AN ACT

 

1Requiring the Environmental Quality Board to differentiate
2regulations relating to conventional oil and gas wells and
3unconventional gas wells in this Commonwealth.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Short title.

7This act shall be known and may be cited as the Pennsylvania
8Conventional Oil and Gas Well Regulation Act.

9Section 2. Legislative findings and declarations.

10The General Assembly finds and declares as follows:

11(1) The conventional oil and gas industry has had a
12benign impact on human health and the environment in this
13Commonwealth since the former act of December 19, 1984
14(P.L.1140, No.223), known as the Oil and Gas Act, was
15enacted.

16(2) Small businesses, which are often located in small

1towns and rural areas of this Commonwealth, have
2traditionally comprised much of the conventional oil and gas
3industry in this Commonwealth.

4(3)  Regulations for the conventional oil and gas
5industry must permit the optimal development of oil and gas
6resources of this Commonwealth, protect the health, safety,
7environment and property of the citizens of this Commonwealth
8and not unreasonably hamper the ability of this Commonwealth
9to compete effectively with other states.

10(4) The provisions of 58 Pa.C.S. (relating to oil and
11gas) create standards for unconventional gas wells that are
12not applicable to conventional oil and gas wells.

13(5) The regulations promulgated by the Environmental
14Quality Board under 58 Pa.C.S. and other laws of this
15Commonwealth relating to conventional oil and gas wells or
16unconventional gas wells should differentiate between
17conventional oil and gas wells and unconventional gas wells.

18Section 3. Definitions.

19The following words and phrases when used in this act shall
20have the meanings given to them in this section unless the
21context clearly indicates otherwise:

22"Conventional oil and gas well."  A bore hole drilled for the
23purpose of producing oil or gas from a conventional formation.
24Irrespective of technology or design, the term includes any of
25the following:

26(1) A well drilled to produce oil.

27(2) A well drilled to produce natural gas from
28formations other than shale formations.

29(3) A well drilled to produce natural gas from shale
30formations located above the base of the Elk Group or its

1stratigraphic equivalent.

2(4) A well drilled to produce natural gas from shale
3formations located below the base of the Elk Group where
4natural gas can be produced at economic flow rates or in
5economic volumes without the use of vertical or nonvertical
6well bores stimulated by hydraulic fracture treatments or by
7using multilateral well bores or other techniques to expose
8more of the formation to the well bore.

9(5) Irrespective of formation, a well drilled for
10collateral purposes, such as monitoring, geologic logging,
11secondary and tertiary recovery or disposal injection.

12"Unconventional formation." A geological shale formation
13existing below the base of the Elk Sandstone or its geologic
14stratigraphic equivalent where natural gas generally cannot be
15produced at economic flow rates or in economical volumes except
16by vertical or horizontal well bores stimulated by hydraulic
17fracture treatments or by using multilateral well bores or other
18techniques to expose more of the formation to the well bore.

19"Unconventional gas well." A bore hole drilled for the
20purpose of producing gas from an unconventional formation.

21Section 4. Oil and gas well regulations.

22(a) General rule.--Regulations promulgated by the
23Environmental Quality Board under 58 Pa.C.S. (relating to oil
24and gas) or other laws of this Commonwealth relating to
25conventional oil and gas wells or unconventional gas wells shall
26differentiate between conventional oil and gas wells and
27unconventional gas wells.

28(b) Codification.--Regulations under subsection (a) that
29apply to conventional oil and gas wells shall be separate from
30regulations that apply to unconventional gas wells.

1Section 5. Applicability.

2This act shall apply to regulations promulgated on or after
3the effective date of this section.

4Section 6. Effective date.

5This act shall take effect immediately.