PRIOR PRINTER'S NOS. 2689, 2765, 2777, 2837

PRINTER'S NO.  3048

  

THE GENERAL   ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

1950

Session of

2011

  

  

  

Report of the Committee of Conference

  

  

  

To the Members of the House of Representatives and Senate:

  

We, the undersigned, Committee of Conference on the part of the Senate and House of Representatives for the purpose of considering House Bill No. 1950, entitled:

"An act amending Titles 27 (Environmental Resources) and 58 (Oil and P1:L2Gas) of the Pennsylvania Consolidated Statutes, * * *.

Amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes, * * * and P2:L7making a related repeal,"

  

respectfully submit the following bill as our report:

  

BRIAN L. ELLIS

            

DAVID L. REED

  

       

(Committee on the part of the House of Representatives.)

  

JOSEPH B. SCARNATI

  

MARY JO WHITE

  

  

(Committee on the part of the Senate.)

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AN ACT

  

 


1

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

2

Statutes, providing for an unconventional gas well fee and

3

for transfers from the Oil and Gas Lease Fund; providing for

4

distribution of fees and transfers; establishing the Natural

5

Gas Energy Development Program; consolidating the Oil and Gas

6

Act with modifications and additions relating to definitions,

7

well permits, permit objections, comments by municipalities

8

and storage operators, well location restrictions, well site

9

restoration, protection of water supplies, notification to

10

public drinking water systems, containment for unconventional

11

wells, transportation records regarding wastewater fluids,

12

corrosion control requirements, gathering lines, well control

13

emergency response, hydraulic fracturing chemical discharge

14

requirements, bonding, air containment emissions, public

15

nuisances, enforcement orders, well control emergency cost

16

recovery, penalties, civil penalties, inspection and

17

production of materials, witnesses, depositions and rights of

18

entry, third party liability and inspection reports;

19

providing for local ordinances relating to oil and gas

20

operations and for responsibility for fee; making an

21

appropriation; and making a related repeal.

22

The General Assembly of the Commonwealth of Pennsylvania

23

hereby enacts as follows:

24

Section 1.  Title 58 of the Pennsylvania Consolidated

25

Statutes is amended by adding parts to read:

26

PART I

27

(RESERVED)

28

PART II

29

OVERSIGHT AND DEVELOPMENT

30

Chapter

31

23.  Unconventional Gas Well Fee

32

25.  Oil and Gas Lease Fund

33

27.  Natural Gas Energy Development Program

34

CHAPTER 23

35

UNCONVENTIONAL GAS WELL FEE

36

Sec.

37

2301.  Definitions.

38

2302.  Unconventional gas well fee.

39

2303.  Administration.

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1

2304.  Well information.

2

2305.  Duties of department.

3

2306.  (Reserved).

4

2307.  Commission.

5

2308.  Enforcement.

6

2309.  Enforcement orders.

7

2310.  Administrative penalties.

8

2311.  (Reserved).

9

2312.  Recordkeeping.

10

2313.  Examinations.

11

2314.  Distribution of fee.

12

2315.  Statewide initiatives.

13

2316.  Small business participation.

14

2317.  Applicability.

15

2318.  Expiration.

16

§ 2301.  Definitions.

17

The following words and phrases when used in this chapter

18

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

19

context clearly indicates otherwise:

20

"Average annual price of natural gas."  The arithmetic mean

21

of the New York Mercantile Exchange (NYMEX) settled price for

22

the near-month contract, as reported by the Wall Street Journal

23

for the last trading day of each month of a calendar year for

24

the 12-month period ending December 31.

25

"Company."  An entity doing business within this Commonwealth

26

and subject to tax under Article III, IV or VI of the act of

27

March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of

28

1971.

29

"Commission."  The Pennsylvania Public Utility Commission.

30

"Department."  The Department of Environmental Protection of

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1

the Commonwealth.

2

"Eligible applicant."  Any of the following:

3

(1)  A  county, municipality, council of governments,

4

watershed organization, institution of higher education or

5

nonprofit organization.

6

(2)  An authorized organization as defined in 27 Pa.C.S.

7

§ 6103 (relating to definitions).

8

(3)  A company, other than a producer.

9

"Fee."  The unconventional gas well fee imposed under section

10

2302 (relating to unconventional gas well fee).

11

"Fund."  The Unconventional Gas Well Fund.

12

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

13

streets most recently certified by the Department of

14

Transportation as eligible for distribution of liquid fuels

15

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

16

referred to as the Liquid Fuels Tax Municipal Allocation Law.

17

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

18

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

19

hydrocarbon gases, primarily methane, and possibly including

20

ethane, propane, butane, pentane, carbon dioxide, oxygen,

21

nitrogen and hydrogen sulfide and other gas species. The term

22

includes natural gas from oil fields known as associated gas or

23

casing head gas, natural gas fields known as nonassociated gas,

24

coal beds, shale beds and other formations. The term does not

25

include coal bed methane.

26

"Number of spud unconventional gas wells."  The most recent

27

numerical count of spud unconventional gas wells on the

28

inventory maintained and provided to the commission by the

29

department as of the last day of each month.

30

"Population."  As follows:

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1

(1)  Population of the Commonwealth and population of a

2

county shall be determined using the United States Census

3

Bureau's most recently released Annual Estimates of the

4

Resident Population for Counties of Pennsylvania.

5

(2)  Population of a municipality shall be determined

6

using the United States Census Bureau's most recently

7

released Annual Estimates for the Resident Population for

8

Incorporated Places in Pennsylvania.

9

(3)  Population of municipalities not included in the

10

report referenced under paragraph (2) shall be determined

11

using the United States Census Bureau's most recently

12

released Annual Estimates of the Resident Population for

13

Minor Civil Divisions in Pennsylvania.

14

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

15

company that holds a permit or other authorization to engage in

16

the business of severing natural gas for sale, profit or

17

commercial use from an unconventional gas well in this

18

Commonwealth. The term shall not include a producer that severs

19

natural gas from a site used to store natural gas that did not

20

originate from the site.

21

"Spud."  The actual start of drilling of an unconventional

22

gas well.

23

"Stripper well."  An unconventional gas well incapable of

24

producing more than 90,000 cubic feet of gas per day during any

25

calendar month, including production from all zones and

26

multilateral well bores at a single well, without regard to

27

whether the production is separately metered.

28

"Unconventional formation."  A geological shale formation

29

existing below the base of the Elk Sandstone or its geologic

30

equivalent stratigraphic interval where natural gas generally

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1

cannot be produced at economic flow rates or in economic volumes

2

except by vertical or horizontal well bores stimulated by

3

hydraulic fracture treatments or by using multilateral well

4

bores or other techniques to expose more of the formation to the

5

well bore.

6

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

7

drilled for the purpose of or to be used for the production of

8

natural gas from an unconventional formation.

9

"Vertical gas well."  An unconventional gas well which

10

utilizes hydraulic fracture treatment through a single vertical

11

well bore and produces natural gas in quantities greater than

12

that of a stripper well.

13

§ 2302.  Unconventional gas well fee.

14

(a)  General rule.--The governing body of a county that has a

15

spud unconventional gas well located within its borders may

16

elect whether to impose a fee on unconventional gas wells that

17

have been spud in the county.

18

(a.1)  Passage of ordinance.--Within 60 days after the

19

effective date of this section, the governing body of a county

20

under subsection (a) may adopt an ordinance to impose an

21

unconventional gas well fee. The governing body of a county must

22

notify the commission and give public notice of its intent to

23

adopt the ordinance.

24

(a.2)  County ordinance.--The ordinance imposing a fee under

25

subsection (a.1) shall be clear and in language that is readily

26

understandable by a layperson and shall be in the following

27

form:

28

The county of (insert name) hereby imposes an unconventional

29

gas well fee on each unconventional gas well spud in this

30

county.

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1

(a.3)  Prohibition.--

2

(1)  A county subject to this section, in which the

3

governing body does not adopt an ordinance imposing an

4

unconventional gas well fee within 60 days of the effective

5

date of this section shall be prohibited from receiving funds

6

under sections 2314(d)(1) (relating to distribution of fee)

7

and 2315(a.1)(3) and (5) (relating to Statewide initiatives).

8

(2)  The prohibition on receiving funds shall remain in

9

effect until the county adopts an ordinance imposing an

10

unconventional gas well fee. The prohibition shall expire and

11

funds may be received for the calendar year following the

12

adoption of an ordinance imposing the fee under this section.

13

(a.4)  Alternate imposition.--

14

(1)  If the governing body of a county does not impose an

15

unconventional gas well fee under subsection (a), the

16

municipalities in the county may compel the imposition of an

17

unconventional gas well fee on each unconventional gas well

18

spud in the county by adopting resolutions under paragraphs

19

(2), (3) and (4).

20

(2)  Following 60 days but not more than 120 days after

21

the effective date of this section, if the governing bodies

22

of at least half of the municipalities located in a county or

23

municipalities representing at least 50% of the population of

24

the county adopt resolutions to impose unconventional gas

25

well fees on all unconventional gas wells spud in the county,

26

the fee shall take effect. If a resolution is adopted, a copy

27

of the resolution shall be transmitted to the governing body

28

of the county and the commission. The governing body of a

29

municipality that is located in more than one county shall

30

transmit a copy of a resolution adopted under this paragraph

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1

to the governing body of each county in which the

2

municipality is located.

3

(3)  The transmittal of resolutions by governing bodies

4

under paragraph (2) shall constitute an imposition of the fee

5

in that county. The population of a municipality that is

6

located in more than one county shall be determined

7

separately for each county on the basis of the municipality's

8

population within each county.

9

(4)  Resolutions adopted under this subsection must be

10

framed in the following form:

11

The (insert name) in the county of (insert name) hereby

12

resolves to have the county impose an unconventional gas

13

well fee on each unconventional gas well spud in the

14

county.

15

(5)  A municipality which is located in a county that

16

does not adopt an ordinance imposing an unconventional gas

17

well fee and which does not adopt a resolution under

18

paragraphs (2), (3) and (4) shall be prohibited from

19

receiving funds under section 2314(d).

20

(b)  Components.--The fee adopted under subsection (a), (a.1)

21

or (a.4) is imposed on every producer and shall apply to

22

unconventional gas wells spud in this Commonwealth regardless of

23

when spudding occurred. Unconventional gas wells spud before

24

the fee is imposed shall be considered to be spud in the

25

calendar year prior to the imposition of the fee for purposes of

26

determining the fee under this subsection. Prior to adjustment

27

under subsection (c), the fee for each unconventional gas well

28

shall be determined as follows:

29

(1)  Year one:

30

(i)  If the average annual price of natural gas is

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1

not more than $2.25, the fee shall be $40,000 for the

2

calendar year in which the unconventional gas well is

3

spud.

4

(ii)  If the average annual price of natural gas is

5

greater than $2.25 and less than $3.00, the fee shall be

6

$45,000 for the calendar year in which the unconventional

7

gas well is spud.

8

(iii)  If the average annual price of natural gas is

9

greater than $2.99 and less than $5.00, the fee shall be

10

$50,000 for the calendar year in which the unconventional

11

gas well is spud.

12

(iv)  If the average annual price of natural gas is

13

greater than $4.99 and less than $6.00, the fee shall be

14

$55,000 for the calendar year in which the unconventional

15

gas well is spud.

16

(v)  If the average annual price of natural gas is

17

more than $5.99, the fee shall be $60,000 for the

18

calendar year in which the unconventional gas well is

19

spud.

20

(2)  Year two:

21

(i)  If the average annual price of natural gas is

22

not more than $2.25, the fee shall be $30,000 for the

23

calendar year following the year in which the

24

unconventional gas well is spud.

25

(ii)  If the average annual price of natural gas is

26

greater than $2.25 and less than $3.00, the fee shall be

27

$35,000 for the calendar year following the year in which

28

the unconventional gas well is spud.

29

(iii)  If the average annual price of natural gas is

30

greater than $2.99 and less than $5.00, the fee shall be

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1

$40,000 for the calendar year following the year in which

2

the unconventional gas well is spud.

3

(iv)  If the average annual price of natural gas is

4

greater than $4.99 and less than $6.00, the fee shall be

5

$45,000 for the calendar year following the year in which

6

the unconventional gas well is spud.

7

(v)  If the average annual price of natural gas is

8

more than $5.99, the fee shall be $55,000 for the

9

calendar year following the year in which the

10

unconventional gas well is spud.

11

(3)  Year three:

12

(i)  If the average annual price of natural gas is

13

not more than $2.25, the fee shall be $25,000 for the

14

second calendar year following the year in which the

15

unconventional gas well is spud.

16

(ii)  If the average annual price of natural gas is

17

greater than $2.25 and less than $3.00, the fee shall be

18

$30,000 for the second calendar year following the year

19

in which the unconventional gas well is spud.

20

(iii)  If the average annual price of natural gas is

21

greater than $2.99 and less than $5.00, the fee shall be

22

$30,000 for the second calendar year following the year

23

in which the unconventional gas well is spud.

24

(iv)  If the average annual price of natural gas is

25

greater than $4.99 and less than $6.00, the fee shall be

26

$40,000 for the second calendar year following the year

27

in which the unconventional gas well is spud.

28

(v)  If the average annual price of natural gas is

29

more than $5.99, the fee shall be $50,000 for the second

30

calendar year following the year in which the

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1

unconventional gas well is spud.

2

(4)  Years 4, 5, 6, 7, 8, 9 and 10:

3

(i)  If the average annual price of natural gas is

4

not more than $2.25, the fee shall be $10,000 for the

5

third through ninth calendar years following the year in

6

which the unconventional gas well is spud.

7

(ii)  If the average annual price of natural gas is

8

greater than $2.25 and less than $3.00, the fee shall be

9

$15,000 for the third through ninth calendar years

10

following the year in which the unconventional gas well

11

is spud.

12

(iii)  If the average annual price of natural gas is

13

greater than $2.99, the fee shall be $20,000 for the

14

third through ninth calendar years following the year in

15

which the unconventional gas well is spud.

16

(5)  Years 11, 12, 13, 14 and 15:

17

(i)  If the average annual price of natural gas is

18

less than $3.00, the fee shall be $5,000 for the 10th

19

through 14th calendar years following the year in which

20

the unconventional well is spud.

21

(ii)  If the average annual price of natural gas is

22

greater than $2.99, the fee shall be $10,000 for the 10th

23

through 14th calendar years following the year in which

24

the unconventional well is spud.

25

(6)  For purposes of this subsection, the fee shall be

26

determined using the average annual price of natural gas for

27

the calendar year in which the fee is imposed.

28

(b.1)  Nonproducing unconventional gas wells.--If a spud

29

unconventional gas well begins paying the fee imposed under this

30

section and is subsequently capped or does not produce natural

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1

gas in quantities greater than that of a stripper well within

2

two years after paying the initial fee, then the fee shall be

3

suspended:

4

(1)  The fee shall be reinstated for a calendar year

5

during which the unconventional gas well produces natural gas

6

in quantities greater than that of a stripper well.

7

(2)  Each calendar year during which a fee is suspended

8

shall not be considered a calendar year following spud for

9

purposes of determining the amount of the fee under

10

subsection (b).

11

(c)  Annual adjustment.--Beginning January 1, 2013, the

12

commission shall annually adjust the fee amounts under

13

subsection (b) to reflect any upward changes in the Consumer

14

Price Index for all Urban Consumers for the Pennsylvania, New

15

Jersey, Delaware and Maryland area in the preceding 12 months

16

and shall immediately submit the adjusted fee amount to the

17

Legislative Reference Bureau for publication as a notice in the

18

Pennsylvania Bulletin. The fee shall be adjusted by multiplying

19

the annual fee amount by any percentage increase to the Consumer

20

Price Index for all Urban Consumers for the Pennsylvania, New

21

Jersey, Delaware and Maryland area, rounded to the nearest $100.

22

The resultant product shall be added to the fee amount and the

23

sum shall become the new annual fee amount under subsection (b).

24

The annual adjustment under this subsection shall take effect if

25

the total number of unconventional gas wells spud in the

26

adjustment year exceeds the total number of unconventional gas

27

wells spud in the prior year.

28

(d)  Restimulated unconventional gas wells.--

29

(1)  An unconventional gas well which after restimulation

30

qualifies as a stripper well shall not be subject to this

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1

subsection.

2

(2)  The year in which the restimulation occurs shall be

3

considered the first year of spudding for purposes of

4

imposing the fee under this section if:

5

(i)  a producer restimulates a previously stimulated

6

unconventional gas well following the tenth year after

7

being spud by:

8

(A)  hydraulic fracture treatments;

9

(B)  using additional multilateral well bores;

10

(C)  drilling deeper into an unconventional

11

formation; or

12

(D)  other techniques to expose more of the

13

formation to the well bore; and

14

(ii)  the restimulation results in a substantial

15

increase in production.

16

(3)  As used in this subsection, the term "substantial

17

increase in production" means an increase in production

18

amounting to more than 90,000 cubic feet of gas per day

19

during a calendar month.

20

(e)  Cessation.--Payments of the fee shall cease upon

21

certification to the department by the producer that the

22

unconventional gas well has ceased production and has been

23

plugged according to the regulations established by the

24

department.

25

(f)  Vertical unconventional gas well fee.--The fee for a

26

vertical unconventional gas well shall be 20% of the fee

27

established in subsections (b) and (c), except that the fee

28

under subsection (b)(5) shall not apply.

29

§ 2303.  Administration.

30

(a)  Fee due date.--

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1

(1)  Except as provided under paragraph (2), the fee

2

imposed under this chapter shall be due by April 1, 2013, and

3

each April 1 thereafter. The fee shall become delinquent if

4

not remitted to the commission on the reporting date.

5

(2)  For wells spud before January 1, 2012, a fee imposed

6

under this chapter shall be due by September 1, 2012.

7

(b)  Report.--By September 1, 2012, and April 1 of each year

8

thereafter, each producer shall submit payment of the fee to the

9

commission and a report on a form prescribed by the commission

10

for the previous calendar year. The report shall include the

11

following:

12

(1)  The number of spud unconventional gas wells of a

13

producer in each municipality within each county that has

14

imposed a fee under this chapter.

15

(2)  The date that each unconventional gas well

16

identified under paragraph (1) was spud or ceased the

17

production of natural gas.

18

(c)  Costs of commission.--

19

(1)  The commission may impose an annual administrative

20

charge not to exceed $50 per spud unconventional gas well on

21

each producer, to be paid with the submission under

22

subsection (a), to pay for the actual costs of the commission

23

to administer and enforce this chapter.

24

(2)  Within 30 days of the effective date of this

25

subsection the commission shall estimate its expenditures

26

through June 30, 2012, that will be directly attributable to

27

the administration and enforcement of this chapter. The

28

commission shall subtract the amount of the administrative

29

charges imposed under paragraph (1) and assess any remaining

30

balance on all producers subject to the administrative charge

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1

in proportion to the number of wells owned by each producer.

2

Producers shall pay the assessments within 30 days of receipt

3

of notice from the commission. The amount of the assessment

4

may be challenged by a producer consistent with 66 Pa.C.S. §

5

510(c), (d) and (e) (relating to assessment for regulatory

6

expenses upon public utilities). Any collections that exceed

7

any of the following shall be used to offset the

8

administrative charges or other funds received for fiscal

9

year 2012-2013:

10

(i)  The budget amount approved by the General

11

Assembly and the Governor for administration and

12

enforcement of this chapter and Chapter 33 (relating to

13

local ordinances relating to oil and gas operations).

14

(ii)  The actual expenditures directly attributable

15

to the administration and enforcement of this chapter and

16

Chapter 33.

17

(3)  By June 30, 2012, and each June 30 thereafter, the

18

commission shall estimate its expenditures for the next

19

fiscal year that will be directly attributable to the

20

administration and enforcement of this chapter. After

21

subtracting any annual administrative charges imposed under

22

paragraph (1), amounts received by the commission under

23

section 2314(c.1)(2) (relating to distribution of fee) and

24

any amounts collected during the prior fiscal year that

25

exceeded actual expenditures directly attributable to the

26

administration and enforcement of this chapter, the

27

commission shall assess the remaining balance on all

28

producers subject to the unconventional gas well fee in

29

proportion to the number of wells owned by each producer.

30

Producers shall pay the assessments within 30 days of the

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1

receipt of notice from the commission. The amount of the

2

assessment may be challenged by a producer consistent with 66

3

Pa.C.S. § 510(c), (d) and (e). Any collections that exceed

4

any of the following shall be used to offset administrative

5

charges or assessments for the next fiscal year:

6

(i)  The budget amount approved by the General

7

Assembly and the Governor for administration and

8

enforcement of this chapter and Chapter 33.

9

(ii)  Actual expenditures directly attributable to

10

the administration and enforcement of this chapter and

11

Chapter 33.

12

§ 2304.  Well information.

13

(a)  List.--Within 14 days of the effective date of this

14

section, the department shall provide the commission and, upon

15

request, a county, with a list of all spud unconventional gas

16

wells from the department. The department shall update the list

17

and provide it to the commission on a monthly basis.

18

(b)  Updates.--A producer subject to the fee shall notify the

19

commission of the following within 30 days after a calendar

20

month in which the change occurs:

21

(1)  The spudding of an unconventional gas well.

22

(1.1)  The initiation of production at an unconventional

23

gas well.

24

(2)  The removal of an unconventional gas well from

25

production.

26

§ 2305.  Duties of department.

27

(a)  Confirmation of payment.--Prior to issuing a permit to

28

drill an unconventional gas well in this Commonwealth, the

29

department shall determine whether the producer has paid all

30

fees owed for an existing unconventional gas well under section

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1

2302 (relating to unconventional gas well fee).

2

(b)  Prohibition.--The department shall not issue a permit to

3

drill an unconventional gas well until all unconventional gas

4

well fees owed under section 2302 that are not in dispute have

5

been paid to the commission.

6

(c)  Payment of fees.--The commission shall provide the

7

department with information necessary to determine that the

8

producer has paid all unconventional gas well fees owed for an

9

unconventional gas well under section 2302.

10

§ 2306.  (Reserved).

11

§ 2307.  Commission.

12

(a)  Powers.--The commission shall have the authority to make

13

all inquiries and determinations necessary to calculate and

14

collect the fee, administrative charges or assessments imposed

15

under this chapter, including, if applicable, interest and

16

penalties.

17

(b)  Notice.--If the commission determines that the

18

unconventional gas well fee has not been paid in full, it may

19

issue a notice of the amount due and demand for payment and

20

shall set forth the basis for the determination.

21

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

22

be sent to the producer via certified mail.

23

(d)  Time period.--Except as set forth in subsection (e), the

24

commission may challenge the amount of a fee paid within three

25

years after the date the report under section 2303(b) (relating

26

to administration) is filed.

27

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

28

false or fraudulent report with the intent to evade the fee, an

29

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

30

§ 2308.  Enforcement.

- 18 -

 


1

(a)  Assessment.--The commission shall assess interest on any

2

delinquent fee at the rate determined under section 2307(a)

3

(relating to commission).

4

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

5

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

6

the fee, there shall be added to the amount of the fee due a

7

penalty of 5% of the amount of the fee if failure to file a

8

timely payment is for not more than one month, with an

9

additional 5% penalty for each additional month, or fraction of

10

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

11

in the aggregate.

12

(c)  Timely payment.--If the commission determines that a

13

producer has not made a timely payment of the fee, the

14

commission shall send written notice of the amount of the

15

deficiency to the producer within 30 days from the date of

16

determining the deficiency. The commission shall notify the

17

department of a producer that has failed to pay the fee for any

18

unconventional gas well under section 2302 (relating to

19

unconventional gas well fee). If the producer does not have a

20

pending appeal related to payment of the fee in process, the

21

department shall suspend the permit for that well until the fee

22

has been paid.

23

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

24

in addition to any other remedies provided by law or in equity.

25

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

26

collectible as authorized by law for the collection of debts. If

27

the producer liable to pay an amount neglects or refuses to pay

28

the amount after demand, the amount, together with costs, shall

29

be a judgment in favor of the Commonwealth upon the property of

30

the producer, but only after the judgment has been entered,

- 19 -

 


1

docketed and recorded by the prothonotary of the county where

2

the property is situated. The Commonwealth shall transmit to the

3

prothonotaries of the respective counties certified copies of

4

the judgments. Each prothonotary shall enter, docket and record

5

the record in the prothonotary's office and index each judgment,

6

without requiring the payment of costs as a condition precedent

7

to the entry of the judgment.

8

§ 2309.  Enforcement orders.

9

(a)  Issuance.--The commission may issue an order as

10

necessary to enforce this chapter. An order issued under this

11

section shall take effect upon notice, unless the order

12

specifies otherwise. A person aggrieved by an order under this

13

section may appeal to the Commonwealth Court under 42 Pa.C.S. §

14

763 (relating to direct appeals from government agencies).

15

(b)  Compliance.--A producer has the duty to comply with an

16

order issued under subsection (a). If a producer fails to

17

proceed diligently to comply with an order within the time

18

required, the producer shall be guilty of contempt and shall be

19

punished by the court in an appropriate manner. The commission

20

shall apply to the Commonwealth Court, which shall have

21

jurisdiction over matters relating to contempt.

22

§ 2310.  Administrative penalties.

23

(a)  Civil penalties.--In addition to any other proceeding

24

authorized by law, the commission may assess a civil penalty not

25

to exceed $2,500 per violation upon a producer for the violation

26

of this chapter. In determining the amount of the penalty, the

27

commission shall consider the willfulness of the violation and

28

other relevant factors.

29

(b)  Separate offense.--Each violation for each separate day

30

and each violation of this chapter shall constitute a separate

- 20 -

 


1

offense.

2

(c)  Limitation of actions.--Notwithstanding any limitation

3

in 42 Pa.C.S. Ch. 55 Subch. B (relating to civil actions and

4

proceedings) an action under this section must be brought within

5

three years of the violation.

6

(d)  Procedure.--A penalty under this chapter is subject to

7

66 Pa.C.S. Ch. 3 Subch. B (relating to investigations and

8

hearings).

9

§ 2311.  (Reserved).

10

§ 2312.  Recordkeeping.

11

A producer liable for the fee under this chapter shall keep

12

records, make reports and comply with regulations of the

13

commission. The commission may require a producer to make

14

reports, render statements or keep records as the commission

15

deems sufficient to determine liability for the fee.

16

§ 2313.  Examinations.

