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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY MARSHALL, CALTAGIRONE, CREIGHTON, DALEY, DeLUCA, DeWEESE, EVERETT, FLECK, GINGRICH, HESS, MAHONEY, PEIFER, READSHAW, SCAVELLO, SWANGER, TAYLOR, TOBASH AND WATSON, JUNE 8, 2011 |
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| REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, JUNE 8, 2011 |
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| AN ACT |
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1 | Amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated |
2 | Statutes, imposing a natural gas impact fee; establishing the |
3 | Shale Impact Account; and providing for the powers and duties |
4 | of the Department of Environmental Protection and the |
5 | Pennsylvania Public Utility Commission and for a model zoning |
6 | ordinance. |
7 | The General Assembly of the Commonwealth of Pennsylvania |
8 | hereby enacts as follows: |
9 | Section 1. Title 58 of the Pennsylvania Consolidated |
10 | Statutes is amended by adding a part to read: |
11 | PART I |
12 | UNCONVENTIONAL GAS WELLS |
13 | Chapter |
14 | 23. Impact Fee |
15 | 25. Model Ordinance |
16 | CHAPTER 23 |
17 | IMPACT FEE |
18 | Sec. |
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1 | 2301. Definitions. |
2 | 2302. Shale Impact Fee. |
3 | 2303. Administration. |
4 | 2304. Well information. |
5 | 2305. Duties of department. |
6 | 2306. Meters. |
7 | 2307. Commission. |
8 | 2308. Enforcement. |
9 | 2309. Criminal penalties. |
10 | 2310. Criminal grading. |
11 | 2311. Enforcement orders. |
12 | 2312. Administrative penalties. |
13 | 2313. Regulations. |
14 | 2314. Recordkeeping. |
15 | 2315. Examinations. |
16 | 2316. Local distribution of fee. |
17 | 2317. Statewide environmental initiatives. |
18 | § 2301. Definitions. |
19 | The following words and phrases when used in this chapter |
20 | shall have the meanings given to them in this section unless the |
21 | context clearly indicates otherwise: |
22 | "Account." The Shale Impact Account established under |
23 | section 2316 (relating to local distribution of fee). |
24 | "Average annual price of natural gas." The arithmetic mean |
25 | of the New York Mercantile Exchange (NYMEX) Henry Hub settled |
26 | price on the last trading day of each month of a calendar year |
27 | as reported by the Wall Street Journal for the 12-month period |
28 | ending December 31. |
29 | "Barrel." A barrel of 42 U.S. gallons of natural gas |
30 | liquids. |
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1 | "Commission." The Pennsylvania Public Utility Commission. |
2 | "Department." The Department of Environmental Protection of |
3 | the Commonwealth. |
4 | "Eligible applicants." A county, municipality, council of |
5 | governments, watershed organization, institution of higher |
6 | education, nonprofit organization, Pennsylvania Fish and Boat |
7 | Commission or an authorized organization as defined in 27 |
8 | Pa.C.S. § 6103 (relating to definitions). |
9 | "Fee." The Shale Impact Fee imposed under section 2302 |
10 | (relating to Shale Impact Fee). |
11 | "Highway mileage." The number of miles of public roads and |
12 | streets most recently certified by the Department of |
13 | Transportation as eligible for distribution of liquid fuels |
14 | funds under the act of June 1, 1956 (1955 P.L.1944, No.655), |
15 | referred to as the Liquid Fuels Tax Municipal Allocation Law. |
16 | "Marginal gas well." An unconventional gas well capable of |
17 | severing more than 60,000 cubic feet of gas per day during a |
18 | calendar month, but incapable of severing more than 90,000 cubic |
19 | feet of gas per day during a calendar month, including |
20 | production from the zones and multilateral well bores at a |
21 | single well, regardless of whether the production is metered |
22 | separately. |
23 | "Municipality." A borough, city, town or township. |
24 | "Natural gas." A fossil fuel consisting of a mixture of |
25 | hydrocarbon gases, primarily methane, and possibly including |
26 | ethane, propane, butane, pentane, carbon dioxide, oxygen, |
27 | nitrogen and hydrogen sulfide and other gas species. The term |
28 | includes natural gas from oil fields known as associated gas or |
29 | casing head gas, natural gas fields known as nonassociated gas, |
30 | coal beds, shale beds and other formations. The term does not |
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1 | include coal bed methane. |
2 | "Natural gas liquids." Hydrocarbons in natural gas which are |
