in accordance with judicial order or

29

as otherwise provided by law.

30

(2)  An individual unlawfully divulging the information

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1

described under this subsection commits a misdemeanor and

2

shall, upon conviction, be sentenced to pay a fine of not

3

more than $1,000 and costs of prosecution or to imprisonment

4

for not more than one year, or both.

5

§ 3507.  Deposit of fees.

6

(a)  Establishment.--Each county imposing a fee under this

7

chapter shall establish an interest-bearing account designed

8

solely for fees.

9

(b)  Deposit.--All fees collected by a county imposing a fee

10

under this chapter shall be deposited into the account described

11

under subsection (a).

12

§ 3508.  Allocation and distribution of fees.

13

(a)  Allocation of fees.--The fees deposited into the account

14

established under section 3507 (relating to deposit of fees)

15

shall be allocated as follows:

16

(1)  Seventy-five percent of the fees shall be allocated

17

to the county and its municipalities in the manner provided

18

under subsection (b).

19

(2)  Twenty-five percent of the fees shall be allocated

20

to the Commonwealth and distributed in the manner provided

21

under subsections (c) and (d).

22

(b)  Distribution of fees to county and municipalities.--The

23

fees allocated to the county and its municipalities under

24

subsection (a)(1) shall be distributed as follows:

25

(1)  Thirty-six percent of the fees shall be retained by

26

the county where the producing unconventional wells are

27

located.

28

(2)  Thirty-seven percent of the fees shall be

29

distributed to the municipalities where producing

30

unconventional wells are located. The amount for each

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1

municipality shall be determined using a formula that divides

2

the number of producing unconventional wells in the

3

municipality by the number of producing unconventional wells

4

in the county and multiplies the resulting percentage by the

5

amount available for distribution under this subparagraph.

6

(3)  Twenty-seven percent of the fees shall be

7

distributed to all municipalities in the county where

8

producing unconventional wells are located as follows:

9

(i)  Fifty percent shall be distributed to all

10

municipalities using a formula that divides the

11

population of the municipality within the county by the

12

total population of the county and multiplies the

13

resulting percentage by the amount available for

14

distribution to the county under this subparagraph.

15

(ii)  Fifty percent shall be distributed to each

16

municipality using a formula that divides the highway

17

mileage of the municipality within the county by the

18

total highway mileage of the county and multiplies the

19

resulting percentage by the amount available for

20

distribution to the county under this subparagraph.

21

(c)  Distribution of fees to Commonwealth.--The fees

22

allocated to the Commonwealth under subsection (a)(2) shall be

23

remitted to the Commonwealth for deposit into a restricted

24

account in the General Fund of the Commonwealth dedicated solely

25

for fees. The funds are hereby appropriated and shall be

26

distributed as follows and as set forth under subsection (e):

27

(1)  Seventy percent to the Department of Transportation

28

for road, bridge, rail and other transportation

29

infrastructure improvements to address impacts from

30

unconventional national gas development.

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1

(2)  Ten and one-half percent to the department, not to

2

exceed $10,000,000 annually, for the regulation of

3

unconventional gas wells and the plugging of abandoned and

4

orphan gas wells within the Commonwealth.

5

(3)  Seven and one-half percent to the Public Utility

6

Commission, not to exceed $2,000,000 annually, for the

7

enhancement, inspection and enforcement of pipeline safety

8

standards as required by law related to the safe transport of

9

gas and hazardous liquids.

10

(4)  Four and one-half percent to the Pennsylvania

11

Emergency Management Agency, not to exceed $2,000,000

12

annually, for emergency response planning, training and

13

coordination associated with unconventional natural gas

14

production activity within the Commonwealth.

15

(5)  Three and three-quarters percent to the Department

16

of Health, not to exceed $2,000,000 annually, for collecting

17

and disseminating information, preparing and conducting

18

health care provider outreach and education and investigating

19

health-related complaints and other uses associated with

20

unconventional natural gas production activity within this

21

Commonwealth.

22

(6)  Three and three-quarters percent to the Office of

23

State Fire Commissioner, not to exceed $2,000,000 annually,

24

for the development, delivery and sustainment of training

25

programs for first responders and acquisition of specialized

26

equipment necessary for emergency response.

27

(d)  Additional distribution of fees to Department of

28

Transportation.--In addition to the distribution of fees to the

29

Department of Transportation under subsection (c)(1), any funds

30

remaining in the restricted account after distribution of fees

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1

under subsection (c)(2), (3), (4), (5) and (6) are hereby

2

appropriated shall be distributed to the Department of

3

Transportation.

4

(e)  Continuing nature.--

5

(1)  The distributions under subsections (c) and (d)

6

shall be executive authorizations.

7

(2)  The appropriations under subsections (c) and (d)

8

shall be continuing appropriations. Those appropriations

9

shall not lapse at the end of any fiscal year.

10

(f)  Timing of distribution.--A county shall distribute the

11

fees authorized under this chapter within 45 days after the date

12

the fees are received.

13

(g)  Use of funds by counties and municipalities.--A county

14

or municipality receiving fees under this section shall make use

15

of the fees received only for the following purposes associated

16

with unconventional natural gas production within the county or

17

municipality:

18

(1)  Construction, reconstruction, maintenance and repair

19

of roadways, bridges and public infrastructure.

20

(2)  Water, storm water and sewer systems, including

21

construction, reconstruction, maintenance and repair.

22

(3)  Emergency preparedness and response, including

23

police, fire, hazardous material response, 911, equipment

24

acquisition, responder recruitment and other services.

25

(4)  Preservation and reclamation of surface and

26

subsurface waters and water supplies, including drinking

27

water monitoring and testing.

28

(5)  Records management, geographic information systems

29

and information technology.

30

(6)  Projects that increase the availability of

- 17 -

 


1

affordable housing, either for sale or rental, to residents

2

whose annual income is less than the area median income.

3

(7)  Delivery of social services, including domestic

4

relations, drug and alcohol treatment, job training and

5

counseling.

6

(8)  Assistance to the county conservation district for

7

inspection, oversight and enforcement of unconventional

8

natural gas development.

9

(9)  County or municipal planning.

10

(10)  Local tax reduction.

11

§ 3509.  Calculation of payments.

12

(a)  General rule.--The county treasurer of a county that

13

imposes and collects the unconventional gas well impact fee

14

shall certify the number of all unconventional gas wells located

15

within each municipality of the county based upon the

16

appropriate reports provided by the department.

17

(b)  Payments to municipalities.--The county treasurer of a

18

county that imposes and collects the unconventional gas well

19

impact fee shall pay to municipalities the amounts required

20

under this subchapter.

21

§ 3510.  Recordkeeping and State reporting.

22

(a)  General rule.--Commencing in calendar year 2012 and each

23

year thereafter, before December 1, each county that imposes and

24

collects the unconventional gas well impact fee authorized by

25

this subchapter shall prepare and deliver a report to the

26

Secretary of the Senate and the Chief Clerk of the House of

27

Representatives detailing the expenditure of the funds collected

28

under this subchapter.

29

(b)  Audit.--The Department of Community and Economic

30

Development may audit a county's and municipality's expenditure

- 18 -

 


1

of the funds.

2

(c)  Availability of records.--A county and municipality that

3

receives the funds shall make its financial records and other

4

documents relating to its expenditure of the funds available to

5

the department.

6

(d)  Time.--Reports shall be prepared no later than June 30

7

of the year following the initial receipt of any fees

8

distributed under this section and each June 30 thereafter.

9

(e)  Location.--Reports shall be published on the county or

10

municipality's publicly accessible Internet website. If a

11

municipality does not maintain a publicly accessible Internet

12

website, the municipality shall provide its report to the

13

county, which shall publish the municipality's report on the

14

county's publicly accessible Internet website.

15

§ 3511.  Expiration.

16

(a)  Notice.--The Secretary of the Commonwealth shall, upon

17

the effective date of an act authorizing a severance tax on each

18

unconventional well producing gas in this Commonwealth, submit

19

for publication in the Pennsylvania Bulletin notice of that

20

fact.

21

(b)  Date.--This chapter shall expire on the date of the

22

publication of the notice under subsection (a).

23

SUBCHAPTER B

24

(RESERVED)

25

Section 2.  Title 58 is amended by adding parts to read:

26

PART I

27

PRELIMINARY PROVISIONS

28

(RESERVED)

29

PART II

30

(RESERVED)

- 19 -

 


1

PART III

2

UTILIZATION

3

Chapter

4

31.  (Reserved)

5

32.  Development

6

CHAPTER 31

7

(RESERVED)

8

CHAPTER 32

9

DEVELOPMENT

10

Subchapter

11

A.  Preliminary Provisions

12

B.  General Requirements

13

C.  Underground Gas Storage

14

D.  Eminent Domain

15

E.  Enforcement and Remedies

16

F.  Miscellaneous Provisions

17

SUBCHAPTER A

18

PRELIMINARY PROVISIONS

19

Sec.

20

3201.  Scope of chapter.

21

3202.  Declaration of purpose.

22

3203.  Definitions.

23

§ 3201.  Scope of chapter.

24

This chapter relates to oil and gas.

25

§ 3202.  Declaration of purpose.

26

The purposes of this chapter are to:

27

(1)  Permit optimal development of oil and gas resources

28

of this Commonwealth consistent with protection of the

29

health, safety, environment and property of Pennsylvania

30

citizens.

- 20 -

 


1

(2)  Protect the safety of personnel and facilities

2

employed in coal mining or exploration, development, storage

3

and production of natural gas or oil.

4

(3)  Protect the safety and property rights of persons

5

residing in areas where mining, exploration, development,

6

storage or production occurs.

7

(4)  Protect the natural resources, environmental rights

8

and values secured by the Constitution of Pennsylvania.

9

§ 3203.  Definitions.

10

The following words and phrases when used in this chapter

11

shall have the meanings given to them in this section unless the

12

context clearly indicates otherwise:

13

"Abandoned well."  Any of the following:

14

(1)  A well:

15

(i)  that has not been used to produce, extract or

16

inject any gas, petroleum or other liquid within the

17

preceding 12 months;

18

(ii)  for which equipment necessary for production,

19

extraction or injection has been removed; or

20

(iii)  considered dry and not equipped for production

21

within 60 days after drilling, redrilling or deepening.

22

(2)  The term does not include wells granted inactive

23

status.

24

"Alteration."  An operation which changes the physical

25

characteristics of a well bore, including stimulation or

26

removing, repairing or changing the casing. For the purpose of

27

this chapter only, the term does not include:

28

(1)  Repairing or replacing of the casing if the activity

29

does not affect the depth or diameter of the well bore, the

30

use or purpose of the well does not change and the activity

- 21 -

 


1

complies with regulations promulgated under this chapter,

2

except that this exclusion does not apply:

3

(i)  to production casings in coal areas when the

4

production casings are also the coal protection casings;

5

or

6

(ii)  when the method of repairing or replacing the

7

casing would affect the coal protection casing.

8

(2)  Stimulation of a well.

9

"Board."  The Oil and Gas Technical Advisory Board.

10

"Bridge."  An obstruction placed in a well at any depth.

11

"Building."  An occupied structure with walls and roof within

12

which persons live or customarily work.

13

"Casing."  A string or strings of pipe commonly placed in

14

wells drilled for natural gas or petroleum.

15

"Cement" or "cement grout."  Any of the following:

16

(1)  Hydraulic cement properly mixed with water only.

17

(2)  A mixture of materials adequate for bonding or

18

sealing of well bores as approved by regulations promulgated

19

under this chapter.

20

"Coal mine."  Any of the following:

21

(1)  Operations in a coal seam, including excavated

22

portions, abandoned portions and places actually being

23

worked.

24

(2)  Underground workings and shafts, slopes, tunnels and

25

other ways and openings, including those which are in the

26

course of being sunk or driven, along with all roads and

27

facilities connected with them below the surface.

28

"Coal operator."  A person that operates or proposes to

29

operate a coal mine as an owner or lessee.

30

"Completion of a well."  The date after treatment, if any,

- 22 -

 


1

that the well is properly equipped for production of oil or gas,

2

or, if the well is dry, the date that the well is abandoned.

3

"Department."  The Department of Environmental Protection of

4

the Commonwealth.

5

"Drilling."  The drilling or redrilling of a well or the

6

deepening of an existing well.

7

"Environmental law."  Any of the following:

8

(1)  A Federal statute pertaining to oil and gas

9

operations, public health, safety, natural resources or the

10

environment.

11

(2)  A Federal regulation, rule, administrative order or

12

agency interpretation or guidance pertaining to oil and gas

13

operations, public health, safety, natural resources or the

14

environment.

15

(3)  A Federal judicial decision pertaining to oil and

16

gas operations, public health, safety, natural resources or

17

the environment.

18

(4)  A Commonwealth statute pertaining to oil and gas

19

operations, public health, safety, natural resources or the

20

environment. The term includes any of the following:

21

(i)  The act of June 22, 1937 (P.L.1987, No.394),

22

known as The Clean Streams Law.

23

(ii)  The act of January 8, 1960 (1959 P.L.2119,

24

No.787), known as the Air Pollution Control Act.

25

(iii)  The act of July 7, 1961 (P.L.518, No.268),

26

known as the Delaware River Basin Compact.

27

(iv)  The act of July 25, 1961 (P.L.825, No.359),

28

known as the Oil and Gas Conservation Law.

29

(v)  The act of July 17, 1968 (P.L.368, No.181),

30

referred to as the Susquehanna River Basin Compact Law.

- 23 -

 


1

(vi)  The act of October 4, 1978 (P.L.864, No.167),

2

known as the Storm Water Management Act.

3

(vii)  The act of November 26, 1978 (P.L.1375,

4

No.325), known as the Dam Safety and Encroachments Act.

5

(viii)  The act of July 7, 1980 (P.L.380, No.97),

6

known as the Solid Waste Management Act.

7

(ix)  The act of June 23, 1982 (P.L.597, No.170),

8

known as the Wild Resource Conservation Act.

9

(x)  The act of May 1, 1984 (P.L.206, No.43), known

10

as the Pennsylvania Safe Drinking Water Act.

11

(xi)  The act of July 10, 1984 (P.L.688, No.147),

12

known as the Radiation Protection Act.

13

(xii)  The act of October 5, 1984 (P.L.734, No.159),

14

known as the Worker and Community Right-to-Know Act.

15

(xiii)  The act of December 18, 1984 (P.L.1069,

16

No.214), known as the Coal and Gas Resource Coordination

17

Act.

18

(xiv)  The act of December 19, 1984 (P.L.1093,

19

No.219), known as the Noncoal Surface Mining Conservation

20

and Reclamation Act.

21

(xv)  The act of October 18, 1988 (P.L.756, No.108),

22

known as the Hazardous Sites Cleanup Act.

23

(xvi)  The act of July 6, 1989 (P.L.169, No.32),

24

known as the Storage Tank and Spill Prevention Act.

25

(xvii)  The act of December 7, 1990 (P.L.639,

26

No.165), known as the Hazardous Material Emergency

27

Planning and Response Act.

28

(xviii)  The act of May 19, 1995 (P.L.4, No.2), known

29

as the Land Recycling and Environmental Remediation

30

Standards Act.

- 24 -

 


1

(xix)  The act of July 4, 2008 (P.L.526, No.43),

2

known as the Great Lakes-St. Lawrence River Basin Water

3

Resources Compact.

4

(xx)  The provisions of 27 Pa.C.S. Ch. 31 (relating

5

to water resources planning)

6

(xxi)  The provisions of 27 Pa.C.S. Ch. 41 (relating

7

to environmental laboratory accreditation).

8

(xxii)  The provisions of 27 Pa.C.S. Ch. 62 (relating

9

to waste transportation safety).

10

(xxiii)  The provisions of 30 Pa.C.S. (relating to

11

fish).

12

(xxiv)  The provisions of 34 Pa.C.S. (relating to

13

game).

14

(5)  A regulation, rule, administrative order or agency

15

interpretation or guidance of a Commonwealth agency

16

pertaining to oil and gas operations, public health, safety,

17

natural resources or the environment.

18

(6)  A decision of a court of this Commonwealth

19

pertaining to oil and gas operations, public health, safety,

20

natural resources or the environment.

21

"Fresh groundwater."  Water in that portion of the generally

22

recognized hydrologic cycle which occupies the pore spaces and

23

fractures of saturated subsurface materials.

24

"Gas."  Any of the following:

25

(1)  A fluid, combustible or noncombustible, which is

26

produced in a natural state from the earth and maintains a

27

gaseous or rarified state at standard temperature of 60

28

degrees Fahrenheit and pressure 14.7 PSIA.

29

(2)  Any manufactured gas, byproduct gas or mixture of

30

gases.

- 25 -

 


1

"Inactivate."  To shut off the vertical movement of gas in a

2

gas storage well by means of a temporary plug or other suitable

3

device or by injecting bentonitic mud or other equally nonporous

4

material into the well.

5

"Linear foot."  A unit or measurement in a straight line on a

6

horizontal plane.

7

"Oil."  Hydrocarbons in liquid form at standard temperature

8

of 60 degrees Fahrenheit and pressure 14.7 PSIA, also referred

9

to as petroleum.

10

"Oil and gas operations."  Any of the following:

11

(1)  Exploration for oil and gas. This paragraph includes

12

the conduct of seismic operations.

13

(2)  Siting and locating of oil and gas wells.

14

(3)  Drilling, stimulation and completion of oil and gas

15

wells.

16

(4)  Generation, processing, treatment, storage,

17

transportation and disposal of fresh water, wastewater,

18

wastes, chemicals and other materials directly associated

19

with drilling, stimulation and completion of oil and gas

20

wells.

21

(5)  Production, gathering and collection of oil or gas.

22

(6)  Compression, transmission, measurement and storage

23

of oil or gas.

24

(7)  Reclamation activities.

25

(8)  Construction and use of drilling rigs and pipelines.

26

This paragraph includes equipment directly related to the

27

activities set forth in this paragraph.

28

(9)  Construction and use of access roads, well sites,

29

drilling pads, impoundments, compression stations, processing

30

stations, meter stations and storage tanks. This paragraph

- 26 -

 


1

includes buildings, facilities or structures, which are

2

directly related to the activities set forth in this

3

paragraph. This paragraph does not include ancillary support,

4

supply and service facilities, the location of which is not

5

dependent on the location of specific wells or pipelines.

6

"Operating coal mine."  Any of the following:

7

(1)  An underground coal mine which is producing coal or

8

has been in production of coal at any time during the 12

9

months immediately preceding the date its status is put in

10

question, including contiguous worked-out or abandoned coal

11

mines to which it is connected underground.

12

(2)  An underground coal mine to be established or

13

reestablished under paragraph (1).

14

"Operating well."  A well that is not plugged and abandoned.

15

"Orphan well."  A well abandoned prior to April 18, 1985,

16

that has not been affected or operated by the present owner or

17

operator and from which the present owner, operator or lessee

18

has received no economic benefit other than as a landowner or

19

recipient of a royalty interest from the well.

20

"Outside coal boundaries."  When used in conjunction with the

21

term "operating coal mine," the boundaries of the coal acreage

22

assigned to the coal mine under an underground mine permit

23

issued by the Department of Environmental Protection.

24

"Owner."  A person who owns, manages, leases, controls or

25

possesses a well or coal property. The term does not apply to

26

orphan wells, except where the Department of Environmental

27

Protection determines a prior owner or operator benefited from

28

the well as provided in section 3220(a) (relating to plugging

29

requirements).

30

"Person."  An individual, association, partnership,

- 27 -

 


1

corporation, political subdivision or agency of the Federal

2

Government, State government or other legal entity.

3

"Petroleum."  Hydrocarbons in liquid form at standard

4

temperature of 60 degrees Fahrenheit and pressure 14.7 PSIA,

5

also referred to as oil.

6

"Pillar."  A solid block of coal surrounded by either active

7

mine workings or a mined-out area.

8

"Plat."  A map, drawing or print accurately drawn to scale

9

showing the proposed or existing location of a well or wells.

10

"Reservoir protective area."  The area surrounding a storage

11

reservoir boundary, but within 2,000 linear feet of the storage

12

reservoir boundary, unless an alternate area has been designated

13

by the Department of Environmental Protection, which is deemed

14

reasonably necessary to afford protection to the reservoir,

15

under a conference held in accordance with section 3251

16

(relating to conferences).

17

"Retreat mining."  Removal of coal pillars, ribs and stumps

18

remaining after development mining has been completed in that

19

section of a coal mine.

20

"Secretary."  The Secretary of Environmental Protection of

21

the Commonwealth.

22

"Storage operator."  A person who operates or proposes to

23

operate a storage reservoir as an owner or lessee.

24

"Storage reservoir."  That portion of a subsurface geological

25

stratum into which gas is or may be injected for storage

26

purposes or to test suitability of the stratum for storage.

27

"Unconventional well."  A bore hole drilled or being drilled

28

for the purpose of or to be used for producing oil or gas from a

29

geological shale formation existing below the base of the Elk

30

Sandstone or its geologic equivalent stratigraphic interval

- 28 -

 


1

where oil or gas generally cannot be produced at economic flow

2

rates or in economic volumes except by one of the following:

3

(1)  Vertical or horizontal well bores stimulated by

4

hydraulic fracture treatments.

5

(2)  Using multilateral well bores or other techniques to

6

expose more of the formation of the well bore.

7

"Water management plan."  A plan associated with drilling or

8

completing a well in an unconventional formation that

9

demonstrates that the withdrawal and use of water sources

10

protects those sources as required by law and protects public

11

health, safety and welfare.

12

"Water purveyor."  Any of the following:

13

(1)  The owner or operator of a public water system as

14

defined in section 3 of the act of May 1, 1984 (P.L.206,

15

No.43), known as the Pennsylvania Safe Drinking Water Act.

16

(2)  Any person subject to the act of June 24, 1939

17

(P.L.842, No.365), referred to as the Water Rights Law.

18

"Water source."

19

(1)  Any of the following:

20

(i)  Waters of this Commonwealth.

21

(ii)  A source of water supply used by a water

22

purveyor.

23

(iii)  Mine pools and discharges.

24

(iv)  Any other waters that are used for drilling or

25

completing a well in an unconventional formation.

26

(2)  The term does not include flowback or production

27

waters or other fluids:

28

(i)  which are used for drilling or completing a well

29

in an unconventional formation; and

30

(ii)  which do not discharge into waters of this

- 29 -

 


1

Commonwealth.

2

"Well."  A bore hole drilled or being drilled for the purpose

3

of, or to be used for, producing, extracting or injecting gas,

4

petroleum or another liquid related to oil or gas production or

5

storage, including brine disposal, but excluding a bore hole

6

drilled to produce potable water. The term does not include a

7

bore hole drilled or being drilled for the purpose of, or to be

8

used for:

9

(1)  Systems of monitoring, producing or extracting gas

10

from solid waste disposal facilities, if the bore hole is a

11

well subject to the act of July 7, 1980 (P.L.380, No.97),

12

known as the Solid Waste Management Act, which does not

13

penetrate a workable coal seam.

14

(2)  Degasifying coal seams, if the bore hole is:

15

(i)  used to vent methane to the outside atmosphere

16

from an operating coal mine; regulated as part of the

17

mining permit under the act of June 22, 1937 (P.L.1987,

18

No.394), known as The Clean Streams Law, and the act of

19

May 31, 1945 (P.L.1198, No.418), known as the Surface

20

Mining Conservation and Reclamation Act; and drilled by

21

the operator of the operating coal mine for the purpose

22

of increased safety; or

23

(ii)  used to vent methane to the outside atmosphere

24

under a federally funded or State-funded abandoned mine

25

reclamation project.

26

"Well control emergency."  An incident during drilling,

27

operation, workover or completion that, as determined by the

28

department, poses a threat to public health, welfare or safety,

29

including a loss of circulation fluids, kick, casing failure,

30

blowout, fire and explosion.

- 30 -

 


1

"Well control specialist."  Any person trained to respond to

2

a well control emergency with a current certification from a

3

well control course accredited by the International Association

4

of Drilling Contractors or other organization approved by the

5

department.

6

"Well operator" or "operator."  Any of the following:

7

(1)  The person designated as operator or well operator

8

on the permit application or well registration.

9

(2)  If a permit or well registration was not issued, a

10

person who locates, drills, operates, alters or plugs a well

11

or reconditions a well with the purpose of production from

12

the well.

13

(3)  If a well is used in connection with underground

14

storage of gas, a storage operator.

15

"Wetland."  Areas inundated or saturated by surface or

16

groundwater at a frequency and duration sufficient to support,

17

and which normally support, a prevalence of vegetation typically

18

adapted for life in saturated soil conditions, including swamps,

19

marshes, bogs and similar areas.

20

"Workable coal seams."  A coal seam which:

21

(1)  is actually being mined in the area in question

22

under this chapter by underground methods; or

23

(2)  in the judgment of the Department of Environmental

24

Protection, can reasonably be expected to be mined by

25

underground methods.

26

SUBCHAPTER B

27

GENERAL REQUIREMENTS

28

Sec.

29

3211.  Well permits.

30

3212.  Permit objections.

- 31 -

 


1

3212.1.  Comments by municipalities.

2

3213.  Well registration and identification.

3

3214.  Inactive status.

4

3215.  Well location restrictions.

5

3215.1.  General restrictions.

6

3216.  Well site restoration.

7

3217.  Protection of fresh groundwater and casing requirements.

8

3218.  Protection of water supplies.

9

3219.  Use of safety devices.

10

3219.1.  Well control emergency response.

11

3220.  Plugging requirements.

12

3221.  Alternative methods.

13

3222.  Well reporting requirements.

14

3223.  Notification and effect of well transfer.

15

3224.  Coal operator responsibilities.

16

3225.  Bonding.

17

3226.  Oil and Gas Technical Advisory Board.

18

§ 3211.  Well permits.

19

(a)  Permit required.--No person shall drill or alter a well,

20

except for alterations which satisfy the requirements of

21

subsection (j), without having first obtained a well permit

22

under subsections (b), (c), (d) and (e), or operate an abandoned

23

or orphan well unless in compliance with subsection (l). A copy

24

of the permit shall be kept at the well site during drilling or

25

alteration of the well. No person shall be required to obtain a

26

permit to redrill a nonproducing well if the redrilling:

27

(1)  has been evaluated and approved as part of an order

28

from the department authorizing cleaning out and plugging or

29

replugging a nonproducing well under section 13(c) of the act

30

of December 18, 1984 (P.L.1069, No.214), known as the Coal

- 32 -

 


1

and Gas Resource Coordination Act; and

2

(2)  is incidental to a plugging or replugging operation

3

and the well is plugged within 15 days of redrilling.

4

(b)  Plat.--

5

(1)  The permit application shall be accompanied by a

6

plat prepared by a competent engineer or a competent

7

surveyor, on forms furnished by the department, showing the

8

political subdivision and county in which the tract of land

9

upon which the well to be drilled is located; a list of

10

municipalities adjacent to the well site; the name of the

11

surface landowner of record and lessor; the name of all

12

surface landowners and water purveyors whose water supplies

13

are within 1,000 feet of the proposed well location or, in

14

the case of an unconventional well, within 2,500 feet of the

15

proposed well location; the name of the owner of record or

16

operator of all known underlying workable coal seams; the

17

acreage in the tract to be drilled; the proposed location of

18

the well determined by survey, courses and distances of the

19

location from two or more permanent identifiable points or

20

landmarks on the tract boundary corners; the proposed angle

21

and direction of the well if the well is to be deviated

22

substantially from a vertical course; the number or other

23

identification to be given the well; the workable coal seams

24

underlying the tract of land upon which the well is to be

25

drilled or altered and which shall be cased off under section

26

3217 (relating to protection of fresh groundwater and casing

27

requirements); and any other information needed by the

28

department to administer this chapter.

29

(2)  The applicant shall forward by certified mail a copy

30

of the plat to the surface landowner; the municipality in

- 33 -

 


1

which the tract of land upon which the well to be drilled is

2

located; the municipalities adjacent to the well; all surface

3

landowners and water purveyors, whose water supplies are

4

within 1,000 feet of the proposed well location or, in the

5

case of an unconventional well, within 2,500 feet of the

6

proposed well location; the owner and lessee of any coal

7

seams; and each coal operator required to be identified on

8

the well permit application.

9

(b.1)  Notification.--The applicant shall submit proof of

10

notification with the well permit application. Notification of

11

surface owners shall be performed by sending notice to those

12

persons to whom the tax notices for the surface property are

13

sent, as indicated in the assessment books in the county in

14

which the property is located. Notification of surface

15

landowners or water purveyors whose water supplies are within

16

1,000 feet of the proposed well location shall be on forms, and

17

in a manner prescribed by the department, sufficient to identify

18

the rights afforded those persons under section 3218 (relating

19

to protection of water supplies) and to advise them of the

20

advantages of taking their own predrilling or prealteration

21

survey.

22

(b.2)  Approval.--If the applicant submits to the department

23

written approval of the proposed well location by the surface

24

landowner and the coal operator, lessee or owner of any coal

25

underlying the proposed well location and no objections are

26

raised by the department within 15 days of filing, or if no

27

approval has been submitted and no objections are made to the

28

proposed well location within 15 days from receipt of notice by

29

the department, the surface landowner or any coal operator,

30

lessee or owner, the written approval shall be filed and become

- 34 -

 


1

a permanent record of the well location, subject to inspection

2

at any time by any interested person.

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 regulation of the

16

department, which bears a reasonable relationship to the cost of

17

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

- 35 -

 


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)  (i)  Either:

9

(A)  the department finds that the applicant, or

10

any parent or subsidiary corporation of the

11

applicant, is in continuing violation of this

12

subchapter, any other statute administered by the

13

department, any rule or regulation promulgated under

14

this subchapter or a statute administered by the

15

department or any plan approval, permit or order of

16

the department, unless the violation is being

17

corrected to the satisfaction of the department; or

18

(B)  the applicant, or any parent or subsidiary

19

corporation of the applicant, has shown a lack of

20

intention or ability to comply with the laws, rules,

21

regulations, approvals, permits or orders referred to

22

under clause (A).

23

(ii)  The right of the department to deny a permit

24

under subparagraph (i) shall not take effect until:

25

(A)  the department has taken a final action on

26

the violations;

27

(B)  (I)  the applicant has not appealed the

28

final action in accordance with the act of July

29

13, 1988 (P.L.530, No.94), known as the

30

Environmental Hearing Board Act; or

- 36 -

 


1

(II)  if an appeal has been filed, no

2

supersedeas has been issued.

3

(e.2)  Expedited review of applications.--

<--

4

(1)  The department may provide expedited reviews of

5

applications within time frames specified by the department

6

to applicants for permits and other approvals if the

7

applicant pays an additional fee determined by the department

8

based upon any incremental costs to the department associated

9

with the review. The reviews may be performed by persons

10

selected by the department who are not Commonwealth employees

11

if the department is the entity that takes action on the

12

application or by county conservation districts under an

13

agreement with the department.

14

(2)  The permits and approvals may be those issued by the

15

department under this act and for activities associated with

16

oil and gas activities under the following:

17

(i)  The act of June 22, 1937 (P.L.1987, No.394),

18

known as The Clean Streams Law.

19

(ii)  The act of January 8, 1960 (1959 P.L.2119,

20

No.787), known as the Air Pollution Control Act.

21

(iii)  The act of November 26, 1978 (P.L.1375,

22

No.325), known as the Dam Safety and Encroachments Act.

23

(iv)  The act of July 7, 1980 (P.L.380, No.97), known

24

as the Solid Waste Management Act.

25

(v)  The act of May 1, 1984 (P.L.206, No.43), known

26

as the Pennsylvania Safe Drinking Water Act.

27

(vi)  The act of July 10, 1984 (P.L.688, No.147),

28

known as the Radiation Protection Act.

29

(vii)  The act of December 19, 1984 (P.L.1093,

30

No.219), known as the Noncoal Surface Mining Conservation

- 37 -

 


1

and Reclamation Act.

2

(viii)  The act of October 18, 1988 (P.L.756,

3

No.108), known as the Hazardous Sites Cleanup Act.

4

(ix)  The act of July 6, 1989 (P.L.169, No.32), known

5

as the Storage Tank and Spill Prevention Act.

6

(3)  The department may implement this subsection by

7

policy or by regulation promulgated by the Environmental

8

Quality Board.

9

(4)  The department shall consider relevant factors in

10

administering this section, including:

11

(i)  Legal requirements under applicable Federal and

12

State laws and regulations, including requirements for

13

public comment, and review by the Environmental

14

Protection Agency.

15

(ii)  Administrative completeness of applications.

16

(iii)  Adjustment of fees over time based on changes

17

in program costs.

18

(iv)  Applications submitted under seal by a

19

professional engineer, professional geologist or other

20

person licensed by the Department of State.

21

(v)  Actual or potential impacts to Federal and State

22

threatened and endangered species.

23

(5)  This subsection shall not apply to permits or

24

approvals for activities that may impact:

25

(i)  A water that is classified as high quality or

26

exceptional value under 25 Pa. Code Ch. 93 (relating to

27

water quality standards).

28

(ii)  Exceptional value wetlands as determined under

29

25 Pa. Code Ch. 105 (relating to dam safety and waterway

30

management).

- 38 -

 


1

(iii)  Public water supplies.

2

(6)  Fees collected under this subsection shall be

3

deposited into the fund for which fees are otherwise

4

deposited for the applicable permit or approval.

<--

5

(f)  Drilling.--

6

(1)  Upon issuance of a permit, the well operator may

7

drill at the location shown on the plat after providing the

8

department, the surface landowner and the local political

9

subdivision in which the well is to be located 24 hours'

10

notice of the date that drilling will commence.

11

(2)  The unconventional well operator shall provide the

12

department 24 hours' notice prior to cementing all casing

13

strings, conducting pressure tests of the production casing,

14

stimulation and abandoning or plugging an unconventional

15

well.

16

(3)  In noncoal areas where more than one well is to be

17

drilled as part of the same development project, only the

18

first well of the project need be located by survey.

19

Remaining wells of the project shall be shown on the plat in

20

a manner prescribed by regulation.

21

(4)  Prior to drilling each additional project well, the

22

well operator shall notify the department and provide

23

reasonable notice of the date on which drilling will

24

commence.

25

(5)  Whenever, before or during the drilling of a well

26

not within the boundaries of an operating coal mine, the well

27

operator encounters conditions of a nature which renders

28

drilling of the bore hole or a portion thereof impossible, or

29

more hazardous than usual, the well operator, upon verbal

30

notice to the department, may immediately plug all or part of

- 39 -

 


1

the bore hole, if drilling has occurred, and commence a new

2

bore hole not more than 50 feet from the old bore hole if the

3

location of the new bore hole does not violate section 3215

4

(relating to well location restrictions) and, in the case of

5

a well subject to act of July 25, 1961 (P.L.825, No.359),

6

known as the Oil and Gas Conservation Law, if the new

7

location complies with existing laws, regulations and spacing

8

orders and the new bore hole is at least 330 feet from the

9

nearest lease boundary.

10

(6)  Within ten days of commencement of the new bore

11

hole, the well operator shall file with the department a

12

written notice of intention to plug, a well record, a

13

completion report, a plugging certificate for the original

14

bore hole and an amended plat for the new bore hole.

15

(7)  The well operator shall forward a copy of the

16

amended plat to the surface landowner identified on the well

17

permit application within ten days of commencement of the new

18

well bore.

19

(g)  Posting.--The well permit number and operator's name,

20

address and telephone number shall be conspicuously posted at

21

the drilling site prior to commencement of drilling.

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

- 40 -

 


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. Nothing in this subsection shall

7

be construed to rescind the provisions pertaining to drilling

8

permits contained in Chapter 34.

9

(j)  Exceptions.--The Environmental Quality Board may

10

establish by regulation certain categories of alterations of

11

permitted or registered wells for which permitting requirements

12

of this section shall not apply. A well operator or owner who

13

proposes to conduct the alteration activity shall first obtain a

14

permit or registration modification from the department. The

15

Environmental Quality Board shall promulgate regulations as to

16

the requirements for modifications.

17

(k)  No transfer permitted.--No permit issued under this

18

section or registration issued under section 3213 (relating to

19

well registration and identification) may be transferred without

20

prior approval of the department. A request for approval of a

21

transfer shall be on the forms, and in the manner, prescribed by

22

the department. The department shall approve or deny a transfer

23

request within 45 days of receipt of a complete and accurate

24

application. The department may deny a request only for reasons

25

set forth in subsection (e.1)(4) and (5). Approval of a transfer

26

request shall permanently transfer responsibility to plug the

27

well under section 3220 to the recipient of the transferred

28

permit or registration.

29

(l)  Regulations.--The Environmental Quality Board may

30

establish by regulation requirements for the permitting and

- 41 -

 


1

operation of abandoned or orphan wells. A person who proposes to

2

conduct abandoned or orphan well operations shall first obtain a

3

permit to operate an abandoned or orphan well.

4

(m)  Water management.--The following shall apply to water

5

management:

6

(1)  No person may withdraw or use water from water

7

sources within this Commonwealth for the drilling or

8

hydraulic fracture stimulation of any natural gas well

9

completed in an unconventional gas formation, whether on or

10

off of the land where the gas well is located, except in

11

accordance with a water management plan approved by the

12

department.

13

(2)  The department shall review and approve water

14

management plans based upon a determination that the proposed

15

withdrawal, when operated in accordance with the proposed

16

withdrawal operating conditions set forth in the plan,

17

including conditions relating to quantity, withdrawal rate

18

and timing and any passby flow conditions, will:

19

(i)  not adversely affect the quantity or quality of

20

water available to other users of the same water sources;

21

(ii)  protect and maintain the designated and

22

existing uses of water sources; and

23

(iii)  not cause adverse impact to water quality in

24

the watershed considered as a whole.

25

(3)  (i)  The criteria under paragraph (2) shall be

26

presumed to be achieved if the proposed water withdrawal

27

has been approved by and is operated in accordance with

28

conditions established by the Susquehanna River Basin

29

Commission, the Delaware River Basin Commission or the

30

Great Lakes Commission, as applicable.

- 42 -

 


1

(ii)  Notwithstanding subparagraph (i), the

2

department may establish additional requirements as

3

necessary to comply with the laws of this Commonwealth.

4

(4)  In addition to the requirements under paragraphs

5

(1), (2) and (3), compliance with a department-approved water

6

management plan shall be a condition of any permit issued

7

under this chapter for the drilling or hydraulic fracture

8

stimulation of any natural gas well completed in an

9

unconventional formation and shall be deemed to satisfy the

10

laws of this Commonwealth.

11

§ 3212.  Permit objections.

12

(a)  General rule.--If a well referred to in section 3211(b)

13

(relating to well permits) will be located on a tract whose

14

surface is owned by a person other than the well operator, the

15

surface landowner affected shall be notified of the intent to

16

drill and may file objections, in accordance with section 3251

17

(relating to conferences), based on the assertion that the well

18

location violates section 3215 (relating to well location

19

restrictions) or that information in the application is untrue

20

in any material respect, within 15 days of the receipt by the

21

surface owner of the plat under section 3211(b). Receipt of

22

notice by the surface owner shall be presumed to have occurred

23

15 days from the date of the certified mailing when the well

24

operator submits a copy of the certified mail receipt sent to

25

the surface owner and an affidavit certifying that the address

26

of the surface owner to which notice was sent is the same as the

27

address listed in the assessment books in the county where the

28

property is located. If no objection is filed or none is raised

29

by the department within 15 days after receipt of the plat by

30

the surface landowner, or, if written approval by the surface

- 43 -

 


1

landowner is filed with the department and no objection is

2

raised by the department within 15 days of filing, the

3

department shall proceed to issue or deny the permit.

4

(b)  Special circumstances.--If a well referred to in section

5

3211(b) will penetrate within the outside coal boundaries of an

6

operating coal mine or a coal mine already projected and platted

7

but not yet being operated, or within 1,000 linear feet beyond

8

those boundaries, and, in the opinion of the coal owner or

9

operator, the well or a pillar of coal about the well will

10

unduly interfere with or endanger the mine, the coal owner or

11

operator affected may file objections under section 3251 to the

12

proposed location within 15 days of the receipt by the coal

13

operator of the plat under section 3211(b). If possible, an

14

alternative location at which the proposed well could be drilled

15

to overcome the objections shall be indicated. If no objection

16

to the proposed location is filed or if none is raised by the

17

department within 15 days after receipt of the plat by the coal

18

operator or owner, or, if written approval by the coal operator

19

or owner of the location is filed with the department and no

20

objection is raised by the department within 15 days of filing,

21

the department shall proceed to issue or deny the permit.

22

(c)  Procedure upon objection.--If an objection is filed by a

23

coal operator or owner or made by the department, the department

24

shall fix a time and place for a conference under section 3251

25

not more than ten days from the date of service of the objection

26

to allow the parties to consider the objection and attempt to

27

agree on a location. If they fail to agree, the department, by

28

an appropriate order, shall determine a location on the tract of

29

land as near to the original location as possible where, in the

30

judgment of the department, the well can be safely drilled

- 44 -

 


1

without unduly interfering with or endangering the mine as

2

defined in subsection (b). The new location agreed upon by the

3

parties or determined by the department shall be indicated on

4

the plat on file with the department and become a permanent

5

record upon which the department shall proceed to issue or deny

6

the permit.

7

(d)  Survey.--Within 120 days after commencement of drilling

8

operations, the coal operator shall accurately locate the well

9

by a closed survey on the same datum as the mine workings or

10

coal boundaries are mapped, file the results of the survey with

11

the department and forward a copy by certified mail to the well

12

operator.

13

§ 3212.1.  Comments by municipalities.

14

(a)  General rule.--The municipality where the tract of land

15

upon which the unconventional well to be drilled is located may

16

submit written comments to the department describing local

17

conditions or circumstances which the municipality has

18

determined should be considered by the department in rendering

19

its determination on the unconventional well permit. A comment

20

under this subsection must be submitted to the department within

21

15 days of the receipt of the plat under section 3211(b)

22

(relating to well permits). The municipality shall

23

simultaneously forward a copy of its comments to the permit

24

applicant and all other parties entitled to a copy of the plat

25

under section 3211(b), who may submit a written response. A

26

written response must be submitted to the department within ten

27

days of receipt of the comments of the municipality.

28

(b)  Consideration by department.--Comments and responses

29

under subsection (a) may be considered by the department in

30

accordance with section 3215(d) (relating to well location

- 45 -

 


1

restrictions).

2

(c)  No extension of time period.--The process outlined in

3

this section shall not extend the time period for the issuance

4

or denial of a permit beyond the time period set forth in this

5

chapter.

6

§ 3213.  Well registration and identification.

7

(a)  General rule.--On or before July 5, 1996, each person

8

who owned or operated a well in existence prior to April 18,

9

1985, which has not been registered with the department and for

10

which no drilling permit has been issued by the department,

11

shall register the well with the department. A well owner or

12

operator who registers under this subsection and a well owner or

13

operator who has previously registered a well under this chapter

14

shall, on or before July 5, 1996, identify any abandoned well on

15

property which the well owner or operator owns or leases and

16

request approval from the department for classification of the

17

well as an orphan well. Information regarding wells to be

18

registered or identified shall be provided on a form, or in a

19

manner, prescribed by the department, and shall include:

20

(1)  The name and address of the well operator and, if

21

the well operator is a corporation, partnership or person

22

nonresident of this Commonwealth, the name and address of an

23

agent for the operator upon whom notices, orders, process or

24

other communications issued under this chapter may be served.

25

(2)  The well name and the location of the well indicated

26

by a point on a 7 1/2 minute United States Geological Survey

27

topographic map or any other location description sufficient

28

to enable the department to locate the well on the ground.

29

(3)  The approximate date of drilling and completing the

30

well, its approximate depth and producing horizons, well

- 46 -

 


1

construction information and, if available, driller's logs.

2

(4)  An indemnity bond, an alternative fee in lieu of

3

bonding or other evidence of financial security submitted by

4

the well operator and deemed appropriate by the department

5

and satisfying the requirements of section 3225 (relating to

6

bonding). No bond, alternative fee or other evidence of

7

financial security shall be required for identification of an

8

orphan well. For wells drilled prior to January 30, 1956,

9

which have not been bonded, the well operator shall have five

10

years to comply with the provisions of this paragraph.