17

(a)  Access.--The commission or its authorized agents or

18

representatives shall:

19

(1)  Have access to the relevant books, papers and

20

records of any producer in order to verify the accuracy and

21

completeness of a report filed or fee paid under this

22

chapter.

23

(2)  Require the preservation of all relevant books,

24

papers and records for an appropriate period not to exceed

25

three years from the end of the calendar year to which the

26

records relate.

27

(3)  Examine any employee of a producer under oath

28

concerning the severing of natural gas subject to a fee or

29

any matter relating to the enforcement of this chapter.

30

(4)  Compel the production of relevant books, papers and

- 21 -

 


1

records and the attendance of all individuals who the

2

commission believes to have knowledge of relevant matters in

3

accordance with 66 Pa.C.S. (relating to public utilities).

4

(b)  Unauthorized disclosure.--Any information obtained by

5

the commission as a result of any report, examination,

6

investigation or hearing under this chapter shall be

7

confidential and shall not be disclosed, except for official

8

purposes, in accordance with judicial order or as otherwise

9

provided by law. A commissioner or an employee of the commission

10

who without authorization divulges confidential information

11

shall be subject to disciplinary action by the commission.

12

§ 2314.  Distribution of fee.

13

(a)  Establishment.--There is established a fund in the State

14

Treasury to be known as the Unconventional Gas Well Fund to be

15

administered by the commission.

16

(b)  Deposit.--All fees imposed and collected under this

17

chapter shall be deposited into the fund and are hereby

18

appropriated for the purpose set forth in this section.

19

(c)  Conservation districts.--

20

(1)  From fees collected for 2011, $2,500,000 from the

21

fund shall be distributed to county conservation districts.

22

(2)  From fees collected for 2012, $5,000,000 from the

23

fund shall be distributed to county conservation districts.

24

(3)  From fees collected for 2013, and each year

25

thereafter, $7,500,000 from the fund shall be distributed to

26

county conservation districts.

27

(4)  Beginning July 1, 2014, each July 1 thereafter, the

28

amount distributed under paragraph (3) shall be increased by

29

any percentage increase in the Consumer Price Index for All

30

Urban Consumers for the most recent 12-month period for which

- 22 -

 


1

figures have been officially reported by the Bureau of Labor

2

Statistics immediately prior to July 1.

3

(5)  Funds under paragraphs (1), (2) and (3) shall be

4

distributed in accordance with the following:

5

(i)  One-half shall be distributed by dividing the

6

amount equally among conservation districts for any use

7

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

8

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

9

(ii)  One-half shall be distributed by the State

10

Conservation Commission in a manner consistent with the

11

Conservation District Law and the provisions of the State

12

Conservation Commission's Conservation District Fund

13

Allocation Program—Statement of Policy under 25 Pa. Code

14

Ch. 83 Subch. B (relating to Conservation District Fund

15

Allocation Program—Statement of Policy).

16

(c.1)  Additional distributions.--From fees collected under

17

this chapter and deposited in the fund for 2011 and each year

18

thereafter:

19

(1)  $1,000,000 shall be distributed to the Pennsylvania

20

Fish and Boat Commission for costs relating to the review of

21

applications for permits to drill unconventional gas wells.

22

(2)  $1,000,000 shall be distributed to the Public

23

Utility Commission for costs to administer this chapter and

24

Chapter 33 (relating to local ordinances relating to oil and

25

gas operations).

26

(3)  $6,000,000 to the department for the administration

27

of this act and the enforcement of acts relating to clean air

28

and clean water.

29

(4)  $750,000 to the Pennsylvania Emergency Management

30

Agency for emergency response planning, training and

- 23 -

 


1

coordination related to natural gas production from

2

unconventional gas wells.

3

(5)  $750,000 to the Office of State Fire Commissioner

4

for the development, delivery and sustainment of training and

5

grant programs for first responders and the acquisition of

6

specialized equipment for response to emergencies relating to

7

natural gas production from unconventional gas wells.

8

(6)  $1,000,000 to the Department of Transportation for

9

rail freight assistance.

10

(c.2)  Natural gas energy development.--Following

11

distributions from the fund under subsections (c) and (c.1), the

12

following amounts shall be deposited into the Marcellus Legacy

13

Fund for distribution to the department for the Natural Gas

14

Energy Development Program under Chapter 27 (relating to Natural

15

Gas Energy Development Program):

16

(1)  For 2011, $10,000,000.

17

(2)  For 2012, $7,500,000.

18

(3)  For 2013, $2,500,000.

19

(c.3)  Report.--All agencies or organizations receiving funds

20

under subsections (c), (c.1) and (c.2) shall submit a report by

21

December 31, 2012, and December 31 of each year thereafter to

22

the Secretary of the Budget and the Appropriations Committee of

23

the Senate and the Appropriations Committee of the House of

24

Representatives. The report shall include an itemization and

25

explanation of the use of all funds received under subsections

26

(c), (c.1) and (c.2).

27

(d)  Distribution.--Except as provided in section 2302(a.3)

28

and (a.4) (relating to unconventional gas well fee), following

29

fee distribution under subsections (c), (c.1) and (c.2), from

30

fees collected for 2011 and each year thereafter, 60% of the

- 24 -

 


1

revenue remaining in the fund from fees collected for the prior

2

year are hereby appropriated to counties and municipalities for

3

purposes authorized under subsection (g). Counties and

4

municipalities are encouraged, where appropriate, to jointly

5

fund projects that cross jurisdictional lines. The commission,

6

after making a disbursement under subsection (f), shall

7

distribute the remaining funds appropriated as follows within

8

three months after the date the fee is due:

9

(1)  Except as provided in section 2302(a.3), 36% shall

10

be distributed to counties in which spud unconventional gas

11

wells are located. The amount for each county to which funds

12

will be distributed shall be determined using a formula that

13

divides the number of spud unconventional gas wells in the

14

county by the number of spud unconventional gas wells in this

15

Commonwealth and multiplies the resulting percentage by the

16

amount available for distribution under this paragraph.

17

(2)  Except as provided in section 2302(a.4), 37% shall

18

be distributed to municipalities in which spud unconventional

19

gas wells are located. The amount for each municipality to

20

which funds will be distributed shall be determined using a

21

formula that divides the number of spud unconventional gas

22

wells in the municipality by the number of  spud

23

unconventional gas wells in this Commonwealth and multiplies

24

the resulting percentage by the amount available for

25

distribution under this paragraph.

26

(3)  Except as provided in section 2302(a.4), 27% shall

27

be distributed to municipalities located in a county in which

28

spud unconventional gas wells are located. The amount

29

available for distribution in each county shall be determined

30

by dividing the number of spud unconventional gas wells in

- 25 -

 


1

the county by the number of spud unconventional gas wells in

2

this Commonwealth and multiplying the resulting percentage by

3

the amount available for distribution under this paragraph.

4

The resulting amount available for distribution in each

5

county in which spud unconventional gas wells are located

6

shall be distributed to each municipality in the county to

7

which funds will be distributed as follows:

8

(i)  Except as provided in section 2302(a.4), 50% of

9

the amount available under this paragraph shall be

10

distributed to municipalities in which spud

11

unconventional gas wells are located and to

12

municipalities that are either contiguous with a

13

municipality in which spud unconventional gas wells are

14

located or are located within five linear miles of a spud

15

unconventional gas well. The distribution shall be made

16

as follows:

17

(A)  One-half shall be distributed to each

18

municipality using a formula that divides the

19

population of the eligible municipality within the

20

county by the total population of all eligible

21

municipalities within the county and multiplies the

22

resulting percentage by the amount allocated to the

23

county under this subparagraph.

24

(B)  One-half shall be distributed to each

25

municipality using a formula that divides the highway

26

mileage of the eligible municipality within the

27

county by the total highway mileage of all eligible

28

municipalities within the county and multiplies the

29

resulting percentage by the amount allocated to the

30

county under this subparagraph.

- 26 -

 


1

(ii)  Except as provided in section 2302(a.4), 50% of

2

the amount available under this paragraph shall be

3

distributed to each municipality in the county regardless

4

of whether an unconventional gas well is located in the

5

municipality as follows:

6

(A)  One-half shall be distributed to each

7

municipality using a formula that divides the

8

population of the municipality within the county by

9

the total population of the county and multiplies the

10

resulting percentage by the amount allocated to the

11

county under this subparagraph.

12

(B)  One-half shall be distributed to each

13

municipality using a formula that divides the highway

14

mileage of the municipality within the county by the

15

total highway mileage of the county and multiplies

16

the resulting percentage by the amount allocated to

17

the county under this subparagraph.

18

(e)  Restriction.--The amount allocated to each municipality

19

under subsection (d) shall not exceed the greater of $500,000 or

20

50% of the total budget for the prior fiscal year beginning with

21

the 2010 budget year and continuing every year thereafter,

22

adjusted to reflect any upward changes in the Consumer Price

23

Index for all Urban Consumers for the Pennsylvania, New Jersey,

24

Delaware and Maryland area in the preceding 12 months. Any

25

remaining money shall be retained by the commission and

26

deposited in the Housing Affordability and Rehabilitation

27

Enhancement Fund for the uses specified under subsection (f).

28

(f)  Housing Affordability and Rehabilitation Enhancement

29

Fund.--

30

(1)  From fees collected for 2011, $2,500,000 from the

- 27 -

 


1

fund shall be distributed to the Housing Affordability and

2

Rehabilitation Enhancement Fund under the act of November 23,

3

2010 (P.L.1035, No.105), entitled "An act amending the act of

4

December 3, 1959 (P.L.1688, No.621), entitled, as amended,

5

'An act to promote the health, safety and welfare of the

6

people of the Commonwealth by broadening the market for

7

housing for persons and families of low and moderate income

8

and alleviating shortages thereof, and by assisting in the

9

provision of housing for elderly persons through the creation

10

of the Pennsylvania Housing Finance Agency as a public

11

corporation and government instrumentality; providing for the

12

organization, membership and administration of the agency,

13

prescribing its general powers and duties and the manner in

14

which its funds are kept and audited, empowering the agency

15

to make housing loans to qualified mortgagors upon the

16

security of insured and uninsured mortgages, defining

17

qualified mortgagors and providing for priorities among

18

tenants in certain instances, prescribing interest rates and

19

other terms of housing loans, permitting the agency to

20

acquire real or personal property, permitting the agency to

21

make agreements with financial institutions and Federal

22

agencies, providing for the purchase by persons of low and

23

moderate income of housing units, and approving the sale of

24

housing units, permitting the agency to sell housing loans,

25

providing for the promulgation of regulations and forms by

26

the agency, prescribing penalties for furnishing false

27

information, empowering the agency to borrow money upon its

28

own credit by the issuance and sale of bonds and notes and by

29

giving security therefor, permitting the refunding,

30

redemption and purchase of such obligations by the agency,

- 28 -

 


1

prescribing remedies of holders of such bonds and notes,

2

exempting bonds and notes of the agency, the income

3

therefrom, and the income and revenues of the agency from

4

taxation, except transfer, death and gift taxes; making such

5

bonds and notes legal investments for certain purposes; and

6

indicating how the act shall become effective,' providing for

7

the Pennsylvania Housing Affordability and Rehabilitation

8

Enhancement Program; and establishing the Housing

9

Affordability and Rehabilitation Enhancement Fund." From fees

10

collected for 2012, and each year thereafter, $5,000,000

11

shall be annually distributed to the Housing Affordability

12

and Rehabilitation Enhancement Fund.

13

(2)  Funds under paragraph (1) shall be used for the

14

following purposes:

15

(i)  To provide support to projects in a county in

16

which producing unconventional gas wells are located that

17

increase availability of quality, safe, affordable

18

housing for low-income and moderate-income individuals or

19

families, persons with disabilities or elderly persons.

20

(ii)  To provide rental assistance in a county in

21

which producing unconventional gas wells are located to

22

persons or families whose household income does not

23

exceed the area median income.

24

(3)  No less than 50% of the funds available under this

25

subsection shall be used in fifth, sixth, seventh and eighth

26

class counties.

27

(g)  Use of funds.--A county or municipality receiving funds

28

under subsection (d) shall use the funds received only for the

29

following purposes associated with natural gas production from

30

unconventional gas wells within the county or municipality:

- 29 -

 


1

(1)  Construction, reconstruction, maintenance and repair

2

of roadways, bridges and public infrastructure.

3

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

4

construction, reconstruction, maintenance and repair.

5

(3)  Emergency preparedness and public safety, including

6

law enforcement and fire services, hazardous material

7

response, 911, equipment acquisition and other services.

8

(4)  Environmental programs, including trails, parks and

9

recreation, open space, flood plain management, conservation

10

districts and agricultural preservation.

11

(5)  Preservation and reclamation of surface and

12

subsurface waters and water supplies.

13

(6)  Tax reductions, including homestead exclusions.

14

(7)  Projects to increase the availability of safe and

15

affordable housing to residents.

16

(8)  Records management, geographic information systems

17

and information technology.

18

(9)  The delivery of social services.

19

(10)  Judicial services.

20

(11)  For deposit into the county or municipality's

21

capital reserve fund if the funds are used solely for a

22

purpose set forth in this subsection.

23

(12)  Career and technical centers for training of

24

workers in the oil and gas industry.

25

(13)  Local or regional planning initiatives under the

26

act of July 31, 1968 (P.L.805, No.247), known as the

27

Pennsylvania Municipalities Planning Code.

28

(h)  Reporting.--

29

(1)  The commission shall submit an annual report on all

30

funds in the fund. The report shall include a detailed

- 30 -

 


1

listing of all deposits and expenditures of the fund and be

2

submitted to the chairman and the minority chairman of the

3

Appropriations Committee of the Senate, the chairman and the

4

minority chairman of the Environmental Resources and Energy

5

Committee of the Senate, the chairman and the minority

6

chairman of the Appropriations Committee of the House of

7

Representatives and the chairman and the minority chairman of

8

the Environmental Resources and Energy Committee of the House

9

of Representatives. The report shall be submitted by December

10

30, 2012, and by September 30 of each year thereafter.

11

(2)  All counties and municipalities receiving funds from

12

the fund under this section shall submit information to the

13

commission on a form prepared by the commission that sets

14

forth the amount and use of the funds received in the prior

15

calendar year. The form shall set forth that the funds

16

received were committed to a specific project or use as

17

authorized in this section. The reports shall be published

18

annually on the county or municipality's publicly accessible

19

Internet website.

20

(i)  Availability of funds.--Distribution of funds under this

21

section and section 2315 (relating to Statewide initiatives) are

22

contingent on availability of funds in the fund. If sufficient

23

funds are not available, the commission shall disburse funds on

24

a pro rata basis.

25

§ 2315.  Statewide initiatives.

26

(a)  Establishment.--There is established in the State

27

Treasury a fund to be known as the Marcellus Legacy Fund.

28

(a.1)  Deposit and distribution.--Following distribution

29

under section 2314(c), (c.1) and (c.2) (relating to distribution

30

of fee) from fees collected for 2011 and each year thereafter,

- 31 -

 


1

40% of the remaining revenue in the fund shall be deposited into

2

the Marcellus Legacy Fund and appropriated to the commission and

3

distributed within three months after the date the fee is due as

4

follows:

5

(1)  Twenty percent to the Commonwealth Financing

6

Authority for grants to eligible applicants for the

7

following:

8

(i)  Acid mines: damage, abatement and cleanup and

9

mine reclamation, with priority given to projects which

10

recycle and treat water for use in drilling operations.

11

(ii)  Orphan or abandoned oil and gas well plugging.

12

(iii)  Complying with the act of January 24, 1966

13

(1965 P.L.1535, No.537), known as the Pennsylvania Sewage

14

Facilities Act.

15

(iv)  Planning acquisition, development,

16

rehabilitation and repair of greenways, recreational

17

trails, open space, parks and beautification projects.

18

(v)  Programs to establish baseline water quality

19

data on private water supplies.

20

(vi)  Watershed programs and related projects.

21

(vii)  Up to 25% of funds distributed to the

22

Commonwealth Financing Authority under this paragraph may

23

be utilized for flood-control projects.

24

(2)  Ten percent to the Environmental Stewardship Fund.

25

(3)  Twenty-five percent to the Highway Bridge

26

Improvement Restricted Account in the Motor License Fund to

27

counties to be distributed to fund the cost of the

28

replacement or repair of locally owned at-risk deteriorated

29

bridges. Funds shall be distributed to counties

30

proportionately based on the population of the county as

- 32 -

 


1

follows:

2

(i)  In each county, the distribution shall be

3

according to the following formula:

4

(A)  Divide:

5

(I)  the total population of the county; by

6

(II)  the total population of the

7

Commonwealth;

8

(B)  Express the quotient under clause (A) as a

9

percentage.

10

(C)  Multiply:

11

(I)  the percentage under clause (B); by

12

(II)  the amount of money to be distributed

13

under this paragraph.

14

(ii)  Each county shall receive a minimum of $40,000

15

to the extent funds are available.

16

(iii)  The Department of Transportation shall release

17

money under this paragraph upon approval of a plan

18

submitted by a county or municipality to repair an at-

19

risk deteriorated bridge. The plan must include funding

20

for replacement or repair.

21

(iv)  A county of the first or second class may

22

submit a plan to use its funds under this paragraph for

23

at-risk deteriorated bridges owned by a public

24

transportation authority.

25

(4)  Twenty-five percent for water and sewer projects.

26

Fifty percent of the amount distributed under this paragraph

27

shall be transmitted to the Pennsylvania Infrastructure

28

Investment Authority to be used in accordance with the act of

29

March 1, 1988 (P.L.82, No.16), known as the Pennsylvania

30

Infrastructure Investment Authority Act. Fifty percent of the

- 33 -

 


1

amount distributed under this paragraph shall be distributed

2

to the H2O PA program to be used by the Commonwealth

3

Financing Authority in accordance with section 301 of the act

4

of July 9, 2008 (P.L.908, No.63), known as the H2O PA Act.

5

The prohibition on grants for projects located in a city or

6

county of the first or second class under section 301 of the

7

H2O PA Act shall not apply to funds distributed to the H2O PA

8

Program under this paragraph.

9

(5)  Fifteen percent for the planning, acquisition,

10

development, rehabilitation and repair of greenways,

11

recreational trails, open space, natural areas, community

12

conservation and beautification projects, community and

13

heritage parks and water resource management. Funds may be

14

used to acquire lands for recreational or conservation

15

purposes and land damaged or prone to drainage by storms or

16

flooding. Funds shall be distributed to counties

17

proportionately based on the population of the county as

18

follows:

19

(i)  In each county, the distribution shall be

20

according to the following formula:

21

(A)  Divide:

22

(I)  the total population of the county; by

23

(II)  the total population of the

24

Commonwealth.

25

(B)  Express the quotient under clause (A) as a

26

percentage.

27

(C)  Multiply:

28

(I)  the percentage under clause (B); by

29

(II)  the amount of funds available under

30

this paragraph.

- 34 -

 


1

(ii)  Each county shall receive a minimum of $25,000

2

to the extent funds are available.

3

(6)  Five percent for distribution as follows:

4

(i)  From fees collected in 2011, 2012 and 2013, to

5

the Department of Community and Economic Development for

6

projects to provide for the planning, development,

7

remodeling, remediation and construction of projects

8

relating to oil, natural gas or other chemical

9

substances. Projects under this subparagraph may include

10

blending facilities to liquefy or refine natural gas or

11

to convert natural gas to ethane, propane or other

12

substances; facilities to refine oil; or facilities to

13

refine or process oil, heating oil, jet fuel or any other

14

chemical substance. Following 2014, funds not utilized by

15

the Department of Community and Economic Development

16

under this subparagraph shall be deposited in the

17

Hazardous Sites Cleanup Fund.

18

(ii)  After 2013, to the Hazardous Sites Cleanup

19

Fund.

20

(b)  Restriction on use of proceeds.--

21

(1)  Funds distributed under subsection (a.1) shall not

22

be used for the purpose of public relations, outreach not

23

directly related to project implementation, communications,

24

lobbying or litigation.

25

(2)  Funds distributed under subsection (a.1) may not be

26

used by an authorized organization as defined in 27 Pa.C.S. §

27

6103 (relating to definitions) for land acquisition unless

28

the authorized organization has obtained the written consent

29

of the county and municipality in which the land is situated.

30

(c)  Coordination.--The department and the Department of

- 35 -

 


1

Conservation and Natural Resources shall review applications for

2

funding as requested by the Commonwealth Financing Authority and

3

provide recommendations on priority of projects and project

4

approval.

5

§ 2316.  Small business participation.

6

(a)  Requirement.--Producers shall provide maximum

7

practicable contracting opportunities for diverse small

8

businesses, including minority-owned business enterprises,

9

women-owned business enterprises and veteran-owned businesses.

10

(b)  Duties.--Producers shall do all of the following:

11

(1)  Maintain a policy prohibiting discrimination in

12

employment and contracting based on gender, race, creed or

13

color.

14

(2)  Use the database available on the Internet website

15

of the Department of General Services to identify certified

16

diverse small businesses, including minority-owned business

17

enterprises, women-owned business enterprises and veteran-

18

owned businesses, as potential contractors, subcontractors

19

and suppliers for opportunities related to unconventional

20

natural gas extraction.

21

(3)  Respond to the survey under subsection (c) within 90

22

days.

23

(c)  Survey.--Within one year of the effective date of this

24

section, the Department of General Services shall send all

25

producers a survey to report the producers' efforts to provide

26

maximum practicable contracting opportunities related to

27

unconventional natural gas extraction for diverse, small

28

business participation.

29

(d)  Reports.--The Department of General Services shall

30

compile the results and submit an annual report to the State

- 36 -

 


1

Government Committee of the Senate and the State Government

2

Committee of the House of Representatives on the utilization of

3

diverse small business participation related to unconventional

4

natural gas extraction. The report shall be submitted no later

5

than 150 days after the Department of General Services

6

disseminated the survey to producers.

7

(e)  Definition.--As used in this section, the term "diverse

8

small business" means minority-owned business, women-owned

9

business and veteran-owned business as determined by the

10

Department of General Services.

11

§ 2317.  Applicability.

12

The provisions of this chapter shall not negate or limit the

13

responsibilities of any producer under this title, 74 Pa.C.S

14

(relating to transportation) or 75 Pa.C.S. (relating to

15

vehicles).

16

§ 2318.  Expiration.

17

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

18

the imposition of a severance tax on unconventional gas wells in

19

this Commonwealth, submit for publication in the Pennsylvania

20

Bulletin notice of the imposition.

21

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

22

publication of the notice under subsection (a).

23

CHAPTER 25

24

OIL AND GAS LEASE FUND

25

Sec.

26

2501.  Definitions.

27

2502.  (Reserved).

28

2503.  (Reserved).

29

2504.  Appropriation of money.

30

2505.  Funds.

- 37 -

 


1

§ 2501.  Definitions.

2

The following words and phrases when used in this chapter

3

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

4

context clearly indicates otherwise:

5

"Department."  The Department of Conservation and Natural

6

Resources of the Commonwealth.

7

§ 2502.  (Reserved).

8

§ 2503.  (Reserved).

9

§ 2504.  Appropriation of money.

10

Money in the Oil and Gas Lease Fund is specifically

11

appropriated as provided in this chapter.

12

§ 2505.  Funds.

13

(a)  Priority.--Funds appropriated from the Oil and Gas Lease

14

Fund to the department under the act of April 9, 1929 (P.L.343,

15

No.176), known as The Fiscal Code, or other appropriation act

16

shall be distributed prior to allocations under subsection (b).

17

(b)  Allocations.--Money in the Oil and Gas Lease Fund shall

18

be allocated on an annual basis as follows:

19

(1)  The following amounts shall be transferred from the

20

Oil and Gas Lease Fund to the Marcellus Legacy Fund for

21

distribution to the Environmental Stewardship Fund:

22

(i)  For 2013, $20,000,000.

23

(ii)  For 2014 and each year thereafter, $35,000,000.

24

(2)  The following amounts shall be transferred from the

25

Oil and Gas Lease Fund to the Marcellus Legacy Fund for

26

distribution to the Hazardous Sites Cleanup Fund:

27

(i)  For 2015, $5,000,000.

28

(ii)  For 2016 and each year thereafter, $15,000,000.

29

CHAPTER 27

30

NATURAL GAS ENERGY

- 38 -

 


1

DEVELOPMENT PROGRAM

2

Sec.

3

2701.  Definitions.

4

2702.  Assistance.

5

2703.  Program.

6

2704.  Expiration.

7

§ 2701.  Definitions.

8

The following words and phrases when used in this chapter

9

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

10

context clearly indicates otherwise:

11

"Bi-fuel vehicle."  A motor vehicle equipped to be propelled

12

in part by compressed natural gas fuel and in part by diesel or

13

gasoline fuel.

14

"Company."  An entity doing business in this Commonwealth

15

which is subject to tax under Article III, IV or VI of the act

16

of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of

17

1971.

18

"Dedicated compressed natural gas vehicle."  A motor vehicle

19

that is produced by an original equipment manufacturer and

20

operates on 100% compressed natural gas fuel.

21

"Dedicated liquefied natural gas vehicle."  A motor vehicle

22

that is produced by an original equipment manufacturer and

23

operates on 90% or more liquefied natural gas fuel and 10% or

24

less on gasoline or diesel fuel.

25

"Department."  The Department of Environmental Protection of

26

the Commonwealth.

27

"Eligible applicant."  Any of the following:

28

(1)  A Commonwealth authority.

29

(2)  A municipal authority.

30

(3)  The Pennsylvania Turnpike Commission.

- 39 -

 


1

(4)  A local transportation organization.

2

(5)  A nonprofit entity.

3

(6)  A State-owned or State-related university.

4

(7)  A company.

5

"Eligible vehicles."  The following shall constitute an

6

eligible vehicle under this chapter:

7

(1)  Dedicated compressed natural gas vehicles that are

8

fleet vehicles and have a gross vehicle weight rating of at

9

least 14,000 pounds.

10

(2)  Dedicated liquefied natural gas vehicles that are

11

fleet vehicles and have a gross vehicle weight rating of at

12

least 14,000 pounds.

13

(3)  Bi-fuel vehicles that are fleet vehicles.

14

"Fleet vehicle."  A vehicle registered to an eligible

15

applicant.