3 | separated from the gas as liquids through the process of |
4 | absorption, condensation, adsorption or other methods in gas |
5 | processing of cycling plants. |
6 | "Number of producing unconventional wells." The most recent |
7 | numerical count of producing unconventional wells on the |
8 | inventory maintained and provided to the commission by the |
9 | department as of the last day of each month. |
10 | "Price adjustment factor." One of a range of numerical |
11 | values used to compute the adjusted fee under section 2302 |
12 | (relating to Shale Impact Fee). The price adjustment factor |
13 | shall be determined as follows: |
14 | (1) If the average annual price of natural gas is less |
15 | than $5.01, the price adjustment factor shall be five. |
16 | (2) If the average annual price of natural gas is $5.01 |
17 | to $6.00, the price adjustment factor shall be equal to the |
18 | sum of the average annual price plus one. |
19 | (3) If the average annual price of natural gas is $6.01 |
20 | to $7.00, the price adjustment factor shall be equal to the |
21 | sum of the average annual price plus two. |
22 | (4) If the average annual price of natural gas is $7.01 |
23 | to $8.00, the price adjustment factor shall be equal to the |
24 | sum of the average annual price plus three. |
25 | (5) If the average annual price of natural gas is |
26 | greater than $8.00, the price adjustment factor shall be |
27 | equal to the sum of the average annual price plus five. |
28 | "Producer." A person or its subsidiary, affiliate or holding |
29 | company that holds a permit or other authorization to engage in |
30 | the business of severing natural gas for sale, profit or |
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1 | commercial use from an unconventional well in this Commonwealth. |
2 | The term shall not include a producer that severs natural gas |
3 | from a site used to store natural gas that did not originate |
4 | from the site. |
5 | "Unconventional well." A bore hole drilled or being drilled |
6 | for the purpose of or to be used for producing oil or gas from a |
7 | geological formation existing below the base of the Elk |
8 | Sandstone or its geologic equivalent stratigraphic interval |
9 | where oil or gas generally cannot be produced at economic flow |
10 | rates or in economic volumes except by vertical or horizontal |
11 | well bores stimulated by hydraulic fracture treatments or by |
12 | using multilateral well bores or other techniques to expose more |
13 | of the formation of the well bore. |
14 | "Unit." |
15 | (1) A thousand cubic feet of natural gas measured at the |
16 | wellhead at a temperature of 60 degrees Fahrenheit and an |
17 | absolute pressure of 14.73 pounds per square inch in |
18 | accordance with American Gas Association Standards and |
19 | according to Boyle's Law for the measurement of gas under |
20 | varying pressures with deviations as follows: |
21 | (i) The average absolute atmospheric pressure shall |
22 | be assumed to be 14.4 pounds to the square inch, |
23 | regardless of elevation or location of point of delivery |
24 | above sea level or variations in atmospheric pressure |
25 | from time to time. |
26 | (ii) The temperature of the gas passing the meters |
27 | shall be determined by the continuous use of a recording |
28 | thermometer installed to properly record the temperature |
29 | of gas flowing through the meters. The arithmetic average |
30 | of the temperature recorded each 24-hour day shall be |
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1 | used in computing gas volumes. If a recording thermometer |
2 | is not installed, or is installed and not operating |
3 | properly, an average flowing temperature of 60 degrees |
4 | Fahrenheit shall be used in computing gas volume. |
5 | (iii) The specific gravity of the gas shall be |
6 | determined annually by tests made by the use of an |
7 | Edwards of Acme gravity balance, or at intervals as |
8 | necessary. Specific gravity determinations shall be used |
9 | in computing gas volumes. |
10 | (iv) The deviation of the natural gas from Boyle's |
11 | Law shall be determined by annual tests or at other |
12 | shorter intervals as necessary. The apparatus and method |
13 | used in making the test shall be in accordance with |
14 | recommendations of the National Bureau of Standards or |
15 | Report No. 3 of the Gas Measurement Committee of the |
16 | American Gas Association. The results of the test shall |
17 | be used in computing the volume of gas delivered under |
18 | this chapter. |
