SENATE AMENDED

 

PRIOR PRINTER'S NOS. 2689, 2765, 2777

PRINTER'S NO.  2837

  

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

  

  

SENATOR M. WHITE, ENVIRONMENTAL RESOURCES AND ENERGY, IN SENATE, AS AMENDED, DECEMBER 7, 2011   

  

  

  

AN ACT

  

1

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

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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

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

22

additions; providing for local ordinances relating to oil and

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

Amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated

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27

Statutes, consolidating the Oil and Gas Act with

28

modifications relating to definitions, well permits, well

29

location restrictions, protection of water supplies, well

30

reporting requirements, bonding, enforcement orders,

 


1

penalties, civil penalties and local ordinances; providing

2

for containment, for transportation regulations, for

3

emergency response information, for notification to public

4

drinking water systems, for corrosion control requirements,

5

for gathering lines and for model ordinance; providing for

6

local ordinances relating to oil and gas operations; and

7

making a related repeal.

8

The General Assembly of the Commonwealth of Pennsylvania

9

hereby enacts as follows:

10

Section 1.  Title 27 of the Pennsylvania Consolidated

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11

Statutes is amended by adding chapters to read:

12

CHAPTER 33

13

OIL AND GAS

14

Subchapter

15

A.  (Reserved)

16

B.  Oil and Gas Lease Fund

17

c.  keystone transit

18

d.  clean transit

19

SUBCHAPTER A

20

(RESERVED)

21

SUBCHAPTER B

22

OIL AND GAS LEASE FUND

23

Sec.

24

3301.  Definitions.

25

3302.  Oil and Gas Lease Fund.

26

3303.  Powers and duties of secretary.

27

3304.  Appropriation of moneys.

28

3305.  Interfund transfers.

29

§ 3301.  Definitions.

30

The following words and phrases when used in this chapter

31

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

32

context clearly indicates otherwise:

33

"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  before, on or after the effective date of this

10

section.

11

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

12

cover a period of natural gas production which occurred prior to

13

the effective date of the ordinance.

14

§ 3504.  (Reserved).

15

§ 3505.  (Reserved).

16

§ 3506.  Administration.

17

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

18

ordinance imposing a fee under this chapter and each April 1

19

thereafter, each operator shall submit a report and payment of

20

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

21

for the previous calendar year. The report shall include the

22

following:

23

(1)  The number of unconventional gas wells of an

24

operator in each municipality within the county.

25

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

26

severed by the operator for each unconventional gas well

27

identified under paragraph (1) during the previous calendar

28

year.

29

(3)  The date that each unconventional gas well

30

identified under paragraph (1) began or ceased the production

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1

of natural gas.

2

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

3

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

4

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

5

become delinquent if not remitted to the county on the reporting

6

date.

7

(c)  Public availability.--A report under this section shall

8

be a public record under the act of February 14, 2008 (P.L.6,

9

No.3), known as the Right-to-Know Law.

10

§ 3506.1.  Well information.

11

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

12

county with a list of all unconventional gas wells that have

13

received a well permit from the department issued under this

14

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

15

of providing the list to each county, the department may

16

maintain a list on its publicly accessible Internet website if

17

the list is updated on a monthly basis.

18

(b)  Updates.--An operator shall notify the county within 30

19

days from the date the unconventional gas well began or ceased

20

the production of natural gas.

21

§ 3506.2.  Payment confirmation.

22

Prior to issuing a permit to drill an unconventional gas well

23

in this Commonwealth, the department shall require the permit

24

applicant to certify in its well permit application that the  

25

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

26

The department may deny a well permit application if it finds

27

that the operator falsified this certification.

28

§ 3506.3.  County authority.

29

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

30

determinations necessary to calculate and collect a fee imposed

- 17 -

 


1

under this chapter, including, if applicable, interest and

2

penalties.

3

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

4

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

5

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

6

basis for the determination.

7

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

8

be sent to the operator at its registered address via certified

9

mail.

10

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

11

paid under this chapter within three years after the date the

12

report under this chapter is filed.

13

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

14

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

15

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

16

§ 3506.4.  Enforcement.

17

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

18

delinquent fee imposed under this chapter at the rate prescribed

19

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

20

known as The Fiscal Code.

21

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

22

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

23

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

24

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

25

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

26

the aggregate.

27

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

28

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

29

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

30

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

- 18 -

 


1

the operator has not provided a complete and accurate statement

2

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

3

the county may estimate the volume in its deficiency notice.

4

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

5

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

6

equity.

7

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

8

collectible in the manner provided by law for the collection of

9

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

10

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

11

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

12

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

13

been entered and docketed of record by the prothonotary of the

14

county where the property is situated.

15

§ 3506.5.  Examinations.

16

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

17

chapter, or its authorized agents or representatives, shall:

18

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

19

operator in order to verify the accuracy and completeness of

20

a report filed or fee paid under this chapter.

21

(2)  Require and compel the preservation and production

22

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

23

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

24

to which the records relate.

25

(3)  Examine any employee of an operator concerning the

26

severing of natural gas subject to a fee or any matter

27

relating to the enforcement of this chapter.

28

(b)  Unauthorized disclosure.--

29

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

30

any report, examination, investigation or hearing under this

- 19 -

 


1

section shall be confidential and shall be exempt from

2

disclosure under the provisions of the act of February 14,

3

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

4

not be disclosed except in accordance with judicial order or

5

as otherwise provided by law.

6

(2)  An individual unlawfully divulging the information

7

described under this subsection commits a misdemeanor and

8

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

9

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

10

for not more than one year, or both.

11

§ 3507.  Deposit of fees.

12

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

13

chapter shall establish an interest-bearing account designed

14

solely for fees.

15

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

16

under this chapter shall be deposited into the account described

17

under subsection (a).

18

§ 3508.  Allocation and distribution of fees.

19

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

20

established under section 3507 (relating to deposit of fees)

21

shall be allocated as follows:

22

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

23

to the county and its municipalities in the manner provided

24

under subsection (b).

25

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

26

to the Commonwealth and distributed in the manner provided

27

under subsections (c) and (d).

28

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

29

fees allocated to the county and its municipalities under

30

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

- 20 -

 


1

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

2

the county where the producing unconventional gas wells are

3

located.

4

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

5

distributed to the municipalities where producing

6

unconventional gas wells are located. The amount for each

7

municipality shall be determined using a formula that divides

8

the number of producing unconventional gas wells in the

9

municipality by the number of producing unconventional gas

10

wells in the county and multiplies the resulting percentage

11

by the amount available for distribution under this

12

subparagraph.

13

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

14

distributed to all municipalities in the county where

15

producing unconventional gas wells are located as follows:

16

(i)  Fifty percent shall be distributed to all

17

municipalities using a formula that divides the

18

population of the municipality within the county by the

19

total population of the county and multiplies the

20

resulting percentage by the amount available for

21

distribution to the county under this subparagraph.

22

(ii)  Fifty percent shall be distributed to each

23

municipality using a formula that divides the highway

24

mileage of the municipality within the county by the

25

total highway mileage of the county and multiplies the

26

resulting percentage by the amount available for

27

distribution to the county under this subparagraph.

28

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

29

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

30

remitted to the Commonwealth for deposit into a restricted

- 21 -

 


1

account in the General Fund of the Commonwealth dedicated solely

2

for fees. The funds are hereby appropriated and shall be

3

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

4

(1)  Seventy percent to the Department of Transportation

5

for road, bridge, rail and other transportation

6

infrastructure improvements to address impacts from

7

unconventional natural gas development.

8

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

9

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

10

unconventional gas wells and the plugging of abandoned and

11

orphan gas wells within the Commonwealth.

12

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

13

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

14

enhancement, inspection and enforcement of pipeline safety

15

standards as required by law related to the safe transport of

16

gas and hazardous liquids.

17

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

18

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

19

annually, for emergency response planning, training and

20

coordination associated with unconventional natural gas

21

production activity within the Commonwealth.

22

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

23

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

24

and disseminating information, preparing and conducting

25

health care provider outreach and education and investigating

26

health-related complaints and other uses associated with

27

unconventional natural gas production activity within this

28

Commonwealth.

29

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

30

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

- 22 -

 


1

for the development, delivery and sustainment of training

2

programs for first responders and acquisition of specialized

3

equipment necessary for emergency response.

4

(d)  Additional distribution of fees to Department of

5

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

6

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

7

remaining in the restricted account after distribution of fees

8

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

9

appropriated shall be distributed to the Department of

10

Transportation.

11

(e)  Continuing nature.--

12

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

13

shall be executive authorizations.

14

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

15

shall be continuing appropriations. Those appropriations

16

shall not lapse at the end of any fiscal year.

17

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

18

fees authorized under this chapter within 45 days after the date

19

the fees are received.

20

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

21

or municipality receiving fees under this section shall make use

22

of the fees received only for the following purposes associated

23

with unconventional natural gas production within the county or

24

municipality:

25

(1)  Construction, reconstruction, maintenance and repair

26

of roadways, bridges and public infrastructure.

27

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

28

construction, reconstruction, maintenance and repair.

29

(3)  Emergency preparedness and response, including

30

police, fire, hazardous material response, 911, equipment

- 23 -

 


1

acquisition, responder recruitment and other services.

2

(4)  Preservation and reclamation of surface and

3

subsurface waters and water supplies, including drinking

4

water monitoring and testing.

5

(5)  Records management, geographic information systems

6

and information technology.

7

(6)  Projects that increase the availability of

8

affordable housing, either for sale or rental, to residents

9

whose annual income is less than the area median income.

10

(7)  Delivery of social services, including domestic

11

relations, drug and alcohol treatment, job training and

12

counseling.

13

(8)  Assistance to the county conservation district for

14

inspection, oversight and enforcement of unconventional

15

natural gas development.

16

(9)  County or municipal planning.

17

(10)  Local tax reduction.

18

(11)  Career and technical centers for training of

19

workers in the oil and gas industry.

20

§ 3509.  Calculation of payments.

21

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

22

imposes and collects the unconventional gas well impact fee

23

shall certify the number of all unconventional gas wells located

24

within each municipality of the county based upon the

25

appropriate reports provided by the department.

26

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

27

county that imposes and collects the unconventional gas well

28

impact fee shall pay to municipalities the amounts required

29

under this subchapter.

30

§ 3510.  Recordkeeping and State reporting.

- 24 -

 


1

(a)  General rule.--Commencing in calendar year  2013 and

2

each year thereafter, before December 1, each county that

3

imposes and collects the unconventional gas well impact fee

4

authorized by this subchapter shall prepare and deliver a report

5

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

6

of Representatives detailing the expenditure of the funds

7

collected under this subchapter.

8

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

9

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

10

of the funds.

11

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

12

receives the funds shall make its financial records and other

13

documents relating to its expenditure of the funds available to

14

the department.

15

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

16

of the year following the initial receipt of any fees

17

distributed under this section and each June 30 thereafter.

18

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

19

municipality's publicly accessible Internet website. If a

20

municipality does not maintain a publicly accessible Internet

21

website, the municipality shall provide its report to the

22

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

23

county's publicly accessible Internet website.

24

§ 3511.  Expiration.

25

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

26

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

27

unconventional gas well producing gas in this Commonwealth,

28

submit for publication in the Pennsylvania Bulletin notice of

29

that fact.

30

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

- 25 -

 


1

publication of the notice under subsection (a).

2

SUBCHAPTER B

3

(RESERVED)

4

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

5

PART I

6

PRELIMINARY PROVISIONS

7

(RESERVED)

8

PART II

9

(RESERVED)

10

PART III

11

UTILIZATION

12

Chapter

13

31.  (Reserved)

14

32.  Development

15

CHAPTER 31

16

(RESERVED)

17

CHAPTER 32

18

DEVELOPMENT

19

Subchapter

20

A.  Preliminary Provisions

21

B.  General Requirements

22

C.  Underground Gas Storage

23

D.  Eminent Domain

24

E.  Enforcement and Remedies

25

F.  Miscellaneous Provisions

26

SUBCHAPTER A

27

PRELIMINARY PROVISIONS

28

Sec.

29

3201.  Scope of chapter.

30

3202.  Declaration of purpose.

- 26 -

 


1

3203.  Definitions.

2

§ 3201.  Scope of chapter.

3

This chapter relates to oil and gas.

4

§ 3202.  Declaration of purpose.

5

The purposes of this chapter are to:

6

(1)  Permit optimal development of oil and gas resources

7

of this Commonwealth consistent with protection of the

8

health, safety, environment and property of Pennsylvania

9

citizens.

10

(2)  Protect the safety of personnel and facilities

11

employed in coal mining or exploration, development, storage

12

and production of natural gas or oil.

13

(3)  Protect the safety and property rights of persons

14

residing in areas where mining, exploration, development,

15

storage or production occurs.

16

(4)  Protect the natural resources, environmental rights

17

and values secured by the Constitution of Pennsylvania.

18

§ 3203.  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

"Abandoned well."  Any of the following:

23

(1)  A well:

24

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

25

inject any gas, petroleum or other liquid within the

26

preceding 12 months;

27

(ii)  for which equipment necessary for production,

28

extraction or injection has been removed; or

29

(iii)  considered dry and not equipped for production

30

within 60 days after drilling, redrilling or deepening.

- 27 -

 


1

(2)  The term does not include wells granted inactive

2

status.

3

"Alteration."  An operation which changes the physical

4

characteristics of a well bore, including stimulation or

5

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

6

this chapter only, the term does not include:

7

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

8

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

9

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

10

complies with regulations promulgated under this chapter,

11

except that this exclusion does not apply:

12

(i)  to production casings in coal areas when the

13

production casings are also the coal protection casings;

14

or

15

(ii)  when the method of repairing or replacing the

16

casing would affect the coal protection casing.

17

(2)  Stimulation of a well.

18

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

19

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

20

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

21

which persons live or customarily work.

22

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

23

wells drilled for natural gas or petroleum.

24

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

25

(1)  Hydraulic cement properly mixed with water only.

26

(2)  A mixture of materials adequate for bonding or

27

sealing of well bores as approved by regulations promulgated

28

under this chapter.

29

"Coal mine."  Any of the following:

30

(1)  Operations in a coal seam, including excavated

- 28 -

 


1

portions, abandoned portions and places actually being

2

worked.

3

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

4

other ways and openings, including those which are in the

5

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

6

facilities connected with them below the surface.

7

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

8

operate a coal mine as an owner or lessee.

9

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

10

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

11

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

12

"Department."  The Department of Environmental Protection of

13

the Commonwealth.

14

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

15

deepening of an existing well.

16

"Environmental law."  Any of the following:

17

(1)  A Federal statute pertaining to oil and gas

18

operations, public health, safety, natural resources or the

19

environment.

20

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

21

agency interpretation or guidance pertaining to oil and gas

22

operations, public health, safety, natural resources or the

23

environment.

24

(3)  A Federal judicial decision pertaining to oil and

25

gas operations, public health, safety, natural resources or

26

the environment.

27

(4)  A Commonwealth statute pertaining to oil and gas

28

operations, public health, safety, natural resources or the

29

environment. The term includes any of the following:

30

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

- 29 -

 


1

known as The Clean Streams Law.

2

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

3

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

4

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

5

known as the Delaware River Basin Compact.

6

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

7

known as the Oil and Gas Conservation Law.

8

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

9

referred to as the Susquehanna River Basin Compact Law.

10

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

11

known as the Storm Water Management Act.

12

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

13

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

14

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

15

known as the Solid Waste Management Act.

16

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

17

known as the Wild Resource Conservation Act.

18

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

19

as the Pennsylvania Safe Drinking Water Act.

20

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

21

known as the Radiation Protection Act.

22

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

23

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

24

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

25

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

26

Act.

27

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

28

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

29

and Reclamation Act.

30

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

- 30 -

 


1

known as the Hazardous Sites Cleanup Act.

2

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

3

known as the Storage Tank and Spill Prevention Act.

4

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

5

No.165), known as the Hazardous Material Emergency

6

Planning and Response Act.

7

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

8

as the Land Recycling and Environmental Remediation

9

Standards Act.

10

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

11

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

12

Resources Compact.

13

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

14

to water resources planning)

15

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

16

to environmental laboratory accreditation).

17

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

18

to waste transportation safety).

19

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

20

fish).

21

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

22

game).

23

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

24

interpretation or guidance of a Commonwealth agency

25

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

26

natural resources or the environment.

27

(6)  A decision of a court of this Commonwealth

28

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

29

natural resources or the environment.

30

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

- 31 -

 


1

recognized hydrologic cycle which occupies the pore spaces and

2

fractures of saturated subsurface materials.

3

"Gas."  Any of the following:

4

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

5

produced in a natural state from the earth and maintains a

6

gaseous or rarified state at standard temperature of 60

7

degrees Fahrenheit and pressure 14.7 PSIA.

8

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

9

gases or natural gas liquids.

10

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

11

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

12

device or by injecting bentonitic mud or other equally nonporous

13

material into the well.

14

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

15

horizontal plane.

16

"Oil."  Hydrocarbons in liquid form at standard temperature

17

of 60 degrees Fahrenheit and pressure 14.7 PSIA, also referred

18

to as petroleum.

19

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

20

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

21

the conduct of seismic operations.

22

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

23

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

24

wells.

25

(4)  Generation, processing, treatment, storage,

26

transportation and disposal of fresh water, wastewater,

27

wastes, chemicals and other materials directly associated

28

with drilling, stimulation and completion of oil and gas

29

wells.

30

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

- 32 -

 


1

(6)  Compression, transportation, processing, measurement

2

and storage of oil or gas.

3

(7)  Reclamation activities.

4

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

5

This paragraph includes equipment directly related to the

6

activities set forth in this paragraph.

7

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

8

drilling pads, impoundments, compression stations, processing

9

stations, meter stations and storage tanks. This paragraph

10

includes buildings, facilities or structures, which are

11

directly related to the activities set forth in this

12

paragraph. This paragraph does not include ancillary support,

13

supply and service facilities, the location of which is not

14

dependent on the location of specific wells or pipelines.

15

"Operating coal mine."  Any of the following:

16

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

17

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

18

months immediately preceding the date its status is put in

19

question, including contiguous worked-out or abandoned coal

20

mines to which it is connected underground.

21

(2)  An underground coal mine to be established or

22

reestablished under paragraph (1).

23

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

24

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

25

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

26

operator and from which the present owner, operator or lessee

27

has received no economic benefit other than as a landowner or

28

recipient of a royalty interest from the well.

29

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

30

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

- 33 -

 


1

assigned to the coal mine under an underground mine permit

2

issued by the Department of Environmental Protection.

3

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

4

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

5

orphan wells, except where the Department of Environmental

6

Protection determines a prior owner or operator benefited from

7

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

8

requirements).

9

"Person."  An individual, association, partnership,

10

corporation, political subdivision or agency of the Federal

11

Government, State government or other legal entity.

12

"Petroleum."  Hydrocarbons in liquid form at standard

13

temperature of 60 degrees Fahrenheit and pressure 14.7 PSIA,

14

also referred to as oil.

15

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

16

mine workings or a mined-out area.

17

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

18

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

19

"Reservoir protective area."  The area surrounding a storage

20

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

21

reservoir boundary, unless an alternate area has been designated

22

by the Department of Environmental Protection, which is deemed

23

reasonably necessary to afford protection to the reservoir,

24

under a conference held in accordance with section 3251

25

(relating to conferences).

26

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

27

remaining after development mining has been completed in that

28

section of a coal mine.

29

"Secretary."  The Secretary of Environmental Protection of

30

the Commonwealth.

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1

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

2

operate a storage reservoir as an owner or lessee.

3

"Storage reservoir."  That portion of a subsurface geological

4

stratum into which gas is or may be injected for storage

5

purposes or to test suitability of the stratum for storage.

6

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

7

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

8

geological shale formation existing below the base of the Elk

9

Sandstone or its geologic equivalent stratigraphic interval

10

where oil or gas generally cannot be produced at economic flow

11

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

12

(1)  Vertical or horizontal well bores stimulated by

13

hydraulic fracture treatments.

14

(2)  Using multilateral well bores or other techniques to

15

expose more of the formation of the well bore.

16

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

17

completing a well in an unconventional formation that

18

demonstrates that the withdrawal and use of water sources

19

protects those sources as required by law and protects public

20

health, safety and welfare.

21

"Water purveyor."  Any of the following:

22

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

23

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

24

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

25

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

26

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

27

"Water source."

28

(1)  Any of the following:

29

(i)  Waters of this Commonwealth.

30

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

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1

purveyor.

2

(iii)  Mine pools and discharges.

3

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

4

completing a well in an unconventional formation.

5

(2)  The term does not include flowback or production

6

waters or other fluids:

7

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

8

in an unconventional formation; and

9

(ii)  which do not discharge into waters of this

10

Commonwealth.

11

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

12

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

13

petroleum or another liquid related to oil or gas production or

14

storage, including brine disposal, but excluding a bore hole

15

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

16

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

17

used for:

18

(1)  Systems of monitoring, producing or extracting gas

19

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

20

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

21

known as the Solid Waste Management Act, which does not

22

penetrate a workable coal seam.

23

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

24

(i)  used to vent methane to the outside atmosphere

25

from an operating coal mine; regulated as part of the

26

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

27

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

28

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

29

Mining Conservation and Reclamation Act; and drilled by

30

the operator of the operating coal mine for the purpose

- 36 -

 


1

of increased safety; or

2

(ii)  used to vent methane to the outside atmosphere

3

under a federally funded or State-funded abandoned mine

4

reclamation project.

5

"Well control emergency."  An incident during drilling,

6

operation, workover or completion that, as determined by the

7

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

8

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

9

blowout, fire and explosion.

10

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

11

a well control emergency with a current certification from a

12

well control course accredited by the International Association

13

of Drilling Contractors or other organization approved by the

14

department.

15

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

16

(1)  The person designated as operator or well operator

17

on the permit application or well registration.

18

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

19

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

20

or reconditions a well with the purpose of production from

21

the well.

22

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

23

storage of gas, a storage operator.

24

"Wetland."  Areas inundated or saturated by surface or

25

groundwater at a frequency and duration sufficient to support,

26

and which normally support, a prevalence of vegetation typically

27

adapted for life in saturated soil conditions, including swamps,

28

marshes, bogs and similar areas.

29

"Workable coal seams."  A coal seam which:

30

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

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1

under this chapter by underground methods; or

2

(2)  in the judgment of the Department of Environmental

3

Protection, can reasonably be expected to be mined by

4

underground methods.

5

SUBCHAPTER B

6

GENERAL REQUIREMENTS

7

Sec.

8

3211.  Well permits.

9

3212.  Permit objections.

10

3212.1.  Comments by municipalities.

11

3213.  Well registration and identification.

12

3214.  Inactive status.

13

3215.  Well location restrictions.

14

3215.1.  General restrictions.

15

3216.  Well site restoration.

16

3217.  Protection of fresh groundwater and casing requirements.

17

3218.  Protection of water supplies.

18

3219.  Use of safety devices.

19

3219.1.  Well control emergency response.

20

3220.  Plugging requirements.

21

3221.  Alternative methods.

22

3222.  Well reporting requirements.

23

3223.  Notification and effect of well transfer.

24

3224.  Coal operator responsibilities.

25

3225.  Bonding.

26

3226.  Oil and Gas Technical Advisory Board.

27

3227.  AIR CONTAINMENT EMISSIONS.

28

§ 3211.  Well permits.

29

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

30

except for alterations which satisfy the requirements of

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1

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

2

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

3

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

4

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

5

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

6

permit to redrill a nonproducing well if the redrilling:

7

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

8

from the department authorizing cleaning out and plugging or

9

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

10

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

11

and Gas Resource Coordination Act; and

12

(2)  is incidental to a plugging or replugging operation

13

and the well is plugged within 15 days of redrilling.

14

(b)  Plat.--

15

(1)  The permit application shall be accompanied by a

16

plat prepared by a competent engineer or a competent

17

surveyor, on forms furnished by the department, showing the

18

political subdivision and county in which the tract of land

19

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

20

municipalities adjacent to the well site; the name of the

21

surface landowner of record and lessor; the name of all

22

surface landowners and water purveyors whose water supplies

23

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

24

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

25

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

26

operator of all known underlying workable coal seams; the

27

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

28

the well determined by survey, courses and distances of the

29

location from two or more permanent identifiable points or

30

landmarks on the tract boundary corners; the proposed angle

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1

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

2

substantially from a vertical course; the number or other

3

identification to be given the well; the workable coal seams

4

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

5

drilled or altered and which shall be cased off under section

6

3217 (relating to protection of fresh groundwater and casing

7

requirements); and any other information needed by the

8

department to administer this chapter.

9

(2)  no later than 30 days prior to submitting the

10

application required in subsection (a), the applicant shall

11

forward by certified mail a copy of the plat to the surface

12

landowner; the municipality in which the tract of land upon

13

which the well to be drilled is located; the municipalities

14

adjacent to the well; all surface landowners and water

15

purveyors, whose water supplies are within 1,000 feet of the

16

proposed well location or, in the case of an unconventional

17

well, within 2,500 feet of the proposed well location; the

18

owner and lessee of any coal seams; and each coal operator

19

required to be identified on the well permit application.

20

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

21

notification with the well permit application. Notification of

22

surface owners shall be performed by sending notice to those

23

persons to whom the tax notices for the surface property are

24

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

25

which the property is located. Notification of surface

26

landowners or water purveyors whose water supplies are within

27

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

28

in a manner prescribed by the department, sufficient to identify

29

the rights afforded those persons under section 3218 (relating

30

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

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1

advantages of taking their own predrilling or prealteration

2

survey.

3

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

4

written approval of the proposed well location by the surface

5

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

6

underlying the proposed well location and no objections are

7

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

8

approval has been submitted and no objections are made to the

9

proposed well location within 15 days from receipt of notice by

10

the department, the surface landowner or any coal operator,

11

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

12

a permanent record of the well location, subject to inspection

13

at any time by any interested person.

14

(c)  Applicants.--If the applicant for a well permit is a

15

corporation, partnership or person that is not a resident of

16

this Commonwealth, the applicant shall designate the name and

17

address of an agent for the operator who shall be the attorney-

18

in-fact for the operator and who shall be a resident of this

19

Commonwealth upon whom notices, orders or other communications

20

issued under this chapter may be served and upon whom process

21

may be served. Each well operator required to designate an agent

22

under this section shall, within five days after termination of

23

the designation, notify the department of the termination and

24

designate a new agent.

25

(d)  Permit fee.--Each application for a well permit shall be

26

accompanied by a permit fee, established by regulation of the

27

department, which bears a reasonable relationship to the cost of

28

administering this chapter.

29

(e)  Issuance of permit.--The department shall issue a permit

30

within 45 days of submission of a permit application unless the

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1

department denies the permit application for one or more of the

2

reasons set forth in subsection (e.1), except that the

3

department shall have the right to extend the period for 15 days

4

for cause shown upon notification to the applicant of the

5

reasons for the extension. The department may impose permit

6

terms and conditions necessary to assure compliance with this

7

chapter or other laws administered by the department.

8

(e.1)  Denial of permit.--The department may deny a permit

9

for any of the following reasons:

10

(1)  The well site for which a permit is requested is in

11

violation of any of this chapter or issuance of the permit

12

would result in a violation of this chapter or other

13

applicable law.

14

(2)  The permit application is incomplete.

15

(3)  Unresolved objections to the well location by coal

16

mine owner or operator remain.

17

(4)  The requirements of section 3225 (relating to

18

bonding) have not been met.

19

(5)  The department finds that the applicant, or any

20

parent or subsidiary corporation of the applicant, is in

21

continuing violation of this subchapter, any other statute

22

administered by the department, any rule or regulation

23

promulgated under this subchapter or a statute administered

24

by the department or any plan approval, permit or order of

25

the department, unless the violation is being corrected to

26

the satisfaction of the department. The right of the

27

department to deny a permit under this paragraph shall not

28

take effect until the department has taken a final action on

29

the violations and:

30

(i)  the applicant has not appealed the final

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1

action in accordance with the act of July 13, 1988

2

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

3

Board Act; or

4

(ii)  if an appeal has been filed, no supersedeas

5

has been issued.

6

(f)  Drilling.--

7

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

8

drill at the location shown on the plat after providing the

9

department, the surface landowner and the local political

10

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

11

notice of the date that drilling will commence.

12

(2)  The unconventional well operator shall provide the

13

department 24 hours' notice prior to cementing all casing

14

strings, conducting pressure tests of the production casing,

15

stimulation and abandoning or plugging an unconventional

16

well.

17

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

18

drilled as part of the same development project, only the

19

first well of the project need be located by survey.

20

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

21

a manner prescribed by regulation.

22

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

23

well operator shall notify the department and provide

24

reasonable notice of the date on which drilling will

25

commence.

26

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

27

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

28

operator encounters conditions of a nature which renders

29

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

30

more hazardous than usual, the well operator, upon verbal

- 43 -

 


1

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

2

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

3

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

4

location of the new bore hole does not violate section 3215

5

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

6

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

7

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

8

location complies with existing laws, regulations and spacing

9

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

10

nearest lease boundary.

11

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

12

hole, the well operator shall file with the department a

13

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

14

completion report, a plugging certificate for the original

15

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

16

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

17

amended plat to the surface landowner identified on the well

18

permit application within ten days of commencement of the new

19

well bore.

20

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

21

address and telephone number shall be conspicuously posted at

22

the drilling site prior to commencement of drilling.

23

(h)  Labeling.--The well operator shall install the permit

24

number issued by the department in a legible, visible and

25

permanent manner on the well upon completion.

26

(i)  Expiration.--Well permits issued for drilling wells

27

under this chapter shall expire one year after issuance unless

28

operations for drilling the well are commenced within the period

29

and pursued with due diligence or unless the permit is renewed

30

in accordance with regulations of the department. If drilling is

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1

commenced during the one-year period, the well permit shall

2

remain in force until the well is plugged in accordance with

3

section 3220 (relating to plugging requirements) or the permit

4

is revoked. A drilling permit issued prior to April 18, 1985,

5

for a well which is an operating well on April 18, 1985, shall

6

remain in force as a well permit until the well is plugged in

7

accordance with section 3220. Nothing in this subsection shall

8

be construed to rescind the provisions pertaining to drilling

9

permits contained in Chapter 34.

10

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

11

establish by regulation certain categories of alterations of

12

permitted or registered wells for which permitting requirements

13

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

14

proposes to conduct the alteration activity shall first obtain a

15

permit or registration modification from the department. The

16

Environmental Quality Board shall promulgate regulations as to

17

the requirements for modifications.

18

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

19

section or registration issued under section 3213 (relating to

20

well registration and identification) may be transferred without

21

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

22

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

23

the department. The department shall approve or deny a transfer

24

request within 45 days of receipt of a complete and accurate

25

application. The department may deny a request only for reasons

26

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

27

request shall permanently transfer responsibility to plug the

28

well under section 3220 to the recipient of the transferred

29

permit or registration.

30

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

- 45 -

 


1

establish by regulation requirements for the permitting and

2

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

3

conduct abandoned or orphan well operations shall first obtain a

4

permit to operate an abandoned or orphan well.

5

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

6

management:

7

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

8

sources within this Commonwealth for the drilling or

9

hydraulic fracture stimulation of any natural gas well

10

completed in an unconventional gas formation, whether on or

11

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

12

accordance with a water management plan approved by the

13

department.

14

(2)  The department shall review and approve water

15

management plans based upon a determination that the proposed

16

withdrawal, when operated in accordance with the proposed

17

withdrawal operating conditions set forth in the plan,

18

including conditions relating to quantity, withdrawal rate

19

and timing and any passby flow conditions, will:

20

(i)  not adversely affect the quantity or quality of

21

water available to other users of the same water sources;

22

(ii)  protect and maintain the designated and

23

existing uses of water sources; and

24

(iii)  not cause adverse impact to water quality in

25

the watershed considered as a whole.

26

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

27

presumed to be achieved if the proposed water withdrawal

28

has been approved by and is operated in accordance with

29

conditions established by the Susquehanna River Basin

30

Commission, the Delaware River Basin Commission or the

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1

Great Lakes Commission, as applicable.

2

(ii)  Notwithstanding subparagraph (i), the

3

department may establish additional requirements as

4

necessary to comply with the laws of this Commonwealth.

5

(4)  In addition to the requirements under paragraphs

6

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

7

management plan shall be a condition of any permit issued

8

under this chapter for the drilling or hydraulic fracture

9

stimulation of any natural gas well completed in an

10

unconventional formation and shall be deemed to satisfy the

11

laws of this Commonwealth.

12

§ 3212.  Permit objections.

13

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

14

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

15

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

16

surface landowner affected shall be notified of the intent to

17

drill and may file objections, in accordance with section 3251

18

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

19

location violates section 3215 (relating to well location

20

restrictions) or that information in the application is untrue

21

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

22

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

23

notice by the surface owner shall be presumed to have occurred

24

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

25

operator submits a copy of the certified mail receipt sent to

26

the surface owner and an affidavit certifying that the address

27

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

28

address listed in the assessment books in the county where the

29

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

30

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

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1

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

2

landowner is filed with the department and no objection is

3

raised by the department within 15 days of filing, the

4

department shall proceed to issue or deny the permit.

5

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

6

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

7

operating coal mine or a coal mine already projected and platted

8

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

9

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

10

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

11

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

12

operator affected may file objections under section 3251 to the

13

proposed location within 15 days of the receipt by the coal

14

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

15

alternative location at which the proposed well could be drilled

16

to overcome the objections shall be indicated. If no objection

17

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

18

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

19

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

20

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

21

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

22

the department shall proceed to issue or deny the permit.

23

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

24

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

25

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

26

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

27

to allow the parties to consider the objection and attempt to

28

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

29

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

30

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

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1

judgment of the department, the well can be safely drilled

2

without unduly interfering with or endangering the mine as

3

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

4

parties or determined by the department shall be indicated on

5

the plat on file with the department and become a permanent

6

record upon which the department shall proceed to issue or deny

7

the permit.

8

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

9

operations, the coal operator shall accurately locate the well

10

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

11

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

12

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

13

operator.

14

§ 3212.1.  Comments by municipalities.

15

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

16

upon which the unconventional well to be drilled is located may

17

submit written comments to the department describing local

18

conditions or circumstances which the municipality has

19

determined should be considered by the department in rendering

20

its determination on the unconventional well permit. A comment

21

under this subsection must be submitted to the department within

22

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

23

(relating to well permits). The municipality shall

24

simultaneously forward a copy of its comments to the permit

25

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

26

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

27

written response must be submitted to the department within ten

28

days of receipt of the comments of the municipality.

29

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

30

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

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1

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

2

restrictions).

3

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

4

this section shall not extend the time period for the issuance

5

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

6

chapter.

7

§ 3213.  Well registration and identification.

8

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

9

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

10

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

11

which no drilling permit has been issued by the department,

12

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

13

operator who registers under this subsection and a well owner or

14

operator who has previously registered a well under this chapter

15

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

16

property which the well owner or operator owns or leases and

17

request approval from the department for classification of the

18

well as an orphan well. Information regarding wells to be

19

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

20

manner prescribed by the department, and shall include:

21

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

22

the well operator is a corporation, partnership or person

23

nonresident of this Commonwealth, the name and address of an

24

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

25

other communications issued under this chapter may be served.

26

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

27

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

28

topographic map or any other location description sufficient

29

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

30

(3)  The approximate date of drilling and completing the

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1

well, its approximate depth and producing horizons, well

2

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

3

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

4

bonding or other evidence of financial security submitted by

5

the well operator and deemed appropriate by the department

6

and satisfying the requirements of section 3225 (relating to

7

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

8

financial security shall be required for identification of an

9

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

10

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

11

years to comply with the provisions of this paragraph.

12

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

13

registration fee of $250 for multiple well registration

14

applications submitted simultaneously. The registration fee

15

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

16

charged for identification of an orphan well.

17

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

18

operator or other person discovering an abandoned well on

19

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

20

other person shall identify it to the department within 60 days

21

of discovery and advise the department that he is seeking

22

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

23

required for identification.

24

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

25

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

26

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

27

The department may adopt and promulgate guidelines designed to

28

ensure a fair implementation of this section, recognizing the

29

practical difficulties of locating unpermitted wells and

30

complying with the reporting requirements of this chapter.

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1

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

2

shall install the registration number issued by the department

3

in a legible, conspicuous and permanent manner on the well

4

within 60 days of issuance.

5

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

6

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

7

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

8

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

9

control over, the drilling or extraction operation of the

10

abandoned well.

11

§ 3214.  Inactive status.

12

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

13

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

14

or registered well, if the following requirements are met:

15

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

16

damage to the producing zone or contamination of fresh water

17

or other natural resources or surface leakage of any

18

substance;

19

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

20

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

21

adequate to protect freshwater aquifers, unless the

22

department determines the well poses a threat to the health

23

and safety of persons or property or to the environment;

24

(3)  the operator anticipates construction of a pipeline

25

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

26

gas storage, approved disposal or other appropriate uses

27

related to oil and gas well production; and

28

(4)  the applicant satisfies the bonding requirements of

29

sections 3213 (relating to well registration and

30

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

- 52 -

 


1

the department may require additional financial security for

2

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

3

bonding under section 3225(d).

4

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

5

inactive status shall be responsible for monitoring the

6

mechanical integrity of the well to ensure that the requirements

7

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

8

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

9

prescribed by departmental regulations.

10

(c)  (Reserved).

11

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

12

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

13

3220 (relating to plugging requirements) or returned to active

14

status within five years of the date inactive status was

15

granted, unless the owner or operator applies for an extension

16

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

17

if the department determines that the owner or operator has

18

demonstrated ability to continue meeting the requirements of

19

this section and the owner or operator certifies that the well

20

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

21

owner or operator who has been granted inactive status for a

22

well which is returned to active status prior to expiration of

23

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

24

the department that the well has been returned to active status

25

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

26

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

27

operator may make application to return the well to inactive

28

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

29

basis if the department determines that the owner or operator

30

has demonstrated an ability to continue meeting the requirements

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1

of this section and the owner or operator certifies that the

2

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

3

The department shall approve or deny an application to extend a

4

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

5

within 60 days of receipt of the application, and the

6

application shall not be unreasonably denied. If the department

7

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

8

the inactive status shall continue until the department has made

9

a determination on the request. If the department denies an

10

application to extend the period of inactive status or to return

11

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

12

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

13

Environmental Hearing Board within 30 days of receipt of the

14

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

15

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

16

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

17

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

18

during the period of the appeal.

19

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

20

revoke inactive status and order immediate plugging of a well if

21

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

22

promulgated under this chapter or if the owner or operator

23

demonstrates inability to perform obligations under this chapter

24

or becomes financially insolvent, or upon receipt by the

25

department of notice of bankruptcy proceedings by the permittee.

26

§ 3215.  Well location restrictions.

27

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

28

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

29

horizontally from the vertical well bore to a building or water

30

well, existing when the copy of the plat is mailed as required

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1

by section 3211(b) (relating to well permits) without written

2

consent of the owner of the building or water well.

3

Unconventional gas wells may not be drilled within 1,000 feet

4

measured horizontally from the vertical well bore to any

5

existing water well, surface water intake, reservoir or other

6

water supply extraction point used by a water purveyor without

7

the written consent of the water purveyor. If consent is not

8

obtained and the distance restriction would deprive the owner of

9

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

10

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

11

be granted a variance from the distance restriction upon

12

submission of a plan identifying the additional measures,

13

facilities or practices as prescribed by the department to be

14

employed during well site construction, drilling and operations.

15

The variance, if granted, shall include additional terms and

16

conditions required by the department to ensure safety and

17

protection of affected persons and property, including

18

insurance, bonding, indemnification and technical requirements.

19

(b)  Limitation.--

20

(1)  No well may be drilled within 100 feet, or, in the

21

case of an unconventional well, 300 feet measured

22

horizontally from any solid blue lined stream as identified

23

on the most current 7 1/2 minute topographic quadrangle map

24

of the United States Geological Survey.

25

(2)  The edge of the disturbed area associated with any

26

unconventional well must maintain a 100-foot setback from the

27

edge of any solid blue lined stream as identified on the most

28

current 7 1/2 minute topographic quadrangle map of the United

29

States Geological Survey.

30

(3)  No unconventional well may be drilled within 300

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1

feet of any wetlands greater than one acre in size, and the

2

edge of the disturbed area must maintain a 100-foot setback

3

from the boundary of the wetlands.

4

(4)  The department shall waive the distance restrictions

5

upon submission of a plan identifying additional measures,

6

facilities or practices to be employed during well site

7

construction, drilling and operations. The waiver shall impose

8

permit conditions necessary to protect the waters of this

9

Commonwealth.

10

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

11

department shall consider impact of the proposed well on public

12

resources, including, but not limited to:

13

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

14

wildlife areas.

15

(2)  National or State scenic rivers.

16

(3)  National natural landmarks.

17

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

18

other critical communities.

19

(5)  Historical and archaeological sites listed on the

20

Federal or State list of historic places.