11

(5)  A registration fee of $15 per well or blanket

12

registration fee of $250 for multiple well registration

13

applications submitted simultaneously. The registration fee

14

shall be waived until July 5, 1996, and no fee shall be

15

charged for identification of an orphan well.

16

(a.1)  Orphan wells.--After July 5, 1996, a well owner, well

17

operator or other person discovering an abandoned well on

18

property purchased or leased by the well owner, well operator or

19

other person shall identify it to the department within 60 days

20

of discovery and advise the department that he is seeking

21

classification of the well as an orphan well. No fee shall be

22

required for identification.

23

(b)  Extension.--The department may extend the one-year time

24

period under subsection (a) for good cause shown. The extension

25

may not exceed a period ending two years from April 18, 1985.

26

The department may adopt and promulgate guidelines designed to

27

ensure a fair implementation of this section, recognizing the

28

practical difficulties of locating unpermitted wells and

29

complying with the reporting requirements of this chapter.

30

(c)  Installation of registration number.--The well operator

- 47 -

 


1

shall install the registration number issued by the department

2

in a legible, conspicuous and permanent manner on the well

3

within 60 days of issuance.

4

(d)  Definition.--For purposes of subsection (a)(4) and (5),

5

the term "owner" does not include an owner or possessor of

6

surface real property, on which an abandoned well is located,

7

who did not participate or incur costs in, and had no right of

8

control over, the drilling or extraction operation of the

9

abandoned well.

10

§ 3214.  Inactive status.

11

(a)  General rule.--Upon application, the department shall

12

grant inactive status for a period of five years for a permitted

13

or registered well, if the following requirements are met:

14

(1)  the condition of the well is sufficient to prevent

15

damage to the producing zone or contamination of fresh water

16

or other natural resources or surface leakage of any

17

substance;

18

(2)  the condition of the well is sufficient to stop the

19

vertical flow of fluids or gas within the well bore and is

20

adequate to protect freshwater aquifers, unless the

21

department determines the well poses a threat to the health

22

and safety of persons or property or to the environment;

23

(3)  the operator anticipates construction of a pipeline

24

or future use of the well for primary or enhanced recovery,

25

gas storage, approved disposal or other appropriate uses

26

related to oil and gas well production; and

27

(4)  the applicant satisfies the bonding requirements of

28

sections 3213 (relating to well registration and

29

identification) and 3225 (relating to bonding), except that

30

the department may require additional financial security for

- 48 -

 


1

a well on which an alternative fee is being paid in lieu of

2

bonding under section 3225(d).

3

(b)  Monitoring.--The owner or operator of a well granted

4

inactive status shall be responsible for monitoring the

5

mechanical integrity of the well to ensure that the requirements

6

of subsection (a)(1) and (2) are met and shall report the same

7

on an annual basis to the department in the manner and form

8

prescribed by departmental regulations.

9

(c)  (Reserved).

10

(d)  Return to active status.--A well granted inactive status

11

under subsection (a) shall be plugged in accordance with section

12

3220 (relating to plugging requirements) or returned to active

13

status within five years of the date inactive status was

14

granted, unless the owner or operator applies for an extension

15

of inactive status which may be granted on a year-to-year basis

16

if the department determines that the owner or operator has

17

demonstrated ability to continue meeting the requirements of

18

this section and the owner or operator certifies that the well

19

will be of future use within a reasonable period of time. An

20

owner or operator who has been granted inactive status for a

21

well which is returned to active status prior to expiration of

22

the five-year period set forth in subsection (a) shall notify

23

the department that the well has been returned to active status

24

and shall not be permitted to apply for another automatic five-

25

year period of inactive status for the well. The owner or

26

operator may make application to return the well to inactive

27

status, and the application may be approved on a year-to-year

28

basis if the department determines that the owner or operator

29

has demonstrated an ability to continue meeting the requirements

30

of this section and the owner or operator certifies that the

- 49 -

 


1

well will be of future use within a reasonable period of time.

2

The department shall approve or deny an application to extend a

3

period of inactive status or to return a well to inactive status

4

within 60 days of receipt of the application, and the

5

application shall not be unreasonably denied. If the department

6

has not completed its review of the application within 60 days,

7

the inactive status shall continue until the department has made

8

a determination on the request. If the department denies an

9

application to extend the period of inactive status or to return

10

a well to inactive status, a well owner or operator aggrieved by

11

the denial shall have the right to appeal the denial to the

12

Environmental Hearing Board within 30 days of receipt of the

13

denial. Upon cause shown by a well owner or operator, the board

14

may grant a supersedeas under section 4 of the act of July 13,

15

1988 (P.L.530, No.94), known as the Environmental Hearing Board

16

Act, so that the well in question may retain inactive status

17

during the period of the appeal.

18

(e)  Revocation of inactive status.--The department may

19

revoke inactive status and order immediate plugging of a well if

20

the well is in violation of this chapter or rules or regulations

21

promulgated under this chapter or if the owner or operator

22

demonstrates inability to perform obligations under this chapter

23

or becomes financially insolvent, or upon receipt by the

24

department of notice of bankruptcy proceedings by the permittee.

25

§ 3215.  Well location restrictions.

26

(a)  General rule.--Wells may not be drilled within 200 feet,

27

or, in the case of an unconventional well, 500 feet measured

28

horizontally from any existing building or existing water well

29

without written consent of the owner of the building or water

30

well. Unconventional wells may not be drilled within 1,000 feet

- 50 -

 


1

measured horizontally from any existing water well, surface

2

water intake, reservoir or other source used by a water

3

purveyor. If the distance restriction would deprive the owner of

4

the oil and gas rights of the right to produce or share in the

5

oil or gas underlying the surface tract, the well operator may

6

be granted a variance from the distance restriction upon

7

submission of a plan identifying the additional measures,

8

facilities or practices to be employed during well site

9

construction, drilling and operations. The variance, if granted,

10

shall include additional terms and conditions required by the

11

department to ensure safety and protection of affected persons

12

and property, including insurance, bonding, indemnification and

13

technical requirements.

14

(b)  Limitation.--No well site may be prepared or well

15

drilled within 100 feet, or, in the case of an unconventional

16

well, 300 feet measured horizontally from a stream, spring or

17

body of water as identified on the most current 7 1/2 minute

18

topographic quadrangle map of the United States Geological

19

Survey or within 100 feet, or, in the case of an unconventional

20

well, 300 feet of any wetlands greater than one acre in size.

21

The department may waive the distance restrictions upon

22

submission of a plan identifying additional measures, facilities

23

or practices to be employed during well site construction,

24

drilling and operations. The waiver, if granted, shall impose

25

permit conditions necessary to protect the waters of the

26

Commonwealth.

27

(c)  Impact.--On making a determination on a well permit, the

28

department shall consider impact of the proposed well on public

29

resources, including, but not limited to:

30

(1)  Publicly owned parks, forests, game lands and

- 51 -

 


1

wildlife areas.

2

(2)  National or State scenic rivers.

3

(3)  National natural landmarks.

4

(4)  Habitats of rare and endangered flora and fauna and

5

other critical communities.

6

(5)  Historical and archaeological sites listed on the

7

Federal or State list of historic places.

8

(d)  Consideration of municipality comments.--The department

9

may consider the comments submitted under section 3212.1

10

(relating to comments by municipalities) in making a

11

determination on a well permit. Notwithstanding any other law,

12

no municipality shall have a right of appeal or other form of

13

review from the department's decision.

14

(e)  Public resources impact criteria.--The Environmental

15

Quality Board may develop by regulation criteria for the

16

department to utilize for conditioning a well permit based on

17

its impact to the public resources identified under subsection

18

(c).

19

(f)  Floodplains.--

20

(1)  No well site may be prepared or well drilled within

21

any floodplain if the well site will have:

22

(i)  a pit or impoundment containing drilling

23

cuttings, flowback water, produced water or hazardous

24

materials, chemicals or wastes within the floodplain; or

25

(ii)  a tank containing hazardous materials,

26

chemicals, condensate, wastes, flowback or produced water

27

within the floodway.

28

(2)  A well site shall not be eligible for a floodplain

29

restriction waiver if the well site will have a tank

30

containing condensate, flowback or produced water within the

- 52 -

 


1

flood fringe unless all the tanks have adequate floodproofing

2

in accordance with the National Flood Insurance Program

3

standards and accepted engineering practices.

4

(3)  The department may waive restrictions upon

5

submission of a plan that shall identify the additional

6

measures, facilities or practices to be employed during well

7

site construction, drilling and operations. The waiver, if

8

granted, shall impose permit conditions necessary to protect

9

the waters of this Commonwealth.

10

(4)  Best practices to ensure the protection of the

11

waters of this Commonwealth must be utilized for the storage

12

and handling of all water, chemicals, fuels, hazardous

13

materials or solid waste on a well site located in a

14

floodplain. The department may request that the well site

15

operator submit a plan for the storage and handling of

16

materials for approval by the department and may impose

17

conditions or amend permits to include permit conditions as

18

are necessary to protect the environment, public health and

19

safety.

20

(5)  Unless otherwise specified by the department, the

21

boundary of the floodplain shall be as indicated on maps and

22

flood insurance studies provided by the Federal Emergency

23

Management Agency. In an area where no Federal Emergency

24

Management Agency maps or studies have defined the boundary

25

of the 100-year frequency floodplain, absent evidence to the

26

contrary, the floodplain shall extend from:

27

(i)  any perennial stream up to 100 feet horizontally

28

from the top of the bank of the perennial stream; or

29

(ii)  from any intermittent stream up to 50 feet

30

horizontally from the top of the bank of the intermittent

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1

stream.

2

§ 3215.1.  General restrictions.

3

(a)  Security fencing.--Security fencing shall be installed

4

at the oil or gas well site to secure all permanent buildings,

5

facilities, structures and equipment at the site and to protect

6

the public. Warning signs shall be placed on the security

7

fencing providing notice of potential dangers and providing

8

contact information in case of an emergency.

9

(b)  Temporary operations.--The following shall apply to

10

temporary operations:

11

(1)  Except as provided under subsection (a) and

12

paragraph (2), temporary security fencing shall be installed

13

at the oil or gas well site to secure all buildings,

14

facilities, structures and equipment at the site and to

15

protect the public. Warning signs shall be placed at the well

16

site providing notice of potential dangers and providing

17

contact information in case of an emergency.

18

(2)  In lieu of security fencing under paragraph (1), a

19

well owner or operator may establish a guard station with 24

20

hour staffing at the entrance of the site to prevent

21

unauthorized access.

22

(c)  Lighting.--Lighting at the well site and at other

23

buildings, facilities and structures directly related to oil and

24

gas operations, either temporary or permanent, shall be directed

25

downward and inward toward the activity, to the extent

26

practicable, so as to minimize the glare on public roads and

27

nearby buildings within 100 feet of the well site, building,

28

facility or structure.

29

(d)  Noise regulations.--Well owners and operators shall

30

comply with all applicable noise regulations promulgated by the

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1

Federal Energy Regulatory Commission, except that the noise

2

level from permanent oil and gas operations may not exceed 60

3

dBA at the nearest property line of the tract of land upon which

4

oil and gas operations are being conducted.

5

(e)  Atmospheric discharge.--Well owners and operators shall

6

comply with each applicable environmental law governing the

7

discharge of gases, vapors and odors into the atmosphere. The

8

discharge of gases, vapors and odors during oil and gas

9

operations may not unreasonably interfere with the comfortable

10

enjoyment of life or property.

11

§ 3216.  Well site restoration.

12

(a)  General rule.--Each oil or gas well owner or operator

13

shall restore the land surface within the area disturbed in

14

siting, drilling, completing and producing the well.

15

(b)  Plan.--During and after earthmoving or soil disturbing

16

activities, including, but not limited to, activities related to

17

siting, drilling, completing, producing and plugging the well,

18

erosion and sedimentation control measures shall be implemented

19

in accordance with an erosion and sedimentation control plan

20

prepared in accordance with the act of June 22, 1937 (P.L.1987,

21

No.394), known as The Clean Streams Law.

22

(c)  Pits, drilling supplies and equipment.--Within nine

23

months after completion of drilling of a well, the owner or

24

operator shall restore the well site, remove or fill all pits

25

used to contain produced fluids or industrial wastes and remove

26

all drilling supplies and equipment not needed for production.

27

Drilling supplies and equipment not needed for production may be

28

stored on the well site if express written consent of the

29

surface landowner is obtained.

30

(d)  Items related to production or storage.--Within nine

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1

months after plugging a well, the owner or operator shall remove

2

all production or storage facilities, supplies and equipment and

3

restore the well site.

4

(e)  Clean Streams Law.--Restoration activities required by

5

this chapter or in regulations promulgated under this chapter

6

shall also comply with all applicable provisions of The Clean

7

Streams Law.

8

(f)  Violation of chapter.--Failure to restore the well site

9

as required in this chapter or regulations promulgated under

10

this chapter constitutes a violation of this chapter.

11

(g)  Extension.--

12

(1)  The restoration period may be extended by the

13

department for an additional period of time not to exceed two

14

years upon demonstration by the well owner or operator that:

15

(i)  the extension will result in less earth

16

disturbance, increased water reuse or more efficient

17

development of the resources; or

18

(ii)  site restoration cannot be achieved due to

19

adverse weather conditions or a lack of essential fuel,

20

equipment or labor.

21

(2)  The demonstration under paragraph (1) shall do all

22

of the following:

23

(i)  Include a site restoration plan that shall

24

provide for:

25

(A)  the timely removal or fill of all pits used

26

to contain produced fluids or industrial wastes;

27

(B)  the removal of all drilling supplies and

28

equipment not needed for production;

29

(C)  the stabilization of the well site that

30

shall include interim postconstruction storm water

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1

management best management practices; or

2

(D)  other measures to be employed to minimize

3

accelerated erosion and sedimentation in accordance

4

with The Clean Streams Law.

5

(ii)  Provide for returning the portions of the site

6

not occupied by production facilities or equipment to

7

approximate original contours and making them capable of

8

supporting the uses that existed prior to drilling the

9

well.

10

(3)  The department may condition an extension under this

11

subsection as is necessary in accordance with The Clean

12

Streams Law.

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 rule

20

or 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

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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.--A well operator who affects a public or

15

private water supply by pollution or diminution shall restore or

16

replace the affected supply with an alternate source of water

17

adequate in quantity or quality for the purposes served by the

18

supply.

19

(b)  Pollution or diminution of water supply.--A landowner or

20

water purveyor suffering pollution or diminution of a water

21

supply as a result of the drilling, alteration or operation of

22

an oil or gas well may so notify the department and request that

23

an investigation be conducted. Within ten days of notification,

24

the department shall investigate the claim and make a

25

determination within 45 days following notification. If the

26

department finds that the pollution or diminution was caused by

27

drilling, alteration or operation activities or if it presumes

28

the well operator responsible for pollution under subsection

29

(c), the department shall issue orders to the well operator

30

necessary to assure compliance with subsection (a), including

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1

orders requiring temporary replacement of a water supply where

2

it is determined that pollution or diminution may be of limited

3

duration.

4

(c)  Presumption.--Unless rebutted by a defense established

5

in subsection (d), it shall be presumed that a well operator is

6

responsible for pollution of a water supply if:

7

(1)  except as set forth in paragraph (2):

8

(i)  the water supply is within 1,000 feet of an oil

9

or gas well; and

10

(ii)  the pollution occurred within six months after

11

completion of drilling or alteration of the oil or gas

12

well; or

13

(2)  in the case of an unconventional well:

14

(i)  the water supply is within 2,500 feet of the

15

unconventional well; and

16

(ii)  the pollution occurred within 12 months of the

17

later of completion, drilling or alteration of the

18

unconventional well.

19

(d)  Defenses.--To rebut the presumption established under

20

subsection (c), a well operator must affirmatively prove any of

21

the following:

22

(1)  The pollution existed prior to the drilling or

<--

23

alteration activity as determined by a predrilling or

24

prealteration survey.

25

(2)  The landowner or water purveyor refused to allow the

26

operator access to conduct a predrilling or prealteration

27

survey.

28

(3)  The water supply is not within 1,000 feet of the

29

well.

30

(4)  The pollution occurred more than six months after

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1

completion of drilling or alteration activities.

2

(5)  The pollution occurred as the result of a cause

3

other than the drilling or alteration activity.

4

(e)  Independent certified laboratory.--An operator electing

5

to preserve a defense under subsection (d)(1) or (2) shall

6

retain an independent certified laboratory to conduct a

7

predrilling or prealteration survey of the water supply. A copy

8

of survey results shall be submitted to the department and the

9

landowner or water purveyor in the manner prescribed by the

10

department.

<--

11

(f)  Other remedies preserved.--Nothing in this section shall

12

prevent a landowner or water purveyor claiming pollution or

13

diminution of a water supply from seeking any other remedy at

14

law or in equity.

15

§ 3219.  Use of safety devices.

16

Any person engaged in drilling an oil or gas well shall equip

17

it with casings of sufficient strength, and other safety devices

18

as are necessary, in the manner prescribed by regulation of the

19

department, and shall use every effort and endeavor effectively

20

to prevent blowouts, explosions and fires.

21

§ 3219.1.  Well control emergency response.

22

(a)  Contracts.--The department may enter into contracts with

23

well control specialists in order to provide adequate emergency

24

response services in the event of a well control emergency.

25

(b)  Civil immunity.--Except as set forth in subsection (c),

26

a well control specialist with which the department has entered

27

into a contract under subsection (a) shall be immune from civil

28

liability for actions taken in good faith to carry out its

29

contractual obligations.

30

(c)  Nonapplicability.--Subsection (b) shall not apply to

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1

damage arising from any of the following:

2

(1)  Breach of the contract under subsection (a).

3

(2)  An intentional tort.

4

(3)  Gross negligence.

5

§ 3220.  Plugging requirements.

6

(a)  General rule.--Upon abandoning a well, the owner or

7

operator shall plug it in the manner prescribed by regulation of

8

the department to stop vertical flow of fluids or gas within the

9

well bore, unless the department has granted inactive status for

10

the well or it has been approved by the department as an orphan

11

well. If the department determines that a prior owner or

12

operator received economic benefit, other than economic benefit

13

derived only as a landowner or from a royalty interest, after

14

April 18, 1979, from an orphan well or an unregistered well, the

15

owner or operator shall be responsible for plugging the well. In

16

the case of a gas well penetrating a workable coal seam which

17

was drilled prior to January 30, 1956, or which was permitted

18

after that date but not plugged in accordance with this chapter,

19

if the owner or operator or a coal operator or an agent proposes

20

to plug the well to allow mining through it, the gas well shall

21

be cleaned to a depth of at least 200 feet below the coal seam

22

through which mining is proposed and, unless impracticable, to a

23

point 200 feet below the deepest mineable coal seam. The gas

24

well shall be plugged from that depth in accordance with section

25

13 of the act of December 18, 1984 (P.L.1069, No.214), known as

26

the Coal and Gas Resource Coordination Act, and the regulations

27

of the department.

28

(b)  Areas underlain by coal.--Prior to the plugging and

29

abandonment of a well in an area underlain by a workable coal

30

seam, the well operator or owner shall notify the department and

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1

the coal operator, lessee or owner and submit a plat, on a form

2

to be furnished by the department, showing the location of the

3

well and fixing the date and time plugging will commence, which

4

shall be not less than three working days, nor more than 30

5

days, after the notice is received, to permit representatives of

6

the persons notified to be present at the plugging. Notice and

7

the right to be present may be waived by the department and the

8

coal operator, lessee or owner, but waiver by the coal operator,

9

lessee or owner shall be in writing and a copy shall be attached

10

to the notice of abandonment filed with the department under

11

this section. Whether or not representatives attend, if the well

12

operator has fully complied with this section, the well operator

13

may proceed, at the time fixed, to plug the well in the manner

14

prescribed by regulation of the department. When plugging has

15

been completed, a certificate shall be prepared and signed, on a

16

form to be furnished by the department, by two experienced and

17

qualified people who participated in the work setting forth the

18

time and manner in which the well was plugged. One copy of the

19

certificate shall be mailed to each coal operator, lessee or

20

owner to whom notice was given by certified mail and another

21

shall be mailed to the department.

22

(c)  Abandoned wells.--Prior to abandonment of a well, except

23

an uncompleted bore hole plugged immediately upon suspension of

24

drilling in an area not underlain by a workable coal seam, the

25

well operator shall notify the department of the intention to

26

plug and abandon the well and submit a plat, on a form to be

27

furnished by the department, showing the location of the well

28

and fixing the date and time at which plugging will commence,

29

which shall be not less than three working days, nor more than

30

30 days, after the notice is received, to permit a department

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1

representative to be present at the plugging. The notice or

2

waiting period may be verbally waived by the department. In

3

noncoal areas where more than one well has been drilled as part

4

of the same development project and the wells are now to be

5

plugged, the department shall be given three working days'

6

notice prior to plugging the first well of the project, subject

7

to waiver of notice described in subsection (b). In the plugging

8

of subsequent wells, no additional notice shall be required if

9

plugging on the project is continuous. If plugging of subsequent

10

wells is delayed for any reason, notice shall be given to the

11

department of continuation of the project. Whether or not a

12

representative attends, if the well operator has fully complied

13

with this section, the well operator may proceed, at the time

14

fixed, to plug the well in the manner prescribed by regulation

15

of the department. When plugging has been completed, a

16

certificate shall be prepared, on a form to be furnished by the

17

department, by two experienced and qualified people who

18

participated in the work setting forth the time and manner in

19

which the well was plugged. A copy of the certificate shall be

20

mailed to the department.

21

(d)  Wells abandoned upon completion of drilling.--If a well

22

is to be abandoned immediately after completion of drilling, the

23

well operator shall give at least 24 hours' notice by telephone,

24

confirmed by certified mail, to the department and to the coal

25

operator, lessee or owner, if any, fixing the date and time when

26

plugging will commence. Notice and the right to be present may

27

be waived by the department and the coal operator, lessee or

28

owner, if any. Whether or not representatives of the department

29

or coal operator, lessee or owner, if any, attend, if the well

30

operator has fully complied with the requirements of this

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1

section, the well operator may proceed, at the time fixed, to

2

plug the well in the manner provided by regulation of the

3

department. The well operator shall prepare the certificate of

4

plugging and mail copies of the same as provided in subsection

5

(b).

6

(e)  Orphan wells.--If a well is an orphan well or abandoned

7

without plugging, or if a well is in operation but not

8

registered under section 3213 (relating to well registration and

9

identification), the department may enter upon the well site and

10

plug the well and to sell equipment, casing and pipe at the site

11

which may have been used in production of the well in order to

12

recover the costs of plugging. The department shall make an

13

effort to determine ownership of a well which is in operation

14

but has not been registered and provide written notice to the

15

owner of pending action under this subsection. If the department

16

cannot determine ownership within 30 days, it may proceed under

17

this subsection. Costs of plugging shall have priority over all

18

liens on equipment, casing and pipe, and the sale shall be free

19

and clear of those liens to the extent that the cost of plugging

20

exceeds the sale price. If the amount obtained for casing and

21

pipe salvaged at the site is inadequate to pay for plugging, the

22

owner or operator of the abandoned or unregistered well shall be

23

liable for the additional costs.

24

(f)  Definition.--For purposes of this section, the term

25

"owner" does not include the owner or possessor of surface real

26

property, on which an abandoned well is located, who did not

27

participate or incur costs in and had no right of control over

28

the drilling or extraction operation of the abandoned well.

29

§ 3221.  Alternative methods.

30

A well operator may request permission to use a method or

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1

material other than those required by this chapter for casing,

2

plugging or equipping a well in an application to the department

3

which describes the proposed alternative in reasonable detail

4

and indicates the manner in which it will accomplish the goals

5

of this chapter. Notice of filing of the application shall be

6

given by the well operator by certified mail to any affected

7

coal operators, who may, within 15 days after the notice, file

8

objections to the proposed alternative method or material. If no

9

timely objections are filed or raised by the department, the

10

department shall determine whether to allow use of the proposed

11

alternative method or material.

12

§ 3222.  Well reporting requirements.

13

(a)  General rule.--Except as provided in subsection (a.1),  

14

each well operator shall file with the department, on a form

15

provided by the department, an annual report specifying the

16

amount of production, on the most well-specific basis available,

17

along with the status of each well, except that in subsequent

18

years only changes in status must be reported. The Commonwealth

19

may utilize reported information in enforcement proceedings, in

20

making designations or determinations under section 1927-A of

21

the act of April 9, 1929 (P.L.177, No.175), known as The

22

Administrative Code of 1929, or in aggregate form for

23

statistical purposes.

24

(a.1)  Marcellus Shale formation wells.--Each operator of an

25

unconventional well shall file with the department, on a form

26

provided by the department, a semiannual report specifying the

27

amount of production on the most well-specific basis available.

28

The initial report under this subsection shall be filed on or

29

before August 15, 2010, and shall include production data from

30

the preceding calendar year and specify the status of each well.

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1

In subsequent reports, only changes in status must be reported.

2

Subsequent semiannual reports shall be filed with the department

3

on or before February 15 and August 15 of each year and shall

4

include production data from the preceding reporting period. The

5

Commonwealth may utilize reported information in enforcement

6

proceedings, in making designations or determinations under

7

section 1927-A of The Administrative Code of 1929 or in

8

aggregate form for statistical purposes. Beginning November 1,

9

2010, the department shall make the reports available on its

10

publicly accessible Internet website. Costs incurred by the

11

department to comply with the requirements of this subsection

12

shall be paid out of the fees collected under section 3211(d)

13

(relating to well permits).

14

(b)  Collection of data.--

15

(1)  Well operators shall maintain a record of each well

16

drilled or altered.

17

(2)  A record containing the information required by the

18

department shall be filed within 30 days of cessation of

19

drilling of each well.

20

(3)  A completion report containing any additional

21

required information shall be filed within 30 days after

22

completing the well and shall be kept on file by the

23

department.

24

(4)  (i)  The completion report shall include a

25

stimulation record. At a minimum, the stimulation record

26

shall contain pump rates, pressures, total volume used to

27

stimulate the well, a list of hazardous and other

28

chemicals used to stimulate the well, volume of water

29

used, identification of water sources used under a

30

department-approved water management plan and depth at

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1

which potable aquifers are encountered during drilling.

2

The well operator may designate specific portions of the

3

stimulation record as containing a trade secret or

4

confidential proprietary information. The department

5

shall prevent disclosure of designated confidential

6

information to the extent permitted under the act of

7

February 14, 2008 (P.L.6, No.3), known as the Right-to-

8

Know Law.

9

(ii)  The completion report shall identify:

10

(A)  whether methane was encountered in other

11

than a target formation; and

12

(B)  the country of origin and manufacture of the

13

steel products used in the construction of the well.

14

(iii)  The completion report shall be kept on file by

15

the department and posted on the department's publicly

16

accessible Internet website.

17

(5)  Upon request of the department, the well operator

18

shall, within 90 days of completion or recompletion of

19

drilling, submit a copy of any electrical, radioactive or

20

other standard industry logs which have been run. No

21

information under this paragraph shall be required unless the

22

well operator has compiled the information in the ordinary

23

course of business.

24

(6)  Upon request by the department within one year, the

25

well operator shall file a copy of drill stem test charts,

26

formation water analysis, porosity, permeability or fluid

27

saturation measurements, core analysis and lithologic log or

28

sample description or other similar data as compiled. No

29

information under this paragraph shall be required unless the

30

well operator had it compiled in the ordinary course of

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1

business, and interpretation of data under this paragraph is

2

not required to be filed.

3

(c)  Drill cuttings and core samples.--Upon notification by

4

the department prior to commencement of drilling, the well

5

operator shall collect any additional data specified by the

6

department, including representative drill cuttings and samples

7

from cores taken and any other geological information that the

8

operator reasonably can compile. Interpretation of the data is

9

not required to be filed.

10

(d)  Retention and filing of data.--Data required under

11

subsection (b) and drill cuttings required under subsection (c)

12

shall be retained by the well operator and filed with the

13

department no more than three years after completion of the

14

well. Upon request, the department shall extend the deadline up

15

to five years from the date of completion of the well. The

16

department shall be entitled to utilize information collected

17

under this subsection in enforcement proceedings, in making

18

designations or determinations under section 1927-A of The

19

Administrative Code of 1929 and in aggregate form for

20

statistical purposes.

21

§ 3223.  Notification and effect of well transfer.

22

The owner or operator of a well shall notify the department

23

in writing within 30 days, in a form directed by regulation, of

24

sale, assignment, transfer, conveyance or exchange by or to the

25

owner of the well. A transfer shall not relieve the well owner

26

or operator of an obligation accrued under this chapter, nor

27

shall it relieve the owner or operator of an obligation to plug

28

the well until the requirements of section 3225 (relating to

29

bonding) have been met, at which time the transferring owner or

30

operator shall be relieved from all obligations under this

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1

chapter, including the obligation to plug the well.

2

§ 3224.  Coal operator responsibilities.

3

(a)  General rule.--At any time prior to removing coal or

4

other underground materials from, or extending the workings in,

5

a coal mine within 500 feet of an oil or gas well of which the

6

coal operator has knowledge, or within 500 feet of an approved

7

well location of which the coal operator has knowledge, the coal

8

operator, by certified mail, shall forward to or file with the

9

well operator and the department a copy of the relevant part of

10

all maps and plans which it is presently required by law to

11

prepare and file with the department, showing the pillar which

12

the coal operator proposes to leave in place around each oil or

13

gas well in the projected workings. Thereafter, the coal

14

operator may proceed with mining operations in the manner

15

projected on the maps and plans, but the operator may not remove

16

coal or cut a passageway within 150 feet of the well or approved

17

well location without written approval under this section. If,

18

in the opinion of the well operator or the department, the plan

19

indicates that the proposed pillar is inadequate to protect

20

either the integrity of the well or public health and safety,

21

the affected well operator shall attempt to reach an agreement

22

with the coal operator on a suitable pillar, subject to approval

23

of the department. Upon failure to agree, the well operator may,

24

within ten days after receipt of the proposed plan under this

25

section, file objections under section 3251 (relating to

26

conferences), indicating the size of the pillar to be left as to

27

each well. If objections are not timely filed and the department

28

has none, the department shall grant approval, reciting that

29

maps and plans have been filed, no objections have been made

30

thereto and the pillar proposed to be left for each well is

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1

approved in the manner as projected.

2

(b)  Objections.--If an objection is filed by the well

3

operator or raised by the department, the department shall order

4

that a conference be held under section 3251 within ten days of

5

the filing of objections. At the conference, the coal operator

6

and the person who has objected shall attempt to agree on a

7

proposed plan, showing the pillar to be left around each well,

8

which will satisfy the objections and receive department

9

approval. If an agreement is reached, the department shall grant

10

approval to the coal operator, reciting that a plan has been

11

filed and the pillar to be left for each well is approved

12

pursuant to the agreement. If an agreement is not reached on a

13

plan showing the pillar to be left with respect to a well, the

14

department, by appropriate order, shall determine the pillar to

15

be left with respect to the well. In a proceeding under this

16

section, the department shall follow as nearly as is possible

17

the original plan filed by the coal operator. The department

18

shall not require the coal operator to leave a pillar in excess

19

of 100 feet in radius, except that the department may require a

20

pillar of up to 150 feet in radius if the existence of unusual

21

conditions is established. Pillars determined by the department

22

shall be shown on maps or plans on file with the department as

23

provided in subsection (a), and the department shall approve the

24

pillar to be left for each well.

25

(c)  Pillars of reduced size.--Application may be made at any

26

time to the department by the coal operator to leave a pillar of

27

a size smaller than shown on the plan approved or determined by

28

the department under this section. If an application is filed,

29

the department shall:

30

(1)  follow the appropriate procedure under subsection

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1

(a) or (b);

2

(2)  by appropriate order, determine a plan involving a

3

pillar of a smaller size as to any well covered by the

4

application; and

5

(3)  grant approval for the pillar to be left with

6

respect to each well.

7

(d)  Violation.--No coal operator, without written approval

8

of the department after notice and opportunity for a hearing

9

under this section, shall remove coal or cut a passageway so as

10

to leave a pillar of smaller size, with respect to an oil or gas

11

well, than that approved by the department under this chapter.

12

(e)  Limitation.--With regard to a coal pillar required by

13

law to be left around a well drilled prior to April 18, 1985,

14

nothing in this chapter shall be construed to:

15

(1)  require a well operator to pay for the coal pillar;

16

(2)  affect a right which a coal operator may have had

17

prior to April 18, 1985, to obtain payment for the coal

18

pillar; or

19

(3)  affect a duty or right which a storage operator or

20

landowner may have had prior to April 18, 1985, to pay or not

21

pay for the coal pillar.

22

(f)  Mining through plugged wells.--A coal operator who

23

intends to mine through a plugged oil or gas well or otherwise

24

completely remove any pillar from around that well shall file a

25

plan under subsection (a) which shall be subject to all of the

26

provisions of this section. No coal operator may mine through a

27

plugged oil or gas well of which he has knowledge until written

28

approval has been granted by the department in accordance with

29

this section. The Bureau of Deep Mine Safety in the department

30

shall have the authority to establish conditions under which the

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1

department may approve a coal operator's plan to mine through a

2

plugged oil or gas well.

3

§ 3225.  Bonding.

4

(a)  General rule.--The following shall apply:

5

(1)  Except as provided in subsection (d), upon filing an

6

application for a well permit, and before continuing to

7

operate an oil or gas well, the owner or operator of the well

8

shall file with the department a bond covering the well and

9

well site on a form to be prescribed and furnished by the

10

department. A bond filed with an application for a well

11

permit shall be payable to the Commonwealth and conditioned

12

upon the operator's faithful performance of all drilling,

13

water supply replacement, restoration and plugging

14

requirements of this chapter. A bond for a well in existence

15

on April 18, 1985, shall be payable to the Commonwealth and

16

conditioned upon the operator's faithful performance of all

17

water supply replacement, restoration and plugging

18

requirements of this chapter. The amount of the bond required

19

shall be in the following amounts and may be adjusted by the

20

Environmental Quality Board every two years to reflect the

21

projected costs to the Commonwealth of plugging the well:

22

(i)  For wells with a total well bore length less

23

than 6,000 feet:

24

(A)  For operating up to 50 wells, $4,000 per

25

well; but no bond may be required under this clause

26

in excess of $35,000.

27

(B)  For operating 51 to 150 wells, $35,000 plus

28

$4,000 per well for each well in excess of 50 wells;

29

but no bond may be required under this clause in

30

excess of $60,000.

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1

(C)  For operating 151 to 250 wells, $60,000 plus

2

$4,000 per well for each well in excess of 150 wells;

3

but no bond may be required under this clause in

4

excess of $100,000.

5

(D)  For operating more than 250 wells, $100,000

6

plus $4,000 per well for each well in excess of 250

7

wells; but no bond may be required under this clause

8

in excess of $250,000.

9

(ii)  For wells with a total well bore length greater

10

than 6,000 feet:

11

(A)  For operating up to 25 wells, $10,000 per

12

well; but no bond may be required under this clause

13

in excess of $60,000.

14

(B)  For operating 26 to 50 wells, $60,000 plus

15

$10,000 per well for each well in excess of 25 wells;

16

but no bond may be required under this clause in

17

excess of $120,000.

18

(C)  For operating 51 to 150 wells, $120,000 plus

19

$10,000 per well for each well in excess of 50 wells;

20

but no bond may be required under this clause in

21

excess of $180,000.

22

(D)  For operating more than 150 wells, $180,000

23

plus $10,000 per well for each well in excess of 150

24

wells; but no bond may be required under this clause

25

in excess of $250,000.

26

(2)  In lieu of individual bonds for each well, an owner

27

or operator may file a blanket bond for the applicable amount

28

under paragraph (1), on a form prepared by the department,

29

covering all of its wells in this Commonwealth, as enumerated

30

on the bond form.

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1

(3)  Liability under the bond shall continue until the

2

well has been properly plugged in accordance with this

3

chapter and for a period of one year after filing of the

4

certificate of plugging with the department. Each bond shall

5

be executed by the operator and a corporate surety licensed

6

to do business in this Commonwealth and approved by the

7

secretary. In lieu of a corporate surety, the operator may

8

deposit with the department:

9

(i)  cash;

10

(ii)  certificates of deposit or automatically

11

renewable irrevocable letters of credit, from financial

12

institutions chartered or authorized to do business in

13

this Commonwealth and regulated and examined by the

14

Commonwealth or a Federal agency, which may be terminated

15

at the end of a term only upon 90 days' prior written

16

notice by the financial institution to the permittee and

17

the department;

18

(iii)  negotiable bonds of the United States

19

Government or the Commonwealth, the Pennsylvania Turnpike

20

Commission, the General State Authority, the State Public

21

School Building Authority or any municipality within the

22

Commonwealth; or

23

(iv)  United States Treasury Bonds issued at a

24

discount without a regular schedule of interest payments

25

to maturity, otherwise known as Zero Coupon Bonds, having

26

a maturity date of not more than ten years after the date

27

of purchase and at the maturity date having a value of

28

not less than the applicable amount under paragraph (1).

29

The cash deposit, certificate of deposit, amount of the

30

irrevocable letter of credit or market value of the

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1

securities shall be equal at least to the sum of the

2

bond.

3

(4)  The secretary shall, upon receipt of a deposit of

4

cash, letters of credit or negotiable bonds, immediately

5

place the same with the State Treasurer, whose duty it shall

6

be to receive and hold the same in the name of the

7

Commonwealth, in trust, for the purpose for which the deposit

8

is made.

9

(5)  The State Treasurer shall at all times be

10

responsible for custody and safekeeping of deposits. The

11

operator making the deposit shall be entitled from time to

12

time to demand and receive from the State Treasurer, on the

13

written order of the secretary, the whole or any portion of

14

collateral deposited, upon depositing with the State

15

Treasurer, in lieu of that collateral, other collateral of

16

classes specified in this section having a market value at

17

least equal to the sum of the bond, and also to demand,

18

receive and recover the interest and income from the

19

negotiable bonds as they become due and payable.

20

(6)  If negotiable bonds on deposit under this subsection

21

mature or are called, the State Treasurer, at the request of

22

the owner of the bonds, shall convert them into other

23

negotiable bonds, of classes specified in this section,

24

designated by the owner.

25

(7)  If notice of intent to terminate a letter of credit

26

is given, the department shall give the operator 30 days'

27

written notice to replace the letter of credit with other

28

acceptable bond guarantees as provided in this section. If

29

the owner or operator fails to timely replace the letter of

30

credit, the department shall draw upon and convert the letter

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1

of credit into cash and hold it as a collateral bond

2

guarantee.

3

(b)  Release.--No bond shall be fully released until the

4

requirements of subsection (a) and section 3223 (relating to

5

notification and effect of well transfer) have been fully met.

6

Upon release of bonds and collateral under this section, the

7

State Treasurer shall immediately return to the owner the

8

specified amount of cash or securities.

9

(c)  Noncompliance.--If a well owner or operator fails or

10

refuses to comply with subsection (a), regulations promulgated

11

under this chapter or conditions of a permit relating to this

12

chapter, the department may declare the bond forfeited and shall

13

certify the same to the Attorney General, who shall proceed to

14

enforce and collect the full amount of the bond and, if the well

15

owner or operator has deposited cash or securities as collateral

16

in lieu of a corporate surety, the department shall declare the

17

collateral forfeited and direct the State Treasurer to pay the

18

full amount of the funds into the Well Plugging Restricted

19

Revenue Account or to sell the security to the extent forfeited

20

and pay the proceeds into the Well Plugging Restricted Revenue

21

Account. If a corporate surety or financial institution fails to

22

pay a forfeited bond promptly and in full, the corporate surety

23

or financial institution shall be disqualified from writing

24

further bonds under this chapter or any other environmental law

25

administered by the department. A person aggrieved by reason of

26

forfeiting the bond or converting collateral, as provided in

27

this section, shall have a right to appeal to the Environmental

28

Hearing Board in the manner provided by law. Upon forfeiture of

29

a blanket bond for a violation occurring at one or more well

30

sites, the person whose bond is forfeited shall, within ten days

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1

of the forfeiture, submit a replacement bond to cover all other

2

wells of which the person is an owner or operator. Failure to

3

submit the replacement bond constitutes a violation of this

4

section as to each of the wells owned or operated by the person.

5

(d)  Alternatives to certain bonds.--The following shall

6

apply:

7

(1)  An operator of not more than 200 wells who cannot

8

obtain a bond for a well drilled prior to April 18, 1985, as

9

required under subsection (a), due to inability to

10

demonstrate sufficient financial resources may, in lieu of

11

the bond:

12

(i)  Submit to the department a fee in the amount of

13

$50 per well, a blanket fee of $500 for ten to 20 wells

14

or a blanket fee of $1,000 for more than 20 wells, which

15

shall be a nonrefundable fee paid each year that the

16

operator has not filed a bond with the department. All

17

fees collected in lieu of a bond under this subsection

18

shall be used for the purposes authorized by this

19

chapter. The Environmental Quality Board shall have the

20

power, by regulation, to increase the amount of the fees

21

established under this subsection.

22

(ii)  Make phased deposits of collateral to fully

23

collateralize the bond, subject to the following:

24

(A)  Payment shall be based on the number of

25

wells owned or operated. The operator shall make an

26

initial deposit and make annual deposits in

27

accordance with the schedule in clause (B). Interest

28

accumulated by the collateral shall become a part of

29

the bond until the collateral plus accumulated

30

interest equals the amount of the required bond. The

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1

collateral shall be deposited, in trust, with the

2

State Treasurer as provided in this subsection or

3

with a bank selected by the department which shall

4

act as trustee for the benefit of the Commonwealth to

5

guarantee the operator's compliance with the

6

drilling, water supply replacement, restoration and

7

plugging requirements of this chapter. The operator

8

shall be required to pay all costs of the trust.

9

(B)  An operator of up to ten existing wells who

10

does not intend to operate additional wells shall

11

deposit $250 per well and shall, thereafter, annually

12

deposit $50 per well until the obligations of this

13

section are fully met. An operator of 11 to 25 wells

14

or an operator of up to ten wells who applies for one

15

or more permits for additional wells shall deposit

16

$2,000 and shall, thereafter, annually deposit $1,150

17

plus $150 for each additional well to be permitted

18

that year until the obligations of this section are

19

fully met. An operator of 26 to 50 wells shall

20

deposit $3,000 and shall, thereafter, annually

21

deposit $1,300 plus $400 for each additional well to

22

be permitted that year until the obligations of this

23

section are fully met. An operator of 51 to 100 wells

24

shall deposit $4,000 and shall, thereafter, annually

25

deposit $1,500 plus $400 for each additional well to

26

be permitted that year until the obligations of this

27

section are fully met. Operators of 101 to 200 wells

28

shall deposit $8,000 and shall, thereafter, annually

29

deposit $1,600 plus $1,000 for each additional well

30

to be permitted that year until the obligations of

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1

this section are fully met. Operators of more than

2

200 wells shall fully bond their wells immediately.

3

(C)  The department shall reduce the amount of

4

phased collateral payments or the period of time over

5

which phased collateral payments shall be made on

6

behalf of owners or operators who, prior to August 1,

7

1992, have paid a fee in lieu of bond under

8

subparagraph (i), and who, by August 1, 1993, choose

9

to enter the phased collateral program under this

10

subparagraph rather than continue to make payments in

11

lieu of bond. Payments made prior to August 1, 1992,

12

in lieu of bond shall not be credited in any other

13

manner, and the department shall not be required to

14

refund the fees. The Environmental Quality Board, by

15

regulation, may change the annual deposits

16

established under clause (B) if necessary to

17

accommodate a change in the amount of the bond

18

required under this section.

19

(2)  An operator may continue to pay a fee in lieu of

20

bond or make phased deposits of collateral to fully

21

collateralize the bond so long as the operator does not miss

22

a payment under this subsection and remains in compliance

23

with this chapter. If an operator misses a payment under this

24

subsection, the operator shall immediately:

25

(i)  submit the appropriate bond amount in full; or

26

(ii)  cease all operations and plug all wells.

