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 Regulations 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
17towns and rural areas of this Commonwealth, have

1traditionally comprised much of the conventional oil and gas
2industry in this Commonwealth.

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

9(4) The provisions of 58 Pa.C.S. (relating to oil and
10gas) create standards for unconventional gas wells that are
11not applicable to conventional oil and gas wells.

12(5) The regulations promulgated by the Environmental
13Quality Board under 58 Pa.C.S. and other laws of this
14Commonwealth relating to conventional oil and gas wells or
15unconventional gas wells should differentiate between
16conventional oil and gas wells and unconventional gas wells.

17Section 3. Definitions.

18The following words and phrases when used in this act shall
19have the meanings given to them in this section unless the
20context clearly indicates otherwise:

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

25(1) A well drilled to produce oil.

26(2) A well drilled to produce natural gas from
27formations other than shale formations.

28(3) A well drilled to produce natural gas from shale
29formations located above the base of the Elk Group or its
30stratigraphic equivalent.

1(4) A well drilled to produce natural gas from shale
2formations located below the base of the Elk Group where
3natural gas can be produced at economic flow rates or in
4economic volumes without the use of vertical or nonvertical
5well bores stimulated by hydraulic fracture treatments or by
6using multilateral well bores or other techniques to expose
7more of the formation to the well bore.

8(5) Irrespective of formation, a well drilled for
9collateral purposes, such as monitoring, geologic logging,
10secondary and tertiary recovery or disposal injection.

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

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

20Section 4. Oil and gas well regulations.

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

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

30Section 5. Applicability.

1This act shall apply to regulations promulgated on or after
2the effective date of this section.

3Section 6. Effective date.

4This act shall take effect immediately.