21

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

22

may consider the comments submitted under section 3212.1

23

(relating to comments by municipalities) in making a

24

determination on a well permit. Notwithstanding any other law,

25

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

26

review from the department's decision.

27

(e)  Regulation criteria.--The Environmental Quality Board

28

shall develop by regulation criteria:

29

(1)  For the department to utilize for conditioning a

30

well permit based on its impact to the public resources

- 56 -

 


1

identified under subsection (c) and for ensuring optimal

2

development of oil and gas resources and respecting property

3

rights of oil and gas owners.

4

(2)  For appeal to the Environmental Hearing Board of a

5

permit containing conditions imposed by the department. The

6

regulations shall also provide that the department has the

7

burden of proving by clear and convincing evidence that the

8

conditions were necessary to protect against a probable

9

harmful impact of the public resources.

10

(3)  For processes and procedures for the adjudication of

11

compensation claims of affected owners, if any conditions or

12

restrictions imposed by application of the criteria developed

13

under paragraph (1) deprive the owner of the oil and gas

14

rights, in part or in whole, of the right to produce or share

15

in the oil as gas underlying the surface tract or tracts

16

affected by imposition of any condition or conditions.

17

(f)  Floodplains.--

18

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

19

any floodplain if the well site will have:

20

(i)  a pit or impoundment containing drilling

21

cuttings, flowback water, produced water or hazardous

22

materials, chemicals or wastes within the floodplain; or

23

(ii)  a tank containing hazardous materials,

24

chemicals, condensate, wastes, flowback or produced water

25

within the floodway.

26

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

27

restriction waiver if the well site will have a tank

28

containing condensate, flowback or produced water within the

29

flood fringe unless all the tanks have adequate floodproofing

30

in accordance with the National Flood Insurance Program

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1

standards and accepted engineering practices.

2

(3)  The department may waive restrictions upon

3

submission of a plan that shall identify the additional

4

measures, facilities or practices to be employed during well

5

site construction, drilling and operations. The waiver, if

6

granted, shall impose permit conditions necessary to protect

7

the waters of this Commonwealth.

8

(4)  Best practices to ensure the protection of the

9

waters of this Commonwealth must be utilized for the storage

10

and handling of all water, chemicals, fuels, hazardous

11

materials or solid waste on a well site located in a

12

floodplain. The department may request that the well site

13

operator submit a plan for the storage and handling of

14

materials for approval by the department and may impose

15

conditions or amend permits to include permit conditions as

16

are necessary to protect the environment, public health and

17

safety.

18

(5)  Unless otherwise specified by the department, the

19

boundary of the floodplain shall be as indicated on maps and

20

flood insurance studies provided by the Federal Emergency

21

Management Agency. In an area where no Federal Emergency

22

Management Agency maps or studies have defined the boundary

23

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

24

contrary, the floodplain shall extend from:

25

(i)  any perennial stream up to 100 feet horizontally

26

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

27

(ii)  from any intermittent stream up to 50 feet

28

horizontally from the top of the bank of the intermittent

29

stream.

30

(g)  Existing wells and pads.--Subsections (a) and (b) shall

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1

not apply to any of the following:

2

(1)  A well for which a valid permit exists as of the

3

effective date of this subsection.

4

(2)  A well permit application submitted after the

5

effective date of this subsection for a well that will be

6

located on a wellpad upon which a well has been drilled under

7

a valid permit that was approved before the effective date of

8

this subsection.

9

§ 3215.1.  General restrictions.

10

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

11

at natural gas compressed stations, dehydration and processing

12

facilities and other central processing facilities to secure all

13

permanent buildings, facilities, structures and equipment and to

14

protect the public. Warning signs shall be placed on the

15

security fencing providing notice of potential dangers and

16

providing contact information in case of an emergency.

17

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

18

temporary operations, such as well drilling and completion

19

operations:

20

(1)  Except as provided under paragraph (2), temporary

21

security fencing shall be installed at the oil or gas well

22

site to secure all buildings, facilities, structures and

23

equipment at the site and to protect the public. Warning

24

signs shall be placed at the well site providing notice of

25

potential dangers and providing contact information in case

26

of an emergency.

27

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

28

well owner or operator may establish 24-hour security

29

staffing at the site and install a security gate at the

30

entrance of the access road to prevent unauthorized access.

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1

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

2

buildings, facilities and structures directly related to oil and

3

gas operations, either temporary or permanent, shall be directed

4

downward and inward toward the activity, to the extent

5

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

6

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

7

facility or structure.

8

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

9

comply with all applicable noise regulations promulgated by the

10

Federal Energy Regulatory Commission, except that the noise

11

level from permanent oil and gas operations may not exceed 60

12

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

13

oil and gas operations are being conducted. Any compressor

14

situate within 2,500 feet of a dwelling shall be in a soundproof

15

building such that the noise level immediately outside such

16

building does not exceed 60 dBA.

17

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

18

comply with each applicable environmental law governing the

19

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

20

discharge of gases, vapors and odors during oil and gas

21

operations may not unreasonably interfere with the comfortable

22

enjoyment of life or property.

23

(f)  Applicability.--This section shall only apply to

24

unconventional natural gas wells.

25

§ 3216.  Well site restoration.

26

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

27

shall restore the land surface within the area disturbed in

28

siting, drilling, completing and producing the well.

29

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

30

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

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1

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

2

erosion and sedimentation control measures shall be implemented

3

in accordance with an erosion and sedimentation control plan

4

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

5

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

6

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

7

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

8

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

9

used to contain produced fluids or industrial wastes and remove

10

all drilling supplies and equipment not needed for production.

11

Drilling supplies and equipment not needed for production may be

12

stored on the well site if express written consent of the

13

surface landowner is obtained.

14

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

15

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

16

all production or storage facilities, supplies and equipment and

17

restore the well site.

18

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

19

this chapter or in regulations promulgated under this chapter

20

shall also comply with all applicable provisions of The Clean

21

Streams Law.

22

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

23

as required in this chapter or regulations promulgated under

24

this chapter constitutes a violation of this chapter.

25

(g)  Extension.--

26

(1)  The restoration period may be extended by the

27

department for an additional period of time not to exceed two

28

years upon demonstration by the well owner or operator that:

29

(i)  the extension will result in less earth

30

disturbance, increased water reuse or more efficient

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1

development of the resources; or

2

(ii)  site restoration cannot be achieved due to

3

adverse weather conditions or a lack of essential fuel,

4

equipment or labor.

5

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

6

of the following:

7

(i)  Include a site restoration plan that shall

8

provide for:

9

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

10

to contain produced fluids or industrial wastes;

11

(B)  the removal of all drilling supplies and

12

equipment not needed for production;

13

(C)  the stabilization of the well site that

14

shall include interim postconstruction storm water

15

management best management practices; or

16

(D)  other measures to be employed to minimize

17

accelerated erosion and sedimentation in accordance

18

with The Clean Streams Law.

19

(ii)  Provide for returning the portions of the site

20

not occupied by production facilities or equipment to

21

approximate original contours and making them capable of

22

supporting the uses that existed prior to drilling the

23

well.

24

(3)  The department may condition an extension under this

25

subsection as is necessary in accordance with The Clean

26

Streams Law.

27

§ 3217.  Protection of fresh groundwater and casing

28

requirements.

29

(a)  General rule.--To aid in protection of fresh

30

groundwater, well operators shall control and dispose of brines

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1

produced from the drilling, alteration or operation of an oil or

2

gas well in a manner consistent with the act of June 22, 1937

3

(P.L.1987, No.394), known as The Clean Streams Law, or any rule

4

or regulation promulgated under The Clean Streams Law.

5

(b)  Casing.--To prevent migration of gas or fluids into

6

sources of fresh groundwater and pollution or diminution of

7

fresh groundwater, a string or strings of casing shall be run

8

and permanently cemented in each well drilled through the fresh

9

water-bearing strata to a depth and in a manner prescribed by

10

regulation by the department.

11

(c)  Procedure when coal has been removed.--If a well is

12

drilled at a location where coal has been removed from one or

13

more coal seams, the well shall be drilled and cased to prevent

14

migration of gas or fluids into the seam from which coal has

15

been removed in a manner prescribed by regulation of the

16

department. The department and the coal operator, owner or

17

lessee shall be given at least 72 hours' notice prior to

18

commencement of work protecting the mine.

19

(d)  Procedure when coal has not been removed.--If a well is

20

drilled at a location where the coal seam has not been removed,

21

the well shall be drilled to a depth and of a size sufficient to

22

permit placement of casing, packers in and vents on the hole at

23

the points and in the manner prescribed by regulation to exclude

24

gas or fluids from the coal seam, except gas or fluids found

25

naturally in the seam itself, and to enable monitoring the

26

integrity of the production casing.

27

§ 3218.  Protection of water supplies.

28

(a)  General rule.--In addition to the requirements of

29

subsection (c.1), a well operator who affects a public or

30

private water supply by pollution or diminution shall restore or

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1

replace the affected supply with an alternate source of water

2

adequate in quantity or quality for the purposes served by the

3

supply. The department shall ensure the restored or replaced

4

water supply meets the applicable water quality standards

5

consistent with the Safe Drinking Water Act (Public Law 93-523,

6

21 U.S.C. § 349 and 42 U.S.C. §§ 201 and 300f et seq.), the act

7

of May 1, 1984 (P.L.206, No.43), known as the Pennsylvania Safe

8

Drinking Water Act, and predrilling or alteration water quality

9

standards as determined by the department. The Environmental

10

Quality Board shall promulgate regulations necessary to meet the

11

requirements of this subsection.

12

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

13

water purveyor suffering pollution or diminution of a water

14

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

15

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

16

an investigation be conducted. Within ten days of notification,

17

the department shall investigate the claim and make a

18

determination within 45 days following notification. If the

19

department finds that the pollution or diminution was caused by

20

drilling, alteration or operation activities or if it presumes

21

the well operator responsible for pollution under subsection

22

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

23

necessary to assure compliance with subsection (a), including

24

orders requiring temporary replacement of a water supply where

25

it is determined that pollution or diminution may be of limited

26

duration.

27

(b.1)  Survey.--Upon a written request by any landowner

28

residing within 5,500 feet but farther than 2,500 feet of a

29

proposed gas well using hydraulic fracturing, the well permit

30

applicant shall conduct a predrilling or prealteration survey,

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1

using a facility or laboratory certified by the department, and

2

send a copy of the survey by certified mail to the requester. A

3

predrilling or prealteration survey shall provide at a minimum

4

the testing results for chemicals or chemical compounds known to

5

be commonly used for hydraulic fracturing, including all major

6

cations and anions, arsenic, benzene, toluene, ethylbenzene,

7

xylenes, manganese, dissolved methane, total dissolved solids,

8

chlorides, nutrients and radionuclides.

9

(b.2)  Telephone number.--The department shall establish a

10

single Statewide toll-free telephone number that persons may use

11

to report cases of water contamination. The Statewide toll-free

12

telephone number shall be provided in a conspicuous manner in

13

the notification required under section 201(b) and on the

14

department's Internet website.

15

(b.3)  Responses.--The department shall develop appropriate

16

administrative responses to calls received on the Statewide

17

toll-free number for water contamination.

18

(b.4)  Website.--The department shall establish a website

19

that lists the confirmed cases of water supply contamination

20

that result from hydraulic fracturing.

21

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

22

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

23

responsible for pollution of a water supply if:

24

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

25

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

26

or gas well; and

27

(ii)  the pollution occurred within six months after

28

completion of drilling or alteration of the oil or gas

29

well; or

30

(2)  in the case of an unconventional well:

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1

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

2

unconventional well; and

3

(ii)  the pollution occurred within 12 months of the

4

later of completion, drilling or alteration of the

5

unconventional well.

6

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

7

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

8

the following:

9

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

10

(i)  the pollution existed prior to the drilling or

11

alteration activity as determined by a predrilling or

12

prealteration survey;

13

(ii)  the landowner or water purveyor refused to

14

allow the operator access to conduct a predrilling or

15

prealteration survey;

16

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

17

the well;

18

(iv)  the pollution occurred more than six months

19

after completion of drilling or alteration activities;

20

and

21

(v)  the pollution occurred as the result of a cause

22

other than the drilling or alteration activity; or

23

(2)  in the case of an unconventional well:

24

(i)  the pollution existed prior to the drilling or

25

alteration activity as determined by a predrilling or

26

prealteration survey;

27

(ii)  the landowner or water purveyor refused to

28

allow the operator access to conduct a predrilling or

29

prealteration survey;

30

(iii)  the water supply is not within 2,500 feet of

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1

the well; and

2

(iv)  the pollution occurred more than 12 months

3

after completion of drilling or alteration activities.

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

(e.1)  Notice.--An operator must provide written notice to

12

the landowner or water purveyor indicating that the presumption

13

established under subsection (c) may be void if the landowner or

14

water purveyor refused to allow the operator access to conduct a

15

predrilling or prealteration survey.

16

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

17

prevent a landowner or water purveyor claiming pollution or

18

diminution of a water supply from seeking any other remedy at

19

law or in equity.

20

§ 3219.  Use of safety devices.

21

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

22

it with casings of sufficient strength, and other safety devices

23

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

24

department, and shall use every effort and endeavor effectively

25

to prevent blowouts, explosions and fires.

26

§ 3219.1.  Well control emergency response.

27

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

28

well control specialists in order to provide adequate emergency

29

response services in the event of a well control emergency.

30

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

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1

a well control specialist with which the department has entered

2

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

3

liability for actions taken in good faith to carry out its

4

contractual obligations.

5

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

6

damage arising from any of the following:

7

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

8

(2)  An intentional tort.

9

(3)  Gross negligence.

10

§ 3220.  Plugging requirements.

11

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

12

operator shall plug it in the manner prescribed by regulation of

13

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

14

well bore, unless the department has granted inactive status for

15

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

16

well. If the department determines that a prior owner or

17

operator received economic benefit, other than economic benefit

18

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

19

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

20

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

21

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

22

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

23

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

24

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

25

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

26

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

27

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

28

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

29

well shall be plugged from that depth in accordance with section

30

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

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1

the Coal and Gas Resource Coordination Act, and the regulations

2

of the department.

3

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

4

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

5

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

6

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

7

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

8

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

9

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

10

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

11

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

12

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

13

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

14

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

15

to the notice of abandonment filed with the department under

16

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

17

operator has fully complied with this section, the well operator

18

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

19

prescribed by regulation of the department. When plugging has

20

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

21

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

22

qualified people who participated in the work setting forth the

23

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

24

certificate shall be mailed to each coal operator, lessee or

25

owner to whom notice was given by certified mail and another

26

shall be mailed to the department.

27

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

28

an uncompleted bore hole plugged immediately upon suspension of

29

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

30

well operator shall notify the department of the intention to

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1

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

2

furnished by the department, showing the location of the well

3

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

4

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

5

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

6

representative to be present at the plugging. The notice or

7

waiting period may be verbally waived by the department. In

8

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

9

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

10

plugged, the department shall be given three working days'

11

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

12

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

13

of subsequent wells, no additional notice shall be required if

14

plugging on the project is continuous. If plugging of subsequent

15

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

16

department of continuation of the project. Whether or not a

17

representative attends, if the well operator has fully complied

18

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

19

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

20

of the department. When plugging has been completed, a

21

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

22

department, by two experienced and qualified people who

23

participated in the work setting forth the time and manner in

24

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

25

mailed to the department.

26

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

27

is to be abandoned immediately after completion of drilling, the

28

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

29

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

30

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

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1

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

2

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

3

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

4

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

5

operator has fully complied with the requirements of this

6

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

7

plug the well in the manner provided by regulation of the

8

department. The well operator shall prepare the certificate of

9

plugging and mail copies of the same as provided in subsection

10

(b).

11

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

12

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

13

registered under section 3213 (relating to well registration and

14

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

15

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

16

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

17

recover the costs of plugging. The department shall make an

18

effort to determine ownership of a well which is in operation

19

but has not been registered and provide written notice to the

20

owner of pending action under this subsection. If the department

21

cannot determine ownership within 30 days, it may proceed under

22

this subsection. Costs of plugging shall have priority over all

23

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

24

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

25

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

26

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

27

owner or operator of the abandoned or unregistered well shall be

28

liable for the additional costs.

29

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

30

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

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1

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

2

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

3

the drilling or extraction operation of the abandoned well.

4

§ 3221.  Alternative methods.

5

A well operator may request permission to use a method or

6

material other than those required by this chapter for casing,

7

plugging or equipping a well in an application to the department

8

which describes the proposed alternative in reasonable detail

9

and indicates the manner in which it will accomplish the goals

10

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

11

given by the well operator by certified mail to any affected

12

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

13

objections to the proposed alternative method or material. If no

14

timely objections are filed or raised by the department, the

15

department shall determine whether to allow use of the proposed

16

alternative method or material.

17

§ 3222.  Well reporting requirements.

18

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

19

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

20

provided by the department, an annual report specifying the

21

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

22

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

23

years only changes in status must be reported. The Commonwealth

24

may utilize reported information in enforcement proceedings, in

25

making designations or determinations under section 1927-A of

26

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

27

Administrative Code of 1929, or in aggregate form for

28

statistical purposes.

29

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

30

unconventional well shall file with the department, on a form

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1

provided by the department, a semiannual report specifying the

2

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

3

The initial report under this subsection shall be filed on or

4

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

5

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

6

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

7

Subsequent semiannual reports shall be filed with the department

8

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

9

include production data from the preceding reporting period. The

10

Commonwealth may utilize reported information in enforcement

11

proceedings, in making designations or determinations under

12

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

13

aggregate form for statistical purposes. Beginning November 1,

14

2010, the department shall make the reports available on its

15

publicly accessible Internet website. Costs incurred by the

16

department to comply with the requirements of this subsection

17

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

18

(relating to well permits).

19

(b)  Collection of data.--

20

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

21

drilled or altered.

22

(2)  A record containing the information required by the

23

department shall be filed within 30 days of cessation of

24

drilling of each well.

25

(3)  A completion report containing any additional

26

required information shall be filed within 30 days after

27

completing the well and shall be kept on file by the

28

department.

29

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

30

stimulation record. At a minimum, the stimulation record

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1

shall contain pump rates, pressures, total volume used to

2

stimulate the well, a list of hazardous and other

3

chemicals used to stimulate the well, volume of water

4

used, identification of water sources used under a

5

department-approved water management plan and depth at

6

which potable aquifers are encountered during drilling.

7

The well operator may designate specific portions of the

8

stimulation record as containing a trade secret or

9

confidential proprietary information. The department

10

shall prevent disclosure of designated confidential

11

information to the extent permitted under the act of

12

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

13

Know Law.

14

(ii)  The completion report shall identify:

15

(A)  whether methane was encountered in other

16

than a target formation; and

17

(B)  the country of origin and manufacture of the

18

steel products used in the construction of the well.

19

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

20

the department and posted on the department's publicly

21

accessible Internet website.

22

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

23

shall, within 90 days of completion or recompletion of

24

drilling, submit a copy of any electrical, radioactive or

25

other standard industry logs which have been run. No

26

information under this paragraph shall be required unless the

27

well operator has compiled the information in the ordinary

28

course of business.

29

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

30

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

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1

formation water analysis, porosity, permeability or fluid

2

saturation measurements, core analysis and lithologic log or

3

sample description or other similar data as compiled. No

4

information under this paragraph shall be required unless the

5

well operator had it compiled in the ordinary course of

6

business, and interpretation of data under this paragraph is

7

not required to be filed.

8

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

9

the department prior to commencement of drilling, the well

10

operator shall collect any additional data specified by the

11

department, including representative drill cuttings and samples

12

from cores taken and any other geological information that the

13

operator reasonably can compile. Interpretation of the data is

14

not required to be filed.

15

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

16

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

17

shall be retained by the well operator and filed with the

18

department no more than three years after completion of the

19

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

20

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

21

department shall be entitled to utilize information collected

22

under this subsection in enforcement proceedings, in making

23

designations or determinations under section 1927-A of The

24

Administrative Code of 1929 and in aggregate form for

25

statistical purposes.

26

§ 3223.  Notification and effect of well transfer.

27

The owner or operator of a well shall notify the department

28

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

29

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

30

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

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1

or operator of an obligation accrued under this chapter, nor

2

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

3

the well until the requirements of section 3225 (relating to

4

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

5

operator shall be relieved from all obligations under this

6

chapter, including the obligation to plug the well.

7

§ 3224.  Coal operator responsibilities.

8

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

9

other underground materials from, or extending the workings in,

10

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

11

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

12

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

13

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

14

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

15

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

16

prepare and file with the department, showing the pillar which

17

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

18

gas well in the projected workings. Thereafter, the coal

19

operator may proceed with mining operations in the manner

20

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

21

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

22

well location without written approval under this section. If,

23

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

24

indicates that the proposed pillar is inadequate to protect

25

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

26

the affected well operator shall attempt to reach an agreement

27

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

28

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

29

within ten days after receipt of the proposed plan under this

30

section, file objections under section 3251 (relating to

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1

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

2

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

3

has none, the department shall grant approval, reciting that

4

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

5

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

6

approved in the manner as projected.

7

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

8

operator or raised by the department, the department shall order

9

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

10

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

11

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

12

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

13

which will satisfy the objections and receive department

14

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

15

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

16

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

17

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

18

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

19

department, by appropriate order, shall determine the pillar to

20

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

21

section, the department shall follow as nearly as is possible

22

the original plan filed by the coal operator. The department

23

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

24

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

25

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

26

conditions is established. Pillars determined by the department

27

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

28

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

29

pillar to be left for each well.

30

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

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1

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

2

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

3

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

4

the department shall:

5

(1)  follow the appropriate procedure under subsection

6

(a) or (b);

7

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

8

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

9

application; and

10

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

11

respect to each well.

12

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

13

of the department after notice and opportunity for a hearing

14

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

15

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

16

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

17

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

18

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

19

nothing in this chapter shall be construed to:

20

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

21

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

22

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

23

pillar; or

24

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

25

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

26

pay for the coal pillar.

27

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

28

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

29

completely remove any pillar from around that well shall file a

30

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

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1

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

2

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

3

approval has been granted by the department in accordance with

4

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

5

shall have the authority to establish conditions under which the

6

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

7

plugged oil or gas well.

8

§ 3225.  Bonding.

9

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

10

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

11

application for a well permit, and before continuing to

12

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

13

shall file with the department a bond covering the well and

14

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

15

department. A bond filed with an application for a well

16

permit shall be payable to the Commonwealth and conditioned

17

upon the operator's faithful performance of all drilling,

18

water supply replacement, restoration and plugging

19

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

20

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

21

conditioned upon the operator's faithful performance of all

22

water supply replacement, restoration and plugging

23

requirements of this chapter. The amount of the bond required

24

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

25

Environmental Quality Board every two years to reflect the

26

projected costs to the Commonwealth of plugging the well:

27

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

28

than 6,000 feet:

29

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

30

well; but no bond may be required under this clause

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1

in excess of $35,000.

2

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

3

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

4

but no bond may be required under this clause in

5

excess of $60,000.

6

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

7

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

8

but no bond may be required under this clause in

9

excess of $100,000.

10

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

11

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

12

wells; but no bond may be required under this clause

13

in excess of $250,000.

14

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

15

than 6,000 feet:

16

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

17

well; but no bond may be required under this clause

18

in excess of $60,000.

19

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

20

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

21

but no bond may be required under this clause in

22

excess of $120,000.

23

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

24

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

25

but no bond may be required under this clause in

26

excess of $180,000.

27

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

28

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

29

wells; but no bond may be required under this clause

30

in excess of $250,000.

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1

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

2

or operator may file a blanket bond for the applicable amount

3

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

4

covering all of its wells in this Commonwealth, as enumerated

5

on the bond form.

6

(3)  Liability under the bond shall continue until the

7

well has been properly plugged in accordance with this

8

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

9

certificate of plugging with the department. Each bond shall

10

be executed by the operator and a corporate surety licensed

11

to do business in this Commonwealth and approved by the

12

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

13

deposit with the department:

14

(i)  cash;

15

(ii)  certificates of deposit or automatically

16

renewable irrevocable letters of credit, from financial

17

institutions chartered or authorized to do business in

18

this Commonwealth and regulated and examined by the

19

Commonwealth or a Federal agency, which may be terminated

20

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

21

notice by the financial institution to the permittee and

22

the department;

23

(iii)  negotiable bonds of the United States

24

Government or the Commonwealth, the Pennsylvania Turnpike

25

Commission, the General State Authority, the State Public

26

School Building Authority or any municipality within the

27

Commonwealth; or

28

(iv)  United States Treasury Bonds issued at a

29

discount without a regular schedule of interest payments

30

to maturity, otherwise known as Zero Coupon Bonds, having

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1

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

2

of purchase and at the maturity date having a value of

3

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

4

The cash deposit, certificate of deposit, amount of the

5

irrevocable letter of credit or market value of the

6

securities shall be equal at least to the sum of the

7

bond.

8

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

9

cash, letters of credit or negotiable bonds, immediately

10

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

11

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

12

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

13

is made.

14

(5)  The State Treasurer shall at all times be

15

responsible for custody and safekeeping of deposits. The

16

operator making the deposit shall be entitled from time to

17

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

18

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

19

collateral deposited, upon depositing with the State

20

Treasurer, in lieu of that collateral, other collateral of

21

classes specified in this section having a market value at

22

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

23

receive and recover the interest and income from the

24

negotiable bonds as they become due and payable.

25

(6)  If negotiable bonds on deposit under this subsection

26

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

27

the owner of the bonds, shall convert them into other

28

negotiable bonds, of classes specified in this section,

29

designated by the owner.

30

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

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1

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

2

written notice to replace the letter of credit with other

3

acceptable bond guarantees as provided in this section. If

4

the owner or operator fails to timely replace the letter of

5

credit, the department shall draw upon and convert the letter

6

of credit into cash and hold it as a collateral bond

7

guarantee.

8

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

9

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

10

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

11

Upon release of bonds and collateral under this section, the

12

State Treasurer shall immediately return to the owner the

13

specified amount of cash or securities.

14

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

15

refuses to comply with subsection (a), regulations promulgated

16

under this chapter or conditions of a permit relating to this

17

chapter, the department may declare the bond forfeited and shall

18

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

19

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

20

owner or operator has deposited cash or securities as collateral

21

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

22

collateral forfeited and direct the State Treasurer to pay the

23

full amount of the funds into the Well Plugging Restricted

24

Revenue Account or to sell the security to the extent forfeited

25

and pay the proceeds into the Well Plugging Restricted Revenue

26

Account. If a corporate surety or financial institution fails to

27

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

28

or financial institution shall be disqualified from writing

29

further bonds under this chapter or any other environmental law

30

administered by the department. A person aggrieved by reason of

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1

forfeiting the bond or converting collateral, as provided in

2

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

3

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

4

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

5

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

6

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

7

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

8

submit the replacement bond constitutes a violation of this

9

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

10

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

11

apply:

12

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

13

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

14

required under subsection (a), due to inability to

15

demonstrate sufficient financial resources may, in lieu of

16

the bond:

17

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

18

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

19

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

20

shall be a nonrefundable fee paid each year that the

21

operator has not filed a bond with the department. All

22

fees collected in lieu of a bond under this subsection

23

shall be used for the purposes authorized by this

24

chapter. The Environmental Quality Board shall have the

25

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

26

established under this subsection.

27

(ii)  Make phased deposits of collateral to fully

28

collateralize the bond, subject to the following:

29

(A)  Payment shall be based on the number of

30

wells owned or operated. The operator shall make an

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1

initial deposit and make annual deposits in

2

accordance with the schedule in clause (B). Interest

3

accumulated by the collateral shall become a part of

4

the bond until the collateral plus accumulated

5

interest equals the amount of the required bond. The

6

collateral shall be deposited, in trust, with the

7

State Treasurer as provided in this subsection or

8

with a bank selected by the department which shall

9

act as trustee for the benefit of the Commonwealth to

10

guarantee the operator's compliance with the

11

drilling, water supply replacement, restoration and

12

plugging requirements of this chapter. The operator

13

shall be required to pay all costs of the trust.

14

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

15

does not intend to operate additional wells shall

16

deposit $250 per well and shall, thereafter, annually

17

deposit $50 per well until the obligations of this

18

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

19

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

20

or more permits for additional wells shall deposit

21

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

22

plus $150 for each additional well to be permitted

23

that year until the obligations of this section are

24

fully met. An operator of 26 to 50 wells shall

25

deposit $3,000 and shall, thereafter, annually

26

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

27

be permitted that year until the obligations of this

28

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

29

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

30

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

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1

be permitted that year until the obligations of this

2

section are fully met. Operators of 101 to 200 wells

3

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

4

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

5

to be permitted that year until the obligations of

6

this section are fully met. Operators of more than

7

200 wells shall fully bond their wells immediately.

8

(C)  The department shall reduce the amount of

9

phased collateral payments or the period of time over

10

which phased collateral payments shall be made on

11

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

12

1992, have paid a fee in lieu of bond under

13

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

14

to enter the phased collateral program under this

15

subparagraph rather than continue to make payments in

16

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

17

in lieu of bond shall not be credited in any other

18

manner, and the department shall not be required to

19

refund the fees. The Environmental Quality Board, by

20

regulation, may change the annual deposits

21

established under clause (B) if necessary to

22

accommodate a change in the amount of the bond

23

required under this section.

24

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

25

bond or make phased deposits of collateral to fully

26

collateralize the bond so long as the operator does not miss

27

a payment under this subsection and remains in compliance

28

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

29

subsection, the operator shall immediately:

30

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

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1

(ii)  cease all operations and plug all wells.

2

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

3

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

4

drill new wells due to inability to demonstrate financial

5

resources may meet the collateral bond requirements of

6

subsection (a) by making phased deposits of collateral to

7

fully collateralize the bond. The individual shall be limited

8

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

9

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

10

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

11

years. Interest accumulated shall become a part of the bond

12

until the collateral plus accumulated interest equals the

13

amount of the required bond. The collateral shall be

14

deposited in trust with the State Treasurer under subsection

15

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

16

as trustee for the benefit of the Commonwealth to guarantee

17

the individual's compliance with the drilling, water supply

18

replacement, restoration and plugging requirements of this

19

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

20

(2)  Individuals may continue to use phased collateral to

21

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

22

drilled under this provision and remain in compliance with

23

this chapter. If an individual misses a payment, the

24

individual shall:

25

(i)  immediately submit the appropriate bond amount

26

in full; or

27

(ii)  cease all operations and plug all wells.

28

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

29

means a natural person doing business under his own name.

30

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

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1

chapter, regulations adopted under this chapter and conditions

2

of permits are expressly preserved. Nothing in this section

3

shall be construed as an exclusive penalty or remedy for

4

violations of law. No action taken under this section shall

5

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

6

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

7

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

8

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

9

retroactive basis as a condition of obtaining a permit under

10

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

11

this chapter.

12

§ 3226.  Oil and Gas Technical Advisory Board.

13

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

14

Board is created, consisting of the following members, all of

15

whom shall be chosen by the Governor and shall be residents of

16

this Commonwealth:

17

(1)  Three individuals, each of whom shall be:

18

(i)  a petroleum engineer;

19

(ii)  a petroleum geologist; or

20

(iii)  an experienced driller representative of the

21

oil and gas industry with three years of experience in

22

this Commonwealth.

23

(2)  One mining engineer from the coal industry with

24

three years of experience in this Commonwealth.

25

(3)  One geologist or petroleum engineer with three years

26

of experience in this Commonwealth, who shall be chosen from

27

a list of three names submitted by the Citizens Advisory

28

Council to the Governor and who shall sit as a representative

29

of the public interest.

30

(b)  Reimbursement.--Board members shall not receive a salary

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1

but shall be reimbursed for all necessary expenses incurred in

2

the performance of their duties.

3

(c)  Majority vote.--All actions of the board shall be by

4

majority vote. The board shall meet as called by the secretary,

5

but not less than semiannually, to carry out its duties under

6

this chapter. The board shall select a chairman and other

7

officers deemed appropriate.

8

(d)  Consultation.--The department shall consult with the

9

board in the formulation, drafting and presentation stages of

10

all regulations of a technical nature promulgated under this

11

chapter. The board shall be given a reasonable opportunity to

12

review and comment on all regulations of a technical nature

13

prior to submission to the Environmental Quality Board for

14

initial consideration. The written report of the board shall be

15

presented to the Environmental Quality Board with any regulatory

16

proposal. The chairman of the board shall be invited to

17

participate in the presentation of all regulations of a

18

technical nature before the Environmental Quality Board to the

19

extent allowed by procedures of the Environmental Quality Board.

20

Nothing herein shall preclude any member of the board from

21

filing a petition for rulemaking with the Environmental Quality

22

Board in accordance with procedures established by the

23

Environmental Quality Board.

24

§ 3227.  Air contaminant emissions.

25

(a)  Protocols for air contaminant emissions.--No later than

26

three months after the effective date of this chapter, the

27

department shall publish protocols for the detection,

28

quantification and reporting of air contaminant emissions from

29

unconventional gas production processes including wellhead

30

activities and the storage of unconventional gas prior to

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1

processing.

2

(b)  Report on air contaminant emissions.--No later than nine

3

months after the effective date of this chapter, the department

4

shall publish for public comment a draft report quantifying

5

through measurements and calculations the total air contaminant

6

emissions in this Commonwealth from unconventional gas

7

development processes including wellhead activities and the

8

storage of unconventional gas prior to processing. The

9

department shall publish the final report no later than one year

10

after the effective date of this chapter. The department shall

11

publish a revised report every five years thereafter.

12

(c)  Use of best available scientific principles.--The

13

department shall use best available scientific principles in

14

developing the protocols and reports required by this section.

15

SUBCHAPTER C

16

UNDERGROUND GAS STORAGE

17

Sec.

18

3231.  Reporting requirements for gas storage operations.

19

3232.  Reporting requirements for coal mining operations.

20

3233.  General gas storage reservoir operations.

21

3234.  Gas storage reservoir operations in coal areas.

22

3235.  Inspection of facilities and records.

23

3236.  Reliance on maps and burden of proof.

24

3237.  Exemptions and prohibitions.

25

§ 3231.  Reporting requirements for gas storage operations.

26

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

27

(1)  A person injecting into or storing gas in a storage

28

reservoir underlying or within 3,000 linear feet of a coal

29

mine operating in a coal seam that extends over the storage

30

reservoir or reservoir protective area shall, within 60 days,

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1

file with the department a copy of a map and certain data in

2

the form and manner provided in this subsection or as

3

otherwise prescribed by regulation of the department.

4

(2)  A person injecting gas into or storing gas in a

5

storage reservoir which is not under or within 3,000 linear

6

feet of, but less than 10,000 linear feet from, a coal mine

7

operating in a coal seam that extends over the storage

8

reservoir or reservoir protective area shall file the map and

9

data within 60 days or a longer period set by departmental

10

regulation.

11

(3)  A person proposing to inject or store gas in a

12

storage reservoir located as defined in paragraph (1) or (2)

13

shall file the appropriate required map and data with the

14

department not less than six months prior to starting the

15

actual injection or storage.

16

(4)  A map required by this subsection shall be prepared

17

by a competent engineer or geologist, showing:

18

(i)  the stratum in which the existing or proposed

19

storage reservoir is or is proposed to be located;

20

(ii)  the geographic location of the outside

21

boundaries of the storage reservoir and reservoir

22

protective area;

23

(iii)  the location of all known oil or gas wells in

24

the reservoir or within 3,000 linear feet thereof which

25

have been drilled into or through the storage stratum,

26

indicating which have been or are to be cleaned out and

27

plugged or reconditioned for storage along with the

28

proposed location of all additional wells which are to be

29

drilled within the storage reservoir or within 3,000

30

linear feet thereof.

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1

(5)  The following, if available, shall be furnished for

2

all known oil or gas wells which have been drilled into or

3

through the storage stratum within the storage reservoir or

4

within 3,000 linear feet thereof: name of the operator, date

5

drilled, total depth, depth of production if the well was

6

productive of oil or gas, the initial rock pressure and

7

volume, the depths at which all coal seams were encountered

8

and a copy of the driller's log or other similar information.

9

At the time of the filing of the maps and data, a statement

10

shall be filed:

11

(i)  detailing efforts made to determine that the

12

wells shown are accurately located on the map;

13

(ii)  affirming that the wells shown represent, to

14

the best of the operator's knowledge, all oil or gas

15

wells which have ever been drilled into or below the

16

storage stratum within the proposed storage reservoir or

17

within the reservoir protective area;

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 or within the reservoir

26

protective area.

27

(6)  The map and data required to be filed under

28

paragraph (5) shall be amended or supplemented semiannually

29

if material changes occur. The department may require a

30

storage operator to amend or supplement the map or data at

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1

more frequent intervals if material changes have occurred

2

justifying the earlier filing.

3

(b)  Other reporting requirements.--A person who is injecting

4

gas into or storing gas in a storage reservoir not at the time

5

subject to subsection (a), by a process other than that of

6

secondary recovery or gas recycling, shall, within 60 days, or a

7

longer period set by departmental regulations, file maps and

8

data required by departmental regulation and as follows:

9

(1)  A person who, after April 18, 1985, proposes to

10

inject or store gas in a storage reservoir in an area not

11

covered by subsection (a) by a process other than that of

12

secondary recovery or gas recycling shall file the required

13

map and data with the department not less than six months

14

prior to the starting of actual injection or storage.

15

(2)  The map shall be prepared by a competent engineer or

16

competent geologist and show:

17

(i)  the stratum in which the existing or proposed

18

storage reservoir is or is to be located;

19

(ii)  the geographic location of the outside

20

boundaries of the storage reservoir; and

21

(iii)  the location of all known oil or gas wells

22

within the reservoir, or within 3,000 linear feet

23

thereof, which have been drilled into or through the

24

storage stratum, indicating which have been or are to be

25

cleaned out and plugged or reconditioned for storage and

26

the proposed location of all additional wells which are

27

to be drilled within the storage reservoir or within

28

3,000 linear feet thereof.

29

(3)  The following, if available, shall be furnished for

30

all known oil or gas wells which have been drilled into or

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1

through the storage stratum within the storage reservoir or

2

within 3,000 linear feet thereof: name of the operator, date

3

drilled, total depth, depth of production if the well was

4

productive of oil or gas, the initial rock pressure and

5

volume and a copy of the driller's log or other similar

6

information. At the time of the filing of the maps and data,

7

a statement shall be filed:

8

(i)  detailing efforts made to determine that the

9

wells shown are accurately located on the map;

10

(ii)  affirming that the wells shown represent, to

11

the best of the operator's knowledge, all oil or gas

12

wells which have ever been drilled into or below the

13

storage stratum within the proposed storage reservoir;

14

(iii)  stating whether the initial injection is for

15

testing purposes;

16

(iv)  stating the maximum pressure at which injection

17

and storage of gas is contemplated; and

18

(v)  providing a detailed explanation of the methods

19

to be used or which previously have been used in

20

drilling, cleaning out, reconditioning and plugging wells

21

in the storage reservoir.

22

(4)  The map and data required to be filed under

23

paragraph (3) shall be amended or supplemented semiannually

24

if material changes occur. The department may require a

25

storage operator to amend or supplement the map or data at

26

more frequent intervals if material changes have occurred

27

justifying the earlier filing.

28

(c)  Political subdivisions.--Storage operators shall give

29

notice to the department of the name of each political

30

subdivision and county in which the operator maintains and

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1

operates a gas storage reservoir.

2

(d)  Notice to affected persons.--At the time of the filing

3

of maps and data and the filing of amended or supplemental maps

4

or data required by this section, the person filing the

5

information shall give written notice of the filing to all

6

persons who may be affected under the provisions of this chapter

7

by the storage reservoir described in the maps or data. Notices

8

shall contain a description of the boundaries of the storage

9

reservoir. When a person operating a coal mine or owning an

10

interest in coal properties which are or may be affected by the

11

storage reservoir requests, in writing, a copy of any map or

12

data filed with the department, the copy shall be furnished by

13

the storage operator.

14

(e)  Outside boundaries.--For purposes of this chapter, the

15

outside boundaries of a storage reservoir shall be defined by

16

the location of those wells around the periphery of the storage

17

reservoir which had no gas production when drilled in the

18

storage stratum. The boundaries shall be originally fixed or

19

subsequently changed if, based on the number and nature of the

20

wells and the geological and production knowledge of the storage

21

stratum, its character, permeability, distribution and operating

22

experience, it is determined in a conference under section 3251

23

(relating to conferences) that modifications should be made.

24

(f)  Inapplicability of section.--The requirements of this

25

section shall not apply to the operator of an underground gas

26

storage reservoir so long as the reservoir is located more than

27

10,000 linear feet from an operating coal mine, except that the

28

storage operator shall give notice to the department of the name

29

of each political subdivision and county in which the operator

30

maintains and operates a gas storage reservoir. In political

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1

subdivisions and counties where both gas storage reservoirs and

2

coal mines are being operated, the department may request the

3

storage operator to furnish maps showing geographical locations

4

and outside boundaries of the storage reservoirs. The department

5

shall keep a record of the information and promptly notify the

6

coal operator and the storage operator when notified by them

7

that the coal mine and storage reservoir are within 10,000

8

linear feet of each other.