27

(d.1)  Individuals.--The following shall apply:

28

(1)  An individual who is unable to obtain a bond to

29

drill new wells due to inability to demonstrate financial

30

resources may meet the collateral bond requirements of

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1

subsection (a) by making phased deposits of collateral to

2

fully collateralize the bond. The individual shall be limited

3

to drilling ten new wells per calendar year and, for each

4

well to be drilled, deposit $500 and make an annual deposit

5

of 10% of the remaining bond amount for a period of ten

6

years. Interest accumulated shall become a part of the bond

7

until the collateral plus accumulated interest equals the

8

amount of the required bond. The collateral shall be

9

deposited in trust with the State Treasurer under subsection

10

(a) or with a bank selected by the department which shall act

11

as trustee for the benefit of the Commonwealth to guarantee

12

the individual's compliance with the drilling, water supply

13

replacement, restoration and plugging requirements of this

14

chapter. The individual shall pay all costs of the trust.

15

(2)  Individuals may continue to use phased collateral to

16

obtain permits if they have not missed a payment for a well

17

drilled under this provision and remain in compliance with

18

this chapter. If an individual misses a payment, the

19

individual shall:

20

(i)  immediately submit the appropriate bond amount

21

in full; or

22

(ii)  cease all operations and plug all wells.

23

(3)  For purposes of this subsection, an "individual"

24

means a natural person doing business under his own name.

25

(e)  Reservation of remedies.--All remedies violating this

26

chapter, regulations adopted under this chapter and conditions

27

of permits are expressly preserved. Nothing in this section

28

shall be construed as an exclusive penalty or remedy for

29

violations of law. No action taken under this section shall

30

waive or impair any other remedy or penalty provided in law.

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1

(f)  Change of law.--Owners or operators who have failed to

2

meet the requirements of this section prior to August 1, 1992,

3

shall not be required to make payments under this section on a

4

retroactive basis as a condition of obtaining a permit under

5

this chapter, nor shall the failure be deemed a violation of

6

this chapter.

7

§ 3226.  Oil and Gas Technical Advisory Board.

8

(a)  Creation of board.--The Oil and Gas Technical Advisory

9

Board is created, consisting of the following members, all of

10

whom shall be chosen by the Governor and shall be residents of

11

this Commonwealth:

12

(1)  Three individuals, each of whom shall be:

13

(i)  a petroleum engineer;

14

(ii)  a petroleum geologist; or

15

(iii)  an experienced driller representative of the

16

oil and gas industry with three years of experience in

17

this Commonwealth.

18

(2)  One mining engineer from the coal industry with

19

three years of experience in this Commonwealth.

20

(3)  One geologist or petroleum engineer with three years

21

of experience in this Commonwealth, who shall be chosen from

22

a list of three names submitted by the Citizens Advisory

23

Council to the Governor and who shall sit as a representative

24

of the public interest.

25

(b)  Reimbursement.--Board members shall not receive a salary

26

but shall be reimbursed for all necessary expenses incurred in

27

the performance of their duties.

28

(c)  Majority vote.--All actions of the board shall be by

29

majority vote. The board shall meet as called by the secretary,

30

but not less than semiannually, to carry out its duties under

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1

this chapter. The board shall select a chairman and other

2

officers deemed appropriate.

3

(d)  Consultation.--The department shall consult with the

4

board in the formulation, drafting and presentation stages of

5

all regulations of a technical nature promulgated under this

6

chapter. The board shall be given a reasonable opportunity to

7

review and comment on all regulations of a technical nature

8

prior to submission to the Environmental Quality Board for

9

initial consideration. The written report of the board shall be

10

presented to the Environmental Quality Board with any regulatory

11

proposal. The chairman of the board shall be invited to

12

participate in the presentation of all regulations of a

13

technical nature before the Environmental Quality Board to the

14

extent allowed by procedures of the Environmental Quality Board.

15

Nothing herein shall preclude any member of the board from

16

filing a petition for rulemaking with the Environmental Quality

17

Board in accordance with procedures established by the

18

Environmental Quality Board.

19

SUBCHAPTER C

20

UNDERGROUND GAS STORAGE

21

Sec.

22

3231.  Reporting requirements for gas storage operations.

23

3232.  Reporting requirements for coal mining operations.

24

3233.  General gas storage reservoir operations.

25

3234.  Gas storage reservoir operations in coal areas.

26

3235.  Inspection of facilities and records.

27

3236.  Reliance on maps and burden of proof.

28

3237.  Exemptions and prohibitions.

29

§ 3231.  Reporting requirements for gas storage operations.

30

(a)  General rules.--The following shall apply:

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1

(1)  A person injecting into or storing gas in a storage

2

reservoir underlying or within 3,000 linear feet of a coal

3

mine operating in a coal seam that extends over the storage

4

reservoir or reservoir protective area shall, within 60 days,

5

file with the department a copy of a map and certain data in

6

the form and manner provided in this subsection or as

7

otherwise prescribed by regulation of the department.

8

(2)  A person injecting gas into or storing gas in a

9

storage reservoir which is not under or within 3,000 linear

10

feet of, but less than 10,000 linear feet from, a coal mine

11

operating in a coal seam that extends over the storage

12

reservoir or reservoir protective area shall file the map and

13

data within 60 days or a longer period set by departmental

14

regulation.

15

(3)  A person proposing to inject or store gas in a

16

storage reservoir located as defined in paragraph (1) or (2)

17

shall file the appropriate required map and data with the

18

department not less than six months prior to starting the

19

actual injection or storage.

20

(4)  A map required by this subsection shall be prepared

21

by a competent engineer or geologist, showing:

22

(i)  the stratum in which the existing or proposed

23

storage reservoir is or is proposed to be located;

24

(ii)  the geographic location of the outside

25

boundaries of the storage reservoir and reservoir

26

protective area;

27

(iii)  the location of all known oil or gas wells in

28

the reservoir or within 3,000 linear feet thereof which

29

have been drilled into or through the storage stratum,

30

indicating which have been or are to be cleaned out and

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1

plugged or reconditioned for storage along with the

2

proposed location of all additional wells which are to be

3

drilled within the storage reservoir or within 3,000

4

linear feet thereof.

5

(5)  The following, if available, shall be furnished for

6

all known oil or gas wells which have been drilled into or

7

through the storage stratum within the storage reservoir or

8

within 3,000 linear feet thereof: name of the operator, date

9

drilled, total depth, depth of production if the well was

10

productive of oil or gas, the initial rock pressure and

11

volume, the depths at which all coal seams were encountered

12

and a copy of the driller's log or other similar information.

13

At the time of the filing of the maps and data, a statement

14

shall be filed:

15

(i)  detailing efforts made to determine that the

16

wells shown are accurately located on the map;

17

(ii)  affirming that the wells shown represent, to

18

the best of the operator's knowledge, all oil or gas

19

wells which have ever been drilled into or below the

20

storage stratum within the proposed storage reservoir or

21

within the reservoir protective area;

22

(iii)  stating whether the initial injection is for

23

testing purposes;

24

(iv)  stating the maximum pressure at which injection

25

and storage of gas is contemplated; and

26

(v)  providing a detailed explanation of the methods

27

to be used or which previously have been used in

28

drilling, cleaning out, reconditioning and plugging wells

29

in the storage reservoir or within the reservoir

30

protective area.

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1

(6)  The map and data required to be filed under

2

paragraph (5) shall be amended or supplemented semiannually

3

if material changes occur. The department may require a

4

storage operator to amend or supplement the map or data at

5

more frequent intervals if material changes have occurred

6

justifying the earlier filing.

7

(b)  Other reporting requirements.--A person who is injecting

8

gas into or storing gas in a storage reservoir not at the time

9

subject to subsection (a), by a process other than that of

10

secondary recovery or gas recycling, shall, within 60 days, or a

11

longer period set by departmental regulations, file maps and

12

data required by departmental regulation and as follows:

13

(1)  A person who, after April 18, 1985, proposes to

14

inject or store gas in a storage reservoir in an area not

15

covered by subsection (a) by a process other than that of

16

secondary recovery or gas recycling shall file the required

17

map and data with the department not less than six months

18

prior to the starting of actual injection or storage.

19

(2)  The map shall be prepared by a competent engineer or

20

competent geologist and show:

21

(i)  the stratum in which the existing or proposed

22

storage reservoir is or is to be located;

23

(ii)  the geographic location of the outside

24

boundaries of the storage reservoir; and

25

(iii)  the location of all known oil or gas wells

26

within the reservoir, or within 3,000 linear feet

27

thereof, which have been drilled into or through the

28

storage stratum, indicating which have been or are to be

29

cleaned out and plugged or reconditioned for storage and

30

the proposed location of all additional wells which are

- 85 -

 


1

to be drilled within the storage reservoir or within

2

3,000 linear feet thereof.

3

(3)  The following, if available, shall be furnished for

4

all known oil or gas wells which have been drilled into or

5

through the storage stratum within the storage reservoir or

6

within 3,000 linear feet thereof: name of the operator, date

7

drilled, total depth, depth of production if the well was

8

productive of oil or gas, the initial rock pressure and

9

volume and a copy of the driller's log or other similar

10

information. At the time of the filing of the maps and data,

11

a statement shall be filed:

12

(i)  detailing efforts made to determine that the

13

wells shown are accurately located on the map;

14

(ii)  affirming that the wells shown represent, to

15

the best of the operator's knowledge, all oil or gas

16

wells which have ever been drilled into or below the

17

storage stratum within the proposed storage reservoir;

18

(iii)  stating whether the initial injection is for

19

testing purposes;

20

(iv)  stating the maximum pressure at which injection

21

and storage of gas is contemplated; and

22

(v)  providing a detailed explanation of the methods

23

to be used or which previously have been used in

24

drilling, cleaning out, reconditioning and plugging wells

25

in the storage reservoir.

26

(4)  The map and data required to be filed under

27

paragraph (3) shall be amended or supplemented semiannually

28

if material changes occur. The department may require a

29

storage operator to amend or supplement the map or data at

30

more frequent intervals if material changes have occurred

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1

justifying the earlier filing.

2

(c)  Political subdivisions.--Storage operators shall give

3

notice to the department of the name of each political

4

subdivision and county in which the operator maintains and

5

operates a gas storage reservoir.

6

(d)  Notice to affected persons.--At the time of the filing

7

of maps and data and the filing of amended or supplemental maps

8

or data required by this section, the person filing the

9

information shall give written notice of the filing to all

10

persons who may be affected under the provisions of this chapter

11

by the storage reservoir described in the maps or data. Notices

12

shall contain a description of the boundaries of the storage

13

reservoir. When a person operating a coal mine or owning an

14

interest in coal properties which are or may be affected by the

15

storage reservoir requests, in writing, a copy of any map or

16

data filed with the department, the copy shall be furnished by

17

the storage operator.

18

(e)  Outside boundaries.--For purposes of this chapter, the

19

outside boundaries of a storage reservoir shall be defined by

20

the location of those wells around the periphery of the storage

21

reservoir which had no gas production when drilled in the

22

storage stratum. The boundaries shall be originally fixed or

23

subsequently changed if, based on the number and nature of the

24

wells and the geological and production knowledge of the storage

25

stratum, its character, permeability, distribution and operating

26

experience, it is determined in a conference under section 3251

27

(relating to conferences) that modifications should be made.

28

(f)  Inapplicability of section.--The requirements of this

29

section shall not apply to the operator of an underground gas

30

storage reservoir so long as the reservoir is located more than

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1

10,000 linear feet from an operating coal mine, except that the

2

storage operator shall give notice to the department of the name

3

of each political subdivision and county in which the operator

4

maintains and operates a gas storage reservoir. In political

5

subdivisions and counties where both gas storage reservoirs and

6

coal mines are being operated, the department may request the

7

storage operator to furnish maps showing geographical locations

8

and outside boundaries of the storage reservoirs. The department

9

shall keep a record of the information and promptly notify the

10

coal operator and the storage operator when notified by them

11

that the coal mine and storage reservoir are within 10,000

12

linear feet of each other.

13

§ 3232.  Reporting requirements for coal mining operations.

14

(a)  General rule.--A person owning or operating a coal mine

15

shall file with the department a map prepared and sealed by a

16

competent individual licensed as a professional engineer or

17

professional land surveyor under the provisions of the act of

18

May 23, 1945 (P.L.913, No.367), known as the Engineer, Land

19

Surveyor and Geologist Registration Law, showing the outside

20

coal boundaries of the operating coal mine, the existing

21

workings and exhausted areas and the relationship of the

22

boundaries to identifiable surface properties and landmarks. A

23

person owning or operating an operating coal mine which has been

24

penetrated by a well shall furnish a mine map to the department

25

each year indicating the excavations for the preceding year and

26

the projections for the ensuing year. The map required by this

27

subsection shall be furnished to a person storing or

28

contemplating the storage of gas in the vicinity of operating

29

coal mines, upon written request, by the coal operator, and the

30

person and the department shall thereafter be informed of any

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1

boundary changes at the time the changes occur. The department

2

shall keep a record of the information and promptly notify the

3

coal operator and storage operator when notified by them that

4

the coal mine and the storage reservoir are within 10,000 linear

5

feet of each other.

6

(b)  Mines near certain reservoirs.--A person owning or

7

operating any coal mine which is or which comes within 10,000

8

linear feet of a storage reservoir and where the coal seam being

9

operated extends over the storage reservoir or reservoir

10

protective area shall, within 45 days after receiving notice

11

from the storage operator of that fact, file with the department

12

and furnish to the person operating the storage reservoir a map

13

in the form required by subsection (a) showing, in addition to

14

the requirements of subsection (a), existing and projected

15

excavations and workings of the operating coal mine for the

16

ensuing 18-month period and the location of oil or gas wells of

17

which the coal operator has knowledge. The person owning or

18

operating the coal mine shall, each six months thereafter, file

19

with the department and furnish to the person operating the

20

storage reservoir a revised map showing any additional

21

excavations and workings, together with the projected

22

excavations and workings for the then ensuing 18-month period,

23

which may be within 10,000 linear feet of the storage reservoir.

24

The department may require a coal operator to file revised maps

25

at more frequent intervals if material changes have occurred

26

justifying earlier filing. The person owning or operating the

27

coal mine shall also file with the department and furnish the

28

person operating the reservoir prompt notice of any wells which

29

have been cut into, together with all available pertinent

30

information.

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1

(c)  Mines near gas storage reservoirs.--A person owning or

2

operating a coal mine who has knowledge that it overlies or is

3

within 2,000 linear feet of a gas storage reservoir shall,

4

within 30 days, notify the department and the storage operator

5

of that fact.

6

(d)  Mines projected to be near storage reservoirs.--When a

7

person owning or operating a coal mine expects that, within the

8

ensuing nine-month period, the coal mine will be extended to a

9

point which will be within 2,000 linear feet of any storage

10

reservoir, the person shall notify the department and storage

11

operator in writing of that fact.

12

(e)  New mines.--A person intending to establish or

13

reestablish an operating coal mine which will be over a storage

14

reservoir or within 2,000 linear feet of a storage reservoir or

15

may, within nine months thereafter, be expected to be within

16

2,000 linear feet of a storage reservoir shall immediately

17

notify the department and storage operator in writing. Notice

18

shall include the date on which the person intends to establish

19

or reestablish the operating coal mine.

20

(f)  Misdemeanor.--A person who serves notice as required by

21

this subsection of an intention to establish or reestablish an

22

operating coal mine, without intending in good faith to

23

establish or reestablish the mine, is liable for continuing

24

damages to a storage operator injured by the improper notice and

25

commits a misdemeanor subject to the penalties of section 3255

26

(relating to penalties).

27

§ 3233.  General gas storage reservoir operations.

28

(a)  General rule.--A person who operates or proposes to

29

operate a storage reservoir, except one filled by the secondary

30

recovery or gas recycling process, shall:

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1

(1)  Use every known method which is reasonable under the

2

circumstances for discovering and locating all wells which

3

have or may have been drilled into or through the storage

4

reservoir.

5

(2)  Plug or recondition, as provided in departmental

6

regulations, all known wells drilled into or through the

7

storage reservoir, except to the extent otherwise provided in

8

subsections (b) and (c).

9

(b)  Wells to be plugged.--To comply with subsection (a),

10

wells which are to be plugged shall be plugged in the manner

11

specified in section 3220 (relating to plugging requirements).

12

(b.1)  Wells plugged prior to enactment of section.--If a

13

well located in the storage reservoir area has been plugged

14

prior to April 18, 1985, and on the basis of data, information

15

and other evidence submitted to the department, it is determined

16

that the plugging was done in the manner required by section

17

3220 or approved as an alternative method under section 3221

18

(relating to alternative methods) and the plugging is still

19

sufficiently effective to meet the requirements of this chapter,

20

the obligations under subsection (a) with regard to plugging the

21

well shall be considered to have been fully satisfied.

22

(c)  Wells to be reconditioned.--The following shall apply:

23

(1)  To comply with subsection (a), wells which are to be

24

reconditioned shall, unless the department by regulation

25

specifies a different procedure, be cleaned out from the

26

surface through the storage horizon, and the producing casing

27

and casing strings determined not to be in good physical

28

condition shall be replaced with new casing, using the same

29

procedure as is applicable to drilling a new well under this

30

chapter. In the case of wells to be used for gas storage, the

- 91 -

 


1

annular space between each string of casing and the annular

2

space behind the largest diameter casing to the extent

3

possible shall be filled to the surface with cement or

4

bentonitic mud or a nonporous material approved by the

5

department under section 3221. At least 15 days prior to

6

reconditioning, the storage operator shall give notice to the

7

department, setting forth in the notice the manner in which

8

it is planned to recondition the well and any pertinent data

9

known to the storage operator which will indicate the

10

condition of the well existing at that time. In addition, the

11

storage operator shall give the department at least 72 hours'

12

notice of the time when reconditioning is to begin. If no

13

objections are raised by the department within ten days, the

14

storage operator may proceed with reconditioning in

15

accordance with the plan as submitted. If objections are made

16

by the department, the department may fix a time and place

17

for a conference under section 3251 (relating to conferences)

18

at which the storage operator and department shall endeavor

19

to agree on a plan to satisfy the objections and meet the

20

requirements of this section. If no agreement is reached, the

21

department may, by an appropriate order, determine whether

22

the plan as submitted meets the requirements of this section

23

or what changes, if any, are required. If, in reconditioning

24

a well in accordance with the plan, physical conditions are

25

encountered which justify or necessitate a change in the

26

plan, the storage operator may request that the plan be

27

changed. If the request is denied, the department shall fix a

28

conference under section 3251 and proceed in the same manner

29

as with original objections. An application may be made in

30

the manner prescribed by section 3221 for approval of an

- 92 -

 


1

alternative method of reconditioning a well. If a well

2

located within the storage reservoir was reconditioned, or

3

drilled and equipped, prior to April 18, 1985, the

4

obligations imposed by subsection (a), as to reconditioning

5

the well, shall be considered fully satisfied if, on the

6

basis of the data, information and other evidence submitted

7

to the department, it is determined that:

8

(i)  The conditioning or previous drilling and

9

equipping was done in the manner required in this

10

subsection, in regulations promulgated under this chapter

11

or in a manner approved as an alternative method in

12

accordance with section 3221.

13

(ii)  The reconditioning or previous drilling and

14

equipping is still sufficiently effective to meet the

15

requirements of this chapter.

16

(2)  If a well requires emergency repairs, this chapter

17

shall not be construed to require the storage operator to

18

give any notice required by this subsection before making the

19

repairs.

20

(d)  Exception.--The requirements of subsection (a) shall not

21

apply to injection of gas into a stratum when the sole purpose

22

of injection, referred to in this subsection as testing, is to

23

determine whether the stratum is suitable for storage purposes.

24

Testing shall be conducted only in compliance with the following

25

requirements:

26

(1)  The person testing or proposing to test shall comply

27

with section 3231 (relating to reporting requirements for gas

28

storage operations) and verify the statement required to be

29

filed by that section.

30

(2)  The storage operator shall give at least six months'

- 93 -

 


1

written notice to the department of the fact that injection

2

of gas for testing purposes is proposed.

3

(3)  If the department has objections, the department

4

shall fix a time and place for a conference under section

5

3251, not more than ten days from the date of notice to the

6

storage operator, at which time the storage operator and

7

department shall attempt to resolve the issues presented. If

8

an agreement cannot be reached, the department may issue an

9

appropriate order.

10

(e)  Failure to execute lawful order.--In a proceeding under

11

this chapter, if the department determines that an operator of a

12

storage reservoir has failed to carry out a lawful order issued

13

under this chapter, the department may require the operator to

14

suspend operation of the reservoir and withdraw the gas until

15

the violation is remedied, in which case the storage operator,

16

limited by due diligence insofar as existing facilities utilized

17

to remove gas from the reservoir will permit, shall:

18

(1)  if possible, remove the amount required by the

19

department to be removed; or

20

(2)  in any event, remove the maximum amount which can be

21

withdrawn in accordance with recognized engineering and

22

operating procedures.

23

(f)  Duty of storage reservoir operator.--The following shall

24

apply:

25

(1)  A person owning or operating a storage reservoir

26

subject to this chapter shall have a duty to:

27

(i)  Maintain all wells drilled into or through the

28

reservoir in a condition, and operate them in a manner,

29

sufficient to prevent the escape of gas.

30

(ii)  Operate and maintain the reservoir and its

- 94 -

 


1

facilities as prescribed by departmental regulations and

2

at a pressure which will prevent gas from escaping, but

3

the pressure shall not exceed the highest rock pressure

4

found to have existed during the production history of

5

the reservoir or another high pressure limit approved by

6

the department after holding a conference under section

7

3251 based on geological and production knowledge of the

8

reservoir, its character, permeability distribution and

9

operating experience.

10

(2)  The duty under paragraph (1) shall not be construed

11

to include inability to prevent the escape of gas when gas

12

escapes as a result of an act of God or a person not under

13

the control of the storage operator. In that instance, the

14

storage operator shall have a duty to take action reasonably

15

necessary to prevent further escape of gas. This paragraph

16

does not apply to a well which the storage operator failed to

17

locate and make known to the department.

18

§ 3234.  Gas storage reservoir operations in coal areas.

19

(a)  General rule.--A person operating a storage reservoir

20

which underlies or is within 2,000 linear feet of a coal mine

21

operating in a coal seam that extends over the storage reservoir

22

or the reservoir protective area shall:

23

(1)  Use every known reasonable method for discovering

24

and locating all wells which have or may have been drilled

25

into or through the storage stratum in the acreage lying

26

within the outside coal boundaries of the operating coal mine

27

overlying the storage reservoir or the reservoir protective

28

area.

29

(2)  Plug or recondition, as provided by section 3220

30

(relating to plugging requirements) and subsection (e), all

- 95 -

 


1

known wells, except to the extent provided in subsections

2

(e), (f), (g) and (h), drilled into or through the storage

3

stratum and located within the portion of the acreage of the

4

operating coal mine overlying the storage reservoir or the

5

reservoir protective area. If an objection is raised as to

6

use of a well as a storage well and after a conference under

7

section 3251 (relating to conferences), it is determined by

8

the department, taking into account all circumstances and

9

conditions, that the well should not be used as a storage

10

well, the well shall be plugged unless, in the opinion of the

11

storage operator, the well may be used as a storage well in

12

the future, in which case, upon approval of the department

13

after taking into account all circumstances and conditions,

14

the storage operator may recondition and inactivate the well

15

rather than plug it.

16

(3)  The requirements of paragraph (2) shall be deemed to

17

have been fully complied with if, as the operating coal mine

18

is extended, all wells which from time to time come within

19

the acreage described in paragraph (2) are reconditioned or

20

plugged as provided in section 3220 and subsection (e) or (f)

21

so that, by the time the coal mine has reached a point within

22

2,000 linear feet of the wells, they will have been

23

reconditioned or plugged in accordance with section 3220 and

24

subsection (e) or (f).

25

(b)  Verified statement.--A person operating a storage

26

reservoir referred to in subsection (a) shall file with the

27

department and furnish a copy to the person operating the

28

affected operating coal mine a verified statement setting forth:

29

(1)  That the map and any supplemental maps required by

30

section 3231(a) (relating to reporting requirements for gas

- 96 -

 


1

storage operations) have been prepared and filed in

2

accordance with section 3231.

3

(2)  A detailed explanation of what the storage operator

4

has done to comply with the requirements of subsection (a)(1)

5

and (2) and the results of those actions.

6

(3)  Such additional efforts, if any, as the storage

7

operator is making and intends to make to locate all wells.

8

(4)  Any additional wells that are to be plugged or

9

reconditioned to meet the requirements of subsection (a)(2).

10

(b.1)  Order of department.--If the statement required under

11

subsection (b) is not filed by the storage reservoir operator

12

within the time specified by this chapter or the regulations of

13

the department, the department may order the operator to file

14

the statement.

15

(c)  Procedure.--Within 120 days after receipt of a statement

16

required by this section, the department may direct that a

17

conference be held in accordance with section 3251 to determine

18

whether the requirements of section 3231 and subsection (a) have

19

been fully met. At the conference, if any person believes the

20

requirements have not been fully met, the parties shall attempt

21

to agree on additional actions to be taken and the time for

22

completion, subject to approval of the department. If an

23

agreement cannot be reached, the department shall make a

24

determination and, if the department determines any requirements

25

have not been met, the department shall issue an order

26

specifying in detail the extent to which the requirements have

27

not been met and the actions which the storage operator must

28

complete to meet the requirements. The order shall grant as much

29

time as is reasonably necessary to fully comply. If the storage

30

operator encounters conditions not known to exist at the time of

- 97 -

 


1

issuance of the order and which materially affect the validity

2

of the order or the ability of the storage operator to comply

3

with it, the storage operator may apply for a rehearing or

4

modification of the order.

5

(d)  Notification.--If, in complying with subsection (a), a

6

storage operator, after filing the statement provided for in

7

subsection (b), plugs or reconditions a well, the storage

8

operator shall notify the department and the coal operator

9

affected, in writing, setting forth facts indicating the manner

10

in which the plugging or reconditioning was done. Upon receipt

11

of the notification, the coal operator or department may request

12

a conference under section 3251.

13

(e)  Plugging wells.--In order to meet the requirements of

14

subsection (a), wells which are to be plugged shall be plugged

15

in the manner specified in regulations promulgated under section

16

3211 (relating to well permits). When a well located within the

17

storage reservoir or the reservoir protective area has been

18

plugged prior to April 18, 1985, and, on the basis of the data

19

information and other evidence submitted to the department, it

20

is determined that the plugging was done in the manner required

21

by section 3220, or in a manner approved as an alternative

22

method in accordance with section 3221 (relating to alternative

23

methods), and the plugging is still sufficiently effective to

24

meet the requirements of this chapter, the requirements of

25

subsection (a) as to plugging the well shall be considered to

26

have been fully satisfied.

27

(f)  Reconditioned wells.--The following shall apply:

28

(1)  In order to comply with subsection (a), unless the

29

department by regulation specifies a different procedure,

30

wells which are to be reconditioned shall be cleaned out from

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1

the surface through the storage horizon, and the following

2

casing strings shall be pulled and replaced with new casing,

3

using the procedure applicable to drilling a new well under

4

this chapter:

5

(i)  the producing casing;

6

(ii)  the largest diameter casing passing through the

7

lowest workable coal seam unless it extends at least 25

8

feet below the bottom of the coal seam and is determined

9

to be in good physical condition, but the storage

10

operator may, instead of replacing the largest diameter

11

casing, replace the next largest casing string if the

12

casing string extends at least 25 feet below the lowest

13

workable coal seam; and

14

(iii)  casing strings determined not to be in good

15

physical condition.

16

(2)  In the case of a well to be used for gas storage,

17

the annular space between each string of casing and the

18

annular space behind the largest diameter casing, to the

19

extent possible, shall be filled to the surface with cement

20

or bentonitic mud or an equally nonporous material approved

21

by the department under section 3221.

22

(3)  At least 15 days before a well is to be

23

reconditioned, the storage operator shall give notice to the

24

department and the coal operator, lessee or owner, setting

25

forth the manner in which reconditioning is planned and

26

pertinent data known to the storage operator which will

27

indicate the current condition of the well, along with at

28

least 72 hours' notice of the date and time when

29

reconditioning will begin. The coal operator, lessee or owner

30

shall have the right to file, within ten days after receipt

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1

of the notice, objections to the plan of reconditioning as

2

submitted by the storage operator. If no objections are filed

3

and none are raised by the department within ten days, the

4

storage operator may proceed with reconditioning in

5

accordance with the plan as submitted. If an objection is

6

filed or made by the department, the department shall fix a

7

time and place for a conference under section 3251, at which

8

conference the storage operator and the person having

9

objections shall attempt to agree on a plan of reconditioning

10

that meets the requirements of this section. If no agreement

11

is reached, the department shall, by an appropriate order,

12

determine whether the plan as submitted meets the

13

requirements of this section or what changes should be made

14

to meet the requirements. If, in reconditioning the well in

15

accordance with the plan, physical conditions are encountered

16

which justify or necessitate a change in the plan, the

17

storage operator or coal operator may request that the plan

18

be changed. If the parties cannot agree on a change, the

19

department shall arrange for a conference to determine the

20

matter in the same manner as set forth in connection with

21

original objections to the plan.

22

(4)  Application may be made to the department in the

23

manner prescribed in section 3221 for approval of an

24

alternative method of reconditioning a well. When a well

25

located within the storage reservoir or the reservoir

26

protective area has been reconditioned or drilled and

27

equipped prior to April 18, 1985, and, on the basis of the

28

data, information and other evidence submitted to the

29

department, the obligations imposed by subsection (a) as to

30

reconditioning the well shall be considered to be fully

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1

satisfied if it is determined that reconditioning or previous

2

drilling and equipping:

3

(i)  was done in the manner required in this

4

subsection, or in regulations promulgated hereunder, or

5

in a manner approved as an alternative method in

6

accordance with section 3221; or

7

(ii)  is still sufficiently effective to meet the

8

requirements of this chapter.

9

(5)  If a well requires emergency repairs, this

10

subsection shall not be construed to require the storage

11

operator to give the notices specified herein before making

12

the repairs.

13

(g)  Producing wells.--If a well located within the reservoir

14

protective area is a producing well in a stratum below the

15

storage stratum, the obligations imposed by subsection (a) shall

16

not begin until the well ceases to be a producing well.

17

(h)  Certain other wells.--If a well within a storage

18

reservoir or reservoir protective area penetrates the storage

19

stratum but does not penetrate the coal seam being mined by an

20

operating coal mine, the department may, upon application of the

21

operator of the storage reservoir, exempt the well from the

22

requirements of this section. Either party affected may request

23

a conference under section 3251 with respect to exemption of a

24

well covered by this subsection.

25

(i)  Plugging limitation.--In fulfilling the requirements of

26

subsection (a)(2) with respect to a well within the reservoir

27

protective area, the storage operator shall not be required to

28

plug or recondition the well until the storage operator has

29

received from the coal operator written notice that the mine

30

workings will, within the period stated in the notice, be within

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1

2,000 linear feet of the well. Upon the receipt of the notice,

2

the storage operator shall use due diligence to complete the

3

plugging or reconditioning of the well in accordance with the

4

requirements of this section and section 3220. If the mine

5

workings do not, within a period of three years after the well

6

has been plugged, come within 2,000 linear feet of the well, the

7

coal operator shall reimburse the storage operator for the cost

8

of plugging, provided that the well is still within the

9

reservoir protective area as of that time.

10

(j)  Retreat mining.--If retreat mining approaches a point

11

where, within 90 days, it is expected that the retreat work will

12

be at the location of the pillar surrounding an active storage

13

well, the coal operator shall give written notice to the storage

14

operator, and by agreement, the parties shall determine whether

15

it is necessary or advisable to effectively and temporarily

16

inactivate the well. The well shall not be reactivated until a

17

reasonable period, determined by the parties, has elapsed. If

18

the parties cannot agree as required by this subsection, the

19

matter shall be submitted to the department for resolution. The

20

number of wells required to be temporarily inactivated during

21

the retreat period shall not be of a number that materially

22

affects efficient operation of the storage pool, except that

23

this provision shall not preclude temporary inactivation of a

24

particular well if the practical effect of inactivating it is to

25

render the pool temporarily inoperative.

26

(k)  Exceptions.--The requirements of subsections (a), (l)

27

and (m) shall not apply to injection of gas into a stratum when

28

the whole purpose of injection, referred to in this subsection

29

as testing, is to determine whether the stratum is suitable for

30

storage purposes. Testing shall be conducted only in compliance

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1

with the following requirements:

2

(1)  The person testing or proposing to test shall comply

3

with all provisions and requirements of section 3231 and

4

verify the statement required to be filed by that section.

5

(2)  If any part of the proposed storage reservoir is

6

under or within 2,000 linear feet of an operating coal mine

7

which is operating in a coal seam that extends over the

8

proposed storage reservoir or the reservoir protective area,

9

the storage operator shall give at least six months' written

10

notice to the department and coal operator of the fact that

11

injection of gas for testing purposes is proposed.

12

(3)  The coal operator affected may at any time file

13

objections with the department, whereupon the department

14

shall fix a time and place for a conference under section

15

3251, not more than ten days from the date of the notice to

16

the storage operator. At the conference, the storage operator

17

and the objecting party shall attempt to agree, subject to

18

approval of the department, on the questions involved. If an

19

agreement cannot be reached, the department may issue an

20

appropriate order.

21

(4)  If at any time a proposed storage reservoir being

22

tested comes under or within 2,000 linear feet of an

23

operating coal mine because of extension of the storage

24

reservoir being tested or because of extension or

25

establishment or reestablishment of the operating coal mine,

26

the requirements of this subsection shall immediately become

27

applicable to the testing.

28

(l)  Storage reservoirs near operating coal mines.--A person

29

who proposes to establish a storage reservoir under or within

30

2,000 linear feet of a coal mine operating in a coal seam that

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1

extends over the storage reservoir or the reservoir protective

2

area shall, prior to establishing the reservoir, and in addition

3

to complying with section 3231 and subsection (a), file the

4

verified statement required by subsection (b) and fully comply

5

with any order of the department in the manner provided under

6

subsection (b) or (c) before commencing operation of the storage

7

reservoir. After the person proposing to operate the storage

8

reservoir complies with the requirements of this subsection and

9

commences operations, the person shall continue to be subject to

10

all provisions of this chapter.

11

(m)  Gas storage reservoirs.--If a gas storage reservoir is

12

in operation on April 18, 1985, and at any time thereafter it is

13

under or within 2,000 linear feet of an operating coal mine, or

14

if a gas storage reservoir is put in operation after April 18,

15

1985, and at any time after storage operations begin it is under

16

or within 2,000 linear feet of an operating coal mine, the

17

storage operator shall comply with all of the provisions of this

18

section, except that:

19

(1)  the time for filing the verified statement under

20

subsection (b) shall be 60 days after the date stated in the

21

notice filed by the coal operator under section 3232(d) and

22

(e) (relating to reporting requirements for coal mining

23

operations);

24

(2)  the coal operator shall give notice of the delay to

25

the department;

26

(3)  the department shall, upon the request of the

27

storage operator, extend the time for filing the statement by

28

the additional time which will be required to extend or

29

establish or reestablish the operating coal mine to a point

30

within 2,000 linear feet of the reservoir;

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1

(4)  the verified statement shall also indicate that the

2

map referred to in section 3231(a) has been currently amended

3

as of the time of the filing of the statement; and

4

(5)  the person operating the storage reservoir shall

5

continue to be subject to all of the provisions of this

6

chapter.

7

(n)  Failure to comply with order.--If, in any proceeding

8

under this chapter, the department determines that an operator

9

of a storage reservoir has failed to comply with a lawful order

10

issued under this chapter, the department may require the

11

storage operator to suspend operation of the reservoir and

12

withdraw the gas from it until the violation is remedied, in

13

which case the storage operator, limited by due diligence

14

insofar as existing facilities utilized to remove gas from the

15

reservoir will permit, shall:

16

(1)  if possible, remove the amount required by the

17

department to be removed; or

18

(2)  in any event, remove the maximum amount which can be

19

withdrawn in accordance with recognized engineering and

20

operating procedures.

21

(o)  Prevention of escape of gas.--In addition to initial

22

compliance with other provisions of this chapter and lawful

23

orders issued under this chapter, it shall be the duty, at all

24

times, of a person owning or operating a storage reservoir

25

subject to this chapter to keep all wells drilled into or

26

through the storage stratum in a condition, and operate the

27

wells in a manner, which is designed to prevent the escape of

28

gas out of the storage reservoir and its facilities, and to

29

operate and maintain the storage reservoir and its facilities in

30

the manner prescribed by regulation of the department and at a

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1

pressure that will prevent gas from escaping from the reservoir

2

or its facilities. This duty shall not be construed to include

3

inability to prevent the escape of gas when escape results from

4

an act of God or a person not under the control of the storage

5

operator, except that this exception does not apply to a well

6

which the storage operator has failed to locate and make known

7

to the department. If an escape of gas results from an act of

8

God or a person not under the control of the storage operator,

9

the storage operator shall be under the duty to take any action

10

reasonably necessary to prevent further escape of gas out of the

11

storage reservoir and its facilities.

12

§ 3235.  Inspection of facilities and records.

13

(a)  General rule.--The person operating a storage reservoir

14

affected by this chapter shall, at all reasonable times, be

15

permitted to inspect applicable records and facilities of a coal

16

mine overlying the storage reservoir or reservoir protective

17

area. The person operating a coal mine affected by this chapter

18

shall, at all reasonable times, be permitted to inspect

19

applicable records and facilities of a storage reservoir

20

underlying the coal mine.

21

(b)  Order.--If a storage operator or coal operator subject

22

to subsection (a) refuses to permit inspection of records or

23

facilities, the department may, on its own motion or on

24

application of the party seeking inspection, after reasonable

25

written notice and a hearing if requested by an affected party,

26

order inspection.

27

§ 3236.  Reliance on maps and burden of proof.

28

(a)  General rule.--In determining whether a coal mine or

29

operating coal mine is or will be within a particular distance

30

from a storage reservoir which is material under this chapter,

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1

the owner or operator of the coal mine and the storage operator

2

may rely on the most recent map of the storage reservoir or coal

3

mine filed by the other party with the department.

4

(b)  Accuracy.--Where accuracy of a map or data filed under

5

this chapter is in issue, the person that filed the map or data

6

shall:

7

(1)  at the request of an objecting party, disclose the

8

information and method used to compile the map or data, along

9

with any information available to the person that might

10

affect current validity of the map or data; and

11

(2)  have the burden of proving accuracy of the map or

12

data.

13

§ 3237.  Exemptions and prohibitions.

14

(a)  Inapplicability of chapter to certain coal mines.--This

15

chapter shall not apply to the following types of coal mines:

16

(1)  Strip mines and auger mines operating from the

17

surface.

18

(2)  Mines to which the former act of June 9, 1911

19

(P.L.756, No.319), entitled "An act to provide for the health

20

and safety of persons employed in and about the bituminous

21

coal-mines of Pennsylvania, and for the protection and

22

preservation of property connected therewith," did not apply

23

in accordance with section 3 of that act.

24

(3)  Mines to which the former act of June 2, 1891

25

(P.L.176, No.177), entitled "An act to provide for the health

26

and safety of persons employed in and about the anthracite

27

coal mines of Pennsylvania and for the protection and

28

preservation of property connected therewith," did not apply

29

in accordance with section 32 of that act.

30

(b)  Workable coal seams.--Injection of gas for storage

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1

purposes in a workable coal seam, whether or not it is being or

2

has been mined, is prohibited.

3

(b.1)  Original extraction.--Nothing in this chapter

4

prohibits original extraction of natural gas, crude oil or coal.

5

(c)  Certain rock formations.--Nothing in this chapter

6

applies to storage of gas or liquids in storage reservoirs

7

excavated in rock formations specifically for storage purposes.

8

SUBCHAPTER D

9

EMINENT DOMAIN

10

Sec.

11

3241.  Appropriation of interest in real property.

12

§ 3241.  Appropriation of interest in real property.

13

(a)  General rule.--Except as provided in this subsection, a

14

corporation empowered to transport, sell or store natural gas or

15

manufactured gas in this Commonwealth may appropriate an

16

interest in real property located in a storage reservoir or

17

reservoir protective area for injection, storage and removal

18

from storage of natural gas or manufactured gas in a stratum

19

which is or previously has been commercially productive of

20

natural gas. The right granted by this subsection shall not be

21

exercised to acquire any of the following for the purpose of gas

22

storage:

23

(1)  An interest in a geological stratum within the area

24

of a proposed storage reservoir or reservoir protective area:

25

(i)  unless the original recoverable oil or gas

26

reserves in the proposed storage reservoir have been

27

depleted or exhausted by at least 80%; and

28

(ii)  until the condemnor has acquired the right, by

29

grant, lease or other agreement, to store gas in the

30

geological stratum underlying at least 75% of the area of

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1

the proposed storage reservoir.

2

(2)  An interest in a geological stratum within the area

3

of a proposed storage reservoir or reservoir protective area

4

owned directly or indirectly by a gas company or other person

5

engaged in local distribution of natural gas, if the interest

6

to be acquired is presently being used by the gas company or

7

other person for storage of gas in performance of service to

8

customers in its service area.

9

(b)  Construction.--The following shall apply:

10

(1)  This chapter authorizes appropriation within a

11

storage reservoir or reservoir protective area of the

12

following:

13

(i)  a stratum to be used for storage;

14

(ii)  any gas reserve remaining a stratum to be used

15

for storage;

16

(iii)  an active or abandoned well or wells drilled

17

into a stratum to be used for storage; and

18

(iv)  the right to enter upon and use the surface of

19

lands to:

20

(A)  locate, recondition, maintain, plug or

21

replug an active or abandoned well; or

22

(B)  operate a well drilled into or through a

23

stratum to be used for storage.

24

(2)  This chapter does not preclude the owner of

25

nonstorage strata from drilling wells to produce oil or gas

26

from a stratum above or below the storage stratum

27

appropriated by another person, but a person appropriating or

28

holding storage rights may access, inspect and examine the

29

drilling, the completed well, drilling logs and other records

30

relating to drilling, equipping or operating the well in

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1

order to determine whether the storage stratum is being

2

adequately protected to prevent escape of gas stored therein.

3

(3)  This chapter does not authorize appropriation of a

4

coal or coal measure, regardless of whether it is being

5

mined, or an interest in the coal mine or coal measure.

6

(c)  Activities through appropriated strata.--A person

7

drilling, operating, using or plugging a well through a stratum

8

appropriated under this chapter shall drill, case, equip,

9

operate or plug it in a manner designed to prevent avoidable

10

escape of gas that may be stored in the storage stratum. Upon

11

violation of this subsection, the court of common pleas of the

12

county where the land in question is situated may compel

13

compliance by injunction or grant other appropriate relief in an

14

action brought by the person storing gas in the storage stratum.

15

(d)  Prerequisites to appropriation.--Before appropriating

16

under this chapter, a person shall attempt to agree with owners

17

of interests in the real property involved as to damages payable

18

for rights and interests to be appropriated, if the owners can

19

be found and are sui juris. If the parties fail to agree, the

20

person shall tender a surety bond to the owners to secure them

21

in the payment of damages. If the owners refuse to accept the

22

bond, cannot be found or are not sui juris, and after reasonable

23

notice to the owners by advertisement or otherwise, the bond

24

shall be presented for approval to the court of common pleas of

25

the county in which the tract of land is situated. Upon the

26

approval of the bond by the court, the right of the person to

27

appropriate in accordance with the provisions of this chapter

28

shall be complete.

29

(e)  Appointment of viewers.--Upon petition of a property

30

owner or a person appropriating under this chapter, the court

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1

shall:

2

(1)  appoint three disinterested freeholders of the

3

county to serve as viewers to assess damages to be paid to

4

the property owner for the rights appropriated;

5

(2)  fix a time for the parties to meet;

6

(3)  provide notice to the parties; and

7

(4)  after the viewers have filed their report, fix

8

reasonable compensation for the service of the viewers.

9

(f)  Appeal.--Within 20 days after the filing of a report by

10

viewers appointed under subsection (e), a party may appeal and

11

proceed to a jury trial as in ordinary cases.

12

(g)  Requirements.--Nothing in this section shall relieve a

13

person operating a storage reservoir from the requirements of

14

this chapter.

15

SUBCHAPTER E

16

ENFORCEMENT AND REMEDIES

17

Sec.

18

3251.  Conferences.

19

3252.  Public nuisances.

20

3253.  Enforcement orders.

21

3254.  Restraining violations.

22

3254.1.  Well control emergency response cost recovery.

23

3255.  Penalties.

24

3256.  Civil penalties.

25

3257.  Existing rights and remedies preserved and cumulative

26

remedies authorized.