19 | (2) In the case of natural gas produced in liquid form, |
20 | a unit shall be measured on a 1,000 cubic feet equivalent |
21 | basis, determined using the ratio of 6,000 cubic feet of |
22 | natural gas to one barrel of natural gas liquids. |
23 | "Vertical gas well." An unconventional well which begins as |
24 | a vertical linear bore and is not intentionally deviated from |
25 | the vertical. |
26 | "Volume adjustment factor." One of a range of numerical |
27 | values used to compute the adjusted fee under section 2302 |
28 | (relating to Shale Impact Fee). The volume adjustment factor |
29 | shall be determined as follows: |
30 | (1) If the annual units of production are less than |
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1 | 21,901, the volume adjustment factor shall be zero. |
2 | (2) If the annual units of production are 21,901 to |
3 | 90,000, the volume adjustment factor shall be 0.2. |
4 | (3) If the annual units of production are 90,001 to |
5 | 180,000, the volume adjustment factor shall be 0.3. |
6 | (4) If the annual units of production are 180,001 to |
7 | 360,000, the volume adjustment factor is 0.4. |
8 | (5) If the annual units of production are 360,001 to |
9 | 750,000, the volume adjustment factor is 0.5. |
10 | (6) If the annual units of production are 750,001 to |
11 | 1,000,000, the volume adjustment factor is 0.6. |
12 | (7) If the annual units of production are 1,000,001 to |
13 | 1,350,000, the volume adjustment factor is 0.7. |
14 | (8) If the annual units of production are greater than |
15 | 1,350,001, the volume adjustment factor is 0.8. |
16 | § 2302. Shale Impact Fee. |
17 | (a) Imposition.--There shall be imposed a Shale Impact Fee |
18 | on each unconventional well existing on or after January 1, |
19 | 2010, and producing gas in this Commonwealth. |
20 | (b) Fee.--The fee shall consist of a base fee of $10,000 for |
21 | each unconventional well subject to the following adjustments: |
22 | (1) The fee shall be adjusted by multiplying the base |
23 | fee amount times the volume adjustment factor times the price |
24 | adjustment factor rounded to the nearest $100. |
25 | (2) If the natural gas severed from more than one |
26 | unconventional well is measured by a single wellhead meter, |
27 | the combined volumes of gas produced shall be divided by the |
28 | number of unconventional wells and each producer of an |
29 | unconventional well shall use this quotient in determining |
30 | its volume adjustment factor. |
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1 | (3) The fee for a marginal gas well or vertical gas well |
2 | shall be $10,000 and shall not be subject to adjustment under |
3 | paragraph (1). |
4 | § 2303. Administration. |
5 | (a) Commission.--On or before January 31 of each year, the |
6 | commission shall calculate and determine the average annual |
7 | price of natural gas for the previous calendar year. |
8 | (b) Notice.--Notice of the average annual price shall be |
9 | provided to producers of unconventional wells and shall be |
10 | published on the commission's Internet website. |
11 | (c) Method.--If publication of the New York Mercantile |
12 | Exchange (NYMEX) Henry Hub settled price is discontinued, the |
13 | average annual price of natural gas then in effect shall not be |
14 | adjusted until a comparable method to determine the average |
15 | annual price of natural gas is adopted by commission rule. If |
16 | the base data of the NYMEX Henry Hub settled price is |
17 | substantially revised, the commission shall make appropriate |
18 | changes to ensure that the average annual price of natural gas |
19 | is reasonably consistent with the result that would have been |
20 | attained had the substantial revision not been made. |
21 | (d) Report.--By March 1, 2012, and each March 1 thereafter, |
22 | each producer shall submit a report and payment of the fee with |
23 | the commission on a form prescribed by the commission for the |
24 | previous calendar year. The report shall include the following: |
25 | (1) Annual units of production severed by the producer |
26 | for each unconventional well for the reporting period. |
27 | (2) The number of producing unconventional wells of a |
28 | producer in each county and municipality. |
29 | (e) Report and fee for 2010.--For calendar year 2010, a |
30 | report pursuant to subsection (d)(1) and (2) shall be filed by |
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1 | August 1, 2011, and the fee due shall be paid as follows: |
2 | (1) Fifty percent of the fee shall be paid by August 1, |