9

§ 3232.  Reporting requirements for coal mining operations.

10

(a)  General rule.--A person owning or operating a coal mine

11

shall file with the department a map prepared and sealed by a

12

competent individual licensed as a professional engineer or

13

professional land surveyor under the provisions of the act of

14

May 23, 1945 (P.L.913, No.367), known as the Engineer, Land

15

Surveyor and Geologist Registration Law, showing the outside

16

coal boundaries of the operating coal mine, the existing

17

workings and exhausted areas and the relationship of the

18

boundaries to identifiable surface properties and landmarks. A

19

person owning or operating an operating coal mine which has been

20

penetrated by a well shall furnish a mine map to the department

21

each year indicating the excavations for the preceding year and

22

the projections for the ensuing year. The map required by this

23

subsection shall be furnished to a person storing or

24

contemplating the storage of gas in the vicinity of operating

25

coal mines, upon written request, by the coal operator, and the

26

person and the department shall thereafter be informed of any

27

boundary changes at the time the changes occur. The department

28

shall keep a record of the information and promptly notify the

29

coal operator and storage operator when notified by them that

30

the coal mine and the storage reservoir are within 10,000 linear

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1

feet of each other.

2

(b)  Mines near certain reservoirs.--A person owning or

3

operating any coal mine which is or which comes within 10,000

4

linear feet of a storage reservoir and where the coal seam being

5

operated extends over the storage reservoir or reservoir

6

protective area shall, within 45 days after receiving notice

7

from the storage operator of that fact, file with the department

8

and furnish to the person operating the storage reservoir a map

9

in the form required by subsection (a) showing, in addition to

10

the requirements of subsection (a), existing and projected

11

excavations and workings of the operating coal mine for the

12

ensuing 18-month period and the location of oil or gas wells of

13

which the coal operator has knowledge. The person owning or

14

operating the coal mine shall, each six months thereafter, file

15

with the department and furnish to the person operating the

16

storage reservoir a revised map showing any additional

17

excavations and workings, together with the projected

18

excavations and workings for the then ensuing 18-month period,

19

which may be within 10,000 linear feet of the storage reservoir.

20

The department may require a coal operator to file revised maps

21

at more frequent intervals if material changes have occurred

22

justifying earlier filing. The person owning or operating the

23

coal mine shall also file with the department and furnish the

24

person operating the reservoir prompt notice of any wells which

25

have been cut into, together with all available pertinent

26

information.

27

(c)  Mines near gas storage reservoirs.--A person owning or

28

operating a coal mine who has knowledge that it overlies or is

29

within 2,000 linear feet of a gas storage reservoir shall,

30

within 30 days, notify the department and the storage operator

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1

of that fact.

2

(d)  Mines projected to be near storage reservoirs.--When a

3

person owning or operating a coal mine expects that, within the

4

ensuing nine-month period, the coal mine will be extended to a

5

point which will be within 2,000 linear feet of any storage

6

reservoir, the person shall notify the department and storage

7

operator in writing of that fact.

8

(e)  New mines.--A person intending to establish or

9

reestablish an operating coal mine which will be over a storage

10

reservoir or within 2,000 linear feet of a storage reservoir or

11

may, within nine months thereafter, be expected to be within

12

2,000 linear feet of a storage reservoir shall immediately

13

notify the department and storage operator in writing. Notice

14

shall include the date on which the person intends to establish

15

or reestablish the operating coal mine.

16

(f)  Misdemeanor.--A person who serves notice as required by

17

this subsection of an intention to establish or reestablish an

18

operating coal mine, without intending in good faith to

19

establish or reestablish the mine, is liable for continuing

20

damages to a storage operator injured by the improper notice and

21

commits a misdemeanor subject to the penalties of section 3255

22

(relating to penalties).

23

§ 3233.  General gas storage reservoir operations.

24

(a)  General rule.--A person who operates or proposes to

25

operate a storage reservoir, except one filled by the secondary

26

recovery or gas recycling process, shall:

27

(1)  Use every known method which is reasonable under the

28

circumstances for discovering and locating all wells which

29

have or may have been drilled into or through the storage

30

reservoir.

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1

(2)  Plug or recondition, as provided in departmental

2

regulations, all known wells drilled into or through the

3

storage reservoir, except to the extent otherwise provided in

4

subsections (b) and (c).

5

(b)  Wells to be plugged.--To comply with subsection (a),

6

wells which are to be plugged shall be plugged in the manner

7

specified in section 3220 (relating to plugging requirements).

8

(b.1)  Wells plugged prior to enactment of section.--If a

9

well located in the storage reservoir area has been plugged

10

prior to April 18, 1985, and on the basis of data, information

11

and other evidence submitted to the department, it is determined

12

that the plugging was done in the manner required by section

13

3220 or approved as an alternative method under section 3221

14

(relating to alternative methods) and the plugging is still

15

sufficiently effective to meet the requirements of this chapter,

16

the obligations under subsection (a) with regard to plugging the

17

well shall be considered to have been fully satisfied.

18

(c)  Wells to be reconditioned.--The following shall apply:

19

(1)  To comply with subsection (a), wells which are to be

20

reconditioned shall, unless the department by regulation

21

specifies a different procedure, be cleaned out from the

22

surface through the storage horizon, and the producing casing

23

and casing strings determined not to be in good physical

24

condition shall be replaced with new casing, using the same

25

procedure as is applicable to drilling a new well under this

26

chapter. In the case of wells to be used for gas storage, the

27

annular space between each string of casing and the annular

28

space behind the largest diameter casing to the extent

29

possible shall be filled to the surface with cement or

30

bentonitic mud or a nonporous material approved by the

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1

department under section 3221. At least 15 days prior to

2

reconditioning, the storage operator shall give notice to the

3

department, setting forth in the notice the manner in which

4

it is planned to recondition the well and any pertinent data

5

known to the storage operator which will indicate the

6

condition of the well existing at that time. In addition, the

7

storage operator shall give the department at least 72 hours'

8

notice of the time when reconditioning is to begin. If no

9

objections are raised by the department within ten days, the

10

storage operator may proceed with reconditioning in

11

accordance with the plan as submitted. If objections are made

12

by the department, the department may fix a time and place

13

for a conference under section 3251 (relating to conferences)

14

at which the storage operator and department shall endeavor

15

to agree on a plan to satisfy the objections and meet the

16

requirements of this section. If no agreement is reached, the

17

department may, by an appropriate order, determine whether

18

the plan as submitted meets the requirements of this section

19

or what changes, if any, are required. If, in reconditioning

20

a well in accordance with the plan, physical conditions are

21

encountered which justify or necessitate a change in the

22

plan, the storage operator may request that the plan be

23

changed. If the request is denied, the department shall fix a

24

conference under section 3251 and proceed in the same manner

25

as with original objections. An application may be made in

26

the manner prescribed by section 3221 for approval of an

27

alternative method of reconditioning a well. If a well

28

located within the storage reservoir was reconditioned, or

29

drilled and equipped, prior to April 18, 1985, the

30

obligations imposed by subsection (a), as to reconditioning

- 100 -

 


1

the well, shall be considered fully satisfied if, on the

2

basis of the data, information and other evidence submitted

3

to the department, it is determined that:

4

(i)  The conditioning or previous drilling and

5

equipping was done in the manner required in this

6

subsection, in regulations promulgated under this chapter

7

or in a manner approved as an alternative method in

8

accordance with section 3221.

9

(ii)  The reconditioning or previous drilling and

10

equipping is still sufficiently effective to meet the

11

requirements of this chapter.

12

(2)  If a well requires emergency repairs, this chapter

13

shall not be construed to require the storage operator to

14

give any notice required by this subsection before making the

15

repairs.

16

(d)  Exception.--The requirements of subsection (a) shall not

17

apply to injection of gas into a stratum when the sole purpose

18

of injection, referred to in this subsection as testing, is to

19

determine whether the stratum is suitable for storage purposes.

20

Testing shall be conducted only in compliance with the following

21

requirements:

22

(1)  The person testing or proposing to test shall comply

23

with section 3231 (relating to reporting requirements for gas

24

storage operations) and verify the statement required to be

25

filed by that section.

26

(2)  The storage operator shall give at least six months'

27

written notice to the department of the fact that injection

28

of gas for testing purposes is proposed.

29

(3)  If the department has objections, the department

30

shall fix a time and place for a conference under section

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1

3251, not more than ten days from the date of notice to the

2

storage operator, at which time the storage operator and

3

department shall attempt to resolve the issues presented. If

4

an agreement cannot be reached, the department may issue an

5

appropriate order.

6

(e)  Failure to execute lawful order.--In a proceeding under

7

this chapter, if the department determines that an operator of a

8

storage reservoir has failed to carry out a lawful order issued

9

under this chapter, the department may require the operator to

10

suspend operation of the reservoir and withdraw the gas until

11

the violation is remedied, in which case the storage operator,

12

limited by due diligence insofar as existing facilities utilized

13

to remove gas from the reservoir will permit, shall:

14

(1)  if possible, remove the amount required by the

15

department to be removed; or

16

(2)  in any event, remove the maximum amount which can be

17

withdrawn in accordance with recognized engineering and

18

operating procedures.

19

(f)  Duty of storage reservoir operator.--The following shall

20

apply:

21

(1)  A person owning or operating a storage reservoir

22

subject to this chapter shall have a duty to:

23

(i)  Maintain all wells drilled into or through the

24

reservoir in a condition, and operate them in a manner,

25

sufficient to prevent the escape of gas.

26

(ii)  Operate and maintain the reservoir and its

27

facilities as prescribed by departmental regulations and

28

at a pressure which will prevent gas from escaping, but

29

the pressure shall not exceed the highest rock pressure

30

found to have existed during the production history of

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1

the reservoir or another high pressure limit approved by

2

the department after holding a conference under section

3

3251 based on geological and production knowledge of the

4

reservoir, its character, permeability distribution and

5

operating experience.

6

(2)  The duty under paragraph (1) shall not be construed

7

to include inability to prevent the escape of gas when gas

8

escapes as a result of an act of God or a person not under

9

the control of the storage operator. In that instance, the

10

storage operator shall have a duty to take action reasonably

11

necessary to prevent further escape of gas. This paragraph

12

does not apply to a well which the storage operator failed to

13

locate and make known to the department.

14

§ 3234.  Gas storage reservoir operations in coal areas.

15

(a)  General rule.--A person operating a storage reservoir

16

which underlies or is within 2,000 linear feet of a coal mine

17

operating in a coal seam that extends over the storage reservoir

18

or the reservoir protective area shall:

19

(1)  Use every known reasonable method for discovering

20

and locating all wells which have or may have been drilled

21

into or through the storage stratum in the acreage lying

22

within the outside coal boundaries of the operating coal mine

23

overlying the storage reservoir or the reservoir protective

24

area.

25

(2)  Plug or recondition, as provided by section 3220

26

(relating to plugging requirements) and subsection (e), all

27

known wells, except to the extent provided in subsections

28

(e), (f), (g) and (h), drilled into or through the storage

29

stratum and located within the portion of the acreage of the

30

operating coal mine overlying the storage reservoir or the

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1

reservoir protective area. If an objection is raised as to

2

use of a well as a storage well and after a conference under

3

section 3251 (relating to conferences), it is determined by

4

the department, taking into account all circumstances and

5

conditions, that the well should not be used as a storage

6

well, the well shall be plugged unless, in the opinion of the

7

storage operator, the well may be used as a storage well in

8

the future, in which case, upon approval of the department

9

after taking into account all circumstances and conditions,

10

the storage operator may recondition and inactivate the well

11

rather than plug it.

12

(3)  The requirements of paragraph (2) shall be deemed to

13

have been fully complied with if, as the operating coal mine

14

is extended, all wells which from time to time come within

15

the acreage described in paragraph (2) are reconditioned or

16

plugged as provided in section 3220 and subsection (e) or (f)

17

so that, by the time the coal mine has reached a point within

18

2,000 linear feet of the wells, they will have been

19

reconditioned or plugged in accordance with section 3220 and

20

subsection (e) or (f).

21

(b)  Verified statement.--A person operating a storage

22

reservoir referred to in subsection (a) shall file with the

23

department and furnish a copy to the person operating the

24

affected operating coal mine a verified statement setting forth:

25

(1)  That the map and any supplemental maps required by

26

section 3231(a) (relating to reporting requirements for gas

27

storage operations) have been prepared and filed in

28

accordance with section 3231.

29

(2)  A detailed explanation of what the storage operator

30

has done to comply with the requirements of subsection (a)(1)

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1

and (2) and the results of those actions.

2

(3)  Such additional efforts, if any, as the storage

3

operator is making and intends to make to locate all wells.

4

(4)  Any additional wells that are to be plugged or

5

reconditioned to meet the requirements of subsection (a)(2).

6

(b.1)  Order of department.--If the statement required under

7

subsection (b) is not filed by the storage reservoir operator

8

within the time specified by this chapter or the regulations of

9

the department, the department may order the operator to file

10

the statement.

11

(c)  Procedure.--Within 120 days after receipt of a statement

12

required by this section, the department may direct that a

13

conference be held in accordance with section 3251 to determine

14

whether the requirements of section 3231 and subsection (a) have

15

been fully met. At the conference, if any person believes the

16

requirements have not been fully met, the parties shall attempt

17

to agree on additional actions to be taken and the time for

18

completion, subject to approval of the department. If an

19

agreement cannot be reached, the department shall make a

20

determination and, if the department determines any requirements

21

have not been met, the department shall issue an order

22

specifying in detail the extent to which the requirements have

23

not been met and the actions which the storage operator must

24

complete to meet the requirements. The order shall grant as much

25

time as is reasonably necessary to fully comply. If the storage

26

operator encounters conditions not known to exist at the time of

27

issuance of the order and which materially affect the validity

28

of the order or the ability of the storage operator to comply

29

with it, the storage operator may apply for a rehearing or

30

modification of the order.

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1

(d)  Notification.--If, in complying with subsection (a), a

2

storage operator, after filing the statement provided for in

3

subsection (b), plugs or reconditions a well, the storage

4

operator shall notify the department and the coal operator

5

affected, in writing, setting forth facts indicating the manner

6

in which the plugging or reconditioning was done. Upon receipt

7

of the notification, the coal operator or department may request

8

a conference under section 3251.

9

(e)  Plugging wells.--In order to meet the requirements of

10

subsection (a), wells which are to be plugged shall be plugged

11

in the manner specified in regulations promulgated under section

12

3211 (relating to well permits). When a well located within the

13

storage reservoir or the reservoir protective area has been

14

plugged prior to April 18, 1985, and, on the basis of the data

15

information and other evidence submitted to the department, it

16

is determined that the plugging was done in the manner required

17

by section 3220, or in a manner approved as an alternative

18

method in accordance with section 3221 (relating to alternative

19

methods), and the plugging is still sufficiently effective to

20

meet the requirements of this chapter, the requirements of

21

subsection (a) as to plugging the well shall be considered to

22

have been fully satisfied.

23

(f)  Reconditioned wells.--The following shall apply:

24

(1)  In order to comply with subsection (a), unless the

25

department by regulation specifies a different procedure,

26

wells which are to be reconditioned shall be cleaned out from

27

the surface through the storage horizon, and the following

28

casing strings shall be pulled and replaced with new casing,

29

using the procedure applicable to drilling a new well under

30

this chapter:

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1

(i)  the producing casing;

2

(ii)  the largest diameter casing passing through the

3

lowest workable coal seam unless it extends at least 25

4

feet below the bottom of the coal seam and is determined

5

to be in good physical condition, but the storage

6

operator may, instead of replacing the largest diameter

7

casing, replace the next largest casing string if the

8

casing string extends at least 25 feet below the lowest

9

workable coal seam; and

10

(iii)  casing strings determined not to be in good

11

physical condition.

12

(2)  In the case of a well to be used for gas storage,

13

the annular space between each string of casing and the

14

annular space behind the largest diameter casing, to the

15

extent possible, shall be filled to the surface with cement

16

or bentonitic mud or an equally nonporous material approved

17

by the department under section 3221.

18

(3)  At least 15 days before a well is to be

19

reconditioned, the storage operator shall give notice to the

20

department and the coal operator, lessee or owner, setting

21

forth the manner in which reconditioning is planned and

22

pertinent data known to the storage operator which will

23

indicate the current condition of the well, along with at

24

least 72 hours' notice of the date and time when

25

reconditioning will begin. The coal operator, lessee or owner

26

shall have the right to file, within ten days after receipt

27

of the notice, objections to the plan of reconditioning as

28

submitted by the storage operator. If no objections are filed

29

and none are raised by the department within ten days, the

30

storage operator may proceed with reconditioning in

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1

accordance with the plan as submitted. If an objection is

2

filed or made by the department, the department shall fix a

3

time and place for a conference under section 3251, at which

4

conference the storage operator and the person having

5

objections shall attempt to agree on a plan of reconditioning

6

that meets the requirements of this section. If no agreement

7

is reached, the department shall, by an appropriate order,

8

determine whether the plan as submitted meets the

9

requirements of this section or what changes should be made

10

to meet the requirements. If, in reconditioning the well in

11

accordance with the plan, physical conditions are encountered

12

which justify or necessitate a change in the plan, the

13

storage operator or coal operator may request that the plan

14

be changed. If the parties cannot agree on a change, the

15

department shall arrange for a conference to determine the

16

matter in the same manner as set forth in connection with

17

original objections to the plan.

18

(4)  Application may be made to the department in the

19

manner prescribed in section 3221 for approval of an

20

alternative method of reconditioning a well. When a well

21

located within the storage reservoir or the reservoir

22

protective area has been reconditioned or drilled and

23

equipped prior to April 18, 1985, and, on the basis of the

24

data, information and other evidence submitted to the

25

department, the obligations imposed by subsection (a) as to

26

reconditioning the well shall be considered to be fully

27

satisfied if it is determined that reconditioning or previous

28

drilling and equipping:

29

(i)  was done in the manner required in this

30

subsection, or in regulations promulgated hereunder, or

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1

in a manner approved as an alternative method in

2

accordance with section 3221; or

3

(ii)  is still sufficiently effective to meet the

4

requirements of this chapter.

5

(5)  If a well requires emergency repairs, this

6

subsection shall not be construed to require the storage

7

operator to give the notices specified herein before making

8

the repairs.

9

(g)  Producing wells.--If a well located within the reservoir

10

protective area is a producing well in a stratum below the

11

storage stratum, the obligations imposed by subsection (a) shall

12

not begin until the well ceases to be a producing well.

13

(h)  Certain other wells.--If a well within a storage

14

reservoir or reservoir protective area penetrates the storage

15

stratum but does not penetrate the coal seam being mined by an

16

operating coal mine, the department may, upon application of the

17

operator of the storage reservoir, exempt the well from the

18

requirements of this section. Either party affected may request

19

a conference under section 3251 with respect to exemption of a

20

well covered by this subsection.

21

(i)  Plugging limitation.--In fulfilling the requirements of

22

subsection (a)(2) with respect to a well within the reservoir

23

protective area, the storage operator shall not be required to

24

plug or recondition the well until the storage operator has

25

received from the coal operator written notice that the mine

26

workings will, within the period stated in the notice, be within

27

2,000 linear feet of the well. Upon the receipt of the notice,

28

the storage operator shall use due diligence to complete the

29

plugging or reconditioning of the well in accordance with the

30

requirements of this section and section 3220. If the mine

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1

workings do not, within a period of three years after the well

2

has been plugged, come within 2,000 linear feet of the well, the

3

coal operator shall reimburse the storage operator for the cost

4

of plugging, provided that the well is still within the

5

reservoir protective area as of that time.

6

(j)  Retreat mining.--If retreat mining approaches a point

7

where, within 90 days, it is expected that the retreat work will

8

be at the location of the pillar surrounding an active storage

9

well, the coal operator shall give written notice to the storage

10

operator, and by agreement, the parties shall determine whether

11

it is necessary or advisable to effectively and temporarily

12

inactivate the well. The well shall not be reactivated until a

13

reasonable period, determined by the parties, has elapsed. If

14

the parties cannot agree as required by this subsection, the

15

matter shall be submitted to the department for resolution. The

16

number of wells required to be temporarily inactivated during

17

the retreat period shall not be of a number that materially

18

affects efficient operation of the storage pool, except that

19

this provision shall not preclude temporary inactivation of a

20

particular well if the practical effect of inactivating it is to

21

render the pool temporarily inoperative.

22

(k)  Exceptions.--The requirements of subsections (a), (l)

23

and (m) shall not apply to injection of gas into a stratum when

24

the whole purpose of injection, referred to in this subsection

25

as testing, is to determine whether the stratum is suitable for

26

storage purposes. Testing shall be conducted only in compliance

27

with the following requirements:

28

(1)  The person testing or proposing to test shall comply

29

with all provisions and requirements of section 3231 and

30

verify the statement required to be filed by that section.

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1

(2)  If any part of the proposed storage reservoir is

2

under or within 2,000 linear feet of an operating coal mine

3

which is operating in a coal seam that extends over the

4

proposed storage reservoir or the reservoir protective area,

5

the storage operator shall give at least six months' written

6

notice to the department and coal operator of the fact that

7

injection of gas for testing purposes is proposed.

8

(3)  The coal operator affected may at any time file

9

objections with the department, whereupon the department

10

shall fix a time and place for a conference under section

11

3251, not more than ten days from the date of the notice to

12

the storage operator. At the conference, the storage operator

13

and the objecting party shall attempt to agree, subject to

14

approval of the department, on the questions involved. If an

15

agreement cannot be reached, the department may issue an

16

appropriate order.

17

(4)  If at any time a proposed storage reservoir being

18

tested comes under or within 2,000 linear feet of an

19

operating coal mine because of extension of the storage

20

reservoir being tested or because of extension or

21

establishment or reestablishment of the operating coal mine,

22

the requirements of this subsection shall immediately become

23

applicable to the testing.

24

(l)  Storage reservoirs near operating coal mines.--A person

25

who proposes to establish a storage reservoir under or within

26

2,000 linear feet of a coal mine operating in a coal seam that

27

extends over the storage reservoir or the reservoir protective

28

area shall, prior to establishing the reservoir, and in addition

29

to complying with section 3231 and subsection (a), file the

30

verified statement required by subsection (b) and fully comply

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1

with any order of the department in the manner provided under

2

subsection (b) or (c) before commencing operation of the storage

3

reservoir. After the person proposing to operate the storage

4

reservoir complies with the requirements of this subsection and

5

commences operations, the person shall continue to be subject to

6

all provisions of this chapter.

7

(m)  Gas storage reservoirs.--If a gas storage reservoir is

8

in operation on April 18, 1985, and at any time thereafter it is

9

under or within 2,000 linear feet of an operating coal mine, or

10

if a gas storage reservoir is put in operation after April 18,

11

1985, and at any time after storage operations begin it is under

12

or within 2,000 linear feet of an operating coal mine, the

13

storage operator shall comply with all of the provisions of this

14

section, except that:

15

(1)  the time for filing the verified statement under

16

subsection (b) shall be 60 days after the date stated in the

17

notice filed by the coal operator under section 3232(d) and

18

(e) (relating to reporting requirements for coal mining

19

operations);

20

(2)  the coal operator shall give notice of the delay to

21

the department;

22

(3)  the department shall, upon the request of the

23

storage operator, extend the time for filing the statement by

24

the additional time which will be required to extend or

25

establish or reestablish the operating coal mine to a point

26

within 2,000 linear feet of the reservoir;

27

(4)  the verified statement shall also indicate that the

28

map referred to in section 3231(a) has been currently amended

29

as of the time of the filing of the statement; and

30

(5)  the person operating the storage reservoir shall

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1

continue to be subject to all of the provisions of this

2

chapter.

3

(n)  Failure to comply with order.--If, in any proceeding

4

under this chapter, the department determines that an operator

5

of a storage reservoir has failed to comply with a lawful order

6

issued under this chapter, the department may require the

7

storage operator to suspend operation of the reservoir and

8

withdraw the gas from it until the violation is remedied, in

9

which case the storage operator, limited by due diligence

10

insofar as existing facilities utilized to remove gas from the

11

reservoir will permit, shall:

12

(1)  if possible, remove the amount required by the

13

department to be removed; or

14

(2)  in any event, remove the maximum amount which can be

15

withdrawn in accordance with recognized engineering and

16

operating procedures.

17

(o)  Prevention of escape of gas.--In addition to initial

18

compliance with other provisions of this chapter and lawful

19

orders issued under this chapter, it shall be the duty, at all

20

times, of a person owning or operating a storage reservoir

21

subject to this chapter to keep all wells drilled into or

22

through the storage stratum in a condition, and operate the

23

wells in a manner, which is designed to prevent the escape of

24

gas out of the storage reservoir and its facilities, and to

25

operate and maintain the storage reservoir and its facilities in

26

the manner prescribed by regulation of the department and at a

27

pressure that will prevent gas from escaping from the reservoir

28

or its facilities. This duty shall not be construed to include

29

inability to prevent the escape of gas when escape results from

30

an act of God or a person not under the control of the storage

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1

operator, except that this exception does not apply to a well

2

which the storage operator has failed to locate and make known

3

to the department. If an escape of gas results from an act of

4

God or a person not under the control of the storage operator,

5

the storage operator shall be under the duty to take any action

6

reasonably necessary to prevent further escape of gas out of the

7

storage reservoir and its facilities.

8

§ 3235.  Inspection of facilities and records.

9

(a)  General rule.--The person operating a storage reservoir

10

affected by this chapter shall, at all reasonable times, be

11

permitted to inspect applicable records and facilities of a coal

12

mine overlying the storage reservoir or reservoir protective

13

area. The person operating a coal mine affected by this chapter

14

shall, at all reasonable times, be permitted to inspect

15

applicable records and facilities of a storage reservoir

16

underlying the coal mine.

17

(b)  Order.--If a storage operator or coal operator subject

18

to subsection (a) refuses to permit inspection of records or

19

facilities, the department may, on its own motion or on

20

application of the party seeking inspection, after reasonable

21

written notice and a hearing if requested by an affected party,

22

order inspection.

23

§ 3236.  Reliance on maps and burden of proof.

24

(a)  General rule.--In determining whether a coal mine or

25

operating coal mine is or will be within a particular distance

26

from a storage reservoir which is material under this chapter,

27

the owner or operator of the coal mine and the storage operator

28

may rely on the most recent map of the storage reservoir or coal

29

mine filed by the other party with the department.

30

(b)  Accuracy.--Where accuracy of a map or data filed under

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1

this chapter is in issue, the person that filed the map or data

2

shall:

3

(1)  at the request of an objecting party, disclose the

4

information and method used to compile the map or data, along

5

with any information available to the person that might

6

affect current validity of the map or data; and

7

(2)  have the burden of proving accuracy of the map or

8

data.

9

§ 3237.  Exemptions and prohibitions.

10

(a)  Inapplicability of chapter to certain coal mines.--This

11

chapter shall not apply to the following types of coal mines:

12

(1)  Strip mines and auger mines operating from the

13

surface.

14

(2)  Mines to which the former act of June 9, 1911

15

(P.L.756, No.319), entitled "An act to provide for the health

16

and safety of persons employed in and about the bituminous

17

coal-mines of Pennsylvania, and for the protection and

18

preservation of property connected therewith," did not apply

19

in accordance with section 3 of that act.

20

(3)  Mines to which the former act of June 2, 1891

21

(P.L.176, No.177), entitled "An act to provide for the health

22

and safety of persons employed in and about the anthracite

23

coal mines of Pennsylvania and for the protection and

24

preservation of property connected therewith," did not apply

25

in accordance with section 32 of that act.

26

(b)  Workable coal seams.--Injection of gas for storage

27

purposes in a workable coal seam, whether or not it is being or

28

has been mined, is prohibited.

29

(b.1)  Original extraction.--Nothing in this chapter

30

prohibits original extraction of natural gas, crude oil or coal.

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1

(c)  Certain rock formations.--Nothing in this chapter

2

applies to storage of gas or liquids in storage reservoirs

3

excavated in rock formations specifically for storage purposes.

4

SUBCHAPTER D

5

EMINENT DOMAIN

6

Sec.

7

3241.  Appropriation of interest in real property.

8

§ 3241.  Appropriation of interest in real property.

9

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

10

corporation empowered to transport, sell or store natural gas or

11

manufactured gas in this Commonwealth may appropriate an

12

interest in real property located in a storage reservoir or

13

reservoir protective area for injection, storage and removal

14

from storage of natural gas or manufactured gas in a stratum

15

which is or previously has been commercially productive of

16

natural gas. The right granted by this subsection shall not be

17

exercised to acquire any of the following for the purpose of gas

18

storage:

19

(1)  An interest in a geological stratum within the area

20

of a proposed storage reservoir or reservoir protective area:

21

(i)  unless the original recoverable oil or gas

22

reserves in the proposed storage reservoir have been

23

depleted or exhausted by at least 80%; and

24

(ii)  until the condemnor has acquired the right, by

25

grant, lease or other agreement, to store gas in the

26

geological stratum underlying at least 75% of the area of

27

the proposed storage reservoir.

28

(2)  An interest in a geological stratum within the area

29

of a proposed storage reservoir or reservoir protective area

30

owned directly or indirectly by a gas company or other person

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1

engaged in local distribution of natural gas, if the interest

2

to be acquired is presently being used by the gas company or

3

other person for storage of gas in performance of service to

4

customers in its service area.

5

(b)  Construction.--The following shall apply:

6

(1)  This chapter authorizes appropriation within a

7

storage reservoir or reservoir protective area of the

8

following:

9

(i)  a stratum to be used for storage;

10

(ii)  any gas reserve remaining a stratum to be used

11

for storage;

12

(iii)  an active or abandoned well or wells drilled

13

into a stratum to be used for storage; and

14

(iv)  the right to enter upon and use the surface of

15

lands to:

16

(A)  locate, recondition, maintain, plug or

17

replug an active or abandoned well; or

18

(B)  operate a well drilled into or through a

19

stratum to be used for storage.

20

(2)  This chapter does not preclude the owner of

21

nonstorage strata from drilling wells to produce oil or gas

22

from a stratum above or below the storage stratum

23

appropriated by another person, but a person appropriating or

24

holding storage rights may access, inspect and examine the

25

drilling, the completed well, drilling logs and other records

26

relating to drilling, equipping or operating the well in

27

order to determine whether the storage stratum is being

28

adequately protected to prevent escape of gas stored therein.

29

(3)  This chapter does not authorize appropriation of a

30

coal or coal measure, regardless of whether it is being

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1

mined, or an interest in the coal mine or coal measure.

2

(c)  Activities through appropriated strata.--A person

3

drilling, operating, using or plugging a well through a stratum

4

appropriated under this chapter shall drill, case, equip,

5

operate or plug it in a manner designed to prevent avoidable

6

escape of gas that may be stored in the storage stratum. Upon

7

violation of this subsection, the court of common pleas of the

8

county where the land in question is situated may compel

9

compliance by injunction or grant other appropriate relief in an

10

action brought by the person storing gas in the storage stratum.

11

(d)  Prerequisites to appropriation.--Before appropriating

12

under this chapter, a person shall attempt to agree with owners

13

of interests in the real property involved as to damages payable

14

for rights and interests to be appropriated, if the owners can

15

be found and are sui juris. If the parties fail to agree, the

16

person shall tender a surety bond to the owners to secure them

17

in the payment of damages. If the owners refuse to accept the

18

bond, cannot be found or are not sui juris, and after reasonable

19

notice to the owners by advertisement or otherwise, the bond

20

shall be presented for approval to the court of common pleas of

21

the county in which the tract of land is situated. Upon the

22

approval of the bond by the court, the right of the person to

23

appropriate in accordance with the provisions of this chapter

24

shall be complete.

25

(e)  Appointment of viewers.--Upon petition of a property

26

owner or a person appropriating under this chapter, the court

27

shall:

28

(1)  appoint three disinterested freeholders of the

29

county to serve as viewers to assess damages to be paid to

30

the property owner for the rights appropriated;

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1

(2)  fix a time for the parties to meet;

2

(3)  provide notice to the parties; and

3

(4)  after the viewers have filed their report, fix

4

reasonable compensation for the service of the viewers.

5

(f)  Appeal.--Within 20 days after the filing of a report by

6

viewers appointed under subsection (e), a party may appeal and

7

proceed to a jury trial as in ordinary cases.

8

(g)  Requirements.--Nothing in this section shall relieve a

9

person operating a storage reservoir from the requirements of

10

this chapter.

11

SUBCHAPTER E

12

ENFORCEMENT AND REMEDIES

13

Sec.

14

3251.  Conferences.

15

3252.  Public nuisances.

16

3253.  Enforcement orders.

17

3254.  Restraining violations.

18

3254.1.  Well control emergency response cost recovery.

19

3255.  Penalties.

20

3256.  Civil penalties.

21

3257.  Existing rights and remedies preserved and cumulative

22

remedies authorized.

23

3258.  Inspection and production of materials, witnesses,

24

depositions and rights of entry.

25

3259.  Unlawful conduct.

26

3260.  Collection of fines and penalties.

27

3261.  Third party liability.

28

3262.  Inspection reports.

29

§ 3251.  Conferences.

30

(a)  General rule.--The department or any person having a

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1

direct interest in a matter subject to this chapter may, at any

2

time, request that a conference be held to discuss and attempt

3

to resolve by mutual agreement a matter arising under this

4

chapter. Unless otherwise provided, conferences shall be held

5

within 90 days after a request is received by the department,

6

and notice shall be given by the department to all interested

7

parties. A representative of the department shall attend the

8

conference and the department may make recommendations. An

9

agreement reached at a conference shall be consistent with this

10

chapter and, if approved by the department, it shall be reduced

11

to writing and shall be effective, unless reviewed and rejected

12

by the department within ten days after the conference. The

13

record of an agreement approved by the department shall be kept

14

on file by the department and copies shall be furnished to the

15

parties. The scheduling of a conference shall have no effect on

16

the department's authority to issue orders to compel compliance

17

with this chapter.

18

(b)  Notification.--When a coal operator is to be notified of

19

a proceeding under this section, the department simultaneously

20

shall send a copy of the notice to the collective bargaining

21

representative of employees of the coal operator.

22

§ 3252.  Public nuisances.

23

A violation of section 3215.1 (relating to general

24

restrictions), 3216 (relating to well site restoration), 3217

25

(relating to protection of fresh groundwater and casing

26

requirements), 3218 (relating to protection of water supplies),

27

3219 (relating to use of safety devices) or 3220 (relating to

28

plugging requirements), or a rule, regulation, order, term or

29

condition of a permit relating to any of those sections

30

constitutes a public nuisance.

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1

§ 3253.  Enforcement orders.

2

(a)  General rule.--Except as modified by subsections (b),

3

(c) and (d), the department may issue orders necessary to aid in

4

enforcement of this chapter. An order issued under this chapter

5

shall take effect upon notice, unless the order specifies

6

otherwise. The power of the department to issue an order under

7

this chapter is in addition to any other remedy available to the

8

department under this chapter or under any other law.

9

(b)  Suspension and revocation.--The department may suspend

10

or revoke a well permit or well registration for any well in

11

continuing violation of this chapter, the act of June 22, 1937

12

(P.L.1987, No.394), known as The Clean Streams Law; the act of

13

July 7, 1980 (P.L.380, No.97), known as the Solid Waste

14

Management Act; any other statute administered by the

15

department; or a rule or regulation. A suspension order of the

16

department shall automatically terminate if the violation upon

17

which it is based is corrected by the operator to the

18

satisfaction of the department in order to bring the well into

19

compliance with this chapter.

20

(c)  Written notice.--Prior to suspension or revocation of a

21

well permit or registration, the department shall serve written

22

notice on the well operator or its agent, stating specifically

23

the statutory provision, rule, regulation or other reason relied

24

upon, along with factual circumstances surrounding the alleged

25

violation.

26

(d)  Immediate orders.--An order of the department requiring

27

immediate cessation of drilling operations shall be effective

28

only if authorized by the secretary or a designee.

29

(e)  Grievances.--A person aggrieved by a department order

30

issued under this section shall have the right, within 30 days

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1

of receipt of the notice, to appeal to the Environmental Hearing

2

Board.

3

§ 3254.  Restraining violations.

4

(a)  General rule.--In addition to any other remedy provided

5

in this chapter, the department may institute a suit in equity

6

in the name of the Commonwealth for an injunction to restrain a

7

violation of this chapter or rules, regulations, standards or

8

orders adopted or issued under this chapter and to restrain the

9

maintenance or threat of a public nuisance. Upon motion of the

10

Commonwealth, the court shall issue a prohibitory or mandatory

11

preliminary injunction if it finds that the defendant is

12

engaging in unlawful conduct, as defined by this chapter, or

13

conduct causing immediate and irreparable harm to the public.

14

The Commonwealth shall not be required to furnish bond or other

15

security in connection with the proceeding. In addition to an

16

injunction, the court in equity may level civil penalties as

17

specified in section 3256 (relating to civil penalties).

18

(b)  District attorney.--In addition to other remedies in

19

this chapter, upon relation of the district attorney of a county

20

affected, or upon relation of the solicitor of a municipality

21

affected, an action in equity may be brought in a court of

22

competent jurisdiction for an injunction to restrain a violation

23

of this chapter or rules and regulations promulgated under this

24

chapter or to restrain a public nuisance or detriment to health.

25

(c)  Concurrent penalties.--Penalties and remedies under this

26

chapter shall be deemed concurrent. Existence or exercise of one

27

remedy shall not prevent the department from exercising another

28

remedy at law or in equity.

29

(d)  Jurisdiction.--Actions under this section may be filed

30

in the appropriate court of common pleas or in Commonwealth

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1

Court, and those courts are hereby granted jurisdiction to hear

2

actions under this section.

3

§ 3254.1.  Well control emergency response cost recovery.

4

A person liable for a well control emergency is responsible

5

for all response costs incurred by the department to respond to

6

the well control emergency. In an action before a court of

7

competent jurisdiction, the department may recover all its

8

response costs, including the cost of regaining control of the

9

well, controlling the perimeter of the well site, preparing

10

water sprays, establishing trenches or dikes to capture runoff

11

fluids and providing the resources and equipment needs for the

12

incident.

13

§ 3255.  Penalties.

14

(a)  General violation.--A person violating a provision of

15

this chapter commits a summary offense and, upon conviction,

16

shall be sentenced to pay a fine of not more than $300 or to

17

imprisonment of not more than 90 days, or both. Each day during

18

which the violation continues is a separate and distinct

19

offense.

20

(b)  Willful violation.--A person willfully violating a

21

provision of this chapter or an order of the department issued

22

under this chapter commits a misdemeanor and, upon conviction,

23

shall be sentenced to pay a fine of not more than $5,000 or to

24

imprisonment of not more than one year, or both. Each day during

25

which the violation continues is a separate and distinct

26

offense.

27

(c)  Authority.--The department may institute a prosecution

28

against any person or municipality for a violation of this

29

chapter.

30

§ 3256.  Civil penalties.

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1

In addition to other remedies available at law or in equity

2

for a violation of this chapter, a rule or regulation of the

3

department or a departmental order, the department, after a

4

hearing, may assess a civil penalty regardless of whether the

5

violation was willful. The penalty shall not exceed $50,000 plus

6

$2,000 for each day during which the violation continues. In

7

determining the amount, the department shall consider

8

willfulness of the violation, damage or injury to natural

9

resources of this Commonwealth or their uses, endangerment of

10

safety of others, the cost of remedying the harm, savings

11

resulting to the violator as a result of the violation and any

12

other relevant factor. When the department proposes to assess a

13

civil penalty, it shall notify the person of the proposed amount

14

of the penalty. The person charged with the penalty must, within

15

30 days of notification, pay the proposed penalty in full or

16

file an appeal of the assessment with the Environmental Hearing

17

Board. Failure to comply with the time period under this section

18

shall result in a waiver of all legal rights to contest the

19

violation or the amount of the penalty. The civil penalty shall

20

be payable to the Commonwealth and collectible in any manner

21

provided at law for collection of debts. If a violator neglects

22

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

23

with interest and costs that may accrue, shall become a lien in

24

favor of the Commonwealth on the real and personal property of

25

the violator, but only after the lien has been entered and

26

docketed of record by the prothonotary of the county where the

27

property is situated. The department may at any time transmit to

28

the prothonotaries of the various counties certified copies of

29

all liens. It shall be the duty of each prothonotary to enter

30

and docket the liens of record in the prothonotary's office and

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1

index them as judgments are indexed, without requiring payment

2

of costs as a condition precedent to entry.

3

§ 3257.  Existing rights and remedies preserved and cumulative

4

remedies authorized.