27

3258.  Inspection and production of materials, witnesses,

28

depositions and rights of entry.

29

3259.  Unlawful conduct.

30

3260.  Collection of fines and penalties.

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1

3261.  Third party liability.

2

3262.  Inspection reports.

3

§ 3251.  Conferences.

4

(a)  General rule.--The department or any person having a

5

direct interest in a matter subject to this chapter may, at any

6

time, request that a conference be held to discuss and attempt

7

to resolve by mutual agreement a matter arising under this

8

chapter. Unless otherwise provided, conferences shall be held

9

within 90 days after a request is received by the department,

10

and notice shall be given by the department to all interested

11

parties. A representative of the department shall attend the

12

conference and the department may make recommendations. An

13

agreement reached at a conference shall be consistent with this

14

chapter and, if approved by the department, it shall be reduced

15

to writing and shall be effective, unless reviewed and rejected

16

by the department within ten days after the conference. The

17

record of an agreement approved by the department shall be kept

18

on file by the department and copies shall be furnished to the

19

parties. The scheduling of a conference shall have no effect on

20

the department's authority to issue orders to compel compliance

21

with this chapter.

22

(b)  Notification.--When a coal operator is to be notified of

23

a proceeding under this section, the department simultaneously

24

shall send a copy of the notice to the collective bargaining

25

representative of employees of the coal operator.

26

§ 3252.  Public nuisances.

27

A violation of section 3215.1 (relating to general

28

restrictions), 3216 (relating to well site restoration), 3217

29

(relating to protection of fresh groundwater and casing

30

requirements), 3218 (relating to protection of water supplies),

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1

3219 (relating to use of safety devices) or 3220 (relating to

2

plugging requirements), or a rule, regulation, order, term or

3

condition of a permit relating to any of those sections

4

constitutes a public nuisance.

5

§ 3253.  Enforcement orders.

6

(a)  General rule.--Except as modified by subsections (b),

7

(c) and (d), the department may issue orders necessary to aid in

8

enforcement of this chapter. An order issued under this chapter

9

shall take effect upon notice, unless the order specifies

10

otherwise. The power of the department to issue an order under

11

this chapter is in addition to any other remedy available to the

12

department under this chapter or under any other law.

13

(b)  Suspension and revocation.--The department may suspend

14

or revoke a well permit or well registration for any well in

15

continuing violation of this chapter, the act of June 22, 1937

16

(P.L.1987, No.394), known as The Clean Streams Law; the act of

17

July 7, 1980 (P.L.380, No.97), known as the Solid Waste

18

Management Act; any other statute administered by the

19

department; or a rule or regulation. A suspension order of the

20

department shall automatically terminate if the violation upon

21

which it is based is corrected by the operator to the

22

satisfaction of the department in order to bring the well into

23

compliance with this chapter.

24

(c)  Written notice.--Prior to suspension or revocation of a

25

well permit or registration, the department shall serve written

26

notice on the well operator or its agent, stating specifically

27

the statutory provision, rule, regulation or other reason relied

28

upon, along with factual circumstances surrounding the alleged

29

violation.

30

(d)  Immediate orders.--An order of the department requiring

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1

immediate cessation of drilling operations shall be effective

2

only if authorized by the secretary or a designee.

3

(e)  Grievances.--A person aggrieved by a department order

4

issued under this section shall have the right, within 30 days

5

of receipt of the notice, to appeal to the Environmental Hearing

6

Board.

7

§ 3254.  Restraining violations.

8

(a)  General rule.--In addition to any other remedy provided

9

in this chapter, the department may institute a suit in equity

10

in the name of the Commonwealth for an injunction to restrain a

11

violation of this chapter or rules, regulations, standards or

12

orders adopted or issued under this chapter and to restrain the

13

maintenance or threat of a public nuisance. Upon motion of the

14

Commonwealth, the court shall issue a prohibitory or mandatory

15

preliminary injunction if it finds that the defendant is

16

engaging in unlawful conduct, as defined by this chapter, or

17

conduct causing immediate and irreparable harm to the public.

18

The Commonwealth shall not be required to furnish bond or other

19

security in connection with the proceeding. In addition to an

20

injunction, the court in equity may level civil penalties as

21

specified in section 3256 (relating to civil penalties).

22

(b)  District attorney.--In addition to other remedies in

23

this chapter, upon relation of the district attorney of a county

24

affected, or upon relation of the solicitor of a municipality

25

affected, an action in equity may be brought in a court of

26

competent jurisdiction for an injunction to restrain a violation

27

of this chapter or rules and regulations promulgated under this

28

chapter or to restrain a public nuisance or detriment to health.

29

(c)  Concurrent penalties.--Penalties and remedies under this

30

chapter shall be deemed concurrent. Existence or exercise of one

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1

remedy shall not prevent the department from exercising another

2

remedy at law or in equity.

3

(d)  Jurisdiction.--Actions under this section may be filed

4

in the appropriate court of common pleas or in Commonwealth

5

Court, and those courts are hereby granted jurisdiction to hear

6

actions under this section.

7

§ 3254.1.  Well control emergency response cost recovery.

8

A person liable for a well control emergency is responsible

9

for all response costs incurred by the department to respond to

10

the well control emergency. In an action before a court of

11

competent jurisdiction, the department may recover all its

12

response costs, including the cost of regaining control of the

13

well, controlling the perimeter of the well site, preparing

14

water sprays, establishing trenches or dikes to capture runoff

15

fluids and providing the resources and equipment needs for the

16

incident.

17

§ 3255.  Penalties.

18

(a)  General violation.--A person violating a provision of

19

this chapter commits a summary offense and, upon conviction,

20

shall be sentenced to pay a fine of not more than $300 or to

21

imprisonment of not more than 90 days, or both. Each day during

22

which the violation continues is a separate and distinct

23

offense.

24

(b)  Willful violation.--A person willfully violating a

25

provision of this chapter or an order of the department issued

26

under this chapter commits a misdemeanor and, upon conviction,

27

shall be sentenced to pay a fine of not more than $5,000 or to

28

imprisonment of not more than one year, or both. Each day during

29

which the violation continues is a separate and distinct

30

offense.

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1

(c)  Authority.--The department may institute a prosecution

2

against any person or municipality for a violation of this

3

chapter.

4

§ 3256.  Civil penalties.

5

In addition to other remedies available at law or in equity

6

for a violation of this chapter, a rule or regulation of the

7

department or a departmental order, the department, after a

8

hearing, may assess a civil penalty regardless of whether the

9

violation was willful. The penalty shall not exceed $50,000 plus

10

$2,000 for each day during which the violation continues. In

11

determining the amount, the department shall consider

12

willfulness of the violation, damage or injury to natural

13

resources of this Commonwealth or their uses, endangerment of

14

safety of others, the cost of remedying the harm, savings

15

resulting to the violator as a result of the violation and any

16

other relevant factor. When the department proposes to assess a

17

civil penalty, it shall notify the person of the proposed amount

18

of the penalty. The person charged with the penalty must, within

19

30 days of notification, pay the proposed penalty in full or

20

file an appeal of the assessment with the Environmental Hearing

21

Board. Failure to comply with the time period under this section

22

shall result in a waiver of all legal rights to contest the

23

violation or the amount of the penalty. The civil penalty shall

24

be payable to the Commonwealth and collectible in any manner

25

provided at law for collection of debts. If a violator neglects

26

or refuses to pay the penalty after demand, the amount, together

27

with interest and costs that may accrue, shall become a lien in

28

favor of the Commonwealth on the real and personal property of

29

the violator, but only after the lien has been entered and

30

docketed of record by the prothonotary of the county where the

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1

property is situated. The department may at any time transmit to

2

the prothonotaries of the various counties certified copies of

3

all liens. It shall be the duty of each prothonotary to enter

4

and docket the liens of record in the prothonotary's office and

5

index them as judgments are indexed, without requiring payment

6

of costs as a condition precedent to entry.

7

§ 3257.  Existing rights and remedies preserved and cumulative

8

remedies authorized.

9

Nothing in this chapter estops the Commonwealth or a district

10

attorney from proceeding in a court of law or in equity to abate

11

pollution forbidden under this chapter or a nuisance under

12

existing law. It is hereby declared to be the purpose of this

13

chapter to provide additional and cumulative remedies to control

14

activities related to drilling for, or production of, oil and

15

gas in this Commonwealth, and nothing contained in this chapter

16

abridges or alters rights of action or remedies existing, or

17

which existed previously, in equity or under common or statutory

18

law, criminal or civil. Neither this chapter, the grant of a

19

permit under this chapter nor an act done by virtue of this

20

chapter estops the Commonwealth, in exercising rights under

21

common or decisional law or in equity, from suppressing a

22

nuisance, abating pollution or enforcing common law or statutory

23

rights. No court of this Commonwealth with jurisdiction to abate

24

public or private nuisances shall be deprived of jurisdiction in

25

an action to abate a private or public nuisance instituted by

26

any person on grounds that the nuisance constitutes air or water

27

pollution.

28

§ 3258.  Inspection and production of materials, witnesses,

29

depositions and rights of entry.

30

(a)  General rule.--The department may make inspections,

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1

conduct tests or sampling or examine books, papers and records

2

pertinent to a matter under investigation under this chapter to

3

determine compliance with this chapter. For this purpose, the

4

duly authorized agents and employees of the department may at

5

all reasonable times enter and examine any involved property,

6

facility, operation or activity.

7

(a.1)  Preoperation inspections.--The operator may not

8

commence drilling activities until the department has conducted

9

an inspection of the unconventional well site after the

10

installation of erosion and sediment control measures. The

11

department may conduct follow-up inspections of well sites and

12

related activities to determine compliance with the act.

13

(b)  Access.--The owner, operator or other person in charge

14

of a property, facility, operation or activity under this

15

chapter, upon presentation of proper identification and purpose

16

either for inspection or to remediate or otherwise respond to a

17

well control emergency, by agents or employees of the

18

department, shall provide free and unrestricted entry and

19

access. Upon refusal, the agent or employee may obtain a search

20

warrant or other suitable order authorizing entry and inspection

21

remediation or response. It shall be sufficient to justify

22

issuance of a search warrant authorizing examination and

23

inspection if:

24

(1)  there is probable cause to believe that the object

25

of the investigation is subject to regulation under this

26

chapter; and

27

(2)  access, examination or inspection is necessary to

28

enforce the provisions of this chapter.

29

(c)  Witnesses.--In any part of this Commonwealth, the

30

department may subpoena witnesses, administer oaths, examine

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1

witnesses, take testimony and compel production of books,

2

records, maps, plats, papers, documents and other writings

3

pertinent to proceedings or investigations conducted by the

4

department under this chapter. Upon refusal to obey a subpoena

5

by any person and on application of the department, a court may

6

enforce a subpoena in contempt proceedings. Fees for serving a

7

subpoena shall be the same as those paid to sheriffs for similar

8

services.

9

(d)  Deposition.--The department or a party to a proceeding

10

before the department may cause the deposition of a witness who

11

resides in or outside of this Commonwealth to be taken in the

12

manner prescribed by law for taking depositions in civil

13

actions.

14

(e)  Witness fee.--Witnesses summoned before the department

15

shall be paid the same fees as are paid to witnesses in courts

16

of record of general jurisdiction. Witnesses whose depositions

17

are taken under this chapter, and the officers taking those

18

depositions, shall be entitled to the same fees as those paid

19

for like services in court.

20

(f)  Purchasers.--Upon request, a purchaser of oil or gas

21

shall provide the department information necessary to determine

22

ownership of facilities from which the purchaser obtained oil or

23

gas. The information shall be kept confidential for a period of

24

five years, and the department may utilize it in enforcement

25

proceedings. The department may request information under this

26

section only when a well does not comply with section 3211(h)

27

(relating to well permits).

28

§ 3259.  Unlawful conduct.

29

It shall be unlawful for any person to:

30

(1)  Drill, alter, operate or utilize an oil or gas well

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1

without a permit or registration from the department as

2

required by this chapter or in violation of rules or

3

regulations adopted under this chapter, orders of the

4

department or a term or condition of a permit issued by the

5

department.

6

(2)  Conduct an activity related to drilling for, or

7

production of, oil and gas:

8

(i)  contrary to this chapter, rules or regulations

9

adopted under this chapter, an order of the department or

10

a term or condition of a permit issued by the department;

11

or

12

(ii)  in any manner as to create a public nuisance or

13

adversely affect public health, safety, welfare or the

14

environment.

15

(3)  Refuse, obstruct, delay or threaten an agent or

16

employee of the department acting in the course of lawful

17

performance of a duty under this chapter, including, but not

18

limited to, entry and inspection.

19

(4)  Attempt to obtain a permit or identify a well as an

20

orphan well by misrepresentation or failure to disclose all

21

relevant facts.

22

(5)  Cause abandonment of a well by removal of casing or

23

equipment necessary for production without plugging the well

24

in the manner prescribed under section 3220 (relating to

25

plugging requirements), except that the owner or operator of

26

a well may temporarily remove casing or equipment necessary

27

for production, but only if it is part of the normal course

28

of production activities.

29

§ 3260.  Collection of fines and penalties.

30

Fines and penalties shall be collectible in a manner provided

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1

by law for collection of debts. If a person liable to pay a

2

penalty neglects or refuses to pay after demand, the amount,

3

together with interest and costs that may accrue, shall be a

4

judgment in favor of the Commonwealth on the person's property,

5

but only after the judgment has been entered and docketed of

6

record by the prothonotary of the county where the property is

7

situated. The department may transmit to prothonotaries of the

8

various counties certified copies of all judgments, and it shall

9

be the duty of each prothonotary to enter and docket them of

10

record in the prothonotary's office and index them as judgments

11

are indexed, without requiring payment of costs as a condition

12

precedent to entry.

13

§ 3261.  Third party liability.

14

If a person other than a well operator renders a service or

15

product to a well or well site, that person is jointly and

16

severally liable with the well owner or operator for violations

17

of this chapter arising out of and caused by the person's

18

actions at the well or well site.

19

§ 3262.  Inspection reports.

20

The department shall post inspection reports on its publicly

21

accessible Internet website. The inspection reports shall

22

include:

23

(1)  The nature and description of violations.

24

(2)  The operator's written response to the violation, if

25

available.

26

(3)  The status of the violation.

27

(4)  The remedial steps taken by the operator or the

28

department to address the violation.

29

SUBCHAPTER F

30

MISCELLANEOUS PROVISIONS

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1

Sec.

2

3271.  Well plugging funds.

3

3272.  Local ordinances.

4

3273.  Effect on department authority.

5

3273.1.  Relationship to solid waste and surface mining.

6

3274.  Regulatory authority.

7

§ 3271. Well plugging funds.

8

(a)  Appropriation.--Fines, civil penalties and permit and

9

registration fees collected under this chapter are appropriated

10

to the department to carry out the purposes of this chapter.

11

(b)  Surcharge.--To aid in indemnifying the Commonwealth for

12

the cost of plugging abandoned wells, a $50 surcharge is added

13

to the permit fee established by the department under section

14

3211 (relating to well permits) for new wells. Money collected

15

as a result of the surcharge shall be paid into a restricted

16

revenue account in the State Treasury to be known as the

17

Abandoned Well Plugging Fund and expended by the department to

18

plug abandoned wells threatening the health and safety of

19

persons or property or pollution of waters of this Commonwealth.

20

(c)  Orphan Well Plugging Fund.--The following shall apply:

21

(1)  A restricted revenue account to be known as the

22

Orphan Well Plugging Fund is created. A $100 surcharge for

23

wells to be drilled for oil production and a $200 surcharge

24

for wells to be drilled for gas production are added to the

25

permit fee established by the department under section 3211

26

for new wells. The surcharges shall be placed in the Orphan

27

Well Plugging Fund and expended by the department to plug

28

orphan wells. If an operator rehabilitates a well abandoned

29

by another operator or an orphan well, the permit fee and the

30

surcharge for the well shall be waived.

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1

(2)  The department shall study its experience in

2

implementing this section and shall report its findings to

3

the Governor and the General Assembly by August 1, 1992. The

4

report shall contain information relating to the balance of

5

the fund, number of wells plugged, number of identified wells

6

eligible for plugging and recommendations as to alternative

7

funding mechanisms.

8

(3)  Expenditures by the department for plugging orphan

9

wells are limited to fees collected under this chapter. No

10

money from the General Fund shall be expended for this

11

purpose.

12

§ 3272.  Local ordinances.

13

(a)  General rule.--Except as provided under subsection (b),

14

this chapter and any other environmental law are of Statewide

15

concern and occupy the entire field of regulation regarding oil

16

and gas operations, to the exclusion of all local rules,

17

regulations, codes, agreements, resolutions, ordinances and

18

other local enactments. No local rule, regulation, code,

19

agreement, resolution, ordinance or other local enactment of any

20

municipality may regulate oil and gas operations. All local

21

rules, regulations, codes, agreements, resolutions, ordinances

22

and other local enactments that regulate oil and gas operations

23

are hereby superseded and preempted.

24

(b)  Exception.--Subsection (a) shall not apply to ordinances

25

adopted under the act of October 4, 1978 (P.L.851, No.166),

26

known as the Flood Plain Management Act.

27

§ 3273.  Effect on department authority.

28

This chapter does not affect, limit or impair any right or

29

authority of the department under the act of June 22, 1937

30

(P.L.1987, No.394), known as The Clean Streams Law; the act of

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1

January 8, 1960 (1959 P.L.2119, No.787), known as the Air

2

Pollution Control Act; the act of November 26, 1978 (P.L.1375,

3

No.325), known as the Dam Safety and Encroachments Act; or the

4

act of July 7, 1980 (P.L.380, No.97), known as the Solid Waste

5

Management Act.

6

§ 3273.1.  Relationship to solid waste and surface mining.

7

(a)  General rule.--The obligation to obtain a permit and

8

post a bond under Articles III and V of the act of July 7, 1980

9

(P.L.380, No.97), known as the Solid Waste Management Act, and

10

to provide public notice under section 1905-A(b)(1)(v) of the

11

act of April 9, 1929 (P.L.177, No.175), known as The

12

Administrative Code of 1929, for any pit, impoundment, method or

13

facility employed for the disposal, processing or storage of

14

residual wastes generated by the drilling of an oil or gas well

15

or from the production of wells which is located on the well

16

site, shall be considered to have been satisfied if the owner or

17

operator of the well meets the following conditions:

18

(1)  the well is permitted under the requirements of

19

section 3211 (relating to well permits) or registered under

20

section 3213 (relating to well registration and

21

identification);

22

(2)  the owner or operator has satisfied the financial

23

security requirements of section 3215 (relating to well

24

location restrictions) by obtaining a surety or collateral

25

bond for the well and well site; and

26

(3)  the owner or operator maintains compliance with this

27

chapter and applicable regulations of the Environmental

28

Quality Board.

29

(b)  Noncoal surface mining.--Obligations under the act of

30

December 19, 1984 (P.L.1093, No.219), known as the Noncoal

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1

Surface Mining Conservation and Reclamation Act, or a rule or

2

regulation promulgated thereunder, for any borrow area where

3

minerals are extracted solely for the purpose of oil and gas

4

well development, including access road construction, shall be

5

considered to have been satisfied if the owner or operator of

6

the well meets the conditions imposed under subsection (a)(1)

7

and (2) and maintains compliance with this chapter and

8

applicable regulations of the Environmental Quality Board.

9

(c)  Solid Waste Management Act.--This section does not

10

diminish or otherwise affect duties or obligations of an owner

11

or operator under the Solid Waste Management Act. This section

12

does not apply to waste classified as hazardous waste under the

13

Solid Waste Management Act or the Resource Conservation and

14

Recovery Act of 1976 (Public Law 94-580, 90 Stat. 2795, 42

15

U.S.C. § 6901 et seq.).

16

(d)  Definition.--As used in this section and sections 3216

17

(relating to well site restoration) and 3225 (relating to

18

bonding), the term "well site" means areas occupied by all

19

equipment or facilities necessary for or incidental to drilling,

20

production or plugging a well.

21

§ 3274.  Regulatory authority.

22

The Environmental Quality Board shall adopt regulations to

23

implement this chapter.

24

Section 3.  The addition of 27 Pa.C.S. Ch. 33 Subch. B is a

25

continuation of the former act of December 15, 1955 (P.L.865,

26

No.256), entitled "An act requiring rents and royalties from oil

27

and gas leases of Commonwealth land to be placed in a special

28

fund to be used for conservation, recreation, dams and flood

29

control; authorizing the Secretary of Forests and Waters to

30

determine the need for and location of such projects and to

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1

acquire the necessary land." The following apply:

2

(1)  Except as otherwise provided in 27 Pa.C.S. Ch. 33

3

Subch. B, all activities initiated under the former act of

4

December 15, 1955 (P.L.865, No.256) shall continue and remain

5

in full force and effect and may be completed under 27

6

Pa.C.S. Ch. 33 Subch. B. Resolutions, orders, regulations,

7

rules and decisions which were made under the former act of

8

December 15, 1955 (P.L.865, No.256) and which are in effect

9

on the effective date of this section shall remain in full

10

force and effect until revoked, vacated or modified under 27

11

Pa.C.S. Ch. 33 Subch. B. Contracts, obligations and

12

agreements entered into under the former act of December 15,

13

1955 (P.L.865, No.256) are not affected nor impaired by the

14

repeal of the former act of December 15, 1955 (P.L.865,

15

No.256).

16

(2)  Except as set forth in paragraph (3), any difference

17

in language between 27 Pa.C.S. Ch. 33 Subch. B and the former

18

act of December 15, 1955 (P.L.865, No.256) is intended only

19

to conform to the style of the Pennsylvania Consolidated

20

Statutes and is not intended to change or affect the

21

legislative intent, judicial construction or administrative

22

interpretation and implementation of the former act of

23

December 15, 1955 (P.L.865, No.256).

24

(3)  Paragraph (2) does not apply to 27 Pa.C.S. §§ 3301,

25

3302(b)(3), 3305 and 3306.

26

Section 4.  Repeals are as follows:

27

(1)  The General Assembly declares that the repeal under

28

paragraph (2) is necessary to effectuate the addition of 27

29

Pa.C.S. Ch. 33.

30

(2)  The act of December 15, 1955 (P.L.865, No.256),

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1

entitled "An act requiring rents and royalties from oil and

2

gas leases of Commonwealth land to be placed in a special

3

fund to be used for conservation, recreation, dams, and flood

4

control; authorizing the Secretary of Forests and Waters to

5

determine the need for and location of such projects and to

6

acquire the necessary land," is repealed.

7

(3)  The General Assembly declares that the repeal under

8

paragraph (4) is necessary to effectuate the addition of 58

9

Pa.C.S. Ch. 32.

10

(4)  The act of December 19, 1984 (P.L.1140, No.223),

11

known as the Oil and Gas Act, is repealed.

12

Section 5.  The addition of 58 Pa.C.S. Ch. 32 is a

13

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

14

known as the Oil and Gas Act. The following apply:

15

(1)  Except as otherwise provided in 58 Pa.C.S. Ch. 32,

16

all activities initiated under the Oil and Gas Act shall

17

continue and remain in full force and effect and may be

18

completed under 58 Pa.C.S. Ch. 32. Orders, regulations, rules

19

and decisions which were made under the Oil and Gas Act and

20

which are in effect on the effective date of section 2(2) of

21

this act shall remain in full force and effect until revoked,

22

vacated or modified under 58 Pa.C.S. Ch. 32. Contracts,

23

obligations and collective bargaining agreements entered into

24

under the Oil and Gas Act are not affected nor impaired by

25

the repeal of the Oil and Gas Act.

26

(2)  Except as set forth in paragraph (3), any difference

27

in language between 58 Pa.C.S. Ch. 32 and the Oil and Gas Act

28

is intended only to conform to the style of the Pennsylvania

29

Consolidated Statutes and is not intended to change or affect

30

the legislative intent, judicial construction or

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1

administration and implementation of the Oil and Gas Act.

2

(3)  Paragraph (2) does not apply to the addition of 58

3

Pa.C.S. §§ 3203, 3211, 3212.1, 3215, 3215.1, 3216, 3218,

4

3219.1, 3222, 3225, 3252, 3253, 3254.1, 3256, 3258, 3262 and

5

3272.

6

Section 4.  This act shall take effect in 60 days.

7

Section 1.  Title 27 of the Pennsylvania Consolidated

<--

8

Statutes is amended by adding chapters to read:

9

CHAPTER 33

10

OIL AND GAS

11

Subchapter

12

A.  (Reserved)

13

B.  Oil and Gas Lease Fund

14

c.  keystone transit

15

d.  clean transit

16

SUBCHAPTER A

17

(RESERVED)

18

SUBCHAPTER B

19

OIL AND GAS LEASE FUND

20

Sec.

21

3301.  Definitions.

22

3302.  Oil and Gas Lease Fund.

23

3303.  Powers and duties of secretary.

24

3304.  Appropriation of moneys.

25

3305.  Interfund transfers.

26

§ 3301.  Definitions.

27

The following words and phrases when used in this chapter

28

shall have the meanings given to them in this section unless the

29

context clearly indicates otherwise:

30

"Department."  The Department of Conservation and Natural

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1

Resources of the Commonwealth.

2

"Fund."  The Oil and Gas Lease Fund established by this

3

subchapter.

4

"Secretary."  The Secretary of Conservation and Natural

5

Resources of the Commonwealth.

6

§ 3302.  Oil and Gas Lease Fund.

7

(a)  Establishment.--The Oil and Gas Lease Fund is

8

established in the State Treasury.

9

(b)  Deposits.--All rents and royalties from oil and gas

10

leases of any land owned by the Commonwealth, except rents and

11

royalties received from game and fish lands, shall be placed in

12

the fund to be used exclusively:

13

(1)  for conservation, recreation, dams or flood control;

14

(2)  to match any Federal grants which may be made for

15

any of the purposes enumerated in this subchapter; and

16

(3)  for interfund transfers as provided in section 3305

17

(relating to interfund transfers).

18

§ 3303.  Powers and duties of secretary.

19

The secretary shall have the following powers and duties:

20

(1)  To determine, in the secretary's discretion, the

21

need for and the location of any project authorized by this

22

chapter.

23

(2)  To acquire in the name of the Commonwealth by

24

purchase, condemnation or otherwise such lands as may be

25

needed.

26

§ 3304.  Appropriation of moneys.

27

All the moneys from time to time paid into the fund are

28

specifically appropriated on a continuing basis to the

29

department to carry out the purposes of this subchapter.

30

§ 3305.  Interfund transfers.

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1

Transfers shall be made between funds in the State Treasury

2

as follows:

3

(1)  On July 1, 2013, and each July 1 thereafter, an

4

amount equal to 25% of the total moneys received from the

5

prior fiscal year shall be transferred from the fund to the

6

Environmental Stewardship Fund for the purpose of plugging

7

abandoned oil and gas wells and other uses authorized by law

8

for the Environmental Stewardship Fund.

9

(2)  (i)  Beginning July 1, 2014, a total of $40,000,000

10

shall be transferred from the fund to the Hazardous Sites

11

Cleanup Fund for the purpose of remedial response or

12

remedy at oil and gas well sites and other uses

13

authorized by law for the Hazardous Sites Cleanup Fund.

14

(ii)  On July 1, 2015, and each July 1 thereafter,

15

the following shall apply:

16

(A)  the sum of the amount transferred under

17

subparagraph (i) during the prior fiscal year; and

18

(B)  an amount equal to the percentage change in

19

the Consumer Price Index for All Urban Consumers from

20

the prior fiscal year, multiplied by the amount in

21

clause (A),

22

shall be transferred from the fund to the Hazardous Sites

23

Cleanup Fund for the purpose specified in subparagraph

24

(i).

25

(3)  On July 1, 2013, and each July 1 thereafter, an

26

amount equal to 5% of the total moneys received from the

27

prior fiscal year, but not to exceed $5,000,000, shall be

28

transferred from the fund to the several counties, school

29

districts and townships entitled to receive payment from the

30

Commonwealth in lieu of taxes under the act of May 17, 1929

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1

(P.L.1798, No.591), referred to as the Forest Reserves

2

Municipal Financial Relief Law. The moneys transferred under

3

this paragraph shall be allocated to each county, school

4

district and township based on the number of acres of land in

5

the county, school district or township to which the payment

6

under that act applies in proportion to the aggregate number

7

of acres of all such lands of the counties, school districts

8

and townships in this Commonwealth.

9

(4)  On July 1, 2013, and each July 1 thereafter, a total

10

of $15,000,000 shall be transferred from the fund to the

11

Conservation District Fund. These funds shall be distributed

12

in a manner consistent with the act of May 15, 1945 (P.L.547,

13

No.217), known as the Conservation District Law, and the

14

provisions of the State Conservation Commission's

15

Conservation District Fund Allocation Program—Statement of

16

Policy under 25 Pa. Code Ch. 83 Subch. B (relating to

17

Conservation District Fund Allocation Program—Statement of

18

Policy).

19

SUBCHAPTER C

20

KEYSTONE TRANSIT

21

Sec.

22

3311.  Short title of subchapter.

23

3312.  Definitions.

24

3313.  Keystone Transit Program.

25

§ 3311.  Short title of subchapter.

26

This subchapter shall be known and may be cited as the

27

Keystone Transit Act.

28

§ 3312.  Definitions.

29

The following words and phrases when used in this subchapter

30

shall have the meanings given to them in this section unless the

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1

context clearly indicates otherwise:

2

"Dedicated compressed natural gas bus."  A bus which runs

3

solely on compressed natural gas.

4

"Department."  The Department of Environmental Protection of

5

the Commonwealth.

6

"Mass transit authority."  An operator of regularly scheduled

7

transportation that is available to the general public and is

8

provided according to published schedules along designated

9

published routes with specified stopping points for the taking

10

on and discharging of passengers. The term does not include

11

exclusive ride taxi services, charter or sightseeing services,

12

nonpublic transportation or school bus or limousine services.

13

"Program."  The Keystone Transit Program.

14

"Small mass transit authority."  A mass transit authority

15

located in this Commonwealth that does not exceed 245,000

16

revenue vehicle hours for two consecutive years.

17

§ 3313.  Keystone Transit Program.

18

(a)  Establishment.--The department shall establish and

19

administer the Keystone Transit Program.

20

(b)  Purpose.--The program is established in order to

21

decrease emissions from mass transit buses by utilizing natural

22

gas as a vehicle fuel.

23

(c)  Transfer of funds.--The State Treasurer shall transfer

24

from the Oil and Gas Lease Fund to the department the sum of

25

$5,000,000 to fund the program.

26

(d)  Use of funds.--The sum of $5,000,000 shall be used to

27

fund competitive grants available to small mass transit

28

authorities for the purchase of new dedicated compressed natural

29

gas buses.

30

(e)  Application process.--

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1

(1)  A mass transit authority must complete and submit to

2

the department a keystone transit grant application.

3

(2)  Approved applications must obligate the mass transit

4

authority to contract with a private company:

5

(i)  to build exclusively with private funds; and

6

(ii)  to maintain and operate any new compressed

7

natural gas fueling facility necessary to support

8

compressed natural gas buses purchased with funds

9

received under this subchapter.

10

(3)  The term "operate" as used in this subsection shall

11

not include the actual act of fueling buses.

12

(f)  Eligible costs.--

13

(1)  Grant funds received under this subchapter shall be

14

eligible for:

15

(i)  Federally assisted purchases of new dedicated

16

compressed natural gas buses and shall be limited to the

17

total percentage of the State and local match.

18

(ii)  Nonfederally assisted bus purchases and shall

19

be limited to 50% of the total incremental cost of a new

20

dedicated compressed natural gas bus.

21

(2)  The incremental cost shall be capped at $60,000 for

22

buses which have a gross vehicle weight rating over 26,000

23

pounds and $35,000 for buses with a gross vehicle weight

24

rating of 26,000 pounds and under.

25

(3)  Buses with a gross vehicle weight rating of less

26

than 16,000 pounds shall be ineligible.

27

(4)  Priority shall be given to those applications which

28

provide for public access to compressed natural gas vehicle

29

fueling dispensers.

30

(g)  Grant program.--The department shall establish a formula

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1

and method for awarding of grants under the program consistent

2

with this subchapter.

3

(h)  Appeal process.--Applicants that are not awarded grants

4

under this subchapter shall not have the right to a hearing or

5

the issuance of an adjudication under section 4 of the act of

6

July 13, 1988 (P.L.530, No.94), known as the Environmental

7

Hearing Board Act, regarding the department's decision.

8

SUBCHAPTER d

9

CLEAN TRANSIT

10

Sec.

11

3321.  Short title of subchapter.

12

3322.  Definitions.

13

3323.  Clean Transit Program.

14

§ 3321.  Short title of subchapter.

15

This subchapter shall be known and may be cited as the Clean

16

Transit Act.

17

§ 3322.  Definitions.

18

The following words and phrases when used in this subchapter

19

shall have the meanings given to them in this section unless the

20

context clearly indicates otherwise:

21

"Dedicated compressed natural gas bus."  A bus which runs

22

solely on compressed natural gas.

23

"Department."  The Department of Environmental Protection of

24

the Commonwealth.

25

"Large mass transit authority."  A mass transit authority

26

located in this Commonwealth that exceeds 245,000 revenue

27

vehicle hours for two consecutive years.

28

"Mass transit authority."  An operator of regularly scheduled

29

transportation that is available to the general public and is

30

provided according to published schedules along designated

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1

published routes with specified stopping points for the taking

2

on and discharging of passengers. The term does not include

3

exclusive ride taxi services, charter or sightseeing services,

4

nonpublic transportation or school bus or limousine services.

5

"Program."  The Clean Transit Program.

6

§ 3323.  Clean Transit Program.

7

(a)  Establishment.--The department shall establish and

8

administer the Clean Transit Program.

9

(b)  Purpose.--The program is established in order to

10

decrease emissions from mass transit buses by utilizing natural

11

gas as a vehicle fuel.

12

(c)  Transfer of funds.--The State Treasurer shall transfer

13

from the Oil and Gas Lease Fund to the department the sum of

14

$7,500,000 to fund the program.

15

(d)  Use of funds.--The sum of $7,500,000 shall be deposited

16

into a fund to be administered by the department and made

17

available to large mass transit authorities for the purchase of

18

new dedicated compressed natural gas buses. The following shall

19

apply:

20

(1)  The money in the fund is hereby appropriated on a

21

continuing basis to the Department of Environmental

22

Protection for the purposes provided for in this subchapter.

23

(2)  No more than 1.5% of the fund may be used for

24

administration.

25

(3)  The department may set terms applicable to loans in

26

any manner it deems appropriate, subject to the provisions of

27

this subchapter.

28

(e)  Application process.--

29

(1)  A mass transit authority must complete and submit to

30

the department a clean transit loan application.

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1

(2)  Approved applications must obligate the mass transit

2

authority to contract with a private company:

3

(i)   to build exclusively with private funds; and

4

(ii)  to maintain and operate any new compressed

5

natural gas fueling facility necessary to support

6

compressed natural gas buses purchased with funds

7

received under this act.

8

(3)  The term "operate" as used in this subsection shall

9

not include the actual act of fueling buses.

10

(f)  Eligible costs.--

11

(1)  Loan funds received under this subchapter shall be

12

eligible for:

13

(i)  Federally assisted purchases of new dedicated

14

compressed natural gas buses and shall be limited to the

15

total percentage of the State and local match.

16

(ii)  Nonfederally assisted bus purchases and shall

17

be limited to 50% of the total incremental cost of a new

18

compressed natural gas bus.

19

(2)  The incremental cost shall be capped at $60,000 for

20

buses which have a gross vehicle weight rating over 26,000

21

pounds and $35,000 for buses with a gross vehicle weight

22

rating of 26,000 pounds and under.

23

(3)  Buses with a gross vehicle weight rating of less

24

than 16,000 pounds shall be ineligible.

25

(4)  Priority shall be given to those applications which

26

provide for public access to compressed natural gas vehicle

27

fueling dispensers.

28

(g)  Loan program.--The department shall establish a formula

29

and method for awarding of loans under the program consistent

30

with this subchapter.

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1

(h)  Fund repayment.--

2

(1)  Loans disbursed from the fund under subsection (d)

3

shall be repaid to the Oil and Gas Lease Fund within five

4

years from disbursement and before June 30, 2021.

5

(2)  On June 30, 2021, no money shall be deposited into

6

the fund and any remaining money in the fund shall be

7

transferred to the Oil and Gas Lease Fund.

8

(3)  The interest rate for loans provided by the program

9

shall not exceed 2%.

10

(i)  Appeal process.--Applicants that are not awarded grants

11

under this subchapter shall not have the right to a hearing or

12

the issuance of an adjudication under section 4 of the act of

13

July 13, 1988 (P.L.530, No.94), known as the Environmental

14

Hearing Board Act, regarding the department's decision.

15

CHAPTER 35

16

WELLS

17

Subchapter

18

A.  Unconventional Gas Wells

19

B.  (Reserved)

20

SUBCHAPTER A

21

UNCONVENTIONAL GAS WELLS

22

Sec.

23

3501.  Short title.

24

3502.  Definitions.

25

3503.  Unconventional gas well impact fee.

26

3504.  (Reserved).

27

3505.  (Reserved).

28

3506.  Administration.

29

3506.1.  Well information.

30

3506.2.  Payment confirmation.

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1

3506.3.  County authority.

2

3506.4.  Enforcement.

3

3506.5.  Examinations.

4

3507.  Deposit of fees.

5

3508.  Allocation and distribution of fees.

6

3509.  Calculation of payments.

7

3510.  Recordkeeping and State reporting.

8

3511.  Expiration.

9

§ 3501.  Short title.

10

This subchapter shall be known and may be cited as the

11

Unconventional Gas Well Impact Act.

12

§ 3502.  Definitions.

13

The following words and phrases when used in this subchapter

14

shall have the meanings given to them in this section unless the

15

context clearly indicates otherwise:

16

"Association."  A partnership, limited partnership or any

17

other form of unincorporated enterprise owned or conducted by

18

two or more persons.

19

"Coal bed methane."  Gas that can be produced from coal beds,

20

coal seams, mined-out areas or gob wells.

21

"Corporation."  A corporation, joint stock association,

22

limited liability company, business trust or any other

23

incorporated enterprise organized under the laws of the United

24

States, this Commonwealth or any other state, territory or

25

foreign country or dependency.

26

"Department."  The Department of Environmental Protection of

27

the Commonwealth.

28

"Highway mileage."  The number of miles of public roads and

29

streets most recently certified by the Department of

30

Transportation as eligible for distribution of liquid fuels

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1

funds under the act of June 1, 1956 (1955 P.L.1944, No.655),

2

referred to as the Liquid Fuels Tax Municipal Allocation Law.

3

"Municipality."  A city, borough, incorporated town or

4

township.

5

"Natural gas."  A fossil fuel consisting of a mixture of

6

hydrocarbon gases, primarily methane, possibly including ethane,

7

propane, butane, pentane, carbon dioxide, oxygen, nitrogen and

8

hydrogen sulfide and other gas species. The term includes gas

9

from oil fields known as associated gas or casing head gas,

10

natural gas fields known as nonassociated gas, coal beds, shale

11

beds and other formations. The term does not include coal bed

12

methane.

13

"Nonproducing well."  A natural gas well that produces an

14

average of less than 90,000 cubic feet of natural gas per day

15

during a calendar year.

16

"Operator."  A person or its subsidiary, affiliate or holding

17

company that holds a permit or other authorization to engage in

18

the business of severing natural gas for sale, profit or

19

commercial use from an unconventional gas well in this

20

Commonwealth. The term does not include a person who severs

21

natural gas from a storage field.

22

"Person."  A natural person or a corporation, fiduciary,

23

association or other entity, including the Commonwealth and any

24

of its political subdivisions, instrumentalities and

25

authorities. When the term is used in a provision prescribing

26

and imposing a penalty or imposing a fine or both, the term

27

shall include a member of an association and an officer of a

28

corporation.

29

"Rate."  The rate under section 3503 (relating to

30

unconventional gas well impact fee).

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1

"Reporting period."  The fiscal year in which an

2

unconventional gas well impact fee is assessed.

3

"Unconventional gas well."  A bore hole drilled or being

4

drilled for the purpose of or to be used for producing oil or

5

gas from a geologic shale formation existing below the base of

6

the Elk Sandstone or its geologic equivalent stratigraphic

7

interval where oil or gas generally cannot be produced at

8

economic flow rates or in economic volumes except by one of the

9

following:

10

(1)  Vertical or horizontal well bores stimulated by

11

hydraulic fracture treatments.

12

(2)  Using multilateral well bores or other techniques to

13

expose more of the formation of the well bore.

14

"Unconventional gas well impact fee."  A fee that is adopted

15

under section 3503 (relating to unconventional gas well impact

16

fee) on each unconventional gas well producing natural gas

17

within this Commonwealth.

18

§ 3503.  Unconventional gas well impact fee.

19

(a)  Imposition.--By enactment of an ordinance by the

20

governing body of a county, except as set forth in subsection

21

(b), a county may impose an unconventional gas well impact fee

22

on each unconventional gas well that is located on a well pad

23

and produces natural gas within the county.

24

(b)  Exemptions.--The unconventional gas well impact fee

25

shall not be imposed on:

26

(1)  nonproducing wells; or

27

(2)  unconventional gas wells in which all of the natural

28

gas is used directly by a consumer at the site.

29

(c)  Fee for existing unconventional gas wells.--The fee for

30

an unconventional gas well which is in existence on the

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1

effective date of the ordinance under subsection (a) shall be as

2

follows:

3

(1)  For the first year following the effective date of

4

the ordinance, not more than $40,000.

5

(2)  For the second year following the effective date of

6

the ordinance, not more than $30,000.

7

(3)  For the third year following the effective date of

8

the ordinance, not more than $20,000.

9

(4)  For the fourth year through the tenth year following

10

the effective date of the ordinance, not more than $10,000.

11

(d)  Fee for new unconventional gas wells.--The fee for an

12

unconventional gas well drilled after the effective date of the

13

ordinance under subsection (a) shall be as follows:

14

(1)  For the first year, not more than $40,000.

15

(2)  For the second year, not more than $30,000.

16

(3)  For the third year, not more than $20,000.

17

(4)  For the fourth year through the tenth year, not more

18

than $10,000.

19

(e)  Vertical unconventional gas well fee.--

20

(1)  The fee for a vertical unconventional gas well shall

21

be not more than 25% of the fee established in subsections

22

(c) and (d).

23

(2)  For purposes of this subsection, a vertical

24

unconventional gas well shall be defined as an unconventional

25

gas well that utilizes hydraulic fracture treatment through a

26

single vertical well bore.

27

(f)  Prohibition.--

28

(1)  Under no circumstances may an operator make an

29

unconventional gas well impact fee, or any other levy related

30

to the removal or extraction of natural gas, an obligation,

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1

indebtedness or liability of a landowner, leaseholder or

2

other person in possession of real property upon which such

3

removal or extraction occurs.

4

(2)  Any provision of an agreement between an operator

5

and a landowner, leaseholder or other person in possession of

6

real property upon which removal or extraction of natural gas

7

occurs that violates paragraph (1) shall be null and void.

8

(3)  This section shall be applicable to any agreement

9

entered into on or before the effective date of this section.

10

(g)  Retroactivity prohibited.--No fee shall be imposed to

11

cover a period of natural gas production which occurred prior to

12

the effective date of the ordinance.

13

§ 3504.  (Reserved).

14

§ 3505.  (Reserved).

15

§ 3506.  Administration.

16

(a)  Report.--By April 1 of the year after enactment of an

17

ordinance imposing a fee under this chapter and each April 1

18

thereafter, each operator shall submit a report and payment of

19

the fee with the county on a form prescribed by the department

20

for the previous calendar year. The report shall include the

21

following:

22

(1)  The number of unconventional gas wells of an

23

operator in each municipality within the county.

24

(2)  The total number of cubic feet of natural gas

25

severed by the operator for each unconventional gas well

26

identified under paragraph (1) during the previous calendar

27

year.

28

(3)  The date that each unconventional gas well

29

identified under paragraph (1) began or ceased the production

30

of natural gas.