3 | 2011. |
4 | (2) Fifty percent of the fee shall be paid by November |
5 | 1, 2011. |
6 | (f) Fee due date.--Except as provided under subsection |
7 | (e)(2), the fee shall be due on the day the report is required |
8 | to be filed. The fee shall become delinquent if not remitted to |
9 | the commission on the reporting date. |
10 | (g) Cost.--Beginning March 2, 2012, and each March 2 |
11 | thereafter, the commission shall determine the reasonable annual |
12 | cost to collect and distribute the fee in accordance with this |
13 | chapter and shall deduct that amount from the total amount of |
14 | fees collected under this chapter. On August 1, 2011, the amount |
15 | to collect and distribute the fee may be deducted from the total |
16 | amount of fees collected for 2010. Fees collected under this |
17 | section are hereby annually appropriated to the commission to |
18 | carry out its duties under this chapter. |
19 | § 2304. Well information. |
20 | (a) List.--The department shall provide the commission with |
21 | a list of all unconventional wells that have received a drilling |
22 | permit from the department. The list shall be updated on a |
23 | monthly basis. |
24 | (b) Updates.--A producer subject to the fee shall notify the |
25 | commission of the following within 30 days after a calendar |
26 | month in which the change occurs: |
27 | (1) The initiation of production at a well or the |
28 | removal of a well from production. |
29 | (2) The use of a different accredited laboratory to |
30 | issue a wellhead meter certification. |
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1 | § 2305. Duties of department. |
2 | (a) Confirmation of payment.--Prior to issuing a permit to |
3 | drill an unconventional well in this Commonwealth, the |
4 | department shall determine whether the producer has paid all |
5 | fees owed under section 2302 (relating to Shale Impact Fee). |
6 | (b) Prohibition.--The department shall not issue a permit to |
7 | drill an unconventional well until all fees owed under section |
8 | 2302 that are not in dispute have been paid to the commission. |
9 | § 2306. Meters. |
10 | A producer who drills an unconventional well in this |
11 | Commonwealth shall provide and maintain a wellhead meter at the |
12 | unconventional well that is tested, calibrated and maintained in |
13 | accordance with industry standards approved by the commission. A |
14 | wellhead meter installed after the effective date of this |
15 | section shall be a digital meter. Wellhead meters shall not be |
16 | subject to 3 Pa.C.S. Ch. 41 (relating to weights and measures). |
17 | Multiple wells located on the same drilling pad may utilize the |
18 | same meter subject to section 2302(b)(2) (relating to Shale |
19 | Impact Fee). |
20 | § 2307. Commission. |
21 | (a) Powers.--The commission shall have the authority to make |
22 | all inquiries and determinations necessary to calculate and |
23 | collect the fee imposed under this chapter, including, if |
24 | applicable, interest and penalties. |
25 | (b) Notice.--If the commission determines that the fee has |
26 | not been paid in full, it may issue a notice of the amount due |
27 | and demand for payment and shall set forth the basis for the |
28 | determination. |
29 | (c) Address.--Notice of failure to pay the correct fee shall |
30 | be sent to the producer at its registered address via certified |
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1 | mail. |
2 | (d) Time period.--The commission may challenge the amount of |
3 | a fee paid under this chapter within three years after the date |
4 | the report under section 2303(d) (relating to administration) is |
5 | filed. |
6 | (e) Intent.--If no report is filed or a producer files a |
7 | false or fraudulent return with the intent to evade the fee, an |
8 | assessment of the amount owed may be made at any time. |
9 | § 2308. Enforcement. |
10 | (a) Assessment.--The commission shall assess interest on any |
11 | delinquent fee at the rate prescribed under section 806 of the |
12 | act of April 9, 1929 (P.L.343, No.176), known as The Fiscal |
13 | Code. |
14 | (b) Penalty.--In addition to the interest under subsection |
15 | (a), if a producer fails to make timely payment of the fee, |
16 | there shall be added to the amount of the fee due a penalty of |
17 | 5% of the amount of the fee if failure to file a timely payment |
18 | is for not more than one month, with an additional 5% penalty |
19 | for each additional month or fraction of a month during which |