5

Nothing in this chapter estops the Commonwealth or a district

6

attorney from proceeding in a court of law or in equity to abate

7

pollution forbidden under this chapter or a nuisance under

8

existing law. It is hereby declared to be the purpose of this

9

chapter to provide additional and cumulative remedies to control

10

activities related to drilling for, or production of, oil and

11

gas in this Commonwealth, and nothing contained in this chapter

12

abridges or alters rights of action or remedies existing, or

13

which existed previously, in equity or under common or statutory

14

law, criminal or civil. Neither this chapter, the grant of a

15

permit under this chapter nor an act done by virtue of this

16

chapter estops the Commonwealth, in exercising rights under

17

common or decisional law or in equity, from suppressing a

18

nuisance, abating pollution or enforcing common law or statutory

19

rights. No court of this Commonwealth with jurisdiction to abate

20

public or private nuisances shall be deprived of jurisdiction in

21

an action to abate a private or public nuisance instituted by

22

any person on grounds that the nuisance constitutes air or water

23

pollution.

24

§ 3258.  Inspection and production of materials, witnesses,

25

depositions and rights of entry.

26

(a)  General rule.--The department may make inspections,

27

conduct tests or sampling or examine books, papers and records

28

pertinent to a matter under investigation under this chapter to

29

determine compliance with this chapter. For this purpose, the

30

duly authorized agents and employees of the department may at

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1

all reasonable times enter and examine any involved property,

2

facility, operation or activity.

3

(a.1)  Preoperation inspections.--The operator may not

4

commence drilling activities until the department has conducted

5

an inspection of the unconventional well site after the

6

installation of erosion and sediment control measures. The

7

department may conduct follow-up inspections of well sites and

8

related activities to determine compliance with the act.

9

(b)  Access.--The owner, operator or other person in charge

10

of a property, facility, operation or activity under this

11

chapter, upon presentation of proper identification and purpose

12

either for inspection or to remediate or otherwise respond to a

13

well control emergency, by agents or employees of the

14

department, shall provide free and unrestricted entry and

15

access. Upon refusal, the agent or employee may obtain a search

16

warrant or other suitable order authorizing entry and

17

inspection, remediation or response. It shall be sufficient to

18

justify issuance of a search warrant authorizing examination and

19

inspection if:

20

(1)  there is probable cause to believe that the object

21

of the investigation is subject to regulation under this

22

chapter; and

23

(2)  access, examination or inspection is necessary to

24

enforce the provisions of this chapter.

25

(c)  Witnesses.--In any part of this Commonwealth, the

26

department may subpoena witnesses, administer oaths, examine

27

witnesses, take testimony and compel production of books,

28

records, maps, plats, papers, documents and other writings

29

pertinent to proceedings or investigations conducted by the

30

department under this chapter. Upon refusal to obey a subpoena

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1

by any person and on application of the department, a court may

2

enforce a subpoena in contempt proceedings. Fees for serving a

3

subpoena shall be the same as those paid to sheriffs for similar

4

services.

5

(d)  Deposition.--The department or a party to a proceeding

6

before the department may cause the deposition of a witness who

7

resides in or outside of this Commonwealth to be taken in the

8

manner prescribed by law for taking depositions in civil

9

actions.

10

(e)  Witness fee.--Witnesses summoned before the department

11

shall be paid the same fees as are paid to witnesses in courts

12

of record of general jurisdiction. Witnesses whose depositions

13

are taken under this chapter, and the officers taking those

14

depositions, shall be entitled to the same fees as those paid

15

for like services in court.

16

(f)  Purchasers.--Upon request, a purchaser of oil or gas

17

shall provide the department information necessary to determine

18

ownership of facilities from which the purchaser obtained oil or

19

gas. The information shall be kept confidential for a period of

20

five years, and the department may utilize it in enforcement

21

proceedings. The department may request information under this

22

section only when a well does not comply with section 3211(h)

23

(relating to well permits).

24

§ 3259.  Unlawful conduct.

25

It shall be unlawful for any person to:

26

(1)  Drill, alter, operate or utilize an oil or gas well

27

without a permit or registration from the department as

28

required by this chapter or in violation of rules or

29

regulations adopted under this chapter, orders of the

30

department or a term or condition of a permit issued by the

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1

department.

2

(2)  Conduct an activity related to drilling for, or

3

production of, oil and gas:

4

(i)  contrary to this chapter, rules or regulations

5

adopted under this chapter, an order of the department or

6

a term or condition of a permit issued by the department;

7

or

8

(ii)  in any manner as to create a public nuisance or

9

adversely affect public health, safety, welfare or the

10

environment.

11

(3)  Refuse, obstruct, delay or threaten an agent or

12

employee of the department acting in the course of lawful

13

performance of a duty under this chapter, including, but not

14

limited to, entry and inspection.

15

(4)  Attempt to obtain a permit or identify a well as an

16

orphan well by misrepresentation or failure to disclose all

17

relevant facts.

18

(5)  Cause abandonment of a well by removal of casing or

19

equipment necessary for production without plugging the well

20

in the manner prescribed under section 3220 (relating to

21

plugging requirements), except that the owner or operator of

22

a well may temporarily remove casing or equipment necessary

23

for production, but only if it is part of the normal course

24

of production activities.

25

§ 3260.  Collection of fines and penalties.

26

Fines and penalties shall be collectible in a manner provided

27

by law for collection of debts. If a person liable to pay a

28

penalty neglects or refuses to pay after demand, the amount,

29

together with interest and costs that may accrue, shall be a

30

judgment in favor of the Commonwealth on the person's property,

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1

but only after the judgment has been entered and docketed of

2

record by the prothonotary of the county where the property is

3

situated. The department may transmit to prothonotaries of the

4

various counties certified copies of all judgments, and it shall

5

be the duty of each prothonotary to enter and docket them of

6

record in the prothonotary's office and index them as judgments

7

are indexed, without requiring payment of costs as a condition

8

precedent to entry.

9

§ 3261.  Third party liability.

10

If a person other than a well operator renders a service or

11

product to a well or well site, that person is jointly and

12

severally liable with the well owner or operator for violations

13

of this chapter arising out of and caused by the person's

14

actions at the well or well site.

15

§ 3262.  Inspection reports.

16

The department shall post inspection reports on its publicly

17

accessible Internet website. The inspection reports shall

18

include:

19

(1)  The nature and description of violations.

20

(2)  The operator's written response to the violation, if

21

available.

22

(3)  The status of the violation.

23

(4)  The remedial steps taken by the operator or the

24

department to address the violation.

25

SUBCHAPTER F

26

MISCELLANEOUS PROVISIONS

27

Sec.

28

3271.  Well plugging funds.

29

3272.  Local ordinances.

30

3273.  Effect on department authority.

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1

3273.1.  Relationship to solid waste and surface mining.

2

3274.  Regulatory authority.

3

§ 3271. Well plugging funds.

4

(a)  Appropriation.--Fines, civil penalties and permit and

5

registration fees collected under this chapter are appropriated

6

to the department to carry out the purposes of this chapter.

7

(b)  Surcharge.--To aid in indemnifying the Commonwealth for

8

the cost of plugging abandoned wells, a $50 surcharge is added

9

to the permit fee established by the department under section

10

3211 (relating to well permits) for new wells. Money collected

11

as a result of the surcharge shall be paid into a restricted

12

revenue account in the State Treasury to be known as the

13

Abandoned Well Plugging Fund and expended by the department to

14

plug abandoned wells threatening the health and safety of

15

persons or property or pollution of waters of this Commonwealth.

16

(c)  Orphan Well Plugging Fund.--The following shall apply:

17

(1)  A restricted revenue account to be known as the

18

Orphan Well Plugging Fund is created. A $100 surcharge for

19

wells to be drilled for oil production and a $200 surcharge

20

for wells to be drilled for gas production are added to the

21

permit fee established by the department under section 3211

22

for new wells. The surcharges shall be placed in the Orphan

23

Well Plugging Fund and expended by the department to plug

24

orphan wells. If an operator rehabilitates a well abandoned

25

by another operator or an orphan well, the permit fee and the

26

surcharge for the well shall be waived.

27

(2)  The department shall study its experience in

28

implementing this section and shall report its findings to

29

the Governor and the General Assembly by August 1, 1992. The

30

report shall contain information relating to the balance of

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1

the fund, number of wells plugged, number of identified wells

2

eligible for plugging and recommendations as to alternative

3

funding mechanisms.

4

(3)  Expenditures by the department for plugging orphan

5

wells are limited to fees collected under this chapter. No

6

money from the General Fund shall be expended for this

7

purpose.

8

§ 3272.  Local ordinances.

9

Except with respect to ordinances adopted under the act of

10

July 31, 1968 (P.L.805, No.247), known as the Pennsylvania

11

Municipalities Planning Code, and the act of October 4, 1978

12

(P.L.851, No.166), known as the Flood Plain Management Act, all

13

local ordinances and enactments purporting to regulate oil and

14

gas well operations regulated by this chapter are superseded by

15

this chapter. No ordinances or enactments adopted under the

16

Pennsylvania Municipalities Planning Code or the Flood Plain

17

Management Act may contain provisions which impose conditions,

18

requirements or limitations that are inconsistent with this

19

chapter. Except as otherwise provided in 27 Pa.C.S. Ch. 33

20

(relating to oil and gas), the Commonwealth, by this chapter,

21

preempts and supersedes the regulation of oil wells and gas

22

wells.

23

§ 3273.  Effect on department authority.

24

This chapter does not affect, limit or impair any right or

25

authority of the department under the act of June 22, 1937

26

(P.L.1987, No.394), known as The Clean Streams Law; the act of

27

January 8, 1960 (1959 P.L.2119, No.787), known as the Air

28

Pollution Control Act; the act of November 26, 1978 (P.L.1375,

29

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

30

act of July 7, 1980 (P.L.380, No.97), known as the Solid Waste

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1

Management Act.

2

§ 3273.1.  Relationship to solid waste and surface mining.

3

(a)  General rule.--The obligation to obtain a permit and

4

post a bond under Articles III and V of the act of July 7, 1980

5

(P.L.380, No.97), known as the Solid Waste Management Act, and

6

to provide public notice under section 1905-A(b)(1)(v) of the

7

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

8

Administrative Code of 1929, for any pit, impoundment, method or

9

facility employed for the disposal, processing or storage of

10

residual wastes generated by the drilling of an oil or gas well

11

or from the production of wells which is located on the well

12

site, shall be considered to have been satisfied if the owner or

13

operator of the well meets the following conditions:

14

(1)  the well is permitted under the requirements of

15

section 3211 (relating to well permits) or registered under

16

section 3213 (relating to well registration and

17

identification);

18

(2)  the owner or operator has satisfied the financial

19

security requirements of section 3215 (relating to well

20

location restrictions) by obtaining a surety or collateral

21

bond for the well and well site; and

22

(3)  the owner or operator maintains compliance with this

23

chapter and applicable regulations of the Environmental

24

Quality Board.

25

(b)  Noncoal surface mining.--Obligations under the act of

26

December 19, 1984 (P.L.1093, No.219), known as the Noncoal

27

Surface Mining Conservation and Reclamation Act, or a rule or

28

regulation promulgated thereunder, for any borrow area where

29

minerals are extracted solely for the purpose of oil and gas

30

well development, including access road construction, shall be

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1

considered to have been satisfied if the owner or operator of

2

the well meets the conditions imposed under subsection (a)(1)

3

and (2) and maintains compliance with this chapter and

4

applicable regulations of the Environmental Quality Board.

5

(c)  Solid Waste Management Act.--This section does not

6

diminish or otherwise affect duties or obligations of an owner

7

or operator under the Solid Waste Management Act. This section

8

does not apply to waste classified as hazardous waste under the

9

Solid Waste Management Act or the Resource Conservation and

10

Recovery Act of 1976 (Public Law 94-580, 90 Stat. 2795, 42

11

U.S.C. § 6901 et seq.).

12

(d)  Definition.--As used in this section and sections 3216

13

(relating to well site restoration) and 3225 (relating to

14

bonding), the term "well site" means areas occupied by all

15

equipment or facilities necessary for or incidental to drilling,

16

production or plugging a well.

17

§ 3274.  Regulatory authority.

18

(a)  Existing regulations.--The rulemaking for 25 Pa. Code

19

Ch. 78 (relating to oil and gas wells) promulgated at 41 Pa.B.

20

805 (February 5, 2011), shall apply only to unconventional gas

21

wells.

22

(b)  New regulations.--The Environmental Quality Board shall

23

adopt regulations to implement this chapter.

24

CHAPTER 33

25

LOCAL ORDINANCES RELATING TO

26

OIL AND GAS OPERATIONS

27

Sec.

28

3301.  Scope of chapter.

29

3302.  Definitions.

30

3303.  Local ordinances.

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1

3304.  Review by Attorney General.

2

3305.  Civil actions.

3

3306.  Commonwealth Court masters.

4

3307.  Attorney fees and costs.

5

3308.  Sanction.

6

3309.  Provisions of local ordinances.

7

3310.  Applicability.

8

§ 3301.  Scope of chapter.

9

The purposes of this chapter are to:

10

(1)  Allow municipalities to efficiently regulate oil and

11

gas operations consistent with their authority under the act

12

of July 31, 1968 (P.L.805, No.247), known as the Pennsylvania

13

Municipalities Planning Code.

14

(2)  Foster the expeditious and efficient handling of

15

municipal oil and gas procedures.

16

(3)  Clarify the role of all Federal and State agencies

17

and municipal governments with regard to oil and gas

18

development activities.

19

§ 3302.  Definitions.

20

The following words and phrases when used in this chapter

21

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

22

context clearly indicates otherwise:

23

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

24

which individuals live or customarily work.

25

"Environment acts."  All statutes enacted by the Commonwealth

26

relating to the protection of the environment or the protection

27

of public health, safety and welfare, that are administered and

28

enforced by the department or by another Commonwealth agency,

29

including an independent agency, and all Federal statutes

30

relating to the protection of the environment, to the extent

- 134 -

 


1

those statutes regulate oil and gas operations.

2

"Local government."  A county, city, borough, incorporated

3

town or township of this Commonwealth.

4

"Local ordinance."  An ordinance adopted by a local

5

government that regulates oil and gas operations.

6

"MPC."  The act of July 31, 1968 (P.L.805, No.247), known as

7

the Pennsylvania Municipalities Planning Code.

8

"Oil and gas operations."  The term includes the following:

9

(1)  well location assessment, including seismic

10

operations, well site preparation, construction, drilling,

11

hydraulic fracturing and site restoration associated with an

12

oil or gas well of any depth;

13

(2)  water and other fluid storage or impoundment areas

14

used exclusively for oil and gas operations;

15

(3)  construction, installation, use, maintenance and

16

repair of:

17

(i)  oil and gas pipelines;

18

(ii)  natural gas compressor stations; and

19

(iii)  natural gas processing plants or facilities

20

performing equivalent functions; and

21

(4)  construction, installation, use, maintenance and

22

repair of all equipment directly associated with activities

23

specified in paragraphs (1), (2) and (3), to the extent that:

24

(i)  the equipment is necessarily located at or

25

immediately adjacent to a well site, impoundment area,

26

oil and gas pipeline, natural gas compressor station or

27

natural gas processing plant; and

28

(ii)  the activities are authorized and permitted

29

under the authority of a Federal or Commonwealth agency.

30

"Permitted use."  A use which, upon submission of notice to

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1

and receipt of a permit issued by a zoning officer or equivalent

2

official, is authorized to be conducted without restrictions

3

other than those set forth in section 3309 (relating to

4

provisions of local ordinances).

5

§ 3303.  Local ordinances.

6

(a)  General rule.--A local ordinance may only be enacted

7

pursuant to the MPC, the act of March 31, 1927 (P.L.98, No.69),

8

referred to as the Second Class City Zoning Law, or the act of

9

October 4, 1978 (P.L.851, No.166), known as the Flood Plain

10

Management Act,  as applicable, and shall provide for the

11

reasonable development of minerals within the local government

12

in accordance with the provisions of section 603(i) of the MPC

13

and this chapter.

14

(b)  Limitation.--Except as provided in this chapter, a local

15

ordinance shall not conflict with and shall not regulate oil and

16

gas operations covered by the environment acts, except to the

17

extent that the environment acts provide the authority.

18

(c)  Construction.--Nothing in this chapter shall be

19

construed to impair or infringe on the preemption provisions of

20

section 3272 (relating to local ordinances).

21

§ 3304.  Review by Attorney General.

22

(a)  Request of owner or operator.--An owner or operator of

23

an oil and gas operation, or any person having the right to

24

royalty payments under a lease of oil or gas mineral rights, may

25

request the Attorney General to review a local ordinance to

26

determine whether it allows for the reasonable development of

27

oil and gas resources in accordance with the provisions

28

specifically addressed in this chapter, the MPC and judicial

29

decisions of the Commonwealth.

30

(b)  Preenactment review.--A local government may, prior to

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1

the enactment of a local ordinance, request the Attorney General

2

to review the ordinance to determine whether it allows for the

3

reasonable development of oil and gas resources in accordance

4

with the provisions of Chapter 32 (relating to development), the

5

MPC and judicial decisions of the Commonwealth.

6

(c)  Time period for review.--Within 120 days of receiving a

7

request under subsection (a) or (b), the Attorney General shall

8

advise in writing the person that made the request whether or

9

not the Attorney General determines that the local ordinance

10

provides for the reasonable development of oil and gas reserves

11

and provide a copy of the written determination to the affected

12

local government.

13

§ 3305.  Civil actions.

14

(a)  Attorney General.--The Attorney General may bring an

15

action against a local government in Commonwealth Court to

16

invalidate or enjoin the enforcement of a local ordinance that

17

does not allow for the reasonable development of oil and gas

18

resources.

19

(b)  Private right of action.--

20

(1)  Notwithstanding any provision of 42 Pa.C.S. Ch. 85

21

Subch. C (relating to actions against local parties), any

22

person who is aggrieved by the enactment or enforcement of a

23

local ordinance that does not allow for the reasonable

24

development of oil and gas resources in accordance with the

25

provisions of section 3272 (relating to local ordinances) may

26

bring an action in Commonwealth Court to invalidate the

27

ordinance or enjoin its enforcement.

28

(2)  An aggrieved person may proceed without first

29

obtaining review of the ordinance by the Attorney General or

30

may proceed after receiving such review if the Attorney

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1

General determines that the ordinance fails to comply with

2

this chapter but declines to bring an action under subsection

3

(a).

4

(3)  In an action brought relating to the enactment or

5

enforcement of a local ordinance, the determination of the

6

Attorney General made under section 3304 (relating to review

7

by Attorney General) shall become part of the record before

8

the court.

9

§ 3306.  Commonwealth Court masters.

10

(a)  General rule.--The Commonwealth Court may promulgate

11

rules for the selection and appointment of masters on a full-

12

time or part-time basis to oversee actions brought under section

13

3305 (relating to civil actions). A master must be a member of

14

the bar of this Commonwealth. The number and compensation of

15

masters shall be fixed by the Commonwealth Court, and their

16

compensation shall be paid by the Commonwealth.

17

(b)  Procedure.--

18

(1)  The Commonwealth Court may direct that a hearing in

19

an action brought under section 3305 be conducted in the

20

first instance by the master in the manner provided for in

21

this section.

22

(2)  Upon the conclusion of a hearing before a master,

23

the master shall transmit written findings and

24

recommendations for disposition to the president judge.

25

Prompt written notice and copies of the findings and

26

recommendations shall be given to the parties to the

27

proceeding.

28

(3)  The findings and recommendations of the master shall

29

become the findings and order of the Commonwealth Court upon

30

written confirmation by the president judge. A rehearing may

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1

be ordered by the president judge at any time upon cause

2

shown.

3

§ 3307.  Attorney fees and costs.

4

In an action brought under section 3305 (relating to civil

5

actions), the court may do any of the following:

6

(1)  If the court determines that the local government

7

enacted or enforced a local ordinance with willful or

8

reckless disregard for the limitation of authority

9

established under State law, it may order the local

10

government to pay the plaintiff reasonable attorney fees and

11

other reasonable costs incurred by the plaintiff in

12

connection with the action.

13

(2)  If the court determines that the action brought by

14

the plaintiff was frivolous or was brought without

15

substantial justification in claiming that the local

16

ordinance in question was contrary to the requirements of

17

this chapter or Chapter 32 (relating to development), it may

18

order the plaintiff to pay the local government reasonable

19

attorney fees and other reasonable costs incurred by the

20

local government in defending the action.

21

§ 3308.  Sanction.

22

If the Attorney General, the Commonwealth Court or the

23

Supreme Court determines that a local ordinance fails to provide

24

for the reasonable development of oil and gas resources, the

25

local government enacting or enforcing the local ordinance shall

26

be immediately ineligible to receive any funds collected under

27

Chapter 23 (relating to drilling impact fee). The local

28

government shall remain ineligible to receive funds under

29

Chapter 23 until the local government amends or repeals its

30

local ordinance in accordance with this chapter.

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1

§ 3309.  Provisions of local ordinances.

2

In order to allow for the reasonable development of oil and

3

gas resources, a local ordinance must, in addition to complying

4

with this chapter, Chapter 32 (relating to development), the MPC

5

and judicial decisions of the Commonwealth:

6

(1)  Allow well and pipeline location assessment

7

operations, including seismic operations and related

8

activities conducted in accordance with all applicable

9

Federal and State laws and regulations relating to the

10

storage and use of explosives throughout every local

11

government.

12

(2)  Impose conditions, requirements or limitations on

13

oil and gas operations that are no more stringent than

14

similar conditions, requirements or limitations imposed on

15

construction activities for other land development within the

16

zoning district where the oil and gas operations are

17

situated.

18

(3)  Impose conditions, requirements or limitations on

19

the height of permanent structures, setbacks from property

20

lines, screening and fencing, lighting and noise relating to

21

oil and gas operations that are no more stringent than

22

similar conditions, requirements or limitations imposed on

23

industrial uses or what is allowed within the particular

24

zoning district within the local government where the oil and

25

gas operations are situated or stipulated in or set forth in

26

State statute or regulations pertaining to oil and gas

27

operations.

28

(4)  Have a review period for permitted uses that does

29

not exceed 30 days for complete submissions or that exceeds

30

120 days for conditional uses.

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1

(5)  Authorize oil and gas operations, other than

2

activities in or at impoundment areas, compressor stations

3

and processing plants, as a permitted use in all zoning

4

districts.

5

(5.1)  Notwithstanding section 3215 (relating to well

6

location restrictions) the oil and gas operations under

7

paragraph (5) may be prohibited, or permitted only as a

8

conditional use within a residential district where a well

9

site cannot be placed so that the wellhead is at least 500

10

feet from any existing building. In a residential district,

11

all of the following apply:

12

(i)  A well site may not be located so that the outer

13

edge of the well pad is closer than 300 feet from an

14

existing building.

15

(ii)  Except as set forth in paragraph (5) and in

16

this paragraph, oil and gas operations, other than the

17

placement, use and repair of oil and gas pipelines, water

18

pipelines, access roads or security facilities, may not

19

take place within 300 feet of an existing building.

20

(6)  Authorize impoundment areas used for oil and gas

21

operations as a permitted use in all zoning districts,

22

provided that the edge of any impoundment area shall not be

23

located closer than 300 feet from an existing building.

24

(7)  Authorize natural gas compressor stations as a

25

permitted use in agriculture and industrial zoning districts

26

and as a conditional use in all other zoning districts, if

27

the natural gas compressor building meets the following

28

conditions:

29

(i)  is located 750 feet or more from the nearest

30

existing building or 200 feet from the nearest lot line,

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1

whichever is greater, unless waived by the owner of the

2

building or adjoining lot; and

3

(ii)  does not exceed a noise standard of 60dbA at

4

the nearest property line or the applicable standard

5

imposed by Federal law, whichever is lesser.

6

(8)  Authorize natural gas processing plants as a

7

permitted use in an industrial zoning district and as

8

conditional uses in agricultural zoning districts, if the

9

natural gas processing plant buildings meet the following

10

conditions:

11

(i)  Unless there is a waiver by the owner of the

12

building or adjoining lot, the natural gas processing

13

plant building is located at the greater of:

14

(A)  at least 750 feet from the nearest existing

15

building; or

16

(B)  at least 200 feet from the nearest lot line.

17

(ii)  The noise level of the natural gas processing

18

plant at the property line does not exceed the lesser of:

19

(A)  a noise standard of 60dbA; or

20

(B)  the applicable standard imposed by Federal

21

law.

22

(9)  Impose restrictions on vehicular access routes for

23

overweight vehicles only as authorized under 75 Pa.C.S.

24

(relating to vehicles) or the MPC.

25

(10)  Does not attempt to impose limits or conditions on

26

subterranean operations or hours of operation.

27

§ 3310.  Applicability.

28

This chapter shall apply to the enforcement of local

29

ordinances existing on the date of this section and to the

30

enactment or enforcement of local ordinances enacted on or after

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1

the effective date of this chapter.

2

Section 3.  The addition of 27 Pa.C.S. Ch. 33 Subch. B is a

3

continuation of the former act of December 15, 1955 (P.L.865,

4

No.256), entitled "An act requiring rents and royalties from oil

5

and gas leases of Commonwealth land to be placed in a special

6

fund to be used for conservation, recreation, dams and flood

7

control; authorizing the Secretary of Forests and Waters to

8

determine the need for and location of such projects and to

9

acquire the necessary land." The following apply:

10

(1)  Except as otherwise provided in 27 Pa.C.S. Ch. 33

11

Subch. B, all activities initiated under the former act of

12

December 15, 1955 (P.L.865, No.256) shall continue and remain

13

in full force and effect and may be completed under 27

14

Pa.C.S. Ch. 33 Subch. B. Resolutions, orders, regulations,

15

rules and decisions which were made under the former act of

16

December 15, 1955 (P.L.865, No.256) and which are in effect

17

on the effective date of this section shall remain in full

18

force and effect until revoked, vacated or modified under 27

19

Pa.C.S. Ch. 33 Subch. B. Contracts, obligations and

20

agreements entered into under the former act of December 15,

21

1955 (P.L.865, No.256) are not affected nor impaired by the

22

repeal of the former act of December 15, 1955 (P.L.865,

23

No.256).

24

(2)  Except as set forth in paragraph (3), any difference

25

in language between 27 Pa.C.S. Ch. 33 Subch. B and the former

26

act of December 15, 1955 (P.L.865, No.256) is intended only

27

to conform to the style of the Pennsylvania Consolidated

28

Statutes and is not intended to change or affect the

29

legislative intent, judicial construction or administrative

30

interpretation and implementation of the former act of

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1

December 15, 1955 (P.L.865, No.256).

2

(3)  Paragraph (2) does not apply to 27 Pa.C.S. §§ 3301,

3

3302(b)(3) and 3305.

4

Section 4.  Repeals are as follows:

5

(1)  The General Assembly declares that the repeal under

6

paragraph (2) is necessary to effectuate the addition of 27

7

Pa.C.S. Ch. 33.

8

(2)  The act of December 15, 1955 (P.L.865, No.256),

9

entitled "An act requiring rents and royalties from oil and

10

gas leases of Commonwealth land to be placed in a special

11

fund to be used for conservation, recreation, dams, and flood

12

control; authorizing the Secretary of Forests and Waters to

13

determine the need for and location of such projects and to

14

acquire the necessary land," is repealed.

15

(3)  The General Assembly declares that the repeal under

16

paragraph (4) is necessary to effectuate the addition of 58

17

Pa.C.S. Ch. 32.

18

(4)  The act of December 19, 1984 (P.L.1140, No.223),

19

known as the Oil and Gas Act, is repealed.

20

Section 5.  The addition of 58 Pa.C.S. Ch. 32 is a

21

continuation of the act of December 19, 1984 (P.L.1140, No.223),

22

known as the Oil and Gas Act. The following apply:

23

(1)  Except as otherwise provided in 58 Pa.C.S. Ch. 32,

24

all activities initiated under the Oil and Gas Act shall

25

continue and remain in full force and effect and may be

26

completed under 58 Pa.C.S. Ch. 32. Orders, regulations, rules

27

and decisions which were made under the Oil and Gas Act and

28

which are in effect on the effective date of section 2(2) of

29

this act shall remain in full force and effect until revoked,

30

vacated or modified under 58 Pa.C.S. Ch. 32. Contracts,

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1

obligations and collective bargaining agreements entered into

2

under the Oil and Gas Act are not affected nor impaired by

3

the repeal of the Oil and Gas Act.

4

(2)  Except as set forth in paragraph (3), any difference

5

in language between 58 Pa.C.S. Ch. 32 and the Oil and Gas Act

6

is intended only to conform to the style of the Pennsylvania

7

Consolidated Statutes and is not intended to change or affect

8

the legislative intent, judicial construction or

9

administration and implementation of the Oil and Gas Act.

10

(3)  Paragraph (2) does not apply to the addition of 58

11

Pa.C.S. §§ 3203, 3211, 3212.1, 3215, 3215.1, 3216, 3218,

12

3219.1, 3222, 3225, 3227, 3252, 3253, 3254.1, 3256, 3258,

13

3262, 3272 and 3274.

14

(4)  It is not the intent of the General Assembly to

15

change, repeal or otherwise affect any of the provisions of

16

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

17

the Coal and Gas Resource Coordination Act, or to change,

18

repeal or otherwise affect any of the provisions of the act

19

of January 26, 2011 (P.L.7, No.2), entitled "An act amending

20

the act of December 18, 1984 (P.L.1069, No.214), entitled 'An

21

act requiring coordination of coal mine and gas well

22

operators; authorizing Department of Environmental Resources

23

enforcement powers; and providing penalties,' further

24

providing for definitions, for permits, for permit

25

application, for minimum distance between gas wells, for well

26

class designation and for coordination of gas well drilling

27

through active coal mines; providing for a pillar support

28

study; and further providing for plugging gas wells

29

penetrating workable coal seams, for penalties and for

30

validity of other laws," which amended the Coal and Gas

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1

Resource Coordination Act.

2

Section 5.1.  The addition of 58 Pa.C.S. § 3215(g)(2) shall

3

expire three years after the effective date of this act.

4

Section 6.  This act shall take effect in 60 days.

5

Section 1.  Title 58 of the Pennsylvania Consolidated

<--

6

Statutes is amended by adding parts to read:

7

PART I

8

(RESERVED)

9

PART II

10

OVERSIGHT AND DEVELOPMENT

11

Chapter

12

23.  Drilling Impact Fee

13

25.  Natural Gas Energy Development Program

14

31.  (Reserved)

15

32.  Regulation

16

33.  Local Ordinances Relating to Oil and Gas Operations

17

CHAPTER 23

18

DRILLING IMPACT FEE

19

Sec.

20

2301.  Definitions.

21

2302.  Shale Impact Fee.

22

2303.  Administration.

23

2304.  Well information.

24

2305.  Duties of department.

25

2306.  (Reserved).

26

2307.  Commission.

27

2308.  Enforcement.

28

2309.  Enforcement orders.

29

2310.  Administrative penalties.

30

2311.  (Reserved).

- 146 -

 


1

2312.  Recordkeeping.

2

2313.  Examinations.

3

2314.  Distribution of fee.

4

2315.  Statewide initiatives.

5

2316.  Diverse business participation.

6

2317.  Applicability.

7

2318.  Expiration.

8

§ 2301.  Definitions.

9

The following words and phrases when used in this chapter

10

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

11

context clearly indicates otherwise:

12

"Account."  The Shale Impact Account.

13

"Average annual price of natural gas."  The arithmetic mean

14

of the New York Mercantile Exchange (NYMEX) Henry Hub settled

15

price on the last trading day of each month of a calendar year

16

as reported by the Wall Street Journal for the 12-month period

17

ending December 31.

18

"Commission."  The Pennsylvania Public Utility Commission.

19

"Department."  The Department of Environmental Protection of

20

the Commonwealth.

21

"Eligible applicant."  A county, municipality, council of

22

governments, watershed organization, institution of higher

23

education, nonprofit organization or an authorized organization

24

as defined in 27 Pa.C.S. § 6103 (relating to definitions).

25

"Fee."  The Shale Impact Fee imposed under section 2302 

26

(relating to Shale Impact Fee).

27

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

28

streets most recently certified by the Department of

29

Transportation as eligible for distribution of liquid fuels

30

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

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1

referred to as the Liquid Fuels Tax Municipal Allocation Law.

2

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

3

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

4

hydrocarbon gases, primarily methane, and possibly including

5

ethane, propane, butane, pentane, carbon dioxide, oxygen,

6

nitrogen and hydrogen sulfide and other gas species. The term

7

includes natural gas from oil fields known as associated gas or

8

casing head gas, natural gas fields known as nonassociated gas,

9

coal beds, shale beds and other formations. The term does not

10

include coal bed methane.

11

"Natural gas liquids."  Hydrocarbons in natural gas which are

12

separated from the gas as liquids through the process of

13

absorption, condensation, adsorption or other methods in gas

14

processing of cycling plants.

15

"Number of producing unconventional wells."  The most recent

16

numerical count of producing unconventional wells on the

17

inventory maintained and provided to the commission by the

18

department as of the last day of each month.

19

"Price adjustment factor."  One of a range of numerical

20

values used to compute the adjusted fee under section 2302 

21

(relating to Shale Impact Fee). The price adjustment factor

22

shall be determined as follows:

23

(1)  If the average annual price of natural gas is less

24

than $5.01, the price adjustment factor shall be 1.0.

25

(2)  If the average annual price of natural gas is $5.01

26

to $6.00, the price adjustment factor shall be 1.25.

27

(3)  If the average annual price of natural gas is $6.01

28

to $7.00, the price adjustment factor shall be 1.75.

29

(4)  If the average annual price of natural gas is $7.01

30

to $8.00, the price adjustment factor shall be 2.25.

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1

(5)  If the average annual price of natural gas is

2

greater than $8.00, the price adjustment factor shall be

3

2.75.

4

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

5

company that holds a permit or other authorization to engage in

6

the business of severing natural gas for sale, profit or

7

commercial use from an unconventional well in this Commonwealth.

8

The term shall not include a producer that severs natural gas

9

from a site used to store natural gas that did not originate

10

from the site.

11

"Stripper well."  A gas well incapable of producing more than

12

90,000 cubic feet of gas per day during a calendar month,

13

including production from all zones and multilateral well bores

14

at a single well, without regard to whether the production is

15

separately metered.

16

"Unconventional formation."  A geological shale formation

17

existing below the base of the Elk Sandstone or its geologic

18

equivalent stratigraphic interval where natural gas generally

19

cannot be produced at economic flow rates or in economic volumes

20

except by vertical or horizontal well bores stimulated by

21

hydraulic fracture treatments or by using multilateral well

22

bores or other techniques to expose more of the formation of the

23

well bore.

24

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

25

for the purpose of or to be used for the production of natural

26

gas from an unconventional formation.

27

"Vertical gas well."  An unconventional well which begins as

28

a vertical linear bore and is not intentionally deviated from

29

the vertical.

30

§ 2302.  Shale Impact Fee.

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1

(a)  Imposition.--Beginning January 1, 2011, there shall be

2

imposed a Shale Impact Fee on each unconventional well producing

3

natural gas in this Commonwealth. The fee under this section

4

shall not apply to a stripper well.

5

(b)  Components.--Prior to the adjustment under subsection

6

(c), the fee shall consist of an annual base fee for each

7

unconventional well as follows:

8

(1)  For the first year of production, the fee shall be

9

$50,000.

10

(2)  For the second year of production, the fee shall be

11

$40,000.

12

(3)  For the third year of production, the fee shall be

13

$30,000.

14

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

15

year of production, the fee shall be $20,000.

16

(5)  For the eleventh year of production through the

17

twentieth year, the fee shall be $10,000.

18

(c)  Annual adjustment.--

19

(1)  The fee shall be adjusted by multiplying the base

20

fee amount times the price adjustment factor rounded to the

21

nearest $100.

22

(2)  The fee for a vertical gas well shall not be subject

23

to adjustment under paragraph (1) and shall be computed as

24

follows:

25

(i)  The fee for a vertical gas well capable of

26

producing more than 180,000 cubic feet of gas per day

27

during a calendar month shall be one-half of the amounts

28

under subsection (b).

29

(ii)  The fee for a vertical gas well capable of

30

producing more than 90,000 but less than 180,000 cubic

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1

feet of gas per day during a calendar month shall be one-

2

fourth of the amounts under subsection (b).

3

(d)  Restimulated wells.--

4

(1)  A well which after restimulation qualifies as a

5

stripper well shall not be subject to this subsection.

6

(2)  The year in which the restimulation occurs shall be

7

considered the first year of production for purposes of

8

imposing the fee under subsection (b) if:

9

(i)  a producer restimulates a previously stimulated

10

unconventional well following the tenth year of

11

production by:

12

(A)  hydraulic fracture treatments;

13

(B)  using additional multilateral well bores;

14

(C)  drilling deeper into an unconventional

15

formation; or

16

(D)  other techniques to expose more of the

17

formation of the well bore; and

18

(ii)  the restimulation results in a substantial

19

increase in production.

20

(3)  As used in this subsection, the term "substantial

21

increase in production" means an increase in production

22

amounting to more than 90,000 cubic feet of gas per day

23

during a calendar month. 

24

(d.1)  Reopened wells.--If a producer reopens a previously

25

capped well or unconventional well and places the well into

26

production, all of the following apply:

27

(1)  The years during which the well or unconventional

28

well was capped shall not be considered as a year of

29

production.

30

(2)  The fee shall be reinstated based upon the actual

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1

year of production under subsections (b) and (d).

2

(e)  Cessation.--Payments of the annual fee shall cease upon

3

certification to the department by the operator that the

4

unconventional well has ceased production and has been plugged

5

according to the regulations established by the department.

6

§ 2303.  Administration.

7

(a)  Commission.--On or before January 31 of each year, the

8

commission shall calculate and determine the average annual

9

price of natural gas for the previous calendar year.

10

(b)  Notice.--Notice of the average annual price and the

11

annual fee schedule per well shall be provided to producers

12

operating unconventional wells and shall be published on the

13

commission's Internet website.

14

(c)  Method.--If publication of the New York Mercantile

15

Exchange (NYMEX) Henry Hub settled price is discontinued, the

16

average annual price of natural gas then in effect shall not be

17

adjusted until a comparable method to determine the average

18

annual price of natural gas is adopted by commission rule. If

19

the base data of the NYMEX Henry Hub settled price is

20

substantially revised, the commission shall make appropriate

21

changes to ensure that the average annual price of natural gas

22

is reasonably consistent with the result that would have been

23

attained had the substantial revision not been made.

24

(d)  Report.--By March 1, 2012, and each March 1 thereafter,

25

each producer shall submit a production report to the commission

26

on a form prescribed by the commission for the previous calendar

27

year. The report shall include the following:

28

(1)  Annual units of production severed by the producer

29

for each unconventional well for the reporting period.

30

(2)  The number of producing unconventional wells of a

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1

producer in each county and municipality.

2

(e)  Fee for 2011.--For calendar year 2011, the fee due shall

3

be paid as follows:

4

(1)  Fifty percent of the fee shall be paid by March 1,

5

2012.

6

(2)  Fifty percent of the fee shall be paid by June 1,

7

2012.

8

(f)  Fee due date.--Except as provided under subsection (e),

9

the fee shall be due on March 1 and each year thereafter. The

10

fee shall become delinquent if not remitted to the commission by

11

the due date.

12

(g)  Costs of commission.--

13

(1)  Within 30 days of the effective date of this

14

subsection, and each year thereafter, the commission may

15

impose an annual fee not to exceed $100 per well on each

16

reporting producer to pay for the actual costs of the

17

commission to administer and enforce this chapter and Chapter

18

25 (relating to Natural Gas Energy Development Program).

19

(2)  By March 31, 2012, and each year thereafter, the

20

commission shall determine for the preceding calendar year

21

the amount of its actual expenditures directly attributable

22

to the administration and enforcement of this chapter and

23

Chapter 25. The commission shall subtract the amount of fees

24

collected under paragraph (1) in that calendar year and

25

assess any remaining balance on all producers subject to the

26

impact fee in proportion to the number of wells owned by each

27

producer.

28

(3)  Each producer shall be assessed for and shall pay to

29

the commission that proportion of the amount determined under

30

paragraph (2) and allocated to the producer for that year.

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1

§ 2304.  Well information.

2

(a)  List.--Within 30 days of the effective date of this

3

section, the department shall provide the commission with a list

4

of all unconventional wells that have received a drilling permit

5

from the department. The department shall update the list and

6

provide it to the commission on a monthly basis.

7

(b)  Updates.--A producer subject to the fee shall notify the

8

commission of the following within 30 days after a calendar

9

month in which the change occurs:

10

(1)  The initiation of production at an unconventional

11

well.

12

(2)  The removal of an unconventional well from

13

production.

14

§ 2305.  Duties of department.

15

(a)  Confirmation of payment.--Prior to issuing a permit to

16

drill an unconventional well in this Commonwealth, the

17

department shall determine whether the producer has paid all

18

fees owed for an existing well under section 2302 (relating to

19

Shale Impact Fee).

20

(b)  Prohibition.--The department shall not issue a permit to

21

drill an unconventional well until all fees owed under section

22

2302 that are not in dispute have been paid to the commission.