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1

(b)  Fee due date.--The fee imposed under this chapter shall

2

be due by April 1 of the year after enactment of an ordinance

3

imposing the fee and each April 1 thereafter. The fee shall

4

become delinquent if not remitted to the county on the reporting

5

date.

6

(c)  Public availability.--A report under this section shall

7

be a public record under the act of February 14, 2008 (P.L.6,

8

No.3), known as the Right-to-Know Law.

9

§ 3506.1.  Well information.

10

(a)  List.--Upon request, the department shall provide a

11

county with a list of all unconventional gas wells that have

12

received a well permit from the department issued under this

13

chapter. The list shall be updated on a monthly basis. In lieu

14

of providing the list to each county, the department may

15

maintain a list on its publicly accessible Internet website if

16

the list is updated on a monthly basis.

17

(b)  Updates.--An operator shall notify the county within 30

18

days from the date the unconventional gas well began or ceased

19

the production of natural gas.

20

§ 3506.2.  Payment confirmation.

21

Prior to issuing a permit to drill an unconventional gas well

22

in this Commonwealth, the department shall require the permit

23

applicant to certify in its well permit application that the  

24

operator has paid all fees that may be owed under this chapter.

25

The department may deny a well permit application if it finds

26

that the operator falsified this certification.

27

§ 3506.3.  County authority.

28

(a)  Powers.--A county may make all inquiries and

29

determinations necessary to calculate and collect a fee imposed

30

under this chapter, including, if applicable, interest and

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1

penalties.

2

(b)  Notice.--If a county determines that a fee imposed under

3

this chapter has not been paid in full, it may issue a notice of

4

the amount due and demand for payment and shall set forth the

5

basis for the determination.

6

(c)  Address.--Notice of failure to pay the correct fee shall

7

be sent to the operator at its registered address via certified

8

mail.

9

(d)  Time period.--A county may challenge the amount of a fee

10

paid under this chapter within three years after the date the

11

report under this chapter is filed.

12

(e)  Intent.--If no report is filed or an operator files a

13

false or fraudulent return with the intent to evade a fee, an

14

assessment of the amount owed may be made at any time.

15

§ 3506.4.  Enforcement.

16

(a)  Assessment.--A county may assess interest on any

17

delinquent fee imposed under this chapter at the rate prescribed

18

under section 806 of the act of April 9, 1929 (P.L.343, No.176),

19

known as The Fiscal Code.

20

(b)  Penalty.--In addition to the interest under subsection

21

(a), if an operator fails to make timely payment of the fee, a

22

penalty shall be added to the amount of the fee due. The amount

23

of the penalty shall be 5% for each month, or fraction of a

24

month, during which the failure continues, not to exceed 25% in

25

the aggregate.

26

(c)  Timely payment.--If a county determines that an operator

27

has not made a timely payment of the fee, the county shall send

28

a written notice of the amount of the deficiency to the operator

29

within 30 days from the date of determining the deficiency. If

30

the operator has not provided a complete and accurate statement

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1

of the volume of natural gas extracted for the payment period,

2

the county may estimate the volume in its deficiency notice.

3

(d)  Remedies.--The remedies provided under this chapter

4

shall be in addition to any other remedies provided at law or in

5

equity.

6

(e)  Lien.--Fines, fees, interest and penalties shall be

7

collectible in the manner provided by law for the collection of

8

debts. If the  operator liable to pay any amount neglects or

9

refuses to pay the amount after demand, the amount, together

10

with costs that may accrue, shall be a judgment in favor of the

11

county upon the property of the operator, if the judgment has

12

been entered and docketed of record by the prothonotary of the

13

county where the property is situated.

14

§ 3506.5.  Examinations.

15

(a)  Access.--A county which has imposed a fee under this

16

chapter, or its authorized agents or representatives, shall:

17

(1)  Have access to the books, papers and records of any  

18

operator in order to verify the accuracy and completeness of

19

a report filed or fee paid under this chapter.

20

(2)  Require and compel the preservation and production

21

of all books, papers and records for any period deemed proper

22

not to exceed three years from the end of the calendar year

23

to which the records relate.

24

(3)  Examine any employee of an operator concerning the

25

severing of natural gas subject to a fee or any matter

26

relating to the enforcement of this chapter.

27

(b)  Unauthorized disclosure.--

28

(1)  Any information obtained by a county as a result of

29

any report, examination, investigation or hearing under this

30

section shall be confidential and shall be exempt from

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1

disclosure under the provisions of the act of February 14,

2

2008 (P.L.6, No.3), known as the Right-to-Know Law, and shall

3

not be disclosed except in accordance with judicial order or

4

as otherwise provided by law.

5

(2)  An individual unlawfully divulging the information

6

described under this subsection commits a misdemeanor and

7

shall, upon conviction, be sentenced to pay a fine of not

8

more than $1,000 and costs of prosecution or to imprisonment

9

for not more than one year, or both.

10

§ 3507.  Deposit of fees.

11

(a)  Establishment.--Each county imposing a fee under this

12

chapter shall establish an interest-bearing account designed

13

solely for fees.

14

(b)  Deposit.--All fees collected by a county imposing a fee

15

under this chapter shall be deposited into the account described

16

under subsection (a).

17

§ 3508.  Allocation and distribution of fees.

18

(a)  Allocation of fees.--The fees deposited into the account

19

established under section 3507 (relating to deposit of fees)

20

shall be allocated as follows:

21

(1)  Seventy-five percent of the fees shall be allocated

22

to the county and its municipalities in the manner provided

23

under subsection (b).

24

(2)  Twenty-five percent of the fees shall be allocated

25

to the Commonwealth and distributed in the manner provided

26

under subsections (c) and (d).

27

(b)  Distribution of fees to county and municipalities.--The

28

fees allocated to the county and its municipalities under

29

subsection (a)(1) shall be distributed as follows:

30

(1)  Thirty-six percent of the fees shall be retained by

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1

the county where the producing unconventional gas wells are

2

located.

3

(2)  Thirty-seven percent of the fees shall be

4

distributed to the municipalities where producing

5

unconventional gas wells are located. The amount for each

6

municipality shall be determined using a formula that divides

7

the number of producing unconventional gas wells in the

8

municipality by the number of producing unconventional gas 

9

wells in the county and multiplies the resulting percentage

10

by the amount available for distribution under this

11

subparagraph.

12

(3)  Twenty-seven percent of the fees shall be

13

distributed to all municipalities in the county where

14

producing unconventional gas wells are located as follows:

15

(i)  Fifty percent shall be distributed to all

16

municipalities using a formula that divides the

17

population of the municipality within the county by the

18

total population of the county and multiplies the

19

resulting percentage by the amount available for

20

distribution to the county under this subparagraph.

21

(ii)  Fifty percent shall be distributed to each

22

municipality using a formula that divides the highway

23

mileage of the municipality within the county by the

24

total highway mileage of the county and multiplies the

25

resulting percentage by the amount available for

26

distribution to the county under this subparagraph.

27

(c)  Distribution of fees to Commonwealth.--The fees

28

allocated to the Commonwealth under subsection (a)(2) shall be

29

remitted to the Commonwealth for deposit into a restricted

30

account in the General Fund of the Commonwealth dedicated solely

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1

for fees. The funds are hereby appropriated and shall be

2

distributed as follows and as set forth under subsection (e):

3

(1)  Seventy percent to the Department of Transportation

4

for road, bridge, rail and other transportation

5

infrastructure improvements to address impacts from

6

unconventional natural gas development.

7

(2)  Ten and one-half percent to the department, not to

8

exceed $10,000,000 annually, for the regulation of

9

unconventional gas wells and the plugging of abandoned and

10

orphan gas wells within the Commonwealth.

11

(3)  Seven and one-half percent to the Public Utility

12

Commission, not to exceed $2,000,000 annually, for the

13

enhancement, inspection and enforcement of pipeline safety

14

standards as required by law related to the safe transport of

15

gas and hazardous liquids.

16

(4)  Four and one-half percent to the Pennsylvania

17

Emergency Management Agency, not to exceed $2,000,000

18

annually, for emergency response planning, training and

19

coordination associated with unconventional natural gas

20

production activity within the Commonwealth.

21

(5)  Three and three-quarters percent to the Department

22

of Health, not to exceed $2,000,000 annually, for collecting

23

and disseminating information, preparing and conducting

24

health care provider outreach and education and investigating

25

health-related complaints and other uses associated with

26

unconventional natural gas production activity within this

27

Commonwealth.

28

(6)  Three and three-quarters percent to the Office of

29

State Fire Commissioner, not to exceed $2,000,000 annually,

30

for the development, delivery and sustainment of training

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1

programs for first responders and acquisition of specialized

2

equipment necessary for emergency response.

3

(d)  Additional distribution of fees to Department of

4

Transportation.--In addition to the distribution of fees to the

5

Department of Transportation under subsection (c)(1), any funds

6

remaining in the restricted account after distribution of fees

7

under subsection (c)(2), (3), (4), (5) and (6) are hereby

8

appropriated shall be distributed to the Department of

9

Transportation.

10

(e)  Continuing nature.--

11

(1)  The distributions under subsections (c) and (d)

12

shall be executive authorizations.

13

(2)  The appropriations under subsections (c) and (d)

14

shall be continuing appropriations. Those appropriations

15

shall not lapse at the end of any fiscal year.

16

(f)  Timing of distribution.--A county shall distribute the

17

fees authorized under this chapter within 45 days after the date

18

the fees are received.

19

(g)  Use of funds by counties and municipalities.--A county

20

or municipality receiving fees under this section shall make use

21

of the fees received only for the following purposes associated

22

with unconventional natural gas production within the county or

23

municipality:

24

(1)  Construction, reconstruction, maintenance and repair

25

of roadways, bridges and public infrastructure.

26

(2)  Water, storm water and sewer systems, including

27

construction, reconstruction, maintenance and repair.

28

(3)  Emergency preparedness and response, including

29

police, fire, hazardous material response, 911, equipment

30

acquisition, responder recruitment and other services.

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1

(4)  Preservation and reclamation of surface and

2

subsurface waters and water supplies, including drinking

3

water monitoring and testing.

4

(5)  Records management, geographic information systems

5

and information technology.

6

(6)  Projects that increase the availability of

7

affordable housing, either for sale or rental, to residents

8

whose annual income is less than the area median income.

9

(7)  Delivery of social services, including domestic

10

relations, drug and alcohol treatment, job training and

11

counseling.

12

(8)  Assistance to the county conservation district for

13

inspection, oversight and enforcement of unconventional

14

natural gas development.

15

(9)  County or municipal planning.

16

(10)  Local tax reduction.

17

(11)  Career and technical centers for training of

18

workers in the oil and gas industry.

19

§ 3509.  Calculation of payments.

20

(a)  General rule.--The county treasurer of a county that

21

imposes and collects the unconventional gas well impact fee

22

shall certify the number of all unconventional gas wells located

23

within each municipality of the county based upon the

24

appropriate reports provided by the department.

25

(b)  Payments to municipalities.--The county treasurer of a

26

county that imposes and collects the unconventional gas well

27

impact fee shall pay to municipalities the amounts required

28

under this subchapter.

29

§ 3510.  Recordkeeping and State reporting.

30

(a)  General rule.--Commencing in calendar year  2013 and

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1

each year thereafter, before December 1, each county that

2

imposes and collects the unconventional gas well impact fee

3

authorized by this subchapter shall prepare and deliver a report

4

to the Secretary of the Senate and the Chief Clerk of the House

5

of Representatives detailing the expenditure of the funds

6

collected under this subchapter.

7

(b)  Audit.--The Department of Community and Economic

8

Development may audit a county's and municipality's expenditure

9

of the funds.

10

(c)  Availability of records.--A county and municipality that

11

receives the funds shall make its financial records and other

12

documents relating to its expenditure of the funds available to

13

the department.

14

(d)  Time.--Reports shall be prepared no later than June 30

15

of the year following the initial receipt of any fees

16

distributed under this section and each June 30 thereafter.

17

(e)  Location.--Reports shall be published on the county or

18

municipality's publicly accessible Internet website. If a

19

municipality does not maintain a publicly accessible Internet

20

website, the municipality shall provide its report to the

21

county, which shall publish the municipality's report on the

22

county's publicly accessible Internet website.

23

§ 3511.  Expiration.

24

(a)  Notice.--The Secretary of the Commonwealth shall, upon

25

the effective date of an act authorizing a severance tax on each

26

unconventional gas well producing gas in this Commonwealth,

27

submit for publication in the Pennsylvania Bulletin notice of

28

that fact.

29

(b)  Date.--This chapter shall expire on the date of the

30

publication of the notice under subsection (a).

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1

SUBCHAPTER B

2

(RESERVED)

3

Section 2.  Title 58 is amended by adding parts to read:

4

PART I

5

PRELIMINARY PROVISIONS

6

(RESERVED)

7

PART II

8

(RESERVED)

9

PART III

10

UTILIZATION

11

Chapter

12

31.  (Reserved)

13

32.  Development

14

CHAPTER 31

15

(RESERVED)

16

CHAPTER 32

17

DEVELOPMENT

18

Subchapter

19

A.  Preliminary Provisions

20

B.  General Requirements

21

C.  Underground Gas Storage

22

D.  Eminent Domain

23

E.  Enforcement and Remedies

24

F.  Miscellaneous Provisions

25

SUBCHAPTER A

26

PRELIMINARY PROVISIONS

27

Sec.

28

3201.  Scope of chapter.

29

3202.  Declaration of purpose.

30

3203.  Definitions.

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1

§ 3201.  Scope of chapter.

2

This chapter relates to oil and gas.

3

§ 3202.  Declaration of purpose.

4

The purposes of this chapter are to:

5

(1)  Permit optimal development of oil and gas resources

6

of this Commonwealth consistent with protection of the

7

health, safety, environment and property of Pennsylvania

8

citizens.

9

(2)  Protect the safety of personnel and facilities

10

employed in coal mining or exploration, development, storage

11

and production of natural gas or oil.

12

(3)  Protect the safety and property rights of persons

13

residing in areas where mining, exploration, development,

14

storage or production occurs.

15

(4)  Protect the natural resources, environmental rights

16

and values secured by the Constitution of Pennsylvania.

17

§ 3203.  Definitions.

18

The following words and phrases when used in this chapter

19

shall have the meanings given to them in this section unless the

20

context clearly indicates otherwise:

21

"Abandoned well."  Any of the following:

22

(1)  A well:

23

(i)  that has not been used to produce, extract or

24

inject any gas, petroleum or other liquid within the

25

preceding 12 months;

26

(ii)  for which equipment necessary for production,

27

extraction or injection has been removed; or

28

(iii)  considered dry and not equipped for production

29

within 60 days after drilling, redrilling or deepening.

30

(2)  The term does not include wells granted inactive

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1

status.

2

"Alteration."  An operation which changes the physical

3

characteristics of a well bore, including stimulation or

4

removing, repairing or changing the casing. For the purpose of

5

this chapter only, the term does not include:

6

(1)  Repairing or replacing of the casing if the activity

7

does not affect the depth or diameter of the well bore, the

8

use or purpose of the well does not change and the activity

9

complies with regulations promulgated under this chapter,

10

except that this exclusion does not apply:

11

(i)  to production casings in coal areas when the

12

production casings are also the coal protection casings;

13

or

14

(ii)  when the method of repairing or replacing the

15

casing would affect the coal protection casing.

16

(2)  Stimulation of a well.

17

"Board."  The Oil and Gas Technical Advisory Board.

18

"Bridge."  An obstruction placed in a well at any depth.

19

"Building."  An occupied structure with walls and roof within

20

which persons live or customarily work.

21

"Casing."  A string or strings of pipe commonly placed in

22

wells drilled for natural gas or petroleum.

23

"Cement" or "cement grout."  Any of the following:

24

(1)  Hydraulic cement properly mixed with water only.

25

(2)  A mixture of materials adequate for bonding or

26

sealing of well bores as approved by regulations promulgated

27

under this chapter.

28

"Coal mine."  Any of the following:

29

(1)  Operations in a coal seam, including excavated

30

portions, abandoned portions and places actually being

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1

worked.

2

(2)  Underground workings and shafts, slopes, tunnels and

3

other ways and openings, including those which are in the

4

course of being sunk or driven, along with all roads and

5

facilities connected with them below the surface.

6

"Coal operator."  A person that operates or proposes to

7

operate a coal mine as an owner or lessee.

8

"Completion of a well."  The date after treatment, if any,

9

that the well is properly equipped for production of oil or gas,

10

or, if the well is dry, the date that the well is abandoned.

11

"Department."  The Department of Environmental Protection of

12

the Commonwealth.

13

"Drilling."  The drilling or redrilling of a well or the

14

deepening of an existing well.

15

"Environmental law."  Any of the following:

16

(1)  A Federal statute pertaining to oil and gas

17

operations, public health, safety, natural resources or the

18

environment.

19

(2)  A Federal regulation, rule, administrative order or

20

agency interpretation or guidance pertaining to oil and gas

21

operations, public health, safety, natural resources or the

22

environment.

23

(3)  A Federal judicial decision pertaining to oil and

24

gas operations, public health, safety, natural resources or

25

the environment.

26

(4)  A Commonwealth statute pertaining to oil and gas

27

operations, public health, safety, natural resources or the

28

environment. The term includes any of the following:

29

(i)  The act of June 22, 1937 (P.L.1987, No.394),

30

known as The Clean Streams Law.

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1

(ii)  The act of January 8, 1960 (1959 P.L.2119,

2

No.787), known as the Air Pollution Control Act.

3

(iii)  The act of July 7, 1961 (P.L.518, No.268),

4

known as the Delaware River Basin Compact.

5

(iv)  The act of July 25, 1961 (P.L.825, No.359),

6

known as the Oil and Gas Conservation Law.

7

(v)  The act of July 17, 1968 (P.L.368, No.181),

8

referred to as the Susquehanna River Basin Compact Law.

9

(vi)  The act of October 4, 1978 (P.L.864, No.167),

10

known as the Storm Water Management Act.

11

(vii)  The act of November 26, 1978 (P.L.1375,

12

No.325), known as the Dam Safety and Encroachments Act.

13

(viii)  The act of July 7, 1980 (P.L.380, No.97),

14

known as the Solid Waste Management Act.

15

(ix)  The act of June 23, 1982 (P.L.597, No.170),

16

known as the Wild Resource Conservation Act.

17

(x)  The act of May 1, 1984 (P.L.206, No.43), known

18

as the Pennsylvania Safe Drinking Water Act.

19

(xi)  The act of July 10, 1984 (P.L.688, No.147),

20

known as the Radiation Protection Act.

21

(xii)  The act of October 5, 1984 (P.L.734, No.159),

22

known as the Worker and Community Right-to-Know Act.

23

(xiii)  The act of December 18, 1984 (P.L.1069,

24

No.214), known as the Coal and Gas Resource Coordination

25

Act.

26

(xiv)  The act of December 19, 1984 (P.L.1093,

27

No.219), known as the Noncoal Surface Mining Conservation

28

and Reclamation Act.

29

(xv)  The act of October 18, 1988 (P.L.756, No.108),

30

known as the Hazardous Sites Cleanup Act.

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1

(xvi)  The act of July 6, 1989 (P.L.169, No.32),

2

known as the Storage Tank and Spill Prevention Act.

3

(xvii)  The act of December 7, 1990 (P.L.639,

4

No.165), known as the Hazardous Material Emergency

5

Planning and Response Act.

6

(xviii)  The act of May 19, 1995 (P.L.4, No.2), known

7

as the Land Recycling and Environmental Remediation

8

Standards Act.

9

(xix)  The act of July 4, 2008 (P.L.526, No.43),

10

known as the Great Lakes-St. Lawrence River Basin Water

11

Resources Compact.

12

(xx)  The provisions of 27 Pa.C.S. Ch. 31 (relating

13

to water resources planning)

14

(xxi)  The provisions of 27 Pa.C.S. Ch. 41 (relating

15

to environmental laboratory accreditation).

16

(xxii)  The provisions of 27 Pa.C.S. Ch. 62 (relating

17

to waste transportation safety).

18

(xxiii)  The provisions of 30 Pa.C.S. (relating to

19

fish).

20

(xxiv)  The provisions of 34 Pa.C.S. (relating to

21

game).

22

(5)  A regulation, rule, administrative order or agency

23

interpretation or guidance of a Commonwealth agency

24

pertaining to oil and gas operations, public health, safety,

25

natural resources or the environment.

26

(6)  A decision of a court of this Commonwealth

27

pertaining to oil and gas operations, public health, safety,

28

natural resources or the environment.

29

"Fresh groundwater."  Water in that portion of the generally

30

recognized hydrologic cycle which occupies the pore spaces and

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1

fractures of saturated subsurface materials.

2

"Gas."  Any of the following:

3

(1)  A fluid, combustible or noncombustible, which is

4

produced in a natural state from the earth and maintains a

5

gaseous or rarified state at standard temperature of 60

6

degrees Fahrenheit and pressure 14.7 PSIA.

7

(2)  Any manufactured gas, byproduct gas or mixture of

8

gases or natural gas liquids.

9

"Inactivate."  To shut off the vertical movement of gas in a

10

gas storage well by means of a temporary plug or other suitable

11

device or by injecting bentonitic mud or other equally nonporous

12

material into the well.

13

"Linear foot."  A unit or measurement in a straight line on a

14

horizontal plane.

15

"Oil."  Hydrocarbons in liquid form at standard temperature

16

of 60 degrees Fahrenheit and pressure 14.7 PSIA, also referred

17

to as petroleum.

18

"Oil and gas operations."  Any of the following:

19

(1)  Exploration for oil and gas. This paragraph includes

20

the conduct of seismic operations.

21

(2)  Siting and locating of oil and gas wells.

22

(3)  Drilling, stimulation and completion of oil and gas

23

wells.

24

(4)  Generation, processing, treatment, storage,

25

transportation and disposal of fresh water, wastewater,

26

wastes, chemicals and other materials directly associated

27

with drilling, stimulation and completion of oil and gas

28

wells.

29

(5)  Production, gathering and collection of oil or gas.

30

(6)  Compression, transportation, processing, measurement

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1

and storage of oil or gas.

2

(7)  Reclamation activities.

3

(8)  Construction and use of drilling rigs and pipelines.

4

This paragraph includes equipment directly related to the

5

activities set forth in this paragraph.

6

(9)  Construction and use of access roads, well sites,

7

drilling pads, impoundments, compression stations, processing

8

stations, meter stations and storage tanks. This paragraph

9

includes buildings, facilities or structures, which are

10

directly related to the activities set forth in this

11

paragraph. This paragraph does not include ancillary support,

12

supply and service facilities, the location of which is not

13

dependent on the location of specific wells or pipelines.

14

"Operating coal mine."  Any of the following:

15

(1)  An underground coal mine which is producing coal or

16

has been in production of coal at any time during the 12

17

months immediately preceding the date its status is put in

18

question, including contiguous worked-out or abandoned coal

19

mines to which it is connected underground.

20

(2)  An underground coal mine to be established or

21

reestablished under paragraph (1).

22

"Operating well."  A well that is not plugged and abandoned.

23

"Orphan well."  A well abandoned prior to April 18, 1985,

24

that has not been affected or operated by the present owner or

25

operator and from which the present owner, operator or lessee

26

has received no economic benefit other than as a landowner or

27

recipient of a royalty interest from the well.

28

"Outside coal boundaries."  When used in conjunction with the

29

term "operating coal mine," the boundaries of the coal acreage

30

assigned to the coal mine under an underground mine permit

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1

issued by the Department of Environmental Protection.

2

"Owner."  A person who owns, manages, leases, controls or

3

possesses a well or coal property. The term does not apply to

4

orphan wells, except where the Department of Environmental

5

Protection determines a prior owner or operator benefited from

6

the well as provided in section 3220(a) (relating to plugging

7

requirements).

8

"Person."  An individual, association, partnership,

9

corporation, political subdivision or agency of the Federal

10

Government, State government or other legal entity.

11

"Petroleum."  Hydrocarbons in liquid form at standard

12

temperature of 60 degrees Fahrenheit and pressure 14.7 PSIA,

13

also referred to as oil.

14

"Pillar."  A solid block of coal surrounded by either active

15

mine workings or a mined-out area.

16

"Plat."  A map, drawing or print accurately drawn to scale

17

showing the proposed or existing location of a well or wells.

18

"Reservoir protective area."  The area surrounding a storage

19

reservoir boundary, but within 2,000 linear feet of the storage

20

reservoir boundary, unless an alternate area has been designated

21

by the Department of Environmental Protection, which is deemed

22

reasonably necessary to afford protection to the reservoir,

23

under a conference held in accordance with section 3251

24

(relating to conferences).

25

"Retreat mining."  Removal of coal pillars, ribs and stumps

26

remaining after development mining has been completed in that

27

section of a coal mine.

28

"Secretary."  The Secretary of Environmental Protection of

29

the Commonwealth.

30

"Storage operator."  A person who operates or proposes to

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1

operate a storage reservoir as an owner or lessee.

2

"Storage reservoir."  That portion of a subsurface geological

3

stratum into which gas is or may be injected for storage

4

purposes or to test suitability of the stratum for storage.

5

"Unconventional well."  A bore hole drilled or being drilled

6

for the purpose of or to be used for producing oil or gas from a

7

geological shale formation existing below the base of the Elk

8

Sandstone or its geologic equivalent stratigraphic interval

9

where oil or gas generally cannot be produced at economic flow

10

rates or in economic volumes except by one of the following:

11

(1)  Vertical or horizontal well bores stimulated by

12

hydraulic fracture treatments.

13

(2)  Using multilateral well bores or other techniques to

14

expose more of the formation of the well bore.

15

"Water management plan."  A plan associated with drilling or

16

completing a well in an unconventional formation that

17

demonstrates that the withdrawal and use of water sources

18

protects those sources as required by law and protects public

19

health, safety and welfare.

20

"Water purveyor."  Any of the following:

21

(1)  The owner or operator of a public water system as

22

defined in section 3 of the act of May 1, 1984 (P.L.206,

23

No.43), known as the Pennsylvania Safe Drinking Water Act.

24

(2)  Any person subject to the act of June 24, 1939

25

(P.L.842, No.365), referred to as the Water Rights Law.

26

"Water source."

27

(1)  Any of the following:

28

(i)  Waters of this Commonwealth.

29

(ii)  A source of water supply used by a water

30

purveyor.

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1

(iii)  Mine pools and discharges.

2

(iv)  Any other waters that are used for drilling or

3

completing a well in an unconventional formation.

4

(2)  The term does not include flowback or production

5

waters or other fluids:

6

(i)  which are used for drilling or completing a well

7

in an unconventional formation; and

8

(ii)  which do not discharge into waters of this

9

Commonwealth.

10

"Well."  A bore hole drilled or being drilled for the purpose

11

of, or to be used for, producing, extracting or injecting gas,

12

petroleum or another liquid related to oil or gas production or

13

storage, including brine disposal, but excluding a bore hole

14

drilled to produce potable water. The term does not include a

15

bore hole drilled or being drilled for the purpose of, or to be

16

used for:

17

(1)  Systems of monitoring, producing or extracting gas

18

from solid waste disposal facilities, if the bore hole is a

19

well subject to the act of July 7, 1980 (P.L.380, No.97),

20

known as the Solid Waste Management Act, which does not

21

penetrate a workable coal seam.

22

(2)  Degasifying coal seams, if the bore hole is:

23

(i)  used to vent methane to the outside atmosphere

24

from an operating coal mine; regulated as part of the

25

mining permit under the act of June 22, 1937 (P.L.1987,

26

No.394), known as The Clean Streams Law, and the act of

27

May 31, 1945 (P.L.1198, No.418), known as the Surface

28

Mining Conservation and Reclamation Act; and drilled by

29

the operator of the operating coal mine for the purpose

30

of increased safety; or

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1

(ii)  used to vent methane to the outside atmosphere

2

under a federally funded or State-funded abandoned mine

3

reclamation project.

4

"Well control emergency."  An incident during drilling,

5

operation, workover or completion that, as determined by the

6

department, poses a threat to public health, welfare or safety,

7

including a loss of circulation fluids, kick, casing failure,

8

blowout, fire and explosion.

9

"Well control specialist."  Any person trained to respond to

10

a well control emergency with a current certification from a

11

well control course accredited by the International Association

12

of Drilling Contractors or other organization approved by the

13

department.

14

"Well operator" or "operator."  Any of the following:

15

(1)  The person designated as operator or well operator

16

on the permit application or well registration.

17

(2)  If a permit or well registration was not issued, a

18

person who locates, drills, operates, alters or plugs a well

19

or reconditions a well with the purpose of production from

20

the well.

21

(3)  If a well is used in connection with underground

22

storage of gas, a storage operator.

23

"Wetland."  Areas inundated or saturated by surface or

24

groundwater at a frequency and duration sufficient to support,

25

and which normally support, a prevalence of vegetation typically

26

adapted for life in saturated soil conditions, including swamps,

27

marshes, bogs and similar areas.

28

"Workable coal seams."  A coal seam which:

29

(1)  is actually being mined in the area in question

30

under this chapter by underground methods; or

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1

(2)  in the judgment of the Department of Environmental

2

Protection, can reasonably be expected to be mined by

3

underground methods.

4

SUBCHAPTER B

5

GENERAL REQUIREMENTS

6

Sec.

7

3211.  Well permits.

8

3212.  Permit objections.

9

3212.1.  Comments by municipalities.

10

3213.  Well registration and identification.

11

3214.  Inactive status.

12

3215.  Well location restrictions.

13

3215.1.  General restrictions.

14

3216.  Well site restoration.

15

3217.  Protection of fresh groundwater and casing requirements.

16

3218.  Protection of water supplies.

17

3219.  Use of safety devices.

18

3219.1.  Well control emergency response.

19

3220.  Plugging requirements.

20

3221.  Alternative methods.

21

3222.  Well reporting requirements.

22

3223.  Notification and effect of well transfer.

23

3224.  Coal operator responsibilities.

24

3225.  Bonding.

25

3226.  Oil and Gas Technical Advisory Board.

26

3227.  AIR CONTAINMENT EMISSIONS.

27

§ 3211.  Well permits.

28

(a)  Permit required.--No person shall drill or alter a well,

29

except for alterations which satisfy the requirements of

30

subsection (j), without having first obtained a well permit

- 164 -

 


1

under subsections (b), (c), (d) and (e), or operate an abandoned

2

or orphan well unless in compliance with subsection (l). A copy

3

of the permit shall be kept at the well site during drilling or

4

alteration of the well. No person shall be required to obtain a

5

permit to redrill a nonproducing well if the redrilling:

6

(1)  has been evaluated and approved as part of an order

7

from the department authorizing cleaning out and plugging or

8

replugging a nonproducing well under section 13(c) of the act

9

of December 18, 1984 (P.L.1069, No.214), known as the Coal

10

and Gas Resource Coordination Act; and

11

(2)  is incidental to a plugging or replugging operation

12

and the well is plugged within 15 days of redrilling.

13

(b)  Plat.--

14

(1)  The permit application shall be accompanied by a

15

plat prepared by a competent engineer or a competent

16

surveyor, on forms furnished by the department, showing the

17

political subdivision and county in which the tract of land

18

upon which the well to be drilled is located; a list of

19

municipalities adjacent to the well site; the name of the

20

surface landowner of record and lessor; the name of all

21

surface landowners and water purveyors whose water supplies

22

are within 1,000 feet of the proposed well location or, in

23

the case of an unconventional well, within 2,500 feet of the

24

proposed well location; the name of the owner of record or

25

operator of all known underlying workable coal seams; the

26

acreage in the tract to be drilled; the proposed location of

27

the well determined by survey, courses and distances of the

28

location from two or more permanent identifiable points or

29

landmarks on the tract boundary corners; the proposed angle

30

and direction of the well if the well is to be deviated

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1

substantially from a vertical course; the number or other

2

identification to be given the well; the workable coal seams

3

underlying the tract of land upon which the well is to be

4

drilled or altered and which shall be cased off under section

5

3217 (relating to protection of fresh groundwater and casing

6

requirements); and any other information needed by the

7

department to administer this chapter.

8

(2)  no later than 30 days prior to submitting the

9

application required in subsection (a), the applicant shall

10

forward by certified mail a copy of the plat to the surface

11

landowner; the municipality in which the tract of land upon

12

which the well to be drilled is located; the municipalities

13

adjacent to the well; all surface landowners and water

14

purveyors, whose water supplies are within 1,000 feet of the

15

proposed well location or, in the case of an unconventional

16

well, within 2,500 feet of the proposed well location; the

17

owner and lessee of any coal seams; and each coal operator

18

required to be identified on the well permit application.

19

(b.1)  Notification.--The applicant shall submit proof of

20

notification with the well permit application. Notification of

21

surface owners shall be performed by sending notice to those

22

persons to whom the tax notices for the surface property are

23

sent, as indicated in the assessment books in the county in

24

which the property is located. Notification of surface

25

landowners or water purveyors whose water supplies are within

26

1,000 feet of the proposed well location shall be on forms, and

27

in a manner prescribed by the department, sufficient to identify

28

the rights afforded those persons under section 3218 (relating

29

to protection of water supplies) and to advise them of the

30

advantages of taking their own predrilling or prealteration

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1

survey.

2

(b.2)  Approval.--If the applicant submits to the department

3

written approval of the proposed well location by the surface

4

landowner and the coal operator, lessee or owner of any coal

5

underlying the proposed well location and no objections are

6

raised by the department within 15 days of filing, or if no

7

approval has been submitted and no objections are made to the

8

proposed well location within 15 days from receipt of notice by

9

the department, the surface landowner or any coal operator,

10

lessee or owner, the written approval shall be filed and become

11

a permanent record of the well location, subject to inspection

12

at any time by any interested person.

13

(c)  Applicants.--If the applicant for a well permit is a

14

corporation, partnership or person that is not a resident of

15

this Commonwealth, the applicant shall designate the name and

16

address of an agent for the operator who shall be the attorney-

17

in-fact for the operator and who shall be a resident of this

18

Commonwealth upon whom notices, orders or other communications

19

issued under this chapter may be served and upon whom process

20

may be served. Each well operator required to designate an agent

21

under this section shall, within five days after termination of

22

the designation, notify the department of the termination and

23

designate a new agent.

24

(d)  Permit fee.--Each application for a well permit shall be

25

accompanied by a permit fee, established by regulation of the

26

department, which bears a reasonable relationship to the cost of

27

administering this chapter.

28

(e)  Issuance of permit.--The department shall issue a permit

29

within 45 days of submission of a permit application unless the

30

department denies the permit application for one or more of the

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1

reasons set forth in subsection (e.1), except that the

2

department shall have the right to extend the period for 15 days

3

for cause shown upon notification to the applicant of the

4

reasons for the extension. The department may impose permit

5

terms and conditions necessary to assure compliance with this

6

chapter or other laws administered by the department.

7

(e.1)  Denial of permit.--The department may deny a permit

8

for any of the following reasons:

9

(1)  The well site for which a permit is requested is in

10

violation of any of this chapter or issuance of the permit

11

would result in a violation of this chapter or other

12

applicable law.

13

(2)  The permit application is incomplete.

14

(3)  Unresolved objections to the well location by coal

15

mine owner or operator remain.

16

(4)  The requirements of section 3225 (relating to

17

bonding) have not been met.

18

(5)  The department finds that the applicant, or any

19

parent or subsidiary corporation of the applicant, is in

20

continuing violation of this subchapter, any other statute

21

administered by the department, any rule or regulation

22

promulgated under this subchapter or a statute administered

23

by the department or any plan approval, permit or order of

24

the department, unless the violation is being corrected to

25

the satisfaction of the department. The right of the

26

department to deny a permit under this paragraph shall not

27

take effect until the department has taken a final action on

28

the violations and:

29

(i)  the applicant has not appealed the final

30

action in accordance with the act of July 13, 1988

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1

(P.L.530, No.94), known as the Environmental Hearing

2

Board Act; or

3

(ii)  if an appeal has been filed, no supersedeas

4

has been issued.

5

(f)  Drilling.--

6

(1)  Upon issuance of a permit, the well operator may

7

drill at the location shown on the plat after providing the

8

department, the surface landowner and the local political

9

subdivision in which the well is to be located 24 hours'

10

notice of the date that drilling will commence.

11

(2)  The unconventional well operator shall provide the

12

department 24 hours' notice prior to cementing all casing

13

strings, conducting pressure tests of the production casing,

14

stimulation and abandoning or plugging an unconventional

15

well.

16

(3)  In noncoal areas where more than one well is to be

17

drilled as part of the same development project, only the

18

first well of the project need be located by survey.

19

Remaining wells of the project shall be shown on the plat in

20

a manner prescribed by regulation.

21

(4)  Prior to drilling each additional project well, the

22

well operator shall notify the department and provide

23

reasonable notice of the date on which drilling will

24

commence.

25

(5)  Whenever, before or during the drilling of a well

26

not within the boundaries of an operating coal mine, the well

27

operator encounters conditions of a nature which renders

28

drilling of the bore hole or a portion thereof impossible, or

29

more hazardous than usual, the well operator, upon verbal

30

notice to the department, may immediately plug all or part of

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1

the bore hole, if drilling has occurred, and commence a new

2

bore hole not more than 50 feet from the old bore hole if the

3

location of the new bore hole does not violate section 3215

4

(relating to well location restrictions) and, in the case of

5

a well subject to act of July 25, 1961 (P.L.825, No.359),

6

known as the Oil and Gas Conservation Law, if the new

7

location complies with existing laws, regulations and spacing

8

orders and the new bore hole is at least 330 feet from the

9

nearest lease boundary.

10

(6)  Within ten days of commencement of the new bore

11

hole, the well operator shall file with the department a

12

written notice of intention to plug, a well record, a

13

completion report, a plugging certificate for the original

14

bore hole and an amended plat for the new bore hole.

15

(7)  The well operator shall forward a copy of the

16

amended plat to the surface landowner identified on the well

17

permit application within ten days of commencement of the new

18

well bore.

19

(g)  Posting.--The well permit number and operator's name,

20

address and telephone number shall be conspicuously posted at

21

the drilling site prior to commencement of drilling.

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

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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. Nothing in this subsection shall

7

be construed to rescind the provisions pertaining to drilling

8

permits contained in Chapter 34.

9

(j)  Exceptions.--The Environmental Quality Board may

10

establish by regulation certain categories of alterations of

11

permitted or registered wells for which permitting requirements

12

of this section shall not apply. A well operator or owner who

13

proposes to conduct the alteration activity shall first obtain a

14

permit or registration modification from the department. The

15

Environmental Quality Board shall promulgate regulations as to

16

the requirements for modifications.

17

(k)  No transfer permitted.--No permit issued under this

18

section or registration issued under section 3213 (relating to

19

well registration and identification) may be transferred without

20

prior approval of the department. A request for approval of a

21

transfer shall be on the forms, and in the manner, prescribed by

22

the department. The department shall approve or deny a transfer

23

request within 45 days of receipt of a complete and accurate

24

application. The department may deny a request only for reasons

25

set forth in subsection (e.1)(4) and (5). Approval of a transfer

26

request shall permanently transfer responsibility to plug the

27

well under section 3220 to the recipient of the transferred

28

permit or registration.

29

(l)  Regulations.--The Environmental Quality Board may

30

establish by regulation requirements for the permitting and

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1

operation of abandoned or orphan wells. A person who proposes to

2

conduct abandoned or orphan well operations shall first obtain a

3

permit to operate an abandoned or orphan well.

4

(m)  Water management.--The following shall apply to water

5

management:

6

(1)  No person may withdraw or use water from water

7

sources within this Commonwealth for the drilling or

8

hydraulic fracture stimulation of any natural gas well

9

completed in an unconventional gas formation, whether on or

10

off of the land where the gas well is located, except in

11

accordance with a water management plan approved by the

12

department.

13

(2)  The department shall review and approve water

14

management plans based upon a determination that the proposed

15

withdrawal, when operated in accordance with the proposed

16

withdrawal operating conditions set forth in the plan,

17

including conditions relating to quantity, withdrawal rate

18

and timing and any passby flow conditions, will:

19

(i)  not adversely affect the quantity or quality of

20

water available to other users of the same water sources;

21

(ii)  protect and maintain the designated and

22

existing uses of water sources; and

23

(iii)  not cause adverse impact to water quality in

24

the watershed considered as a whole.

25

(3)  (i)  The criteria under paragraph (2) shall be

26

presumed to be achieved if the proposed water withdrawal

27

has been approved by and is operated in accordance with

28

conditions established by the Susquehanna River Basin

29

Commission, the Delaware River Basin Commission or the

30

Great Lakes Commission, as applicable.

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1

(ii)  Notwithstanding subparagraph (i), the

2

department may establish additional requirements as

3

necessary to comply with the laws of this Commonwealth.

4

(4)  In addition to the requirements under paragraphs

5

(1), (2) and (3), compliance with a department-approved water

6

management plan shall be a condition of any permit issued

7

under this chapter for the drilling or hydraulic fracture

8

stimulation of any natural gas well completed in an

9

unconventional formation and shall be deemed to satisfy the

10

laws of this Commonwealth.

11

§ 3212.  Permit objections.

12

(a)  General rule.--If a well referred to in section 3211(b)

13

(relating to well permits) will be located on a tract whose

14

surface is owned by a person other than the well operator, the

15

surface landowner affected shall be notified of the intent to

16

drill and may file objections, in accordance with section 3251

17

(relating to conferences), based on the assertion that the well

18

location violates section 3215 (relating to well location

19

restrictions) or that information in the application is untrue

20

in any material respect, within 15 days of the receipt by the

21

surface owner of the plat under section 3211(b). Receipt of

22

notice by the surface owner shall be presumed to have occurred

23

15 days from the date of the certified mailing when the well

24

operator submits a copy of the certified mail receipt sent to

25

the surface owner and an affidavit certifying that the address

26

of the surface owner to which notice was sent is the same as the

27

address listed in the assessment books in the county where the

28

property is located. If no objection is filed or none is raised

29

by the department within 15 days after receipt of the plat by

30

the surface landowner, or, if written approval by the surface

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1

landowner is filed with the department and no objection is

2

raised by the department within 15 days of filing, the

3

department shall proceed to issue or deny the permit.

4

(b)  Special circumstances.--If a well referred to in section

5

3211(b) will penetrate within the outside coal boundaries of an

6

operating coal mine or a coal mine already projected and platted

7

but not yet being operated, or within 1,000 linear feet beyond

8

those boundaries, and, in the opinion of the coal owner or

9

operator, the well or a pillar of coal about the well will

10

unduly interfere with or endanger the mine, the coal owner or

11

operator affected may file objections under section 3251 to the

12

proposed location within 15 days of the receipt by the coal

13

operator of the plat under section 3211(b). If possible, an

14

alternative location at which the proposed well could be drilled

15

to overcome the objections shall be indicated. If no objection

16

to the proposed location is filed or if none is raised by the

17

department within 15 days after receipt of the plat by the coal

18

operator or owner, or, if written approval by the coal operator

19

or owner of the location is filed with the department and no

20

objection is raised by the department within 15 days of filing,

21

the department shall proceed to issue or deny the permit.

22

(c)  Procedure upon objection.--If an objection is filed by a

23

coal operator or owner or made by the department, the department

24

shall fix a time and place for a conference under section 3251

25

not more than ten days from the date of service of the objection

26

to allow the parties to consider the objection and attempt to

27

agree on a location. If they fail to agree, the department, by

28

an appropriate order, shall determine a location on the tract of

29

land as near to the original location as possible where, in the

30

judgment of the department, the well can be safely drilled

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1

without unduly interfering with or endangering the mine as

2

defined in subsection (b). The new location agreed upon by the

3

parties or determined by the department shall be indicated on

4

the plat on file with the department and become a permanent

5

record upon which the department shall proceed to issue or deny

6

the permit.

7

(d)  Survey.--Within 120 days after commencement of drilling

8

operations, the coal operator shall accurately locate the well

9

by a closed survey on the same datum as the mine workings or

10

coal boundaries are mapped, file the results of the survey with

11

the department and forward a copy by certified mail to the well

12

operator.

13

§ 3212.1.  Comments by municipalities.