20 | the failure continues, not to exceed 25% in the aggregate. |
21 | (c) Timely payment.--If the commission determines that a |
22 | producer has not made a timely payment of the fee, the |
23 | commission shall send a written notice of the amount of the |
24 | deficiency to the producer within 30 days from the date of |
25 | determining the deficiency. If the producer has not provided a |
26 | complete and accurate statement of the volume of gas extracted |
27 | for the payment period, the commission may estimate the volume |
28 | in its deficiency notice. |
29 | (d) Remedies.--The remedies provided under this chapter are |
30 | in addition to any other remedies provided at law or in equity. |
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1 | (e) Lien.--Fines, fees, interest and penalties shall be |
2 | collectible in the manner provided by law for the collection of |
3 | debts. If the producer liable to pay any amount neglects or |
4 | refuses to pay the amount after demand, the amount, together |
5 | with costs which may accrue, shall be a judgment in favor of the |
6 | Commonwealth upon the property of the producer, but only after |
7 | the judgment has been entered and docketed of record by the |
8 | prothonotary of the county where the property is situated. The |
9 | Commonwealth may transmit to the prothonotaries of the |
10 | respective counties certified copies of the judgments, and it |
11 | shall be the duty of each prothonotary to enter and docket the |
12 | same of record in his office and to index each judgment, without |
13 | requiring the payment of costs as a condition precedent to the |
14 | entry of the judgment. |
15 | § 2309. Criminal penalties. |
16 | (a) Offense defined.--It shall be unlawful for any producer |
17 | to: |
18 | (1) Intentionally make or cause to be made a false or |
19 | fraudulent report under this chapter with the intent to |
20 | defraud the Commonwealth. |
21 | (2) Refuse to permit the commission or its authorized |
22 | agents to examine books, records or papers or hinder or |
23 | obstruct the commission in the performance of a duty under |
24 | this chapter. |
25 | (3) Violate 18 Pa.C.S. § 4903 (relating to false |
26 | swearing) or 4904 (relating to unsworn falsification to |
27 | authorities), including a violation in providing or preparing |
28 | information required by this chapter. |
29 | (4) Intentionally fail to make timely payment of the |
30 | fee. |
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1 | (b) Probable cause.--If the commission believes that |
2 | probable cause of a violation under this section exists, the |
3 | commission shall refer the case to the Attorney General for |
4 | investigation. |
5 | § 2310. Criminal grading. |
6 | (a) Summary offense.--Except as set forth in subsection (b), |
7 | a producer that willfully violates this chapter or an order |
8 | issued under this chapter commits a summary offense and shall, |
9 | upon conviction, be sentenced to pay a fine of not less than |
10 | $100 nor more than $1,000 and costs or to a term of imprisonment |
11 | for not more than 30 days, or both. |
12 | (b) Misdemeanor offense.--A producer that commits a second |
13 | or subsequent violation of this chapter or an order of the |
14 | commission commits a misdemeanor and shall, upon conviction, be |
15 | sentenced to pay a fine of not less than $1,000 but not more |
16 | than $10,000 per day for each violation or to imprisonment for a |
17 | period of not more than one year, or both. |
18 | (c) Violations.--Each violation for each separate day and |
19 | each violation of this chapter or order issued under this |
20 | chapter shall constitute a separate offense under subsection (a) |
21 | or (b). |
22 | § 2311. Enforcement orders. |
23 | (a) Issuance.--The commission may issue an order as |
24 | necessary to enforce this chapter. An order issued under this |
25 | section shall take effect upon notice, unless the order |
26 | specifies otherwise. An appeal of the order must be in |
27 | accordance with 66 Pa.C.S. Ch. 3 Subch. B (relating to |
28 | investigations and hearings). |
29 | (b) Compliance.--A producer has the duty to proceed |
30 | diligently to comply with an order issued under subsection (a). |
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1 | If a producer fails to proceed diligently or to comply with an |
2 | order within the time required, the producer shall be guilty of |
3 | contempt and shall be punished by the court in an appropriate |
4 | manner. The commission shall apply to the Commonwealth Court, |
