Trial Engrossment of Amendment A08194 to Bill 9999 P.N. 9999, Regular Session 2015-2016

HOUSE AMENDED

A08194

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

279

Session of

2015

INTRODUCED BY HUTCHINSON, SCARNATI, AUMENT, STEFANO, WARD,

WHITE, VOGEL, VULAKOVICH, BROWNE AND BROOKS, JANUARY 16, 2015

AS REPORTED FROM COMMITTEE ON ENVIRONMENTAL RESOURCES AND

ENERGY, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 8, 2016

AN ACT

Establishing the Pennsylvania Grade Crude Development Advisory

Council; and providing for duties of the Pennsylvania Grade

Crude Development Advisory Council and the Department of

Environmental Protection and, for administrative support AND

FOR REGULATION OF CONVENTIONAL OIL AND GAS WELLS.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Short title.

This act shall be known and may be cited as the Pennsylvania

Grade Crude Development Advisory Council Act.

Section 2. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in the section unless the

context clearly indicates otherwise:

"Council." The Pennsylvania Grade Crude Development Advisory

Council.

"CONVENTIONAL OIL AND GAS WELL." A BORE HOLE DRILLED OR

BEING DRILLED FOR THE PURPOSE OF OR TO BE USED FOR CONSTRUCTION

OF A WELL REGULATED UNDER 58 PA.C.S. CH. 32 (RELATING TO

DEVELOPMENT) THAT IS NOT AN UNCONVENTIONAL WELL, IRRESPECTIVE OF

TECHNOLOGY OR DESIGN. THE TERM INCLUDES, BUT IS NOT LIMITED TO:

(1) WELLS DRILLED TO PRODUCE OIL.

(2) WELLS DRILLED TO PRODUCE NATURAL GAS FROM FORMATIONS

OTHER THAN SHALE FORMATIONS.

(3) WELLS DRILLED TO PRODUCE NATURAL GAS FROM SHALE

FORMATIONS LOCATED ABOVE THE BASE OF THE ELK GROUP OR ITS

STRATIGRAPHIC EQUIVALENT.

(4) WELLS DRILLED TO PRODUCE NATURAL GAS FROM SHALE

FORMATIONS LOCATED BELOW THE BASE OF THE ELK GROUP WHERE

NATURAL GAS CAN BE PRODUCED AT ECONOMIC FLOW RATES OR IN

ECONOMIC VOLUMES WITHOUT THE USE OF VERTICAL OR NONVERTICAL

WELL BORES STIMULATED BY HYDRAULIC FRACTURE TREATMENTS OR

MULTILATERAL WELL BORES OR OTHER TECHNIQUES TO EXPOSE MORE OF

THE FORMATION TO THE WELL BORE.

(5) IRRESPECTIVE OF FORMATION, WELLS DRILLED FOR

COLLATERAL PURPOSES, SUCH AS MONITORING, GEOLOGIC LOGGING,

SECONDARY AND TERTIARY RECOVERY OR DISPOSAL INJECTION.

"Department." The Department of Environmental Protection of

the Commonwealth.

Section 3. Pennsylvania Grade Crude Development Advisory

Council.

(a) Establishment.--There is established the Pennsylvania

Grade Crude Development Advisory Council.

(b) Composition.--The council shall consist of the following

members:

(1) The Secretary of Community and Economic Development

or the secretary's designee.

(2) The Secretary of Environmental Protection or the

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secretary's designee.

(3) The Secretary of Conservation and Natural Resources

or the secretary's designee.

(3) (4) One member of the Senate appointed by the

President pro tempore of the Senate.

(4) (5) One member of the Senate appointed by the

Minority Leader of the Senate.

(5) (6) One member of the House of Representatives

appointed by the Speaker of the House of Representatives.

(6) (7) One member of the House of Representatives

appointed by the Minority Leader of the House of

Representatives.

(7) (8) The following members appointed by the Governor:

(i) Two representatives One representative of the

Pennsylvania Independent Petroleum Producers.

(ii) Two representatives One representative of the

Pennsylvania Independent Oil and Gas Association.

(iii) Two representatives One representative of the

Pennsylvania Grade Crude Oil Coalition.

(iv) Two representatives One representative of

refineries of Pennsylvania grade crude oil.

(v) One representative of a nonprofit corporation,

which has the purpose of promoting the history and

economic benefits of the conventional oil and gas

industry in this Commonwealth.

(vi) One representative of academia who is a

geologist with an expertise in petroleum geology.

(vii) One representative of academia who is a

hydrologist.

(9) One person with expertise relating to the effects of

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conventional oil and gas drilling on public health.

(10) One resident of a county where conventional oil and

gas drilling is occurring.

(11) One representative of an environmental nonprofit

organization with a mission that includes the promotion of

responsible oil or gas drilling.

among its members.

(d) Meetings.--The council shall meet upon the call of the

chairperson, but not less than semiannually. A simple majority

of the members shall constitute a quorum.

(e) Terms.--

(1) Except as set forth in paragraph (2), the

legislative members of the council shall serve two-year terms

commencing with the first Tuesday in January of odd-numbered

years and may be reappointed upon reelection to office.

(2) Of the initial members appointed by the President

pro tempore of the Senate, the Minority Leader of the Senate,

the Speaker of the House of Representatives and the Minority

Leader of the House of Representatives, members shall serve

until the first Tuesday in January of the first odd-numbered

year after the end of the year during which this section

takes effect.