14

(a)  General rule.--The municipality where the tract of land

15

upon which the unconventional well to be drilled is located may

16

submit written comments to the department describing local

17

conditions or circumstances which the municipality has

18

determined should be considered by the department in rendering

19

its determination on the unconventional well permit. A comment

20

under this subsection must be submitted to the department within

21

15 days of the receipt of the plat under section 3211(b)

22

(relating to well permits). The municipality shall

23

simultaneously forward a copy of its comments to the permit

24

applicant and all other parties entitled to a copy of the plat

25

under section 3211(b), who may submit a written response. A

26

written response must be submitted to the department within ten

27

days of receipt of the comments of the municipality.

28

(b)  Consideration by department.--Comments and responses

29

under subsection (a) may be considered by the department in

30

accordance with section 3215(d) (relating to well location

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1

restrictions).

2

(c)  No extension of time period.--The process outlined in

3

this section shall not extend the time period for the issuance

4

or denial of a permit beyond the time period set forth in this

5

chapter.

6

§ 3213.  Well registration and identification.

7

(a)  General rule.--On or before July 5, 1996, each person

8

who owned or operated a well in existence prior to April 18,

9

1985, which has not been registered with the department and for

10

which no drilling permit has been issued by the department,

11

shall register the well with the department. A well owner or

12

operator who registers under this subsection and a well owner or

13

operator who has previously registered a well under this chapter

14

shall, on or before July 5, 1996, identify any abandoned well on

15

property which the well owner or operator owns or leases and

16

request approval from the department for classification of the

17

well as an orphan well. Information regarding wells to be

18

registered or identified shall be provided on a form, or in a

19

manner prescribed by the department, and shall include:

20

(1)  The name and address of the well operator and, if

21

the well operator is a corporation, partnership or person

22

nonresident of this Commonwealth, the name and address of an

23

agent for the operator upon whom notices, orders, process or

24

other communications issued under this chapter may be served.

25

(2)  The well name and the location of the well indicated

26

by a point on a 7 1/2 minute United States Geological Survey

27

topographic map or any other location description sufficient

28

to enable the department to locate the well on the ground.

29

(3)  The approximate date of drilling and completing the

30

well, its approximate depth and producing horizons, well

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1

construction information and, if available, driller's logs.

2

(4)  An indemnity bond, an alternative fee in lieu of

3

bonding or other evidence of financial security submitted by

4

the well operator and deemed appropriate by the department

5

and satisfying the requirements of section 3225 (relating to

6

bonding). No bond, alternative fee or other evidence of

7

financial security shall be required for identification of an

8

orphan well. For wells drilled prior to January 30, 1956,

9

which have not been bonded, the well operator shall have five

10

years to comply with the provisions of this paragraph.

11

(5)  A registration fee of $15 per well or blanket

12

registration fee of $250 for multiple well registration

13

applications submitted simultaneously. The registration fee

14

shall be waived until July 5, 1996, and no fee shall be

15

charged for identification of an orphan well.

16

(a.1)  Orphan wells.--After July 5, 1996, a well owner, well

17

operator or other person discovering an abandoned well on

18

property purchased or leased by the well owner, well operator or

19

other person shall identify it to the department within 60 days

20

of discovery and advise the department that he is seeking

21

classification of the well as an orphan well. No fee shall be

22

required for identification.

23

(b)  Extension.--The department may extend the one-year time

24

period under subsection (a) for good cause shown. The extension

25

may not exceed a period ending two years from April 18, 1985.

26

The department may adopt and promulgate guidelines designed to

27

ensure a fair implementation of this section, recognizing the

28

practical difficulties of locating unpermitted wells and

29

complying with the reporting requirements of this chapter.

30

(c)  Installation of registration number.--The well operator

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1

shall install the registration number issued by the department

2

in a legible, conspicuous and permanent manner on the well

3

within 60 days of issuance.

4

(d)  Definition.--For purposes of subsection (a)(4) and (5),

5

the term "owner" does not include an owner or possessor of

6

surface real property, on which an abandoned well is located,

7

who did not participate or incur costs in, and had no right of

8

control over, the drilling or extraction operation of the

9

abandoned well.

10

§ 3214.  Inactive status.

11

(a)  General rule.--Upon application, the department shall

12

grant inactive status for a period of five years for a permitted

13

or registered well, if the following requirements are met:

14

(1)  the condition of the well is sufficient to prevent

15

damage to the producing zone or contamination of fresh water

16

or other natural resources or surface leakage of any

17

substance;

18

(2)  the condition of the well is sufficient to stop the

19

vertical flow of fluids or gas within the well bore and is

20

adequate to protect freshwater aquifers, unless the

21

department determines the well poses a threat to the health

22

and safety of persons or property or to the environment;

23

(3)  the operator anticipates construction of a pipeline

24

or future use of the well for primary or enhanced recovery,

25

gas storage, approved disposal or other appropriate uses

26

related to oil and gas well production; and

27

(4)  the applicant satisfies the bonding requirements of

28

sections 3213 (relating to well registration and

29

identification) and 3225 (relating to bonding), except that

30

the department may require additional financial security for

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1

a well on which an alternative fee is being paid in lieu of

2

bonding under section 3225(d).

3

(b)  Monitoring.--The owner or operator of a well granted

4

inactive status shall be responsible for monitoring the

5

mechanical integrity of the well to ensure that the requirements

6

of subsection (a)(1) and (2) are met and shall report the same

7

on an annual basis to the department in the manner and form

8

prescribed by departmental regulations.

9

(c)  (Reserved).

10

(d)  Return to active status.--A well granted inactive status

11

under subsection (a) shall be plugged in accordance with section

12

3220 (relating to plugging requirements) or returned to active

13

status within five years of the date inactive status was

14

granted, unless the owner or operator applies for an extension

15

of inactive status which may be granted on a year-to-year basis

16

if the department determines that the owner or operator has

17

demonstrated ability to continue meeting the requirements of

18

this section and the owner or operator certifies that the well

19

will be of future use within a reasonable period of time. An

20

owner or operator who has been granted inactive status for a

21

well which is returned to active status prior to expiration of

22

the five-year period set forth in subsection (a) shall notify

23

the department that the well has been returned to active status

24

and shall not be permitted to apply for another automatic five-

25

year period of inactive status for the well. The owner or

26

operator may make application to return the well to inactive

27

status, and the application may be approved on a year-to-year

28

basis if the department determines that the owner or operator

29

has demonstrated an ability to continue meeting the requirements

30

of this section and the owner or operator certifies that the

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1

well will be of future use within a reasonable period of time.

2

The department shall approve or deny an application to extend a

3

period of inactive status or to return a well to inactive status

4

within 60 days of receipt of the application, and the

5

application shall not be unreasonably denied. If the department

6

has not completed its review of the application within 60 days,

7

the inactive status shall continue until the department has made

8

a determination on the request. If the department denies an

9

application to extend the period of inactive status or to return

10

a well to inactive status, a well owner or operator aggrieved by

11

the denial shall have the right to appeal the denial to the

12

Environmental Hearing Board within 30 days of receipt of the

13

denial. Upon cause shown by a well owner or operator, the board

14

may grant a supersedeas under section 4 of the act of July 13,

15

1988 (P.L.530, No.94), known as the Environmental Hearing Board

16

Act, so that the well in question may retain inactive status

17

during the period of the appeal.

18

(e)  Revocation of inactive status.--The department may

19

revoke inactive status and order immediate plugging of a well if

20

the well is in violation of this chapter or rules or regulations

21

promulgated under this chapter or if the owner or operator

22

demonstrates inability to perform obligations under this chapter

23

or becomes financially insolvent, or upon receipt by the

24

department of notice of bankruptcy proceedings by the permittee.

25

§ 3215.  Well location restrictions.

26

(a)  General rule.--Wells may not be drilled within 200 feet,

27

or, in the case of an unconventional gas well, 500 feet measured

28

horizontally from the vertical well bore to a building or water

29

well, existing when the copy of the plat is mailed as required

30

by section 3211(b) (relating to well permits) without written

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1

consent of the owner of the building or water well.

2

Unconventional gas wells may not be drilled within 1,000 feet

3

measured horizontally from the vertical well bore to any

4

existing water well, surface water intake, reservoir or other

5

water supply extraction point used by a water purveyor without

6

the written consent of the water purveyor. If consent is not

7

obtained and the distance restriction would deprive the owner of

8

the oil and gas rights of the right to produce or share in the

9

oil or gas underlying the surface tract, the well operator shall

10

be granted a variance from the distance restriction upon

11

submission of a plan identifying the additional measures,

12

facilities or practices as prescribed by the department to be

13

employed during well site construction, drilling and operations.

14

The variance, if granted, shall include additional terms and

15

conditions required by the department to ensure safety and

16

protection of affected persons and property, including

17

insurance, bonding, indemnification and technical requirements.

18

(b)  Limitation.--

19

(1)  No well may be drilled within 100 feet, or, in the

20

case of an unconventional well, 300 feet measured

21

horizontally from any solid blue lined stream as identified

22

on the most current 7 1/2 minute topographic quadrangle map

23

of the United States Geological Survey.

24

(2)  The edge of the disturbed area associated with any

25

unconventional well must maintain a 100-foot setback from the

26

edge of any solid blue lined stream as identified on the most

27

current 7 1/2 minute topographic quadrangle map of the United

28

States Geological Survey.

29

(3)  No unconventional well may be drilled within 300

30

feet of any wetlands greater than one acre in size, and the

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1

edge of the disturbed area must maintain a 100-foot setback

2

from the boundary of the wetlands.

3

(4)  The department shall waive the distance restrictions

4

upon submission of a plan identifying additional measures,

5

facilities or practices to be employed during well site

6

construction, drilling and operations. The waiver shall impose

7

permit conditions necessary to protect the waters of this

8

Commonwealth.

9

(c)  Impact.--On making a determination on a well permit, the

10

department shall consider impact of the proposed well on public

11

resources, including, but not limited to:

12

(1)  Publicly owned parks, forests, game lands and

13

wildlife areas.

14

(2)  National or State scenic rivers.

15

(3)  National natural landmarks.

16

(4)  Habitats of rare and endangered flora and fauna and

17

other critical communities.

18

(5)  Historical and archaeological sites listed on the

19

Federal or State list of historic places.

20

(d)  Consideration of municipality comments.--The department

21

may consider the comments submitted under section 3212.1

22

(relating to comments by municipalities) in making a

23

determination on a well permit. Notwithstanding any other law,

24

no municipality shall have a right of appeal or other form of

25

review from the department's decision.

26

(e)  Regulation criteria.--The Environmental Quality Board

27

shall develop by regulation criteria:

28

(1)  For the department to utilize for conditioning a

29

well permit based on its impact to the public resources

30

identified under subsection (c) and for ensuring optimal

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1

development of oil and gas resources and respecting property

2

rights of oil and gas owners.

3

(2)  For appeal to the Environmental Hearing Board of a

4

permit containing conditions imposed by the department. The

5

regulations shall also provide that the department has the

6

burden of proving by clear and convincing evidence that the

7

conditions were necessary to protect against a probable

8

harmful impact of the public resources.

9

(3)  For processes and procedures for the adjudication of

10

compensation claims of affected owners, if any conditions or

11

restrictions imposed by application of the criteria developed

12

under paragraph (1) deprive the owner of the oil and gas

13

rights, in part or in whole, of the right to produce or share

14

in the oil as gas underlying the surface tract or tracts

15

affected by imposition of any condition or conditions.

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.

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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 to ensure the protection of the

8

waters of this Commonwealth must be utilized for the storage

9

and handling of all water, chemicals, fuels, hazardous

10

materials or solid waste on a well site located in a

11

floodplain. The department may request that the well site

12

operator submit a plan for the storage and handling of

13

materials for approval by the department and may impose

14

conditions or amend permits to include permit conditions as

15

are necessary to protect the environment, public health and

16

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)  Existing wells and pads.--Subsections (a) and (b) shall

30

not apply to any of the following:

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1

(1)  A well for which a valid permit exists as of the

2

effective date of this subsection.

3

(2)  A well permit application submitted after the

4

effective date of this subsection for a well that will be

5

located on a wellpad upon which a well has been drilled under

6

a valid permit that was approved before the effective date of

7

this subsection.

8

§ 3215.1.  General restrictions.

9

(a)  Security fencing.--Security fencing shall be installed

10

at natural gas compressed stations, dehydration and processing

11

facilities and other central processing facilities to secure all

12

permanent buildings, facilities, structures and equipment and to

13

protect the public. Warning signs shall be placed on the

14

security fencing providing notice of potential dangers and

15

providing contact information in case of an emergency.

16

(b)  Temporary operations.--The following shall apply to

17

temporary operations, such as well drilling and completion

18

operations:

19

(1)  Except as provided under paragraph (2), temporary

20

security fencing shall be installed at the oil or gas well

21

site to secure all buildings, facilities, structures and

22

equipment at the site and to protect the public. Warning

23

signs shall be placed at the well site providing notice of

24

potential dangers and providing contact information in case

25

of an emergency.

26

(2)  In lieu of security fencing under paragraph (1), a

27

well owner or operator may establish 24-hour security

28

staffing at the site and install a security gate at the

29

entrance of the access road to prevent unauthorized access.

30

(c)  Lighting.--Lighting at the well site and at other

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1

buildings, facilities and structures directly related to oil and

2

gas operations, either temporary or permanent, shall be directed

3

downward and inward toward the activity, to the extent

4

practicable, so as to minimize the glare on public roads and

5

nearby buildings within 100 feet of the well site, building,

6

facility or structure.

7

(d)  Noise regulations.--Well owners and operators shall

8

comply with all applicable noise regulations promulgated by the

9

Federal Energy Regulatory Commission, except that the noise

10

level from permanent oil and gas operations may not exceed 60

11

dBA at the nearest property line of the tract of land upon which

12

oil and gas operations are being conducted. Any compressor

13

situate within 2,500 feet of a dwelling shall be in a soundproof

14

building such that the noise level immediately outside such

15

building does not exceed 60 dBA.

16

(e)  Atmospheric discharge.--Well owners and operators shall

17

comply with each applicable environmental law governing the

18

discharge of gases, vapors and odors into the atmosphere. The

19

discharge of gases, vapors and odors during oil and gas

20

operations may not unreasonably interfere with the comfortable

21

enjoyment of life or property.

22

(f)  Applicability.--This section shall only apply to

23

unconventional natural gas wells.

24

§ 3216.  Well site restoration.

25

(a)  General rule.--Each oil or gas well owner or operator

26

shall restore the land surface within the area disturbed in

27

siting, drilling, completing and producing the well.

28

(b)  Plan.--During and after earthmoving or soil disturbing

29

activities, including, but not limited to, activities related to

30

siting, drilling, completing, producing and plugging the well,

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1

erosion and sedimentation control measures shall be implemented

2

in accordance with an erosion and sedimentation control plan

3

prepared in accordance with the act of June 22, 1937 (P.L.1987,

4

No.394), known as The Clean Streams Law.

5

(c)  Pits, drilling supplies and equipment.--Within nine

6

months after completion of drilling of a well, the owner or

7

operator shall restore the well site, remove or fill all pits

8

used to contain produced fluids or industrial wastes and remove

9

all drilling supplies and equipment not needed for production.

10

Drilling supplies and equipment not needed for production may be

11

stored on the well site if express written consent of the

12

surface landowner is obtained.

13

(d)  Items related to production or storage.--Within nine

14

months after plugging a well, the owner or operator shall remove

15

all production or storage facilities, supplies and equipment and

16

restore the well site.

17

(e)  Clean Streams Law.--Restoration activities required by

18

this chapter or in regulations promulgated under this chapter

19

shall also comply with all applicable provisions of The Clean

20

Streams Law.

21

(f)  Violation of chapter.--Failure to restore the well site

22

as required in this chapter or regulations promulgated under

23

this chapter constitutes a violation of this chapter.

24

(g)  Extension.--

25

(1)  The restoration period may be extended by the

26

department for an additional period of time not to exceed two

27

years upon demonstration by the well owner or operator that:

28

(i)  the extension will result in less earth

29

disturbance, increased water reuse or more efficient

30

development of the resources; or

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1

(ii)  site restoration cannot be achieved due to

2

adverse weather conditions or a lack of essential fuel,

3

equipment or labor.

4

(2)  The demonstration under paragraph (1) shall do all

5

of the following:

6

(i)  Include a site restoration plan that shall

7

provide for:

8

(A)  the timely removal or fill of all pits used

9

to contain produced fluids or industrial wastes;

10

(B)  the removal of all drilling supplies and

11

equipment not needed for production;

12

(C)  the stabilization of the well site that

13

shall include interim postconstruction storm water

14

management best management practices; or

15

(D)  other measures to be employed to minimize

16

accelerated erosion and sedimentation in accordance

17

with The Clean Streams Law.

18

(ii)  Provide for returning the portions of the site

19

not occupied by production facilities or equipment to

20

approximate original contours and making them capable of

21

supporting the uses that existed prior to drilling the

22

well.

23

(3)  The department may condition an extension under this

24

subsection as is necessary in accordance with The Clean

25

Streams Law.

26

§ 3217.  Protection of fresh groundwater and casing

27

requirements.

28

(a)  General rule.--To aid in protection of fresh

29

groundwater, well operators shall control and dispose of brines

30

produced from the drilling, alteration or operation of an oil or

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1

gas well in a manner consistent with the act of June 22, 1937

2

(P.L.1987, No.394), known as The Clean Streams Law, or any rule

3

or regulation promulgated under The Clean Streams Law.

4

(b)  Casing.--To prevent migration of gas or fluids into

5

sources of fresh groundwater and pollution or diminution of

6

fresh groundwater, a string or strings of casing shall be run

7

and permanently cemented in each well drilled through the fresh

8

water-bearing strata to a depth and in a manner prescribed by

9

regulation by the department.

10

(c)  Procedure when coal has been removed.--If a well is

11

drilled at a location where coal has been removed from one or

12

more coal seams, the well shall be drilled and cased to prevent

13

migration of gas or fluids into the seam from which coal has

14

been removed in a manner prescribed by regulation of the

15

department. The department and the coal operator, owner or

16

lessee shall be given at least 72 hours' notice prior to

17

commencement of work protecting the mine.

18

(d)  Procedure when coal has not been removed.--If a well is

19

drilled at a location where the coal seam has not been removed,

20

the well shall be drilled to a depth and of a size sufficient to

21

permit placement of casing, packers in and vents on the hole at

22

the points and in the manner prescribed by regulation to exclude

23

gas or fluids from the coal seam, except gas or fluids found

24

naturally in the seam itself, and to enable monitoring the

25

integrity of the production casing.

26

§ 3218.  Protection of water supplies.

27

(a)  General rule.--In addition to the requirements of

28

subsection (c.1), a well operator who affects a public or

29

private water supply by pollution or diminution shall restore or

30

replace the affected supply with an alternate source of water

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1

adequate in quantity or quality for the purposes served by the

2

supply. The department shall ensure the restored or replaced

3

water supply meets the applicable water quality standards

4

consistent with the Safe Drinking Water Act (Public Law 93-523,

5

21 U.S.C. § 349 and 42 U.S.C. §§ 201 and 300f et seq.), the act

6

of May 1, 1984 (P.L.206, No.43), known as the Pennsylvania Safe

7

Drinking Water Act, and predrilling or alteration water quality

8

standards as determined by the department. The Environmental

9

Quality Board shall promulgate regulations necessary to meet the

10

requirements of this subsection.

11

(b)  Pollution or diminution of water supply.--A landowner or

12

water purveyor suffering pollution or diminution of a water

13

supply as a result of the drilling, alteration or operation of

14

an oil or gas well may so notify the department and request that

15

an investigation be conducted. Within ten days of notification,

16

the department shall investigate the claim and make a

17

determination within 45 days following notification. If the

18

department finds that the pollution or diminution was caused by

19

drilling, alteration or operation activities or if it presumes

20

the well operator responsible for pollution under subsection

21

(c), the department shall issue orders to the well operator

22

necessary to assure compliance with subsection (a), including

23

orders requiring temporary replacement of a water supply where

24

it is determined that pollution or diminution may be of limited

25

duration.

26

(b.1)  Survey.--Upon a written request by any landowner

27

residing within 5,500 feet but farther than 2,500 feet of a

28

proposed gas well using hydraulic fracturing, the well permit

29

applicant shall conduct a predrilling or prealteration survey,

30

using a facility or laboratory certified by the department, and

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1

send a copy of the survey by certified mail to the requester. A

2

predrilling or prealteration survey shall provide at a minimum

3

the testing results for chemicals or chemical compounds known to

4

be commonly used for hydraulic fracturing, including all major

5

cations and anions, arsenic, benzene, toluene, ethylbenzene,

6

xylenes, manganese, dissolved methane, total dissolved solids,

7

chlorides, nutrients and radionuclides.

8

(b.2)  Telephone number.--The department shall establish a

9

single Statewide toll-free telephone number that persons may use

10

to report cases of water contamination. The Statewide toll-free

11

telephone number shall be provided in a conspicuous manner in

12

the notification required under section 201(b) and on the

13

department's Internet website.

14

(b.3)  Responses.--The department shall develop appropriate

15

administrative responses to calls received on the Statewide

16

toll-free number for water contamination.

17

(b.4)  Website.--The department shall establish a website

18

that lists the confirmed cases of water supply contamination

19

that result from hydraulic fracturing.

20

(c)  Presumption.--Unless rebutted by a defense established

21

in subsection (d), it shall be presumed that a well operator is

22

responsible for pollution of a water supply if:

23

(1)  except as set forth in paragraph (2):

24

(i)  the water supply is within 1,000 feet of an oil

25

or gas well; and

26

(ii)  the pollution occurred within six months after

27

completion of drilling or alteration of the oil or gas

28

well; or

29

(2)  in the case of an unconventional well:

30

(i)  the water supply is within 2,500 feet of the

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1

unconventional well; and

2

(ii)  the pollution occurred within 12 months of the

3

later of completion, drilling or alteration of the

4

unconventional well.

5

(d)  Defenses.--To rebut the presumption established under

6

subsection (c), a well operator must affirmatively prove any of

7

the following:

8

(1)  except as set forth in paragraph (2):

9

(i)  the pollution existed prior to the drilling or

10

alteration activity as determined by a predrilling or

11

prealteration survey;

12

(ii)  the landowner or water purveyor refused to

13

allow the operator access to conduct a predrilling or

14

prealteration survey;

15

(iii)  the water supply is not within 1,000 feet of

16

the well;

17

(iv)  the pollution occurred more than six months

18

after completion of drilling or alteration activities;

19

and

20

(v)  the pollution occurred as the result of a cause

21

other than the drilling or alteration activity; or

22

(2)  in the case of an unconventional well:

23

(i)  the pollution existed prior to the drilling or

24

alteration activity as determined by a predrilling or

25

prealteration survey;

26

(ii)  the landowner or water purveyor refused to

27

allow the operator access to conduct a predrilling or

28

prealteration survey;

29

(iii)  the water supply is not within 2,500 feet of

30

the well; and

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1

(iv)  the pollution occurred more than 12 months

2

after completion of drilling or alteration activities.

3

(e)  Independent certified laboratory.--An operator electing

4

to preserve a defense under subsection (d)(1) or (2) shall

5

retain an independent certified laboratory to conduct a

6

predrilling or prealteration survey of the water supply. A copy

7

of survey results shall be submitted to the department and the

8

landowner or water purveyor in the manner prescribed by the

9

department.

10

(e.1)  Notice.--An operator must provide written notice to

11

the landowner or water purveyor indicating that the presumption

12

established under subsection (c) may be void if the landowner or

13

water purveyor refused to allow the operator access to conduct a

14

predrilling or prealteration survey.

15

(f)  Other remedies preserved.--Nothing in this section shall

16

prevent a landowner or water purveyor claiming pollution or

17

diminution of a water supply from seeking any other remedy at

18

law or in equity.

19

§ 3219.  Use of safety devices.

20

Any person engaged in drilling an oil or gas well shall equip

21

it with casings of sufficient strength, and other safety devices

22

as are necessary, in the manner prescribed by regulation of the

23

department, and shall use every effort and endeavor effectively

24

to prevent blowouts, explosions and fires.

25

§ 3219.1.  Well control emergency response.

26

(a)  Contracts.--The department may enter into contracts with

27

well control specialists in order to provide adequate emergency

28

response services in the event of a well control emergency.

29

(b)  Civil immunity.--Except as set forth in subsection (c),

30

a well control specialist with which the department has entered

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1

into a contract under subsection (a) shall be immune from civil

2

liability for actions taken in good faith to carry out its

3

contractual obligations.

4

(c)  Nonapplicability.--Subsection (b) shall not apply to

5

damage arising from any of the following:

6

(1)  Breach of the contract under subsection (a).

7

(2)  An intentional tort.

8

(3)  Gross negligence.

9

§ 3220.  Plugging requirements.

10

(a)  General rule.--Upon abandoning a well, the owner or

11

operator shall plug it in the manner prescribed by regulation of

12

the department to stop vertical flow of fluids or gas within the

13

well bore, unless the department has granted inactive status for

14

the well or it has been approved by the department as an orphan

15

well. If the department determines that a prior owner or

16

operator received economic benefit, other than economic benefit

17

derived only as a landowner or from a royalty interest, after

18

April 18, 1979, from an orphan well or an unregistered well, the

19

owner or operator shall be responsible for plugging the well. In

20

the case of a gas well penetrating a workable coal seam which

21

was drilled prior to January 30, 1956, or which was permitted

22

after that date but not plugged in accordance with this chapter,

23

if the owner or operator or a coal operator or an agent proposes

24

to plug the well to allow mining through it, the gas well shall

25

be cleaned to a depth of at least 200 feet below the coal seam

26

through which mining is proposed and, unless impracticable, to a

27

point 200 feet below the deepest mineable coal seam. The gas

28

well shall be plugged from that depth in accordance with section

29

13 of the act of December 18, 1984 (P.L.1069, No.214), known as

30

the Coal and Gas Resource Coordination Act, and the regulations

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1

of the department.

2

(b)  Areas underlain by coal.--Prior to the plugging and

3

abandonment of a well in an area underlain by a workable coal

4

seam, the well operator or owner shall notify the department and

5

the coal operator, lessee or owner and submit a plat, on a form

6

to be furnished by the department, showing the location of the

7

well and fixing the date and time plugging will commence, which

8

shall be not less than three working days, nor more than 30

9

days, after the notice is received, to permit representatives of

10

the persons notified to be present at the plugging. Notice and

11

the right to be present may be waived by the department and the

12

coal operator, lessee or owner, but waiver by the coal operator,

13

lessee or owner shall be in writing and a copy shall be attached

14

to the notice of abandonment filed with the department under

15

this section. Whether or not representatives attend, if the well

16

operator has fully complied with this section, the well operator

17

may proceed, at the time fixed, to plug the well in the manner

18

prescribed by regulation of the department. When plugging has

19

been completed, a certificate shall be prepared and signed, on a

20

form to be furnished by the department, by two experienced and

21

qualified people who participated in the work setting forth the

22

time and manner in which the well was plugged. One copy of the

23

certificate shall be mailed to each coal operator, lessee or

24

owner to whom notice was given by certified mail and another

25

shall be mailed to the department.

26

(c)  Abandoned wells.--Prior to abandonment of a well, except

27

an uncompleted bore hole plugged immediately upon suspension of

28

drilling in an area not underlain by a workable coal seam, the

29

well operator shall notify the department of the intention to

30

plug and abandon the well and submit a plat, on a form to be

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1

furnished by the department, showing the location of the well

2

and fixing the date and time at which plugging will commence,

3

which shall be not less than three working days, nor more than

4

30 days, after the notice is received, to permit a department

5

representative to be present at the plugging. The notice or

6

waiting period may be verbally waived by the department. In

7

noncoal areas where more than one well has been drilled as part

8

of the same development project and the wells are now to be

9

plugged, the department shall be given three working days'

10

notice prior to plugging the first well of the project, subject

11

to waiver of notice described in subsection (b). In the plugging

12

of subsequent wells, no additional notice shall be required if

13

plugging on the project is continuous. If plugging of subsequent

14

wells is delayed for any reason, notice shall be given to the

15

department of continuation of the project. Whether or not a

16

representative attends, if the well operator has fully complied

17

with this section, the well operator may proceed, at the time

18

fixed, to plug the well in the manner prescribed by regulation

19

of the department. When plugging has been completed, a

20

certificate shall be prepared, on a form to be furnished by the

21

department, by two experienced and qualified people who

22

participated in the work setting forth the time and manner in

23

which the well was plugged. A copy of the certificate shall be

24

mailed to the department.

25

(d)  Wells abandoned upon completion of drilling.--If a well

26

is to be abandoned immediately after completion of drilling, the

27

well operator shall give at least 24 hours' notice by telephone,

28

confirmed by certified mail, to the department and to the coal

29

operator, lessee or owner, if any, fixing the date and time when

30

plugging will commence. Notice and the right to be present may

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1

be waived by the department and the coal operator, lessee or

2

owner, if any. Whether or not representatives of the department

3

or coal operator, lessee or owner, if any, attend, if the well

4

operator has fully complied with the requirements of this

5

section, the well operator may proceed, at the time fixed, to

6

plug the well in the manner provided by regulation of the

7

department. The well operator shall prepare the certificate of

8

plugging and mail copies of the same as provided in subsection

9

(b).

10

(e)  Orphan wells.--If a well is an orphan well or abandoned

11

without plugging, or if a well is in operation but not

12

registered under section 3213 (relating to well registration and

13

identification), the department may enter upon the well site and

14

plug the well and to sell equipment, casing and pipe at the site

15

which may have been used in production of the well in order to

16

recover the costs of plugging. The department shall make an

17

effort to determine ownership of a well which is in operation

18

but has not been registered and provide written notice to the

19

owner of pending action under this subsection. If the department

20

cannot determine ownership within 30 days, it may proceed under

21

this subsection. Costs of plugging shall have priority over all

22

liens on equipment, casing and pipe, and the sale shall be free

23

and clear of those liens to the extent that the cost of plugging

24

exceeds the sale price. If the amount obtained for casing and

25

pipe salvaged at the site is inadequate to pay for plugging, the

26

owner or operator of the abandoned or unregistered well shall be

27

liable for the additional costs.

28

(f)  Definition.--For purposes of this section, the term

29

"owner" does not include the owner or possessor of surface real

30

property, on which an abandoned well is located, who did not

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1

participate or incur costs in and had no right of control over

2

the drilling or extraction operation of the abandoned well.

3

§ 3221.  Alternative methods.

4

A well operator may request permission to use a method or

5

material other than those required by this chapter for casing,

6

plugging or equipping a well in an application to the department

7

which describes the proposed alternative in reasonable detail

8

and indicates the manner in which it will accomplish the goals

9

of this chapter. Notice of filing of the application shall be

10

given by the well operator by certified mail to any affected

11

coal operators, who may, within 15 days after the notice, file

12

objections to the proposed alternative method or material. If no

13

timely objections are filed or raised by the department, the

14

department shall determine whether to allow use of the proposed

15

alternative 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)  Marcellus Shale formation 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

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1

amount of production on the most well-specific basis available.

2

The initial report under this subsection shall be filed on or

3

before August 15, 2010, and shall include production data from

4

the preceding calendar year and specify the status of each well.

5

In subsequent reports, only changes in status must be reported.

6

Subsequent semiannual reports shall be filed with the department

7

on or before February 15 and August 15 of each year and shall

8

include 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 of cessation of

23

drilling of each well.

24

(3)  A completion report containing any additional

25

required information shall be filed within 30 days after

26

completing the well and shall be kept on file by the

27

department.

28

(4)  (i)  The completion report shall include a

29

stimulation record. At a minimum, the stimulation record

30

shall contain pump rates, pressures, total volume used to

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1

stimulate the well, a list of hazardous and other

2

chemicals used to stimulate the well, volume of water

3

used, identification of water sources used under a

4

department-approved water management plan and depth at

5

which potable aquifers are encountered during drilling.

6

The well operator may designate specific portions of the

7

stimulation record as containing a trade secret or

8

confidential proprietary information. The department

9

shall prevent disclosure of designated confidential

10

information to the extent permitted under the act of

11

February 14, 2008 (P.L.6, No.3), known as the Right-to-

12

Know Law.

13

(ii)  The completion report shall identify:

14

(A)  whether methane was encountered in other

15

than a target formation; and

16

(B)  the country of origin and manufacture of the

17

steel products used in the construction of the well.

18

(iii)  The completion report shall be kept on file by

19

the department and posted on the department's publicly

20

accessible Internet website.

21

(5)  Upon request of the department, the well operator

22

shall, within 90 days of completion or recompletion of

23

drilling, submit a copy of any electrical, radioactive or

24

other standard industry logs which have been run. No

25

information under this paragraph shall be required unless the

26

well operator has compiled the information in the ordinary

27

course of business.

28

(6)  Upon request by the department within one year, the

29

well operator shall file a copy of drill stem test charts,

30

formation water analysis, porosity, permeability or fluid

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1

saturation measurements, core analysis and lithologic log or

2

sample description or other similar data as compiled. No

3

information under this paragraph shall be required unless the

4

well operator had it compiled in the ordinary course of

5

business, and interpretation of data under this paragraph is

6

not required to be filed.

7

(c)  Drill cuttings and core samples.--Upon notification by

8

the department prior to commencement of drilling, the well

9

operator shall collect any additional data specified by the

10

department, including representative drill cuttings and samples

11

from cores taken and any other geological information that the

12

operator reasonably can compile. Interpretation of the data is

13

not required to be filed.

14

(d)  Retention and filing of data.--Data required under

15

subsection (b) and drill cuttings required under subsection (c)

16

shall be retained by the well operator and filed with the

17

department no more than three years after completion of the

18

well. Upon request, the department shall extend the deadline up

19

to five years from the date of completion of the well. The

20

department shall be entitled to utilize information collected

21

under this subsection in enforcement proceedings, in making

22

designations or determinations under section 1927-A of The

23

Administrative Code of 1929 and in aggregate form for

24

statistical purposes.

25

§ 3223.  Notification and effect of well transfer.

26

The owner or operator of a well shall notify the department

27

in writing within 30 days, in a form directed by regulation, of

28

sale, assignment, transfer, conveyance or exchange by or to the

29

owner of the well. A transfer shall not relieve the well owner

30

or operator of an obligation accrued under this chapter, nor

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1

shall it relieve the owner or operator of an obligation to plug

2

the well until the requirements of section 3225 (relating to

3

bonding) have been met, at which time the transferring owner or

4

operator shall be relieved from all obligations under this

5

chapter, including the obligation to plug the well.

6

§ 3224.  Coal operator responsibilities.

7

(a)  General rule.--At any time prior to removing coal or

8

other underground materials from, or extending the workings in,

9

a coal mine within 500 feet of an oil or gas well of which the

10

coal operator has knowledge, or within 500 feet of an approved

11

well location of which the coal operator has knowledge, the coal

12

operator, by certified mail, shall forward to or file with the

13

well operator and the department a copy of the relevant part of

14

all maps and plans which it is presently required by law to

15

prepare and file with the department, showing the pillar which

16

the coal operator proposes to leave in place around each oil or

17

gas well in the projected workings. Thereafter, the coal

18

operator may proceed with mining operations in the manner

19

projected on the maps and plans, but the operator may not remove

20

coal or cut a passageway within 150 feet of the well or approved

21

well location without written approval under this section. If,

22

in the opinion of the well operator or the department, the plan

23

indicates that the proposed pillar is inadequate to protect

24

either the integrity of the well or public health and safety,

25

the affected well operator shall attempt to reach an agreement

26

with the coal operator on a suitable pillar, subject to approval

27

of the department. Upon failure to agree, the well operator may,

28

within ten days after receipt of the proposed plan under this

29

section, file objections under section 3251 (relating to

30

conferences), indicating the size of the pillar to be left as to

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1

each well. If objections are not timely filed and the department

2

has none, the department shall grant approval, reciting that

3

maps and plans have been filed, no objections have been made

4

thereto and the pillar proposed to be left for each well is

5

approved in the manner as projected.

6

(b)  Objections.--If an objection is filed by the well

7

operator or raised by the department, the department shall order

8

that a conference be held under section 3251 within ten days of

9

the filing of objections. At the conference, the coal operator

10

and the person who has objected shall attempt to agree on a

11

proposed plan, showing the pillar to be left around each well,

12

which will satisfy the objections and receive department

13

approval. If an agreement is reached, the department shall grant

14

approval to the coal operator, reciting that a plan has been

15

filed and the pillar to be left for each well is approved

16

pursuant to the agreement. If an agreement is not reached on a

17

plan showing the pillar to be left with respect to a well, the

18

department, by appropriate order, shall determine the pillar to

19

be left with respect to the well. In a proceeding under this

20

section, the department shall follow as nearly as is possible

21

the original plan filed by the coal operator. The department

22

shall not require the coal operator to leave a pillar in excess

23

of 100 feet in radius, except that the department may require a

24

pillar of up to 150 feet in radius if the existence of unusual

25

conditions is established. Pillars determined by the department

26

shall be shown on maps or plans on file with the department as

27

provided in subsection (a), and the department shall approve the

28

pillar to be left for each well.

29

(c)  Pillars of reduced size.--Application may be made at any

30

time to the department by the coal operator to leave a pillar of

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1

a size smaller than shown on the plan approved or determined by

2

the department under this section. If an application is filed,

3

the department shall:

4

(1)  follow the appropriate procedure under subsection

5

(a) or (b);

6

(2)  by appropriate order, determine a plan involving a

7

pillar of a smaller size as to any well covered by the

8

application; and

9

(3)  grant approval for the pillar to be left with

10

respect to each well.

11

(d)  Violation.--No coal operator, without written approval

12

of the department after notice and opportunity for a hearing

13

under this section, shall remove coal or cut a passageway so as

14

to leave a pillar of smaller size, with respect to an oil or gas

15

well, than that approved by the department under this chapter.

16

(e)  Limitation.--With regard to a coal pillar required by

17

law to be left around a well drilled prior to April 18, 1985,

18

nothing in this chapter shall be construed to:

19

(1)  require a well operator to pay for the coal pillar;

20

(2)  affect a right which a coal operator may have had

21

prior to April 18, 1985, to obtain payment for the coal

22

pillar; or

23

(3)  affect a duty or right which a storage operator or

24

landowner may have had prior to April 18, 1985, to pay or not

25

pay for the coal pillar.

26

(f)  Mining through plugged wells.--A coal operator who

27

intends to mine through a plugged oil or gas well or otherwise

28

completely remove any pillar from around that well shall file a

29

plan under subsection (a) which shall be subject to all of the

30

provisions of this section. No coal operator may mine through a

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1

plugged oil or gas well of which he has knowledge until written

2

approval has been granted by the department in accordance with

3

this section. The Bureau of Deep Mine Safety in the department

4

shall have the authority to establish conditions under which the

5

department may approve a coal operator's plan to mine through a

6

plugged oil or gas well.

7

§ 3225.  Bonding.

8

(a)  General rule.--The following shall apply:

9

(1)  Except as provided in subsection (d), upon filing an

10

application for a well permit, and before continuing to

11

operate an oil or gas well, the owner or operator of the well

12

shall file with the department a bond covering the well and

13

well site on a form to be prescribed and furnished by the

14

department. A bond filed with an application for a well

15

permit shall be payable to the Commonwealth and conditioned

16

upon the operator's faithful performance of all drilling,

17

water supply replacement, restoration and plugging

18

requirements of this chapter. A bond for a well in existence

19

on April 18, 1985, shall be payable to the Commonwealth and

20

conditioned upon the operator's faithful performance of all

21

water supply replacement, restoration and plugging

22

requirements of this chapter. The amount of the bond required

23

shall be in the following amounts and may be adjusted by the

24

Environmental Quality Board every two years to reflect the

25

projected costs to the Commonwealth of plugging the well:

26

(i)  For wells with a total well bore length less

27

than 6,000 feet:

28

(A)  For operating up to 50 wells, $4,000 per

29

well; but no bond may be required under this clause

30

in excess of $35,000.

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1

(B)  For operating 51 to 150 wells, $35,000 plus

2

$4,000 per well for each well in excess of 50 wells;

3

but no bond may be required under this clause in

4

excess of $60,000.

5

(C)  For operating 151 to 250 wells, $60,000 plus

6

$4,000 per well for each well in excess of 150 wells;

7

but no bond may be required under this clause in

8

excess of $100,000.

9

(D)  For operating more than 250 wells, $100,000

10

plus $4,000 per well for each well in excess of 250

11

wells; but no bond may be required under this clause

12

in excess of $250,000.

13

(ii)  For wells with a total well bore length greater

14

than 6,000 feet:

15

(A)  For operating up to 25 wells, $10,000 per

16

well; but no bond may be required under this clause

17

in excess of $60,000.

18

(B)  For operating 26 to 50 wells, $60,000 plus

19

$10,000 per well for each well in excess of 25 wells;

20

but no bond may be required under this clause in

21

excess of $120,000.

22

(C)  For operating 51 to 150 wells, $120,000 plus

23

$10,000 per well for each well in excess of 50 wells;

24

but no bond may be required under this clause in

25

excess of $180,000.

26

(D)  For operating more than 150 wells, $180,000

27

plus $10,000 per well for each well in excess of 150

28

wells; but no bond may be required under this clause

29

in excess of $250,000.

30

(2)  In lieu of individual bonds for each well, an owner

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1

or operator may file a blanket bond for the applicable amount

2

under paragraph (1), on a form prepared by the department,

3

covering all of its wells in this Commonwealth, as enumerated

4

on the bond form.

5

(3)  Liability under the bond shall continue until the

6

well has been properly plugged in accordance with this

7

chapter and for a period of one year after filing of the

8

certificate of plugging with the department. Each bond shall

9

be executed by the operator and a corporate surety licensed

10

to do business in this Commonwealth and approved by the

11

secretary. In lieu of a corporate surety, the operator may

12

deposit with the department:

13

(i)  cash;

14

(ii)  certificates of deposit or automatically

15

renewable irrevocable letters of credit, from financial

16

institutions chartered or authorized to do business in

17

this Commonwealth and regulated and examined by the

18

Commonwealth or a Federal agency, which may be terminated

19

at the end of a term only upon 90 days' prior written

20

notice by the financial institution to the permittee and

21

the department;

22

(iii)  negotiable bonds of the United States

23

Government or the Commonwealth, the Pennsylvania Turnpike

24

Commission, the General State Authority, the State Public

25

School Building Authority or any municipality within the

26

Commonwealth; or

27

(iv)  United States Treasury Bonds issued at a

28

discount without a regular schedule of interest payments

29

to maturity, otherwise known as Zero Coupon Bonds, having

30

a maturity date of not more than ten years after the date

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1

of purchase and at the maturity date having a value of

2

not less than the applicable amount under paragraph (1).

3

The cash deposit, certificate of deposit, amount of the

4

irrevocable letter of credit or market value of the

5

securities shall be equal at least to the sum of the

6

bond.

7

(4)  The secretary shall, upon receipt of a deposit of

8

cash, letters of credit or negotiable bonds, immediately

9

place the same with the State Treasurer, whose duty it shall

10

be to receive and hold the same in the name of the

11

Commonwealth, in trust, for the purpose for which the deposit

12

is made.

13

(5)  The State Treasurer shall at all times be

14

responsible for custody and safekeeping of deposits. The

15

operator making the deposit shall be entitled from time to

16

time to demand and receive from the State Treasurer, on the

17

written order of the secretary, the whole or any portion of

18

collateral deposited, upon depositing with the State

19

Treasurer, in lieu of that collateral, other collateral of

20

classes specified in this section having a market value at

21

least equal to the sum of the bond, and also to demand,

22

receive and recover the interest and income from the

23

negotiable bonds as they become due and payable.

24

(6)  If negotiable bonds on deposit under this subsection

25

mature or are called, the State Treasurer, at the request of

26

the owner of the bonds, shall convert them into other

27

negotiable bonds, of classes specified in this section,

28

designated by the owner.

29

(7)  If notice of intent to terminate a letter of credit

30

is given, the department shall give the operator 30 days'

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1

written notice to replace the letter of credit with other

2

acceptable bond guarantees as provided in this section. If

3

the owner or operator fails to timely replace the letter of

4

credit, the department shall draw upon and convert the letter

5

of credit into cash and hold it as a collateral bond

6

guarantee.

7

(b)  Release.--No bond shall be fully released until the

8

requirements of subsection (a) and section 3223 (relating to

9

notification and effect of well transfer) have been fully met.

10

Upon release of bonds and collateral under this section, the

11

State Treasurer shall immediately return to the owner the

12

specified amount of cash or securities.

