1Amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated
2Statutes, in development, further providing for definitions;
3providing for impoundments; and further providing for
4relationship to solid waste and surface mining.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1. Section 3203 of Title 58 of the Pennsylvania
8Consolidated Statutes is amended by adding definitions to read:

9§ 3203. Definitions.

10The following words and phrases when used in this chapter
11shall have the meanings given to them in this section unless the
12context clearly indicates otherwise:

13* * *

14"Closed containment system." A containment system that
15consists of closed noncorrosive tanks or containers in which
16produced fluids, freshwater, treated water, hydraulic fracturing
17fluid or industrial wastes are stored or contained before,
18during or after the hydraulic fracturing process.

1"Closed loop system." A containment system comprised of a
2series of interconnected, enclosed noncorrosive storage tanks or
3containers which separate liquids, such as produced fluids,
4freshwater, treated water, hydraulic fracturing fluid or
5industrial wastes from solids, minimizing the amount of drilling
6waste and drill cuttings that require disposal, while maximizing
7the amount of drilling fluid which can be recycled and reused in
8the hydraulic fracturing process.

9* * *

10"Impoundment." An open pit, pond, lake, lagoon or trench
11used for the containment of fresh water, produced fluids,
12treated water, hydraulic fracturing fluid or industrial wastes
13that are used in or produced by the practice of hydraulic
14fracturing.

15* * *

16Section 2. Title 58 is amended by adding a section to read:

17§ 3228. Impoundments.

18An operator may not utilize an impoundment for the use of
19storing any produced liquids, treated water, hydraulic
20fracturing fluid or industrial wastes and shall utilize only
21closed containment systems or closed loop systems for the
22storage of those materials.

23Section 3. Section 3273.1(a) of Title 58 is amended to read:

24§ 3273.1. Relationship to solid waste and surface mining.

25(a) General rule.--The obligation to obtain a permit and 
26post 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 
28to provide public notice under section 1905-A(b)(1)(v) of the 
29act of April 9, 1929 (P.L.177, No.175), known as The 
30Administrative Code of 1929, for any [pit, impoundment,] method
 

1or facility employed for the disposal, processing or storage of 
2residual wastes generated by the drilling of an oil or gas well 
3or from the production of wells which is located on the well 
4site, shall be considered to have been satisfied if the owner or 
5operator of the well meets the following conditions:

6(1) the well is permitted under the requirements of
7section 3211 (relating to well permits) or registered under
8section 3213 (relating to well registration and
9identification);

10(2) the owner or operator has satisfied the financial
11security requirements of section 3225 (relating to bonding)
12by obtaining a surety or collateral bond for the well and
13well site; and

14(3) the owner or operator maintains compliance with this
15chapter and applicable regulations of the Environmental
16Quality Board.

17* * *

18Section 4. This act shall take effect in 60 days.