5 | which shall have jurisdiction over matters relating to contempt. |
6 | § 2312. Administrative penalties. |
7 | (a) Civil penalties.--In addition to any other proceeding |
8 | authorized by law, the commission may assess a civil penalty |
9 | upon a producer for the violation of this chapter. In |
10 | determining the amount of the penalty, the commission shall |
11 | consider the willfulness of the violation and other relevant |
12 | factors. |
13 | (b) Separate offense.--Each violation for each separate day |
14 | and each violation of this chapter shall constitute a separate |
15 | offense. |
16 | (c) Limitation of actions.--Notwithstanding any limitation |
17 | in 42 Pa.C.S. Ch. 55 Subch. B (relating to civil actions and |
18 | proceedings), an action under this section must be brought |
19 | within three years of the violation. |
20 | (d) Procedure.--A penalty under this chapter is subject to |
21 | 66 Pa.C.S. Ch. 3 Subch. B (relating to investigations and |
22 | hearings). |
23 | § 2313. Regulations. |
24 | The commission shall promulgate regulations necessary to |
25 | enforce this chapter. |
26 | § 2314. Recordkeeping. |
27 | A producer liable for the fee imposed under this chapter |
28 | shall keep records, make reports and comply with regulations of |
29 | the commission. If necessary, the commission may require a |
30 | producer to make reports, render statements or keep records as |
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1 | the commission deems sufficient to determine liability for the |
2 | fee. |
3 | § 2315. Examinations. |
4 | (a) Access.--The commission or its authorized agents or |
5 | representatives shall: |
6 | (1) Have access to the books, papers and records of any |
7 | producer in order to verify the accuracy and completeness of |
8 | a report filed or fee paid under this chapter. |
9 | (2) Require the preservation of all books, papers and |
10 | records for any period deemed proper not to exceed three |
11 | years from the end of the calendar year to which the records |
12 | relate. |
13 | (3) Examine any employee of a producer under oath |
14 | concerning the severing of natural gas subject to a fee or |
15 | any matter relating to the enforcement of this chapter. |
16 | (4) Compel the production of books, papers and records |
17 | and the attendance of all individuals who the commission |
18 | believes to have knowledge of relevant matters in accordance |
19 | with 66 Pa.C.S. (relating to public utilities). |
20 | (b) Unauthorized disclosure.--Any information obtained by |
21 | the commission as a result of any report, examination, |
22 | investigation or hearing under this chapter shall be |
23 | confidential, except for official purposes, in accordance with |
24 | judicial order or as otherwise provided by law. An individual |
25 | unlawfully divulging the information commits a misdemeanor and |
26 | shall, upon conviction, be sentenced to pay a fine of not more |
27 | than $1,000 and costs of prosecution or to imprisonment for not |
28 | more than one year, or both. |
29 | § 2316. Local distribution of fee. |
30 | (a) Establishment.--There is established in the State |
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1 | Treasury a restricted receipts account to be known as the Shale |
2 | Impact Account to be administered by the commission. |
3 | (b) Deposit.--All fees imposed shall be deposited into the |
4 | account. |
5 | (c) Conservation districts.-- |
6 | (1) On an annual basis, $7,500,000 shall be transferred |
7 | from the account to the Conservation District Fund for |
8 | distribution to county conservation districts pursuant to |
9 | guidelines established by the State Conservation Commission. |
10 | (2) Funds under paragraph (1) shall be distributed in |
11 | accordance with the following: |
12 | (i) One-half shall be distributed using a formula |
13 | developed by the State Conservation Commission consistent |
14 | with the act of May 15, 1945 (P.L.547, No.217), known as |
15 | the Conservation District Law, and the State Conservation |
16 | Commission statement of policy. |
17 | (ii) One-half shall be distributed using a formula |
18 | that divides the annual amount appropriated to each |
19 | county conservation district by the county from the |
20 | county general fund, special fund and grant sources by |
21 | the amount appropriated to county conservation districts |
22 | by counties from the county general fund, special fund |
23 | and grant sources and multiplying the resulting |
24 | percentage by the funds available. |