16

"Incremental purchase cost."  The excess cost of a dedicated

17

compressed natural gas vehicle, a dedicated liquefied natural

18

gas vehicle or a bi-fuel vehicle over the price for a gasoline

19

or diesel fuel motor vehicle of a similar model. The term

20

includes the cost to retrofit a vehicle to operate as a

21

dedicated compressed natural gas vehicle, a dedicated liquefied

22

natural gas vehicle or a bi-fuel vehicle.

23

"Local transportation organization."  Any of the following:

24

(1)  A political subdivision.

25

(2)  A public transportation authority, port authority or

26

redevelopment authority, which is:

27

(i)  organized under:

28

(A)  the laws of this Commonwealth; or

29

(B)  an interstate compact; or

30

(ii)  empowered to render, contract to render or

- 40 -

 


1

assist in rendering transportation services in a limited

2

area in this Commonwealth even though it may also render

3

or assist in rendering transportation service in adjacent

4

states.

5

(3)  A nonprofit entity which directly or indirectly

6

provides public transportation service.

7

(4)  A nonprofit entity of public transportation

8

providers operating within this Commonwealth.

9

"Original equipment manufacturer" or "OEM."  The entity which

10

originally manufactures the natural gas engine or the vehicle

11

for sale.

12

"Start date."  The date on which an eligible applicant first

13

places in service, through purchase or contract, a new or

14

retrofitted new natural gas vehicle.

15

§ 2702.  Assistance.

16

(a)  Funding.--Grants under this chapter shall be made from

17

amounts deposited in the Marcellus Legacy Fund under section

18

2314(c.2) (relating to distribution of fee).

19

(b)  Grants.--

20

(1)  For fiscal year 2012-2013, the total amount of

21

grants approved under this chapter may not exceed

22

$10,000,000. Of that amount, $5,000,000 shall be allocated

23

exclusively for local transportation organizations. If the

24

total amount allocated to either the group of applications

25

exclusive of local transportation organizations or the group

26

of local transportation organization applicants is not

27

approved in fiscal year 2012-2013, the unused portion shall

28

be made available under paragraph (2).

29

(2)  For fiscal year 2013-2014:

30

(i)  The total amount of grants approved under this

- 41 -

 


1

chapter may not exceed the sum of:

2

(A)  $7,500,000; and

3

(B)  any unused portion available under paragraph

4

(1).

5

(ii)  Of the amount under subparagraph (i), 50% shall

6

be allocated exclusively for local transportation

7

organizations.

8

(iii)  If the total amount allocated to either the

9

group of applications exclusive of local transportation

10

organizations or the group of local transportation

11

organization applicants is not approved in fiscal year

12

2013-2014, the unused portion shall be made available

13

under paragraph (3).

14

(3)  For fiscal year 2014-2015, the total amount of

15

grants approved under this chapter may not exceed the sum of:

16

(i)  $2,500,000; and

17

(ii)  any unused portion available under paragraph

18

(2).

19

§ 2703.  Program.

20

(a)  Establishment and purpose.--The Natural Gas Energy

21

Development Program is established. The purpose of the program

22

is to fund projects under this chapter.

23

(b)  Eligible projects.--Funds transferred to the department

24

under Chapter 23 (relating to unconventional gas well fee) shall

25

be utilized for competitive grants to eligible applicants for

26

eligible projects as provided in this subsection. In order to be

27

eligible to receive a grant, an eligible applicant must provide

28

or demonstrate all of the following to the department:

29

(1)  A plan to convert five or more fleet vehicles into

30

eligible vehicles or purchase five or more eligible vehicles.

- 42 -

 


1

The plan must be financially viable within four years of the

2

start date and must include the construction and utilization

3

of a natural gas fueling station in this Commonwealth or the

4

utilization of an existing natural gas fueling station.

5

(2)  A statement of the projected usage of natural gas

6

stated in gasoline or diesel gallon equivalents accompanied

7

by the methodology utilized and how the project will increase

8

use of domestic natural gas in this Commonwealth.

9

(3)  The cost of the project.

10

(4)  The source and amount of any funds to be contributed

11

by the eligible applicant.

12

(5)  The intent to maintain operations in this

13

Commonwealth for a period of not less than six years from the

14

start date.

15

(6)  That all of the eligible vehicles purchased with the

16

grant will be registered in this Commonwealth.

17

(7)  The utilization of Federal funds on the project to

18

the extent that Federal funds are available.

19

(8)  Whether or not the project includes the utilization

20

of a natural gas fueling facility that is accessible to the

21

public.

22

(c)  Guidelines.--Funds under this section shall be used in

23

accordance with guidelines adopted by the department. The

24

guidelines shall do all of the following:

25

(1)  Restrict each grant for an eligible vehicle to cover

26

no more than 50% of the incremental purchase cost.

27

(2)  Limit the amount of the grant so that it shall not

28

exceed $25,000 for each fleet vehicle.

29

(3)  In the case of grants awarded for eligible vehicles

30

which are bi-fuel vehicles, provide for annual reporting to

- 43 -

 


1

the department by the eligible applicant demonstrating the

2

usage of compressed natural gas for a period not to exceed

3

four years after the start date.

4

(4)  Require each eligible vehicle for which a grant is

5

awarded to comply with all Federal and State safety

6

requirements, including rules and regulations promulgated by

7

the Environmental Protection Agency.

8

(d)  Application.--An applicant shall submit an application

9

including supporting information as required by the department.

10

(e)  Project review.--The department shall review and prepare

11

an assessment of each application and determine which projects

12

will best utilize and promote the use of domestically produced

13

natural gas in this Commonwealth.

14

(f)  Administrative costs.--No more than 1% of the funds

15

appropriated to the department shall be used for administrative

16

costs.

17

(g)  Report.--The department shall provide a report to the

18

chairman and minority chairman of the Appropriations Committee

19

of the Senate and the chairman and minority chairman of the

20

Appropriations Committee of the House of Representatives by

21

October 1, 2013, and each October 1 thereafter. The report shall

22

be maintained on the department's official Internet website and

23

shall include:

24

(1)  A list of all grants approved during the previous

25

fiscal year, including the amount of the grant and a

26

description of each approved project.

27

(2)  The estimated domestic energy benefits to date for

28

all projects receiving funding during the fiscal year and the

29

method used to determine estimated benefits.

30

Section 2704.  Expiration.

- 44 -

 


1

This chapter shall expire December 31, 2016.

2

PART III

3

UTILIZATION

4

Chapter

5

31.  (Reserved)

6

32.  Development

7

33.  Local Ordinances Relating to Oil and Gas Operation

8

35.  Responsibility for Fee

9

CHAPTER 31

10

(RESERVED)

11

CHAPTER 32

12

DEVELOPMENT

13

Subchapter

14

A.  Preliminary Provisions

15

B.  General Requirements

16

C.  Underground Gas Storage

17

D.  Eminent Domain

18

E.  Enforcement and Remedies

19

F.  Miscellaneous Provisions

20

SUBCHAPTER A

21

PRELIMINARY PROVISIONS

22

Sec.

23

3201.  Scope of chapter.

24

3202.  Declaration of purpose.

25

3203.  Definitions.

26

§ 3201.  Scope of chapter.

27

This chapter relates to oil and gas.

28

§ 3202.  Declaration of purpose.

29

The purposes of this chapter are to:

30

(1)  Permit optimal development of oil and gas resources

- 45 -

 


1

of this Commonwealth consistent with protection of the

2

health, safety, environment and property of Pennsylvania

3

citizens.

4

(2)  Protect the safety of personnel and facilities

5

employed in coal mining or exploration, development, storage

6

and production of natural gas or oil.

7

(3)  Protect the safety and property rights of persons

8

residing in areas where mining, exploration, development,

9

storage or production occurs.

10

(4)  Protect the natural resources, environmental rights

11

and values secured by the Constitution of Pennsylvania.

12

§ 3203.  Definitions.

13

The following words and phrases when used in this chapter

14

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

15

context clearly indicates otherwise:

16

"Abandoned well."  Any of the following:

17

(1)  A well:

18

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

19

inject any gas, petroleum or other liquid within the

20

preceding 12 months;

21

(ii)  for which equipment necessary for production,

22

extraction or injection has been removed; or

23

(iii)  considered dry and not equipped for production

24

within 60 days after drilling, redrilling or deepening.

25

(2)  The term does not include wells granted inactive

26

status.

27

"Additive."  A hydraulic fracturing chemical.

28

"Alteration."  An operation which changes the physical

29

characteristics of a well bore, including stimulation or

30

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

- 46 -

 


1

this chapter only, the term does not include:

2

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

3

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

4

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

5

complies with regulations promulgated under this chapter,

6

except that this exclusion does not apply:

7

(i)  to production casings in coal areas when the

8

production casings are also the coal protection casings;

9

or

10

(ii)  when the method of repairing or replacing the

11

casing would affect the coal protection casing.

12

(2)  Stimulation of a well.

13

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

14

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

15

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

16

which persons live or customarily work.

17

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

18

wells drilled for natural gas or petroleum.

19

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

20

(1)  Hydraulic cement properly mixed with water only.

21

(2)  A mixture of materials adequate for bonding or

22

sealing of well bores as approved by regulations promulgated

23

under this chapter.

24

"Chemical."  Any element, chemical compound or mixture of

25

elements or compounds that has its own specific name or

26

identity, such as a chemical abstract service number.

27

"Chemical Disclosure Registry."  The chemical registry

28

website developed by the Ground Water Protection Council and the

29

Interstate Oil and Gas Compact Commission or their successor

30

organizations.

- 47 -

 


1

"Chemical family."  A group of chemicals that share similar

2

chemical properties and have a common general name.

3

"Coal mine."  Any of the following:

4

(1)  Operations in a coal seam, including excavated

5

portions, abandoned portions and places actually being

6

worked.

7

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

8

other ways and openings, including those which are in the

9

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

10

facilities connected with them below the surface.

11

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

12

operate a coal mine as an owner or lessee.

13

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

14

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

15

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

16

"Department."  The Department of Environmental Protection of

17

the Commonwealth.

18

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

19

deepening of an existing well.

20

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

21

recognized hydrologic cycle which occupies the pore spaces and

22

fractures of saturated subsurface materials.

23

"Gas."  Any of the following:

24

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

25

produced in a natural state from the earth and maintains a

26

gaseous or rarified state at standard temperature of 60

27

degrees Fahrenheit and pressure 14.7 PSIA.

28

(2)  Any manufactured gas, by-product gas or mixture of

29

gases or natural gas liquids.

30

"Health professional."  A physician, physician assistant,

- 48 -

 


1

nurse practitioner, registered nurse or emergency medical

2

technician licensed by the Commonwealth.

3

"Hydraulic fracturing chemical."  Any chemical substance or

4

combination of substances, including any chemicals and

5

proppants, that is intentionally added to a base fluid for

6

purposes of preparing a stimulation fluid for use in hydraulic

7

fracturing.

8

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

9

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

10

device or by injecting bentonitic mud or other equally nonporous

11

material into the well.

12

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

13

horizontal plane.

14

"Natural gas liquids."  Hydrocarbons in natural gas which are

15

separated from the gas as liquids through the process of

16

absorption, condensation, adsorption or other methods in gas

17

processing of cycling plants.

18

"Oil."  Hydrocarbons in liquid form at standard temperature

19

of 60 degrees Fahrenheit and pressure 14.7 PSIA, also referred

20

to as petroleum.

21

"Operating coal mine."  Any of the following:

22

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

23

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

24

months immediately preceding the date its status is put in

25

question, including contiguous worked-out or abandoned coal

26

mines to which it is connected underground.

27

(2)  An underground coal mine to be established or

28

reestablished under paragraph (1).

29

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

30

"Operator."  A well operator.

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1

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

2

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

3

operator and from which the present owner, operator or lessee

4

has received no economic benefit other than as a landowner or

5

recipient of a royalty interest from the well.

6

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

7

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

8

assigned to the coal mine under an underground mine permit

9

issued by the Department of Environmental Protection.

10

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

11

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

12

orphan wells, except where the Department of Environmental

13

Protection determines a prior owner or operator benefited from

14

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

15

requirements).

16

"Person."  An individual, association, partnership,

17

corporation, political subdivision or agency of the Federal

18

Government, State government or other legal entity.

19

"Petroleum."  Hydrocarbons in liquid form at standard

20

temperature of 60 degrees Fahrenheit and pressure 14.7 PSIA,

21

also referred to as oil.

22

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

23

mine workings or a mined-out area.

24

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

25

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

26

"Reservoir protective area."  The area surrounding a storage

27

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

28

reservoir boundary, unless an alternate area has been designated

29

by the Department of Environmental Protection, which is deemed

30

reasonably necessary to afford protection to the reservoir,

- 50 -

 


1

under a conference held in accordance with section 3251

2

(relating to conferences).

3

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

4

remaining after development mining has been completed in that

5

section of a coal mine.

6

"Secretary."  The Secretary of Environmental Protection of

7

the Commonwealth.

8

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

9

operate a storage reservoir as an owner or lessee.

10

"Storage reservoir."  That portion of a subsurface geological

11

stratum into which gas is or may be injected for storage

12

purposes or to test suitability of the stratum for storage.

13

"Unconventional formation."  A geological shale formation

14

existing below the base of the Elk Sandstone or its geologic

15

equivalent stratigraphic interval where natural gas generally

16

cannot be produced at economic flow rates or in economic volumes

17

except by vertical or horizontal well bores stimulated by

18

hydraulic fracture treatments or by using multilateral well

19

bores or other techniques to expose more of the formation to the

20

well bore.

21

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

22

for the purpose of or to be used for the production of natural

23

gas from an unconventional formation.

24

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

25

completing a well in an unconventional formation that

26

demonstrates that the withdrawal and use of water sources

27

protects those sources as required by law and protects public

28

health, safety and welfare.

29

"Water purveyor."  Any of the following:

30

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

- 51 -

 


1

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

2

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

3

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

4

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

5

"Water source."

6

(1)  Any of the following:

7

(i)  Waters of this Commonwealth.

8

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

9

purveyor.

10

(iii)  Mine pools and discharges.

11

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

12

completing a well in an unconventional formation.

13

(2)  The term does not include flowback or production

14

waters or other fluids:

15

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

16

in an unconventional formation; and

17

(ii)  which do not discharge into waters of this

18

Commonwealth.

19

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

20

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

21

petroleum or another liquid related to oil or gas production or

22

storage, including brine disposal, but excluding a bore hole

23

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

24

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

25

used for:

26

(1)  Systems of monitoring, producing or extracting gas

27

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

28

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

29

known as the Solid Waste Management Act, which does not

30

penetrate a workable coal seam.

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1

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

2

(i)  used to vent methane to the outside atmosphere

3

from an operating coal mine; regulated as part of the

4

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

5

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

6

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

7

Mining Conservation and Reclamation Act; and drilled by

8

the operator of the operating coal mine for the purpose

9

of increased safety; or

10

(ii)  used to vent methane to the outside atmosphere

11

under a federally funded or State-funded abandoned mine

12

reclamation project.

13

"Well control emergency."  An incident during drilling,

14

operation, workover or completion that, as determined by the

15

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

16

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

17

blowout, fire and explosion.

18

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

19

a well control emergency with a current certification from a

20

well control course accredited by the International Association

21

of Drilling Contractors or other organization approved by the

22

department.

23

"Well operator."  Any of the following:

24

(1)  The person designated as operator or well operator

25

on the permit application or well registration.

26

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

27

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

28

or reconditions a well with the purpose of production from

29

the well.

30

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

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1

storage of gas, a storage operator.

2

"Wetland."  Areas inundated or saturated by surface or

3

groundwater at a frequency and duration sufficient to support,

4

and which normally support, a prevalence of vegetation typically

5

adapted for life in saturated soil conditions, including swamps,

6

marshes, bogs and similar areas.

7

"Workable coal seams."  A coal seam which:

8

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

9

under this chapter by underground methods; or

10

(2)  in the judgment of the Department of Environmental

11

Protection, can reasonably be expected to be mined by

12

underground methods.

13

SUBCHAPTER B

14

GENERAL REQUIREMENTS

15

Sec.

16

3211.  Well permits.

17

3212.  Permit objections.

18

3212.1.  Comments by municipalities and storage operators.

19

3213.  Well registration and identification.

20

3214.  Inactive status.

21

3215.  Well location restrictions.

22

3216.  Well site restoration.

23

3217.  Protection of fresh groundwater and casing requirements.

24

3218.  Protection of water supplies.

25

3218.1.  Notification to public drinking water systems.

26

3218.2.  Containment for unconventional wells.

27

3218.3.  Transportation records regarding wastewater fluids.

28

3218.4.  Corrosion control requirements.

29

3218.5.  Gathering lines.

30

3219.  Use of safety devices.

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1

3219.1.  Well control emergency response.

2

3220.  Plugging requirements.

3

3221.  Alternative methods.

4

3222.  Well reporting requirements.

5

3222.1.  Hydraulic fracturing chemical disclosure requirements.

6

3223.  Notification and effect of well transfer.

7

3224.  Coal operator responsibilities.

8

3225.  Bonding.

9

3226.  Oil and Gas Technical Advisory Board.

10

3227.  Air containment emissions.

11

§ 3211.  Well permits.

12

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

13

except for alterations which satisfy the requirements of

14

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

15

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

16

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

17

of the permit shall be kept at the well site during preparation

18

and construction of the well site or access road during drilling

19

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

20

a permit to redrill a nonproducing well if the redrilling:

21

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

22

from the department authorizing cleaning out and plugging or

23

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

24

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

25

and Gas Resource Coordination Act; and

26

(2)  is incidental to a plugging or replugging operation

27

and the well is plugged within 15 days of redrilling.

28

(b)  Plat.--

29

(1)  The permit application shall be accompanied by a

30

plat prepared by a competent engineer or a competent

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1

surveyor, on forms furnished by the department, showing the

2

political subdivision and county in which the tract of land

3

upon which the well to be drilled, operated or altered is

4

located; a list of municipalities adjacent to the well site;

5

the name of the surface landowner of record and lessor; the

6

name of all surface landowners and water purveyors whose

7

water supplies are within 1,000 feet of the proposed well

8

location or, in the case of an unconventional well, within

9

3,000 feet from the vertical well bore; the name of the owner

10

of record or operator of all known underlying workable coal

11

seams; the acreage in the tract to be drilled; the proposed

12

location of the well determined by survey, courses and

13

distances of the location from two or more permanent

14

identifiable points or landmarks on the tract boundary

15

corners; the proposed angle and direction of the well if the

16

well is to be deviated substantially from a vertical course;

17

the number or other identification to be given the well; the

18

workable coal seams underlying the tract of land upon which

19

the well is to be drilled or altered and which shall be cased

20

off under section 3217 (relating to protection of fresh

21

groundwater and casing requirements); and any other

22

information needed by the department to administer this

23

chapter.

24

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

25

of the plat to the surface landowner; the municipality in

26

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

27

located; each municipality within 3,000 feet of the proposed

28

unconventional vertical well bore; the municipalities

29

adjacent to the well; all surface landowners and water

30

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

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1

proposed well location or, in the case of an unconventional

2

well, within 3,000 feet of the proposed unconventional

3

vertical well bore; storage operators within 3,000 feet of

4

the proposed unconventional vertical well bore; the owner and

5

lessee of any coal seams; and each coal operator required to

6

be identified on the well permit application.

7

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

8

notification with the well permit application. Notification of

9

surface owners shall be performed by sending notice to those

10

persons to whom the tax notices for the surface property are

11

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

12

which the property is located. Notification of surface

13

landowners or water purveyors shall be on forms, and in a manner

14

prescribed by the department, sufficient to identify the rights

15

afforded those persons under section 3218 (relating to

16

protection of water supplies) and to advise them of the

17

advantages of taking their own predrilling or prealteration

18

survey.

19

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

20

written approval of the proposed well location by the surface

21

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

22

underlying the proposed well location and no objections are

23

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

24

approval has been submitted and no objections are made to the

25

proposed well location within 15 days from receipt of notice by

26

the department, the surface landowner or any coal operator,

27

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

28

a permanent record of the well location, subject to inspection

29

at any time by any interested person. The application form to

30

operate an abandoned or orphan well shall provide notification

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1

to the applicant of its responsibilities to plug the well upon

2

abandonment.

3

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

4

corporation, partnership or person that is not a resident of

5

this Commonwealth, the applicant shall designate the name and

6

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

7

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

8

Commonwealth upon whom notices, orders or other communications

9

issued under this chapter may be served and upon whom process

10

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

11

under this section shall, within five days after termination of

12

the designation, notify the department of the termination and

13

designate a new agent.

14

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

15

accompanied by a permit fee, established by the Environmental

16

Quality Board, which bears a reasonable relationship to the cost

17

of administering this chapter.

18

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

19

within 45 days of submission of a permit application unless the

20

department denies the permit application for one or more of the

21

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

22

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

23

for cause shown upon notification to the applicant of the

24

reasons for the extension. The department may impose permit

25

terms and conditions necessary to assure compliance with this

26

chapter or other laws administered by the department.

27

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

28

for any of the following reasons:

29

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

30

violation of any of this chapter or issuance of the permit

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1

would result in a violation of this chapter or other

2

applicable law.

3

(2)  The permit application is incomplete.

4

(3)  Unresolved objections to the well location by coal

5

mine owner or operator remain.

6

(4)  The requirements of section 3225 (relating to

7

bonding) have not been met.

8

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

9

parent or subsidiary corporation of the applicant, is in

10

continuing violation of this chapter, any other statute

11

administered by the department, any regulation promulgated

12

under this chapter or a statute administered by the

13

department or any plan approval, permit or order of the

14

department, unless the violation is being corrected to the

15

satisfaction of the department. The right of the department

16

to deny a permit under this paragraph shall not take effect

17

until the department has taken a final action on the

18

violations and:

19

(i)  the applicant has not appealed the final action

20

in accordance with the act of July 13, 1988 (P.L.530,

21

No.94), known as the Environmental Hearing Board Act; or

22

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

23

been issued.

24

(6)  The applicant failed to pay the fee or file a report

25

under section 2303(c) (relating to administration), unless an

26

appeal is pending. The commission shall notify the department

27

of any applicant who has failed to pay the fee or file a

28

report and who does not have an appeal pending.

29

(f)  Drilling.--

30

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

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1

drill, operate or alter at the exact location shown on the

2

plat after providing the department, the surface landowner

3

and the local political subdivision in which the well is to

4

be located 24 hours' notice of the date that drilling will

5

commence. Notification to the department must be provided

6

electronically. If there is a break in drilling of 30 days or

7

more, the well operator shall notify the department at least

8

24 hours prior to the resumption of drilling.

9

(2)  The unconventional well operator shall provide the

10

department 24 hours' notice prior to cementing all casing

11

strings, conducting pressure tests of the production casing,

12

stimulation and abandoning or plugging an unconventional

13

well.

14

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

15

drilled as part of the same development project, only the

16

first well of the project need be located by survey.

17

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

18

a manner prescribed by regulation.

19

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

20

well operator shall notify the department and provide

21

reasonable notice of the date on which drilling will

22

commence.

23

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

24

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

25

operator encounters conditions of a nature which renders

26

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

27

more hazardous than usual, the well operator, upon verbal

28

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

29

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

30

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

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1

location of the new bore hole does not violate section 3215

2

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

3

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

4

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

5

location complies with existing laws, regulations and spacing

6

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

7

nearest lease boundary.

8

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

9

hole, the well operator shall file with the department a

10

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

11

completion report, a plugging certificate for the original

12

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

13

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

14

amended plat to the surface landowner identified on the well

15

permit application within ten days of commencement of the new

16

well bore.

17

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

18

address and telephone number shall be conspicuously posted at

19

the drilling site during site preparation, including the

20

construction of access roads, construction of the well site and

21

during drilling, operating or alteration of the well.

22

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

23

number issued by the department in a legible, visible and

24

permanent manner on the well upon completion.

25

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

26

under this chapter shall expire one year after issuance unless

27

operations for drilling the well are commenced within the period

28

and pursued with due diligence or unless the permit is renewed

29

in accordance with regulations of the department. If drilling is

30

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

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1

remain in force until the well is plugged in accordance with

2

section 3220 (relating to plugging requirements) or the permit

3

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

4

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

5

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

6

accordance with section 3220.

7

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

8

establish by regulation certain categories of alterations of

9

permitted or registered wells for which permitting requirements

10

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

11

proposes to conduct the alteration activity shall first obtain a

12

permit or registration modification from the department. The

13

Environmental Quality Board shall promulgate regulations as to

14

the requirements for modifications.

15

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

16

section or registration issued under section 3213 (relating to

17

well registration and identification) may be transferred without

18

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

19

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

20

the department. The department shall approve or deny a transfer

21

request within 45 days of receipt of a complete and accurate

22

application. The department may deny a request only for reasons

23

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

24

request shall permanently transfer responsibility to plug the

25

well under section 3220 to the recipient of the transferred

26

permit or registration.

27

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

28

establish by regulation requirements for the permitting and

29

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

30

conduct abandoned or orphan well operations shall first obtain a

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1

permit to operate an abandoned or orphan well.

2

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

3

management:

4

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

5

sources within this Commonwealth for the drilling or

6

hydraulic fracture stimulation of any natural gas well

7

completed in an unconventional gas formation, whether on or

8

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

9

accordance with a water management plan approved by the

10

department.

11

(2)  The department shall review and approve water

12

management plans based upon a determination that the proposed

13

withdrawal, when operated in accordance with the proposed

14

withdrawal operating conditions set forth in the plan,

15

including conditions relating to quantity, withdrawal rate

16

and timing and any passby flow conditions, will:

17

(i)  not adversely affect the quantity or quality of

18

water available to other users of the same water sources;

19

(ii)  protect and maintain the designated and

20

existing uses of water sources;

21

(iii)  not cause adverse impact to water quality in

22

the watershed considered as a whole; and

23

(iv)  include a reuse plan for fluids that will be

24

used to hydraulically fracture wells.

25

(3)  As to criteria:

26

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

27

presumed to be achieved if the proposed water withdrawal

28

has been approved by and is operated in accordance with

29

conditions established by the Susquehanna River Basin

30

Commission, the Delaware River Basin Commission or the

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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 and storage operators.

15

(a)  Municipalities.--The municipality where the tract of

16

land upon which the unconventional well to be drilled is located

17

may submit written comments to the department describing local

18

conditions or circumstances which the municipality has

19

determined should be considered by the department in rendering

20

its determination on the unconventional well permit. A comment

21

under this subsection must be submitted to the department within

22

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

23

(relating to well permits). The municipality shall

24

simultaneously forward a copy of its comments to the permit

25

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

26

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

27

written response must be submitted to the department within ten

28

days of receipt of the comments of the municipality.