23

(c)  Payment of fees.--The commission shall provide the

24

department with information necessary to determine that the

25

producer has paid all fees owed for an existing well under

26

section 2302.

27

§ 2306.  (Reserved).

28

§ 2307.  Commission.

29

(a)  Powers.--The commission shall have the authority to make

30

all inquiries and determinations necessary to calculate and

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1

collect the fee imposed under this chapter, including, if

2

applicable, interest and penalties.

3

(b)  Notice.--If the commission determines that the fee has

4

not been paid in full, it may issue a notice of the amount due

5

and demand for payment and shall set forth the basis for the

6

determination.

7

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

8

be sent to the producer via certified mail.

9

(d)  Time period.--Except as set forth in subsection (e), the

10

commission may challenge the amount of a fee paid within three

11

years after the date the report under section 2303(d) (relating

12

to administration) is filed.

13

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

14

false or fraudulent report with the intent to evade the fee, an

15

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

16

§ 2308.  Enforcement.

17

(a)  Assessment.--The commission shall assess interest on any

18

delinquent fee at the rate determined under section 2307(a)

19

(relating to commission).

20

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

21

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

22

the fee, there shall be added to the amount of the fee due a

23

penalty of 5% of the amount of the fee if failure to file a

24

timely payment is for not more than one month, with an

25

additional 5% penalty for each additional month, or fraction of

26

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

27

in the aggregate.

28

(c)  Timely payment.--If the commission determines that a

29

producer has not made a timely payment of the fee, the

30

commission shall send a written notice of the amount of the

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1

deficiency to the producer within 30 days from the date of

2

determining the deficiency. The commission shall notify the

3

department of a producer that has failed to pay the fee for any

4

producing well under section 2302 (relating to Shale Impact

5

Fee). If the producer does not have a pending appeal related to

6

payment of the fee in process, the department shall suspend the

7

permit for that well until the fee has been paid.

8

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

9

in addition to any other remedies provided by law or in equity.

10

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

11

collectible as authorized by law for the collection of debts. If

12

the producer liable to pay an amount neglects or refuses to pay

13

the amount after demand, the amount, together with costs, shall

14

be a judgment in favor of the Commonwealth upon the property of

15

the producer, but only after the judgment has been entered,

16

docketed and recorded by the prothonotary of the county where

17

the property is situated. The Commonwealth shall transmit to the

18

prothonotaries of the respective counties certified copies of

19

the judgments. Each prothonotary shall enter, docket and record

20

the record in the prothonotary's office and index each judgment,

21

without requiring the payment of costs as a condition precedent

22

to the entry of the judgment.

23

§ 2309.  Enforcement orders.

24

(a)  Issuance.--The commission may issue an order as

25

necessary to enforce this chapter and Chapter 25 (relating to

26

natural gas energy development program). An order issued under

27

this section shall take effect upon notice, unless the order

28

specifies otherwise. An appeal of the order must be in

29

accordance with 66 Pa.C.S. Ch. 3 Subch. B (relating to

30

investigations and hearings).

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1

(b)  Compliance.--A producer has the duty to comply with an

2

order issued under subsection (a). If a producer fails to

3

proceed diligently or to comply with an order within the time

4

required, the producer shall be guilty of contempt and shall be

5

punished by the court in an appropriate manner. The commission

6

shall apply to the Commonwealth Court, which shall have

7

jurisdiction over matters relating to contempt.

8

§ 2310.  Administrative penalties.

9

(a)  Civil penalties.--In addition to any other proceeding

10

authorized by law, the commission may assess a civil penalty not

11

to exceed $2,500 per violation upon a producer for the violation

12

of this chapter. In determining the amount of the penalty, the

13

commission shall consider the willfulness of the violation and

14

other relevant factors.

15

(b)  Separate offense.--Each violation for each separate day

16

and each violation of this chapter shall constitute a separate

17

offense.

18

(c)  Limitation of actions.--Notwithstanding any limitation

19

in 42 Pa.C.S. Ch. 55 Subch. B (relating to civil actions and

20

proceedings) an action under this section must be brought within

21

three years of the violation.

22

(d)  Procedure.--A penalty under this chapter is subject to

23

66 Pa.C.S. Ch. 3 Subch. B (relating to investigations and

24

hearings).

25

§ 2311.  (Reserved).

26

§ 2312.  Recordkeeping.

27

A producer liable for the fee under this chapter or the

28

assessment under Chapter 25 (relating to natural gas energy

29

development program) shall keep records, make reports and comply

30

with regulations of the commission. The commission may require a

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1

producer to make reports, render statements or keep records as

2

the commission deems sufficient to determine liability for the

3

fee.

4

§ 2313.  Examinations.

5

(a)  Access.--The commission or its authorized agents or

6

representatives shall:

7

(1)  Have access to the relevant books, papers and

8

records of any producer in order to verify the accuracy and

9

completeness of a report filed or fee paid under this chapter

10

or the assessment under Chapter 25 (relating to natural gas

11

energy development program).

12

(2)  Require the preservation of all relevant books,

13

papers and records for an appropriate period not to exceed

14

three years from the end of the calendar year to which the

15

records relate.

16

(3)  Examine any employee of a producer under oath

17

concerning the severing of natural gas subject to a fee or

18

any matter relating to the enforcement of this chapter.

19

(4)  Compel the production of relevant books, papers and

20

records and the attendance of all individuals who the

21

commission believes to have knowledge of relevant matters in

22

accordance with 66 Pa.C.S. (relating to public utilities).

23

(b)  Unauthorized disclosure.--Any information obtained by

24

the commission as a result of any report, examination,

25

investigation or hearing under this chapter shall be

26

confidential and shall not be disclosed, except for official

27

purposes, in accordance with judicial order or as otherwise

28

provided by law. A commissioner or an employee of the commission

29

who without authorization divulges confidential information

30

shall be subject to disciplinary action by the commission.

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1

§ 2314.  Distribution of fee.

2

(a)  Establishment.--There is hereby established a restricted

3

receipts account in the State Treasury to be known as the Shale

4

Impact Account to be administered by the commission.

5

(b)  Deposit.--All fees imposed under this chapter shall be

6

deposited into the account and are hereby appropriated for the

7

purpose set forth in this section.

8

(c)  Conservation districts.--

9

(1)  From fees collected for 2011, $2,500,000 from the

10

account shall be distributed to county conservation

11

districts.

12

(2)  From fees collected for 2012 and every year

13

thereafter, $5,000,000 from the account shall be distributed

14

to county conservation districts.

15

(3)  Funds under paragraphs (1) and (2) shall be

16

distributed in accordance with the following:

17

(i)  One-half shall be distributed by dividing the

18

amount equally among conservation districts for any use

19

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

20

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

21

(ii)  One-half shall be distributed by the State

22

Conservation Commission in a manner consistent with the

23

Conservation District Law and the provisions of the State

24

Conservation Commission's Conservation District Fund

25

Allocation Program—Statement of Policy under 25 Pa. Code

26

Ch. 83 Subch. B (relating to Conservation District Fund

27

Allocation Program—Statement of Policy).

28

(c.1)  Office of the State Fire Commissioner.--

29

(1)  From fees collected for 2011 and each year

30

thereafter, $1,500,000 shall be annually distributed to the

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1

Office of the State Fire Commissioner.

2

(2)  Funds under paragraph (1) shall be used for the

3

following purposes:

4

(i)  To support training programs for emergency

5

responders located in counties where drilling of

6

Marcellus Shale or other unconventional resources occurs.

7

(ii)  To provide grants to fire departments for the

8

purchase of special equipment required to respond to

9

fires and other emergencies related to the production,

10

processing and transportation of natural gas or natural

11

gas liquids.

12

(c.2)  Pennsylvania Fish and Boat Commission.--From fees

13

collected for 2011 and each year thereafter, $1,500,000 shall be

14

distributed to the Pennsylvania Fish and Boat Commission for

15

costs relating to the review of applications for permits to

16

drill unconventional wells.

17

(d)  Distribution.--Following distribution under subsections

18

(c), (c.1) and (c.2), for 2011 and every year thereafter, 55% of

19

the revenues remaining in the account are hereby appropriated

20

under this subsection for the purposes authorized under

21

subsection (e). Local governments are encouraged, where

22

appropriate, to jointly fund projects that cross jurisdictional

23

lines. The commission, after making a disbursement under

24

subsection (d.2), shall distribute the remaining funds

25

appropriated under this subsection as follows within 45 days

26

after the date the fee is due:

27

(1)  Thirty-six percent shall be distributed to counties

28

in which producing unconventional wells are located. The

29

amount for each county shall be determined using a formula

30

that divides the number of producing unconventional wells in

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1

the county by the number of producing unconventional wells in

2

this Commonwealth and multiplies the resulting percentage by

3

the amount available for distribution under this paragraph.

4

(2)  Thirty-seven percent shall be distributed to

5

municipalities in which producing unconventional wells are

6

located. The amount for each municipality shall be determined

7

using a formula that divides the number of producing

8

unconventional gas wells in the municipality by the number of

9

producing unconventional wells in this Commonwealth and

10

multiplies the resulting percentage by the amount available

11

for distribution under this paragraph.

12

(3)  Twenty-seven percent shall be distributed to

13

municipalities located in a county in which producing

14

unconventional wells are located. The amount available for

15

distribution in each county shall be determined by dividing

16

the number of producing unconventional wells in the county by

17

the number of producing unconventional wells in this

18

Commonwealth and multiplying the resulting percentage by the

19

amount available for distribution under this paragraph. The

20

resulting amount available for distribution in each county in

21

which producing unconventional wells are located shall be

22

distributed to each municipality in the county as follows:

23

(i)  Fifty percent of the amount available under this

24

paragraph shall be distributed to municipalities in which

25

producing unconventional wells are located and to

26

municipalities that are either contiguous with a

27

municipality in which producing unconventional wells are

28

located or are located within five linear miles of a

29

producing unconventional well. The distribution shall be

30

made as follows:

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1

(A)  One-half shall be distributed to each

2

eligible municipality using a formula that divides

3

the population of the eligible municipality within

4

the county by the total population of all eligible

5

municipalities within the county and multiplies the

6

resulting percentage by the amount allocated to the

7

county under this subparagraph.

8

(B)  One-half shall be distributed to each

9

eligible municipality using a formula that divides

10

the highway mileage of the eligible municipality

11

within the county by the total highway mileage of all

12

eligible municipalities within the county and

13

multiplies the resulting percentage by the amount

14

allocated to the county under this subparagraph.

15

(ii)  Fifty percent of the amount available under

16

this paragraph shall be distributed to each municipality

17

in the county regardless of whether an unconventional

18

well is located in the municipality as follows:

19

(A)  One-half shall be distributed to each

20

municipality using a formula that divides the

21

population of the municipality within the county by

22

the total population of the county and multiplies the

23

resulting percentage by the amount allocated to the

24

county under this subparagraph.

25

(B)  One-half shall be distributed to each

26

municipality using a formula that divides the highway

27

mileage of the municipality within the county by the

28

total highway mileage of the county and multiplies

29

the resulting percentage by the amount allocated to

30

the county under this subparagraph.

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1

(d.1)  Restriction.--The amount allocated to each designated

2

municipality under subsection (d) shall not exceed 50% of its

3

total budget for fiscal year 2011, adjusted for inflation in

4

subsequent years by an amount not to exceed an annual cost-of-

5

living adjustment calculated by applying the percentage

6

increase, if any, in the Consumer Price Index immediately prior

7

to the date the adjustment is due to take effect. Any remaining

8

money shall be retained by the commission and deposited in the

9

Housing Affordability and Rehabilitation Enhancement Fund.

10

(d.2)  Housing Affordability and Rehabilitation Enhancement

11

Fund.--

12

(1)  From fees collected for 2011, $2,500,000 from the

13

account shall be distributed to the Housing Affordability and

14

Rehabilitation Enhancement Fund under the act of November 23,

15

2010 (P.L.1035, No.105), entitled "An act amending the act of

16

December 3, 1959 (P.L.1688, No.621), entitled, as amended,

17

'An act to promote the health, safety and welfare of the

18

people of the Commonwealth by broadening the market for

19

housing for persons and families of low and moderate income

20

and alleviating shortages thereof, and by assisting in the

21

provision of housing for elderly persons through the creation

22

of the Pennsylvania Housing Finance Agency as a public

23

corporation and government instrumentality; providing for the

24

organization, membership and administration of the agency,

25

prescribing its general powers and duties and the manner in

26

which its funds are kept and audited, empowering the agency

27

to make housing loans to qualified mortgagors upon the

28

security of insured and uninsured mortgages, defining

29

qualified mortgagors and providing for priorities among

30

tenants in certain instances, prescribing interest rates and

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1

other terms of housing loans, permitting the agency to

2

acquire real or personal property, permitting the agency to

3

make agreements with financial institutions and Federal

4

agencies, providing for the purchase by persons of low and

5

moderate income of housing units, and approving the sale of

6

housing units, permitting the agency to sell housing loans,

7

providing for the promulgation of regulations and forms by

8

the agency, prescribing penalties for furnishing false

9

information, empowering the agency to borrow money upon its

10

own credit by the issuance and sale of bonds and notes and by

11

giving security therefor, permitting the refunding,

12

redemption and purchase of such obligations by the agency,

13

prescribing remedies of holders of such bonds and notes,

14

exempting bonds and notes of the agency, the income

15

therefrom, and the income and revenues of the agency from

16

taxation, except transfer, death and gift taxes; making such

17

bonds and notes legal investments for certain purposes; and

18

indicating how the act shall become effective,' providing for

19

the Pennsylvania Housing Affordability and Rehabilitation

20

Enhancement Program; and establishing the Housing

21

Affordability and Rehabilitation Enhancement Fund." From fees

22

collected for 2012, and each year thereafter, $5,000,000

23

shall be annually distributed to the Housing Affordability

24

and Rehabilitation Enhancement Fund.

25

(2)  Funds under paragraph (1) shall be used for the

26

following purposes:

27

(i)  To provide support to projects in a county in

28

which producing unconventional wells are located that

29

increase availability of quality, safe, affordable

30

housing for low-income and moderate-income individuals or

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1

families, persons with disabilities or elderly persons.

2

(ii)  To provide rental assistance in a county in

3

which producing unconventional wells are located to

4

persons or families whose household income does not

5

exceed the area median income.

6

(3)  No less than 50% of the funds available under this

7

subsection shall be used in fifth, sixth, seventh and eighth

8

class counties.

9

(e)  Use of funds.--A county or municipality receiving funds

10

under subsection (d) shall use the funds received only for the

11

following purposes associated with natural gas production from

12

unconventional wells within the county or municipality:

13

(1)  Construction, reconstruction, maintenance and repair

14

of roadways, bridges and public infrastructure.

15

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

16

construction, reconstruction, maintenance and repair.

17

(3)  Emergency preparedness and public safety, including

18

law enforcement and fire services, hazardous material

19

response, 911, equipment acquisition and other services.

20

(4)  Environmental programs, including trails, parks and

21

recreation, open space, flood plain management, conservation

22

districts and agricultural preservation.

23

(5)  Preservation and reclamation of surface and

24

subsurface waters and water supplies.

25

(6)  Tax reductions, including homestead exclusions.

26

(7)  Projects to increase the availability of safe and

27

affordable housing to residents.

28

(8)  Records management, geographic information systems

29

and information technology.

30

(9)  The delivery of social services.

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1

(10)  Judicial services.

2

(11)  For deposit into the county or municipality's

3

capital reserve fund if the funds are used solely for a

4

purpose set forth in this subsection.

5

(f)  Reporting.--

6

(1)  The commission shall submit an annual report on all

7

funds in the account. The report shall include a detailed

8

listing of all deposits and expenditures of the fund and be

9

submitted to the chairman and the minority chairman of the

10

Appropriations Committee of the Senate, the chairman and the

11

minority chairman of the Environmental Resources and Energy

12

Committee of the Senate, the chairman and the minority

13

chairman of the Appropriations Committee of the House of

14

Representatives and the chairman and the minority chairman of

15

the Environmental Resources and Energy Committee of the House

16

of Representatives. The report shall be submitted by

17

September 30, 2012, and by September 30 of each year

18

thereafter.

19

(2)  All counties and municipalities receiving funds from

20

the account under this section shall submit information to

21

the commission on a form prepared by the commission that sets

22

forth the amount and use of the funds received in the prior

23

calendar year. The form shall set forth that the funds

24

received were committed to a specific project or use as

25

authorized in this section. The reports shall be published

26

annually on the county or municipality's publicly accessible

27

Internet website.

28

§ 2315.  Statewide initiatives.

29

(a)  Deposit and distribution.--Following distribution under

30

section 2314(c), (c.1) and (c.2) (relating to distribution of

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1

fee), 45% of the remaining revenue in the account shall be

2

distributed by the commission within 45 days after the date the

3

fee is due as follows:

4

(1)  Twenty-five percent to the Commonwealth Financing

5

Authority for grants to eligible applicants for the

6

following:

7

(i)  Acid mines: damage, abatement and cleanup and

8

mine reclamation, with priority given to projects which

9

recycle and treat water for use in drilling operations.

10

(ii)  Orphan or abandoned oil and gas well plugging.

11

(iii)  Complying with the act of January 24, 1966

12

(1965 P.L.1535, No.537), known as the Pennsylvania Sewage

13

Facilities Act.

14

(iv)  Planning acquisition, development,

15

rehabilitation and repair of greenways, recreational

16

trails, open space, parks and beautification projects.

17

(v)  Programs to establish baseline water quality

18

data on private water supplies.

19

(vi)  Watershed programs and related projects.

20

(2)  Twenty-five percent to the Highway Bridge

21

Improvement Restricted Account in the Motor License Fund to

22

counties to be distributed to fund the cost of the

23

replacement or repair of locally owned at-risk deteriorated

24

bridges. Funds shall be distributed to counties

25

proportionately based on the population of the county as

26

follows:

27

(i)  In each county, the distribution shall be

28

according to the following formula:

29

(A)  Divide:

30

(I)  the total population of the county; by

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1

(II)  the total population of the

2

Commonwealth;

3

(B)  Express the quotient under clause (A) as a

4

percentage.

5

(C)  Multiply:

6

(I)  the percentage under clause (B); by

7

(II)  the amount of money to be distributed

8

under this paragraph.

9

(ii)  Each county shall receive a minimum of $40,000.

10

(iii)  The Department of Transportation shall release

11

money under this paragraph upon approval of a plan

12

submitted by a county or municipality to repair an at-

13

risk deteriorated bridge. The plan must include funding

14

for replacement or repair.

15

(iv)  A county of the first or second class may

16

submit a plan to use its funds under this paragraph for

17

at-risk deteriorated bridges owned by a public

18

transportation authority.

19

(3)  Twenty-five percent for water and sewer projects.

20

Fifty percent of the amount distributed under this paragraph

21

shall be transmitted to the Pennsylvania Infrastructure

22

Infrastructure Investment Authority to be used in accordance

23

with the act of March 1, 1988 (P.L.82, No.16), known as the

24

Pennsylvania Infrastructure Investment Authority Act. Fifty

25

percent of the amount distributed under this paragraph shall

26

be distributed to the H2O PA program to be used by the

27

Commonwealth Financing Authority in accordance with section

28

301 of the act of July 9, 2008 (P.L.908, No.63), known as the

29

H2O PA Act. The prohibition on grants for projects located in

30

a city or county of the first or second class under section

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1

301 of the H2O PA Act shall not apply to funds distributed to

2

the H2O PA Program under this paragraph.

3

(4)  Five percent to the Hazardous Sites Cleanup Fund.

4

(5)  Fifteen percent for the planning, acquisition,

5

development rehabilitation and repair of greenways,

6

recreational trails, open space, natural areas, community

7

conservation and beautification projects, community and

8

heritage parks and water resource management. Funds shall be

9

distributed to counties proportionately based on the

10

population of the county as follows:

11

(i)  In each county, the distribution shall be

12

according to the following formula:

13

(A)  Divide:

14

(I)  the total population of the county; by

15

(II)  the total population of the

16

Commonwealth.

17

(B)  Express the quotient under clause (A) as a

18

percentage.

19

(C)  Multiply:

20

(I)  the percentage under clause (B); by

21

(II)  the amount of funds available under

22

this paragraph.

23

(ii)  Each county shall receive a minimum of $25,000.

24

(6)  Five percent for distribution as follows:

25

(i)  For 2011, 2012 and 2013, to the Department of

26

Community and Economic Development for projects to

27

provide for the planning, development and construction of

28

a facility to liquefy natural gas or convert natural gas

29

to ethane, propane or similar substances.

30

(ii)  After 2013, to the Hazardous Sites Cleanup

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1

Fund.

2

(b)  Restriction on use of proceeds.--

3

(1)  Funds distributed under subsection (a) shall not be

4

used for the purpose of public relations, outreach,

5

communications, lobbying or litigation.

6

(2)  Funds distributed under subsection (a) may not be

7

used by an authorized organization as defined in 27 Pa.C.S. §

8

6103 (relating to definitions) for land acquisition unless

9

the authorized organization has obtained the written consent

10

of the county and municipality in which the land is situated.

11

(c)  Coordination.--The department and the Department of

12

Conservation and Natural Resources shall review applications for

13

funding as requested by the Commonwealth Financing Authority and

14

provide recommendations on priority of projects and project

15

approval.

16

§ 2316.  Diverse business participation.

17

(a)  General rule.--Unconventional well producers and related

18

extraction companies, including contractors, subcontractors,

19

professional service providers and suppliers, shall provide

20

maximum practicable opportunities for diverse business

21

participation.

22

(b)  Duties.--Unconventional well producers shall do all of

23

the following:

24

(1)  Fully comply with the Commonwealth's contract

25

compliance policy regarding nondiscrimination.

26

(2)  Notify the Department of General Services' Bureau of

27

Minority and Women Business Opportunities of contracting

28

opportunities from diverse businesses.

29

(3)  Use or obtain the Bureau of Minority and Women

30

Business Opportunities' assistance in using the Department of

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1

General Services' Internet website to identify certified

2

diverse businesses as potential sources for Marcellus Shale

3

opportunities.

4

(4)  Utilize the Department of General Services available

5

source list of veteran-owned small businesses.

6

(c)  Survey.--The Department of General Services shall

7

conduct a survey of unconventional well producers to ascertain

8

the extent of diverse business participation. This survey shall

9

be completed by December 31, 2012.

10

(d)  Report.--The Department of General Services shall submit

11

an annual report to the Appropriations Committee of the Senate

12

and the Appropriations Committee of the House of Representatives

13

on the utilization of diverse business participation in the

14

Marcellus Shale gas extraction industry.

15

(e)  Definitions.--As used in this section, the following

16

words and phrases shall have the meanings given to them in this

17

subsection unless the context clearly indicates otherwise:

18

"Diverse business."  Minority-owned business, women-owned

19

business and veteran-owned business as determined by the

20

Department of General Services.

21

§ 2317.  Applicability.

22

The provisions of this chapter shall not negate or limit the

23

responsibilities of any producer under this title, 74 Pa.C.S

24

(relating to transportation) or 75 Pa.C.S. (relating to

25

vehicles).

26

§ 2318.  Expiration.

27

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

28

the imposition of a severance tax on unconventional wells in

29

this Commonwealth, submit for publication in the Pennsylvania

30

Bulletin notice of the imposition.

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1

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

2

publication of the notice under subsection (a).

3

CHAPTER 25

4

NATURAL GAS ENERGY Development Program

5

Sec.

6

2501.  Definitions.

7

2502.  Assessment.

8

2503.  Program.

9

§ 2501.  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

"Authority."  The Commonwealth Financing Authority

14

established in 64 Pa.C.S. § 1511 (relating to authority).

15

"Commission."  As defined in section 2301 (relating to

16

definitions).

17

"Eligible applicant."  Any of the following:

18

(1)  A school district.

19

(2)  A county or municipality.

20

(3)  A Commonwealth authority.

21

(4)  A municipal authority.

22

(5)  The Pennsylvania Turnpike Commission.

23

(6)  A local transportation organization.

24

(7)  A nonprofit entity.

25

(8)  A State-owned or State-related university.

26

"Local transportation organization."  Any of the following:

27

(1)  A political subdivision.

28

(2)  A public transportation authority, port authority or

29

redevelopment authority, which is:

30

(i)  organized under:

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1

(A)  the laws of this Commonwealth; or

2

(B)  an interstate compact; or

3

(ii)  otherwise empowered to render, contract to

4

render or assist in rendering transportation services in

5

a limited area in this Commonwealth even though it may

6

also render or assist in rendering transportation service

7

in adjacent states.

8

(3)  A nonprofit association which directly or indirectly

9

provides public transportation service.

10

(4)  A nonprofit association of public transportation

11

providers operating within this Commonwealth.

12

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

13

"Producer."  As defined in section 2301 (relating to

14

definitions).

15

"Unconventional well."  As defined in section 2301 (relating

16

to definitions).

17

"Vertical gas well."  As defined in section 2301 (relating to

18

definitions).

19

§ 2502.  Assessment.

20

(a)  Imposition.--There shall be imposed an assessment by the

21

commission on unconventional wells located in this Commonwealth

22

prior to January 1, 2011.

23

(b)  Unconventional well.--The assessment for each

24

unconventional well shall be determined as follows:

25

(1)  The assessment for each unconventional well, other

26

than a vertical gas well, producing natural gas prior to

27

January 1, 2011, shall be $20,000.

28

(2)  The assessment for each vertical gas well producing

29

natural gas prior to January 1, 2011, shall be $10,000.

30

(3)  The assessment for each unconventional well drilled

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1

but not producing natural gas prior to January 1, 2011, shall

2

be $8,000.

3

(c)  Deadline and payment.--For calendar year 2010, a report

4

in accordance with section 2303(d) (relating to administration)

5

shall be filed by December 31, 2011, and the assessment due

6

shall be paid as follows:

7

(1)  Fifty percent of the assessment shall be paid by

8

June 30, 2012.

9

(2)  Fifty percent of the assessment shall be paid by

10

September 30, 2012.

11

(d)  Deposit of funds.--Funds received from the assessment

12

under this section shall be deposited by the commission into the

13

restricted receipts account established under section 2314(a)

14

(relating to distribution of fee).

15

§ 2503.  Program.

16

(a)  Establishment and purpose.--The Natural Gas Energy

17

Development Program is established. The purpose of the program

18

is to fund projects under this section.

19

(b)  Appropriation.--By November 1, 2012, an amount equal to

20

the funds collected under section 2502 (relating to assessment)

21

shall be transferred from the restricted receipts account

22

established under section 2314(a) (relating to distribution of

23

fee) to the authority. The authority shall use the funds to

24

promote domestic energy development projects utilizing natural

25

gas.

26

(c)  Projects.--

27

(1)  Funds transferred to the authority under subsection

28

(b) shall be utilized for grants, loans, reimbursements or

29

rebates to eligible applicants for any of the following

30

programs:

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1

(i)  The conversion or replacement of buses with

2

natural gas vehicles.

3

(ii)  The conversion or replacement of public transit

4

authority vehicles with natural gas vehicles.

5

(iii)  The conversion or replacement of medium and

6

heavy duty vehicles, including garbage trucks, street

7

sweepers and plow trucks, operated by eligible

8

applicants.

9

(iv)  The construction of natural gas fueling

10

stations.

11

(v)  The purchase and installation of the necessary

12

natural gas fleet refueling equipment for vehicles

13

operating on natural gas.

14

(2)  A producer shall not be eligible for a grant, loan,

15

reimbursement or rebate under this subsection.

16

(d)  Guidelines.--Funds under this section shall be used in

17

accordance with guidelines of the authority. Guidelines may

18

require the eligible applicant to provide matching funds not to

19

exceed 50% of the total cost of the project.

20

(e)  Application.--An applicant shall submit an application

21

including supporting information as required by the authority.

22

(f)  Administrative costs.--No more than 1% of the funds

23

appropriated to the authority under subsection (b) shall be used

24

for administrative costs.

25

(g)  Applicant eligibility.--In order to be eligible to

26

receive funds under this section, an applicant must provide the

27

following:

28

(1)  A detailed description of the project, including the

29

proposed use of funds and an explanation of how the project

30

will fulfill the goals of this section.

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1

(2)  The cost of the project.

2

(3)  The source and amount of any funds to be contributed

3

by the applicant.

4

(4)  A description of how the project will increase this

5

Commonwealth's use of domestic natural gas.

6

(h)  Project eligibility.--In order to be eligible for

7

funding under this section, a project shall be located in this

8

Commonwealth.

9

(i)  Project review.--The authority shall review and prepare

10

an assessment of each application and determine which projects

11

will best utilize and promote the use of domestically produced

12

natural gas in this Commonwealth. Projects shall be awarded in

13

accordance with 64 Pa.C.S. § 1512 (relating to board). The

14

department or the Department of Community and Economic

15

Development shall provide technical assistance as appropriate.

16

(j)  Report.--The authority shall provide a report to the

17

chairman and minority chairman of the Appropriations Committee

18

of the Senate and the chairman and minority chairman of the

19

Appropriations Committee of the House of Representatives by

20

October 1, 2013, and each October 1 thereafter. The report shall

21

be maintained on the authority's official Internet website and

22

shall include:

23

(1)  A list of all grants, loans, reimbursements and

24

rebates approved and loans repaid during the previous fiscal

25

year, including the amount of the loan or grant and a

26

description of each approved project.

27

(2)  The estimated domestic energy benefits to date for

28

all projects receiving funding during the fiscal year and the

29

method used to determine estimated benefits.

30

CHAPTER 31

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1

(RESERVED)

2

CHAPTER 32

3

REGULATION

4

Subchapter

5

A.  Preliminary Provisions

6

B.  General Requirements

7

C.  Underground Gas Storage

8

D.  Eminent Domain

9

E.  Enforcement and Remedies

10

F.  (Reserved)

11

G.  Miscellaneous Provisions

12

SUBCHAPTER A

13

PRELIMINARY PROVISIONS

14

Sec.

15

3201.  Scope of chapter.

16

3202.  Declaration of purpose.

17

3203.  Definitions.

18

§ 3201.  Scope of chapter.

19

This chapter relates to oil and gas.

20

§ 3202.  Declaration of purpose.

21

The purposes of this chapter are to:

22

(1)  Permit optimal development of oil and gas resources

23

of this Commonwealth consistent with protection of the

24

health, safety, environment and property of Pennsylvania

25

citizens.

26

(2)  Protect the safety of personnel and facilities

27

employed in coal mining or exploration, development, storage

28

and production of natural gas or oil.

29

(3)  Protect the safety and property rights of persons

30

residing in areas where mining, exploration, development,

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1

storage or production occurs.

2

(4)  Protect the natural resources, environmental rights

3

and values secured by the Constitution of Pennsylvania.

4

§ 3203.  Definitions.

5

The following words and phrases when used in this chapter

6

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

7

context clearly indicates otherwise:

8

"Abandoned well."  Any of the following:

9

(1)  A well:

10

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

11

inject any gas, petroleum or other liquid within the

12

preceding 12 months;

13

(ii)  for which equipment necessary for production,

14

extraction or injection has been removed; or

15

(iii)  considered dry and not equipped for production

16

within 60 days after drilling, redrilling or deepening.

17

(2)  The term does not include wells granted inactive

18

status.

19

"Alteration."  An operation which changes the physical

20

characteristics of a well bore, including stimulation or

21

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

22

this chapter, the term does not include:

23

(1)  Repairing or replacing of the casing if the

24

operation does not affect the depth or diameter of the well

25

bore, the use or purpose of the well does not change and the

26

activity complies with regulations promulgated under this

27

chapter. This paragraph shall not apply:

28

(i)  to production casings in coal areas when the

29

production casings are also the coal protection casings;

30

or

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1

(ii)  when the method of repairing or replacing the

2

casing would affect the coal protection casing.

3

(2)  Stimulation of a well.

4

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

5

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

6

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

7

which persons live or customarily work.

8

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

9

wells drilled for natural gas or petroleum.

10

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

11

(1)  Hydraulic cement properly mixed with water only.

12

(2)  A mixture of materials adequate for bonding or

13

sealing of well bores as approved by regulations promulgated

14

under this chapter.

15

"Coal mine."  Any of the following:

16

(1)  Operations in a coal seam, including excavated

17

portions, abandoned portions and places actually being

18

worked.

19

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

20

other ways and openings, including those which are in the

21

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

22

facilities connected with them below the surface.

23

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

24

operate a coal mine as an owner or lessee.

25

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

26

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

27

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

28

"Department."  The Department of Environmental Protection of

29

the Commonwealth.

30

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

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1

deepening of an existing well.

2

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

3

recognized hydrologic cycle which occupies the pore spaces and

4

fractures of saturated subsurface materials.

5

"Gas."  Any of the following:

6

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

7

produced in a natural state from the earth and maintains a

8

gaseous or rarified state at standard temperature of 60

9

degrees Fahrenheit and pressure 14.7 PSIA.

10

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

11

gases.

12

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

13

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

14

device or by injecting bentonitic mud or other equally nonporous

15

material into the well.

16

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

17

horizontal plane.

18

"Oil."  Hydrocarbons in liquid form at standard temperature

19

of 60 degrees Fahrenheit and pressure 14.7 PSIA, also referred

20

to as petroleum.

21

"Operating coal mine."  Any of the following:

22

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

23

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

24

months immediately preceding the date its status is put in

25

question, including contiguous worked-out or abandoned coal

26

mines to which it is connected underground.

27

(2)  An underground coal mine to be established or

28

reestablished under paragraph (1).

29

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

30

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

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1

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

2

operator and from which the present owner, operator or lessee

3

has received no economic benefit other than as a landowner or

4

recipient of a royalty interest from the well.

5

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

6

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

7

assigned to the coal mine under an underground mine permit

8

issued by the Department of Environmental Protection.

9

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

10

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

11

orphan wells, except where the Department of Environmental

12

Protection determines a prior owner or operator benefited from

13

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

14

requirements).

15

"Person."  An individual, association, partnership,

16

corporation, political subdivision or agency of the Federal

17

Government, State government or other legal entity.

18

"Petroleum."  Hydrocarbons in liquid form at standard

19

temperature of 60 degrees Fahrenheit and pressure 14.7 PSIA,

20

also referred to as oil.

21

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

22

mine workings or a mined-out area.

23

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

24

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

25

"Reservoir protective area."  The area surrounding a storage

26

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

27

reservoir boundary, unless an alternate area has been designated

28

by the Department of Environmental Protection, which is deemed

29

reasonably necessary to afford protection to the reservoir,

30

under a conference held in accordance with section 3251

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1

(relating to conferences).

2

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

3

remaining after development mining has been completed in that

4

section of a coal mine.

5

"Secretary."  The Secretary of Environmental Protection of

6

the Commonwealth.

7

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

8

operate a storage reservoir as an owner or lessee.

9

"Storage reservoir."  That portion of a subsurface geological

10

stratum into which gas is or may be injected for storage

11

purposes or to test suitability of the stratum for storage.

12

"Unconventional formation."  A geological shale formation

13

existing below the base of the Elk Sandstone or its geologic

14

equivalent stratigraphic interval where natural gas generally

15

cannot be produced at economic flow rates or in economic volumes

16

except by vertical or horizontal well bores stimulated by

17

hydraulic fracture treatments or by using multilateral well

18

bores or other techniques to expose more of the formation of the

19

well bore.

20

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

21

for the purpose of or to be used for the production of natural

22

gas from an unconventional formation.

23

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

24

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

25

petroleum or another liquid related to oil or gas production or

26

storage, including brine disposal, but excluding a bore hole

27

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

28

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

29

used for:

30

(1)  Systems of monitoring, producing or extracting gas

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1

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

2

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

3

known as the Solid Waste Management Act, which does not

4

penetrate a workable coal seam.

5

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

6

(i)  used to vent methane to the outside atmosphere

7

from an operating coal mine; regulated as part of the

8

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

9

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

10

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

11

Mining Conservation and Reclamation Act; and drilled by

12

the operator of the operating coal mine for the purpose

13

of increased safety; or

14

(ii)  used to vent methane to the outside atmosphere

15

under a federally funded or State-funded abandoned mine

16

reclamation project.

17

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

18

(1)  The person designated as operator or well operator

19

on the permit application or well registration.

20

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

21

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

22

or reconditions a well with the purpose of production from

23

the well.

24

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

25

storage of gas, a storage operator.

26

"Wetland."  Areas inundated or saturated by surface or

27

groundwater at a frequency and duration sufficient to support,

28

and which normally support, a prevalence of vegetation typically

29

adapted for life in saturated soil conditions, including swamps,

30

marshes, bogs and similar areas.

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1

"Workable coal seams."  A coal seam which:

2

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

3

under this chapter by underground methods; or

4

(2)  in the judgment of the Department of Environmental

5

Protection, can reasonably be expected to be mined by

6

underground methods.

7

SUBCHAPTER B

8

GENERAL REQUIREMENTS

9

Sec.

10

3211.  Well permits.

11

3212.  Permit objections.

12

3213.  Well registration and identification.

13

3214.  Inactive status.

14

3215.  Well location restrictions.

15

3216.  Well site restoration.

16

3217.  Protection of fresh groundwater and casing requirements.

17

3218.  Protection of water supplies.

18

3218.1.  Containment for unconventional wells.

19

3218.2.  Transportation records regarding wastewater fluids.

20

3218.3.  Emergency response information.

21

3218.4.  Notification to public drinking water systems.

22

3218.5.  Corrosion control requirements.

23

3218.6.  Gathering lines.

24

3219.  Use of safety devices.

25

3220.  Plugging requirements.

26

3221.  Alternative methods.

27

3222.  Well reporting requirements.

28

3223.  Notification and effect of well transfer.

29

3224.  Coal operator responsibilities.

30

3225.  Bonding.

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1

3226.  Oil and Gas Technical Advisory Board.

2

§ 3211.  Well permits.

3

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

4

an existing well, except for alterations which satisfy the

5

requirements of subsection (j), without having first obtained a

6

well permit in accordance with this section. A copy of the

7

permit shall be kept at the well site during preparation and

8

construction of the well site or access road, drilling,

9

operation or alteration of the well. No person shall be required

10

to obtain a permit to redrill a nonproducing well if the

11

redrilling:

12

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

13

from the department authorizing cleaning out and plugging or

14

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

15

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

16

and Gas Resource Coordination Act; and

17

(2)  is incidental to a plugging or replugging operation

18

and the well is plugged within 15 days of redrilling.

19

(b)  Plat.--The permit application shall be accompanied by a

20

plat prepared by a competent engineer or a competent surveyor,

21

on forms furnished by the department, showing the political

22

subdivision and county in which the tract of land upon which the

23

well to be drilled, operated or altered, is located, the name of

24

the surface landowner of record and lessor, the name of all

25

surface landowners or water purveyors whose water supplies are

26

within 1,000 feet, or in the case of an unconventional well

27

within 3,000 feet from the vertical well bore, the name of the

28

owner of record or operator of all known underlying workable

29

coal seams, the acreage in the tract to be drilled, the proposed

30

location of the well determined by survey, courses and distances

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1

of the location from two or more permanent identifiable points

2

or landmarks on the tract boundary corners, the proposed angle

3

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

4

substantially from a vertical course, the number or other

5

identification to be given the well, workable coal seams

6

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

7

drilled, operated or altered and which shall be cased off under

8

section 3217 (relating to protection of fresh groundwater and

9

casing requirements) and any other information needed by the

10

department to administer this chapter. 

11

(b.1)  Notification.--The following shall apply:

12

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

13

of the plat to the following:

14

(i)  The surface landowner.

15

(ii)  All surface landowners or water purveyors whose

16

water supplies are within 1,000 feet of the proposed well

17

location or, in the case of an unconventional well,

18

within 3,000 feet of the vertical well bore.

19

(iii)  The owner and lessee, if any, of any workable

20

coal seams and every coal operator required to be

21

identified on the well permit application and shall

22

submit proof of such notification with the well permit

23

application.

24

(iv)  The municipality where the proposed

25

unconventional well is located and each municipality

26

within 3,000 feet of the proposed unconventional vertical

27

well bore.

28

(v)  Storage operators within 3,000 feet of the

29

proposed unconventional vertical well bore.

30

(2)  Notification of surface owners shall be performed by

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1

sending notice to those persons to whom the tax notices for

2

the surface property are sent, as indicated in the assessment

3

books in the county in which the property is located.

4

Notification of surface landowners or water purveyors  shall

5

be on forms, and in a manner prescribed by the department,

6

sufficient to identify the rights afforded those persons

7

under section 3218 (relating to protection of water supplies)

8

and advise them of the advisability of taking their own

9

predrilling or prealteration survey. The applicant shall

10

submit proof of compliance with this subsection with the well

11

permit application.

12

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

13

written approval of the proposed well location by the surface

14

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

15

underlying the proposed well location and no objections are

16

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

17

approval has been submitted and no objections are made to the

18

proposed well location within 15 days from receipt of notice by   

19

the surface landowner and the coal operator, lessee or owner, if

20

any, or by the department the same shall be filed and become a

21

permanent record of the well location, subject to inspection at

22

any time by any interested person. The application form to

23

operate an abandoned or orphan well shall provide notification

24

to the applicant of its responsibilities to plug the well upon

25

abandonment.