13

(c)  Noncompliance.--If a well owner or operator fails or

14

refuses to comply with subsection (a), regulations promulgated

15

under this chapter or conditions of a permit relating to this

16

chapter, the department may declare the bond forfeited and shall

17

certify the same to the Attorney General, who shall proceed to

18

enforce and collect the full amount of the bond and, if the well

19

owner or operator has deposited cash or securities as collateral

20

in lieu of a corporate surety, the department shall declare the

21

collateral forfeited and direct the State Treasurer to pay the

22

full amount of the funds into the Well Plugging Restricted

23

Revenue Account or to sell the security to the extent forfeited

24

and pay the proceeds into the Well Plugging Restricted Revenue

25

Account. If a corporate surety or financial institution fails to

26

pay a forfeited bond promptly and in full, the corporate surety

27

or financial institution shall be disqualified from writing

28

further bonds under this chapter or any other environmental law

29

administered by the department. A person aggrieved by reason of

30

forfeiting the bond or converting collateral, as provided in

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1

this section, shall have a right to appeal to the Environmental

2

Hearing Board in the manner provided by law. Upon forfeiture of

3

a blanket bond for a violation occurring at one or more well

4

sites, the person whose bond is forfeited shall, within ten days

5

of the forfeiture, submit a replacement bond to cover all other

6

wells of which the person is an owner or operator. Failure to

7

submit the replacement bond constitutes a violation of this

8

section as to each of the wells owned or operated by the person.

9

(d)  Alternatives to certain bonds.--The following shall

10

apply:

11

(1)  An operator of not more than 200 wells who cannot

12

obtain a bond for a well drilled prior to April 18, 1985, as

13

required under subsection (a), due to inability to

14

demonstrate sufficient financial resources may, in lieu of

15

the bond:

16

(i)  Submit to the department a fee in the amount of

17

$50 per well, a blanket fee of $500 for ten to 20 wells

18

or a blanket fee of $1,000 for more than 20 wells, which

19

shall be a nonrefundable fee paid each year that the

20

operator has not filed a bond with the department. All

21

fees collected in lieu of a bond under this subsection

22

shall be used for the purposes authorized by this

23

chapter. The Environmental Quality Board shall have the

24

power, by regulation, to increase the amount of the fees

25

established under this subsection.

26

(ii)  Make phased deposits of collateral to fully

27

collateralize the bond, subject to the following:

28

(A)  Payment shall be based on the number of

29

wells owned or operated. The operator shall make an

30

initial deposit and make annual deposits in

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1

accordance with the schedule in clause (B). Interest

2

accumulated by the collateral shall become a part of

3

the bond until the collateral plus accumulated

4

interest equals the amount of the required bond. The

5

collateral shall be deposited, in trust, with the

6

State Treasurer as provided in this subsection or

7

with a bank selected by the department which shall

8

act as trustee for the benefit of the Commonwealth to

9

guarantee the operator's compliance with the

10

drilling, water supply replacement, restoration and

11

plugging requirements of this chapter. The operator

12

shall be required to pay all costs of the trust.

13

(B)  An operator of up to ten existing wells who

14

does not intend to operate additional wells shall

15

deposit $250 per well and shall, thereafter, annually

16

deposit $50 per well until the obligations of this

17

section are fully met. An operator of 11 to 25 wells

18

or an operator of up to ten wells who applies for one

19

or more permits for additional wells shall deposit

20

$2,000 and shall, thereafter, annually deposit $1,150

21

plus $150 for each additional well to be permitted

22

that year until the obligations of this section are

23

fully met. An operator of 26 to 50 wells shall

24

deposit $3,000 and shall, thereafter, annually

25

deposit $1,300 plus $400 for each additional well to

26

be permitted that year until the obligations of this

27

section are fully met. An operator of 51 to 100 wells

28

shall deposit $4,000 and shall, thereafter, annually

29

deposit $1,500 plus $400 for each additional well to

30

be permitted that year until the obligations of this

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1

section are fully met. Operators of 101 to 200 wells

2

shall deposit $8,000 and shall, thereafter, annually

3

deposit $1,600 plus $1,000 for each additional well

4

to be permitted that year until the obligations of

5

this section are fully met. Operators of more than

6

200 wells shall fully bond their wells immediately.

7

(C)  The department shall reduce the amount of

8

phased collateral payments or the period of time over

9

which phased collateral payments shall be made on

10

behalf of owners or operators who, prior to August 1,

11

1992, have paid a fee in lieu of bond under

12

subparagraph (i), and who, by August 1, 1993, choose

13

to enter the phased collateral program under this

14

subparagraph rather than continue to make payments in

15

lieu of bond. Payments made prior to August 1, 1992,

16

in lieu of bond shall not be credited in any other

17

manner, and the department shall not be required to

18

refund the fees. The Environmental Quality Board, by

19

regulation, may change the annual deposits

20

established under clause (B) if necessary to

21

accommodate a change in the amount of the bond

22

required under this section.

23

(2)  An operator may continue to pay a fee in lieu of

24

bond or make phased deposits of collateral to fully

25

collateralize the bond so long as the operator does not miss

26

a payment under this subsection and remains in compliance

27

with this chapter. If an operator misses a payment under this

28

subsection, the operator shall immediately:

29

(i)  submit the appropriate bond amount in full; or

30

(ii)  cease all operations and plug all wells.

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1

(d.1)  Individuals.--The following shall apply:

2

(1)  An individual who is unable to obtain a bond to

3

drill new wells due to inability to demonstrate financial

4

resources may meet the collateral bond requirements of

5

subsection (a) by making phased deposits of collateral to

6

fully collateralize the bond. The individual shall be limited

7

to drilling ten new wells per calendar year and, for each

8

well to be drilled, deposit $500 and make an annual deposit

9

of 10% of the remaining bond amount for a period of ten

10

years. Interest accumulated shall become a part of the bond

11

until the collateral plus accumulated interest equals the

12

amount of the required bond. The collateral shall be

13

deposited in trust with the State Treasurer under subsection

14

(a) or with a bank selected by the department which shall act

15

as trustee for the benefit of the Commonwealth to guarantee

16

the individual's compliance with the drilling, water supply

17

replacement, restoration and plugging requirements of this

18

chapter. The individual shall pay all costs of the trust.

19

(2)  Individuals may continue to use phased collateral to

20

obtain permits if they have not missed a payment for a well

21

drilled under this provision and remain in compliance with

22

this chapter. If an individual misses a payment, the

23

individual shall:

24

(i)  immediately submit the appropriate bond amount

25

in full; or

26

(ii)  cease all operations and plug all wells.

27

(3)  For purposes of this subsection, an "individual"

28

means a natural person doing business under his own name.

29

(e)  Reservation of remedies.--All remedies violating this

30

chapter, regulations adopted under this chapter and conditions

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1

of permits are expressly preserved. Nothing in this section

2

shall be construed as an exclusive penalty or remedy for

3

violations of law. No action taken under this section shall

4

waive or impair any other remedy or penalty provided in law.

5

(f)  Change of law.--Owners or operators who have failed to

6

meet the requirements of this section prior to August 1, 1992,

7

shall not be required to make payments under this section on a

8

retroactive basis as a condition of obtaining a permit under

9

this chapter, nor shall the failure be deemed a violation of

10

this chapter.

11

§ 3226.  Oil and Gas Technical Advisory Board.

12

(a)  Creation of board.--The Oil and Gas Technical Advisory

13

Board is created, consisting of the following members, all of

14

whom shall be chosen by the Governor and shall be residents of

15

this Commonwealth:

16

(1)  Three individuals, each of whom shall be:

17

(i)  a petroleum engineer;

18

(ii)  a petroleum geologist; or

19

(iii)  an experienced driller representative of the

20

oil and gas industry with three years of experience in

21

this Commonwealth.

22

(2)  One mining engineer from the coal industry with

23

three years of experience in this Commonwealth.

24

(3)  One geologist or petroleum engineer with three years

25

of experience in this Commonwealth, who shall be chosen from

26

a list of three names submitted by the Citizens Advisory

27

Council to the Governor and who shall sit as a representative

28

of the public interest.

29

(b)  Reimbursement.--Board members shall not receive a salary

30

but shall be reimbursed for all necessary expenses incurred in

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1

the performance of their duties.

2

(c)  Majority vote.--All actions of the board shall be by

3

majority vote. The board shall meet as called by the secretary,

4

but not less than semiannually, to carry out its duties under

5

this chapter. The board shall select a chairman and other

6

officers deemed appropriate.

7

(d)  Consultation.--The department shall consult with the

8

board in the formulation, drafting and presentation stages of

9

all regulations of a technical nature promulgated under this

10

chapter. The board shall be given a reasonable opportunity to

11

review and comment on all regulations of a technical nature

12

prior to submission to the Environmental Quality Board for

13

initial consideration. The written report of the board shall be

14

presented to the Environmental Quality Board with any regulatory

15

proposal. The chairman of the board shall be invited to

16

participate in the presentation of all regulations of a

17

technical nature before the Environmental Quality Board to the

18

extent allowed by procedures of the Environmental Quality Board.

19

Nothing herein shall preclude any member of the board from

20

filing a petition for rulemaking with the Environmental Quality

21

Board in accordance with procedures established by the

22

Environmental Quality Board.

23

§ 3227.  Air contaminant emissions.

24

(a)  Protocols for air contaminant emissions.--No later than

25

three months after the effective date of this chapter, the

26

department shall publish protocols for the detection,

27

quantification and reporting of air contaminant emissions from

28

unconventional gas production processes including wellhead

29

activities and the storage of unconventional gas prior to

30

processing.

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1

(b)  Report on air contaminant emissions.--No later than nine

2

months after the effective date of this chapter, the department

3

shall publish for public comment a draft report quantifying

4

through measurements and calculations the total air contaminant

5

emissions in this Commonwealth from unconventional gas

6

development processes including wellhead activities and the

7

storage of unconventional gas prior to processing. The

8

department shall publish the final report no later than one year

9

after the effective date of this chapter. The department shall

10

publish a revised report every five years thereafter.

11

(c)  Use of best available scientific principles.--The

12

department shall use best available scientific principles in

13

developing the protocols and reports required by this section.

14

SUBCHAPTER C

15

UNDERGROUND GAS STORAGE

16

Sec.

17

3231.  Reporting requirements for gas storage operations.

18

3232.  Reporting requirements for coal mining operations.

19

3233.  General gas storage reservoir operations.

20

3234.  Gas storage reservoir operations in coal areas.

21

3235.  Inspection of facilities and records.

22

3236.  Reliance on maps and burden of proof.

23

3237.  Exemptions and prohibitions.

24

§ 3231.  Reporting requirements for gas storage operations.

25

(a)  General duties.--The following shall apply:

26

(1)  A person injecting into or storing gas in a storage

27

reservoir underlying or within 3,000 linear feet of a coal

28

mine operating in a coal seam that extends over the storage

29

reservoir or reservoir protective area shall, within 60 days,

30

file with the department a copy of a map and certain data in

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1

the form and manner provided in this subsection or as

2

otherwise prescribed by regulation of the department.

3

(2)  A person injecting gas into or storing gas in a

4

storage reservoir which is not under or within 3,000 linear

5

feet of, but less than 10,000 linear feet from, a coal mine

6

operating in a coal seam that extends over the storage

7

reservoir or reservoir protective area shall file the map and

8

data within 60 days or a longer period set by departmental

9

regulation.

10

(3)  A person proposing to inject or store gas in a

11

storage reservoir located as defined in paragraph (1) or (2)

12

shall file the appropriate required map and data with the

13

department not less than six months prior to starting the

14

actual injection or storage.

15

(4)  A map required by this subsection shall be prepared

16

by a competent engineer or geologist, showing:

17

(i)  the stratum in which the existing or proposed

18

storage reservoir is or is proposed to be located;

19

(ii)  the geographic location of the outside

20

boundaries of the storage reservoir and reservoir

21

protective area;

22

(iii)  the location of all known oil or gas wells in

23

the reservoir or within 3,000 linear feet thereof which

24

have been drilled into or through the storage stratum,

25

indicating which have been or are to be cleaned out and

26

plugged or reconditioned for storage along with the

27

proposed location of all additional wells which are to be

28

drilled within the storage reservoir or within 3,000

29

linear feet thereof.

30

(5)  The following, if available, shall be furnished for

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1

all known oil or gas wells which have been drilled into or

2

through the storage stratum within the storage reservoir or

3

within 3,000 linear feet thereof: name of the operator, date

4

drilled, total depth, depth of production if the well was

5

productive of oil or gas, the initial rock pressure and

6

volume, the depths at which all coal seams were encountered

7

and a copy of the driller's log or other similar information.

8

At the time of the filing of the maps and data, a statement

9

shall be filed:

10

(i)  detailing efforts made to determine that the

11

wells shown are accurately located on the map;

12

(ii)  affirming that the wells shown represent, to

13

the best of the operator's knowledge, all oil or gas

14

wells which have ever been drilled into or below the

15

storage stratum within the proposed storage reservoir or

16

within the reservoir protective area;

17

(iii)  stating whether the initial injection is for

18

testing purposes;

19

(iv)  stating the maximum pressure at which injection

20

and storage of gas is contemplated; and

21

(v)  providing a detailed explanation of the methods

22

to be used or which previously have been used in

23

drilling, cleaning out, reconditioning and plugging wells

24

in the storage reservoir or within the reservoir

25

protective area.

26

(6)  The map and data required to be filed under

27

paragraph (5) shall be amended or supplemented semiannually

28

if material changes occur. The department may require a

29

storage operator to amend or supplement the map or data at

30

more frequent intervals if material changes have occurred

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1

justifying the earlier filing.

2

(b)  Other reporting requirements.--A person who is injecting

3

gas into or storing gas in a storage reservoir not at the time

4

subject to subsection (a), by a process other than that of

5

secondary recovery or gas recycling, shall, within 60 days, or a

6

longer period set by departmental regulations, file maps and

7

data required by departmental regulation and as follows:

8

(1)  A person who, after April 18, 1985, proposes to

9

inject or store gas in a storage reservoir in an area not

10

covered by subsection (a) by a process other than that of

11

secondary recovery or gas recycling shall file the required

12

map and data with the department not less than six months

13

prior to the starting of actual injection or storage.

14

(2)  The map shall be prepared by a competent engineer or

15

competent geologist and show:

16

(i)  the stratum in which the existing or proposed

17

storage reservoir is or is to be located;

18

(ii)  the geographic location of the outside

19

boundaries of the storage reservoir; and

20

(iii)  the location of all known oil or gas wells

21

within the reservoir, or within 3,000 linear feet

22

thereof, which have been drilled into or through the

23

storage stratum, indicating which have been or are to be

24

cleaned out and plugged or reconditioned for storage and

25

the proposed location of all additional wells which are

26

to be drilled within the storage reservoir or within

27

3,000 linear feet thereof.

28

(3)  The following, if available, shall be furnished for

29

all known oil or gas wells which have been drilled into or

30

through the storage stratum within the storage reservoir or

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1

within 3,000 linear feet thereof: name of the operator, date

2

drilled, total depth, depth of production if the well was

3

productive of oil or gas, the initial rock pressure and

4

volume and a copy of the driller's log or other similar

5

information. At the time of the filing of the maps and data,

6

a statement shall be filed:

7

(i)  detailing efforts made to determine that the

8

wells shown are accurately located on the map;

9

(ii)  affirming that the wells shown represent, to

10

the best of the operator's knowledge, all oil or gas

11

wells which have ever been drilled into or below the

12

storage stratum within the proposed storage reservoir;

13

(iii)  stating whether the initial injection is for

14

testing purposes;

15

(iv)  stating the maximum pressure at which injection

16

and storage of gas is contemplated; and

17

(v)  providing a detailed explanation of the methods

18

to be used or which previously have been used in

19

drilling, cleaning out, reconditioning and plugging wells

20

in the storage reservoir.

21

(4)  The map and data required to be filed under

22

paragraph (3) shall be amended or supplemented semiannually

23

if material changes occur. The department may require a

24

storage operator to amend or supplement the map or data at

25

more frequent intervals if material changes have occurred

26

justifying the earlier filing.

27

(c)  Political subdivisions.--Storage operators shall give

28

notice to the department of the name of each political

29

subdivision and county in which the operator maintains and

30

operates a gas storage reservoir.

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1

(d)  Notice to affected persons.--At the time of the filing

2

of maps and data and the filing of amended or supplemental maps

3

or data required by this section, the person filing the

4

information shall give written notice of the filing to all

5

persons who may be affected under the provisions of this chapter

6

by the storage reservoir described in the maps or data. Notices

7

shall contain a description of the boundaries of the storage

8

reservoir. When a person operating a coal mine or owning an

9

interest in coal properties which are or may be affected by the

10

storage reservoir requests, in writing, a copy of any map or

11

data filed with the department, the copy shall be furnished by

12

the storage operator.

13

(e)  Outside boundaries.--For purposes of this chapter, the

14

outside boundaries of a storage reservoir shall be defined by

15

the location of those wells around the periphery of the storage

16

reservoir which had no gas production when drilled in the

17

storage stratum. The boundaries shall be originally fixed or

18

subsequently changed if, based on the number and nature of the

19

wells and the geological and production knowledge of the storage

20

stratum, its character, permeability, distribution and operating

21

experience, it is determined in a conference under section 3251

22

(relating to conferences) that modifications should be made.

23

(f)  Inapplicability of section.--The requirements of this

24

section shall not apply to the operator of an underground gas

25

storage reservoir so long as the reservoir is located more than

26

10,000 linear feet from an operating coal mine, except that the

27

storage operator shall give notice to the department of the name

28

of each political subdivision and county in which the operator

29

maintains and operates a gas storage reservoir. In political

30

subdivisions and counties where both gas storage reservoirs and

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1

coal mines are being operated, the department may request the

2

storage operator to furnish maps showing geographical locations

3

and outside boundaries of the storage reservoirs. The department

4

shall keep a record of the information and promptly notify the

5

coal operator and the storage operator when notified by them

6

that the coal mine and storage reservoir are within 10,000

7

linear feet of each other.

8

§ 3232.  Reporting requirements for coal mining operations.

9

(a)  General rule.--A person owning or operating a coal mine

10

shall file with the department a map prepared and sealed by a

11

competent individual licensed as a professional engineer or

12

professional land surveyor under the provisions of the act of

13

May 23, 1945 (P.L.913, No.367), known as the Engineer, Land

14

Surveyor and Geologist Registration Law, showing the outside

15

coal boundaries of the operating coal mine, the existing

16

workings and exhausted areas and the relationship of the

17

boundaries to identifiable surface properties and landmarks. A

18

person owning or operating an operating coal mine which has been

19

penetrated by a well shall furnish a mine map to the department

20

each year indicating the excavations for the preceding year and

21

the projections for the ensuing year. The map required by this

22

subsection shall be furnished to a person storing or

23

contemplating the storage of gas in the vicinity of operating

24

coal mines, upon written request, by the coal operator, and the

25

person and the department shall thereafter be informed of any

26

boundary changes at the time the changes occur. The department

27

shall keep a record of the information and promptly notify the

28

coal operator and storage operator when notified by them that

29

the coal mine and the storage reservoir are within 10,000 linear

30

feet of each other.

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1

(b)  Mines near certain reservoirs.--A person owning or

2

operating any coal mine which is or which comes within 10,000

3

linear feet of a storage reservoir and where the coal seam being

4

operated extends over the storage reservoir or reservoir

5

protective area shall, within 45 days after receiving notice

6

from the storage operator of that fact, file with the department

7

and furnish to the person operating the storage reservoir a map

8

in the form required by subsection (a) showing, in addition to

9

the requirements of subsection (a), existing and projected

10

excavations and workings of the operating coal mine for the

11

ensuing 18-month period and the location of oil or gas wells of

12

which the coal operator has knowledge. The person owning or

13

operating the coal mine shall, each six months thereafter, file

14

with the department and furnish to the person operating the

15

storage reservoir a revised map showing any additional

16

excavations and workings, together with the projected

17

excavations and workings for the then ensuing 18-month period,

18

which may be within 10,000 linear feet of the storage reservoir.

19

The department may require a coal operator to file revised maps

20

at more frequent intervals if material changes have occurred

21

justifying earlier filing. The person owning or operating the

22

coal mine shall also file with the department and furnish the

23

person operating the reservoir prompt notice of any wells which

24

have been cut into, together with all available pertinent

25

information.

26

(c)  Mines near gas storage reservoirs.--A person owning or

27

operating a coal mine who has knowledge that it overlies or is

28

within 2,000 linear feet of a gas storage reservoir shall,

29

within 30 days, notify the department and the storage operator

30

of that fact.

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1

(d)  Mines projected to be near storage reservoirs.--When a

2

person owning or operating a coal mine expects that, within the

3

ensuing nine-month period, the coal mine will be extended to a

4

point which will be within 2,000 linear feet of any storage

5

reservoir, the person shall notify the department and storage

6

operator in writing of that fact.

7

(e)  New mines.--A person intending to establish or

8

reestablish an operating coal mine which will be over a storage

9

reservoir or within 2,000 linear feet of a storage reservoir or

10

may, within nine months thereafter, be expected to be within

11

2,000 linear feet of a storage reservoir shall immediately

12

notify the department and storage operator in writing. Notice

13

shall include the date on which the person intends to establish

14

or reestablish the operating coal mine.

15

(f)  Misdemeanor.--A person who serves notice as required by

16

this subsection of an intention to establish or reestablish an

17

operating coal mine, without intending in good faith to

18

establish or reestablish the mine, is liable for continuing

19

damages to a storage operator injured by the improper notice and

20

commits a misdemeanor subject to the penalties of section 3255

21

(relating to penalties).

22

§ 3233.  General gas storage reservoir operations.

23

(a)  General rule.--A person who operates or proposes to

24

operate a storage reservoir, except one filled by the secondary

25

recovery or gas recycling process, shall:

26

(1)  Use every known method which is reasonable under the

27

circumstances for discovering and locating all wells which

28

have or may have been drilled into or through the storage

29

reservoir.

30

(2)  Plug or recondition, as provided in departmental

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1

regulations, all known wells drilled into or through the

2

storage reservoir, except to the extent otherwise provided in

3

subsections (b) and (c).

4

(b)  Wells to be plugged.--To comply with subsection (a),

5

wells which are to be plugged shall be plugged in the manner

6

specified in section 3220 (relating to plugging requirements).

7

(b.1)  Wells plugged prior to enactment of section.--If a

8

well located in the storage reservoir area has been plugged

9

prior to April 18, 1985, and on the basis of data, information

10

and other evidence submitted to the department, it is determined

11

that the plugging was done in the manner required by section

12

3220 or approved as an alternative method under section 3221

13

(relating to alternative methods) and the plugging is still

14

sufficiently effective to meet the requirements of this chapter,

15

the obligations under subsection (a) with regard to plugging the

16

well shall be considered to have been fully satisfied.

17

(c)  Wells to be reconditioned.--The following shall apply:

18

(1)  To comply with subsection (a), wells which are to be

19

reconditioned shall, unless the department by regulation

20

specifies a different procedure, be cleaned out from the

21

surface through the storage horizon, and the producing casing

22

and casing strings determined not to be in good physical

23

condition shall be replaced with new casing, using the same

24

procedure as is applicable to drilling a new well under this

25

chapter. In the case of wells to be used for gas storage, the

26

annular space between each string of casing and the annular

27

space behind the largest diameter casing to the extent

28

possible shall be filled to the surface with cement or

29

bentonitic mud or a nonporous material approved by the

30

department under section 3221. At least 15 days prior to

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1

reconditioning, the storage operator shall give notice to the

2

department, setting forth in the notice the manner in which

3

it is planned to recondition the well and any pertinent data

4

known to the storage operator which will indicate the

5

condition of the well existing at that time. In addition, the

6

storage operator shall give the department at least 72 hours'

7

notice of the time when reconditioning is to begin. If no

8

objections are raised by the department within ten days, the

9

storage operator may proceed with reconditioning in

10

accordance with the plan as submitted. If objections are made

11

by the department, the department may fix a time and place

12

for a conference under section 3251 (relating to conferences)

13

at which the storage operator and department shall endeavor

14

to agree on a plan to satisfy the objections and meet the

15

requirements of this section. If no agreement is reached, the

16

department may, by an appropriate order, determine whether

17

the plan as submitted meets the requirements of this section

18

or what changes, if any, are required. If, in reconditioning

19

a well in accordance with the plan, physical conditions are

20

encountered which justify or necessitate a change in the

21

plan, the storage operator may request that the plan be

22

changed. If the request is denied, the department shall fix a

23

conference under section 3251 and proceed in the same manner

24

as with original objections. An application may be made in

25

the manner prescribed by section 3221 for approval of an

26

alternative method of reconditioning a well. If a well

27

located within the storage reservoir was reconditioned, or

28

drilled and equipped, prior to April 18, 1985, the

29

obligations imposed by subsection (a), as to reconditioning

30

the well, shall be considered fully satisfied if, on the

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1

basis of the data, information and other evidence submitted

2

to the department, it is determined that:

3

(i)  The conditioning or previous drilling and

4

equipping was done in the manner required in this

5

subsection, in regulations promulgated under this chapter

6

or in a manner approved as an alternative method in

7

accordance with section 3221.

8

(ii)  The reconditioning or previous drilling and

9

equipping is still sufficiently effective to meet the

10

requirements of this chapter.

11

(2)  If a well requires emergency repairs, this chapter

12

shall not be construed to require the storage operator to

13

give any notice required by this subsection before making the

14

repairs.

15

(d)  Exception.--The requirements of subsection (a) shall not

16

apply to injection of gas into a stratum when the sole purpose

17

of injection, referred to in this subsection as testing, is to

18

determine whether the stratum is suitable for storage purposes.

19

Testing shall be conducted only in compliance with the following

20

requirements:

21

(1)  The person testing or proposing to test shall comply

22

with section 3231 (relating to reporting requirements for gas

23

storage operations) and verify the statement required to be

24

filed by that section.

25

(2)  The storage operator shall give at least six months'

26

written notice to the department of the fact that injection

27

of gas for testing purposes is proposed.

28

(3)  If the department has objections, the department

29

shall fix a time and place for a conference under section

30

3251, not more than ten days from the date of notice to the

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1

storage operator, at which time the storage operator and

2

department shall attempt to resolve the issues presented. If

3

an agreement cannot be reached, the department may issue an

4

appropriate order.

5

(e)  Failure to execute lawful order.--In a proceeding under

6

this chapter, if the department determines that an operator of a

7

storage reservoir has failed to carry out a lawful order issued

8

under this chapter, the department may require the operator to

9

suspend operation of the reservoir and withdraw the gas until

10

the violation is remedied, in which case the storage operator,

11

limited by due diligence insofar as existing facilities utilized

12

to remove gas from the reservoir will permit, shall:

13

(1)  if possible, remove the amount required by the

14

department to be removed; or

15

(2)  in any event, remove the maximum amount which can be

16

withdrawn in accordance with recognized engineering and

17

operating procedures.

18

(f)  Duty of storage reservoir operator.--The following shall

19

apply:

20

(1)  A person owning or operating a storage reservoir

21

subject to this chapter shall have a duty to:

22

(i)  Maintain all wells drilled into or through the

23

reservoir in a condition, and operate them in a manner,

24

sufficient to prevent the escape of gas.

25

(ii)  Operate and maintain the reservoir and its

26

facilities as prescribed by departmental regulations and

27

at a pressure which will prevent gas from escaping, but

28

the pressure shall not exceed the highest rock pressure

29

found to have existed during the production history of

30

the reservoir or another high pressure limit approved by

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1

the department after holding a conference under section

2

3251 based on geological and production knowledge of the

3

reservoir, its character, permeability distribution and

4

operating experience.

5

(2)  The duty under paragraph (1) shall not be construed

6

to include inability to prevent the escape of gas when gas

7

escapes as a result of an act of God or a person not under

8

the control of the storage operator. In that instance, the

9

storage operator shall have a duty to take action reasonably

10

necessary to prevent further escape of gas. This paragraph

11

does not apply to a well which the storage operator failed to

12

locate and make known to the department.

13

§ 3234.  Gas storage reservoir operations in coal areas.

14

(a)  General rule.--A person operating a storage reservoir

15

which underlies or is within 2,000 linear feet of a coal mine

16

operating in a coal seam that extends over the storage reservoir

17

or the reservoir protective area shall:

18

(1)  Use every known reasonable method for discovering

19

and locating all wells which have or may have been drilled

20

into or through the storage stratum in the acreage lying

21

within the outside coal boundaries of the operating coal mine

22

overlying the storage reservoir or the reservoir protective

23

area.

24

(2)  Plug or recondition, as provided by section 3220

25

(relating to plugging requirements) and subsection (e), all

26

known wells, except to the extent provided in subsections

27

(e), (f), (g) and (h), drilled into or through the storage

28

stratum and located within the portion of the acreage of the

29

operating coal mine overlying the storage reservoir or the

30

reservoir protective area. If an objection is raised as to

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1

use of a well as a storage well and after a conference under

2

section 3251 (relating to conferences), it is determined by

3

the department, taking into account all circumstances and

4

conditions, that the well should not be used as a storage

5

well, the well shall be plugged unless, in the opinion of the

6

storage operator, the well may be used as a storage well in

7

the future, in which case, upon approval of the department

8

after taking into account all circumstances and conditions,

9

the storage operator may recondition and inactivate the well

10

rather than plug it.

11

(3)  The requirements of paragraph (2) shall be deemed to

12

have been fully complied with if, as the operating coal mine

13

is extended, all wells which from time to time come within

14

the acreage described in paragraph (2) are reconditioned or

15

plugged as provided in section 3220 and subsection (e) or (f)

16

so that, by the time the coal mine has reached a point within

17

2,000 linear feet of the wells, they will have been

18

reconditioned or plugged in accordance with section 3220 and

19

subsection (e) or (f).

20

(b)  Verified statement.--A person operating a storage

21

reservoir referred to in subsection (a) shall file with the

22

department and furnish a copy to the person operating the

23

affected operating coal mine a verified statement setting forth:

24

(1)  That the map and any supplemental maps required by

25

section 3231(a) (relating to reporting requirements for gas

26

storage operations) have been prepared and filed in

27

accordance with section 3231.

28

(2)  A detailed explanation of what the storage operator

29

has done to comply with the requirements of subsection (a)(1)

30

and (2) and the results of those actions.

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1

(3)  Such additional efforts, if any, as the storage

2

operator is making and intends to make to locate all wells.

3

(4)  Any additional wells that are to be plugged or

4

reconditioned to meet the requirements of subsection (a)(2).

5

(b.1)  Order of department.--If the statement required under

6

subsection (b) is not filed by the storage reservoir operator

7

within the time specified by this chapter or the regulations of

8

the department, the department may order the operator to file

9

the statement.

10

(c)  Procedure.--Within 120 days after receipt of a statement

11

required by this section, the department may direct that a

12

conference be held in accordance with section 3251 to determine

13

whether the requirements of section 3231 and subsection (a) have

14

been fully met. At the conference, if any person believes the

15

requirements have not been fully met, the parties shall attempt

16

to agree on additional actions to be taken and the time for

17

completion, subject to approval of the department. If an

18

agreement cannot be reached, the department shall make a

19

determination and, if the department determines any requirements

20

have not been met, the department shall issue an order

21

specifying in detail the extent to which the requirements have

22

not been met and the actions which the storage operator must

23

complete to meet the requirements. The order shall grant as much

24

time as is reasonably necessary to fully comply. If the storage

25

operator encounters conditions not known to exist at the time of

26

issuance of the order and which materially affect the validity

27

of the order or the ability of the storage operator to comply

28

with it, the storage operator may apply for a rehearing or

29

modification of the order.

30

(d)  Notification.--If, in complying with subsection (a), a

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1

storage operator, after filing the statement provided for in

2

subsection (b), plugs or reconditions a well, the storage

3

operator shall notify the department and the coal operator

4

affected, in writing, setting forth facts indicating the manner

5

in which the plugging or reconditioning was done. Upon receipt

6

of the notification, the coal operator or department may request

7

a conference under section 3251.

8

(e)  Plugging wells.--In order to meet the requirements of

9

subsection (a), wells which are to be plugged shall be plugged

10

in the manner specified in regulations promulgated under section

11

3211 (relating to well permits). When a well located within the

12

storage reservoir or the reservoir protective area has been

13

plugged prior to April 18, 1985, and, on the basis of the data

14

information and other evidence submitted to the department, it

15

is determined that the plugging was done in the manner required

16

by section 3220, or in a manner approved as an alternative

17

method in accordance with section 3221 (relating to alternative

18

methods), and the plugging is still sufficiently effective to

19

meet the requirements of this chapter, the requirements of

20

subsection (a) as to plugging the well shall be considered to

21

have been fully satisfied.

22

(f)  Reconditioned wells.--The following shall apply:

23

(1)  In order to comply with subsection (a), unless the

24

department by regulation specifies a different procedure,

25

wells which are to be reconditioned shall be cleaned out from

26

the surface through the storage horizon, and the following

27

casing strings shall be pulled and replaced with new casing,

28

using the procedure applicable to drilling a new well under

29

this chapter:

30

(i)  the producing casing;

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1

(ii)  the largest diameter casing passing through the

2

lowest workable coal seam unless it extends at least 25

3

feet below the bottom of the coal seam and is determined

4

to be in good physical condition, but the storage

5

operator may, instead of replacing the largest diameter

6

casing, replace the next largest casing string if the

7

casing string extends at least 25 feet below the lowest

8

workable coal seam; and

9

(iii)  casing strings determined not to be in good

10

physical condition.

11

(2)  In the case of a well to be used for gas storage,

12

the annular space between each string of casing and the

13

annular space behind the largest diameter casing, to the

14

extent possible, shall be filled to the surface with cement

15

or bentonitic mud or an equally nonporous material approved

16

by the department under section 3221.

17

(3)  At least 15 days before a well is to be

18

reconditioned, the storage operator shall give notice to the

19

department and the coal operator, lessee or owner, setting

20

forth the manner in which reconditioning is planned and

21

pertinent data known to the storage operator which will

22

indicate the current condition of the well, along with at

23

least 72 hours' notice of the date and time when

24

reconditioning will begin. The coal operator, lessee or owner

25

shall have the right to file, within ten days after receipt

26

of the notice, objections to the plan of reconditioning as

27

submitted by the storage operator. If no objections are filed

28

and none are raised by the department within ten days, the

29

storage operator may proceed with reconditioning in

30

accordance with the plan as submitted. If an objection is

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1

filed or made by the department, the department shall fix a

2

time and place for a conference under section 3251, at which

3

conference the storage operator and the person having

4

objections shall attempt to agree on a plan of reconditioning

5

that meets the requirements of this section. If no agreement

6

is reached, the department shall, by an appropriate order,

7

determine whether the plan as submitted meets the

8

requirements of this section or what changes should be made

9

to meet the requirements. If, in reconditioning the well in

10

accordance with the plan, physical conditions are encountered

11

which justify or necessitate a change in the plan, the

12

storage operator or coal operator may request that the plan

13

be changed. If the parties cannot agree on a change, the

14

department shall arrange for a conference to determine the

15

matter in the same manner as set forth in connection with

16

original objections to the plan.

17

(4)  Application may be made to the department in the

18

manner prescribed in section 3221 for approval of an

19

alternative method of reconditioning a well. When a well

20

located within the storage reservoir or the reservoir

21

protective area has been reconditioned or drilled and

22

equipped prior to April 18, 1985, and, on the basis of the

23

data, information and other evidence submitted to the

24

department, the obligations imposed by subsection (a) as to

25

reconditioning the well shall be considered to be fully

26

satisfied if it is determined that reconditioning or previous

27

drilling and equipping:

28

(i)  was done in the manner required in this

29

subsection, or in regulations promulgated hereunder, or

30

in a manner approved as an alternative method in

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1

accordance with section 3221; or

2

(ii)  is still sufficiently effective to meet the

3

requirements of this chapter.

4

(5)  If a well requires emergency repairs, this

5

subsection shall not be construed to require the storage

6

operator to give the notices specified herein before making

7

the repairs.

8

(g)  Producing wells.--If a well located within the reservoir

9

protective area is a producing well in a stratum below the

10

storage stratum, the obligations imposed by subsection (a) shall

11

not begin until the well ceases to be a producing well.

12

(h)  Certain other wells.--If a well within a storage

13

reservoir or reservoir protective area penetrates the storage

14

stratum but does not penetrate the coal seam being mined by an

15

operating coal mine, the department may, upon application of the

16

operator of the storage reservoir, exempt the well from the

17

requirements of this section. Either party affected may request

18

a conference under section 3251 with respect to exemption of a

19

well covered by this subsection.

20

(i)  Plugging limitation.--In fulfilling the requirements of

21

subsection (a)(2) with respect to a well within the reservoir

22

protective area, the storage operator shall not be required to

23

plug or recondition the well until the storage operator has

24

received from the coal operator written notice that the mine

25

workings will, within the period stated in the notice, be within

26

2,000 linear feet of the well. Upon the receipt of the notice,

27

the storage operator shall use due diligence to complete the

28

plugging or reconditioning of the well in accordance with the

29

requirements of this section and section 3220. If the mine

30

workings do not, within a period of three years after the well

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1

has been plugged, come within 2,000 linear feet of the well, the

2

coal operator shall reimburse the storage operator for the cost

3

of plugging, provided that the well is still within the

4

reservoir protective area as of that time.

5

(j)  Retreat mining.--If retreat mining approaches a point

6

where, within 90 days, it is expected that the retreat work will

7

be at the location of the pillar surrounding an active storage

8

well, the coal operator shall give written notice to the storage

9

operator, and by agreement, the parties shall determine whether

10

it is necessary or advisable to effectively and temporarily

11

inactivate the well. The well shall not be reactivated until a

12

reasonable period, determined by the parties, has elapsed. If

13

the parties cannot agree as required by this subsection, the

14

matter shall be submitted to the department for resolution. The

15

number of wells required to be temporarily inactivated during

16

the retreat period shall not be of a number that materially

17

affects efficient operation of the storage pool, except that

18

this provision shall not preclude temporary inactivation of a

19

particular well if the practical effect of inactivating it is to

20

render the pool temporarily inoperative.

21

(k)  Exceptions.--The requirements of subsections (a), (l)

22

and (m) shall not apply to injection of gas into a stratum when

23

the whole purpose of injection, referred to in this subsection

24

as testing, is to determine whether the stratum is suitable for

25

storage purposes. Testing shall be conducted only in compliance

26

with the following requirements:

27

(1)  The person testing or proposing to test shall comply

28

with all provisions and requirements of section 3231 and

29

verify the statement required to be filed by that section.

30

(2)  If any part of the proposed storage reservoir is

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1

under or within 2,000 linear feet of an operating coal mine

2

which is operating in a coal seam that extends over the

3

proposed storage reservoir or the reservoir protective area,

4

the storage operator shall give at least six months' written

5

notice to the department and coal operator of the fact that

6

injection of gas for testing purposes is proposed.

7

(3)  The coal operator affected may at any time file

8

objections with the department, whereupon the department

9

shall fix a time and place for a conference under section

10

3251, not more than ten days from the date of the notice to

11

the storage operator. At the conference, the storage operator

12

and the objecting party shall attempt to agree, subject to

13

approval of the department, on the questions involved. If an

14

agreement cannot be reached, the department may issue an

15

appropriate order.

16

(4)  If at any time a proposed storage reservoir being

17

tested comes under or within 2,000 linear feet of an

18

operating coal mine because of extension of the storage

19

reservoir being tested or because of extension or

20

establishment or reestablishment of the operating coal mine,

21

the requirements of this subsection shall immediately become

22

applicable to the testing.

23

(l)  Storage reservoirs near operating coal mines.--A person

24

who proposes to establish a storage reservoir under or within

25

2,000 linear feet of a coal mine operating in a coal seam that

26

extends over the storage reservoir or the reservoir protective

27

area shall, prior to establishing the reservoir, and in addition

28

to complying with section 3231 and subsection (a), file the

29

verified statement required by subsection (b) and fully comply

30

with any order of the department in the manner provided under

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1

subsection (b) or (c) before commencing operation of the storage

2

reservoir. After the person proposing to operate the storage

3

reservoir complies with the requirements of this subsection and

4

commences operations, the person shall continue to be subject to

5

all provisions of this chapter.

6

(m)  Gas storage reservoirs.--If a gas storage reservoir is

7

in operation on April 18, 1985, and at any time thereafter it is

8

under or within 2,000 linear feet of an operating coal mine, or

9

if a gas storage reservoir is put in operation after April 18,

10

1985, and at any time after storage operations begin it is under

11

or within 2,000 linear feet of an operating coal mine, the

12

storage operator shall comply with all of the provisions of this

13

section, except that:

14

(1)  the time for filing the verified statement under

15

subsection (b) shall be 60 days after the date stated in the

16

notice filed by the coal operator under section 3232(d) and

17

(e) (relating to reporting requirements for coal mining

18

operations);

19

(2)  the coal operator shall give notice of the delay to

20

the department;

21

(3)  the department shall, upon the request of the

22

storage operator, extend the time for filing the statement by

23

the additional time which will be required to extend or

24

establish or reestablish the operating coal mine to a point

25

within 2,000 linear feet of the reservoir;

26

(4)  the verified statement shall also indicate that the

27

map referred to in section 3231(a) has been currently amended

28

as of the time of the filing of the statement; and

29

(5)  the person operating the storage reservoir shall

30

continue to be subject to all of the provisions of this

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1

chapter.

2

(n)  Failure to comply with order.--If, in any proceeding

3

under this chapter, the department determines that an operator

4

of a storage reservoir has failed to comply with a lawful order

5

issued under this chapter, the department may require the

6

storage operator to suspend operation of the reservoir and

7

withdraw the gas from it until the violation is remedied, in

8

which case the storage operator, limited by due diligence

9

insofar as existing facilities utilized to remove gas from the

10

reservoir will permit, shall:

11

(1)  if possible, remove the amount required by the

12

department to be removed; or

13

(2)  in any event, remove the maximum amount which can be

14

withdrawn in accordance with recognized engineering and

15

operating procedures.

16

(o)  Prevention of escape of gas.--In addition to initial

17

compliance with other provisions of this chapter and lawful

18

orders issued under this chapter, it shall be the duty, at all

19

times, of a person owning or operating a storage reservoir

20

subject to this chapter to keep all wells drilled into or

21

through the storage stratum in a condition, and operate the

22

wells in a manner, which is designed to prevent the escape of

23

gas out of the storage reservoir and its facilities, and to

24

operate and maintain the storage reservoir and its facilities in

25

the manner prescribed by regulation of the department and at a

26

pressure that will prevent gas from escaping from the reservoir

27

or its facilities. This duty shall not be construed to include

28

inability to prevent the escape of gas when escape results from

29

an act of God or a person not under the control of the storage

30

operator, except that this exception does not apply to a well

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1

which the storage operator has failed to locate and make known

2

to the department. If an escape of gas results from an act of

3

God or a person not under the control of the storage operator,

4

the storage operator shall be under the duty to take any action

5

reasonably necessary to prevent further escape of gas out of the

6

storage reservoir and its facilities.

7

§ 3235.  Inspection of facilities and records.

8

(a)  General rule.--The person operating a storage reservoir

9

affected by this chapter shall, at all reasonable times, be

10

permitted to inspect applicable records and facilities of a coal

11

mine overlying the storage reservoir or reservoir protective

12

area. The person operating a coal mine affected by this chapter

13

shall, at all reasonable times, be permitted to inspect

14

applicable records and facilities of a storage reservoir

15

underlying the coal mine.

16

(b)  Order.--If a storage operator or coal operator subject

17

to subsection (a) refuses to permit inspection of records or

18

facilities, the department may, on its own motion or on

19

application of the party seeking inspection, after reasonable

20

written notice and a hearing if requested by an affected party,

21

order inspection.

22

§ 3236.  Reliance on maps and burden of proof.

23

(a)  General rule.--In determining whether a coal mine or

24

operating coal mine is or will be within a particular distance

25

from a storage reservoir which is material under this chapter,

26

the owner or operator of the coal mine and the storage operator

27

may rely on the most recent map of the storage reservoir or coal

28

mine filed by the other party with the department.