29

(a.1)  Storage operators.--A storage operator located within

30

3,000 feet of a proposed unconventional vertical well bore may

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1

submit written comments to the department describing

2

circumstances which the storage operator has determined should

3

be considered by the department in rendering its determination

4

on the unconventional well permit. A comment under this

5

subsection must be submitted to the department within 15 days of

6

the receipt of the plat under section 3211(b). The storage

7

operator shall simultaneously forward a copy of its comments to

8

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

9

the plat under section 3211(b), who may submit a written

10

response. A written response must be submitted to the department

11

within ten days of receipt of the comments of the storage

12

operator.

13

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

14

under subsections (a) and (a.1) may be considered by the

15

department in accordance with section 3215(d) (relating to well

16

location restrictions).

17

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

18

this section shall not extend the time period for the issuance

19

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

20

chapter.

21

§ 3213.  Well registration and identification.

22

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

23

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

24

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

25

which no drilling permit has been issued by the department,

26

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

27

operator who registers under this subsection and a well owner or

28

operator who has previously registered a well under this chapter

29

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

30

property which the well owner or operator owns or leases and

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1

request approval from the department for classification of the

2

well as an orphan well. Information regarding wells to be

3

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

4

manner prescribed by the department, and shall include:

5

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

6

the well operator is a corporation, partnership or person

7

nonresident of this Commonwealth, the name and address of an

8

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

9

other communications issued under this chapter may be served.

10

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

11

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

12

topographic map or any other location description sufficient

13

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

14

(3)  The approximate date of drilling and completing the

15

well, its approximate depth and producing horizons, well

16

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

17

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

18

bonding or other evidence of financial security submitted by

19

the well operator and deemed appropriate by the department

20

and satisfying the requirements of section 3225 (relating to

21

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

22

financial security shall be required for identification of an

23

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

24

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

25

years to comply with the provisions of this paragraph.

26

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

27

registration fee of $250 for multiple well registration

28

applications submitted simultaneously. The registration fee

29

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

30

charged for identification of an orphan well.

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1

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

2

operator or other person discovering an abandoned well on

3

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

4

other person shall identify it to the department within 60 days

5

of discovery and advise the department that he is seeking

6

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

7

required for identification.

8

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

9

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

10

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

11

The department may adopt and promulgate guidelines designed to

12

ensure a fair implementation of this section, recognizing the

13

practical difficulties of locating unpermitted wells and

14

complying with the reporting requirements of this chapter.

15

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

16

shall install the registration number issued by the department

17

in a legible, conspicuous and permanent manner on the well

18

within 60 days of issuance.

19

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

20

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

21

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

22

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

23

control over, the drilling or extraction operation of the

24

abandoned well.

25

§ 3214.  Inactive status.

26

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

27

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

28

or registered well, if the following requirements are met:

29

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

30

damage to the producing zone or contamination of fresh water

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1

or other natural resources or surface leakage of any

2

substance;

3

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

4

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

5

adequate to protect freshwater aquifers, unless the

6

department determines the well poses a threat to the health

7

and safety of persons or property or to the environment;

8

(3)  the operator anticipates construction of a pipeline

9

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

10

gas storage, approved disposal or other appropriate uses

11

related to oil and gas well production; and

12

(4)  the applicant satisfies the bonding requirements of

13

sections 3213 (relating to well registration and

14

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

15

the department may require additional financial security for

16

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

17

bonding under section 3225(d).

18

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

19

inactive status shall be responsible for monitoring the

20

mechanical integrity of the well to ensure that the requirements

21

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

22

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

23

prescribed by departmental regulations.

24

(c)  (Reserved).

25

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

26

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

27

3220 (relating to plugging requirements) or returned to active

28

status within five years of the date inactive status was

29

granted, unless the owner or operator applies for an extension

30

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

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1

if the department determines that the owner or operator has

2

demonstrated ability to continue meeting the requirements of

3

this section and the owner or operator certifies that the well

4

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

5

owner or operator who has been granted inactive status for a

6

well which is returned to active status prior to expiration of

7

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

8

the department that the well has been returned to active status

9

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

10

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

11

operator may make application to return the well to inactive

12

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

13

basis if the department determines that the owner or operator

14

has demonstrated an ability to continue meeting the requirements

15

of this section and the owner or operator certifies that the

16

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

17

The department shall approve or deny an application to extend a

18

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

19

within 60 days of receipt of the application, and the

20

application shall not be unreasonably denied. If the department

21

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

22

the inactive status shall continue until the department has made

23

a determination on the request. If the department denies an

24

application to extend the period of inactive status or to return

25

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

26

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

27

Environmental Hearing Board within 30 days of receipt of the

28

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

29

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

30

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

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1

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

2

during the period of the appeal.

3

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

4

revoke inactive status and order immediate plugging of a well if

5

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

6

promulgated under this chapter or if the owner or operator

7

demonstrates inability to perform obligations under this chapter

8

or becomes financially insolvent, or upon receipt by the

9

department of notice of bankruptcy proceedings by the permittee.

10

§ 3215.  Well location restrictions.

11

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

12

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

13

horizontally from the vertical well bore to a building or water

14

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

15

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

16

consent of the owner of the building or water well.

17

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

18

measured horizontally from the vertical well bore to any

19

existing water well, surface water intake, reservoir or other

20

water supply extraction point used by a water purveyor without

21

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

22

obtained and the distance restriction would deprive the owner of

23

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

24

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

25

be granted a variance from the distance restriction upon

26

submission of a plan identifying the additional measures,

27

facilities or practices as prescribed by the department to be

28

employed during well site construction, drilling and operations.

29

The variance shall include additional terms and conditions

30

required by the department to ensure safety and protection of

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1

affected persons and property, including insurance, bonding,

2

indemnification and technical requirements. Notwithstanding

3

section 3211(e), if a variance request has been submitted, the

4

department may extend its permit review period for up to 15 days

5

upon notification to the applicant of the reasons for the

6

extension.

7

(b)  Limitation.--

8

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

9

100 feet or, in the case of an unconventional well, 300 feet

10

from the vertical well bore or 100 feet from the edge of the

11

well site, whichever is greater, measured horizontally from

12

any solid blue lined stream, spring or body of water as

13

identified on the most current 7 1/2 minute topographic

14

quadrangle map of the United States Geological Survey.

15

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

16

unconventional well site must maintain a 100-foot setback

17

from the edge of any solid blue lined stream, spring or body

18

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

19

topographic quadrangle map of the United States Geological

20

Survey.

21

(3)  No unconventional well may be drilled within 300

22

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

23

edge of the disturbed area of any well site must maintain a

24

100-foot setback from the boundary of the wetlands.

25

(4)  The department shall waive the distance restrictions

26

upon submission of a plan identifying additional measures,

27

facilities or practices to be employed during well site

28

construction, drilling and operations necessary to protect

29

the waters of this Commonwealth. The waiver, if granted,

30

shall include additional terms and conditions required by the

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1

department necessary to protect the waters of this

2

Commonwealth. Notwithstanding section 3211(e), if a waiver

3

request has been submitted, the department may extend its

4

permit review period for up to 15 days upon notification to

5

the applicant of the reasons for the extension.

6

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

7

department shall consider the impact of the proposed well on

8

public resources, including, but not limited to:

9

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

10

wildlife areas.

11

(2)  National or State scenic rivers.

12

(3)  National natural landmarks.

13

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

14

other critical communities.

15

(5)  Historical and archaeological sites listed on the

16

Federal or State list of historic places.

17

(6)  Sources used for public drinking supplies in

18

accordance with subsection (b).

19

(d)  Consideration of municipality and storage operator

20

comments.--The department may consider the comments submitted

21

under section 3212.1 (relating to comments by municipalities and

22

storage operators) in making a determination on a well permit.

23

Notwithstanding any other law, no municipality or storage

24

operator shall have a right of appeal or other form of review

25

from the department's decision.

26

(d.1)  Additional protective measures.--The department may

27

establish additional protective measures for storage of

28

hazardous chemicals and materials intended to be used, or that

29

have been used, on an unconventional well drilling site within

30

750 feet of a solid blue lined stream, spring or body of water

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1

identified on the most current 7 1/2 minute topographic

2

quadrangle map of the United States Geological Survey.

3

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

4

shall develop by regulation criteria:

5

(1)  For the department to utilize for conditioning a

6

well permit based on its impact to the public resources

7

identified under subsection (c) and for ensuring optimal

8

development of oil and gas resources and respecting property

9

rights of oil and gas owners.

10

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

11

permit containing conditions imposed by the department. The

12

regulations shall also provide that the department has the

13

burden of proving that the conditions were necessary to

14

protect against a probable harmful impact of the public

15

resources.

16

(f)  Floodplains.--

17

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

18

any floodplain if the well site will have:

19

(i)  a pit or impoundment containing drilling

20

cuttings, flowback water, produced water or hazardous

21

materials, chemicals or wastes within the floodplain; or

22

(ii)  a tank containing hazardous materials,

23

chemicals, condensate, wastes, flowback or produced water

24

within the floodway.

25

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

26

restriction waiver if the well site will have a tank

27

containing condensate, flowback or produced water within the

28

flood fringe unless all the tanks have adequate floodproofing

29

in accordance with the National Flood Insurance Program

30

standards and accepted engineering practices.

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1

(3)  The department may waive restrictions upon

2

submission of a plan that shall identify the additional

3

measures, facilities or practices to be employed during well

4

site construction, drilling and operations. The waiver, if

5

granted, shall impose permit conditions necessary to protect

6

the waters of this Commonwealth.

7

(4)  Best practices as determined by the department to

8

ensure the protection of the waters of this Commonwealth must

9

be utilized for the storage and handling of all water,

10

chemicals, fuels, hazardous materials or solid waste on a

11

well site located in a floodplain. The department may request

12

that the well site operator submit a plan for the storage and

13

handling of the materials for approval by the department and

14

may impose conditions or amend permits to include permit

15

conditions as are necessary to protect the environment,

16

public health and safety.

17

(5)  Unless otherwise specified by the department, the

18

boundary of the floodplain shall be as indicated on maps and

19

flood insurance studies provided by the Federal Emergency

20

Management Agency. In an area where no Federal Emergency

21

Management Agency maps or studies have defined the boundary

22

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

23

contrary, the floodplain shall extend from:

24

(i)  any perennial stream up to 100 feet horizontally

25

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

26

(ii)  from any intermittent stream up to 50 feet

27

horizontally from the top of the bank of the intermittent

28

stream.

29

(g)  Applicability.--

30

(1)  This section shall not apply to a well proposed to

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1

be drilled on an existing well site for which at least one

2

well permit has been issued prior to the effective date of

3

this section.

4

(2)  Nothing in this section shall alter or abridge the

5

terms of any contract, mortgage or other agreement entered

6

into prior to the effective date of this section.

7

§ 3216.  Well site restoration.

8

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

9

shall restore the land surface within the area disturbed in

10

siting, drilling, completing and producing the well.

11

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

12

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

13

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

14

erosion and sedimentation control measures shall be implemented

15

in accordance with an erosion and sedimentation control plan

16

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

17

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

18

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

19

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

20

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

21

used to contain produced fluids or industrial wastes and remove

22

all drilling supplies and equipment not needed for production.

23

Drilling supplies and equipment not needed for production may be

24

stored on the well site if express written consent of the

25

surface landowner is obtained.

26

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

27

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

28

all production or storage facilities, supplies and equipment and

29

restore the well site.

30

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

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1

this chapter or in regulations promulgated under this chapter

2

shall also comply with all applicable provisions of The Clean

3

Streams Law.

4

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

5

as required in this chapter or regulations promulgated under

6

this chapter constitutes a violation of this chapter.

7

(g)  Extension.--

8

(1)  The restoration period may be extended by the

9

department for an additional period of time not to exceed two

10

years upon demonstration by the well owner or operator that:

11

(i)  the extension will result in less earth

12

disturbance, increased water reuse or more efficient

13

development of the resources; or

14

(ii)  site restoration cannot be achieved due to

15

adverse weather conditions or a lack of essential fuel,

16

equipment or labor.

17

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

18

of the following:

19

(i)  Include a site restoration plan that shall

20

provide for:

21

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

22

to contain produced fluids or industrial wastes;

23

(B)  the removal of all drilling supplies and

24

equipment not needed for production;

25

(C)  the stabilization of the well site that

26

shall include interim postconstruction storm water

27

management best management practices; or

28

(D)  other measures to be employed to minimize

29

accelerated erosion and sedimentation in accordance

30

with The Clean Streams Law.

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1

(ii)  Provide for returning the portions of the site

2

not occupied by production facilities or equipment to

3

approximate original contours and making them capable of

4

supporting the uses that existed prior to drilling the

5

well.

6

(3)  The department may condition an extension under this

7

subsection as is necessary in accordance with The Clean

8

Streams Law.

9

(h)  Definition.--As used in this section, the term "well

10

site" means areas occupied by all equipment or facilities

11

necessary for or incidental to drilling, production or plugging

12

a well.

13

§ 3217.  Protection of fresh groundwater and casing

14

requirements.

15

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

16

groundwater, well operators shall control and dispose of brines

17

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

18

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

19

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

20

regulation promulgated under The Clean Streams Law.

21

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

22

sources of fresh groundwater and pollution or diminution of

23

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

24

and permanently cemented in each well drilled through the fresh

25

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

26

regulation by the department.

27

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

28

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

29

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

30

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

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1

been removed in a manner prescribed by regulation of the

2

department. The department and the coal operator, owner or

3

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

4

commencement of work protecting the mine.

5

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

6

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

7

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

8

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

9

the points and in the manner prescribed by regulation to exclude

10

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

11

naturally in the seam itself, and to enable monitoring the

12

integrity of the production casing.

13

§ 3218.  Protection of water supplies.

14

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

15

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

16

private water supply by pollution or diminution shall restore or

17

replace the affected supply with an alternate source of water

18

adequate in quantity or quality for the purposes served by the

19

supply. The department shall ensure that the quality of a

20

restored or replaced water supply meets the standards

21

established under the act of May 1, 1984 (P.L.206, No.43), known

22

as the Pennsylvania Safe Drinking Water Act, or is comparable to

23

the quality of the water supply before it was affected by the

24

operator if that water supply exceeded those standards. The

25

Environmental Quality Board shall promulgate regulations

26

necessary to meet the requirements of this subsection.

27

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

28

water purveyor suffering pollution or diminution of a water

29

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

30

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

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1

an investigation be conducted. Within ten days of notification,

2

the department shall investigate the claim and make a

3

determination within 45 days following notification. If the

4

department finds that the pollution or diminution was caused by

5

drilling, alteration or operation activities or if it presumes

6

the well operator responsible for pollution under subsection

7

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

8

necessary to assure compliance with subsection (a), including

9

orders requiring temporary replacement of a water supply where

10

it is determined that pollution or diminution may be of limited

11

duration.

12

(b.1)  (Reserved).

13

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

14

single Statewide toll-free telephone number that persons may use

15

to report cases of water contamination which may be associated

16

with the development of oil and gas resources. The Statewide

17

toll-free telephone number shall be provided in a conspicuous

18

manner in the notification required under section 3211(b)

19

(relating to well permits) and on the department's Internet

20

website.

21

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

22

administrative responses to calls received on the Statewide

23

toll-free number for water contamination.

24

(b.4)  Website.--The department shall publish, on its

25

Internet website, lists of confirmed cases of subterranean water

26

supply contamination that result from hydraulic fracturing.

27

(b.5)  Facility operation qualifications.--The department

28

shall ensure that a facility which seeks a National Pollutant

29

Discharge Elimination System permit for the purposes of treating

30

and discharging wastewater originating from oil and gas

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1

activities into waters of this Commonwealth is operated by a

2

competent and qualified individual.

3

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

4

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

5

responsible for pollution of a water supply if:

6

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

7

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

8

or gas well; and

9

(ii)  the pollution occurred within six months after

10

completion of drilling or alteration of the oil or gas

11

well; or

12

(2)  in the case of an unconventional well:

13

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

14

unconventional vertical well bore; and

15

(ii)  the pollution occurred within 12 months of the

16

later of completion, drilling, stimulation or alteration

17

of the unconventional well.

18

(c.1)  Requirement.--If the affected water supply is within

19

the rebuttable presumption area as provided in subsection (c)

20

and the rebuttable presumption applies, the operator shall

21

provide a temporary water supply if the water user is without a

22

readily available alternative source of water. The temporary

23

water supply provided under this subsection shall be adequate in

24

quantity and quality for the purposes served by the supply.

25

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

26

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

27

the following:

28

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

29

(i)  the pollution existed prior to the drilling or

30

alteration activity as determined by a predrilling or

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1

prealteration survey;

2

(ii)  the landowner or water purveyor refused to

3

allow the operator access to conduct a predrilling or

4

prealteration survey;

5

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

6

the well;

7

(iv)  the pollution occurred more than six months

8

after completion of drilling or alteration activities;

9

and

10

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

11

other than the drilling or alteration activity; or

12

(2)  in the case of an unconventional well:

13

(i)  the pollution existed prior to the drilling,

14

stimulation or alteration activity as determined by a

15

predrilling or prealteration survey;

16

(ii)  the landowner or water purveyor refused to

17

allow the operator access to conduct a predrilling or

18

prealteration survey;

19

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

20

the unconventional vertical well bore;

21

(iv)  the pollution occurred more than 12 months

22

after completion of drilling or alteration activities; or

23

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

24

other than the drilling or alteration activity.

25

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

26

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

27

retain an independent certified laboratory to conduct a

28

predrilling or prealteration survey of the water supply. A copy

29

of survey results shall be submitted to the department and the

30

landowner or water purveyor in the manner prescribed by the

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1

department.

2

(e.1)  Notice.--An operator of an unconventional well must

3

provide written notice to the landowner or water purveyor

4

indicating that the presumption established under subsection (c)

5

may be void if the landowner or water purveyor refused to allow

6

the operator access to conduct a predrilling or prealteration

7

survey. Proof of written notice to the landowner or water

8

purveyor shall be provided to the department for the operator to

9

retain the protections under subsection (d)(2)(ii). Proof of

10

written notice shall be presumed if provided in accordance with

11

section 3212(a) (relating to permit objections).

12

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

13

prevent a landowner or water purveyor claiming pollution or

14

diminution of a water supply from seeking any other remedy at

15

law or in equity.

16

§ 3218.1.  Notification to public drinking water systems.

17

Upon receiving notification of a spill, the department shall,

18

after investigating the incident, notify any public drinking

19

water facility that could be affected by the event that the

20

event occurred. The notification shall contain a brief

21

description of the event and any expected impact on water

22

quality.

23

§ 3218.2.  Containment for unconventional wells.

24

(a)  Sites.--Unconventional well sites shall be designed and

25

constructed to prevent spills to the ground surface or spills

26

off the well site. Containment practices shall meet all of the

27

following:

28

(1)  Be instituted on the well site during both drilling

29

and hydraulic fracturing operations.

30

(2)  Be sufficiently impervious and able to contain

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1

spilled material or waste until it can be removed or treated.

2

(3)  Be compatible with the waste material or waste

3

stored or used within the containment.

4

(4)  Additional practices as promulgated in regulation by

5

the Environmental Quality Board.

6

(b)  Plan.--The applicant shall submit a plan to the

7

department describing the containment practices to be utilized

8

and the area of the well site where containment systems will be

9

employed. The plan shall include a description of the equipment

10

to be kept onsite during drilling and hydraulic fracturing

11

operations to prevent a spill from leaving the well site.

12

(c)  Materials stored.--Containment systems shall be used

13

wherever any of the following are stored:

14

(1)  Drilling mud.

15

(2)  Hydraulic oil.

16

(3)  Diesel fuel.

17

(4)  Drilling mud additives.

18

(5)  Hydraulic fracturing additives.

19

(6)  Hydraulic fracturing flowback.

20

(d)  Capacity.--Areas where any additives, chemicals, oils or

21

fuels are to be stored must have sufficient containment capacity

22

to hold the volume of the largest container stored in the area

23

plus 10% to allow for precipitation, unless the container is

24

equipped with individual secondary containment.

25

(e)  Definition.--As used in this section, the term "well

26

site" means areas occupied by all equipment or facilities

27

necessary for or incidental to drilling, production or plugging

28

a well.

29

§ 3218.3.  Transportation records regarding wastewater fluids.

30

(a)  Requirements.--A well operator of an unconventional well

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1

that transports wastewater fluids shall do all of the following:

2

(1)  Maintain records for five years, in accordance with

3

regulations under subsection (b) and on a form approved by

4

the department, of the amount and destination of the fluids

5

transported.

6

(2)  Make the records under paragraph (1) available to

7

the department upon request.

8

(b)  Recordkeeping.--Recordkeeping requirements shall be

9

determined by the department and shall include the following:

10

(1)  The number of gallons of wastewater fluids produced

11

in the drilling, stimulation or alteration of a well.

12

(2)  Upon completion of the well, the name of the person

13

of or company that transported the wastewater fluids to a

14

disposal site or to a location other than the well site.

15

(3)  Each location where wastewater fluids were disposed

16

of or transported and the volumes that were disposed of at

17

the location other than the well site.

18

(4)  The method of disposal.

19

§ 3218.4.  Corrosion control requirements.

20

(a)  Pipelines.--All buried metallic pipelines shall be

21

installed and placed in operation in accordance with 49 CFR Pt.

22

192 Subpt. I (relating to requirements for corrosion control).

23

(b)  Tanks.--Permanent aboveground and underground tanks must

24

comply with the applicable corrosion control requirements in the

25

department's storage tank regulations.

26

(c)  Other structures.--For all other buried metallic

27

structures, including well casings, the Environmental Quality

28

Board shall promulgate regulations setting forth methods of

29

determining the need for corrosion protection and installing

30

necessary corrosion protection.

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1

(d)  Procedures.--The corrosion control procedures under

2

subsections (a) and (b) must be carried out by or under the

3

direction of a person qualified in corrosion methods.

4

(e)  Compliance.--An operator of a new, replaced, relocated

5

or otherwise changed pipeline must be in compliance with the

6

applicable requirements of this section by the date the pipeline

7

goes into service.

8

§ 3218.5.  Gathering lines.

9

(a)  Requirement.--Owners and operators of gathering lines

10

shall comply with section 2(5)(i.1) of the act of December 10,

11

1974 (P.L.852, No.287), referred to as the Underground Utility

12

Line Protection Law.

13

(b)  Definition.--As used in this section, the term

14

"gathering line" means a pipeline used to transport natural gas

15

from a production facility to a transmission line.

16

§ 3219.  Use of safety devices.

17

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

18

it with casings of sufficient strength, and other safety devices

19

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

20

department, and shall use every effort and endeavor effectively

21

to prevent blowouts, explosions and fires.

22

§ 3219.1.  Well control emergency response.

23

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

24

well control specialists in order to provide adequate emergency

25

response services in the event of a well control emergency. The

26

department shall make available upon request by a county

27

information relating to contracts with well control specialists.

28

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

29

a well control specialist with which the department has entered

30

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

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1

liability for actions taken in good faith to carry out its

2

contractual obligations.

3

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

4

damage arising from any of the following:

5

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

6

(2)  An intentional tort.

7

(3)  Gross negligence.

8

§ 3220.  Plugging requirements.

9

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

10

operator shall plug it in the manner prescribed by regulation of

11

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

12

well bore, unless the department has granted inactive status for

13

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

14

well. If the department determines that a prior owner or

15

operator received economic benefit, other than economic benefit

16

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

17

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

18

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

19

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

20

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

21

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

22

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

23

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

24

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

25

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

26

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

27

well shall be plugged from that depth in accordance with section

28

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

29

the Coal and Gas Resource Coordination Act, and the regulations

30

of the department.

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1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

10

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

11

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

12

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

13

to the notice of abandonment filed with the department under

14

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

15

operator has fully complied with this section, the well operator

16

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

17

prescribed by regulation of the department. When plugging has

18

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

19

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

20

qualified people who participated in the work setting forth the

21

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

22

certificate shall be mailed to each coal operator, lessee or

23

owner to whom notice was given by certified mail and another

24

shall be mailed to the department.

25

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

26

an uncompleted bore hole plugged immediately upon suspension of

27

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

28

well operator shall notify the department of the intention to

29

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

30

furnished by the department, showing the location of the well

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1

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

2

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

3

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

4

representative to be present at the plugging. The notice or

5

waiting period may be verbally waived by the department. In

6

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

7

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

8

plugged, the department shall be given three working days'

9

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

10

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

11

of subsequent wells, no additional notice shall be required if

12

plugging on the project is continuous. If plugging of subsequent

13

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

14

department of continuation of the project. Whether or not a

15

representative attends, if the well operator has fully complied

16

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

17

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

18

of the department. When plugging has been completed, a

19

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

20

department, by two experienced and qualified people who

21

participated in the work setting forth the time and manner in

22

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

23

mailed to the department.

24

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

25

is to be abandoned immediately after completion of drilling, the

26

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

27

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

28

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

29

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

30

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

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1

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

2

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

3

operator has fully complied with the requirements of this

4

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

5

plug the well in the manner provided by regulation of the

6

department. The well operator shall prepare the certificate of

7

plugging and mail copies of the same as provided in subsection

8

(b).

9

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

10

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

11

registered under section 3213 (relating to well registration and

12

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

13

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

14

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

15

recover the costs of plugging. The department shall make an

16

effort to determine ownership of a well which is in operation

17

but has not been registered and provide written notice to the

18

owner of pending action under this subsection. If the department

19

cannot determine ownership within 30 days, it may proceed under

20

this subsection. Costs of plugging shall have priority over all

21

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

22

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

23

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

24

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

25

owner or operator of the abandoned or unregistered well shall be

26

liable for the additional costs.

27

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

28

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

29

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

30

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

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1

the drilling or extraction operation of the abandoned well.

2

§ 3221.  Alternative methods.

3

A well operator may request permission to use a method or

4

material other than those required by this chapter and

5

applicable regulations for casing, plugging or equipping a well

6

in an application to the department which describes the proposed

7

alternative in reasonable detail and indicates the manner in

8

which it will accomplish the goals of this chapter. Notice of

9

filing of the application shall be given by the well operator by

10

certified mail to any affected coal operators, who may, within

11

15 days after the notice, file objections to the proposed

12

alternative method or material. If no timely objections are

13

filed or raised by the department, the department shall

14

determine whether to allow use of the proposed alternative

15

method or material.