(3) Of the initial members appointed by the Governor:

(i) Four members shall serve initial terms of one

year.

(ii) Four members shall serve initial terms of two

years.

(iii) Three members shall serve initial terms of

three years.

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(4) After the initial terms, individuals appointed by

the Governor shall serve for a term of three years.

(5) Individuals appointed by the Governor may be

appointed to successive terms.

(f) Vacancies.--Vacancies shall be filled for the remainder

of an unexpired term in the same manner as original

appointments. A member, upon expiration of the term, shall

continue to hold office until a successor is appointed.

(g) Quorum.--A majority of the membership of the council

shall constitute a quorum for the transaction of business.

Action may be taken on a matter before the council by a majority

vote of the full membership of the council.

(h) Compensation.--Council members may not receive

compensation for their services, but shall be reimbursed for all

necessary travel and other reasonable expenses incurred in

connection with the performance of their duties as members.

Section 4. Duties of council.

(a) Duties.--The council shall:

(1) Examine and make recommendations regarding existing

technical regulations promulgated under 58 Pa.C.S. (relating

to oil and gas) and policies implemented by the department

that impact the conventional oil and gas industry of this

Commonwealth.

(2) Explore the development of a regulatory scheme that

provides for environmental oversight and enforcement

specifically applicable to the conventional oil and gas

industry.

(3) Promote the long-term viability of the conventional

oil and gas industry.

(4) Assist the Secretary of Environmental Protection

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with and provide written comments on new departmental policy

that will impact the conventional oil and gas industry of

this Commonwealth, including economic consequences.

(5) Review and comment on the formulation and drafting

of all technical regulations proposed under 58 Pa.C.S.

(6) Provide institutional support for the conventional

oil and gas industry of this Commonwealth by ensuring

effective cooperation and communication among governmental

agencies and the academic and research community.

(7) Recommend appropriate measures relating to the

promotion and development of the conventional oil and gas

industry of this Commonwealth.

(8) Develop a plan to increase Pennsylvania grade crude

oil production in an environmentally responsible way to more

adequately supply the refineries which depend on Pennsylvania

grade crude oil.

(9) Develop a joint working group with the department to

explore and develop an environmentally responsible and

economically viable production water management option.

(10) Perform other duties as necessary or appropriate to

effect the intent and purposes of this act.

(b) Report.--The council shall annually issue a report of

its activities and recommendations under subsection (a) to all

of the following:

(1) The Governor.

(2) The President pro tempore of the Senate.

(3) The Minority Leader of the Senate.

(4) The chairperson and minority chairperson of the

Environmental Resources and Energy Committee of the Senate.

(5) The Speaker of the House of Representatives.

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(6) The Minority Leader of the House of Representatives.

(7) The chairperson and minority chairperson of the

Environmental Resources and Energy Committee of the House of

Representatives.

(8) THE SECRETARY OF ENVIRONMENTAL PROTECTION.

Section 5. Duties of department.

The department shall have the following duties:

(1) To consult with the council on all policies and

technical regulations promulgated under 58 Pa.C.S. (relating

to oil and gas).

(2) To include any written comments of the council

received before the department's submission of a proposed

rulemaking package of technical regulations under 58 Pa.C.S.

to the Environmental Quality Board, as part of its submission

to the Environmental Quality Board.

(3) To provide technical assistance required by the

council to carry out its duties under this act.

Section 6. Administrative support.

The Department of Community and Economic Development shall

provide administrative support, office space and any other

technical assistance required by the council to carry out its

duties under this act SECTIONS 3, 4 AND 5.

SECTION 7. RULEMAKING CONCERNING CONVENTIONAL OIL AND GAS

WELLS.

(A) ABROGATION.--THE GENERAL ASSEMBLY FINDS AND DECLARES

THAT THE RULEMAKING CONCERNING STANDARDS AT OIL AND GAS WELL

SITES APPROVED BY THE ENVIRONMENTAL QUALITY BOARD IN 2016 PRIOR

TO THE EFFECTIVE DATE OF THIS ACT IS ABROGATED INSOFAR AS SUCH

REGULATIONS PERTAIN TO CONVENTIONAL OIL AND GAS WELLS. THIS

SECTION APPLIES REGARDLESS OF THE DATE OF PUBLICATION OF FINAL-

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FORM RULEMAKING IN THE PENNSYLVANIA BULLETIN.

(B) FUTURE RULEMAKING.--ANY RULEMAKING CONCERNING

CONVENTIONAL OIL AND GAS WELLS THAT THE ENVIRONMENTAL QUALITY

BOARD UNDERTAKES AFTER THE EFFECTIVE DATE OF THIS ACT SHALL BE

UNDERTAKEN SEPARATELY AND INDEPENDENTLY OF UNCONVENTIONAL WELLS

OR OTHER SUBJECTS AND SHALL INCLUDE A REGULATORY ANALYSIS FORM

SUBMITTED TO THE INDEPENDENT REGULATORY REVIEW COMMISSION THAT

IS RESTRICTED TO THE SUBJECT OF CONVENTIONAL OIL AND GAS WELLS.

Section 7 8. Effective date.

This act shall take effect immediately.

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