26

(c)  Applicants.--If the applicant for a well permit is a

27

corporation, partnership or person that is not a resident of

28

this Commonwealth, the applicant shall designate the name and

29

address of an agent for the operator who shall be the attorney-

30

in-fact for the operator and who shall be a resident of this

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1

Commonwealth upon whom notices, orders or other communications

2

issued under this chapter may be served and upon whom process

3

may be served. Each well operator required to designate an agent

4

under this section shall, within five days after termination of

5

the designation, notify the department of the termination and

6

designate a new agent.

7

(d)  Permit fee.--Each application for a well permit shall be

8

accompanied by a permit fee, established by regulation of the

9

Environmental Quality Board, which bears a reasonable

10

relationship to the cost of administering this chapter.

11

(e)  Issuance of permit.--The department shall issue a permit

12

within 45 days of submission of an application unless the

13

department denies the permit application for any of the reasons

14

set forth in subsection (e.1), except that the department shall

15

have the right to extend the period for 15 days for cause shown

16

upon notification to the applicant of the reasons for the

17

extension. The department may impose permit terms and conditions

18

necessary to assure compliance with this chapter or other laws

19

administered by the department.

20

(e.1)  Denial of permit.--The department may deny a permit

21

for any of the following reasons:

22

(1)  The well site for which a permit is requested is in

23

violation of this chapter or issuance of the permit would

24

result in a violation of this chapter or other applicable

25

law.

26

(2)  The permit application is incomplete.

27

(3)  Unresolved objections to the well location by coal

28

mine owner or operator remain.

29

(4)  The requirements of section 3225 (relating to

30

bonding) have not been met.

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1

(5)  The applicant, with respect to any other well

2

operated by the applicant, is in continuing violation of this

3

chapter or other applicable law administered by the

4

department and the likely result of the violation is an

5

unsafe operation or environmental damage. If a final

6

determination of the violation has been made in the

7

applicant's favor, the  department shall  reconsider the

8

application and the violation shall not be  considered in the

9

application review. The department may not collect an

10

application fee for the reconsideration.

11

(6)  The applicant failed to pay the fee or file a report

12

under section 2303(d) and (e) (relating to administration),

13

unless  an appeal is  pending. The commission shall notify

14

the department of any applicant who has failed to pay the fee

15

or file a  report and who does not have  an appeal pending.

16

(7)   The water management plan submitted by the

17

applicant to drill an unconventional well does not include a

18

reuse plan for fluids that will be used to hydraulically

19

fracture that well.

20

(f)  Drilling.--Upon issuance of a permit, the well operator

21

may proceed to drill, operate or alter the well at the exact

22

location shown on the plat after providing the department, the

23

surface landowner and the local political subdivision in which

24

the well is to be located 24 hours' notice of the date that

25

drilling will commence. In noncoal areas where more than one

26

well is to be drilled as part of the same development project,

27

only the first well of the project need be located by survey.

28

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

29

manner prescribed by regulation. Prior to drilling each

30

additional project well, the well operator shall notify the

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1

department and provide reasonable notice of the date on which

2

drilling will commence. Whenever, before or during the drilling

3

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

4

the well operator encounters conditions of a nature which

5

renders drilling of the bore hole or a portion thereof

6

impossible, or more hazardous than usual, the well operator,

7

upon verbal notice to the department, may immediately plug all

8

or part of the bore hole, if drilling has occurred, and commence

9

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

10

the location of the new bore hole does not violate section 3215

11

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

12

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

13

the Oil and Gas Conservation Law, if the new location complies

14

with existing laws, regulations and spacing orders and the new

15

bore hole is at least 330 feet from the nearest lease boundary.

16

Within ten days of commencement of the new bore hole, the well

17

operator shall file with the department a written notice of

18

intention to plug, a well record, a completion report, a

19

plugging certificate for the original bore hole and an amended

20

plat for the new bore hole. The well operator shall forward a

21

copy of the amended plat to the surface landowner identified on

22

the well permit application within ten days of commencement of

23

the new well bore.

24

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

25

address and telephone number shall be conspicuously posted at

26

the drilling site  during site preparation , including the

27

construction of access roads, construction of the well site  and

28

during drilling, operation or alteration of the well.

29

(h)  Labeling.--The well operator shall install the permit

30

number issued by the department in a legible, visible and

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1

permanent manner on the well upon completion.

2

(i)  Expiration.--Well permits issued for drilling wells

3

under this chapter shall expire one year after issuance unless

4

operations for drilling the well are commenced within the period

5

and pursued with due diligence or unless the permit is renewed

6

in accordance with regulations of the department. If drilling is

7

commenced during the one-year period, the well permit shall

8

remain in force until the well is plugged in accordance with

9

section 3220 (relating to plugging requirements) or the permit

10

is revoked. A drilling permit issued prior to April 18, 1985,

11

for a well which is an operating well on April 18, 1985, shall

12

remain in force as a well permit until the well is plugged in

13

accordance with section 3220. Nothing in this subsection shall

14

be construed to rescind the provisions pertaining to drilling

15

permits contained in the Oil and Gas Conservation Law.

16

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

17

establish by regulation certain categories of alterations of

18

permitted or registered wells for which permitting requirements

19

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

20

proposes to conduct the alteration activity shall first obtain a

21

permit or registration modification from the department. The

22

Environmental Quality Board shall promulgate regulations as to

23

the requirements for modifications.

24

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

25

section or registration issued under section 3213 (relating to

26

well registration and identification) may be transferred without

27

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

28

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

29

the department. The department shall approve or deny a transfer

30

request within 45 days of receipt of a complete and accurate

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1

application. The department may deny a request only for reasons

2

set forth in subsection (e.1)(4), (5) and (6). Approval of a

3

transfer request shall permanently transfer responsibility to

4

plug the well under section 3220 to the recipient of the

5

transferred permit or registration. The department may establish

6

a procedure for accelerated approval of well permit applications

7

in hardship cases, as defined by regulation of the Environmental

8

Quality Board, consistent with the requirements of this chapter.

9

§ 3212.  Permit objections.

10

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

11

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

12

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

13

surface landowner affected shall be notified of the intent to

14

drill and may file objections, in accordance with section 3251

15

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

16

location violates section 3215 (relating to well location

17

restrictions) or that information in the application is untrue

18

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

19

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

20

notice by the surface owner shall be presumed to have occurred

21

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

22

operator submits a copy of the certified mail receipt sent to

23

the surface owner and an affidavit certifying that the address

24

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

25

address listed in the assessment books in the county where the

26

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

27

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

28

the surface landowner, or if written approval by the surface

29

landowner is filed with the department and no objection is

30

raised by the department within 15 days of filing, the

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1

department shall proceed to issue or deny the permit.

2

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

3

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

4

operating coal mine or a coal mine already projected and platted

5

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

6

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

7

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

8

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

9

operator affected may file objections under section 3251 to the

10

proposed location within 15 days of the receipt by the coal

11

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

12

alternative location at which the proposed well could be drilled

13

to overcome the objections shall be indicated. If no objection

14

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

15

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

16

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

17

or owner of the location is filed with the department and no

18

objection is raised by the department within 15 days of filing,

19

the department shall proceed to issue or deny the permit.

20

(c)  Procedure upon objection.--If an objection is filed by a

21

coal operator or owner or made by the department, the department

22

shall fix a time and place for a conference under section 3251

23

not more than ten days from the date of service of the objection

24

to allow the parties to consider the objection and attempt to

25

agree on a location. If they fail to agree, the department, by

26

an appropriate order, shall determine a location on the tract of

27

land as near to the original location as possible where, in the

28

judgment of the department, the well can be safely drilled

29

without unduly interfering with or endangering the mine as

30

defined in subsection (b). The new location agreed upon by the

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1

parties or determined by the department shall be indicated on

2

the plat on file with the department and become a permanent

3

record upon which the department shall proceed to issue or deny

4

the permit.

5

(d)  Survey.--Within 120 days after commencement of drilling

6

operations, the coal operator shall accurately locate the well

7

by a closed survey on the same datum as the mine workings or

8

coal boundaries are mapped, file the results of the survey with

9

the department and forward a copy by certified mail to the well

10

operator.

11

§ 3213.  Well registration and identification.

12

(a)  General rule.--On or before July 5, 1996, each person

13

who owned or operated a well in existence prior to April 18,

14

1985, which has not been registered with the department and for

15

which no drilling permit has been issued by the department,

16

shall register the well with the department. A well owner or

17

operator who registers under this subsection and a well owner or

18

operator who has previously registered a well under this chapter

19

shall, on or before July 5, 1996, identify any abandoned well on

20

property which the well owner or operator owns or leases and

21

request approval from the department for classification of the

22

well as an orphan well. Information regarding wells to be

23

registered or identified shall be provided on a form, or in a

24

manner, prescribed by the department and shall include:

25

(1)  The name and address of the well operator and, if

26

the well operator is a corporation, partnership or person

27

nonresident of this Commonwealth, the name and address of an

28

agent for the operator upon whom notices, orders, process or

29

other communications issued under this chapter may be served.

30

(2)  The well name and the location of the well indicated

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1

by a point on a 7 1/2 minute United States Geological Survey

2

topographic map or any other location description sufficient

3

to enable the department to locate the well on the ground.

4

(3)  The approximate date of drilling and completing the

5

well, its approximate depth and producing horizons, well

6

construction information and, if available, driller's logs.

7

(4)  An indemnity bond, an alternative fee in lieu of

8

bonding or other evidence of financial security submitted by

9

the well operator and deemed appropriate by the department

10

and satisfying the requirements of section 3225 (relating to

11

bonding). No bond, alternative fee or other evidence of

12

financial security shall be required for identification of an

13

orphan well. For wells drilled prior to January 30, 1956,

14

which have not been bonded, the well operator shall have five

15

years to comply with the provisions of this paragraph.

16

(5)  A registration fee of $15 per well or blanket

17

registration fee of $250 for multiple well registration

18

applications submitted simultaneously. The registration fee

19

shall be waived until July 5, 1996, and no fee shall be

20

charged for identification of an orphan well.

21

(a.1)  Orphan wells.--After July 5, 1996, a well owner, well

22

operator or other person discovering an abandoned well on

23

property purchased or leased by the well owner, well operator or

24

other person shall identify it to the department within 60 days

25

of discovery and advise the department that he is seeking

26

classification of the well as an orphan well. No fee shall be

27

required for identification.

28

(b)  Extension.--The department may extend the one-year time

29

period under subsection (a) for good cause shown. The extension

30

may not exceed a period ending two years from April 18, 1985.

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1

The department may adopt and promulgate guidelines designed to

2

ensure a fair implementation of this section, recognizing the

3

practical difficulties of locating unpermitted wells and

4

complying with the reporting requirements of this chapter.

5

(c)  Installation of registration number.--The well operator

6

shall install the registration number issued by the department

7

in a legible, conspicuous and permanent manner on the well

8

within 60 days of issuance.

9

(d)  Definition.--For purposes of subsection (a)(4) and (5),

10

the term "owner" does not include an owner or possessor of

11

surface real property, on which an abandoned well is located,

12

who did not participate or incur costs in, and had no right of

13

control over, the drilling or extraction operation of the

14

abandoned well.

15

§ 3214.  Inactive status.

16

(a)  General rule.--Upon application, the department shall

17

grant inactive status for a period of five years for a permitted

18

or registered well, if the following requirements are met:

19

(1)  the condition of the well is sufficient to prevent

20

damage to the producing zone or contamination of fresh water

21

or other natural resources or surface leakage of any

22

substance;

23

(2)  the condition of the well is sufficient to stop the

24

vertical flow of fluids or gas within the well bore and is

25

adequate to protect freshwater aquifers, unless the

26

department determines the well poses a threat to the health

27

and safety of persons or property or to the environment;

28

(3)  the operator anticipates construction of a pipeline

29

or future use of the well for primary or enhanced recovery,

30

gas storage, approved disposal or other appropriate uses

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1

related to oil and gas well production; and

2

(4)  the applicant satisfies the bonding requirements of

3

sections 3213 (relating to well registration and

4

identification) and 3225 (relating to bonding), except that

5

the department may require additional financial security for

6

a well on which an alternative fee is being paid in lieu of

7

bonding under section 3225(d).

8

(b)  Monitoring.--The owner or operator of a well granted

9

inactive status shall be responsible for monitoring the

10

mechanical integrity of the well to ensure that the requirements

11

of subsection (a)(1) and (2) are met and shall report the same

12

on an annual basis to the department in the manner and form

13

prescribed by departmental regulations.

14

(c)  (Reserved).

15

(d)  Return to active status.--A well granted inactive status

16

under subsection (a) shall be plugged in accordance with section

17

3220 (relating to plugging requirements) or returned to active

18

status within five years of the date inactive status was

19

granted, unless the owner or operator applies for an extension

20

of inactive status which may be granted on a year-to-year basis

21

if the department determines that the owner or operator has

22

demonstrated ability to continue meeting the requirements of

23

this section and the owner or operator certifies that the well

24

will be of future use within a reasonable period of time. An

25

owner or operator who has been granted inactive status for a

26

well which is returned to active status prior to expiration of

27

the five-year period set forth in subsection (a) shall notify

28

the department that the well has been returned to active status

29

and shall not be permitted to apply for another automatic five-

30

year period of inactive status for the well. The owner or

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1

operator may make application to return the well to inactive

2

status, and the application may be approved on a year-to-year

3

basis if the department determines that the owner or operator

4

has demonstrated an ability to continue meeting the requirements

5

of this section and the owner or operator certifies that the

6

well will be of future use within a reasonable period of time.

7

The department shall approve or deny an application to extend a

8

period of inactive status or to return a well to inactive status

9

within 60 days of receipt of the application, and the

10

application shall not be unreasonably denied. If the department

11

has not completed its review of the application within 60 days,

12

the inactive status shall continue until the department has made

13

a determination on the request. If the department denies an

14

application to extend the period of inactive status or to return

15

a well to inactive status, a well owner or operator aggrieved by

16

the denial shall have the right to appeal the denial to the

17

Environmental Hearing Board within 30 days of receipt of the

18

denial. Upon cause shown by a well owner or operator, the board

19

may grant a supersedeas under section 4 of the act of July 13,

20

1988 (P.L.530, No.94), known as the Environmental Hearing Board

21

Act, so that the well in question may retain inactive status

22

during the period of the appeal.

23

(e)  Revocation of inactive status.--The department may

24

revoke inactive status and order immediate plugging of a well if

25

the well is in violation of this chapter or rules or regulations

26

promulgated under this chapter or if the owner or operator

27

demonstrates inability to perform obligations under this chapter

28

or becomes financially insolvent, or upon receipt by the

29

department of notice of bankruptcy proceedings by the permittee.

30

§ 3215.  Well location restrictions.

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1

(a)  General rule.--Wells may not be drilled within 200 feet,

2

or in the case of an unconventional well within 500 feet,

3

measured horizontally from any existing building or existing

4

water well without written consent of the owner of the building

5

or water well. If the distance restriction would deprive the

6

owner of the oil and gas rights of the right to produce or share

7

in the oil or gas underlying the surface tract, the well

8

operator may be granted a variance from the distance restriction

9

upon submission of a plan identifying the additional measures,

10

facilities or practices to be employed during well site

11

construction, drilling and operations. The variance, if granted,

12

shall include additional terms and conditions required by the

13

department to ensure safety and protection of affected persons

14

and property, including insurance, bonding, indemnification and

15

technical requirements.

16

(b)  Limitation.--No well site may be prepared or well

17

drilled within 100 feet, or in the case of an unconventional

18

well within 300 feet from the vertical well bore or 100 feet

19

from the edge of the well pad, whichever is greater, measured

20

horizontally from any stream, spring or body of water as

21

identified on the most current 7 1/2 minute topographic

22

quadrangle map of the United States Geological Survey or within

23

100 feet of any wetlands greater than one acre in size. No

24

unconventional well may be located within 1,000 feet from the

25

vertical well bore from a public water supply source as defined

26

in the Safe Drinking Water Act (Public Law 93-523, 21 U.S.C. §

27

349 and 42 U.S.C. §§ 201 and 300f et seq.). The department may

28

waive the distance restrictions upon submission of a plan

29

identifying additional measures, facilities or practices to be

30

employed during well site construction, drilling and operations.

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1

The waiver, if granted, shall impose permit conditions necessary

2

to protect the waters of the Commonwealth.

3

(c)  Impact.-- When reviewing a well permit application, the

4

department shall consider and may deny or condition a well

5

permit based on the impact of the proposed well on public

6

resources, including, but not limited to:

7

(1)  Publicly owned parks, forests, game lands and

8

wildlife areas.

9

(2)  National or State scenic rivers.

10

(3)  National natural landmarks.

11

(4)  Habitats of rare and endangered flora and fauna and

12

other critical communities.

13

(5)  Historical and archaeological sites listed on the

14

Federal or State list of historic places.

15

(6)  Sources used for public drinking water supplies in

16

accordance with subsection (b).

17

(7)  Whether the proposed well location is within a

18

floodplain.

19

(d)  Additional protective measures.--The department may

20

establish additional protective measures for storage of

21

hazardous chemicals and materials intended to be used, or that

22

have been used, on an unconventional well drilling site within

23

750 feet of a stream, spring or body of water identified on the

24

most current 7 1/2 minute topographic quadrangle map of the

25

United States Geological Survey.

26

(e)  Applicability.--The following shall apply:

27

(1)  This section shall not apply to a well proposed to

28

be drilled on on existing well site for which at least one

29

well permit has been issued prior to the effective date of

30

this section.

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1

(2)  Nothing in this section shall alter or abridge the

2

terms of any contracts, mortgages or other agreements entered

3

into prior to to the effective date of this section.

4

§ 3216.  Well site restoration.

5

(a)  General rule.--Each oil or gas well owner or operator

6

shall restore the land surface within the area disturbed in

7

siting, drilling, completing and producing the well.

8

(b)  Plan.--During and after earthmoving or soil disturbing

9

activities, including, but not limited to, activities related to

10

siting, drilling, completing, producing and plugging the well,

11

erosion and sedimentation control measures shall be implemented

12

in accordance with an erosion and sedimentation control plan

13

prepared in accordance with the act of June 22, 1937 (P.L.1987,

14

No.394), known as The Clean Streams Law.

15

(c)  Pits, drilling supplies and equipment.--Within nine

16

months after completion of drilling of a well, the owner or

17

operator shall restore the well site, remove or fill all pits

18

used to contain produced fluids or industrial wastes and remove

19

all drilling supplies and equipment not needed for production.

20

Drilling supplies and equipment not needed for production may be

21

stored on the well site if express written consent of the

22

surface landowner is obtained.

23

(d)  Items related to production or storage.--Within nine

24

months after plugging a well, the owner or operator shall remove

25

all production or storage facilities, supplies and equipment and

26

restore the well site.

27

(e)  Clean Streams Law.--Restoration activities required by

28

this chapter or in regulations promulgated under this chapter

29

shall also comply with all applicable provisions of The Clean

30

Streams Law.

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1

(f)  Violation of chapter.--Failure to restore the well site

2

as required in this chapter or regulations promulgated under

3

this chapter constitutes a violation of this chapter.

4

(g)  Extension.--The restoration period may be extended by

5

the department for an additional six months upon application of

6

the well owner or operator upon evidence of inability to comply

7

due to adverse weather conditions or lack of essential fuel,

8

equipment or labor.

9

§ 3217.  Protection of fresh groundwater and casing

10

requirements.

11

(a)  General rule.--To aid in protection of fresh

12

groundwater, well operators shall control and dispose of brines

13

produced from the drilling, alteration or operation of an oil or

14

gas well in a manner consistent with the act of June 22, 1937

15

(P.L.1987, No.394), known as The Clean Streams Law, or any rule

16

or regulation promulgated under The Clean Streams Law.

17

(b)  Casing.--To prevent migration of gas or fluids into

18

sources of fresh groundwater and pollution or diminution of

19

fresh groundwater, a string or strings of casing shall be run

20

and permanently cemented in each well drilled through the fresh

21

water-bearing strata to a depth and in a manner prescribed by

22

regulation by the department.

23

(c)  Procedure when coal has been removed.--If a well is

24

drilled at a location where coal has been removed from one or

25

more coal seams, the well shall be drilled and cased to prevent

26

migration of gas or fluids into the seam from which coal has

27

been removed, in a manner prescribed by regulation of the

28

department. The department and the coal operator, owner or

29

lessee shall be given at least 72 hours' notice prior to

30

commencement of work protecting the mine.

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1

(d)  Procedure when coal has not been removed.--If a well is

2

drilled at a location where the coal seam has not been removed,

3

the well shall be drilled to a depth and of a size sufficient to

4

permit placement of casing, packers in and vents on the hole at

5

the points and in the manner prescribed by regulation to exclude

6

gas or fluids from the coal seam, except gas or fluids found

7

naturally in the seam itself, and to enable monitoring the

8

integrity of the production casing.

9

§ 3218.  Protection of water supplies.

10

(a)  General rule.--In addition to the requirements of

11

subsection (c.1), a well operator who affects a public or

12

private water supply by pollution or diminution shall restore or

13

replace the affected supply with an alternate source of water

14

adequate in quantity  and quality for the purposes served by the

15

supply. The department shall ensure the restored or replaced

16

water supply meets the applicable water quality standards

17

consistent with the Safe Drinking Water Act (Public Law 93-523,

18

21 U.S.C. § 349 and 42 U.S.C. §§ 201 and 300f et seq.), the act

19

of May 1, 1984 (P.L.206, No.43), known as the Pennsylvania Safe

20

Drinking Water Act,  or predrilling or alteration water quantity

21

standards as determined by the department. The Environmental

22

Quality Board shall promulgate regulations necessary to meet the

23

requirements of this subsection.

24

(b)  Pollution or diminution of water supply.--A landowner or

25

water purveyor suffering pollution or diminution of a water

26

supply as a result of the drilling, alteration or operation of

27

an oil or gas well may so notify the department and request that

28

an investigation be conducted. Within ten days of notification,

29

the department shall investigate the claim and make a

30

determination within 45 days following notification. If the

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1

department finds that the pollution or diminution was caused by

2

drilling, alteration or operation activities or if it presumes

3

the well operator responsible for pollution under subsection

4

(c), the department shall issue orders to the well operator

5

necessary to assure compliance with subsection (a), including

6

orders requiring temporary replacement of a water supply where

7

it is determined that pollution or diminution may be of limited

8

duration.

9

(b.1)  Toll-free telephone number.--The department shall

10

establish a single Statewide toll-free telephone number that

11

persons may use to report cases of water contamination. The

12

Statewide toll-free telephone number shall be provided in a

13

conspicuous manner in the notification required under section

14

3211(b.1) (relating to well permits) , shall be posted in a

15

conspicuous place at the drilling site and shall be posted on

16

the department's Internet website.

17

(b.2)  Responses to calls.--The department shall develop

18

appropriate administrative responses to calls received on the

19

Statewide toll-free telephone number for water contamination.

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 that is within 1,000 

23

feet, or in the case of an unconventional well within 3,000 feet

24

from the vertical well bore, of an oil or gas well, if pollution

25

occurred within  six months, or in the case of an unconventional

26

well within 12 months, after stimulation or alteration of the

27

unconventional well.

28

(c.1)  Requirement.--If the affected water supply is within

29

the rebuttable presumption area as provided in subsection (c)

30

and the rebuttable presumption applies , the operator shall

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1

provide a temporary water supply if the water user is without a

2

readily available alternative source of water. The temporary

3

water supply provided under this subsection shall be adequate in

4

quantity and quality for the purposes served by the supply.

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)  The pollution existed prior to the drilling,

9

stimulation or alteration activities as determined by a

10

predrilling or prealteration survey.

11

(2)  The landowner or water purveyor refused to allow the

12

operator access to conduct a predrilling or prealteration

13

survey.

14

(3)  The water supply is not within 1,000 feet, or in the

15

case of an unconventional well within 3,000 feet, of the  

16

vertical well bore.

17

(4)  The pollution occurred  more than six months, or in

18

the case of an unconventional well more than 12 months after

19

drilling, stimulation or alteration activities.

20

(5)  The pollution occurred as the result of a cause

21

other than the drilling, stimulation or alteration activity.

22

(e)  Independent certified laboratory.--An operator electing

23

to preserve a defense under subsection (d)(1) or (2) shall

24

retain an independent certified laboratory to conduct a

25

predrilling or prealteration survey of the water supply. A copy

26

of survey results shall be submitted to the department and the

27

landowner or water purveyor in the manner prescribed by the

28

department.

29

(f)  Other remedies preserved.--Nothing in this section shall

30

prevent a landowner or water purveyor claiming pollution or

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1

diminution of a water supply from seeking any other remedy at

2

law or in equity.

3

(g)  Facility operation qualifications.--The department shall

4

ensure that a facility which seeks a National Pollutant

5

Discharge Elimination System permit for the purposes of treating

6

and discharging wastewater originating from oil and gas

7

activities into waters of this Commonwealth is operated by a

8

competent and qualified individual.

9

§ 3218.1.  Containment for unconventional wells.

10

(a)  Sites.--Unconventional well pad sites shall be designed

11

and constructed to prevent spills to the ground surface or

12

spills off the well pad area. Containment practices shall meet

13

all of the following:

14

(1)  Be instituted on the pad during both drilling and

15

hydraulic fracturing operations.

16

(2)  Be sufficiently impervious and able to contain

17

spilled material or waste until it can be removed or treated.

18

(3)  Be compatible with the waste material or waste

19

stored or used within the containment.

20

(b)  Plan.--The applicant shall submit a plan to the

21

department describing the containment practices to be utilized

22

and the area of the well pad where containment systems will be

23

employed. The plan shall include a description of the equipment

24

to be kept onsite during drilling and hydraulic fracturing

25

operations to prevent a spill from leaving the well pad.

26

(c)  Materials stored.--Containment systems shall be used

27

wherever any of the following are stored:

28

(1)  Drilling mud.

29

(2)  Hydraulic oil.

30

(3)  Diesel fuel.

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1

(4)  Drilling mud additives.

2

(5)  Hydraulic fracturing additives.

3

(6)  Hydraulic fracturing flowback.

4

(d)  Capacity.--Areas where any additives, chemicals, oils or

5

fuels are to be stored must have sufficient containment capacity

6

to hold the volume of the largest container stored in the area

7

plus 10% to allow for precipitation, unless the container is

8

equipped with individual secondary containment.

9

§ 3218.2.  Transportation records regarding wastewater fluids.

10

(a)  Requirements.--A well operator that transports

11

wastewater fluids shall do all of the following:

12

(1)  Maintain records for five years, in accordance with

13

regulations under subsection (b) and on a form approved by

14

the department, of the amount and destination of the fluids

15

transported.

16

(2)  Make the records available to the department upon

17

request.

18

(b)  Recordkeeping.--Recordkeeping requirements shall be

19

determined by the department and shall include the following:

20

(1)  The number of gallons of wastewater fluids produced

21

in the drilling, stimulation or alteration of a well.

22

(2)  Upon completion of the well, the name of the person

23

or company that transported the wastewater fluids to a

24

disposal site or to a location other than the well site.

25

(3)  Each location where wastewater fluids were disposed

26

of or transported and the volumes that were disposed of at

27

the location.

28

(4)  The method of disposal.

29

§ 3218.3.  Emergency response information.

30

The Pennsylvania Emergency Management Agency and the

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1

department shall  require the operators of all unconventional

2

wells to do all of the following:

3

(1)  Adopt a unique GPS coordinate address for each

4

unconventional well at both the access road entrance and well

5

pad site.

6

(2)  Register that address with the agency, the

7

department and the county emergency management organization

8

within the county where the unconventional well is located.

9

(3)  Require the development of an emergency response

10

plan and file that plan with the agency, the department and

11

the county emergency management organization with

12

jurisdiction over the unconventional well. The county shall

13

disseminate the GPS address and emergency response plan to

14

the local emergency management organization in which the

15

unconventional well is located.

16

(4)  Post a reflective sign at the entrance to each well

17

site with the specific address of that site, the coordinates

18

for the site, the emergency contact number for the operator

19

and any other information as the agency or the department

20

deems necessary.

21

§ 3218.4.  Notification to public drinking water systems.

22

Upon receiving notification of spill the department shall,

23

after investigating the incident, notify any public drinking

24

water facility that could be affected by the event that the

25

event occurred. The notification shall contain a brief

26

description of the event and any expected impact on water

27

quality.

28

§ 3218.5.  Corrosion control requirements.

29

The following shall apply to corrosion control requirements:

30

(1)  All buried metallic structures associated with gas

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1

wells including pipelines, well casings and underground tanks

2

must have corrosion protection measures designed to protect

3

the pipeline installed and placed in operation in accordance

4

with regulations promulgated by the Environmental Quality

5

Board.

6

(2)  Permanent aboveground and underground tanks must

7

comply with the applicable corrosion control requirements in

8

the department's regulations.

9

(3)  The corrosion control procedures under paragraphs

10

(1) and (2) must be carried out by or under the direction of

11

a person qualified in corrosion methods.

12

(4)  An operator of a new, replaced, relocated or

13

otherwise changed line must be in compliance with the

14

applicable requirements of this section by the date the line

15

goes into service.

16

§ 3218.6.  Gathering lines.

17

(a)  Requirement.--Owners and operators of gathering lines

18

shall comply with section 2(5)(i.1) of the act of December 10,

19

1974 (P.L.852, No.287), referred to as the Underground Utility

20

Line Protection Law.

21

(b)  Definition.--As used in this section, the term

22

"gathering lines" means a pipeline used to transport natural gas

23

from a production facility to a transmission line or main.

24

§ 3219.  Use of safety devices.

25

Any person engaged in drilling an oil or gas well shall equip

26

it with casings of sufficient strength, and other safety devices

27

as are necessary, in the manner prescribed by regulation of the

28

department, and shall use every effort and endeavor effectively

29

to prevent blowouts, explosions and fires.

30

§ 3220.  Plugging requirements.

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1

(a)  General rule.--Upon abandoning a well, the owner or

2

operator shall plug it in the manner prescribed by regulation of

3

the department to stop vertical flow of fluids or gas within the

4

well bore, unless the department has granted inactive status for

5

the well or it has been approved by the department as an orphan

6

well. If the department determines that a prior owner or

7

operator received economic benefit, other than economic benefit

8

derived only as a landowner or from a royalty interest, after

9

April 18, 1979, from an orphan well or an unregistered well, the

10

owner or operator shall be responsible for plugging the well. In

11

the case of a gas well penetrating a workable coal seam which

12

was drilled prior to January 30, 1956, or which was permitted

13

after that date but not plugged in accordance with this chapter,

14

if the owner or operator or a coal operator or an agent proposes

15

to plug the well to allow mining through of it, the gas well

16

shall be cleaned to a depth of at least 200 feet below the coal

17

seam through which mining is proposed and, unless impracticable,

18

to a point 200 feet below the deepest mineable coal seam. The

19

gas well shall be plugged from that depth in accordance with

20

section 13 of the act of December 18, 1984 (P.L.1069, No.214),

21

known as the Coal and Gas Resource Coordination Act, and the

22

regulations of the department.

23

(b)  Areas underlain by coal.--Prior to the plugging and

24

abandonment of a well in an area underlain by a workable coal

25

seam, the well operator or owner shall notify the department and

26

the coal operator, lessee or owner and submit a plat, on a form

27

to be furnished by the department, showing the location of the

28

well and fixing the date and time plugging will commence, which

29

shall be not less than three working days, nor more than 30

30

days, after the notice is received, to permit representatives of

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1

the persons notified to be present at the plugging. Notice and

2

the right to be present may be waived by the department and the

3

coal operator, lessee or owner, but waiver by coal operator,

4

lessee or owner shall be in writing and a copy shall be attached

5

to the notice of abandonment filed with the department under

6

this section. Whether or not representatives attend, if the well

7

operator has fully complied with this section, the well operator

8

may proceed, at the time fixed, to plug the well in the manner

9

prescribed by regulation of the department. When plugging has

10

been completed, a certificate shall be prepared and signed, on a

11

form to be furnished by the department, by two experienced and

12

qualified people who participated in the work setting forth the

13

time and manner in which the well was plugged. One copy of the

14

certificate shall be mailed to each coal operator, lessee or

15

owner to whom notice was given by certified mail and another

16

shall be mailed to the department.

17

(c)  Abandoned wells.--Prior to abandonment of a well, except

18

an uncompleted bore hole plugged immediately upon suspension of

19

drilling in an area not underlain by a workable coal seam, the

20

well operator shall notify the department of the intention to

21

plug and abandon the well and submit a plat, on a form to be

22

furnished by the department, showing the location of the well

23

and fixing the date and time at which plugging will commence,

24

which shall be not less than three working days, nor more than

25

30 days, after the notice is received, to permit a department

26

representative to be present at the plugging. The notice or

27

waiting period may be verbally waived by the department. In

28

noncoal areas where more than one well has been drilled as part

29

of the same development project and the wells are now to be

30

plugged, the department shall be given three working days'

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1

notice prior to plugging the first well of the project, subject

2

to waiver of notice described in subsection (b). In the plugging

3

of subsequent wells, no additional notice shall be required if

4

plugging on the project is continuous. If plugging of subsequent

5

wells is delayed for any reason, notice shall be given to the

6

department of continuation of the project. Whether or not a

7

representative attends, if the well operator has fully complied

8

with this section, the well operator may proceed, at the time

9

fixed, to plug the well in the manner prescribed by regulation

10

of the department. When plugging has been completed, a

11

certificate shall be prepared, on a form to be furnished by the

12

department, by two experienced and qualified people who

13

participated in the work setting forth the time and manner in

14

which the well was plugged. A copy of the certificate shall be

15

mailed to the department.

16

(d)  Wells abandoned upon completion of drilling.--If a well

17

is to be abandoned immediately after completion of drilling, the

18

well operator shall give at least 24 hours' notice by telephone,

19

confirmed by certified mail, to the department and to the coal

20

operator, lessee or owner, if any, fixing the date and time when

21

plugging will commence. Notice and the right to be present may

22

be waived by the department and the coal operator, lessee or

23

owner, if any. Whether or not representatives of the department

24

or coal operator, lessee or owner, if any, attend, if the well

25

operator has fully complied with the requirements of this

26

section, the well operator may proceed, at the time fixed, to

27

plug the well in the manner provided by regulation of the

28

department. The well operator shall prepare the certificate of

29

plugging and mail copies of the same as provided in subsection

30

(b).

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1

(e)  Orphan wells.--If a well is an orphan well or abandoned

2

without plugging, or if a well is in operation but not

3

registered under section 3213 (relating to well registration and

4

identification), the department may enter upon the well site and

5

plug the well and  sell equipment, casing and pipe at the site

6

which may have been used in production of the well in order to

7

recover the costs of plugging. The department shall make an

8

effort to determine ownership of a well which is in operation

9

but has not been registered and provide written notice to the

10

owner of pending action under this subsection. If the department

11

cannot determine ownership within 30 days, it may proceed under

12

this subsection. Costs of plugging shall have priority over all

13

liens on equipment, casing and pipe, and the sale shall be free

14

and clear of those liens to the extent that the cost of plugging

15

exceeds the sale price. If the amount obtained for casing and

16

pipe salvaged at the site is inadequate to pay for plugging, the

17

owner or operator of the abandoned or unregistered well shall be

18

liable for the additional costs.

19

(f)  Definition.--For purposes of this section, the term

20

"owner" does not include the owner or possessor of surface real

21

property, on which an abandoned well is located, who did not

22

participate or incur costs in and had no right of control over

23

the drilling or extraction operation of the abandoned well.

24

§ 3221.  Alternative methods.

25

A well operator may request permission to use a method or

26

material other than those required by this chapter for casing,

27

plugging or equipping a well in an application to the department

28

which describes the proposed alternative in reasonable detail

29

and indicates the manner in which it will accomplish the goals

30

of this chapter. Notice of filing of the application shall be

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1

given by the well operator by certified mail to any affected

2

coal operators, who may, within 15 days after the notice, file

3

objections to the proposed alternative method or material. If no

4

timely objections are filed or raised by the department, the

5

department shall determine whether to allow use of the proposed

6

alternative method or material.

7

§ 3222.  Well reporting requirements.

8

(a)  General rule.--Except as provided in subsection (a.1),

9

each well operator shall file with the department, on a form

10

provided by the department, an annual report specifying the

11

amount of production, on the most well-specific basis available,

12

along with the status of each well, except that in subsequent

13

years only changes in status must be reported. The Commonwealth

14

may utilize reported information in enforcement proceedings, in

15

making designations or determinations under section 1927-A of

16

the act of April 9, 1929 (P.L.177, No.175), known as The

17

Administrative Code of 1929, or in aggregate form for

18

statistical purposes.

19

(a.1)  Unconventional wells.--Each operator of a well which

20

produces gas from an unconventional well shall file with the

21

department, on a form provided by the department, a semiannual

22

report specifying the amount of production on the most well-

23

specific basis available. The initial report under this

24

subsection shall be filed on or before August 15, 2010, and

25

shall include production data from the preceding calendar year

26

and specify the status of each well. In subsequent reports, only

27

changes in status must be reported. Subsequent semiannual

28

reports shall be filed with the department on or before February

29

15 and August 15 of each year and shall include production data

30

from the preceding reporting period. The Commonwealth may

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1

utilize reported information in enforcement proceedings, in

2

making designations or determinations under section 1927-A of

3

The Administrative Code of 1929 or in aggregate form for

4

statistical purposes. Beginning November 1, 2010, the department

5

shall make the reports available on its publicly accessible

6

Internet website. Costs incurred by the department to comply

7

with the requirements of this subsection shall be paid out of

8

the fees collected under section 3211(d) (relating to well

9

permits).

10

(b)  Collection of data.--Well operators shall maintain a

11

record of each well drilled or altered. A record containing the

12

information required by the department, including the

13

information required under subsection (b.1), shall be filed

14

within 30 days after stimulation of the well. A completion

15

report containing any additional required information shall be

16

filed within 30 days after the stimulation of the well and shall

17

be kept on file by the department. Upon request of the

18

department, the well operator shall, within 90 days of

19

completion or recompletion of drilling, submit a copy of any

20

electrical, radioactive or other standard industry logs which

21

have been run and, upon request by the department within one

22

year, a copy of drill stem test charts, formation water

23

analysis, porosity, permeability or fluid saturation

24

measurements, core analysis and lithologic log or sample

25

description or other similar data as compiled. No information

26

shall be required unless the well operator had it compiled in

27

the ordinary course of business, and interpretation of data is

28

not required to be filed.

29

(b.1)  Report contents.--The completion report shall contain

30

the operator's stimulation record which shall include the

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1

following:

2

(1)  A descriptive list of the chemical additives in the

3

stimulation fluids, including any acid, biocide, breaker,

4

brine, corrosion inhibitor, crosslinker, demulsifier,

5

friction reducer, get, iron control, oxygen scavenger, pH

6

adjusting agent, proppant, scale inhibitor and surfactant.

7

(2)  The percent by volume of each chemical additive in

8

the stimulation fluid.

9

(3)  A list of the chemicals in the material safety data

10

sheets, by name and chemical abstract service number,

11

corresponding to the appropriate chemical additive.

12

(4)  The percent by volume of each chemical list in the

13

material safety data sheets.

14

(5)  The total volume of the base fluid.

15

(6)  A list of water sources used under the approved

16

water management plan and the volume of water used.

17

(7)  The pump rates and pressure used in the well.

18

(8)  The total volume of recycled water used.

19

(b.2)  Trade secret or confidential proprietary

20

information.--When an operator submits its stimulation record

21

under subsection (b.1), it may designate specific portions of

22

the stimulation record as containing a trade secret or

23

confidential proprietary information. The department shall

24

prevent disclosure of the designated confidential information to

25

the extent permitted by the act of February 14, 2008 (P.L.6,

26

No.3), known as the Right-to-Know Law, or other Federal or State

27

law.

28

(b.3)  List of the chemical constituents.--In addition to

29

submitting a stimulation record to the department under

30

subsection (b.1) and subject to the protections afforded for

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1

trade secrets and confidential proprietary information under the

2

Right-to-Know Law, the operator shall arrange to provide a list

3

of the chemical constituents of the chemical additives used to

4

hydraulically fracture a well, by name and chemical abstract

5

service number, unless the additive does not have a number, to

6

the department upon written request of the department.

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 of data.--Data required under subsection (b)

15

and drill cuttings required under subsection (c) shall be

16

retained by the well operator and filed with the department no

17

more than three years after completion of the well. Upon

18

request, the department shall extend the deadline up to five

19

years from the date of completion of the well. The department

20

shall be entitled to utilize information collected under this

21

subsection in enforcement proceedings, in making designations or

22

determinations under section 1927-A of The Administrative Code

23

of 1929 and in aggregate form for statistical purposes.

24

§ 3223.  Notification and effect of well transfer.