16

§ 3222.  Well reporting requirements.

17

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

18

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

19

provided by the department, an annual report specifying the

20

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

21

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

22

years only changes in status must be reported. The Commonwealth

23

may utilize reported information in enforcement proceedings, in

24

making designations or determinations under section 1927-A of

25

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

26

Administrative Code of 1929, or in aggregate form for

27

statistical purposes.

28

(a.1)  Unconventional wells.--Each operator of an

29

unconventional well shall file with the department, on a form

30

provided by the department, a semiannual report specifying the

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1

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

2

The initial report under this subsection shall be filed by

3

August 15 and shall include production data from the preceding

4

calendar year and specify the status of each well. In subsequent

5

reports, only changes in status must be reported. Subsequent

6

semiannual reports shall be filed with the department on or

7

before February 15 and August 15 of each year and shall include

8

production data from the preceding reporting period. The

9

Commonwealth may utilize reported information in enforcement

10

proceedings, in making designations or determinations under

11

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

12

aggregate form for statistical purposes. Beginning November 1,

13

2010, the department shall make the reports available on its

14

publicly accessible Internet website. Costs incurred by the

15

department to comply with the requirements of this subsection

16

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

17

(relating to well permits).

18

(b)  Collection of data.--

19

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

20

drilled or altered.

21

(2)  A record containing the information required by the

22

department shall be filed within 30 days after drilling of a

23

well.

24

(3)  Within 30 days after completion of the well, when

25

the well is capable of production, a completion report

26

containing any additional required information shall be filed

27

and shall be maintained by the department.

28

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

29

shall, within 90 days of completion or recompletion of

30

drilling, submit a copy of any electrical, radioactive or

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1

other standard industry logs which have been run.

2

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

3

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

4

formation water analysis, porosity, permeability or fluid

5

saturation measurements, core analysis and lithologic log or

6

sample description or other similar data as compiled. No

7

information shall be required unless the well operator had it

8

compiled in the ordinary course of business, and

9

interpretation of data under this paragraph is not required

10

to be filed.

11

(b.1)  Report contents.--

12

(1)  The completion report shall contain the operator's

13

stimulation record. The stimulation record shall include all

14

of the following:

15

(i)  A descriptive list of the chemical additives in

16

the stimulation fluids, including any acid, biocide,

17

breaker, brine, corrosion inhibitor, crosslinker,

18

demulsifier, friction reducer, gel, iron control, oxygen

19

scavenger, Ph adjusting agent, proppant, scale inhibitor

20

and surfactant.

21

(ii)  The trade name, vendor and a brief descriptor

22

of the intended use or function of each chemical additive

23

in the stimulation fluid.

24

(iii)  A list of the chemicals intentionally added to

25

the stimulation fluid, by name and chemical abstract

26

service number.

27

(iv)  The maximum concentration, in percent by mass,

28

of each chemical intentionally added to the stimulation

29

fluid.

30

(v)  The total volume of the base fluid.

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1

(vi)  A list of water sources used under the approved

2

water management plan and the volume of water used.

3

(vii)  The pump rates and pressure used in the well.

4

(viii)  The total volume of recycled water used.

5

(2)  The well record shall identify all of the following:

6

(i)  Whether methane was encountered in other than a

7

target formation.

8

(ii)  The country of origin and manufacture of

9

tubular steel products used in the construction of the

10

well.

11

(b.2)  Trade secret or confidential proprietary

12

information.--When an operator submits its stimulation record

13

under subsection (b.1), the operator may designate specific

14

portions of the stimulation record as containing a trade secret

15

or confidential proprietary information. The department shall

16

prevent disclosure of a designated trade secret or confidential

17

proprietary information to the extent permitted by the act of

18

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

19

or other applicable State law.

20

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

21

the department prior to commencement of drilling, the well

22

operator shall collect any additional data specified by the

23

department, including representative drill cuttings and samples

24

from cores taken and any other geological information that the

25

operator reasonably can compile. Interpretation of the data is

26

not required to be filed.

27

(d)  Retention and filing.--Data required under subsection

28

(b)(5) and drill cuttings required under subsection (c) shall be

29

retained by the well operator and filed with the department no

30

more than three years after completion of the well. Upon

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1

request, the department shall extend the deadline up to five

2

years from the date of completion of the well. The department

3

shall be entitled to utilize information collected under this

4

subsection in enforcement proceedings, in making designations or

5

determinations under section 1927-A of The Administrative Code

6

of 1929 and in aggregate form for statistical purposes.

7

§ 3222.1.  Hydraulic fracturing chemical disclosure

8

requirements.

9

(a)  Applicability.--This section applies to hydraulic

10

fracturing of unconventional wells performed on or after the

11

effective date of this section.

12

(b)  Required disclosures.--

13

(1)  Except as provided under subsection (d), a service

14

provider who performs any part of a hydraulic fracturing

15

treatment and a vendor who provides hydraulic fracturing

16

additives directly to the operator for a hydraulic fracturing

17

treatment shall furnish the operator with the information

18

required under paragraph (2) not later than 60 days after the

19

commencement of the hydraulic fracturing.

20

(2)  Within 60 days following the conclusion of hydraulic

21

fracturing, the operator of the well shall complete the

22

chemical disclosure registry form and post the form on the

23

chemical disclosure registry in accordance with regulations

24

promulgated under this chapter in a format that does not link

25

chemicals to their respective hydraulic fracturing additive.

26

(3)  If the vendor, service provider or operator claims

27

that the specific identity of a chemical or the concentration

28

of a chemical, or both, are a trade secret or confidential

29

proprietary information, the operator of the well must

30

indicate that on the chemical disclosure registry form, and

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1

the vendor, service provider or operator shall submit a

2

signed written statement that the record contains a trade

3

secret or confidential proprietary information. If a chemical

4

is a trade secret, the operator shall include in the chemical

5

registry disclosure form the chemical family or similar

6

description associated with the chemical.

7

(4)  At the time of claiming that any of the following

8

are entitled to protection under paragraph (3), a vendor,

9

service provider or operator shall file a signed written

10

statement that the record contains a trade secret or

11

confidential proprietary information:

12

(i)  A hydraulic fracturing additive.

13

(ii)  A chemical.

14

(iii)  A concentration.

15

(iv)  Any combination of subparagraphs (i), (ii) and

16

(iii).

17

(5)  Unless the information is entitled to protection as

18

a trade secret or confidential proprietary information,

19

information submitted to the department or posted to the

20

chemical disclosure registry shall be a public record.

21

(6)  By January 1, 2013, the department shall determine

22

whether the chemical disclosure registry allows the

23

department and the public to search and sort Pennsylvania

24

chemical disclosure information by geographic area, chemical

25

ingredient, chemical abstract service number, time period and

26

operator. If the department determines that there is no

27

reasonable assurance that the registry will allow for

28

searches by geographic area, chemical ingredient, chemical

29

abstract service number, time period and operator, at a date

30

acceptable to the department, the department shall

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1

investigate the feasibility of making the information under

2

paragraph (2) available on the department's Internet website

3

in a manner that will allow the department and the public to

4

search and sort the information by geographic area, chemical

5

ingredient, chemical abstract service number, time period and

6

operator, and shall report to the General Assembly whether

7

additional resources may be needed to implement the searches

8

and sorting.

9

(7)  A vendor shall not be responsible for any inaccuracy

10

in information that is provided to the vendor by a third-

11

party manufacturer.

12

(8)  A service provider shall not be responsible for any

13

inaccuracy in information that is provided to the service

14

provider by the vendor.

15

(9)  An operator shall not be responsible for any

16

inaccuracy in information provided to the operator by the

17

vendor or service provider or manufacturer.

18

(10)  A vendor, service company or operator shall

19

identify the specific identity and amount of any chemicals

20

claimed to be a trade secret or confidential proprietary

21

information to any health professional who requests the

22

information in writing if the health professional executes a

23

confidentiality agreement and provides a written statement of

24

need for the information indicating all of the following:

25

(i)  The information is needed for the purpose of

26

diagnosis or treatment of an individual.

27

(ii)  The individual being diagnosed or treated may

28

have been exposed to a hazardous chemical.

29

(iii)  Knowledge of information will assist in the

30

diagnosis or treatment of an individual.

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1

(11)  If a health professional determines that a medical

2

emergency exists and the specific identity and amount of any

3

chemicals claimed to be a trade secret or confidential

4

proprietary information are necessary for emergency

5

treatment, the vendor, service provider or operator shall

6

immediately disclose the information to the health

7

professional upon a verbal acknowledgment by the health

8

professional that the information may not be used for

9

purposes other than the health needs asserted and that the

10

health professional shall maintain the information as

11

confidential. The vendor, service provider or operator may

12

request, and the health professional shall provide upon

13

request, a written statement of need and a confidentiality

14

agreement from the health professional as soon as

15

circumstances permit, in conformance with regulations

16

promulgated under this chapter.

17

(c)  Disclosures not required.--Notwithstanding any other

18

provision of this chapter, a vendor, service provider or

19

operator shall not be required to do any of the following:

20

(1)  Disclose chemicals that are not disclosed to it by

21

the manufacturer, vendor or service provider.

22

(2)  Disclose chemicals that were not intentionally added

23

to the stimulation fluid.

24

(3)  Disclose chemicals that occur incidentally or are

25

otherwise unintentionally present in trace amounts, may be

26

the incidental result of a chemical reaction or chemical

27

process or may be constituents of naturally occurring

28

materials that become part of a stimulation fluid.

29

(d)  Trade secrets and confidential proprietary

30

information.--

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1

(1)  Notwithstanding any other provision of this chapter,

2

a vendor, service company or operator shall not be required

3

to disclose trade secrets or confidential proprietary

4

information to the chemical disclosure registry.

5

(2)  The following shall apply:

6

(i)  If the specific identity of a chemical, the

7

concentration of a chemical or both the specific identity

8

and concentration of a chemical are claimed to be a trade

9

secret or confidential proprietary information, the

10

vendor, service provider or operator may withhold the

11

specific identity, the concentration, or both the

12

specific identity and concentration, of the chemical from

13

the information provided to the chemical disclosure

14

registry.

15

(ii)  Nothing under this paragraph shall prohibit any

16

of the following from obtaining from a vendor, service

17

provider or operator information that may be needed to

18

respond to a spill or release:

19

(A)  The department.

20

(B)  A public health official.

21

(C)  An emergency manager.

22

(D)  A responder to a spill, release or a

23

complaint from a person who may have been directly

24

and adversely affected or aggrieved by the spill or

25

release.

26

(iii)  Upon receipt of a written statement of need

27

for the information under subparagraph (ii), the

28

information shall be disclosed by the vendor, service

29

provider or operator to the requesting official or entity

30

authorized under subparagraph (ii) and shall not be a

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1

public record.

2

(e)  Disclosure prevented.--The department shall prevent

3

disclosure of trade secrets or confidential proprietary

4

information under this section pursuant to the requirements of

5

the Right-to-Know Law or other applicable State law.

6

(f)  Well reporting.--Notwithstanding any other provision of

7

law, nothing in this section shall be construed to reduce or

8

modify the disclosure requirements for conventional well

9

operators contained in 25 Pa. Code Ch. 78 Subch. E (relating to

10

well reporting).

11

§ 3223.  Notification and effect of well transfer.

12

The owner or operator of a well shall notify the department

13

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

14

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

15

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

16

or operator of an obligation accrued under this chapter, nor

17

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

18

the well until the requirements of section 3225 (relating to

19

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

20

operator shall be relieved from all obligations under this

21

chapter, including the obligation to plug the well.

22

§ 3224.  Coal operator responsibilities.

23

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

24

other underground materials from, or extending the workings in,

25

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

26

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

27

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

28

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

29

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

30

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

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1

prepare and file with the department, showing the pillar which

2

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

3

gas well in the projected workings. Thereafter, the coal

4

operator may proceed with mining operations in the manner

5

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

6

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

7

well location without written approval under this section. If,

8

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

9

indicates that the proposed pillar is inadequate to protect

10

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

11

the affected well operator shall attempt to reach an agreement

12

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

13

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

14

within ten days after receipt of the proposed plan under this

15

section, file objections under section 3251 (relating to

16

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

17

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

18

has none, the department shall grant approval, reciting that

19

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

20

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

21

approved in the manner as projected.

22

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

23

operator or raised by the department, the department shall order

24

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

25

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

26

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

27

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

28

which will satisfy the objections and receive department

29

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

30

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

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1

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

2

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

3

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

4

department, by appropriate order, shall determine the pillar to

5

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

6

section, the department shall follow as nearly as is possible

7

the original plan filed by the coal operator. The department

8

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

9

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

10

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

11

conditions is established. Pillars determined by the department

12

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

13

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

14

pillar to be left for each well.

15

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

16

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

17

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

18

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

19

the department shall:

20

(1)  follow the appropriate procedure under subsection

21

(a) or (b);

22

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

23

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

24

application; and

25

(3)  have the discretion to grant approval for the pillar

26

to be left with respect to each well.

27

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

28

of the department after notice and opportunity for a hearing

29

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

30

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

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1

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

2

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

3

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

4

nothing in this chapter shall be construed to:

5

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

6

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

7

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

8

pillar; or

9

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

10

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

11

pay for the coal pillar.

12

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

13

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

14

completely remove any pillar from around that well shall file a

15

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

16

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

17

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

18

approval has been granted by the department in accordance with

19

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

20

shall have the authority to establish conditions under which the

21

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

22

plugged oil or gas well.

23

§ 3225.  Bonding.

24

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

25

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

26

application for a well permit, and before continuing to

27

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

28

shall file with the department a bond covering the well and

29

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

30

department. A bond filed with an application for a well

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1

permit shall be payable to the Commonwealth and conditioned

2

upon the operator's faithful performance of all drilling,

3

water supply replacement, restoration and plugging

4

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

5

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

6

conditioned upon the operator's faithful performance of all

7

water supply replacement, restoration and plugging

8

requirements of this chapter. The amount of the bond required

9

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

10

Environmental Quality Board every two years to reflect the

11

projected costs to the Commonwealth of plugging the well:

12

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

13

than 6,000 feet:

14

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

15

well; but no bond may be required under this clause

16

in excess of $35,000.

17

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

18

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

19

but no bond may be required under this clause in

20

excess of $60,000.

21

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

22

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

23

but no bond may be required under this clause in

24

excess of $100,000.

25

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

26

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

27

wells; but no bond may be required under this clause

28

in excess of $250,000.

29

(ii)  For wells with a total well bore length of at

30

least 6,000 feet:

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1

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

2

well; but no bond may be required under this clause

3

in excess of $140,000.

4

(B)  For operating 26 to 50 wells, $140,000 plus

5

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

6

but no bond may be required under this clause in

7

excess of $290,000.

8

(C)  For operating 51 to 150 wells, $290,000 plus

9

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

10

but no bond may be required under this clause in

11

excess of $430,000.

12

(D)  For operating more than 150 wells, $430,000

13

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

14

wells; but no bond may be required under this clause

15

in excess of $600,000.

16

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

17

or operator may file a blanket bond for the applicable amount

18

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

19

covering all of its wells in this Commonwealth, as enumerated

20

on the bond form.

21

(3)  Liability under the bond shall continue until the

22

well has been properly plugged in accordance with this

23

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

24

certificate of plugging with the department. Each bond shall

25

be executed by the operator and a corporate surety licensed

26

to do business in this Commonwealth and approved by the

27

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

28

deposit with the department:

29

(i)  cash;

30

(ii)  certificates of deposit or automatically

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1

renewable irrevocable letters of credit, from financial

2

institutions chartered or authorized to do business in

3

this Commonwealth and regulated and examined by the

4

Commonwealth or a Federal agency, which may be terminated

5

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

6

notice by the financial institution to the permittee and

7

the department;

8

(iii)  negotiable bonds of the United States

9

Government or the Commonwealth, the Pennsylvania Turnpike

10

Commission, the General State Authority, the State Public

11

School Building Authority or any municipality within the

12

Commonwealth; or

13

(iv)  United States Treasury Bonds issued at a

14

discount without a regular schedule of interest payments

15

to maturity, otherwise known as Zero Coupon Bonds, having

16

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

17

of purchase and at the maturity date having a value of

18

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

19

The cash deposit, certificate of deposit, amount of the

20

irrevocable letter of credit or market value of the

21

securities shall be equal at least to the sum of the

22

bond.

23

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

24

cash, letters of credit or negotiable bonds, immediately

25

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

26

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

27

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

28

is made.

29

(5)  The State Treasurer shall at all times be

30

responsible for custody and safekeeping of deposits. The

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1

operator making the deposit shall be entitled from time to

2

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

3

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

4

collateral deposited, upon depositing with the State

5

Treasurer, in lieu of that collateral, other collateral of

6

classes specified in this section having a market value at

7

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

8

receive and recover the interest and income from the

9

negotiable bonds as they become due and payable.

10

(6)  If negotiable bonds on deposit under this subsection

11

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

12

the owner of the bonds, shall convert them into other

13

negotiable bonds, of classes specified in this section,

14

designated by the owner.

15

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

16

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

17

written notice to replace the letter of credit with other

18

acceptable bond guarantees as provided in this section. If

19

the owner or operator fails to timely replace the letter of

20

credit, the department shall draw upon and convert the letter

21

of credit into cash and hold it as a collateral bond

22

guarantee.

23

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

24

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

25

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

26

Upon release of bonds and collateral under this section, the

27

State Treasurer shall immediately return to the owner the

28

specified amount of cash or securities.

29

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

30

refuses to comply with subsection (a), regulations promulgated

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1

under this chapter or conditions of a permit relating to this

2

chapter, the department may declare the bond forfeited and shall

3

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

4

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

5

owner or operator has deposited cash or securities as collateral

6

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

7

collateral forfeited and direct the State Treasurer to pay the

8

full amount of the funds into the Well Plugging Restricted

9

Revenue Account or to sell the security to the extent forfeited

10

and pay the proceeds into the Well Plugging Restricted Revenue

11

Account. If a corporate surety or financial institution fails to

12

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

13

or financial institution shall be disqualified from writing

14

further bonds under this chapter or any other environmental law

15

administered by the department. A person aggrieved by reason of

16

forfeiting the bond or converting collateral, as provided in

17

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

18

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

19

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

20

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

21

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

22

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

23

submit the replacement bond constitutes a violation of this

24

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

25

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

26

apply:

27

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

28

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

29

required under subsection (a), due to inability to

30

demonstrate sufficient financial resources may, in lieu of

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1

the bond:

2

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

3

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

4

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

5

shall be a nonrefundable fee paid each year that the

6

operator has not filed a bond with the department. All

7

fees collected in lieu of a bond under this subsection

8

shall be used for the purposes authorized by this

9

chapter. The Environmental Quality Board shall have the

10

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

11

established under this subsection.

12

(ii)  Make phased deposits of collateral to fully

13

collateralize the bond, subject to the following:

14

(A)  Payment shall be based on the number of

15

wells owned or operated. The operator shall make an

16

initial deposit and make annual deposits in

17

accordance with the schedule in clause (B). Interest

18

accumulated by the collateral shall become a part of

19

the bond until the collateral plus accumulated

20

interest equals the amount of the required bond. The

21

collateral shall be deposited, in trust, with the

22

State Treasurer as provided in this subsection or

23

with a bank selected by the department which shall

24

act as trustee for the benefit of the Commonwealth to

25

guarantee the operator's compliance with the

26

drilling, water supply replacement, restoration and

27

plugging requirements of this chapter. The operator

28

shall be required to pay all costs of the trust.

29

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

30

does not intend to operate additional wells shall

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1

deposit $250 per well and shall, thereafter, annually

2

deposit $50 per well until the obligations of this

3

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

4

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

5

or more permits for additional wells shall deposit

6

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

7

plus $150 for each additional well to be permitted

8

that year until the obligations of this section are

9

fully met. An operator of 26 to 50 wells shall

10

deposit $3,000 and shall, thereafter, annually

11

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

12

be permitted that year until the obligations of this

13

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

14

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

15

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

16

be permitted that year until the obligations of this

17

section are fully met. Operators of 101 to 200 wells

18

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

19

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

20

to be permitted that year until the obligations of

21

this section are fully met. Operators of more than

22

200 wells shall fully bond their wells immediately.

23

(C)  The department shall reduce the amount of

24

phased collateral payments or the period of time over

25

which phased collateral payments shall be made on

26

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

27

1992, have paid a fee in lieu of bond under

28

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

29

to enter the phased collateral program under this

30

subparagraph rather than continue to make payments in

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1

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

2

in lieu of bond shall not be credited in any other

3

manner, and the department shall not be required to

4

refund the fees. The Environmental Quality Board, by

5

regulation, may change the annual deposits

6

established under clause (B) if necessary to

7

accommodate a change in the amount of the bond

8

required under this section.

9

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

10

bond or make phased deposits of collateral to fully

11

collateralize the bond so long as the operator does not miss

12

a payment under this subsection and remains in compliance

13

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

14

subsection, the operator shall:

15

(i)  immediately submit the appropriate bond amount

16

in full; or

17

(ii)  cease all operations and plug all wells.

18

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

19

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

20

drill new wells due to inability to demonstrate financial

21

resources may meet the collateral bond requirements of

22

subsection (a) by making phased deposits of collateral to

23

fully collateralize the bond. The individual shall be limited

24

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

25

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

26

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

27

years. Interest accumulated shall become a part of the bond

28

until the collateral plus accumulated interest equals the

29

amount of the required bond. The collateral shall be

30

deposited in trust with the State Treasurer under subsection

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1

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

2

as trustee for the benefit of the Commonwealth to guarantee

3

the individual's compliance with the drilling, water supply

4

replacement, restoration and plugging requirements of this

5

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

6

(2)  Individuals may continue to use phased collateral to

7

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

8

drilled under this provision and remain in compliance with

9

this chapter. If an individual misses a payment, the

10

individual shall:

11

(i)  immediately submit the appropriate bond amount

12

in full; or

13

(ii)  cease all operations and plug all wells.

14

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

15

means a natural person doing business under his own name.

16

(e)  Reservation of remedies.--All remedies for violations of

17

this chapter, regulations adopted under this chapter and

18

conditions of permits are expressly preserved. Nothing in this

19

section shall be construed as an exclusive penalty or remedy for

20

violations of law. No action taken under this section shall

21

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

22

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

23

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

24

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

25

retroactive basis as a condition of obtaining a permit under

26

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

27

this chapter.

28

(g)  Definition.--As used in this section, the term "well

29

site" means areas occupied by all equipment or facilities

30

necessary for or incidental to drilling, production or plugging

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1

a well.

2

§ 3226.  Oil and Gas Technical Advisory Board.

3

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

4

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

5

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

6

this Commonwealth:

7

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

8

(i)  a petroleum engineer;

9

(ii)  a petroleum geologist; or

10

(iii)  an experienced driller representative of the

11

oil and gas industry with three years of experience in

12

this Commonwealth.

13

(2)  One mining engineer from the coal industry with

14

three years of experience in this Commonwealth.

15

(3)  One geologist or petroleum engineer with three years

16

of experience in this Commonwealth, who shall be chosen from

17

a list of three names submitted by the Citizens Advisory

18

Council to the Governor and who shall sit as a representative

19

of the public interest.

20

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

21

but shall be reimbursed for all necessary expenses incurred in

22

the performance of their duties.

23

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

24

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

25

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

26

this chapter. The board shall select a chairman and other

27

officers deemed appropriate.

28

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

29

board in the formulation, drafting and presentation stages of

30

all regulations of a technical nature promulgated under this

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1

chapter. The board shall be given a reasonable opportunity to

2

review and comment on all regulations of a technical nature

3

prior to submission to the Environmental Quality Board for

4

initial consideration. The written report of the board shall be

5

presented to the Environmental Quality Board with any regulatory

6

proposal. The chairman of the board shall be invited to

7

participate in the presentation of all regulations of a

8

technical nature before the Environmental Quality Board to the

9

extent allowed by procedures of the Environmental Quality Board.

10

Nothing herein shall preclude any member of the board from

11

filing a petition for rulemaking with the Environmental Quality

12

Board in accordance with procedures established by the

13

Environmental Quality Board.

14

§ 3227.  Air contaminant emissions.

15

(a)  Natural gas operations.--An owner or operator of a

16

facility conducting natural gas operations in unconventional

17

formations including development, production, transmission and

18

processing shall submit to the department a source report

19

identifying and quantifying actual air contaminant emissions

20

from any air contamination source. The report shall include a

21

description of the methods used to calculate annual emissions.

22

(b)  Air contamination sources.--An owner or operator of a

23

stationary air contamination source shall complete the reports

24

required under this section using forms and procedures specified

25

by the department.

26

(c)  Nitrogen oxides and volatile organic compounds.--A

27

statement under 25 Pa. Code Ch. 135 (relating to reporting of

28

sources) for nitrogen oxides and volatile organic compounds

29

shall be submitted to the department according to the schedule

30

specified in subsection (d).

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1

(d)  Time.--The report for 2011 actual emissions shall be

2

submitted to the department on a schedule established by the

3

department. Each year after 2011, the report shall be submitted

4

to the department by March 1 for air contaminant emissions

5

during the preceding calendar year unless a different reporting

6

schedule is required by the Clean Air Act (69 Stat. 322, 42

7

U.S.C. § 7401 et seq.) or regulations adopted under that act.

8

SUBCHAPTER C

9

UNDERGROUND GAS STORAGE

10

Sec.

11

3231.  Reporting requirements for gas storage operations.

12

3232.  Reporting requirements for coal mining operations.

13

3233.  General gas storage reservoir operations.

14

3234.  Gas storage reservoir operations in coal areas.

15

3235.  Inspection of facilities and records.

16

3236.  Reliance on maps and burden of proof.

17

3237.  Exemptions and prohibitions.

18

§ 3231.  Reporting requirements for gas storage operations.

19

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

20

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

21

reservoir underlying or within 3,000 linear feet of an

22

operating coal mine in a coal seam that extends over the

23

storage reservoir or reservoir protective area shall, within

24

60 days, file with the department a copy of a map and certain

25

data in the form and manner provided in this subsection or as

26

otherwise prescribed by regulation of the department.

27

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

28

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

29

feet of, but less than 10,000 linear feet from, an operating

30

coal mine in a coal seam that extends over the storage

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1

reservoir or reservoir protective area shall file the map and

2

data within 60 days or a longer period set by departmental

3

regulation.