29

(b)  Accuracy.--Where accuracy of a map or data filed under

30

this chapter is in issue, the person that filed the map or data

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1

shall:

2

(1)  at the request of an objecting party, disclose the

3

information and method used to compile the map or data, along

4

with any information available to the person that might

5

affect current validity of the map or data; and

6

(2)  have the burden of proving accuracy of the map or

7

data.

8

§ 3237.  Exemptions and prohibitions.

9

(a)  Inapplicability of chapter to certain coal mines.--This

10

chapter shall not apply to the following types of coal mines:

11

(1)  Strip mines and auger mines operating from the

12

surface.

13

(2)  Mines to which the former act of June 9, 1911

14

(P.L.756, No.319), entitled "An act to provide for the health

15

and safety of persons employed in and about the bituminous

16

coal-mines of Pennsylvania, and for the protection and

17

preservation of property connected therewith," did not apply

18

in accordance with section 3 of that act.

19

(3)  Mines to which the former act of June 2, 1891

20

(P.L.176, No.177), entitled "An act to provide for the health

21

and safety of persons employed in and about the anthracite

22

coal mines of Pennsylvania and for the protection and

23

preservation of property connected therewith," did not apply

24

in accordance with section 32 of that act.

25

(b)  Workable coal seams.--Injection of gas for storage

26

purposes in a workable coal seam, whether or not it is being or

27

has been mined, is prohibited.

28

(b.1)  Original extraction.--Nothing in this chapter

29

prohibits original extraction of natural gas, crude oil or coal.

30

(c)  Certain rock formations.--Nothing in this chapter

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1

applies to storage of gas or liquids in storage reservoirs

2

excavated in rock formations specifically for storage purposes.

3

SUBCHAPTER D

4

EMINENT DOMAIN

5

Sec.

6

3241.  Appropriation of interest in real property.

7

§ 3241.  Appropriation of interest in real property.

8

(a)  General rule.--Except as provided in this subsection, a

9

corporation empowered to transport, sell or store natural gas or

10

manufactured gas in this Commonwealth may appropriate an

11

interest in real property located in a storage reservoir or

12

reservoir protective area for injection, storage and removal

13

from storage of natural gas or manufactured gas in a stratum

14

which is or previously has been commercially productive of

15

natural gas. The right granted by this subsection shall not be

16

exercised to acquire any of the following for the purpose of gas

17

storage:

18

(1)  An interest in a geological stratum within the area

19

of a proposed storage reservoir or reservoir protective area:

20

(i)  unless the original recoverable oil or gas

21

reserves in the proposed storage reservoir have been

22

depleted or exhausted by at least 80%; and

23

(ii)  until the condemnor has acquired the right, by

24

grant, lease or other agreement, to store gas in the

25

geological stratum underlying at least 75% of the area of

26

the proposed storage reservoir.

27

(2)  An interest in a geological stratum within the area

28

of a proposed storage reservoir or reservoir protective area

29

owned directly or indirectly by a gas company or other person

30

engaged in local distribution of natural gas, if the interest

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1

to be acquired is presently being used by the gas company or

2

other person for storage of gas in performance of service to

3

customers in its service area.

4

(b)  Construction.--The following shall apply:

5

(1)  This chapter authorizes appropriation within a

6

storage reservoir or reservoir protective area of the

7

following:

8

(i)  a stratum to be used for storage;

9

(ii)  any gas reserve remaining a stratum to be used

10

for storage;

11

(iii)  an active or abandoned well or wells drilled

12

into a stratum to be used for storage; and

13

(iv)  the right to enter upon and use the surface of

14

lands to:

15

(A)  locate, recondition, maintain, plug or

16

replug an active or abandoned well; or

17

(B)  operate a well drilled into or through a

18

stratum to be used for storage.

19

(2)  This chapter does not preclude the owner of

20

nonstorage strata from drilling wells to produce oil or gas

21

from a stratum above or below the storage stratum

22

appropriated by another person, but a person appropriating or

23

holding storage rights may access, inspect and examine the

24

drilling, the completed well, drilling logs and other records

25

relating to drilling, equipping or operating the well in

26

order to determine whether the storage stratum is being

27

adequately protected to prevent escape of gas stored therein.

28

(3)  This chapter does not authorize appropriation of a

29

coal or coal measure, regardless of whether it is being

30

mined, or an interest in the coal mine or coal measure.

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1

(c)  Activities through appropriated strata.--A person

2

drilling, operating, using or plugging a well through a stratum

3

appropriated under this chapter shall drill, case, equip,

4

operate or plug it in a manner designed to prevent avoidable

5

escape of gas that may be stored in the storage stratum. Upon

6

violation of this subsection, the court of common pleas of the

7

county where the land in question is situated may compel

8

compliance by injunction or grant other appropriate relief in an

9

action brought by the person storing gas in the storage stratum.

10

(d)  Prerequisites to appropriation.--Before appropriating

11

under this chapter, a person shall attempt to agree with owners

12

of interests in the real property involved as to damages payable

13

for rights and interests to be appropriated, if the owners can

14

be found and are sui juris. If the parties fail to agree, the

15

person shall tender a surety bond to the owners to secure them

16

in the payment of damages. If the owners refuse to accept the

17

bond, cannot be found or are not sui juris, and after reasonable

18

notice to the owners by advertisement or otherwise, the bond

19

shall be presented for approval to the court of common pleas of

20

the county in which the tract of land is situated. Upon the

21

approval of the bond by the court, the right of the person to

22

appropriate in accordance with the provisions of this chapter

23

shall be complete.

24

(e)  Appointment of viewers.--Upon petition of a property

25

owner or a person appropriating under this chapter, the court

26

shall:

27

(1)  appoint three disinterested freeholders of the

28

county to serve as viewers to assess damages to be paid to

29

the property owner for the rights appropriated;

30

(2)  fix a time for the parties to meet;

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1

(3)  provide notice to the parties; and

2

(4)  after the viewers have filed their report, fix

3

reasonable compensation for the service of the viewers.

4

(f)  Appeal.--Within 20 days after the filing of a report by

5

viewers appointed under subsection (e), a party may appeal and

6

proceed to a jury trial as in ordinary cases.

7

(g)  Requirements.--Nothing in this section shall relieve a

8

person operating a storage reservoir from the requirements of

9

this chapter.

10

SUBCHAPTER E

11

ENFORCEMENT AND REMEDIES

12

Sec.

13

3251.  Conferences.

14

3252.  Public nuisances.

15

3253.  Enforcement orders.

16

3254.  Restraining violations.

17

3254.1.  Well control emergency response cost recovery.

18

3255.  Penalties.

19

3256.  Civil penalties.

20

3257.  Existing rights and remedies preserved and cumulative

21

remedies authorized.

22

3258.  Inspection and production of materials, witnesses,

23

depositions and rights of entry.

24

3259.  Unlawful conduct.

25

3260.  Collection of fines and penalties.

26

3261.  Third party liability.

27

3262.  Inspection reports.

28

§ 3251.  Conferences.

29

(a)  General rule.--The department or any person having a

30

direct interest in a matter subject to this chapter may, at any

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1

time, request that a conference be held to discuss and attempt

2

to resolve by mutual agreement a matter arising under this

3

chapter. Unless otherwise provided, conferences shall be held

4

within 90 days after a request is received by the department,

5

and notice shall be given by the department to all interested

6

parties. A representative of the department shall attend the

7

conference and the department may make recommendations. An

8

agreement reached at a conference shall be consistent with this

9

chapter and, if approved by the department, it shall be reduced

10

to writing and shall be effective, unless reviewed and rejected

11

by the department within ten days after the conference. The

12

record of an agreement approved by the department shall be kept

13

on file by the department and copies shall be furnished to the

14

parties. The scheduling of a conference shall have no effect on

15

the department's authority to issue orders to compel compliance

16

with this chapter.

17

(b)  Notification.--When a coal operator is to be notified of

18

a proceeding under this section, the department simultaneously

19

shall send a copy of the notice to the collective bargaining

20

representative of employees of the coal operator.

21

§ 3252.  Public nuisances.

22

A violation of section 3215.1 (relating to general

23

restrictions), 3216 (relating to well site restoration), 3217

24

(relating to protection of fresh groundwater and casing

25

requirements), 3218 (relating to protection of water supplies),

26

3219 (relating to use of safety devices) or 3220 (relating to

27

plugging requirements), or a rule, regulation, order, term or

28

condition of a permit relating to any of those sections

29

constitutes a public nuisance.

30

§ 3253.  Enforcement orders.

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1

(a)  General rule.--Except as modified by subsections (b),

2

(c) and (d), the department may issue orders necessary to aid in

3

enforcement of this chapter. An order issued under this chapter

4

shall take effect upon notice, unless the order specifies

5

otherwise. The power of the department to issue an order under

6

this chapter is in addition to any other remedy available to the

7

department under this chapter or under any other law.

8

(b)  Suspension and revocation.--The department may suspend

9

or revoke a well permit or well registration for any well in

10

continuing violation of this chapter, the act of June 22, 1937

11

(P.L.1987, No.394), known as The Clean Streams Law; the act of

12

July 7, 1980 (P.L.380, No.97), known as the Solid Waste

13

Management Act; any other statute administered by the

14

department; or a rule or regulation. A suspension order of the

15

department shall automatically terminate if the violation upon

16

which it is based is corrected by the operator to the

17

satisfaction of the department in order to bring the well into

18

compliance with 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, rule, regulation or other reason relied

23

upon, along with factual circumstances surrounding the alleged

24

violation.

25

(d)  Immediate orders.--An order of the department requiring

26

immediate cessation of drilling operations shall be effective

27

only if authorized by the secretary or a designee.

28

(e)  Grievances.--A person aggrieved by a department order

29

issued under this section shall have the right, within 30 days

30

of receipt of the notice, to appeal to the Environmental Hearing

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1

Board.

2

§ 3254.  Restraining violations.

3

(a)  General rule.--In addition to any other remedy provided

4

in this chapter, the department may institute a suit in equity

5

in the name of the Commonwealth for an injunction to restrain a

6

violation of this chapter or rules, regulations, standards or

7

orders adopted or issued under this chapter and to restrain the

8

maintenance or threat of a public nuisance. Upon motion of the

9

Commonwealth, the court shall issue a prohibitory or mandatory

10

preliminary injunction if it finds that the defendant is

11

engaging in unlawful conduct, as defined by this chapter, or

12

conduct causing immediate and irreparable harm to the public.

13

The Commonwealth shall not be required to furnish bond or other

14

security in connection with the proceeding. In addition to an

15

injunction, the court in equity may level civil penalties as

16

specified in section 3256 (relating to civil penalties).

17

(b)  District attorney.--In addition to other remedies in

18

this chapter, upon relation of the district attorney of a county

19

affected, or upon relation of the solicitor of a municipality

20

affected, an action in equity may be brought in a court of

21

competent jurisdiction for an injunction to restrain a violation

22

of this chapter or rules and regulations promulgated under this

23

chapter or to restrain a public nuisance or detriment to health.

24

(c)  Concurrent penalties.--Penalties and remedies under this

25

chapter shall be deemed concurrent. Existence or exercise of one

26

remedy shall not prevent the department from exercising another

27

remedy at law or in equity.

28

(d)  Jurisdiction.--Actions under this section may be filed

29

in the appropriate court of common pleas or in Commonwealth

30

Court, and those courts are hereby granted jurisdiction to hear

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1

actions under this section.

2

§ 3254.1.  Well control emergency response cost recovery.

3

A person liable for a well control emergency is responsible

4

for all response costs incurred by the department to respond to

5

the well control emergency. In an action before a court of

6

competent jurisdiction, the department may recover all its

7

response costs, including the cost of regaining control of the

8

well, controlling the perimeter of the well site, preparing

9

water sprays, establishing trenches or dikes to capture runoff

10

fluids and providing the resources and equipment needs for the

11

incident.

12

§ 3255.  Penalties.

13

(a)  General violation.--A person violating a provision of

14

this chapter commits a summary offense and, upon conviction,

15

shall be sentenced to pay a fine of not more than $300 or to

16

imprisonment of not more than 90 days, or both. Each day during

17

which the violation continues is a separate and distinct

18

offense.

19

(b)  Willful violation.--A person willfully violating a

20

provision of this chapter or an order of the department issued

21

under this chapter commits a misdemeanor and, upon conviction,

22

shall be sentenced to pay a fine of not more than $5,000 or to

23

imprisonment of not more than one year, or both. Each day during

24

which the violation continues is a separate and distinct

25

offense.

26

(c)  Authority.--The department may institute a prosecution

27

against any person or municipality for a violation of this

28

chapter.

29

§ 3256.  Civil penalties.

30

In addition to other remedies available at law or in equity

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1

for a violation of this chapter, a rule or regulation of the

2

department or a departmental order, the department, after a

3

hearing, may assess a civil penalty regardless of whether the

4

violation was willful. The penalty shall not exceed $50,000 plus

5

$2,000 for each day during which the violation continues. In

6

determining the amount, the department shall consider

7

willfulness of the violation, damage or injury to natural

8

resources of this Commonwealth or their uses, endangerment of

9

safety of others, the cost of remedying the harm, savings

10

resulting to the violator as a result of the violation and any

11

other relevant factor. When the department proposes to assess a

12

civil penalty, it shall notify the person of the proposed amount

13

of the penalty. The person charged with the penalty must, within

14

30 days of notification, pay the proposed penalty in full or

15

file an appeal of the assessment with the Environmental Hearing

16

Board. Failure to comply with the time period under this section

17

shall result in a waiver of all legal rights to contest the

18

violation or the amount of the penalty. The civil penalty shall

19

be payable to the Commonwealth and collectible in any manner

20

provided at law for collection of debts. If a violator neglects

21

or refuses to pay the penalty after demand, the amount, together

22

with interest and costs that may accrue, shall become a lien in

23

favor of the Commonwealth on the real and personal property of

24

the violator, but only after the lien has been entered and

25

docketed of record by the prothonotary of the county where the

26

property is situated. The department may at any time transmit to

27

the prothonotaries of the various counties certified copies of

28

all liens. It shall be the duty of each prothonotary to enter

29

and docket the liens of record in the prothonotary's office and

30

index them as judgments are indexed, without requiring payment

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1

of costs as a condition precedent to entry.

2

§ 3257.  Existing rights and remedies preserved and cumulative

3

remedies authorized.

4

Nothing in this chapter estops the Commonwealth or a district

5

attorney from proceeding in a court of law or in equity to abate

6

pollution forbidden under this chapter or a nuisance under

7

existing law. It is hereby declared to be the purpose of this

8

chapter to provide additional and cumulative remedies to control

9

activities related to drilling for, or production of, oil and

10

gas in this Commonwealth, and nothing contained in this chapter

11

abridges or alters rights of action or remedies existing, or

12

which existed previously, in equity or under common or statutory

13

law, criminal or civil. Neither this chapter, the grant of a

14

permit under this chapter nor an act done by virtue of this

15

chapter estops the Commonwealth, in exercising rights under

16

common or decisional law or in equity, from suppressing a

17

nuisance, abating pollution or enforcing common law or statutory

18

rights. No court of this Commonwealth with jurisdiction to abate

19

public or private nuisances shall be deprived of jurisdiction in

20

an action to abate a private or public nuisance instituted by

21

any person on grounds that the nuisance constitutes air or water

22

pollution.

23

§ 3258.  Inspection and production of materials, witnesses,

24

depositions and rights of entry.

25

(a)  General rule.--The department may make inspections,

26

conduct tests or sampling or examine books, papers and records

27

pertinent to a matter under investigation under this chapter to

28

determine compliance with this chapter. For this purpose, the

29

duly authorized agents and employees of the department may at

30

all reasonable times enter and examine any involved property,

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1

facility, operation or activity.

2

(a.1)  Preoperation inspections.--The operator may not

3

commence drilling activities until the department has conducted

4

an inspection of the unconventional well site after the

5

installation of erosion and sediment control measures. The

6

department may conduct follow-up inspections of well sites and

7

related activities to determine compliance with the act.

8

(b)  Access.--The owner, operator or other person in charge

9

of a property, facility, operation or activity under this

10

chapter, upon presentation of proper identification and purpose

11

either for inspection or to remediate or otherwise respond to a

12

well control emergency, by agents or employees of the

13

department, shall provide free and unrestricted entry and

14

access. Upon refusal, the agent or employee may obtain a search

15

warrant or other suitable order authorizing entry and

16

inspection, remediation or response. It shall be sufficient to

17

justify issuance of a search warrant authorizing examination and

18

inspection if:

19

(1)  there is probable cause to believe that the object

20

of the investigation is subject to regulation under this

21

chapter; and

22

(2)  access, examination or inspection is necessary to

23

enforce the provisions of this chapter.

24

(c)  Witnesses.--In any part of this Commonwealth, the

25

department may subpoena witnesses, administer oaths, examine

26

witnesses, take testimony and compel production of books,

27

records, maps, plats, papers, documents and other writings

28

pertinent to proceedings or investigations conducted by the

29

department under this chapter. Upon refusal to obey a subpoena

30

by any person and on application of the department, a court may

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1

enforce a subpoena in contempt proceedings. Fees for serving a

2

subpoena shall be the same as those paid to sheriffs for similar

3

services.

4

(d)  Deposition.--The department or a party to a proceeding

5

before the department may cause the deposition of a witness who

6

resides in or outside of this Commonwealth to be taken in the

7

manner prescribed by law for taking depositions in civil

8

actions.

9

(e)  Witness fee.--Witnesses summoned before the department

10

shall be paid the same fees as are paid to witnesses in courts

11

of record of general jurisdiction. Witnesses whose depositions

12

are taken under this chapter, and the officers taking those

13

depositions, shall be entitled to the same fees as those paid

14

for like services in court.

15

(f)  Purchasers.--Upon request, a purchaser of oil or gas

16

shall provide the department information necessary to determine

17

ownership of facilities from which the purchaser obtained oil or

18

gas. The information shall be kept confidential for a period of

19

five years, and the department may utilize it in enforcement

20

proceedings. The department may request information under this

21

section only when a well does not comply with section 3211(h)

22

(relating to well permits).

23

§ 3259.  Unlawful conduct.

24

It shall be unlawful for any person to:

25

(1)  Drill, alter, operate or utilize an oil or gas well

26

without a permit or registration from the department as

27

required by this chapter or in violation of rules or

28

regulations adopted under this chapter, orders of the

29

department or a term or condition of a permit issued by the

30

department.

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1

(2)  Conduct an activity related to drilling for, or

2

production of, oil and gas:

3

(i)  contrary to this chapter, rules or regulations

4

adopted under this chapter, an order of the department or

5

a term or condition of a permit issued by the department;

6

or

7

(ii)  in any manner as to create a public nuisance or

8

adversely affect public health, safety, welfare or the

9

environment.

10

(3)  Refuse, obstruct, delay or threaten an agent or

11

employee of the department acting in the course of lawful

12

performance of a duty under this chapter, including, but not

13

limited to, entry and inspection.

14

(4)  Attempt to obtain a permit or identify a well as an

15

orphan well by misrepresentation or failure to disclose all

16

relevant facts.

17

(5)  Cause abandonment of a well by removal of casing or

18

equipment necessary for production without plugging the well

19

in the manner prescribed under section 3220 (relating to

20

plugging requirements), except that the owner or operator of

21

a well may temporarily remove casing or equipment necessary

22

for production, but only if it is part of the normal course

23

of production activities.

24

§ 3260.  Collection of fines and penalties.

25

Fines and penalties shall be collectible in a manner provided

26

by law for collection of debts. If a person liable to pay a

27

penalty neglects or refuses to pay after demand, the amount,

28

together with interest and costs that may accrue, shall be a

29

judgment in favor of the Commonwealth on the person's property,

30

but only after the judgment has been entered and docketed of

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1

record by the prothonotary of the county where the property is

2

situated. The department may transmit to prothonotaries of the

3

various counties certified copies of all judgments, and it shall

4

be the duty of each prothonotary to enter and docket them of

5

record in the prothonotary's office and index them as judgments

6

are indexed, without requiring payment of costs as a condition

7

precedent to entry.

8

§ 3261.  Third party liability.

9

If a person other than a well operator renders a service or

10

product to a well or well site, that person is jointly and

11

severally liable with the well owner or operator for violations

12

of this chapter arising out of and caused by the person's

13

actions at the well or well site.

14

§ 3262.  Inspection reports.

15

The department shall post inspection reports on its publicly

16

accessible Internet website. The inspection reports shall

17

include:

18

(1)  The nature and description of violations.

19

(2)  The operator's written response to the violation, if

20

available.

21

(3)  The status of the violation.

22

(4)  The remedial steps taken by the operator or the

23

department to address the violation.

24

SUBCHAPTER F

25

MISCELLANEOUS PROVISIONS

26

Sec.

27

3271.  Well plugging funds.

28

3272.  Local ordinances.

29

3273.  Effect on department authority.

30

3273.1.  Relationship to solid waste and surface mining.

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1

3274.  Regulatory authority.

2

§ 3271. Well plugging funds.

3

(a)  Appropriation.--Fines, civil penalties and permit and

4

registration fees collected under this chapter are appropriated

5

to the department to carry out the purposes of this chapter.

6

(b)  Surcharge.--To aid in indemnifying the Commonwealth for

7

the cost of plugging abandoned wells, a $50 surcharge is added

8

to the permit fee established by the department under section

9

3211 (relating to well permits) for new wells. Money collected

10

as a result of the surcharge shall be paid into a restricted

11

revenue account in the State Treasury to be known as the

12

Abandoned Well Plugging Fund and expended by the department to

13

plug abandoned wells threatening the health and safety of

14

persons or property or pollution of waters of this Commonwealth.

15

(c)  Orphan Well Plugging Fund.--The following shall apply:

16

(1)  A restricted revenue account to be known as the

17

Orphan Well Plugging Fund is created. A $100 surcharge for

18

wells to be drilled for oil production and a $200 surcharge

19

for wells to be drilled for gas production are added to the

20

permit fee established by the department under section 3211

21

for new wells. The surcharges shall be placed in the Orphan

22

Well Plugging Fund and expended by the department to plug

23

orphan wells. If an operator rehabilitates a well abandoned

24

by another operator or an orphan well, the permit fee and the

25

surcharge for the well shall be waived.

26

(2)  The department shall study its experience in

27

implementing this section and shall report its findings to

28

the Governor and the General Assembly by August 1, 1992. The

29

report shall contain information relating to the balance of

30

the fund, number of wells plugged, number of identified wells

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1

eligible for plugging and recommendations as to alternative

2

funding mechanisms.

3

(3)  Expenditures by the department for plugging orphan

4

wells are limited to fees collected under this chapter. No

5

money from the General Fund shall be expended for this

6

purpose.

7

§ 3272.  Local ordinances.

8

Except with respect to ordinances adopted under the act of

9

July 31, 1968 (P.L.805, No.247), known as the Pennsylvania

10

Municipalities Planning Code, and the act of October 4, 1978

11

(P.L.851, No.166), known as the Flood Plain Management Act, all

12

local ordinances and enactments purporting to regulate oil and

13

gas well operations regulated by this chapter are superseded by

14

this chapter. No ordinances or enactments adopted under the

15

Pennsylvania Municipalities Planning Code or the Flood Plain

16

Management Act may contain provisions which impose conditions,

17

requirements or limitations on the same features of oil and gas

18

well operations regulated by this chapter or that accomplish the

19

same purposes as set forth in this chapter. The Commonwealth, by

20

this chapter, preempts and supersedes the regulation of oil

21

wells and gas wells.

22

§ 3273.  Effect on department authority.

23

This chapter does not affect, limit or impair any right or

24

authority of the department under the act of June 22, 1937

25

(P.L.1987, No.394), known as The Clean Streams Law; the act of

26

January 8, 1960 (1959 P.L.2119, No.787), known as the Air

27

Pollution Control Act; the act of November 26, 1978 (P.L.1375,

28

No.325), known as the Dam Safety and Encroachments Act; or the

29

act of July 7, 1980 (P.L.380, No.97), known as the Solid Waste

30

Management Act.

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1

§ 3273.1.  Relationship to solid waste and surface mining.

2

(a)  General rule.--The obligation to obtain a permit and

3

post a bond under Articles III and V of the act of July 7, 1980

4

(P.L.380, No.97), known as the Solid Waste Management Act, and

5

to provide public notice under section 1905-A(b)(1)(v) of the

6

act of April 9, 1929 (P.L.177, No.175), known as The

7

Administrative Code of 1929, for any pit, impoundment, method or

8

facility employed for the disposal, processing or storage of

9

residual wastes generated by the drilling of an oil or gas well

10

or from the production of wells which is located on the well

11

site, shall be considered to have been satisfied if the owner or

12

operator of the well meets the following conditions:

13

(1)  the well is permitted under the requirements of

14

section 3211 (relating to well permits) or registered under

15

section 3213 (relating to well registration and

16

identification);

17

(2)  the owner or operator has satisfied the financial

18

security requirements of section 3215 (relating to well

19

location restrictions) by obtaining a surety or collateral

20

bond for the well and well site; and

21

(3)  the owner or operator maintains compliance with this

22

chapter and applicable regulations of the Environmental

23

Quality Board.

24

(b)  Noncoal surface mining.--Obligations under the act of

25

December 19, 1984 (P.L.1093, No.219), known as the Noncoal

26

Surface Mining Conservation and Reclamation Act, or a rule or

27

regulation promulgated thereunder, for any borrow area where

28

minerals are extracted solely for the purpose of oil and gas

29

well development, including access road construction, shall be

30

considered to have been satisfied if the owner or operator of

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1

the well meets the conditions imposed under subsection (a)(1)

2

and (2) and maintains compliance with this chapter and

3

applicable regulations of the Environmental Quality Board.

4

(c)  Solid Waste Management Act.--This section does not

5

diminish or otherwise affect duties or obligations of an owner

6

or operator under the Solid Waste Management Act. This section

7

does not apply to waste classified as hazardous waste under the

8

Solid Waste Management Act or the Resource Conservation and

9

Recovery Act of 1976 (Public Law 94-580, 90 Stat. 2795, 42

10

U.S.C. § 6901 et seq.).

11

(d)  Definition.--As used in this section and sections 3216

12

(relating to well site restoration) and 3225 (relating to

13

bonding), the term "well site" means areas occupied by all

14

equipment or facilities necessary for or incidental to drilling,

15

production or plugging a well.

16

§ 3274.  Regulatory authority.

17

(a)  Existing regulations.--The rulemaking for 25 Pa. Code

18

Ch. 78 (relating to oil and gas wells) promulgated at 41 Pa.B.

19

805 (February 5, 2011), shall apply only to unconventional gas

20

wells.

21

(b)  New regulations.--The Environmental Quality Board shall

22

adopt regulations to implement this chapter.

23

CHAPTER 33

24

LOCAL ORDINANCES RELATING TO

25

OIL AND GAS OPERATIONS

26

Sec.

27

3301.  Scope of chapter.

28

3302.  Definitions.

29

3303.  Local ordinances.

30

3304.  Review by Attorney General.

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1

3305.  Civil actions.

2

3306.  Commonwealth Court masters.

3

3307.  Attorney fees and costs.

4

3308.  Sanction.

5

3309.  Provisions of local ordinances.

6

3310.  Applicability.

7

§ 3301.  Scope of chapter.

8

The purposes of this chapter are to:

9

(1)  Allow municipalities to efficiently regulate oil and

10

gas operations consistent with their authority under the act

11

of July 31, 1968 (P.L.805, No.247), known as the Pennsylvania

12

Municipalities Planning Code.

13

(2)  Foster the expeditious and efficient handling of

14

municipal oil and gas procedures.

15

(3)  Clarify the role of all Federal and State agencies

16

and municipal governments with regard to oil and gas

17

development activities.

18

§ 3302.  Definitions.

19

The following words and phrases when used in this chapter

20

shall have the meanings given to them in this section unless the

21

context clearly indicates otherwise:

22

"Building."  An occupied structure with walls and roof within

23

which individuals live or customarily work.

24

"Environment acts."  All statutes enacted by the Commonwealth

25

relating to the protection of the environment or the protection

26

of public health, safety and welfare, that are administered and

27

enforced by the department or by another Commonwealth agency,

28

including an independent agency, and all Federal statutes

29

relating to the protection of the environment, to the extent

30

those statutes regulate oil and gas operations.

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1

"Local government."  A county, city, borough, incorporated

2

town or township of this Commonwealth.

3

"Local ordinance."  An ordinance adopted by a local

4

government that regulates oil and gas operations.

5

"MPC."  The act of July 31, 1968 (P.L.805, No.247), known as

6

the Pennsylvania Municipalities Planning Code.

7

"Oil and gas operations."  The term includes the following:

8

(1)  well location assessment, including seismic

9

operations, well site preparation, construction, drilling,

10

hydraulic fracturing and site restoration associated with an

11

oil or gas well of any depth;

12

(2)  water and other fluid storage or impoundment areas

13

used exclusively for oil and gas operations;

14

(3)  construction, installation, use, maintenance and

15

repair of:

16

(i)  oil and gas pipelines;

17

(ii)  natural gas compressor stations; and

18

(iii)  natural gas processing plants or facilities

19

performing equivalent functions; and

20

(4)  construction, installation, use, maintenance and

21

repair of all equipment directly associated with activities

22

specified in paragraphs (1), (2) and (3), to the extent that:

23

(i)  the equipment is necessarily located at or

24

immediately adjacent to a well site, impoundment area,

25

oil and gas pipeline, natural gas compressor station or

26

natural gas processing plant; and

27

(ii)  the activities are authorized and permitted

28

under the authority of a Federal or Commonwealth agency.

29

"Permitted use."  A use which, upon submission of notice to

30

and receipt of a permit issued by a zoning officer or equivalent

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1

official, is authorized to be conducted without restrictions

2

other than those set forth in section 3309 (relating to

3

provisions of local ordinances).

4

§ 3303.  Local ordinances.

5

(a)  General rule.--A local ordinance may only be enacted

6

pursuant to the MPC, the act of March 31, 1927 (P.L.98, No.69),

7

referred to as the Second Class City Zoning Law, or the act of

8

October 4, 1978 (P.L.851, No.166), known as the Flood Plain

9

Management Act,  as applicable, and shall provide for the

10

reasonable development of minerals within the local government

11

in accordance with the provisions of section 603(i) of the MPC

12

and this chapter.

13

(b)  Limitation.--Except as provided in this chapter, a local

14

ordinance shall not conflict with and shall not regulate oil and

15

gas operations covered by the environment acts, except to the

16

extent that the environment acts provide the authority.

17

(c)  Construction.--Nothing in this chapter shall be

18

construed to impair or infringe on the preemption provisions of

19

section 3272 (relating to local ordinances).

20

§ 3304.  Review by Attorney General.

21

(a)  Request of owner or operator.--An owner or operator of

22

an oil and gas operation, or any person having the right to

23

royalty payments under a lease of oil or gas mineral rights, may

24

request the Attorney General to review a local ordinance to

25

determine whether it allows for the reasonable development of

26

oil and gas resources in accordance with the provisions

27

specifically addressed in this chapter, the MPC and judicial

28

decisions of the Commonwealth.

29

(b)  Preenactment review.--A local government may, prior to

30

the enactment of a local ordinance, request the Attorney General

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1

to review the ordinance to determine whether it allows for the

2

reasonable development of oil and gas resources in accordance

3

with the provisions of Chapter 32 (relating to development), the

4

MPC and judicial decisions of the Commonwealth.

5

(c)  Time period for review.--Within 120 days of receiving a

6

request under subsection (a) or (b), the Attorney General shall

7

advise in writing the person that made the request whether or

8

not the Attorney General determines that the local ordinance

9

provides for the reasonable development of oil and gas reserves

10

and provide a copy of the written determination to the affected

11

local government.

12

§ 3305.  Civil actions.

13

(a)  Attorney General.--The Attorney General may bring an

14

action against a local government in Commonwealth Court to

15

invalidate or enjoin the enforcement of a local ordinance that

16

does not allow for the reasonable development of oil and gas

17

resources.

18

(b)  Private right of action.--

19

(1)  Notwithstanding any provision of 42 Pa.C.S. Ch. 85

20

Subch. C (relating to actions against local parties), any

21

person who is aggrieved by the enactment or enforcement of a

22

local ordinance that does not allow for the reasonable

23

development of oil and gas resources in accordance with the

24

provisions of section 3272 (relating to local ordinances) may

25

bring an action in Commonwealth Court to invalidate the

26

ordinance or enjoin its enforcement.

27

(2)  An aggrieved person may proceed without first

28

obtaining review of the ordinance by the Attorney General or

29

may proceed after receiving such review if the Attorney

30

General determines that the ordinance fails to comply with

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1

this chapter but declines to bring an action under subsection

2

(a).

3

(3)  In an action brought relating to the enactment or

4

enforcement of a local ordinance, the determination of the

5

Attorney General made under section 3304 (relating to review

6

by Attorney General) shall become part of the record before

7

the court.

8

§ 3306.  Commonwealth Court masters.

9

(a)  General rule.--The Commonwealth Court may promulgate

10

rules for the selection and appointment of masters on a full-

11

time or part-time basis to oversee actions brought under section

12

3305 (relating to civil actions). A master must be a member of

13

the bar of this Commonwealth. The number and compensation of

14

masters shall be fixed by the Commonwealth Court, and their

15

compensation shall be paid by the Commonwealth.

16

(b)  Procedure.--

17

(1)  The Commonwealth Court may direct that a hearing in

18

an action brought under section 3305 be conducted in the

19

first instance by the master in the manner provided for in

20

this section.

21

(2)  Upon the conclusion of a hearing before a master,

22

the master shall transmit written findings and

23

recommendations for disposition to the president judge.

24

Prompt written notice and copies of the findings and

25

recommendations shall be given to the parties to the

26

proceeding.

27

(3)  The findings and recommendations of the master shall

28

become the findings and order of the Commonwealth Court upon

29

written confirmation by the president judge. A rehearing may

30

be ordered by the president judge at any time upon cause

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1

shown.

2

§ 3307.  Attorney fees and costs.

3

In an action brought under section 3305 (relating to civil

4

actions), the court may do any of the following:

5

(1)  If the court determines that the local government

6

enacted or enforced a local ordinance with willful or

7

reckless disregard for the limitation of authority

8

established under State law, it may order the local

9

government to pay the plaintiff reasonable attorney fees and

10

other reasonable costs incurred by the plaintiff in

11

connection with the action.

12

(2)  If the court determines that the action brought by

13

the plaintiff was frivolous or was brought without

14

substantial justification in claiming that the local

15

ordinance in question was contrary to the requirements of

16

this chapter or Chapter 32 (relating to development), it may

17

order the plaintiff to pay the local government reasonable

18

attorney fees and other reasonable costs incurred by the

19

local government in defending the action.

20

§ 3308.  Sanction.

21

If the Attorney General, the Commonwealth Court or the

22

Supreme Court determines that a local ordinance fails to provide

23

for the reasonable development of oil and gas resources, the

24

local government enacting or enforcing the local ordinance shall

25

be immediately ineligible to receive any funds collected under

26

Chapter 23 (relating to drilling impact fee). The local

27

government shall remain ineligible to receive funds under

28

Chapter 23 until the local government amends or repeals its

29

local ordinance in accordance with this chapter.

30

§ 3309.  Provisions of local ordinances.

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1

In order to allow for the reasonable development of oil and

2

gas resources, a local ordinance must, in addition to complying

3

with this chapter, Chapter 32 (relating to development), the MPC

4

and judicial decisions of the Commonwealth:

5

(1)  Allow well and pipeline location assessment

6

operations, including seismic operations and related

7

activities conducted in accordance with all applicable

8

Federal and State laws and regulations relating to the

9

storage and use of explosives throughout every local

10

government.

11

(2)  Impose conditions, requirements or limitations on

12

oil and gas operations that are no more stringent than

13

similar conditions, requirements or limitations imposed on

14

construction activities for other land development within the

15

zoning district where the oil and gas operations are

16

situated.

17

(3)  Impose conditions, requirements or limitations on

18

the height of permanent structures, setbacks from property

19

lines, screening and fencing, lighting and noise relating to

20

oil and gas operations that are no more stringent than

21

similar conditions, requirements or limitations imposed on

22

industrial uses or what is allowed within the particular

23

zoning district within the local government where the oil and

24

gas operations are situated or stipulated in or set forth in

25

State statute or regulations pertaining to oil and gas

26

operations.

27

(4)  Have a review period for permitted uses that does

28

not exceed 30 days for complete submissions or that exceeds

29

120 days for conditional uses.

30

(5)  Authorize oil and gas operations, other than

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1

activities in or at impoundment areas, compressor stations

2

and processing plants, as a permitted use in all zoning

3

districts.

4

(5.1)  Notwithstanding section 3215 (relating to well

5

location restrictions) the oil and gas operations under

6

paragraph (5) may be prohibited, or permitted only as a

7

conditional use within a residential district where a well

8

site cannot be placed so that the wellhead is at least 500

9

feet from any existing building. In a residential district,

10

all of the following apply:

11

(i)  A well site may not be located so that the outer

12

edge of the well pad is closer than 300 feet from an

13

existing building.

14

(ii)  Except as set forth in paragraph (5) and in

15

this paragraph, oil and gas operations, other than the

16

placement, use and repair of oil and gas pipelines, water

17

pipelines, access roads or security facilities, may not

18

take place within 300 feet of an existing building.

19

(6)  Authorize impoundment areas used for oil and gas

20

operations as a permitted use in all zoning districts,

21

provided that the edge of any impoundment area shall not be

22

located closer than 300 feet from an existing building.

23

(7)  Authorize natural gas compressor stations as a

24

permitted use in agriculture and industrial zoning districts

25

and as a conditional use in all other zoning districts, if

26

the natural gas compressor building meets the following

27

conditions:

28

(i)  is located 750 feet or more from the nearest

29

existing building or 200 feet from the nearest lot line,

30

whichever is greater, unless waived by the owner of the

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1

building or adjoining lot; and

2

(ii)  does not exceed a noise standard of 60dbA at

3

the nearest property line or the applicable standard

4

imposed by Federal law, whichever is lesser.

5

(8)  Authorize natural gas processing plants as a

6

permitted use in an industrial zoning district and as

7

conditional uses in agricultural zoning districts, if the

8

natural gas processing plant buildings meet the following

9

conditions:

10

(i)  Unless there is a waiver by the owner of the

11

building or adjoining lot, the natural gas processing

12

plant building is located at the greater of:

13

(A)  at least 750 feet from the nearest existing

14

building; or

15

(B)  at least 200 feet from the nearest lot line.

16

(ii)  The noise level of the natural gas processing

17

plant at the property line does not exceed the lesser of:

18

(A)  a noise standard of 60dbA; or

19

(B)  the applicable standard imposed by Federal

20

law.

21

(9)  Impose restrictions on vehicular access routes for

22

overweight vehicles only as authorized under 75 Pa.C.S.

23

(relating to vehicles) or the MPC.

24

(10)  Does not attempt to impose limits or conditions on

25

subterranean operations or hours of operation.

26

§ 3310.  Applicability.

27

This chapter shall apply to the enforcement of local

28

ordinances existing on the date of this section and to the

29

enactment or enforcement of local ordinances enacted on or after

30

the effective date of this chapter.

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1

Section 3.  The addition of 27 Pa.C.S. Ch. 33 Subch. B is a

2

continuation of the former act of December 15, 1955 (P.L.865,

3

No.256), entitled "An act requiring rents and royalties from oil

4

and gas leases of Commonwealth land to be placed in a special

5

fund to be used for conservation, recreation, dams and flood

6

control; authorizing the Secretary of Forests and Waters to

7

determine the need for and location of such projects and to

8

acquire the necessary land." The following apply:

9

(1)  Except as otherwise provided in 27 Pa.C.S. Ch. 33

10

Subch. B, all activities initiated under the former act of

11

December 15, 1955 (P.L.865, No.256) shall continue and remain

12

in full force and effect and may be completed under 27

13

Pa.C.S. Ch. 33 Subch. B. Resolutions, orders, regulations,

14

rules and decisions which were made under the former act of

15

December 15, 1955 (P.L.865, No.256) and which are in effect

16

on the effective date of this section shall remain in full

17

force and effect until revoked, vacated or modified under 27

18

Pa.C.S. Ch. 33 Subch. B. Contracts, obligations and

19

agreements entered into under the former act of December 15,

20

1955 (P.L.865, No.256) are not affected nor impaired by the

21

repeal of the former act of December 15, 1955 (P.L.865,

22

No.256).

23

(2)  Except as set forth in paragraph (3), any difference

24

in language between 27 Pa.C.S. Ch. 33 Subch. B and the former

25

act of December 15, 1955 (P.L.865, No.256) is intended only

26

to conform to the style of the Pennsylvania Consolidated

27

Statutes and is not intended to change or affect the

28

legislative intent, judicial construction or administrative

29

interpretation and implementation of the former act of

30

December 15, 1955 (P.L.865, No.256).

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1

(3)  Paragraph (2) does not apply to 27 Pa.C.S. §§ 3301,

2

3302(b)(3) and 3305.

3

Section 4.  Repeals are as follows:

4

(1)  The General Assembly declares that the repeal under

5

paragraph (2) is necessary to effectuate the addition of 27

6

Pa.C.S. Ch. 33.

7

(2)  The act of December 15, 1955 (P.L.865, No.256),

8

entitled "An act requiring rents and royalties from oil and

9

gas leases of Commonwealth land to be placed in a special

10

fund to be used for conservation, recreation, dams, and flood

11

control; authorizing the Secretary of Forests and Waters to

12

determine the need for and location of such projects and to

13

acquire the necessary land," is repealed.

14

(3)  The General Assembly declares that the repeal under

15

paragraph (4) is necessary to effectuate the addition of 58

16

Pa.C.S. Ch. 32.

17

(4)  The act of December 19, 1984 (P.L.1140, No.223),

18

known as the Oil and Gas Act, is repealed.

19

Section 5.  The addition of 58 Pa.C.S. Ch. 32 is a

20

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

21

known as the Oil and Gas Act. The following apply:

22

(1)  Except as otherwise provided in 58 Pa.C.S. Ch. 32,

23

all activities initiated under the Oil and Gas Act shall

24

continue and remain in full force and effect and may be

25

completed under 58 Pa.C.S. Ch. 32. Orders, regulations, rules

26

and decisions which were made under the Oil and Gas Act and

27

which are in effect on the effective date of section 2(2) of

28

this act shall remain in full force and effect until revoked,

29

vacated or modified under 58 Pa.C.S. Ch. 32. Contracts,

30

obligations and collective bargaining agreements entered into

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1

under the Oil and Gas Act are not affected nor impaired by

2

the repeal of the Oil and Gas Act.

3

(2)  Except as set forth in paragraph (3), any difference

4

in language between 58 Pa.C.S. Ch. 32 and the Oil and Gas Act

5

is intended only to conform to the style of the Pennsylvania

6

Consolidated Statutes and is not intended to change or affect

7

the legislative intent, judicial construction or

8

administration and implementation of the Oil and Gas Act.

9

(3)  Paragraph (2) does not apply to the addition of 58

10

Pa.C.S. §§ 3203, 3211, 3212.1, 3215, 3215.1, 3216, 3218,

11

3219.1, 3222, 3225, 3227, 3252, 3253, 3254.1, 3256, 3258,

12

3262, 3272 and 3274.

13

(4)  It is not the intent of the General Assembly to

14

change, repeal or otherwise affect any of the provisions of

15

the act of December 18, 1984 (P.L. 1069, No. 214), known as

16

the Coal and Gas Resource Coordination Act, or to change,

17

repeal or otherwise affect any of the provisions of the act

18

of January 26, 2011 (P.L.7, No.2), entitled "An act amending

19

the act of December 18, 1984 (P.L.1069, No.214), entitled 'An

20

act requiring coordination of coal mine and gas well

21

operators; authorizing Department of Environmental Resources

22

enforcement powers; and providing penalties,' further

23

providing for definitions, for permits, for permit

24

application, for minimum distance between gas wells, for well

25

class designation and for coordination of gas well drilling

26

through active coal mines; providing for a pillar support

27

study; and further providing for plugging gas wells

28

penetrating workable coal seams, for penalties and for

29

validity of other laws," which amended the Coal and Gas

30

Resource Coordination Act.

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1

Section 5.1.  The addition of 58 Pa.C.S. § 3215(g)(2) shall

2

expire three years after the effective date of this act.

3

Section 6.  This act shall take effect in 60 days.

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