25

The owner or operator of a well shall notify the department

26

in writing within 30 days, in a form directed by regulation, of

27

sale, assignment, transfer, conveyance or exchange by or to the

28

owner of the well. A transfer shall not relieve the well owner

29

or operator of an obligation accrued under this chapter, nor

30

shall it relieve the owner or operator of an obligation to plug

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1

the well until the requirements of section 3225 (relating to

2

bonding) have been met, at which time the transferring owner or

3

operator shall be relieved from all obligations under this

4

chapter, including the obligation to plug the well.

5

§ 3224.  Coal operator responsibilities.

6

(a)  General rule.--At any time prior to removing coal or

7

other underground materials from, or extending the workings in,

8

a coal mine within 500 feet of an oil or gas well of which the

9

coal operator has knowledge, or within 500 feet of an approved

10

well location of which the coal operator has knowledge, the coal

11

operator, by certified mail, shall forward to or file with the

12

well operator and the department a copy of the relevant part of

13

all maps and plans which it is presently required by law to

14

prepare and file with the department, showing the pillar which

15

the coal operator proposes to leave in place around each oil or

16

gas well in the projected workings. Thereafter, the coal

17

operator may proceed with mining operations in the manner

18

projected on the maps and plans, but the operator may not remove

19

coal or cut a passageway within 150 feet of the well or approved

20

well location without written approval under this section. If,

21

in the opinion of the well operator or the department, the plan

22

indicates that the proposed pillar is inadequate to protect

23

either the integrity of the well or public health and safety,

24

the affected well operator shall attempt to reach an agreement

25

with the coal operator on a suitable pillar, subject to approval

26

of the department. Upon failure to agree, the well operator may,

27

within ten days after receipt of the proposed plan under this

28

section, file objections under section 3251 (relating to

29

conferences), indicating the size of the pillar to be left as to

30

each well. If objections are not timely filed and the department

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1

has none, the department shall grant approval, reciting that

2

maps and plans have been filed, no objections have been made

3

thereto and the pillar proposed to be left for each well is

4

approved in the manner as projected.

5

(b)  Objections.--If an objection is filed by the well

6

operator or raised by the department, the department shall order

7

that a conference be held under section 3251 within ten days of

8

the filing of objections. At the conference, the coal operator

9

and the person who has objected shall attempt to agree on a

10

proposed plan, showing the pillar to be left around each well,

11

which will satisfy the objections and receive department

12

approval. If an agreement is reached, the department shall grant

13

approval to the coal operator, reciting that a plan has been

14

filed and the pillar to be left for each well is approved

15

pursuant to the agreement. If an agreement is not reached on a

16

plan showing the pillar to be left with respect to a well, the

17

department, by appropriate order, shall determine the pillar to

18

be left with respect to the well. In a proceeding under this

19

section, the department shall follow as nearly as is possible

20

the original plan filed by the coal operator. The department

21

shall not require the coal operator to leave a pillar in excess

22

of 100 feet in radius, except that the department may require a

23

pillar of up to 150 feet in radius if the existence of unusual

24

conditions is established. Pillars determined by the department

25

shall be shown on maps or plans on file with the department as

26

provided in subsection (a) and the department shall approve the

27

pillar to be left for each well.

28

(c)  Pillars of reduced size.--Application may be made at any

29

time to the department by the coal operator to leave a pillar of

30

a size smaller than shown on the plan approved or determined by

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1

the department under this section. If an application is filed,

2

the department shall:

3

(1)  follow the appropriate procedure under subsection

4

(a) or (b);

5

(2)  by appropriate order, determine a plan involving a

6

pillar of a smaller size as to any well covered by the

7

application; and

8

(3)  grant approval for the pillar to be left with

9

respect to each well.

10

(d)  Violation.--No coal operator, without written approval

11

of the department after notice and opportunity for a hearing

12

under this section, shall remove coal or cut a passageway so as

13

to leave a pillar of smaller size, with respect to an oil or gas

14

well, than that approved by the department under this chapter.

15

(e)  Limitation.--With regard to a coal pillar required by

16

law to be left around a well drilled prior to April 18, 1985,

17

nothing in this chapter shall be construed to:

18

(1)  require a well operator to pay for the coal pillar;

19

(2)  affect a right which a coal operator may have had

20

prior to April 18, 1985, to obtain payment for the coal

21

pillar; or

22

(3)  affect a duty or right which a storage operator or

23

landowner may have had prior to April 18, 1985, to pay or not

24

pay for the coal pillar.

25

(f)  Mining through plugged wells.--A coal operator who

26

intends to mine through a plugged oil or gas well or otherwise

27

completely remove any pillar from around that well shall file a

28

plan under subsection (a) which shall be subject to all of the

29

provisions of this section. No coal operator may mine through a

30

plugged oil or gas well of which he has knowledge until written

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1

approval has been granted by the department in accordance with

2

this section. The Bureau of Deep Mine Safety in the department

3

shall have the authority to establish conditions under which the

4

department may approve a coal operator's plan to mine through a

5

plugged oil or gas well.

6

§ 3225.  Bonding.

7

(a)  General rule.--The following shall apply:

8

(1)  Except as provided in subsection (d), upon filing an

9

application for a well permit, and before continuing to

10

operate an oil or gas well, the owner or operator of the well

11

shall file with the department a bond covering the well and

12

well site on a form to be prescribed and furnished by the

13

department. A bond filed with an application for a well

14

permit shall be payable to the Commonwealth and conditioned

15

upon the operator's faithful performance of all drilling,

16

water supply replacement, restoration and plugging

17

requirements of this chapter. A bond for a well in existence

18

on April 18, 1985, shall be payable to the Commonwealth and

19

conditioned upon the operator's faithful performance of all

20

water supply replacement, restoration and plugging

21

requirements of this chapter. The amount of the bond required

22

shall be in the following amounts and shall be adjusted by

23

the Environmental Quality Board every three years to reflect

24

the projected costs to the Commonwealth of plugging the well:

25

(i)  For a well which is less than 6,000 feet in

26

depth and which is permitted prior to the effective date

27

of this section, $2,500. The operator shall not be

28

required to provide a bond under this paragraph which

29

exceeds $25,000. The bond amount may be adjusted by the

30

Environmental Quality Board every two years to reflect

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1

the projected costs to the Commonwealth of performing

2

well plugging.

3

(ii)  For a well which is less than 6,000 feet in

4

bore length and which is permitted after the effective

5

date of this section, $3,500. The operator shall not be

6

required to provide a bond under this paragraph which

7

exceeds $40,000.

8

(iii)  For wells with a total well bore length

9

greater than 6,000 feet:

10

(A)  For operating up to 25 wells, $10,000 per

11

well, provided the operator may not be required to 

12

provide a bond under this section exceeding  

13

$140,000.

14

(B)  For operating 26 to 50 wells,  $140,000 plus

15

$10,000 per well for each well in excess of 25 wells,

16

provided the operator may not be required to provide

17

a bond under this section exceeding  $290,000.

18

(C)  For operating 51 to 150 wells,  $290,000 

19

plus $10,000 per well for each well in excess of 50

20

wells, provided the operator may not be required to

21

provide a bond under this section exceeding  

22

$430,000.

23

(D)  For operating more than 150 wells,  $430,000 

24

plus $10,000 per well for each well in excess of 150

25

wells, provided the operator may not be required to

26

provide a bond under this section exceeding  

27

$600,000.

28

(2)  In lieu of individual bonds for each well, an owner

29

or operator may file a blanket bond, for the appropriate

30

amount as indicated under paragraph (1), on a form prepared

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1

by the department, covering all of its wells in this

2

Commonwealth, as enumerated on the bond form.

3

(3)  Liability under the bond shall continue until the

4

well has been properly plugged in accordance with this

5

chapter and for a period of one year after filing of the

6

certificate of plugging with the department. Each bond shall

7

be executed by the operator and a corporate surety licensed

8

to do business in this Commonwealth and approved by the

9

secretary. In lieu of a corporate surety, the operator may

10

deposit with the department:

11

(i)  cash;

12

(ii)  certificates of deposit or automatically

13

renewable irrevocable letters of credit, from financial

14

institutions chartered or authorized to do business in

15

this Commonwealth and regulated and examined by the

16

Commonwealth or a Federal agency, which may be terminated

17

at the end of a term only upon 90 days' prior written

18

notice by the financial institution to the permittee and

19

the department;

20

(iii)  negotiable bonds of the United States

21

Government or the Commonwealth, the Pennsylvania Turnpike

22

Commission, the State Public School Building Authority or

23

any municipality within the Commonwealth; or

24

(iv)  United States Treasury Bonds issued at a

25

discount without a regular schedule of interest payments

26

to maturity, otherwise known as Zero Coupon Bonds, having

27

a maturity date of not more than ten years after the date

28

of purchase and at the maturity date having a value under

29

paragraph (1). The cash deposit, certificate of deposit,

30

amount of the irrevocable letter of credit or market

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1

value of the securities shall be equal at least to the

2

sum of the 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 that 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 that

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 that applies for

15

one or more permits for additional wells shall

16

deposit $2,000 and shall, thereafter, annually

17

deposit $1,150 plus $150 for each additional well to

18

be permitted that year until the obligations of this

19

section are fully met. An operator of 26 to 50 wells

20

shall 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 that, prior to August

7

3, 1992, have paid a fee in lieu of bond under

8

subparagraph (i), and that, by August 3, 1993, chose

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 3, 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 :

25

(i)  immediately submit the appropriate bond amount

26

in full; or

27

(ii)  cease all operations and plug all wells.

28

(d.1)  Individuals.--The following shall apply:

29

(1)  An individual who is unable to obtain a bond to

30

drill new wells due to inability to demonstrate financial

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1

resources may meet the collateral bond requirements of

2

subsection (a) by making phased deposits of collateral to

3

fully collateralize the bond. The individual shall be limited

4

to drilling ten new wells per calendar year and, for each

5

well to be drilled, deposit $500 and make an annual deposit

6

of 10% of the remaining bond amount for a period of ten

7

years. Interest accumulated shall become a part of the bond

8

until the collateral plus accumulated interest equal the

9

amount of the required bond. The collateral shall be

10

deposited in trust with the State Treasurer under subsection

11

(a) or with a bank selected by the department which shall act

12

as trustee for the benefit of the Commonwealth to guarantee

13

the individual's compliance with the drilling, water supply

14

replacement, restoration and plugging requirements of this

15

chapter. The individual shall pay all costs of the trust.

16

(2)  Individuals may continue to use phased collateral to

17

obtain permits if they have not missed a payment for a well

18

drilled under this provision and remain in compliance with

19

this chapter. If an individual misses a payment, the

20

individual shall:

21

(i)  immediately submit the appropriate bond amount

22

in full; or

23

(ii)  cease all operations and plug all wells.

24

(3)  For purposes of this subsection, an "individual"

25

means a natural person doing business under his own name.

26

(e)  Reservation of remedies.--All remedies  for violations

27

of this chapter, regulations adopted under this chapter and

28

conditions of permits are expressly preserved. Nothing in this

29

section shall be construed as an exclusive penalty or remedy for

30

violations of law. No action taken under this section shall

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1

waive or impair any other remedy or penalty provided in law.

2

(f)  Change of law.--Owners or operators that have failed to

3

meet the requirements of this section shall not be required to

4

make payments under this section on a retroactive basis as a

5

condition of obtaining a permit under this chapter, nor shall

6

the failure be deemed a violation of 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 rule.--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 of the storage reservoir:

9

(i)  Name of the operator.

10

(ii)  Date drilled.

11

(iii)  Total depth.

12

(iv)  Depth of production if the well was productive

13

of oil or gas.

14

(v)  Initial rock pressure and volume.

15

(vi)  Depths at which all coal seams were

16

encountered.

17

(vii)  A copy of the driller's log or other similar

18

information.

19

(5.1)  At the time of the filing of the maps and data, a

20

statement shall be filed:

21

(i)  detailing efforts made to determine that the

22

wells shown are accurately located on the map;

23

(ii)  affirming that the wells shown represent, to

24

the best of the operator's knowledge, all oil or gas

25

wells which have ever been drilled into or below the

26

storage stratum within the proposed storage reservoir or

27

within the reservoir protective area;

28

(iii)  stating whether the initial injection is for

29

testing purposes;

30

(iv)  stating the maximum pressure at which injection

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1

and storage of gas is contemplated; and

2

(v)  providing a detailed explanation of the methods

3

to be used or which previously have been used in

4

drilling, cleaning out, reconditioning and plugging wells

5

in the storage reservoir or within the reservoir

6

protective area.

7

(6)  The map and data required to be filed under

8

paragraphs (5) and (5.1) shall be amended or supplemented

9

semiannually if material changes occur. The department may

10

require a storage operator to amend or supplement the map or

11

data at more frequent intervals if material changes have

12

occurred justifying the earlier filing.

13

(b)  Other reporting requirements.--A person who is injecting

14

gas into or storing gas in a storage reservoir not at the time

15

subject to subsection (a), by a process other than that of

16

secondary recovery or gas recycling, shall, within 60 days, or a

17

longer period set by departmental regulations, file maps and

18

data required by departmental regulation and as follows:

19

(1)  A person who, after April 18, 1985, proposes to

20

inject or store gas in a storage reservoir in an area not

21

covered by subsection (a) by a process other than that of

22

secondary recovery or gas recycling shall file the required

23

map and data with the department not less than six months

24

prior to the starting of actual injection or storage.

25

(2)  The map shall be prepared by a competent engineer or

26

competent geologist and show:

27

(i)  the stratum in which the existing or proposed

28

storage reservoir is or is to be located;

29

(ii)  the geographic location of the outside

30

boundaries of the storage reservoir; and

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1

(iii)  the location of all known oil or gas wells

2

within the reservoir, or within 3,000 linear feet

3

thereof, which have been drilled into or through the

4

storage stratum, indicating which have been or are to be

5

cleaned out and plugged or reconditioned for storage and

6

the proposed location of all additional wells which are

7

to be drilled within the storage reservoir or within

8

3,000 linear feet thereof.

9

(3)  The following, if available, shall be furnished for

10

all known oil or gas wells which have been drilled into or

11

through the storage stratum within the storage reservoir or

12

within 3,000 linear feet of the storage reservoir:

13

(i)  Name of the operator.

14

(ii)  Date drilled.

15

(iii)  Total depth.

16

(iv)  Depth of production if the well was productive

17

of oil or gas.

18

(v)  Initial rock pressure and volume.

19

(vi)  A copy of the driller's log or other similar

20

information.

21

(3.1)  At the time of the filing of the maps and data, a

22

statement shall be filed:

23

(i)  detailing efforts made to determine that the

24

wells shown are accurately located on the map;

25

(ii)  affirming that the wells shown represent, to

26

the best of the operator's knowledge, all oil or gas

27

wells which have ever been drilled into or below the

28

storage stratum within the proposed storage reservoir;

29

(iii)  stating whether the initial injection is for

30

testing purposes;

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1

(iv)  stating the maximum pressure at which injection

2

and storage of gas is contemplated; and

3

(v)  providing a detailed explanation of the methods

4

to be used or which previously have been used in

5

drilling, cleaning out, reconditioning and plugging wells

6

in the storage reservoir.

7

(4)  The map and data required to be filed under

8

paragraphs (3) and (3.1) shall be amended or supplemented

9

semiannually if material changes occur. The department may

10

require a storage operator to amend or supplement the map or

11

data at more frequent intervals if material changes have

12

occurred justifying the earlier filing.

13

(c)  Political subdivisions.--Storage operators shall give

14

notice to the department of the name of each political

15

subdivision and county in which the operator maintains and

16

operates a gas storage reservoir.

17

(d)  Notice to affected persons.--At the time of the filing

18

of maps and data and the filing of amended or supplemental maps

19

or data required by this section, the person filing the

20

information shall give written notice of the filing to all

21

persons who may be affected under the provisions of this chapter

22

by the storage reservoir described in the maps or data. Notices

23

shall contain a description of the boundaries of the storage

24

reservoir. When a person operating a coal mine or owning an

25

interest in coal properties which are or may be affected by the

26

storage reservoir requests, in writing, a copy of any map or

27

data filed with the department, the copy shall be furnished by

28

the storage operator.

29

(e)  Outside boundaries.--For purposes of this chapter, the

30

outside boundaries of a storage reservoir shall be defined by

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1

the location of those wells around the periphery of the storage

2

reservoir which had no gas production when drilled in the

3

storage stratum. The boundaries shall be originally fixed or

4

subsequently changed if, based on the number and nature of the

5

wells and the geological and production knowledge of the storage

6

stratum, its character, permeability, distribution and operating

7

experience, it is determined in a conference under section 3251

8

(relating to conferences) that modifications should be made.

9

(f)  Inapplicability of section.--The requirements of this

10

section shall not apply to the operator of an underground gas

11

storage reservoir so long as the reservoir is located more than

12

10,000 linear feet from an operating coal mine, except that the

13

storage operator shall give notice to the department of the name

14

of each political subdivision and county in which the operator

15

maintains and operates a gas storage reservoir. In political

16

subdivisions and counties where both gas storage reservoirs and

17

coal mines are being operated, the department may request the

18

storage operator to furnish maps showing geographical locations

19

and outside boundaries of the storage reservoirs. The department

20

shall keep a record of the information and promptly notify the

21

coal operator and the storage operator when notified by them

22

that the coal mine and storage reservoir are within 10,000

23

linear feet of each other.

24

§ 3232.  Reporting requirements for coal mining operations.

25

(a)  General rule.--A person owning or operating a coal mine

26

shall file with the department a map prepared and sealed by a

27

competent individual licensed as a professional engineer or

28

professional land surveyor under the provisions of the act of

29

May 23, 1945 (P.L.913, No.367), known as the Engineer, Land

30

Surveyor and Geologist Registration Law, showing the outside

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1

coal boundaries of the operating coal mine, the existing

2

workings and exhausted areas and the relationship of the

3

boundaries to identifiable surface properties and landmarks. A

4

person owning or operating an operating coal mine which has been

5

penetrated by a well shall furnish a mine map to the department

6

each year indicating the excavations for the preceding year and

7

the projections for the ensuing year. The map required by this

8

subsection shall be furnished to a person storing or

9

contemplating the storage of gas in the vicinity of operating

10

coal mines shall, upon written request, by the coal operator,

11

and the person and the department shall thereafter be informed

12

of any boundary changes at the time the changes occur. The

13

department shall keep a record of the information and promptly

14

notify the coal operator and storage operator when notified by

15

them that the coal mine and the storage reservoir are within

16

10,000 linear feet of each other.

17

(b)  Mines near certain reservoirs.--A person owning or

18

operating any coal mine which is or which comes within 10,000

19

linear feet of a storage reservoir and where the coal seam being

20

operated extends over the storage reservoir or reservoir

21

protective area shall, within 45 days after receiving notice

22

from the storage operator of that fact, file with the department

23

and furnish to the person operating the storage reservoir a map

24

in the form required by subsection (a) showing, in addition to

25

the requirements of subsection (a), existing and projected

26

excavations and workings of the operating coal mine for the

27

ensuing 18-month period and the location of oil or gas wells of

28

which the coal operator has knowledge. The person owning or

29

operating the coal mine shall, each six months thereafter, file

30

with the department and furnish to the person operating the

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1

storage reservoir a revised map showing any additional

2

excavations and workings, together with the projected

3

excavations and workings for the then ensuing 18-month period,

4

which may be within 10,000 linear feet of the storage reservoir.

5

The department may require a coal operator to file revised maps

6

at more frequent intervals if material changes have occurred

7

justifying earlier filing. The person owning or operating the

8

coal mine shall also file with the department and furnish the

9

person operating the reservoir prompt notice of any wells which

10

have been cut into, together with all available pertinent

11

information.

12

(c)  Mines near gas storage reservoirs.--A person owning or

13

operating a coal mine who has knowledge that it overlies or is

14

within 2,000 linear feet of a gas storage reservoir shall,

15

within 30 days, notify the department and the storage operator

16

of that fact.

17

(d)  Mines projected to be near storage reservoirs.--When a

18

person owning or operating a coal mine expects that, within the

19

ensuing nine-month period, the coal mine will be extended to a

20

point which will be within 2,000 linear feet of any storage

21

reservoir, the person shall notify the department and storage

22

operator in writing of that fact.

23

(e)  New mines.--A person intending to establish or

24

reestablish an operating coal mine which will be over a storage

25

reservoir or within 2,000 linear feet of a storage reservoir or

26

may within nine months thereafter be expected to be within 2,000

27

linear feet of a storage reservoir shall immediately notify the

28

department and storage operator in writing. Notice shall include

29

the date on which the person intends to establish or reestablish

30

the operating coal mine.

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1

(f)  Misdemeanor.--A person who serves notice as required by

2

this subsection of an intention to establish or reestablish an

3

operating coal mine, without intending in good faith to

4

establish or reestablish the mine, is liable for continuing

5

damages to a storage operator injured by the improper notice and

6

commits a misdemeanor subject to the penalties of section 3255

7

(relating to penalties).

8

§ 3233.  General gas storage reservoir operations.

9

(a)  General rule.--A person who operates or proposes to

10

operate a storage reservoir, except one filled by the secondary

11

recovery or gas recycling process, shall:

12

(1)  Use every known method which is reasonable under the

13

circumstances for discovering and locating all wells which

14

have or may have been drilled into or through the storage

15

reservoir.

16

(2)  Plug or recondition, as provided in departmental

17

regulations, all known wells drilled into or through the

18

storage reservoir, except to the extent otherwise provided in

19

subsections (b) and (c).

20

(b)  Wells to be plugged.--To comply with subsection (a),

21

wells which are to be plugged shall be plugged in the manner

22

specified in section 3220 (relating to plugging requirements).

23

(b.1)  Wells plugged prior to enactment of section.--If a

24

well located in the storage reservoir area has been plugged

25

prior to April 18, 1985, and on the basis of data, information

26

and other evidence submitted to the department, it is determined

27

that the plugging was done in the manner required by section

28

3220 or approved as an alternative method under section 3221

29

(relating to alternative methods) and the plugging is still

30

sufficiently effective to meet the requirements of this chapter,

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1

the obligations under subsection (a) with regard to plugging the

2

well shall be considered to have been fully satisfied.

3

(c)  Wells to be reconditioned.--The following shall apply:

4

(1)  To comply with subsection (a), wells which are to be

5

reconditioned shall, unless the department by regulation

6

specifies a different procedure, be cleaned out from the

7

surface through the storage horizon, and the producing casing

8

and casing strings determined not to be in good physical

9

condition shall be replaced with new casing, using the same

10

procedure as is applicable to drilling a new well under this

11

chapter. In the case of wells to be used for gas storage, the

12

annular space between each string of casing and the annular

13

space behind the largest diameter casing to the extent

14

possible shall be filled to the surface with cement or

15

bentonitic mud or a nonporous material approved by the

16

department under section 3221. At least 15 days prior to

17

reconditioning, the storage operator shall give notice to the

18

department, setting forth in the notice the manner in which

19

it is planned to recondition the well and any pertinent data

20

known to the storage operator which will indicate the

21

condition of the well existing at that time. In addition, the

22

storage operator shall give the department at least 72 hours'

23

notice of the time when reconditioning is to begin. If no

24

objections are raised by the department within ten days, the

25

storage operator may proceed with reconditioning in

26

accordance with the plan as submitted. If objections are made

27

by the department, the department may fix a time and place

28

for a conference under section 3251 (relating to conferences)

29

at which the storage operator and department shall endeavor

30

to agree on a plan to satisfy the objections and meet the

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1

requirements of this section. If no agreement is reached, the

2

department may, by an appropriate order, determine whether

3

the plan as submitted meets the requirements of this section

4

or what changes, if any, are required. If, in reconditioning

5

a well in accordance with the plan, physical conditions are

6

encountered which justify or necessitate a change in the

7

plan, the storage operator may request that the plan be

8

changed. If the request is denied, the department shall fix a

9

conference under section 3251 and proceed in the same manner

10

as with original objections. An application may be made in

11

the manner prescribed by section 3221 for approval of an

12

alternative method of reconditioning a well. If a well

13

located within the storage reservoir was reconditioned, or

14

drilled and equipped, prior to April 18, 1985, the

15

obligations imposed by subsection (a), as to reconditioning

16

the well, shall be considered fully satisfied if, on the

17

basis of the data, information and other evidence submitted

18

to the department, it is determined that:

19

(i)  The conditioning or previous drilling and

20

equipping was done in the manner required in this

21

subsection, in regulations promulgated under this chapter

22

or in a manner approved as an alternative method in

23

accordance with section 3221.

24

(ii)  The reconditioning or previous drilling and

25

equipping is still sufficiently effective to meet the

26

requirements of this chapter.

27

(2)  If a well requires emergency repairs, this chapter

28

shall not be construed to require the storage operator to

29

give any notice required by this subsection before making the

30

repairs.

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1

(d)  Exception.--The requirements of subsection (a) shall not

2

apply to injection of gas into a stratum when the sole purpose

3

of injection, referred to in this subsection as testing, is to

4

determine whether the stratum is suitable for storage purposes.

5

Testing shall be conducted only in compliance with the following

6

requirements:

7

(1)  The person testing or proposing to test shall comply

8

with section 3231 (relating to reporting requirements for gas

9

storage operations) and verify the statement required to be

10

filed by that section.

11

(2)  The storage operator shall give at least six months'

12

written notice to the department of the fact that injection

13

of gas for testing purposes is proposed.

14

(3)  If the department has objections, the department

15

shall fix a time and place for a conference under section

16

3251, not more than ten days from the date of notice to the

17

storage operator, at which time the storage operator and

18

department shall attempt to resolve the issues presented. If

19

an agreement cannot be reached, the department may issue an

20

appropriate order.

21

(e)  Failure to execute lawful order.--In a proceeding under

22

this chapter, if the department determines that an operator of a

23

storage reservoir has failed to carry out a lawful order issued

24

under this chapter, the department may require the operator to

25

suspend operation of the reservoir and withdraw the gas until

26

the violation is remedied, in which case the storage operator,

27

limited by due diligence insofar as existing facilities utilized

28

to remove gas from the reservoir will permit, shall:

29

(1)  if possible, remove the amount required by the

30

department to be removed; or

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1

(2)  in any event, remove the maximum amount which can be

2

withdrawn in accordance with recognized engineering and

3

operating procedures.

4

(f)  Duty of storage reservoir operator.--The following shall

5

apply:

6

(1)  A person owning or operating a storage reservoir

7

subject to this chapter shall have a duty to:

8

(i)  Maintain all wells drilled into or through the

9

reservoir in a condition, and operate them in a manner,

10

sufficient to prevent the escape of gas.

11

(ii)  Operate and maintain the reservoir and its

12

facilities as prescribed by departmental regulations and

13

at a pressure which will prevent gas from escaping, but

14

the pressure shall not exceed the highest rock pressure

15

found to have existed during the production history of

16

the reservoir or another high pressure limit approved by

17

the department after holding a conference under section

18

3251 based on geological and production knowledge of the

19

reservoir, its character, permeability distribution and

20

operating experience.

21

(2)  The duty under paragraph (1) shall not be construed

22

to include inability to prevent the escape of gas when gas

23

escapes as a result of an act of God or a person not under

24

the control of the storage operator. In that instance, the

25

storage operator shall have a duty to take action reasonably

26

necessary to prevent further escape of gas. This paragraph

27

does not apply to a well which the storage operator failed to

28

locate and make known to the department.

29

§ 3234.  Gas storage reservoir operations in coal areas.

30

(a)  General rule.--A person operating a storage reservoir

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1

which underlies or is within 2,000 linear feet of a coal mine

2

operating in a coal seam that extends over the storage reservoir

3

or the reservoir protective area shall:

4

(1)  Use every known reasonable method for discovering

5

and locating all wells which have or may have been drilled

6

into or through the storage stratum in the acreage lying

7

within the outside coal boundaries of the operating coal mine

8

overlying the storage reservoir or the reservoir protective

9

area.

10

(2)  Plug or recondition, as provided by section 3220

11

(relating to plugging requirements) and subsection (e), all

12

known wells, except to the extent provided in subsections

13

(e), (f), (g) and (h), drilled into or through the storage

14

stratum and located within the portion of the acreage of the

15

operating coal mine overlying the storage reservoir or the

16

reservoir protective area. If an objection is raised as to

17

use of a well as a storage well and after a conference under

18

section 3251 (relating to conferences) it is determined by

19

the department, taking into account all circumstances and

20

conditions, that the well should not be used as a storage

21

well, the well shall be plugged unless, in the opinion of the

22

storage operator, the well may be used as a storage well in

23

the future, in which case, upon approval of the department

24

after taking into account all circumstances and conditions,

25

the storage operator may recondition and inactivate the well

26

rather than plug it.

27

(3)  The requirements of paragraph (2) shall be deemed to

28

have been fully complied with if, as the operating coal mine

29

is extended, all wells which from time to time come within

30

the acreage described in paragraph (2) are reconditioned or

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1

plugged as provided in section 3220 and subsection (e) or (f)

2

so that, by the time the coal mine has reached a point within

3

2,000 linear feet of the wells, they will have been

4

reconditioned or plugged in accordance with section 3220 and

5

subsection (e) or (f).

6

(b)  Verified statement.--A person operating a storage

7

reservoir referred to in subsection (a) shall file with the

8

department and furnish a copy to the person operating the

9

affected operating coal mine a verified statement setting forth:

10

(1)  That the map and any supplemental maps required by

11

section 3231(a) (relating to reporting requirements for gas

12

storage operations) have been prepared and filed in

13

accordance with section 3231.

14

(2)  A detailed explanation of what the storage operator

15

has done to comply with the requirements of subsection (a)(1)

16

and (2) and the results of those actions.

17

(3)  Such additional efforts, if any, as the storage

18

operator is making and intends to make to locate all wells.

19

(4)  Any additional wells that are to be plugged or

20

reconditioned to meet the requirements of subsection (a)(2).

21

(b.1)  Order of department.--If the statement required under

22

subsection (b) is not filed by the storage reservoir operator

23

within the time specified by this chapter or the regulations of

24

the department, the department may order the operator to file

25

the statement.

26

(c)  Procedure.--Within 120 days after receipt of a statement

27

required by this section, the department may direct that a

28

conference be held in accordance with section 3251 to determine

29

whether the requirements of section 3231 and subsection (a) have

30

been fully met. At the conference, if any person believes the

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1

requirements have not been fully met, the parties shall attempt

2

to agree on additional actions to be taken and the time for

3

completion, subject to approval of the department. If an

4

agreement cannot be reached, the department shall make a

5

determination and, if the department determines any requirements

6

have not been met, the department shall issue an order

7

specifying in detail the extent to which the requirements have

8

not been met and the actions which the storage operator must

9

complete to meet the requirements. The order shall grant as much

10

time as is reasonably necessary to fully comply. If the storage

11

operator encounters conditions not known to exist at the time of

12

issuance of the order and which materially affect the validity

13

of the order or the ability of the storage operator to comply

14

with it, the storage operator may apply for a rehearing or

15

modification of the order.

16

(d)  Notification.--If, in complying with subsection (a), a

17

storage operator, after filing the statement provided for in

18

subsection (b), plugs or reconditions a well, the storage

19

operator shall notify the department and the coal operator

20

affected, in writing, setting forth facts indicating the manner

21

in which the plugging or reconditioning was done. Upon receipt

22

of the notification, the coal operator or department may request

23

a conference under section 3251.

24

(e)  Plugging wells.--In order to meet the requirements of

25

subsection (a), wells which are to be plugged shall be plugged

26

in the manner specified in regulations promulgated under section

27

3211 (relating to well permits). When a well located within the

28

storage reservoir or the reservoir protective area has been

29

plugged prior to April 18, 1985, and, on the basis of the data

30

information and other evidence submitted to the department, it

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1

is determined that the plugging was done in the manner required

2

by section 3220, or in a manner approved as an alternative

3

method in accordance with section 3221 (relating to alternative

4

methods), and the plugging is still sufficiently effective to

5

meet the requirements of this chapter, the requirements of

6

subsection (a) as to plugging the well shall be considered to

7

have been fully satisfied.

8

(f)  Reconditioned wells.--The following shall apply:

9

(1)  In order to comply with subsection (a), unless the

10

department by regulation specifies a different procedure,

11

wells which are to be reconditioned shall be cleaned out from

12

the surface through the storage horizon, and the following

13

casing strings shall be pulled and replaced with new casing,

14

using the procedure applicable to drilling a new well under

15

this chapter: 

16

(i)  the producing casing;

17

(ii)  the largest diameter casing passing through the

18

lowest workable coal seam unless it extends at least 25

19

feet below the bottom of the coal seam and is determined

20

to be in good physical condition, but the storage

21

operator may, instead of replacing the largest diameter

22

casing, replace the next largest casing string if the

23

casing string extends at least 25 feet below the lowest

24

workable coal seam; and

25

(iii)  casing strings determined not to be in good

26

physical condition

27

(2)  In the case of a well to be used for gas storage,

28

the annular space between each string of casing and the

29

annular space behind the largest diameter casing, to the

30

extent possible, shall be filled to the surface with cement

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1

or bentonitic mud or an equally nonporous material approved

2

by the department under section 3221.

3

(3)  At least 15 days before a well is to be

4

reconditioned, the storage operator shall give notice to the

5

department and the coal operator, lessee or owner, setting

6

forth the manner in which reconditioning is planned and

7

pertinent data known to the storage operator which will

8

indicate the current condition of the well, along with at

9

least 72 hours' notice of the date and time when

10

reconditioning will begin. The coal operator, lessee or owner

11

shall have the right to file, within ten days after receipt

12

of the notice, objections to the plan of reconditioning as

13

submitted by the storage operator. If no objections are filed

14

and none are raised by the department within ten days, the

15

storage operator may proceed with reconditioning in

16

accordance with the plan as submitted. If an objection is

17

filed or made by the department, the department shall fix a

18

time and place for a conference under section 3251, at which

19

conference the storage operator and the person having

20

objections shall attempt to agree on a plan of reconditioning

21

that meets the requirements of this section. If no agreement

22

is reached, the department shall, by an appropriate order,

23

determine whether the plan as submitted meets the

24

requirements of this section or what changes should be made

25

to meet the requirements. If, in reconditioning the well in

26

accordance with the plan, physical conditions are encountered

27

which justify or necessitate a change in the plan, the

28

storage operator or coal operator may request that the plan

29

be changed. If the parties cannot agree on a change, the

30

department shall arrange for a conference to determine the

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1

matter in the same manner as set forth in connection with

2

original objections to the plan.

3

(4)  Application may be made to the department in the

4

manner prescribed in section 3221 for approval of an

5

alternative method of reconditioning a well. When a well

6

located within the storage reservoir or the reservoir

7

protective area has been reconditioned or drilled and

8

equipped prior to April 18, 1985, and, on the basis of the

9

data, information and other evidence submitted to the

10

department, the obligations imposed by subsection (a) as to

11

reconditioning the well shall be considered to be fully

12

satisfied if it is determined that reconditioning or previous

13

drilling and equipping:

14

(i)  was done in the manner required in this

15

subsection, or in regulations promulgated hereunder, or

16

in a manner approved as an alternative method in

17

accordance with section 3221; or

18

(ii)  is still sufficiently effective to meet the

19

requirements of this chapter.

20

(5)  If a well requires emergency repairs, this

21

subsection shall not be construed to require the storage

22

operator to give the notices specified herein before making

23

the repairs.

24

(g)  Producing wells.--If a well located within the reservoir

25

protective area is a producing well in a stratum below the

26

storage stratum, the obligations imposed by subsection (a) shall

27

not begin until the well ceases to be a producing well.

28

(h)  Certain other wells.--If a well within a storage

29

reservoir or reservoir protective area penetrates the storage

30

stratum but does not penetrate the coal seam being mined by an

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1

operating coal mine, the department may, upon application of the

2

operator of the storage reservoir, exempt the well from the

3

requirements of this section. Either party affected may request

4

a conference under section 3251 with respect to exemption of a

5

well covered by this subsection.

6

(i)  Plugging limitation.--In fulfilling the requirements of

7

subsection (a)(2) with respect to a well within the reservoir

8

protective area, the storage operator shall not be required to

9

plug or recondition the well until the storage operator has

10

received from the coal operator written notice that the mine

11

workings will, within the period stated in the notice, be within

12

2,000 linear feet of the well. Upon the receipt of the notice,

13

the storage operator shall use due diligence to complete the

14

plugging or reconditioning of the well in accordance with the

15

requirements of this section and section 3220. If the mine

16

workings do not, within a period of three years after the well

17

has been plugged, come within 2,000 linear feet of the well, the

18

coal operator shall reimburse the storage operator for the cost

19

of plugging, provided that the well is still within the

20

reservoir protective area as of that time.

21

(j)  Retreat mining.--If retreat mining approaches a point

22

where, within 90 days, it is expected that the retreat work will

23

be at the location of the pillar surrounding an active storage

24

well, the coal operator shall give written notice to the storage

25

operator, and by agreement the parties shall determine whether

26

it is necessary or advisable to effectively and temporarily

27

inactivate the well. The well shall not be reactivated until a

28

reasonable period, determined by the parties, has elapsed. If

29

the parties cannot agree as required by this subsection, the

30

matter shall be submitted to the department for resolution. The

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1

number of wells required to be temporarily inactivated during

2

the retreat period shall not be of a number that materially

3

affects efficient operation of the storage pool, except that

4

this provision shall not preclude temporary inactivation of a

5

particular well if the practical effect of inactivating it is to

6

render the pool temporarily inoperative.

7

(k)  Exceptions.--The requirements of subsections (a), (l)

8

and (m) shall not apply to injection of gas into a stratum when

9

the whole purpose of injection, referred to in this subsection

10

as testing, is to determine whether the stratum is suitable for

11

storage purposes. Testing shall be conducted only in compliance

12

with the following requirements:

13

(1)  The person testing or proposing to test shall comply

14

with all provisions and requirements of section 3231 and

15

verify the statement required to be filed by that section.

16

(2)  If any part of the proposed storage reservoir is

17

under or within 2,000 linear feet of an operating coal mine

18

which is operating in a coal seam that extends over the

19

proposed storage reservoir or the reservoir protective area,

20

the storage operator shall give at least six months' written

21

notice to the department and coal operator of the fact that

22

injection of gas for testing purposes is proposed.

23

(3)  The coal operator affected may at any time file

24

objections with the department, whereupon the department

25

shall fix a time and place for a conference under section

26

3251, not more than ten days from the date of the notice to

27

the storage operator. At the conference, the storage operator

28

and the objecting party shall attempt to agree, subject to

29

approval of the department, on the questions involved. If an

30

agreement cannot be reached, the department may issue an

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1

appropriate order.

2

(4)  If at any time a proposed storage reservoir being

3

tested comes under or within 2,000 linear feet of an

4

operating coal mine because of extension of the storage

5

reservoir being tested or because of extension or

6

establishment or reestablishment of the operating coal mine,

7

the requirements of this subsection shall immediately become

8

applicable to the testing.

9

(l)  Storage reservoirs near operating coal mines.--A person

10

who proposes to establish a storage reservoir under or within

11

2,000 linear feet of a coal mine operating in a coal seam that

12

extends over the storage reservoir or the reservoir protective

13

area shall, prior to establishing the reservoir, and in addition

14

to complying with section 3231 and subsection (a), file the

15

verified statement required by subsection (b) and fully comply

16

with any order of the department in the manner provided under

17

subsection (b) or (c) before commencing operation of the storage

18

reservoir. After the person proposing to operate the storage

19

reservoir complies with the requirements of this subsection and

20

commences operations, the person shall continue to be subject to

21

all provisions of this chapter.

22

(m)  Gas storage reservoirs.--If a gas storage reservoir is

23

in operation on April 18, 1985, and at any time thereafter it is

24

under or within 2,000 linear feet of an operating coal mine, or

25

if a gas storage reservoir is put in operation after April 18,

26

1985, and at any time after storage operations begin it is under

27

or within 2,000 linear feet of an operating coal mine, the

28

storage operator shall comply with all of the provisions of this

29

section, except that:

30

(1)  the time for filing the verified statement under

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1

subsection (b) shall be 60 days after the date stated in the

2

notice filed by the coal operator under section 3232(d) and

3

(e) (relating to reporting requirements for coal mining

4

operations);

5

(2)  the coal operator shall give notice of the delay to

6

the department;

7

(3)  the department shall, upon the request of the

8

storage operator, extend the time for filing the statement by

9

the additional time which will be required to extend or

10

establish or reestablish the operating coal mine to a point

11

within 2,000 linear feet of the reservoir;

12

(4)  the verified statement shall also indicate that the

13

map referred to in section 3231(a) has been currently amended

14

as of the time of the filing of the statement; and

15

(5)  the person operating the storage reservoir shall

16

continue to be subject to all of the provisions of this

17

chapter.