4

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

5

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

6

shall file the appropriate required map and data with the

7

department not less than six months prior to starting the

8

actual injection or storage.

9

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

10

by a competent engineer or geologist, showing:

11

(i)  the stratum in which the existing or proposed

12

storage reservoir is or is proposed to be located;

13

(ii)  the geographic location of the outside

14

boundaries of the storage reservoir and reservoir

15

protective area;

16

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

17

the reservoir or within 3,000 linear feet thereof which

18

have been drilled into or through the storage stratum,

19

indicating which have been or are to be cleaned out and

20

plugged or reconditioned for storage along with the

21

proposed location of all additional wells which are to be

22

drilled within the storage reservoir or within 3,000

23

linear feet thereof.

24

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

25

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

26

through the storage stratum within the storage reservoir or

27

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

28

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

29

productive of oil or gas, the initial rock pressure and

30

volume, the depths at which all coal seams were encountered

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1

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

2

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

3

shall be filed:

4

(i)  detailing efforts made to determine that the

5

wells shown are accurately located on the map;

6

(ii)  affirming that the wells shown represent, to

7

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

8

wells which have ever been drilled into or below the

9

storage stratum within the proposed storage reservoir or

10

within the reservoir protective area;

11

(iii)  stating whether the initial injection is for

12

testing purposes;

13

(iv)  stating the maximum pressure at which injection

14

and storage of gas is contemplated; and

15

(v)  providing a detailed explanation of the methods

16

to be used or which previously have been used in

17

drilling, cleaning out, reconditioning and plugging wells

18

in the storage reservoir or within the reservoir

19

protective area.

20

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

21

paragraph (5) shall be amended or supplemented semiannually

22

if material changes occur. The department may require a

23

storage operator to amend or supplement the map or data at

24

more frequent intervals if material changes have occurred

25

justifying the earlier filing.

26

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

27

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

28

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

29

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

30

longer period set by departmental regulations, file maps and

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1

data required by departmental regulation and as follows:

2

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

3

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

4

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

5

secondary recovery or gas recycling shall file the required

6

map and data with the department not less than six months

7

prior to the starting of actual injection or storage.

8

(2)  The map shall be prepared by a competent engineer or

9

competent geologist and show:

10

(i)  the stratum in which the existing or proposed

11

storage reservoir is or is to be located;

12

(ii)  the geographic location of the outside

13

boundaries of the storage reservoir; and

14

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

15

within the reservoir, or within 3,000 linear feet

16

thereof, which have been drilled into or through the

17

storage stratum, indicating which have been or are to be

18

cleaned out and plugged or reconditioned for storage and

19

the proposed location of all additional wells which are

20

to be drilled within the storage reservoir or within

21

3,000 linear feet thereof.

22

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

23

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

24

through the storage stratum within the storage reservoir or

25

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

26

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

27

productive of oil or gas, the initial rock pressure and

28

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

29

information. At the time of the filing of the maps and data,

30

a statement shall be filed:

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1

(i)  detailing efforts made to determine that the

2

wells shown are accurately located on the map;

3

(ii)  affirming that the wells shown represent, to

4

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

5

wells which have ever been drilled into or below the

6

storage stratum within the proposed storage reservoir;

7

(iii)  stating whether the initial injection is for

8

testing purposes;

9

(iv)  stating the maximum pressure at which injection

10

and storage of gas is contemplated; and

11

(v)  providing a detailed explanation of the methods

12

to be used or which previously have been used in

13

drilling, cleaning out, reconditioning and plugging wells

14

in the storage reservoir.

15

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

16

paragraph (3) shall be amended or supplemented semiannually

17

if material changes occur. The department may require a

18

storage operator to amend or supplement the map or data at

19

more frequent intervals if material changes have occurred

20

justifying the earlier filing.

21

(c)  Political subdivisions.--Storage operators shall give

22

notice to the department of the name of each political

23

subdivision and county in which the operator maintains and

24

operates a gas storage reservoir.

25

(d)  Notice to affected persons.--At the time of the filing

26

of maps and data and the filing of amended or supplemental maps

27

or data required by this section, the person filing the

28

information shall give written notice of the filing to all

29

persons who may be affected under the provisions of this chapter

30

by the storage reservoir described in the maps or data. Notices

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1

shall contain a description of the boundaries of the storage

2

reservoir. When a person operating a coal mine or owning an

3

interest in coal properties which are or may be affected by the

4

storage reservoir requests, in writing, a copy of any map or

5

data filed with the department, the copy shall be furnished by

6

the storage operator.

7

(e)  Outside boundaries.--For purposes of this chapter, the

8

outside boundaries of a storage reservoir shall be defined by

9

the location of those wells around the periphery of the storage

10

reservoir which had no gas production when drilled in the

11

storage stratum. The boundaries shall be originally fixed or

12

subsequently changed if, based on the number and nature of the

13

wells and the geological and production knowledge of the storage

14

stratum, its character, permeability, distribution and operating

15

experience, it is determined in a conference under section 3251

16

(relating to conferences) that modifications should be made.

17

(f)  Inapplicability of section.--The requirements of this

18

section shall not apply to the operator of an underground gas

19

storage reservoir so long as the reservoir is located more than

20

10,000 linear feet from an operating coal mine, except that the

21

storage operator shall give notice to the department of the name

22

of each political subdivision and county in which the operator

23

maintains and operates a gas storage reservoir. In political

24

subdivisions and counties where both gas storage reservoirs and

25

coal mines are being operated, the department may request the

26

storage operator to furnish maps showing geographical locations

27

and outside boundaries of the storage reservoirs. The department

28

shall keep a record of the information and promptly notify the

29

coal operator and the storage operator when notified by them

30

that the coal mine and storage reservoir are within 10,000

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1

linear feet of each other.

2

§ 3232.  Reporting requirements for coal mining operations.

3

(a)  General rule.--A person owning or operating a coal mine

4

shall file with the department a map prepared and sealed by a

5

competent individual licensed as a professional engineer or

6

professional land surveyor under the provisions of the act of

7

May 23, 1945 (P.L.913, No.367), known as the Engineer, Land

8

Surveyor and Geologist Registration Law, showing the outside

9

coal boundaries of the operating coal mine, the existing

10

workings and exhausted areas and the relationship of the

11

boundaries to identifiable surface properties and landmarks. A

12

person owning or operating an operating coal mine which has been

13

penetrated by a well shall furnish a mine map to the department

14

each year indicating the excavations for the preceding year and

15

the projections for the ensuing year. The map required by this

16

subsection shall be furnished to a person storing or

17

contemplating the storage of gas in the vicinity of operating

18

coal mines, upon written request, by the coal operator, and the

19

person and the department shall thereafter be informed of any

20

boundary changes at the time the changes occur. The department

21

shall keep a record of the information and promptly notify the

22

coal operator and storage operator when notified by them that

23

the coal mine and the storage reservoir are within 10,000 linear

24

feet of each other.

25

(b)  Mines near certain reservoirs.--A person owning or

26

operating any coal mine which is or which comes within 10,000

27

linear feet of a storage reservoir and where the coal seam being

28

operated extends over the storage reservoir or reservoir

29

protective area shall, within 45 days after receiving notice

30

from the storage operator of that fact, file with the department

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1

and furnish to the person operating the storage reservoir a map

2

in the form required by subsection (a) showing, in addition to

3

the requirements of subsection (a), existing and projected

4

excavations and workings of the operating coal mine for the

5

ensuing 18-month period and the location of oil or gas wells of

6

which the coal operator has knowledge. The person owning or

7

operating the coal mine shall, each six months thereafter, file

8

with the department and furnish to the person operating the

9

storage reservoir a revised map showing any additional

10

excavations and workings, together with the projected

11

excavations and workings for the then ensuing 18-month period,

12

which may be within 10,000 linear feet of the storage reservoir.

13

The department may require a coal operator to file revised maps

14

at more frequent intervals if material changes have occurred

15

justifying earlier filing. The person owning or operating the

16

coal mine shall also file with the department and furnish the

17

person operating the reservoir prompt notice of any wells which

18

have been cut into, together with all available pertinent

19

information.

20

(c)  Mines near gas storage reservoirs.--A person owning or

21

operating a coal mine who has knowledge that it overlies or is

22

within 2,000 linear feet of a gas storage reservoir shall,

23

within 30 days, notify the department and the storage operator

24

of that fact.

25

(d)  Mines projected to be near storage reservoirs.--When a

26

person owning or operating a coal mine expects that, within the

27

ensuing nine-month period, the coal mine will be extended to a

28

point which will be within 2,000 linear feet of any storage

29

reservoir, the person shall notify the department and storage

30

operator in writing of that fact.

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1

(e)  New mines.--A person intending to establish or

2

reestablish an operating coal mine which will be over a storage

3

reservoir or within 2,000 linear feet of a storage reservoir or

4

may, within nine months thereafter, be expected to be within

5

2,000 linear feet of a storage reservoir shall immediately

6

notify the department and storage operator in writing. Notice

7

shall include the date on which the person intends to establish

8

or reestablish the operating coal mine.

9

(f)  Misdemeanor.--A person who serves notice as required by

10

this subsection of an intention to establish or reestablish an

11

operating coal mine, without intending in good faith to

12

establish or reestablish the mine, is liable for continuing

13

damages to a storage operator injured by the improper notice and

14

commits a misdemeanor subject to the penalties of section 3255

15

(relating to penalties).

16

§ 3233.  General gas storage reservoir operations.

17

(a)  General rule.--A person who operates or proposes to

18

operate a storage reservoir, except one filled by the secondary

19

recovery or gas recycling process, shall:

20

(1)  Use every known method which is reasonable under the

21

circumstances for discovering and locating all wells which

22

have or may have been drilled into or through the storage

23

reservoir.

24

(2)  Plug or recondition, as provided in departmental

25

regulations, all known wells drilled into or through the

26

storage reservoir, except to the extent otherwise provided in

27

subsections (b) and (c).

28

(b)  Wells to be plugged.--To comply with subsection (a),

29

wells which are to be plugged shall be plugged in the manner

30

specified in section 3220 (relating to plugging requirements).

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1

(b.1)  Wells plugged prior to enactment of section.--If a

2

well located in the storage reservoir area has been plugged

3

prior to April 18, 1985, and on the basis of data, information

4

and other evidence submitted to the department, it is determined

5

that the plugging was done in the manner required by section

6

3220 or approved as an alternative method under section 3221

7

(relating to alternative methods) and the plugging is still

8

sufficiently effective to meet the requirements of this chapter,

9

the obligations under subsection (a) with regard to plugging the

10

well shall be considered to have been fully satisfied.

11

(c)  Wells to be reconditioned.--The following shall apply:

12

(1)  To comply with subsection (a), wells which are to be

13

reconditioned shall, unless the department by regulation

14

specifies a different procedure, be cleaned out from the

15

surface through the storage horizon, and the producing casing

16

and casing strings determined not to be in good physical

17

condition shall be replaced with new casing, using the same

18

procedure as is applicable to drilling a new well under this

19

chapter. In the case of wells to be used for gas storage, the

20

annular space between each string of casing and the annular

21

space behind the largest diameter casing to the extent

22

possible shall be filled to the surface with cement or

23

bentonitic mud or a nonporous material approved by the

24

department under section 3221. At least 15 days prior to

25

reconditioning, the storage operator shall give notice to the

26

department, setting forth in the notice the manner in which

27

it is planned to recondition the well and any pertinent data

28

known to the storage operator which will indicate the

29

condition of the well existing at that time. In addition, the

30

storage operator shall give the department at least 72 hours'

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1

notice of the time when reconditioning is to begin. If no

2

objections are raised by the department within ten days, the

3

storage operator may proceed with reconditioning in

4

accordance with the plan as submitted. If objections are made

5

by the department, the department may fix a time and place

6

for a conference under section 3251 (relating to conferences)

7

at which the storage operator and department shall endeavor

8

to agree on a plan to satisfy the objections and meet the

9

requirements of this section. If no agreement is reached, the

10

department may, by an appropriate order, determine whether

11

the plan as submitted meets the requirements of this section

12

or what changes, if any, are required. If, in reconditioning

13

a well in accordance with the plan, physical conditions are

14

encountered which justify or necessitate a change in the

15

plan, the storage operator may request that the plan be

16

changed. If the request is denied, the department shall fix a

17

conference under section 3251 and proceed in the same manner

18

as with original objections. An application may be made in

19

the manner prescribed by section 3221 for approval of an

20

alternative method of reconditioning a well. If a well

21

located within the storage reservoir was reconditioned, or

22

drilled and equipped, prior to April 18, 1985, the

23

obligations imposed by subsection (a), as to reconditioning

24

the well, shall be considered fully satisfied if, on the

25

basis of the data, information and other evidence submitted

26

to the department, it is determined that:

27

(i)  The conditioning or previous drilling and

28

equipping was done in the manner required in this

29

subsection, in regulations promulgated under this chapter

30

or in a manner approved as an alternative method in

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1

accordance with section 3221.

2

(ii)  The reconditioning or previous drilling and

3

equipping is still sufficiently effective to meet the

4

requirements of this chapter.

5

(2)  If a well requires emergency repairs, this chapter

6

shall not be construed to require the storage operator to

7

give any notice required by this subsection before making the

8

repairs.

9

(d)  Exception.--The requirements of subsection (a) shall not

10

apply to injection of gas into a stratum when the sole purpose

11

of injection, referred to in this subsection as testing, is to

12

determine whether the stratum is suitable for storage purposes.

13

Testing shall be conducted only in compliance with the following

14

requirements:

15

(1)  The person testing or proposing to test shall comply

16

with section 3231 (relating to reporting requirements for gas

17

storage operations) and verify the statement required to be

18

filed by that section.

19

(2)  The storage operator shall give at least six months'

20

written notice to the department of the fact that injection

21

of gas for testing purposes is proposed.

22

(3)  If the department has objections, the department

23

shall fix a time and place for a conference under section

24

3251, not more than ten days from the date of notice to the

25

storage operator, at which time the storage operator and

26

department shall attempt to resolve the issues presented. If

27

an agreement cannot be reached, the department may issue an

28

appropriate order.

29

(e)  Failure to execute lawful order.--In a proceeding under

30

this chapter, if the department determines that an operator of a

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1

storage reservoir has failed to carry out a lawful order issued

2

under this chapter, the department may require the operator to

3

suspend operation of the reservoir and withdraw the gas until

4

the violation is remedied, in which case the storage operator,

5

limited by due diligence insofar as existing facilities utilized

6

to remove gas from the reservoir will permit, shall:

7

(1)  if possible, remove the amount required by the

8

department to be removed; or

9

(2)  in any event, remove the maximum amount which can be

10

withdrawn in accordance with recognized engineering and

11

operating procedures.

12

(f)  Duty of storage reservoir operator.--The following shall

13

apply:

14

(1)  A person owning or operating a storage reservoir

15

subject to this chapter shall have a duty to:

16

(i)  Maintain all wells drilled into or through the

17

reservoir in a condition, and operate them in a manner,

18

sufficient to prevent the escape of gas.

19

(ii)  Operate and maintain the reservoir and its

20

facilities as prescribed by departmental regulations and

21

at a pressure which will prevent gas from escaping, but

22

the pressure shall not exceed the highest rock pressure

23

found to have existed during the production history of

24

the reservoir or another high pressure limit approved by

25

the department after holding a conference under section

26

3251 based on geological and production knowledge of the

27

reservoir, its character, permeability distribution and

28

operating experience.

29

(2)  The duty under paragraph (1) shall not be construed

30

to include inability to prevent the escape of gas when gas

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1

escapes as a result of an act of God or a person not under

2

the control of the storage operator. In that instance, the

3

storage operator shall have a duty to take action reasonably

4

necessary to prevent further escape of gas. This paragraph

5

does not apply to a well which the storage operator failed to

6

locate and make known to the department.

7

§ 3234.  Gas storage reservoir operations in coal areas.

8

(a)  General rule.--A person operating a storage reservoir

9

which underlies or is within 2,000 linear feet of a coal mine

10

operating in a coal seam that extends over the storage reservoir

11

or the reservoir protective area shall:

12

(1)  Use every known reasonable method for discovering

13

and locating all wells which have or may have been drilled

14

into or through the storage stratum in the acreage lying

15

within the outside coal boundaries of the operating coal mine

16

overlying the storage reservoir or the reservoir protective

17

area.

18

(2)  Plug or recondition, as provided by section 3220

19

(relating to plugging requirements) and subsection (e), all

20

known wells, except to the extent provided in subsections

21

(e), (f), (g) and (h), drilled into or through the storage

22

stratum and located within the portion of the acreage of the

23

operating coal mine overlying the storage reservoir or the

24

reservoir protective area. If an objection is raised as to

25

use of a well as a storage well and after a conference under

26

section 3251 (relating to conferences), it is determined by

27

the department, taking into account all circumstances and

28

conditions, that the well should not be used as a storage

29

well, the well shall be plugged unless, in the opinion of the

30

storage operator, the well may be used as a storage well in

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1

the future, in which case, upon approval of the department

2

after taking into account all circumstances and conditions,

3

the storage operator may recondition and inactivate the well

4

rather than plug it.

5

(3)  The requirements of paragraph (2) shall be deemed to

6

have been fully complied with if, as the operating coal mine

7

is extended, all wells which from time to time come within

8

the acreage described in paragraph (2) are reconditioned or

9

plugged as provided in section 3220 and subsection (e) or (f)

10

so that, by the time the coal mine has reached a point within

11

2,000 linear feet of the wells, they will have been

12

reconditioned or plugged in accordance with section 3220 and

13

subsection (e) or (f).

14

(b)  Verified statement.--A person operating a storage

15

reservoir referred to in subsection (a) shall file with the

16

department and furnish a copy to the person operating the

17

affected operating coal mine a verified statement setting forth:

18

(1)  That the map and any supplemental maps required by

19

section 3231(a) (relating to reporting requirements for gas

20

storage operations) have been prepared and filed in

21

accordance with section 3231.

22

(2)  A detailed explanation of what the storage operator

23

has done to comply with the requirements of subsection (a)(1)

24

and (2) and the results of those actions.

25

(3)  Such additional efforts, if any, as the storage

26

operator is making and intends to make to locate all wells.

27

(4)  Any additional wells that are to be plugged or

28

reconditioned to meet the requirements of subsection (a)(2).

29

(b.1)  Order of department.--If the statement required under

30

subsection (b) is not filed by the storage reservoir operator

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1

within the time specified by this chapter or the regulations of

2

the department, the department may order the operator to file

3

the statement.

4

(c)  Procedure.--Within 120 days after receipt of a statement

5

required by this section, the department may direct that a

6

conference be held in accordance with section 3251 to determine

7

whether the requirements of section 3231 and subsection (a) have

8

been fully met. At the conference, if any person believes the

9

requirements have not been fully met, the parties shall attempt

10

to agree on additional actions to be taken and the time for

11

completion, subject to approval of the department. If an

12

agreement cannot be reached, the department shall make a

13

determination and, if the department determines any requirements

14

have not been met, the department shall issue an order

15

specifying in detail the extent to which the requirements have

16

not been met and the actions which the storage operator must

17

complete to meet the requirements. The order shall grant as much

18

time as is reasonably necessary to fully comply. If the storage

19

operator encounters conditions not known to exist at the time of

20

issuance of the order and which materially affect the validity

21

of the order or the ability of the storage operator to comply

22

with it, the storage operator may apply for a rehearing or

23

modification of the order.

24

(d)  Notification.--If, in complying with subsection (a), a

25

storage operator, after filing the statement provided for in

26

subsection (b), plugs or reconditions a well, the storage

27

operator shall notify the department and the coal operator

28

affected, in writing, setting forth facts indicating the manner

29

in which the plugging or reconditioning was done. Upon receipt

30

of the notification, the coal operator or department may request

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1

a conference under section 3251.

2

(e)  Plugging wells.--In order to meet the requirements of

3

subsection (a), wells which are to be plugged shall be plugged

4

in the manner specified in regulations promulgated under section

5

3211 (relating to well permits). When a well located within the

6

storage reservoir or the reservoir protective area has been

7

plugged prior to April 18, 1985, and, on the basis of the data

8

information and other evidence submitted to the department, it

9

is determined that the plugging was done in the manner required

10

by section 3220, or in a manner approved as an alternative

11

method in accordance with section 3221 (relating to alternative

12

methods), and the plugging is still sufficiently effective to

13

meet the requirements of this chapter, the requirements of

14

subsection (a) as to plugging the well shall be considered to

15

have been fully satisfied.

16

(f)  Reconditioned wells.--The following shall apply:

17

(1)  In order to comply with subsection (a), unless the

18

department by regulation specifies a different procedure,

19

wells which are to be reconditioned shall be cleaned out from

20

the surface through the storage horizon, and the following

21

casing strings shall be pulled and replaced with new casing,

22

using the procedure applicable to drilling a new well under

23

this chapter:

24

(i)  the producing casing;

25

(ii)  the largest diameter casing passing through the

26

lowest workable coal seam unless it extends at least 25

27

feet below the bottom of the coal seam and is determined

28

to be in good physical condition, but the storage

29

operator may, instead of replacing the largest diameter

30

casing, replace the next largest casing string if the

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1

casing string extends at least 25 feet below the lowest

2

workable coal seam; and

3

(iii)  casing strings determined not to be in good

4

physical condition.

5

(2)  In the case of a well to be used for gas storage,

6

the annular space between each string of casing and the

7

annular space behind the largest diameter casing, to the

8

extent possible, shall be filled to the surface with cement

9

or bentonitic mud or an equally nonporous material approved

10

by the department under section 3221.

11

(3)  At least 15 days before a well is to be

12

reconditioned, the storage operator shall give notice to the

13

department and the coal operator, lessee or owner, setting

14

forth the manner in which reconditioning is planned and

15

pertinent data known to the storage operator which will

16

indicate the current condition of the well, along with at

17

least 72 hours' notice of the date and time when

18

reconditioning will begin. The coal operator, lessee or owner

19

shall have the right to file, within ten days after receipt

20

of the notice, objections to the plan of reconditioning as

21

submitted by the storage operator. If no objections are filed

22

and none are raised by the department within ten days, the

23

storage operator may proceed with reconditioning in

24

accordance with the plan as submitted. If an objection is

25

filed or made by the department, the department shall fix a

26

time and place for a conference under section 3251, at which

27

conference the storage operator and the person having

28

objections shall attempt to agree on a plan of reconditioning

29

that meets the requirements of this section. If no agreement

30

is reached, the department shall, by an appropriate order,

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1

determine whether the plan as submitted meets the

2

requirements of this section or what changes should be made

3

to meet the requirements. If, in reconditioning the well in

4

accordance with the plan, physical conditions are encountered

5

which justify or necessitate a change in the plan, the

6

storage operator or coal operator may request that the plan

7

be changed. If the parties cannot agree on a change, the

8

department shall arrange for a conference to determine the

9

matter in the same manner as set forth in connection with

10

original objections to the plan.

11

(4)  Application may be made to the department in the

12

manner prescribed in section 3221 for approval of an

13

alternative method of reconditioning a well. When a well

14

located within the storage reservoir or the reservoir

15

protective area has been reconditioned or drilled and

16

equipped prior to April 18, 1985, and, on the basis of the

17

data, information and other evidence submitted to the

18

department, the obligations imposed by subsection (a) as to

19

reconditioning the well shall be considered to be fully

20

satisfied if it is determined that reconditioning or previous

21

drilling and equipping:

22

(i)  was done in the manner required in this

23

subsection, or in regulations promulgated hereunder, or

24

in a manner approved as an alternative method in

25

accordance with section 3221; or

26

(ii)  is still sufficiently effective to meet the

27

requirements of this chapter.

28

(5)  If a well requires emergency repairs, this

29

subsection shall not be construed to require the storage

30

operator to give the notices specified herein before making

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1

the repairs.

2

(g)  Producing wells.--If a well located within the reservoir

3

protective area is a producing well in a stratum below the

4

storage stratum, the obligations imposed by subsection (a) shall

5

not begin until the well ceases to be a producing well.

6

(h)  Certain other wells.--If a well within a storage

7

reservoir or reservoir protective area penetrates the storage

8

stratum but does not penetrate the coal seam being mined by an

9

operating coal mine, the department may, upon application of the

10

operator of the storage reservoir, exempt the well from the

11

requirements of this section. Either party affected may request

12

a conference under section 3251 with respect to exemption of a

13

well covered by this subsection.

14

(i)  Plugging limitation.--In fulfilling the requirements of

15

subsection (a)(2) with respect to a well within the reservoir

16

protective area, the storage operator shall not be required to

17

plug or recondition the well until the storage operator has

18

received from the coal operator written notice that the mine

19

workings will, within the period stated in the notice, be within

20

2,000 linear feet of the well. Upon the receipt of the notice,

21

the storage operator shall use due diligence to complete the

22

plugging or reconditioning of the well in accordance with the

23

requirements of this section and section 3220. If the mine

24

workings do not, within a period of three years after the well

25

has been plugged, come within 2,000 linear feet of the well, the

26

coal operator shall reimburse the storage operator for the cost

27

of plugging, provided that the well is still within the

28

reservoir protective area as of that time.

29

(j)  Retreat mining.--If retreat mining approaches a point

30

where, within 90 days, it is expected that the retreat work will

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1

be at the location of the pillar surrounding an active storage

2

well, the coal operator shall give written notice to the storage

3

operator, and by agreement, the parties shall determine whether

4

it is necessary or advisable to effectively and temporarily

5

inactivate the well. The well shall not be reactivated until a

6

reasonable period, determined by the parties, has elapsed. If

7

the parties cannot agree as required by this subsection, the

8

matter shall be submitted to the department for resolution. The

9

number of wells required to be temporarily inactivated during

10

the retreat period shall not be of a number that materially

11

affects efficient operation of the storage pool, except that

12

this provision shall not preclude temporary inactivation of a

13

particular well if the practical effect of inactivating it is to

14

render the pool temporarily inoperative.

15

(k)  Exceptions.--The requirements of subsections (a), (l)

16

and (m) shall not apply to injection of gas into a stratum when

17

the whole purpose of injection, referred to in this subsection

18

as testing, is to determine whether the stratum is suitable for

19

storage purposes. Testing shall be conducted only in compliance

20

with the following requirements:

21

(1)  The person testing or proposing to test shall comply

22

with all provisions and requirements of section 3231 and

23

verify the statement required to be filed by that section.

24

(2)  If any part of the proposed storage reservoir is

25

under or within 2,000 linear feet of an operating coal mine

26

which is operating in a coal seam that extends over the

27

proposed storage reservoir or the reservoir protective area,

28

the storage operator shall give at least six months' written

29

notice to the department and coal operator of the fact that

30

injection of gas for testing purposes is proposed.

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1

(3)  The coal operator affected may at any time file

2

objections with the department, whereupon the department

3

shall fix a time and place for a conference under section

4

3251, not more than ten days from the date of the notice to

5

the storage operator. At the conference, the storage operator

6

and the objecting party shall attempt to agree, subject to

7

approval of the department, on the questions involved. If an

8

agreement cannot be reached, the department may issue an

9

appropriate order.

10

(4)  If at any time a proposed storage reservoir being

11

tested comes under or within 2,000 linear feet of an

12

operating coal mine because of extension of the storage

13

reservoir being tested or because of extension or

14

establishment or reestablishment of the operating coal mine,

15

the requirements of this subsection shall immediately become

16

applicable to the testing.

17

(l)  Storage reservoirs near operating coal mines.--A person

18

who proposes to establish a storage reservoir under or within

19

2,000 linear feet of a coal mine operating in a coal seam that

20

extends over the storage reservoir or the reservoir protective

21

area shall, prior to establishing the reservoir, and in addition

22

to complying with section 3231 and subsection (a), file the

23

verified statement required by subsection (b) and fully comply

24

with any order of the department in the manner provided under

25

subsection (b) or (c) before commencing operation of the storage

26

reservoir. After the person proposing to operate the storage

27

reservoir complies with the requirements of this subsection and

28

commences operations, the person shall continue to be subject to

29

all provisions of this chapter.

30

(m)  Gas storage reservoirs.--If a gas storage reservoir is

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1

in operation on April 18, 1985, and at any time thereafter it is

2

under or within 2,000 linear feet of an operating coal mine, or

3

if a gas storage reservoir is put in operation after April 18,

4

1985, and at any time after storage operations begin it is under

5

or within 2,000 linear feet of an operating coal mine, the

6

storage operator shall comply with all of the provisions of this

7

section, except that:

8

(1)  the time for filing the verified statement under

9

subsection (b) shall be 60 days after the date stated in the

10

notice filed by the coal operator under section 3232(d) and

11

(e) (relating to reporting requirements for coal mining

12

operations);

13

(2)  the coal operator shall give notice of the delay to

14

the department;

15

(3)  the department shall, upon the request of the

16

storage operator, extend the time for filing the statement by

17

the additional time which will be required to extend or

18

establish or reestablish the operating coal mine to a point

19

within 2,000 linear feet of the reservoir;

20

(4)  the verified statement shall also indicate that the

21

map referred to in section 3231(a) has been currently amended

22

as of the time of the filing of the statement; and

23

(5)  the person operating the storage reservoir shall

24

continue to be subject to all of the provisions of this

25

chapter.

26

(n)  Failure to comply with order.--If, in any proceeding

27

under this chapter, the department determines that an operator

28

of a storage reservoir has failed to comply with a lawful order

29

issued under this chapter, the department may require the

30

storage operator to suspend operation of the reservoir and

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1

withdraw the gas from it until the violation is remedied, in

2

which case the storage operator, limited by due diligence

3

insofar as existing facilities utilized to remove gas from the

4

reservoir will permit, shall:

5

(1)  if possible, remove the amount required by the

6

department to be removed; or

7

(2)  in any event, remove the maximum amount which can be

8

withdrawn in accordance with recognized engineering and

9

operating procedures.

10

(o)  Prevention of escape of gas.--In addition to initial

11

compliance with other provisions of this chapter and lawful

12

orders issued under this chapter, it shall be the duty, at all

13

times, of a person owning or operating a storage reservoir

14

subject to this chapter to keep all wells drilled into or

15

through the storage stratum in a condition, and operate the

16

wells in a manner, which is designed to prevent the escape of

17

gas out of the storage reservoir and its facilities, and to

18

operate and maintain the storage reservoir and its facilities in

19

the manner prescribed by regulation of the department and at a

20

pressure that will prevent gas from escaping from the reservoir

21

or its facilities. This duty shall not be construed to include

22

inability to prevent the escape of gas when escape results from

23

an act of God or a person not under the control of the storage

24

operator, except that this exception does not apply to a well

25

which the storage operator has failed to locate and make known

26

to the department. If an escape of gas results from an act of

27

God or a person not under the control of the storage operator,

28

the storage operator shall be under the duty to take any action

29

reasonably necessary to prevent further escape of gas out of the

30

storage reservoir and its facilities.

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1

§ 3235.  Inspection of facilities and records.

2

(a)  General rule.--The person operating a storage reservoir

3

affected by this chapter shall, at all reasonable times, be

4

permitted to inspect applicable records and facilities of a coal

5

mine overlying the storage reservoir or reservoir protective

6

area. The person operating a coal mine affected by this chapter

7

shall, at all reasonable times, be permitted to inspect

8

applicable records and facilities of a storage reservoir

9

underlying the coal mine.

10

(b)  Order.--If a storage operator or coal operator subject

11

to subsection (a) refuses to permit inspection of records or

12

facilities, the department may, on its own motion or on

13

application of the party seeking inspection, after reasonable

14

written notice and a hearing if requested by an affected party,

15

order inspection.

16

§ 3236.  Reliance on maps and burden of proof.

17

(a)  General rule.--In determining whether a coal mine or

18

operating coal mine is or will be within a particular distance

19

from a storage reservoir which is material under this chapter,

20

the owner or operator of the coal mine and the storage operator

21

may rely on the most recent map of the storage reservoir or coal

22

mine filed by the other party with the department.

23

(b)  Accuracy.--Where accuracy of a map or data filed under

24

this chapter is in issue, the person that filed the map or data

25

shall:

26

(1)  at the request of an objecting party, disclose the

27

information and method used to compile the map or data, along

28

with any information available to the person that might

29

affect current validity of the map or data; and

30

(2)  have the burden of proving accuracy of the map or

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1

data.

2

§ 3237.  Exemptions and prohibitions.

3

(a)  Inapplicability of chapter to certain coal mines.--This

4

chapter shall not apply to the following types of coal mines:

5

(1)  Strip mines and auger mines operating from the

6

surface.

7

(2)  Mines to which the former act of June 9, 1911

8

(P.L.756, No.319), entitled "An act to provide for the health

9

and safety of persons employed in and about the bituminous

10

coal-mines of Pennsylvania, and for the protection and

11

preservation of property connected therewith," did not apply

12

in accordance with section 3 of that act.

13

(3)  Mines to which the former act of June 2, 1891

14

(P.L.176, No.177), entitled "An act to provide for the health

15

and safety of persons employed in and about the anthracite

16

coal mines of Pennsylvania and for the protection and

17

preservation of property connected therewith," did not apply

18

in accordance with section 32 of that act.

19

(b)  Workable coal seams.--Injection of gas for storage

20

purposes in a workable coal seam, whether or not it is being or

21

has been mined, is prohibited.

22

(b.1)  Original extraction.--Nothing in this chapter

23

prohibits original extraction of natural gas, crude oil or coal.

24

(c)  Certain rock formations.--Nothing in this chapter

25

applies to storage of gas or liquids in storage reservoirs

26

excavated in rock formations specifically for storage purposes.

27

SUBCHAPTER D

28

EMINENT DOMAIN

29

Sec.

30

3241.  Appropriation of interest in real property.

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1

§ 3241.  Appropriation of interest in real property.

2

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

3

corporation empowered to transport, sell or store natural gas or

4

manufactured gas in this Commonwealth may appropriate an

5

interest in real property located in a storage reservoir or

6

reservoir protective area for injection, storage and removal

7

from storage of natural gas or manufactured gas in a stratum

8

which is or previously has been commercially productive of

9

natural gas. The right granted by this subsection shall not be

10

exercised to acquire any of the following for the purpose of gas

11

storage:

12

(1)  An interest in a geological stratum within the area

13

of a proposed storage reservoir or reservoir protective area:

14

(i)  unless the original recoverable oil or gas

15

reserves in the proposed storage reservoir have been

16

depleted or exhausted by at least 80%; and

17

(ii)  until the condemnor has acquired the right, by

18

grant, lease or other agreement, to store gas in the

19

geological stratum underlying at least 75% of the area of

20

the proposed storage reservoir.

21

(2)  An interest in a geological stratum within the area

22

of a proposed storage reservoir or reservoir protective area

23

owned directly or indirectly by a gas company or other person

24

engaged in local distribution of natural gas, if the interest

25

to be acquired is presently being used by the gas company or

26

other person for storage of gas in performance of service to

27

customers in its service area.

28

(b)  Construction.--The following shall apply:

29

(1)  This chapter authorizes appropriation within a

30

storage reservoir or reservoir protective area of the

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1

following:

2

(i)  a stratum to be used for storage;

3

(ii)  any gas reserve remaining a stratum to be used

4

for storage;

5

(iii)  an active or abandoned well or wells drilled

6

into a stratum to be used for storage; and

7

(iv)  the right to enter upon and use the surface of

8

lands to:

9

(A)  locate, recondition, maintain, plug or

10

replug an active or abandoned well; or

11

(B)  operate a well drilled into or through a

12

stratum to be used for storage.

13

(2)  This chapter does not preclude the owner of

14

nonstorage strata from drilling wells to produce oil or gas

15

from a stratum above or below the storage stratum

16

appropriated by another person, but a person appropriating or

17

holding storage rights may access, inspect and examine the

18

drilling, the completed well, drilling logs and other records

19

relating to drilling, equipping or operating the well in

20

order to determine whether the storage stratum is being

21

adequately protected to prevent escape of gas stored therein.

22

(3)  This chapter does not authorize appropriation of a

23

coal or coal measure, regardless of whether it is being

24

mined, or an interest in the coal mine or coal measure.

25

(c)  Activities through appropriated strata.--A person

26

drilling, operating, using or plugging a well through a stratum

27

appropriated under this chapter shall drill, case, equip,

28

operate or plug it in a manner designed to prevent avoidable

29

escape of gas that may be stored in the storage stratum. Upon

30

violation of this subsection, the court of common pleas of the

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1

county where the land in question is situated may compel

2

compliance by injunction or grant other appropriate relief in an

3

action brought by the person storing gas in the storage stratum.

4

(d)  Prerequisites to appropriation.--Before appropriating

5

under this chapter, a person shall attempt to agree with owners

6

of interests in the real property involved as to damages payable

7

for rights and interests to be appropriated, if the owners can

8

be found and are sui juris. If the parties fail to agree, the

9

person shall tender a surety bond to the owners to secure them

10

in the payment of damages. If the owners refuse to accept the

11

bond, cannot be found or are not sui juris, and after reasonable

12

notice to the owners by advertisement or otherwise, the bond

13

shall be presented for approval to the court of common pleas of

14

the county in which the tract of land is situated. Upon the

15

approval of the bond by the court, the right of the person to

16

appropriate in accordance with the provisions of this chapter

17

shall be complete.

18

(e)  Appointment of viewers.--Upon petition of a property

19

owner or a person appropriating under this chapter, the court

20

shall:

21

(1)  appoint three disinterested freeholders of the

22

county to serve as viewers to assess damages to be paid to

23

the property owner for the rights appropriated;

24

(2)  fix a time for the parties to meet;

25

(3)  provide notice to the parties; and

26

(4)  after the viewers have filed their report, fix

27

reasonable compensation for the service of the viewers.

28

(f)  Appeal.--Within 20 days after the filing of a report by

29

viewers appointed under subsection (e), a party may appeal and

30

proceed to a jury trial as in ordinary cases.

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1

(g)  Requirements.--Nothing in this section shall relieve a

2

person operating a storage reservoir from the requirements of

3

this chapter.

4

SUBCHAPTER E

5

ENFORCEMENT AND REMEDIES

6

Sec.

7

3251.  Conferences.

8

3252.  Public nuisances.

9

3253.  Enforcement orders.

10

3254.  Restraining violations.

11

3254.1.  Well control emergency response cost recovery.

12

3255.  Penalties.

13

3256.  Civil penalties.

14

3257.  Existing rights and remedies preserved and cumulative

15

remedies authorized.

16

3258.  Inspection and production of materials, witnesses,

17

depositions and rights of entry.

18

3259.  Unlawful conduct.

19

3260.  Collection of fines and penalties.

20

3261.  Third party liability.

21

3262.  Inspection reports.

22

§ 3251.  Conferences.

23

(a)  General rule.--The department or any person having a

24

direct interest in a matter subject to this chapter may, at any

25

time, request that a conference be held to discuss and attempt

26

to resolve by mutual agreement a matter arising under this

27

chapter. Unless otherwise provided, conferences shall be held

28

within 90 days after a request is received by the department,

29

and notice shall be given by the department to all interested

30

parties. A representative of the department shall attend the

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1

conference and the department may make recommendations. An

2

agreement reached at a conference shall be consistent with this

3

chapter and, if approved by the department, it shall be reduced

4

to writing and shall be effective, unless reviewed and rejected

5

by the department within ten days after the conference. The

6

record of an agreement approved by the department shall be kept

7

on file by the department and copies shall be furnished to the

8

parties. The scheduling of a conference shall have no effect on

9

the department's authority to issue orders to compel compliance

10

with this chapter.

11

(b)  Notification.--When a coal operator is to be notified of

12

a proceeding under this section, the department simultaneously

13

shall send a copy of the notice to the collective bargaining

14

representative of employees of the coal operator.

15

§ 3252.  Public nuisances.

16

A violation of section 3217 (relating to protection of fresh

17

groundwater and casing requirements), 3218 (relating to

18

protection of water supplies), 3219 (relating to use of safety

19

devices) or 3220 (relating to plugging requirements), or a

20

regulation, order, term or condition of a permit relating to any

21

of those sections constitutes a public nuisance.

22

§ 3253.  Enforcement orders.

23

(a)  General rule.--Except as modified by subsections (b),

24

(c) and (d), the department may issue orders necessary to aid in

25

enforcement of this chapter. An order issued under this chapter

26

shall take effect upon notice, unless the order specifies

27

otherwise. The power of the department to issue an order under

28

this chapter is in addition to any other remedy available to the

29

department under this chapter or under any other law.

30

(b)  Suspension and revocation.--

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1

(1)  The department may suspend or revoke a well permit

2

or well registration for any well:

3

(i)  in continuing violation of any of the following:

4

(A)  This chapter.

5

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

6

known as The Clean Streams Law.

7

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

8

known as the Solid Waste Management Act.

9

(D)  Any other statute administered by the

10

department;

11

and

12

(ii)  the likely result of a violation is an unsafe

13

operation or environmental damage.

14

(2)  A suspension order of the department shall

15

automatically terminate if the violation upon which it is

16

based is corrected by the operator to the satisfaction of the

17

department in order to bring the well into compliance with

18

this chapter.

19

(c)  Written notice.--Prior to suspension or revocation of a

20

well permit or registration, the department shall serve written

21

notice on the well operator or its agent, stating specifically

22

the statutory provision, regulation or other reason relied upon,

23

along with factual circumstances surrounding the alleged

24

violation. If the department suspends or revokes the permit or

25

registration, the department may order the operator to cap the

26

well if the likely result of the violation is an unsafe

27

operation or environmental damage.

28

(d)  Immediate orders.--An order of the department requiring

29

immediate cessation of drilling operations shall be effective

30

only if authorized by the secretary or a designee.

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1

(e)  Grievances.--A person aggrieved by a department order

2

issued under this section shall have the right, within 30 days

3

of receipt of the notice, to appeal to the Environmental Hearing

4

Board.

5

§ 3254.  Restraining violations.

6

(a)  General rule.--In addition to any other remedy provided

7

in this chapter, the department may institute a suit in equity

8

in the name of the Commonwealth for an injunction to restrain a

9

violation of this chapter or rules, regulations, standards or

10

orders adopted or issued under this chapter and to restrain the

11

maintenance or threat of a public nuisance. Upon motion of the

12

Commonwealth, the court shall issue a prohibitory or mandatory

13

preliminary injunction if it finds that the defendant is

14

engaging in unlawful conduct, as defined by this chapter, or

15

conduct causing immediate and irreparable harm to the public.

16

The Commonwealth shall not be required to furnish bond or other

17

security in connection with the proceeding. In addition to an

18

injunction, the court in equity may level civil penalties as

19

specified in section 3256 (relating to civil penalties).

20

(b)  District attorney.--In addition to other remedies in

21

this chapter, upon relation of the district attorney of a county

22

affected, or upon relation of the solicitor of a municipality

23

affected, an action in equity may be brought in a court of

24

competent jurisdiction for an injunction to restrain a violation

25

of this chapter or rules and regulations promulgated under this

26

chapter or to restrain a public nuisance or detriment to health.

27

(c)  Concurrent penalties.--Penalties and remedies under this

28

chapter shall be deemed concurrent. Existence or exercise of one

29

remedy shall not prevent the department from exercising another

30

remedy at law or in equity.

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1

(d)  Jurisdiction.--Actions under this section may be filed

2

in the appropriate court of common pleas or in Commonwealth

3

Court, and those courts are hereby granted jurisdiction to hear

4

actions under this section.

5

§ 3254.1.  Well control emergency response cost recovery.

6

A person liable for a well control emergency is responsible

7

for all response costs incurred by the department to respond to

8

the well control emergency. In an action before a court of

9

competent jurisdiction, the department may recover all its

10

response costs, including the cost of regaining control of the

11

well, controlling the perimeter of the well site, preparing

12

water sprays, establishing trenches or dikes to capture runoff

13

fluids and providing the resources and equipment needs for the

14

incident.

15

§ 3255.  Penalties.

16

(a)  General violation.--A person violating a provision of

17

this chapter commits a summary offense and, upon conviction,

18

shall be sentenced to pay a fine of not more than $1,000 or to

19

imprisonment of not more than 90 days, or both. Each day during

20

which the violation continues is a separate and distinct

21

offense.

22

(b)  Willful violation.--A person willfully violating a

23

provision of this chapter or an order of the department issued

24

under this chapter commits a misdemeanor and, upon conviction,

25

shall be sentenced to pay a fine of not more than $5,000 or to

26

imprisonment of not more than one year, or both. Each day during

27

which the violation continues is a separate and distinct

28

offense.

29

(c)  Authority.--The department may institute a prosecution

30

against any person or municipality for a violation of this

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1

chapter.

2

§ 3256.  Civil penalties.

3

In addition to other remedies available at law or in equity

4

for a violation of this chapter, a regulation of the department,

5

a departmental order or a permit condition, the department,

6

after a hearing, may assess a civil penalty regardless of

7

whether the violation was willful. The penalty shall not exceed

8

$25,000 plus $1,000 for each day during which the violation

9

continues or, in the case of a violation arising from the

10

construction, alteration or operation of an unconventional well,

11

$75,000 plus $5,000 for each day during which the violation

12

continues. In determining the amount, the department shall

13

consider willfulness of the violation, damage or injury to

14

natural resources of this Commonwealth or their uses,

15

endangerment of safety of others, the cost of remedying the

16

harm, savings resulting to the violator as a result of the

17

violation and any other relevant factor. When the department

18

proposes to assess a civil penalty, it shall notify the person

19

of the proposed amount of the penalty. The person charged with

20

the penalty must, within 30 days of notification, pay the

21

proposed penalty in full or file an appeal of the assessment

22

with the Environmental Hearing Board. Failure to comply with the

23

time period under this section shall result in a waiver of all

24

legal rights to contest the violation or the amount of the

25

penalty. The civil penalty shall be payable to the Commonwealth

26

and collectible in any manner provided at law for collection of

27

debts. If a violator neglects or refuses to pay the penalty

28

after demand, the amount, together with interest and costs that

29

may accrue, shall become a lien in favor of the Commonwealth on

30

the real and personal property of the violator, but only after

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1

the lien has been entered and docketed of record by the

2

prothonotary of the county where the property is situated. The

3

department may transmit to the prothonotaries of the various

4

counties certified copies of all liens. It shall be the duty of

5

each prothonotary to enter and docket the liens of record in the

6

prothonotary's office and index them as judgments are indexed,

7

without requiring payment of costs as a condition precedent to

8

entry.

9

§ 3257.  Existing rights and remedies preserved and cumulative

10

remedies authorized.

11

Nothing in this chapter stops the Commonwealth or a district

12

attorney from proceeding in a court of law or in equity to abate

13

pollution forbidden under this chapter or a nuisance under

14

existing law. It is hereby declared to be the purpose of this

15

chapter to provide additional and cumulative remedies to control

16

activities related to drilling for, or production of, oil and

17

gas in this Commonwealth, and nothing contained in this chapter

18

abridges or alters rights of action or remedies existing, or

19

which existed previously, in equity or under common or statutory

20

law, criminal or civil. Neither this chapter, the grant of a

21

permit under this chapter nor an act done by virtue of this

22

chapter stops the Commonwealth, in exercising rights under

23

common or decisional law or in equity, from suppressing a

24

nuisance, abating pollution or enforcing common law or statutory

25

rights. No court of this Commonwealth with jurisdiction to abate

26

public or private nuisances shall be deprived of jurisdiction in

27

an action to abate a private or public nuisance instituted by

28

any person on grounds that the nuisance constitutes air or water

29

pollution.

30

§ 3258.  Inspection and production of materials, witnesses,

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1

depositions and rights of entry.

2

(a)  General rule.--The department may make inspections,

3

conduct tests or sampling or examine books, papers and records

4

pertinent to a matter under investigation under this chapter to

5

determine compliance with this chapter. For this purpose, the

6

duly authorized agents and employees of the department may at

7

all reasonable times enter and examine any involved property,

8

facility, operation or activity.

9

(a.1)  Preoperation inspections.--The operator may not

10

commence drilling activities until the department has conducted

11

an inspection of the unconventional well site after the

12

installation of erosion and sediment control measures. The

13

department may conduct follow-up inspections of well sites and

14

related activities to determine compliance with this chapter.

15

(b)  Access.--The owner, operator or other person in charge

16

of a property, facility, operation or activity under this

17

chapter, upon presentation of proper identification and purpose

18

either for inspection or to remediate or otherwise respond to a

19

well control emergency, by agents or employees of the

20

department, shall provide free and unrestricted entry and

21

access. Upon refusal, the agent or employee may obtain a search

22

warrant or other suitable order authorizing entry and

23

inspection, remediation or response. It shall be sufficient to

24

justify issuance of a search warrant authorizing examination and

25

inspection if:

26

(1)  there is probable cause to believe that the object

27

of the investigation is subject to regulation under this

28

chapter; and

29

(2)  access, examination or inspection is necessary to

30

enforce the provisions of this chapter.

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1

(c)  Witnesses.--In any part of this Commonwealth, the

2

department may subpoena witnesses, administer oaths, examine

3

witnesses, take testimony and compel production of books,

4

records, maps, plats, papers, documents and other writings

5

pertinent to proceedings or investigations conducted by the

6

department under this chapter. Upon refusal to obey a subpoena

7

by any person and on application of the department, a court may

8

enforce a subpoena in contempt proceedings. Fees for serving a

9

subpoena shall be the same as those paid to sheriffs for similar

10

services.

11

(d)  Deposition.--The department or a party to a proceeding

12

before the department may cause the deposition of a witness who

13

resides in or outside of this Commonwealth to be taken in the

14

manner prescribed by law for taking depositions in civil

15

actions.

16

(e)  Witness fee.--Witnesses summoned before the department

17

shall be paid the same fees as are paid to witnesses in courts

18

of record of general jurisdiction. Witnesses whose depositions

19

are taken under this chapter, and the officers taking those

20

depositions, shall be entitled to the same fees as those paid

21

for like services in court.

22

(f)  Purchasers.--Upon request, a purchaser of oil or gas

23

shall provide the department information necessary to determine

24

ownership of facilities from which the purchaser obtained oil or

25

gas. The information shall be kept confidential for a period of

26

five years, and the department may utilize it in enforcement

27

proceedings. The department may request information under this

28

section only when a well does not comply with section 3211(h)

29

(relating to well permits).

30

§ 3259.  Unlawful conduct.

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1

It shall be unlawful for any person to:

2

(1)  Drill, alter, operate or utilize an oil or gas well

3

without a permit or registration from the department as

4

required by this chapter or in violation of rules or

5

regulations adopted under this chapter, orders of the

6

department or a term or condition of a permit issued by the

7

department.

8

(2)  Conduct an activity related to drilling for, or

9

production of, oil and gas:

10

(i)  contrary to this chapter, rules or regulations

11

adopted under this chapter, an order of the department or

12

a term or condition of a permit issued by the department;

13

or

14

(ii)  in any manner as to create a public nuisance or

15

adversely affect public health, safety, welfare or the

16

environment.

17

(3)  Refuse, obstruct, delay or threaten an agent or

18

employee of the department acting in the course of lawful

19

performance of a duty under this chapter, including, but not

20

limited to, entry and inspection.

21

(4)  Attempt to obtain a permit or identify a well as an

22

orphan well by misrepresentation or failure to disclose all

23

relevant facts.

24

(5)  Cause abandonment of a well by removal of casing or

25

equipment necessary for production without plugging the well

26

in the manner prescribed under section 3220 (relating to

27

plugging requirements), except that the owner or operator of

28

a well may temporarily remove casing or equipment necessary

29

for production, but only if it is part of the normal course

30

of production activities.

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1

§ 3260.  Collection of fines and penalties.

2

Fines and penalties shall be collectible in a manner provided

3

by law for collection of debts. If a person liable to pay a

4

penalty neglects or refuses to pay after demand, the amount,

5

together with interest and costs that may accrue, shall be a

6

judgment in favor of the Commonwealth on the person's property,

7

but only after the judgment has been entered and docketed of

8

record by the prothonotary of the county where the property is

9

situated. The department may transmit to prothonotaries of the

10

various counties certified copies of all judgments, and it shall

11

be the duty of each prothonotary to enter and docket them of

12

record in the prothonotary's office and index them as judgments

13

are indexed, without requiring payment of costs as a condition

14

precedent to entry.

15

§ 3261.  Third party liability.

16

If a person other than a well operator renders a service or

17

product to a well or well site, that person is liable with the

18

well owner or operator for violations of this chapter arising

19

out of and caused by the person's actions at the well or well

20

site, in accordance with State law.