18

(n)  Failure to comply with order.--If, in any proceeding

19

under this chapter, the department determines that an operator

20

of a storage reservoir has failed to comply with a lawful order

21

issued under this chapter, the department may require the

22

storage operator to suspend operation of the reservoir and

23

withdraw the gas from it until the violation is remedied, in

24

which case the storage operator, limited by due diligence

25

insofar as existing facilities utilized to remove gas from the

26

reservoir will permit, shall:

27

(1)  if possible, remove the amount required by the

28

department to be removed; or

29

(2)  in any event, remove the maximum amount which can be

30

withdrawn in accordance with recognized engineering and

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1

operating procedures.

2

(o)  Prevention of escape of gas.--In addition to initial

3

compliance with other provisions of this chapter and lawful

4

orders issued under this chapter, it shall be the duty, at all

5

times, of a person owning or operating a storage reservoir

6

subject to this chapter to keep all wells drilled into or

7

through the storage stratum in a condition, and operate the

8

wells in a manner, which is designed to prevent the escape of

9

gas out of the storage reservoir and its facilities, and to

10

operate and maintain the storage reservoir and its facilities in

11

the manner prescribed by regulation of the department and at a

12

pressure that will prevent gas from escaping from the reservoir

13

or its facilities. This duty shall not be construed to include

14

inability to prevent the escape of gas when escape results from

15

an act of God or a person not under the control of the storage

16

operator, except that this exception does not apply to a well

17

which the storage operator has failed to locate and make known

18

to the department. If an escape of gas results from an act of

19

God or a person not under the control of the storage operator,

20

the storage operator shall be under the duty to take any action

21

reasonably necessary to prevent further escape of gas out of the

22

storage reservoir and its facilities.

23

§ 3235.  Inspection of facilities and records.

24

(a)  General rule.--The person operating a storage reservoir

25

affected by this chapter shall, at all reasonable times, be

26

permitted to inspect applicable records and facilities of a coal

27

mine overlying the storage reservoir or reservoir protective

28

area. The person operating a coal mine affected by this chapter

29

shall, at all reasonable times, be permitted to inspect

30

applicable records and facilities of a storage reservoir

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1

underlying the coal mine.

2

(b)  Order.--If a storage operator or coal operator subject

3

to subsection (a) refuses to permit inspection of records or

4

facilities, the department may, on its own motion or on

5

application of the party seeking inspection, after reasonable

6

written notice and a hearing if requested by an affected party,

7

order inspection.

8

§ 3236.  Reliance on maps and burden of proof.

9

(a)  General rule.--In determining whether a coal mine or

10

operating coal mine is or will be within a particular distance

11

from a storage reservoir which is material under this chapter,

12

the owner or operator of the coal mine and the storage operator

13

may rely on the most recent map of the storage reservoir or coal

14

mine filed by the other party with the department.

15

(b)  Accuracy.--Where accuracy of a map or data filed under

16

this chapter is in issue, the person that filed the map or data

17

shall:

18

(1)  at the request of an objecting party, disclose the

19

information and method used to compile the map or data, along

20

with any information available to the person that might

21

affect current validity of the map or data; and

22

(2)  have the burden of proving accuracy of the map or

23

data.

24

§ 3237.  Exemptions and prohibitions.

25

(a)  Inapplicability of chapter to certain coal mines.--This

26

chapter shall not apply to the following types of coal mines:

27

(1)  Strip mines and auger mines operating from the

28

surface.

29

(2)  Mines to which the former act of June 9, 1911

30

(P.L.756, No.319), entitled "An act to provide for the health

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1

and safety of persons employed in and about the bituminous

2

coal-mines of Pennsylvania, and for the protection and

3

preservation of property connected therewith," did not apply

4

in accordance with section 3 of Article XXVIII of that act.

5

(3)  Mines to which the former act of June 2, 1891

6

(P.L.176, No.177), entitled "An act to provide for the health

7

and safety of persons employed in and about the anthracite

8

coal mines of Pennsylvania and for the protection and

9

preservation of property connected therewith," did not apply

10

in accordance with section 1 of Article I of that act.

11

(b)  Workable coal seams.--Injection of gas for storage

12

purposes in a workable coal seam, whether or not it is being or

13

has been mined, is prohibited.

14

(b.1)  Original extraction.--Nothing in this chapter

15

prohibits original extraction of natural gas, crude oil or coal.

16

(c)  Certain rock formations.--Nothing in this chapter

17

applies to storage of gas or liquids in storage reservoirs

18

excavated in rock formations specifically for storage purposes.

19

SUBCHAPTER D

20

EMINENT DOMAIN

21

Sec.

22

3241.  Appropriation of interest in real property.

23

§ 3241.  Appropriation of interest in real property.

24

(a)  General rule.--Except as provided in this subsection, a

25

corporation empowered to transport, sell or store natural gas or

26

manufactured gas in this Commonwealth may appropriate an

27

interest in real property located in a storage reservoir or

28

reservoir protective area for injection, storage and removal

29

from storage of natural gas or manufactured gas in a stratum

30

which is or previously has been commercially productive of

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1

natural gas. The right granted by this subsection shall not be

2

exercised to acquire any of the following for the purpose of gas

3

storage:

4

(1)  An interest in a geological stratum within the area

5

of a proposed storage reservoir or reservoir protective area:

6

(i)  unless the original recoverable oil or gas

7

reserves in the proposed storage reservoir have been

8

depleted or exhausted by at least 80%; and

9

(ii)  until the condemnor has acquired the right, by

10

grant, lease or other agreement, to store gas in the

11

geological stratum underlying at least 75% of the area of

12

the proposed storage reservoir.

13

(2)  An interest in a geological stratum within the area

14

of a proposed storage reservoir or reservoir protective area

15

owned directly or indirectly by a gas company or other person

16

engaged in local distribution of natural gas, if the interest

17

to be acquired is presently being used by the gas company or

18

other person for storage of gas in performance of service to

19

customers in its service area.

20

(b)  Construction.--The following shall apply:

21

(1)  This chapter authorizes appropriation within a

22

storage reservoir or reservoir protective area of the

23

following:

24

(i)  a stratum to be used for storage;

25

(ii)  any gas reserve remaining a stratum to be used

26

for storage;

27

(iii)  an active or abandoned well or wells drilled

28

into a stratum to be used for storage; and

29

(iv)  the right to enter upon and use the surface of

30

lands to:

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1

(A)  locate, recondition, maintain, plug or

2

replug an active or abandoned well; or

3

(B)  operate a well drilled into or through a

4

stratum to be used for storage.

5

(2)  This chapter does not preclude the owner of

6

nonstorage strata from drilling wells to produce oil or gas

7

from a stratum above or below the storage stratum

8

appropriated by another person, but a person appropriating or

9

holding storage rights may access, inspect and examine the

10

drilling, the completed well, drilling logs and other records

11

relating to drilling, equipping or operating the well in

12

order to determine whether the storage stratum is being

13

adequately protected to prevent escape of gas stored therein.

14

(3)  This chapter does not authorize appropriation of a

15

coal or coal measure, regardless of whether it is being

16

mined, or an interest in the coal mine or coal measure.

17

(c)  Activities through appropriated strata.--A person

18

drilling, operating, using or plugging a well through a stratum

19

appropriated under this chapter shall drill, case, equip,

20

operate or plug it in a manner designed to prevent avoidable

21

escape of gas that may be stored in the storage stratum. Upon

22

violation of this subsection, the court of common pleas of the

23

county where the land in question is situated may compel

24

compliance by injunction or grant other appropriate relief in an

25

action brought by the person storing gas in the storage stratum.

26

(d)  Prerequisites to appropriation.--Before appropriating

27

under this chapter, a person shall attempt to agree with owners

28

of interests in the real property involved as to damages payable

29

for rights and interests to be appropriated, if the owners can

30

be found and are sui juris. If the parties fail to agree, the

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1

person shall tender a surety bond to the owners to secure them

2

in the payment of damages. If the owners refuse to accept the

3

bond, cannot be found or are not sui juris, and after reasonable

4

notice to the owners by advertisement or otherwise, the bond

5

shall be presented for approval to the court of common pleas of

6

the county in which the tract of land is situated. Upon the

7

approval of the bond by the court, the right of the person to

8

appropriate in accordance with the provisions of this chapter

9

shall be complete.

10

(e)  Appointment of viewers.--Upon petition of a property

11

owner or a person appropriating under this chapter, the court

12

shall:

13

(1)  appoint three disinterested freeholders of the

14

county to serve as viewers to assess damages to be paid to

15

the property owner for the rights appropriated;

16

(2)  fix a time for the parties to meet;

17

(3)  provide notice to the parties; and

18

(4)  after the viewers have filed their report, fix

19

reasonable compensation for the service of the viewers.

20

(f)  Appeal.--Within 20 days after the filing of a report by

21

viewers appointed under subsection (e), a party may appeal and

22

proceed to a jury trial as in ordinary cases.

23

(g)  Requirements.--Nothing in this section shall relieve a

24

person operating a storage reservoir from the requirements of

25

this chapter.

26

SUBCHAPTER E

27

ENFORCEMENT AND REMEDIES

28

Sec.

29

3251.  Conferences.

30

3252.  Public nuisances.

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1

3253.  Enforcement orders.

2

3254.  Restraining violations.

3

3255.  Penalties.

4

3256.  Civil penalties.

5

3257.  Existing rights and remedies preserved and cumulative

6

remedies authorized.

7

3258.  Production of materials, witnesses, depositions and

8

rights of entry.

9

3259.  Unlawful conduct.

10

3260.  Collection of fines and penalties.

11

3261.  Third-party liability.

12

§ 3251.  Conferences.

13

(a)  General rule.--The department or any person having a

14

direct interest in a matter subject to this chapter may, at any

15

time, request that a conference be held to discuss and attempt

16

to resolve by mutual agreement a matter arising under this

17

chapter. Unless otherwise provided, conferences shall be held

18

within 90 days after a request is received by the department,

19

and notice shall be given by the department to all interested

20

parties. A representative of the department shall attend the

21

conference and the department may make recommendations. An

22

agreement reached at a conference shall be consistent with this

23

chapter and, if approved by the department, it shall be reduced

24

to writing and shall be effective, unless reviewed and rejected

25

by the department within ten days after the conference. The

26

record of an agreement approved by the department shall be kept

27

on file by the department and copies shall be furnished to the

28

parties. The scheduling of a conference shall have no effect on

29

the department's authority to issue orders to compel compliance

30

with this chapter.

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1

(b)  Notification.--When a coal operator is to be notified of

2

a proceeding under this section, the department simultaneously

3

shall send a copy of the notice to the collective bargaining

4

representative of employees of the coal operator.

5

§ 3252.  Public nuisances.

6

A violation of section 3216 (relating to well site

7

restoration), 3217 (relating to protection of fresh groundwater

8

and casing requirements), 3218 (relating to protection of water

9

supplies), 3219 (relating to use of safety devices) or 3220

10

(relating to plugging requirements), or a rule, regulation,

11

order, term or condition of a permit relating to any of those

12

sections constitutes a public nuisance.

13

§ 3253.  Enforcement orders.

14

(a)  General rule.--Except as modified by subsections (b),

15

(c) and (d), the department may issue orders necessary to aid in

16

enforcement of this chapter. An order issued under this chapter

17

shall take effect upon notice, unless the order specifies

18

otherwise. The power of the department to issue an order under

19

this chapter is in addition to any other remedy available to the

20

department under this chapter or under any other law.

21

(b)  Suspension and revocation.--The department may suspend

22

or revoke a well permit or well registration for any well in

23

continuing violation of this chapter, the act of June 22, 1937

24

(P.L.1987, No.394), known as The Clean Streams Law, the act of

25

July 7, 1980 (P.L.380, No.97), known as the Solid Waste

26

Management Act, any other statute administered by the department

27

or a rule or regulation. The right of the department to revoke a

28

permit or registration under this subsection shall not be

29

effective until a final administrative determination has been

30

made of the violation and no appeal is pending in which a stay

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1

has been granted. A suspension order of the department shall

2

automatically terminate if the violation upon which it is based

3

is corrected by the operator to bring the well into compliance

4

with this chapter.

5

(c)  Written notice.--Prior to suspension or revocation of a

6

well permit or registration, the department shall serve written

7

notice on the well operator or its agent, stating specifically

8

the statutory provision, rule, regulation or other reason relied

9

upon, along with factual circumstances surrounding the alleged

10

violation. The well operator shall have 15 days to request a

11

conference with the department to show cause why action should

12

not be taken. Upon receipt of a request, the department shall

13

hold a conference and render a decision within 15 days after the

14

conference. The department shall provide written notice of the

15

decision to the well operator or its agent, which shall become

16

effective upon receipt. If the decision is to suspend or revoke

17

the permit or registration, the department may order the

18

operator to cap the well if the likely result of the violation

19

is an unsafe operation or environmental damage.

20

(d)  Immediate orders.--An order of the department requiring

21

immediate cessation of drilling operations shall be effective

22

only if authorized by the secretary or by the Executive Deputy

23

Secretary for Environmental Protection.

24

(e)  Grievances.--A person aggrieved by a department order

25

issued under this section shall have the right, within 30 days

26

of receipt of the notice, to appeal to the Environmental Hearing

27

Board.

28

(f)  Inspection reports.--The department shall post

29

inspection reports on its publicly accessible Internet website.

30

The inspection reports shall include:

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1

(1)  The nature and description of violations.

2

(2)  The operator's written response to the violation, if

3

available.

4

(3)  The status of the violation.

5

(4)  The remedial steps taken by the operator or the

6

department to address the violation.

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

§ 3255.  Penalties.

8

(a)  General violation.--A person violating a provision of

9

this chapter commits a summary offense and, upon conviction,

10

shall be sentenced to pay a fine of not more than $1,000 or to

11

imprisonment of not more than 90 days, or both. Each day during

12

which the violation continues is a separate and distinct

13

offense.

14

(b)  Willful violation.--A person willfully violating a

15

provision of this chapter or an order of the department issued

16

under this chapter commits a misdemeanor and, upon conviction,

17

shall be sentenced to pay a fine of not more than $5,000 or to

18

imprisonment of not more than one year, or both. Each day during

19

which the violation continues is a separate and distinct

20

offense.

21

(c)  Authority.--The department may institute a prosecution

22

against any person or municipality for a violation of this

23

chapter.

24

§ 3256.  Civil penalties.

25

In addition to other remedies available at law or in equity

26

for a violation of this chapter, a rule or regulation of the

27

department or a departmental order or a permit condition, the

28

department, after a hearing, may assess a civil penalty

29

regardless of whether the violation was willful. The penalty

30

shall not exceed $25,000 plus $1,000 for each day during which

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1

the violation continues, or in the case of a violation arising

2

from the construction, alteration or operation of an

3

unconventional well, $75,000 plus $5,000 for each day during

4

which the violation continues. In determining the amount, the

5

department shall consider willfulness of the violation, damage

6

or injury to natural resources of this Commonwealth or their

7

uses, endangerment of safety of others, the cost of remedying

8

the harm, savings resulting to the violator as a result of the

9

violation and any other relevant factor. The penalty shall be

10

payable to the Commonwealth and collectible in any manner

11

provided at law for collection of debts. If a violator neglects

12

or refuses to pay the penalty after demand, the amount, together

13

with interest and costs that may accrue, shall become a lien in

14

favor of the Commonwealth on the real and personal property of

15

the violator, but only after the lien has been entered and

16

docketed of record by the prothonotary of the county where the

17

property is situated. The department may at any time transmit to

18

the prothonotaries of the various counties certified copies of

19

all liens. It shall be the duty of each prothonotary to enter

20

and docket the liens of record in the prothonotary's office and

21

index them as judgments are indexed, without requiring payment

22

of costs as a condition precedent to entry.

23

§ 3257.  Existing rights and remedies preserved and cumulative

24

remedies authorized.

25

Nothing in this chapter estops the Commonwealth or a district

26

attorney from proceeding in a court of law or in equity to abate

27

pollution forbidden under this chapter or a nuisance under

28

existing law. It is hereby declared to be the purpose of this

29

chapter to provide additional and cumulative remedies to control

30

activities related to drilling for, or production of, oil and

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1

gas in this Commonwealth, and nothing contained in this chapter

2

abridges or alters rights of action or remedies existing, or

3

which existed previously, in equity or under common or statutory

4

law, criminal or civil. Neither this chapter, the grant of a

5

permit under this chapter nor an act done by virtue of this

6

chapter estops the Commonwealth, in exercising rights under

7

common or decisional law or in equity, from suppressing a

8

nuisance, abating pollution or enforcing common law or statutory

9

rights. No court of this Commonwealth with jurisdiction to abate

10

public or private nuisances shall be deprived of jurisdiction in

11

an action to abate a private or public nuisance instituted by

12

any person on grounds that the nuisance constitutes air or water

13

pollution.

14

§ 3258.  Production of materials, witnesses, depositions and

15

rights of entry.

16

(a)  General rule.--The department may make inspections,

17

conduct tests or sampling or examine books, papers and records

18

pertinent to a matter under investigation under this chapter to

19

determine compliance with this chapter. For this purpose, the

20

duly authorized agents and employees of the department may at

21

all reasonable times enter and examine any involved property,

22

facility, operation or activity.

23

(b)  Access.--The owner, operator or other person in charge

24

of a property, facility, operation or activity under this

25

chapter, upon presentation of proper identification and purpose

26

for inspection by agents or employees of the department, shall

27

provide free and unrestricted entry and access. Upon refusal,

28

the agent or employee may obtain a search warrant or other

29

suitable order authorizing entry and inspection. It shall be

30

sufficient to justify issuance of a search warrant authorizing

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1

examination and inspection if:

2

(1)  there is probable cause to believe that the object

3

of the investigation is subject to regulation under this

4

chapter; and

5

(2)  access, examination or inspection is necessary to

6

enforce the provisions of this chapter.

7

(c)  Witnesses.--In any part of this Commonwealth, the

8

department may subpoena witnesses, administer oaths, examine

9

witnesses, take testimony and compel production of books,

10

records, maps, plats, papers, documents and other writings

11

pertinent to proceedings or investigations conducted by the

12

department under this chapter. Upon refusal to obey a subpoena

13

by any person and on application of the department, a court may

14

enforce a subpoena in contempt proceedings. Fees for serving a

15

subpoena shall be the same as those paid to sheriffs for similar

16

services.

17

(d)  Deposition.--The department or a party to a proceeding

18

before the department may cause the deposition of a witness who

19

resides in or outside of this Commonwealth to be taken in the

20

manner prescribed by law for taking depositions in civil

21

actions.

22

(e)  Witness fee.--Witnesses summoned before the department

23

shall be paid the same fees as are paid to witnesses in courts

24

of record of general jurisdiction. Witnesses whose depositions

25

are taken under this chapter, and the officers taking those

26

depositions, shall be entitled to the same fees as those paid

27

for like services in court.

28

(f)  Purchasers.--Upon request, a purchaser of oil or gas

29

shall provide the department information necessary to determine

30

ownership of facilities from which the purchaser obtained oil or

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1

gas. The information shall be kept confidential for a period of

2

five years and the department may utilize it in enforcement

3

proceedings. The department may request information under this

4

section only when a well does not comply with section 3211(h)

5

(relating to well permits).

6

§ 3259.  Unlawful conduct.

7

It shall be unlawful for any person to:

8

(1)  Drill, alter, operate or utilize an oil or gas well

9

without a permit or registration from the department as

10

required by this chapter or in violation of rules or

11

regulations adopted under this chapter, orders of the

12

department or a term or condition of a permit issued by the

13

department.

14

(2)  Conduct an activity related to drilling for, or

15

production of, oil and gas:

16

(i)  contrary to this chapter, rules or regulations

17

adopted under this chapter, an order of the department or

18

a term or condition of a permit issued by the department;

19

or

20

(ii)  in any manner as to create a public nuisance or

21

adversely affect public health, safety, welfare or the

22

environment.

23

(3)  Refuse, obstruct, delay or threaten an agent or

24

employee of the department acting in the course of lawful

25

performance of a duty under this chapter, including, but not

26

limited to, entry and inspection.

27

(4)  Attempt to obtain a permit or identify a well as an

28

orphan well by misrepresentation or failure to disclose all

29

relevant facts.

30

(5)  Cause abandonment of a well by removal of casing or

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1

equipment necessary for production without plugging the well

2

in the manner prescribed under section 3220 (relating to

3

plugging requirements), except that the owner or operator of

4

a well may temporarily remove casing or equipment necessary

5

for production, but only if it is part of the normal course

6

of production activities.

7

§ 3260.  Collection of fines and penalties.

8

Fines and penalties shall be collectible in a manner provided

9

by law for collection of debts. If a person liable to pay a

10

penalty neglects or refuses to pay after demand, the amount,

11

together with interest and costs that may accrue, shall be a

12

judgment in favor of the Commonwealth on the person's property,

13

but only after the judgment has been entered and docketed of

14

record by the prothonotary of the county where the property is

15

situated. The department may transmit to prothonotaries of the

16

various counties certified copies of all judgments, and it shall

17

be the duty of each prothonotary to enter and docket them of

18

record in the prothonotary's office and index them as judgments

19

are indexed, without requiring payment of costs as a condition

20

precedent to entry.

21

§ 3261.  Third-party liability.

22

If a person other than a well operator renders a service or

23

product to a well or well site, that person is jointly and

24

severally liable with the well owner or operator for violations

25

of this chapter arising out of and caused by the person's

26

actions at the well or well site.

27

SUBCHAPTER F

28

(RESERVED)

29

SUBCHAPTER G

30

MISCELLANEOUS PROVISIONS

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1

Sec.

2

3291.  Well plugging funds.

3

3292.  Local ordinances.

4

3293.  Effect on department authority.

5

3294.  Relationship to solid waste and surface mining.

6

3295.  Regulatory authority.

7

§ 3291. 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

§ 3292.  Local ordinances.

13

Except with respect to ordinances adopted under the act of

14

July 31, 1968 (P.L.805, No.247), known as the Pennsylvania

15

Municipalities Planning Code, the act of October 4, 1978

16

(P.L.851, No.166), known as the Flood Plain Management Act, and

17

the act of March 31, 1927 (P.L.98, No.69), referred to as the

18

Second Class City Zoning Law, local ordinances and enactments

19

purporting to regulate oil and gas well operations regulated by

20

this chapter are preempted and superseded by this chapter to the

21

extent the ordinances and enactments regulate the method of oil

22

and gas well operations. No ordinances or enactments adopted

23

under those acts shall impose conditions, requirements or

24

limitations  that are inconsistent with this part.

25

§ 3293.  Effect on department authority.

26

This chapter does not affect, limit or impair any right or

27

authority of the department under the act of June 22, 1937

28

(P.L.1987, No.394), known as The Clean Streams Law, the act of

29

January 8, 1960 (1959 P.L.2119, No.787), known as the Air

30

Pollution Control Act, the act of November 26, 1978 (P.L.1375,

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1

No.325), known as the Dam Safety and Encroachments Act or the

2

act of July 7, 1980 (P.L.380, No.97), known as the Solid Waste

3

Management Act.

4

§ 3294.  Relationship to solid waste and surface mining.

5

(a)  General rule.--The obligation to obtain a permit and

6

post a bond under Articles III and V of the act of July 7, 1980

7

(P.L.380, No.97), known as the Solid Waste Management Act, and

8

to provide public notice under section 1905-A(b)(1)(v) of the

9

act of April 9, 1929 (P.L.177, No.175), known as The

10

Administrative Code of 1929, for any pit, impoundment, method or

11

facility employed for the disposal, processing or storage of

12

residual wastes generated by the drilling of an oil or gas well

13

or from the production of wells which is located on the well

14

site, shall be considered to have been satisfied if the owner or

15

operator of the well meets the following conditions:

16

(1)  the well is permitted under the requirements of

17

section 3211 (relating to well permits) or registered under

18

section 3213 (relating to well registration and

19

identification);

20

(2)  the owner or operator has satisfied the financial

21

security requirements of section  3225 (relating to bonding) 

22

by obtaining a surety or collateral bond for the well and

23

well site; and

24

(3)  the owner or operator maintains compliance with this

25

chapter and applicable regulations of the Environmental

26

Quality Board.

27

(b)  Noncoal surface mining.--Obligations under the act of

28

December 19, 1984 (P.L.1093, No.219), known as the Noncoal

29

Surface Mining Conservation and Reclamation Act, or a rule or

30

regulation promulgated thereunder, for any borrow area where

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1

minerals are extracted solely for the purpose of oil and gas

2

well development, including access road construction, shall be

3

considered to have been satisfied if the owner or operator of

4

the well meets the conditions imposed under subsection (a)(1)

5

and (2) and maintains compliance with this chapter and

6

applicable regulations of the Environmental Quality Board.

7

(c)  Solid Waste Management Act.--This section does not

8

diminish or otherwise affect duties or obligations of an owner

9

or operator under the Solid Waste Management Act. This section

10

does not apply to waste classified as hazardous waste under the

11

Solid Waste Management Act or the Resource Conservation and

12

Recovery Act of 1976 (Public Law 94-580, 90 Stat. 2795, 42

13

U.S.C. § 6901 et seq.).

14

(d)  Definition.--As used in this section and sections 3216

15

(relating to well site restoration) and 3225 (relating to

16

bonding), the term "well site" means areas occupied by all

17

equipment or facilities necessary for or incidental to drilling,

18

production or plugging a well.

19

§ 3295.  Regulatory authority.

20

The Environmental Quality Board shall adopt regulations to

21

implement this chapter.

22

CHAPTER 33

23

LOCAL ORDINANCES RELATING TO

24

OIL AND GAS OPERATIONS

25

Sec.

26

3301.  Scope of chapter.

27

3302.  Definitions.

28

3303.  Local ordinances.

29

3304.  Review by Attorney General.

30

3305.  Civil actions.

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1

3306.  Commonwealth Court masters.

2

3307.  Attorney fees and costs.

3

3308.  Sanction.

4

3309.  Provisions of local ordinances.

5

3310.  Applicability.

6

§ 3301.  Scope of chapter.

7

The purposes of this chapter are to:

8

(1)  Allow municipalities to efficiently regulate oil and

9

gas operations consistent with their authority under the act

10

of July 31, 1968 (P.L.805, No.247), known as the Pennsylvania

11

Municipalities Planning Code.

12

(2)  Foster the expeditious and efficient handling of

13

municipal oil and gas procedures.

14

(3)  Clarify the role of all Federal and State agencies

15

and municipal governments with regard to oil and gas

16

development activities.

17

§ 3302.  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

"Building."  An occupied structure with walls and roof within

22

which individuals live or customarily work.

23

"Environment acts."  All statutes enacted by the Commonwealth

24

relating to the protection of the environment or the protection

25

of public health, safety and welfare, that are administered and

26

enforced by the department or by another Commonwealth agency,

27

including an independent agency, and all Federal statutes

28

relating to the protection of the environment, to the extent

29

those statutes regulate oil and gas operations.

30

"Local government."  A county, city, borough, incorporated

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1

town or township of this Commonwealth.

2

"Local ordinance."  An ordinance adopted by a local

3

government that regulates oil and gas operations.

4

"MPC."  The act of July 31, 1968 (P.L.805, No.247), known as

5

the Pennsylvania Municipalities Planning Code.

6

"Oil and gas operations."  The term includes the following:

7

(1)  well location assessment, including seismic

8

operations, well site preparation, construction, drilling,

9

hydraulic fracturing and site restoration associated with an

10

oil or gas well of any depth;

11

(2)  water and other fluid storage or impoundment areas

12

used exclusively for oil and gas operations;

13

(3)  construction, installation, use, maintenance and

14

repair of:

15

(i)  oil and gas pipelines;

16

(ii)  natural gas compressor stations; and

17

(iii)  natural gas processing plants or facilities

18

performing equivalent functions; and

19

(4)  construction, installation, use, maintenance and

20

repair of all equipment directly associated with activities

21

specified in paragraphs (1), (2) and (3), to the extent that:

22

(i)  the equipment is necessarily located at or

23

immediately adjacent to a well site, impoundment area,

24

oil and gas pipeline, natural gas compressor station or

25

natural gas processing plant; and

26

(ii)  the activities are authorized and permitted

27

under the authority of a Federal or Commonwealth agency.

28

"Permitted use."  A use which, upon submission of notice to

29

and receipt of a permit issued by a zoning officer or equivalent

30

official, is authorized to be conducted without restrictions

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1

other than those set forth in section 3309 (relating to

2

provisions of local ordinances).

3

§ 3303.  Local ordinances.

4

(a)  General rule.--A local ordinance may only be enacted

5

pursuant to the MPC, the act of March 31, 1927 (P.L.98, No.69),

6

referred to as the Second Class City Zoning Law, or the act of

7

October 4, 1978 (P.L.851, No.166), known as the Flood Plain

8

Management Act,  as applicable, and shall provide for the

9

reasonable development of minerals within the local government

10

in accordance with the provisions of section 603(i) of the MPC

11

and this chapter.

12

(b)  Limitation.--Except as provided in this chapter, a local

13

ordinance shall not conflict with and shall not regulate oil and

14

gas operations covered by the environment acts, except to the

15

extent that the environment acts provide the authority.

16

(c)  Construction.--Nothing in this chapter shall be

17

construed to impair or infringe on the preemption provisions of

18

section 3292 (relating to local ordinances).

19

§ 3304.  Review by Attorney General.

20

(a)  Request of owner or operator.--An owner or operator of

21

an oil and gas operation, or any person having the right to

22

royalty payments under a lease of oil or gas mineral rights, may

23

request the Attorney General to review a local ordinance to

24

determine whether it allows for the reasonable development of

25

oil and gas resources in accordance with the provisions

26

specifically addressed in this chapter, Chapter 32 (relating to

27

regulation), the MPC and judicial decisions of the Commonwealth.

28

(b)  Preenactment review.--A local government may, prior to

29

the enactment of a local ordinance, request the Attorney General

30

to review the ordinance to determine whether it allows for the

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1

reasonable development of oil and gas resources in accordance

2

with the provisions of this chapter, Chapter 32, the MPC and

3

judicial decisions of the Commonwealth.

4

(c)  Time period for review.--Within 120 days of receiving a

5

request under subsection (a) or (b), the Attorney General shall

6

advise in writing the person that made the request whether or

7

not the Attorney General determines that the local ordinance

8

provides for the reasonable development of oil and gas reserves

9

and provide a copy of the written determination to the affected

10

local government.

11

§ 3305.  Civil actions.

12

(a)  Attorney General.--The Attorney General may bring an

13

action against a local government in Commonwealth Court to

14

invalidate or enjoin the enforcement of a local ordinance that

15

does not allow for the reasonable development of oil and gas

16

resources.

17

(b)  Private right of action.--

18

(1)  Notwithstanding any provision of 42 Pa.C.S. Ch. 85

19

Subch. C (relating to actions against local parties), any

20

person who is aggrieved by the enactment or enforcement of a

21

local ordinance that does not allow for the reasonable

22

development of oil and gas resources in accordance with the

23

provisions of section 3292 (relating to local ordinances) may

24

bring an action in Commonwealth Court to invalidate the

25

ordinance or enjoin its enforcement.

26

(2)  An aggrieved person may proceed without first

27

obtaining review of the ordinance by the Attorney General or

28

may proceed after receiving such review if the Attorney

29

General determines that the ordinance fails to comply with

30

this chapter but declines to bring an action under subsection

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1

(a).

2

(3)  In an action brought relating to the enactment or

3

enforcement of a local ordinance, the determination of the

4

Attorney General made under section 3304 (relating to review

5

by Attorney General) shall become part of the record before

6

the court.

7

§ 3306.  Commonwealth Court masters.

8

(a)  General rule.--The Commonwealth Court may promulgate

9

rules for the selection and appointment of masters on a full-

10

time or part-time basis to oversee actions brought under section

11

3305 (relating to civil actions). A master must be a member of

12

the bar of this Commonwealth. The number and compensation of

13

masters shall be fixed by the Commonwealth Court, and their

14

compensation shall be paid by the Commonwealth.

15

(b)  Procedure.--

16

(1)  The Commonwealth Court may direct that a hearing in

17

an action brought under section 3305 be conducted in the

18

first instance by the master in the manner provided for in

19

this section.

20

(2)  Upon the conclusion of a hearing before a master,

21

the master shall transmit written findings and

22

recommendations for disposition to the president judge.

23

Prompt written notice and copies of the findings and

24

recommendations shall be given to the parties to the

25

proceeding.

26

(3)  The findings and recommendations of the master shall

27

become the findings and order of the Commonwealth Court upon

28

written confirmation by the president judge. A rehearing may

29

be ordered by the president judge at any time upon cause

30

shown.

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1

§ 3307.  Attorney fees and costs.

2

In an action brought under section 3305 (relating to civil

3

actions), the court may do any of the following:

4

(1)  If the court determines that the local government

5

enacted or enforced a local ordinance with willful or

6

reckless disregard for the limitation of authority

7

established under State law, it may order the local

8

government to pay the plaintiff reasonable attorney fees and

9

other reasonable costs incurred by the plaintiff in

10

connection with the action.

11

(2)  If the court determines that the action brought by

12

the plaintiff was frivolous or was brought without

13

substantial justification in claiming that the local

14

ordinance in question was contrary to the requirements of

15

this chapter or Chapter 32 (relating to regulations), the Oil

16

and Gas Act, it may order the plaintiff to pay the local

17

government reasonable attorney fees and other reasonable

18

costs incurred by the local government in defending the

19

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 regulations) the Oil

4

and Gas Act, the MPC 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 structures and

18

fencing, may not take place within 300 feet of an

19

existing building.

20

(6)  Authorize impoundment areas used for oil and gas

21

operations as a permitted use in all zoning districts,

22

provided that the edge of any impoundment area shall not be

23

located closer than 300 feet from an existing building.

24

(7)  Authorize natural gas compressor stations as a

25

permitted use in agriculture and industrial zoning districts

26

and as a conditional use in all other zoning districts, if

27

the natural gas compressor building meets the following

28

conditions:

29

(i)  is located 750 feet or more from the nearest

30

existing building or 200 feet from the nearest lot line,

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1

whichever is greater, unless waived by the owner of the

2

building or adjoining lot; and

3

(ii)  does not exceed a noise standard of 60dbA at

4

the nearest property line or the applicable standard

5

imposed by Federal law, whichever is lesser.

6

(8)  Authorize natural gas processing plants as a

7

permitted use in an industrial zoning district and as

8

conditional uses in agricultural zoning districts, if the

9

natural gas processing plant buildings meet the following

10

conditions:

11

(i)  Unless there is a waiver by the owner of the

12

building or adjoining lot, the natural gas processing

13

plant building is located at the greater of:

14

(A)  at least 750 feet from the nearest existing

15

building; or

16

(B)  at least 200 feet from the nearest lot line.

17

(ii)  The noise level of the natural gas processing

18

plant at the property line does not exceed the lesser of:

19

(A)  a noise standard of 60dbA; or

20

(B)  the applicable standard imposed by Federal

21

law.

22

(9)  Impose restrictions on vehicular access routes for

23

overweight vehicles only as authorized under 75 Pa.C.S.

24

(relating to vehicles) or the MPC.

25

(10)  Does not attempt to impose limits or conditions on

26

subterranean operations or hours of operation.

27

§ 3310.  Applicability.

28

This chapter shall apply to the enforcement of local

29

ordinances existing on the date of this section and to the

30

enactment or enforcement of local ordinances enacted on or after

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1

the effective date of this chapter.

2

Section 2.  Repeals are as follows:

3

(1)  The General Assembly declares that the repeal under

4

paragraph (2) is necessary to effectuate the addition of 58

5

Pa.C.S. Ch. 32.

6

(2)  The act of December 19, 1984 (P.L.1140, No.223),

7

known as the Oil and Gas Act, is repealed.

8

Section 3.  This act shall apply as follows:

9

(1)  The addition of 58 Pa.C.S. § 3225(a)(1)(iii) shall

10

apply to wells drilled after the effective date of this

11

section.

12

(2)  The addition of 58 Pa.C.S. Pt II shall apply to all

13

oil and gas deposits and oil and gas development activities

14

and operations subject to the jurisdiction of the

15

Commonwealth. With respect to oil and gas deposits on

16

national forest lands identified under section 17(o) of the

17

Mineral Leasing Act (106 Stat. 3108, 30 U.S.C. § 226(o)), the

18

application of regulations and statutes adopted by the

19

Commonwealth shall be the exclusive method and means by which

20

any requirements may be imposed on any feature, aspect or

21

process of oil and gas operations pertaining to the

22

development of the deposits.

23

Section 4.  The addition of 58 Pa.C.S. Ch. 32 is a

24

continuation of the act of December 19, 1984 (P.L.1140, No.223),

25

known as the Oil and Gas Act. The following apply:

26

(1)  Except as otherwise provided in 58 Pa.C.S. Ch. 32,

27

all activities initiated under the Oil and Gas Act shall

28

continue and remain in full force and effect and may be

29

completed under 58 Pa.C.S. Ch. 32. Orders, regulations, rules

30

and decisions which were made under the Oil and Gas Act and

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1

which are in effect on the effective date of section 2(2) of

2

this act shall remain in full force and effect until revoked,

3

vacated or modified under 58 Pa.C.S. Ch. 32. Contracts,

4

obligations and collective bargaining agreements entered into

5

under the Oil and Gas Act are not affected nor impaired by

6

the repeal of the Oil and Gas Act.

7

(2)  Except as set forth in paragraph (3), any difference

8

in language between 58 Pa.C.S. Ch. 32 and the Oil and Gas Act

9

is intended only to conform to the style of the Pennsylvania

10

Consolidated Statutes and is not intended to change or affect

11

the legislative intent, judicial construction or

12

administration and implementation of the Oil and Gas Act.

13

(3)  Paragraph (2) does not apply to the addition of the

14

following provisions:

15

(i)  The following definitions in section 3203:

16

(A)  "Unconventional formation."

17

(B)  "Unconventional well."

18

(ii)  Section 3211(a) introductory paragraph, (b),

19

(b.1), (b.2), (d), (e), (e.1)(5), (6) and (7), (f), (g)

20

and (k).

21

(iii)  Section 3215(a), (b), (c) introductory

22

paragraph, (6) and (7) , (d) and (e).

23

(iv)  Section 3218(a), (b.1), (b.2), (c), (c.1), (d)

24

(1), (3), (4) and (5) and (g).

25

(v)  Section 3218.1.

26

(vi)  Section 3218.2.

27

(vii)  Section 3218.3.

28

(viii)  Section 3218.4.

29

(ix)  Section 3218.5.

30

(x)  Section 3218.6.

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1

(xi)  Section 3222(a.1), (b), (b.1), (b.2) and (b.3).

2

(xii)  Section 3225(a)(1), (2) and (3)(iii) and (iv),

3

(c), (d), (d.1) and (f).

4

(xiii)  Section 3253(c) and (f).

5

(xiv)  Section 3255(a) and (b).

6

(xv)  Section 3256.

7

(xvi)  Section 3292.

8

Section 4.1.  It is not the intent of the General Assembly to

9

change, repeal or otherwise affect any of the provisions of the

10

act of December 18, 1984 (P.L. 1069, No. 214), known as the Coal

11

and Gas Resource Coordination Act, or to change, repeal or

12

otherwise affect any of the provisions of the act of January 26,

13

2011 (P.L.7, No.2), entitled "An act amending the act of

14

December 18, 1984 (P.L.1069, No.214), entitled 'An act requiring

15

coordination of coal mine and gas well operators; authorizing

16

Department of Environmental Resources enforcement powers; and

17

providing penalties,' further providing for definitions, for

18

permits, for permit application, for minimum distance between

19

gas wells, for well class designation and for coordination of

20

gas well drilling through active coal mines; providing for a

21

pillar support study; and further providing for plugging gas

22

wells penetrating workable coal seams, for penalties and for

23

validity of other laws," which amended the Coal and Gas Resource

24

Coordination Act.

25

Section 4.2.  Within 180 days of the effective date of this

26

section, the Department of Transportation shall, based on

27

accurate department records reflecting average historical

28

expenses which have been incurred in the repair of excess

29

damages and levels of use by industries, including the

30

transportation of forest and other products, publish proposed

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1

regulations to:

2

(1)  adopt an appropriate method to determine levels of

3

financial security, degrees of liability and bonding

4

requirements for hauling in excess of posted weight limits on

5

State and local roads in counties where there are

6

unconventional gas wells; and 

7

(2)  impose bonding requirements based on levels of use

8

by industry.

9

Section 5.  This act shall take effect as follows:

10

(1)  The following provisions shall take effect

11

immediately:

12

(i)  The addition of 58 Pa.C.S. § 3301.

13

(ii)  Section 4.1 of this act.

14

(iii)  Section 4.2 of this act.

15

(iv)  This section.

16

(2)  Except for the addition of 58 Pa.C.S. § 3301, the

17

addition of 58 Pa.C.S. Ch. 33 shall take effect in 30 days.

18

(2.1)  The addition of 58 Pa.C.S. § 3215 shall take

19

effect in 120 days.

20

(3)  The addition of 58 Pa.C.S. § 3225 shall take effect

21

in 180 days.

22

(4)  The remainder of this act shall take effect in 60

23

days.

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