21

§ 3262.  Inspection reports.

22

The department shall post inspection reports on its publicly

23

accessible Internet website. The inspection reports shall

24

include:

25

(1)  The nature and description of violations.

26

(2)  The operator's written response to the violation, if

27

available.

28

(3)  The status of the violation.

29

(4)  The remedial steps taken by the operator or the

30

department to address the violation.

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1

SUBCHAPTER F

2

MISCELLANEOUS PROVISIONS

3

Sec.

4

3271.  Well plugging funds.

5

3272.  (Reserved).

6

3273.  Effect on department authority.

7

3273.1.  Relationship to solid waste and surface mining.

8

3274.  Regulations.

9

§ 3271. Well plugging funds.

10

(a)  Appropriation.--Fines, civil penalties and permit and

11

registration fees collected under this chapter are appropriated

12

to the department to carry out the purposes of this chapter.

13

(b)  Surcharge.--To aid in indemnifying the Commonwealth for

14

the cost of plugging abandoned wells, a $50 surcharge is added

15

to the permit fee established by the department under section

16

3211 (relating to well permits) for new wells. Money collected

17

as a result of the surcharge shall be paid into a restricted

18

revenue account in the State Treasury to be known as the

19

Abandoned Well Plugging Fund and expended by the department to

20

plug abandoned wells threatening the health and safety of

21

persons or property or pollution of waters of this Commonwealth.

22

(c)  Orphan Well Plugging Fund.--The following shall apply:

23

(1)  A restricted revenue account to be known as the

24

Orphan Well Plugging Fund is created. A $100 surcharge for

25

wells to be drilled for oil production and a $200 surcharge

26

for wells to be drilled for gas production are added to the

27

permit fee established by the department under section 3211

28

for new wells. The surcharges shall be placed in the Orphan

29

Well Plugging Fund and expended by the department to plug

30

orphan wells. If an operator rehabilitates a well abandoned

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1

by another operator or an orphan well, the permit fee and the

2

surcharge for the well shall be waived.

3

(2)  The department shall study its experience in

4

implementing this section and shall report its findings to

5

the Governor and the General Assembly by August 1, 1992. The

6

report shall contain information relating to the balance of

7

the fund, number of wells plugged, number of identified wells

8

eligible for plugging and recommendations as to alternative

9

funding mechanisms.

10

(3)  Expenditures by the department for plugging orphan

11

wells are limited to fees collected under this chapter. No

12

money from the General Fund shall be expended for this

13

purpose.

14

§ 3272.  (Reserved).

15

§ 3273.  Effect on department authority.

16

This chapter does not affect, limit or impair any right or

17

authority of the department under the act of June 22, 1937

18

(P.L.1987, No.394), known as The Clean Streams Law; the act of

19

January 8, 1960 (1959 P.L.2119, No.787), known as the Air

20

Pollution Control Act; the act of November 26, 1978 (P.L.1375,

21

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

22

act of July 7, 1980 (P.L.380, No.97), known as the Solid Waste

23

Management Act.

24

§ 3273.1.  Relationship to solid waste and surface mining.

25

(a)  General rule.--The obligation to obtain a permit and

26

post a bond under Articles III and V of the act of July 7, 1980

27

(P.L.380, No.97), known as the Solid Waste Management Act, and

28

to provide public notice under section 1905-A(b)(1)(v) of the

29

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

30

Administrative Code of 1929, for any pit, impoundment, method or

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1

facility employed for the disposal, processing or storage of

2

residual wastes generated by the drilling of an oil or gas well

3

or from the production of wells which is located on the well

4

site, shall be considered to have been satisfied if the owner or

5

operator of the well meets the following conditions:

6

(1)  the well is permitted under the requirements of

7

section 3211 (relating to well permits) or registered under

8

section 3213 (relating to well registration and

9

identification);

10

(2)  the owner or operator has satisfied the financial

11

security requirements of section 3225 (relating to bonding)

12

by obtaining a surety or collateral bond for the well and

13

well site; and

14

(3)  the owner or operator maintains compliance with this

15

chapter and applicable regulations of the Environmental

16

Quality Board.

17

(b)  Noncoal surface mining.--Obligations under the act of

18

December 19, 1984 (P.L.1093, No.219), known as the Noncoal

19

Surface Mining Conservation and Reclamation Act, or a   

20

regulation promulgated under the Noncoal Surface Mining

21

Conservation and Reclamation Act, for any borrow area where

22

minerals are extracted solely for the purpose of oil and gas

23

well development, including access road construction, shall be

24

considered to have been satisfied if the owner or operator of

25

the well meets the conditions imposed under subsection (a)(1)

26

and (2) and maintains compliance with this chapter and

27

applicable regulations of the Environmental Quality Board.

28

(c)  Solid Waste Management Act.--This section does not

29

diminish or otherwise affect duties or obligations of an owner

30

or operator under the Solid Waste Management Act. This section

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1

does not apply to waste classified as hazardous waste under the

2

Solid Waste Management Act or the Resource Conservation and

3

Recovery Act of 1976 (Public Law 94-580, 90 Stat. 2795, 42

4

U.S.C. § 6901 et seq.).

5

(d)  Definition.--As used in this section, the term "well

6

site" means areas occupied by all equipment or facilities

7

necessary for or incidental to drilling, production or plugging

8

a well.

9

§ 3274.  Regulations.

10

The Environmental Quality Board shall promulgate regulations

11

to implement this chapter.

12

CHAPTER 33

13

LOCAL ORDINANCES RELATING TO

14

OIL AND GAS OPERATIONS

15

Sec.

16

3301.  Definitions.

17

3302.  Oil and gas operations regulated pursuant to Chapter 32.

18

3303.  Oil and gas operations regulated by environmental acts.

19

3304.  Uniformity of local ordinances.

20

3305.  Commission.

21

3306.  Civil actions.

22

3307.  Attorney fees and costs.

23

3308.  Ineligibility.

24

3309.  Applicability.

25

§ 3301.  Definitions.

26

The following words and phrases when used in this chapter

27

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

28

context clearly indicates otherwise:

29

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

30

within which individuals live or customarily work.

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1

"Commission."  The Pennsylvania Public Utility Commission.

2

"Environmental acts."  All statutes enacted by the

3

Commonwealth relating to the protection of the environment or

4

the protection of public health, safety and welfare, that are

5

administered and enforced by the department or by another

6

Commonwealth agency, including an independent agency, and all

7

Federal statutes relating to the protection of the environment,

8

to the extent those statutes regulate oil and gas operations.

9

"Local government."  A county, city, borough, incorporated

10

town or township of this Commonwealth.

11

"Local ordinance."  An ordinance or other enactment,

12

including a provision of a home rule charter, adopted by a local

13

government that regulates oil and gas operations.

14

"MPC."  The act of July 31, 1968 (P.L.805, No.247), known as

15

the Pennsylvania Municipalities Planning Code.

16

"Oil and gas operations."  The term includes the following:

17

(1)  well location assessment, including seismic

18

operations, well site preparation, construction, drilling,

19

hydraulic fracturing and site restoration associated with an

20

oil or gas well of any depth;

21

(2)  water and other fluid storage or impoundment areas

22

used exclusively for oil and gas operations;

23

(3)  construction, installation, use, maintenance and

24

repair of:

25

(i)  oil and gas pipelines;

26

(ii)  natural gas compressor stations; and

27

(iii)  natural gas processing plants or facilities

28

performing equivalent functions; and

29

(4)  construction, installation, use, maintenance and

30

repair of all equipment directly associated with activities

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1

specified in paragraphs (1), (2) and (3), to the extent that:

2

(i)  the equipment is necessarily located at or

3

immediately adjacent to a well site, impoundment area,

4

oil and gas pipeline, natural gas compressor station or

5

natural gas processing plant; and

6

(ii)  the activities are authorized and permitted

7

under the authority of a Federal or Commonwealth agency.

8

"Permitted use."  A use which, upon submission of written

9

notice to and receipt of a permit issued by a zoning officer or

10

equivalent official, is authorized to be conducted without

11

restrictions other than those set forth in section 3304

12

(relating to uniformity of local ordinances).

13

§ 3302.  Oil and gas operations regulated pursuant to Chapter

14

32.

15

Except with respect to local ordinances adopted pursuant to

16

the MPC and the act of October 4, 1978 (P.L.851, No.166), known

17

as the Flood Plain Management Act, all local ordinances

18

purporting to regulate oil and gas operations regulated by

19

Chapter 32 (relating to development) are hereby superseded. No

20

local ordinance adopted pursuant to the MPC or the Flood Plain

21

Management Act shall contain provisions which impose conditions,

22

requirements or limitations on the same features of oil and gas

23

operations regulated by Chapter 32 or that accomplish the same

24

purposes as set forth in Chapter 32. The Commonwealth, by this

25

section, preempts and supersedes the regulation of oil and gas

26

operations as provided in this chapter.

27

§ 3303.  Oil and gas operations regulated by environmental acts.

28

Notwithstanding any other law to the contrary, environmental

29

acts are of Statewide concern and, to the extent that they

30

regulate oil and gas operations, occupy the entire field of

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1

regulation, to the exclusion of all local ordinances. The

2

Commonwealth by this section, preempts and supersedes the local

3

regulation of oil and gas operations regulated by the

4

environmental acts, as provided in this chapter.

5

§ 3304.  Uniformity of local ordinances.

6

(a)  General rule.--In addition to the restrictions contained

7

in sections 3302 (relating to oil and gas operations regulated

8

pursuant to Chapter 32) and 3303 (relating to oil and gas

9

operations regulated by environmental acts), all local

10

ordinances regulating oil and gas operations shall allow for the

11

reasonable development of oil and gas resources.

12

(b)  Reasonable development of oil and gas resources.--In

13

order to allow the for the reasonable development of oil and gas

14

resources, a local ordinance:

15

(1)  Shall allow well and pipeline location assessment

16

operations, including seismic operations and related

17

activities conducted in accordance with all applicable

18

Federal and State laws and regulations relating to the

19

storage and use of explosives throughout every local

20

government.

21

(2)  May not impose conditions, requirements or

22

limitations on the construction of oil and gas operations

23

that are more stringent than conditions, requirements or

24

limitations imposed on construction activities for other

25

industrial uses within the geographic boundaries of the local

26

government.

27

(3)  May not impose conditions, requirements or

28

limitations on the heights of structures, screening and

29

fencing, lighting or noise relating to permanent oil and gas

30

operations that are more stringent than the conditions,

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1

requirements or limitations imposed on other industrial uses

2

or other land development within the particular zoning

3

district where the oil and gas operations are situated within

4

the local government.

5

(4)  Shall have a review period for permitted uses that

6

does not exceed 30 days for complete submissions or that does

7

not exceed 120 days for conditional uses.

8

(5)  Shall authorize oil and gas operations, other than

9

activities at impoundment areas, compressor stations and

10

processing plants, as a permitted use in all zoning

11

districts.

12

(5.1)  Notwithstanding section 3215 (relating to well

13

location restrictions), may prohibit, or permit only as a

14

conditional use, wells or well sites otherwise permitted

15

under paragraph (5) within a residential district if the

16

well site cannot be placed so that the wellhead is at least

17

500 feet from any existing building. In a residential

18

district, all of the following apply:

19

(i)  A well site may not be located so that the outer

20

edge of the well pad is closer than 300 feet from an

21

existing building.

22

(ii)  Except as set forth in paragraph (5) and this

23

paragraph, oil and gas operations, other than the

24

placement, use and repair of oil and gas pipelines, water

25

pipelines, access roads or security facilities, may not

26

take place within 300 feet of an existing building.

27

(6)  Shall authorize impoundment areas used for oil and

28

gas operations as a permitted use in all zoning districts,

29

provided that the edge of any impoundment area shall not be

30

located closer than 300 feet from an existing building.

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1

(7)  Shall authorize natural gas compressor stations as a

2

permitted use in agricultural and industrial zoning districts

3

and as a conditional use in all other zoning districts, if

4

the natural gas compressor building meets the following

5

standards:

6

(i)  is located 750 feet or more from the nearest

7

existing building or 200 feet from the nearest lot line,

8

whichever is greater, unless waived by the owner of the

9

building or adjoining lot; and

10

(ii)  the noise level does not exceed a noise

11

standard of 60dbA at the nearest property line or the

12

applicable standard imposed by Federal law, whichever is

13

less.

14

(8)  Shall authorize a natural gas processing plant as a

15

permitted use in an industrial zoning district and as

16

conditional uses in agricultural zoning districts if all of

17

the following apply:

18

(i)  The natural gas processing plant building is

19

located at the greater of at least 750 feet from the

20

nearest existing building or at least 200 feet from the

21

nearest lot line unless waived by the owner of the

22

building or adjoining lot.

23

(ii)  The noise level of the natural gas processing

24

plant building does not exceed a noise standard of 60dbA

25

at the nearest property line or the applicable standard

26

imposed by Federal law, whichever is  less.

27

(9)  Shall impose restrictions on vehicular access routes

28

for overweight vehicles only as authorized under 75 Pa.C.S.

29

(relating to vehicles) or the MPC.

30

(10)  May not impose limits or conditions on subterranean

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1

operations or hours of operation of compressor stations and

2

processing plants or hours of operation for the drilling of

3

oil and gas wells or the assembly and disassembly of drilling

4

rigs.

5

(11)  May not increase setback distances set forth in

6

Chapter 32 (relating to development) or this chapter. A local

7

ordinance may impose setback distances that are not regulated

8

by or set forth in Chapter 32 or this chapter if the setbacks

9

are no more stringent than those for other industrial uses

10

within the geographic boundaries of the local government.

11

§ 3305.  Commission.

12

(a)  Advisory opinions to municipalities.--

13

(1)  A municipality may, prior to the enactment of a

14

local ordinance, in writing, request the commission to review

15

a proposed local ordinance to issue an opinion on whether it

16

violates the MPC, this chapter or Chapter 32 (relating to

17

development).

18

(2)  Within 120 days of receiving a request under

19

paragraph (1), the commission shall, in writing, advise the

20

municipality whether or not the local ordinance violates the

21

MPC, this chapter or Chapter 32.

22

(3)  An opinion under this subsection shall be advisory

23

in nature and not subject to appeal.

24

(b)  Orders.--

25

(1)  An owner or operator of an oil or gas operation, or

26

a person residing within the geographic boundaries of a local

27

government, who is aggrieved by the enactment or enforcement

28

of a local ordinance may request the commission to review the

29

local ordinance of that local government to determine whether

30

it violates the MPC, this chapter or Chapter 32.

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1

(2)  Participation in the review by the commission shall

2

be limited to parties specified in paragraph (1) and the

3

municipality which enacted the local ordinance.

4

(3)  Within 120 days of receiving a request under this

5

subsection, the commission shall issue an order to determine

6

whether the local ordinance violates the MPC, this chapter or

7

Chapter 32.

8

(4)  An order under this subsection shall be subject to

9

de novo review by the Commonwealth Court. A petition for

10

review must be filed within 30 days of the date of service of

11

the commission's order. The order of the commission shall be

12

made part of the record before the court.

13

(c)  Exemptions.--An opinion under subsection (a) and an

14

order under subsection (b) shall not be subject to:

15

(1)  2 Pa.C.S. Ch. 5 Subch. A (relating to practice and

16

procedure of Commonwealth agencies);

17

(2)  65 Pa.C.S. Ch. 7 (relating to open meetings); or

18

(3)  66 Pa.C.S. Ch. 3  Subch. B (relating to

19

investigations and hearings).

20

(d)  Authority.--The commission has the following powers to

21

carry out this chapter:

22

(1)  Employ individuals.

23

(2)  Issue orders.

24

(3)  Promulgate regulations.

25

(4)  Until January 1, 2013, promulgate temporary

26

regulations. Regulations under this paragraph:

27

(i)  shall expire no later than two years following

28

the effective date of this section; and

29

(ii)  are exempt from:

30

(A)  sections 201, 202 and 203 of the act of July

- 166 -

 


1

31, 1968 (P.L.769, No.240), referred to as the

2

Commonwealth Documents Law; and

3

(B)  the act of June 25, 1982 (P.L.633, No.181),

4

known as the Regulatory Review Act.

5

§ 3306.  Civil actions.

6

The following shall apply:

7

(1)  Notwithstanding any provision of 42 Pa.C.S. Ch. 85

8

Subch. C (relating to actions against local parties), any

9

person who is aggrieved by the enactment or enforcement of a

10

local ordinance that violates the MPC, this chapter or

11

Chapter 32 may bring an action in Commonwealth Court to

12

invalidate the ordinance or enjoin its enforcement.

13

(2)  An aggrieved person may proceed under this section

14

without first obtaining review of the ordinance by the

15

commission.

16

(3)  In an action relating to the enactment or

17

enforcement of a local ordinance, a determination of the

18

commission made under section 3305(b) (relating to

19

commission) shall become part of the record before the court.

20

§ 3307.  Attorney fees and costs.

21

In an action brought under section 3306 (relating to civil

22

actions), the court may do any of the following:

23

(1)  If the court determines that the local government

24

enacted or enforced a local ordinance with willful or

25

reckless disregard of the MPC, this chapter or Chapter 32

26

(relating to development), it may order the local government

27

to pay the plaintiff reasonable attorney fees and other

28

reasonable costs incurred by the plaintiff in connection with

29

the action.

30

(2)  If the court determines that the action brought by

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1

the plaintiff was frivolous or was brought without

2

substantial justification in claiming that the local

3

ordinance in question was contrary to the MPC, this chapter

4

or Chapter 32, it may order the plaintiff to pay the local

5

government reasonable attorney fees and other reasonable

6

costs incurred by the local government in defending the

7

action.

8

§ 3308.  Ineligibility.

9

If the commission, the Commonwealth Court or the Supreme

10

Court issues an order that a local ordinance violates the MPC,

11

this chapter or Chapter 32 (relating to development), the

12

municipality enacting or enforcing the local ordinance shall be

13

immediately ineligible to receive any funds collected under

14

Chapter 23 (relating to unconventional gas well fee). The local

15

government shall remain ineligible to receive funds under

16

Chapter 23 until the local government amends or repeals its

17

ordinance in accordance with this chapter or the order or

18

determination that the local ordinance is unlawful is reversed

19

on appeal.

20

§ 3309.  Applicability.

21

(a)  Ordinances.--This chapter shall apply to the enforcement

22

of local ordinances existing on the effective date of this

23

chapter and to the enactment or enforcement of a local ordinance

24

enacted on or after the effective date of this chapter.

25

(b)  Local governments.--A local government that has enacted

26

a local ordinance relating to oil and gas operations prior to

27

the effective date of this chapter shall have 120 days from the

28

effective date of this chapter to review and amend an ordinance

29

in order to comply with this chapter.

30

CHAPTER 35

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1

RESPONSIBILITY FOR FEE

2

Sec.

3

3501.  Declaration of policy.

4

3502.  Prohibition.

5

3503.  Existing agreements.

6

3504.  Future agreements.

7

§ 3501.  Declaration of policy.

8

The General Assembly finds and declares as follows:

9

(1)  The enactment of this chapter is an exercise of the

10

authority of the Commonwealth to safeguard the vital

11

interests of its citizens.

12

(2)  This chapter is intended to advance the significant

13

and legitimate public purpose of ensuring that entities

14

responsible for the impacts of unconventional oil and gas

15

well development are solely responsible for payment of impact

16

fees.

17

§ 3502.  Prohibition.

18

A producer may not make the fee authorized under Chapter 23

19

(relating to unconditional gas well fee) an obligation,

20

indebtedness or liability of a landowner, leaseholder or other

21

person in possession of real property, upon which the removal or

22

extraction occurs.

23

§ 3503.  Existing agreements.

24

A provision of an agreement in existence prior to the

25

effective date of this section which violates section 3502

26

(relating to prohibition) is declared to be illegal and contrary

27

to public policy and shall be null and void.

28

§ 3504.  Future agreements.

29

On or after the effective date of this section, a provision

30

of an agreement in violation of section 3502 (relating to

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1

prohibition) is declared to be illegal and contrary to public

2

policy and shall be null and void.

3

Section 2.  For fiscal year 2011-2012, $250,000 is

4

appropriated from the General Fund to the Pennsylvania Public

5

Utility Commission for costs associated with implementation of

6

this act.

7

Section 3.  Repeals are as follows:

8

(1)  The General Assembly declares that the repeal under

9

paragraph (2) is necessary to effectuate the addition of 58

10

Pa.C.S. Ch. 32.

11

(2)  The act of December 19, 1984 (P.L.1140, No.223),

12

known as the Oil and Gas Act, is repealed.

13

Section 4.  The addition of 58 Pa.C.S. Ch. 32 and 58 Pa.C.S.

14

§ 3302 is a continuation of the act of December 19, 1984

15

(P.L.1140, No.223), known as the Oil and Gas Act. The following

16

apply:

17

(1)  Except as otherwise provided in 58 Pa.C.S. Ch. 32 or

18

33, all activities initiated under the Oil and Gas Act shall

19

continue and remain in full force and effect and may be

20

completed under 58 Pa.C.S. Chs. 32 and 33. Orders,

21

regulations, rules and decisions which were made under the

22

Oil and Gas Act and which are in effect on the effective date

23

of section 3(2) of this act shall remain in full force and

24

effect until revoked, vacated or modified under 58 Pa.C.S.

25

Ch. 32 or 33. Except as provided in 58 Pa.C.S. Ch. 35,

26

contracts, obligations and collective bargaining agreements

27

entered into under the Oil and Gas Act are not affected nor

28

impaired by the repeal of the Oil and Gas Act.

29

(2)  Except as set forth in paragraph (3), any difference

30

in language between 58 Pa.C.S. Ch. 32 and the Oil and Gas Act

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1

is intended only to conform to the style of the Pennsylvania

2

Consolidated Statutes and is not intended to change or affect

3

the legislative intent, judicial construction or

4

administration and implementation of the Oil and Gas Act.

5

(3)  Paragraph (2) does not apply to the addition of the

6

following provisions of 58 Pa.C.S.:

7

(i)  Section 3203.

8

(ii)  Section 3211.

9

(iii)  Section 3212.1.

10

(iv)  Section 3215.

11

(v)  Section 3216.

12

(vi)  Section 3218.

13

(vii)  Section 3218.1.

14

(viii)  Section 3218.2.

15

(ix)  Section 3218.3.

16

(x)  Section 3218.4.

17

(xi)  Section 3218.5.

18

(xii)  Section 3219.1.

19

(xiii)  Section 3222.

20

(xiv)  Section 3222.1.

21

(xv)  Section 3225.

22

(xvi)  Section 3227.

23

(xvii)  Section 3252.

24

(xviii)  Section 3253.

25

(xix)  Section 3254.1.

26

(xx)  Section 3255.

27

(xxi)  Section 3256.

28

(xxii)  Section 3258.

29

(xxiii)  Section 3261.

30

(xxiv)  Section 3262.

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1

(4)  Any difference in language between 58 Pa.C.S. § 3302

2

and section 602 of the Oil and Gas Act is intended only to

3

conform to the style of the Pennsylvania Consolidated

4

Statutes and is not intended to change or affect the

5

legislative intent, judicial construction or administration

6

and implementation of section 602 of the Oil and Gas Act.

7

Section 5.  The addition of 58 Pa.C.S. Ch. 23 shall apply to

8

all oil and gas deposits and oil and gas development activities

9

and operations subject to the jurisdiction of the Commonwealth.

10

With respect to oil and gas deposits on national forest lands

11

identified under section 17(o) of the Mineral Leasing Act (106

12

Stat. 3108, 30 U.S.C. § 226(o)), the application of regulations

13

and statutes adopted by the Commonwealth shall be the exclusive

14

method and means by which any requirements may be imposed on any

15

feature, aspect or process of oil and gas operations pertaining

16

to the development of the deposits.

17

Section 6.  It is not the intent of the General Assembly to

18

change, repeal or otherwise affect any of the provisions of the

19

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

20

and Gas Resource Coordination Act, or to change, repeal or

21

otherwise affect any of the provisions of the act of January 26,

22

2011 (P.L.7, No.2), entitled "An act amending the act of

23

December 18, 1984 (P.L.1069, No.214), entitled 'An act requiring

24

coordination of coal mine and gas well operators; authorizing

25

Department of Environmental Resources enforcement powers; and

26

providing penalties,' further providing for definitions, for

27

permits, for permit application, for minimum distance between

28

gas wells, for well class designation and for coordination of

29

gas well drilling through active coal mines; providing for a

30

pillar support study; and further providing for plugging gas

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1

wells penetrating workable coal seams, for penalties and for

2

validity of other laws," which amended the Coal and Gas Resource

3

Coordination Act.

4

Section 7.  Within 90 days of the effective date of this

5

section, the Department of Transportation shall issue a

6

statement of policy, effective upon publication in the

7

Pennsylvania Bulletin, adopting an appropriate methodology to

8

provide letters of local determination that identify particular

9

vehicles, routes or uses as local in nature. The Department of

10

Transportation may determine that hauling related to

11

unconventional oil and gas development is excluded from local

12

traffic status based on its disproportionate and qualitatively

13

different impact upon highways and bridges. The methodology

14

shall allow for exemptions from 67 Pa. Code Ch. 189 (relating to

15

hauling in excess of posted weight limit) related to at-risk

16

industry sectors in this Commonwealth that have experienced a

17

20% or more decline in Statewide employment since 2002 or that

18

demonstrate other evidence of economic decline as determined by

19

the department in consultation with the Department of Labor and

20

Industry. The exemptions and related requirements shall remain

21

in existence until December 31, 2015.

22

Section 8.  The Energy Executive of the Governor shall

23

consult with the Department of Environmental Protection, the

24

Pennsylvania Public Utility Commission, State legislators, local

25

government organizations, natural gas industry representatives,

26

conservationists and other affected entities on the issue of

27

pipeline placement for natural gas gathering lines in this

28

Commonwealth. The Energy Executive of the Governor shall submit

29

a report summarizing pipeline placement for natural gas

30

gathering lines and make his recommendations to the General

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1

Assembly within one year of the effective date of this section.

2

Section 9.  This act shall take effect as follows:

3

(1)  The following provisions shall take effect

4

immediately:

5

(i)  The addition of 58 Pa.C.S. Ch. 23.

6

(ii)  Section 6 of this act.

7

(iii)  Section 7 of this act.

8

(iv)  This section.

9

(2)  The remainder of this act shall take effect in 60

10

days.

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