25 | (d) Distribution.--Following distribution under subsection |
26 | (c), 60% of the revenues remaining in the account are |
27 | appropriated for the purposes authorized under this section. |
28 | Local governments are encouraged, where appropriate, to jointly |
29 | fund projects that cross jurisdictional lines. The commission |
30 | shall distribute the funds appropriated under this subsection as |
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1 | follows within 45 days after the date the fee is remitted: |
2 | (1) Thirty-six percent shall be distributed to counties |
3 | in which producing unconventional gas wells are located. The |
4 | amount for each county shall be determined using a formula |
5 | that divides the number of producing unconventional gas wells |
6 | in the county by the number of producing unconventional gas |
7 | wells in this Commonwealth and multiplies the resulting |
8 | percentage by the amount available for distribution under |
9 | this paragraph. |
10 | (2) Thirty-seven percent shall be distributed to |
11 | municipalities in which producing unconventional gas wells |
12 | are located. The amount for each municipality shall be |
13 | determined using a formula that divides the number of |
14 | producing unconventional gas wells in the municipality by the |
15 | number of producing unconventional gas wells in this |
16 | Commonwealth and multiplies the resulting percentage by the |
17 | amount available for distribution under this paragraph. |
18 | (3) Twenty-seven percent shall be distributed to |
19 | municipalities located in a county in which producing |
20 | unconventional gas wells are located. The amount available |
21 | for distribution in each county shall be determined by |
22 | dividing the number of producing unconventional gas wells in |
23 | the county by the number of producing unconventional gas |
24 | wells in this Commonwealth and multiplying the resulting |
25 | percentage by the amount available for distribution under |
26 | this paragraph. The resulting amount available for |
27 | distribution in each county in which producing unconventional |
28 | gas wells are located shall be distributed to each |
29 | municipality in the county regardless of whether an |
30 | unconventional gas well is located in the municipality as |
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1 | follows: |
2 | (i) One-half shall be distributed to each |
3 | municipality using a formula that divides the population |
4 | of the municipality within the county by the total |
5 | population of the county and multiplies the resulting |
6 | percentage by the amount available for distribution to |
7 | the county under this subparagraph. |
8 | (ii) One-half shall be distributed to each |
9 | municipality using a formula that divides the highway |
10 | mileage of the municipality within the county by the |
11 | total highway mileage of the county and multiplies the |
12 | resulting percentage by the amount available for |
13 | distribution to the county under this subparagraph. |
14 | (e) Use of funds.--A county or municipality receiving funds |
15 | under this subsection shall make use of funds received only for |
16 | the following purposes: |
17 | (1) Construction, reconstruction, maintenance and repair |
18 | of roadways, bridges and public infrastructure. |
19 | (2) Water, storm water and sewer systems, including |
20 | construction, reconstruction, maintenance and repair. |
21 | (3) Emergency preparedness and public safety, including |
22 | police and fire services. |
23 | (4) Environmental programs, including trails, parks and |
24 | recreation, open space, flood plain management, conservation |
25 | districts and agricultural preservation. |
26 | (5) Preservation and reclamation of surface and |
27 | subsurface waters and water supplies. |
28 | (6) Tax reductions, including homestead exclusions. |
29 | (7) Records management, geographic information systems |
30 | and information technology. |
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1 | (8) To provide safe and affordable housing to residents. |
2 | § 2317. Statewide environmental initiatives. |
3 | (a) Deposit and distribution.--Following distribution under |
4 | section 2316(c), 40% of the revenues in the account are |
5 | appropriated for distribution by the commission as follows: |
6 | (1) Eighty percent to the Commonwealth Financing |
7 | Authority to be utilized for grants to eligible applicants |
8 | for the following purposes: |
9 | (i) To implement acid mine drainage abatement and |
10 | cleanup efforts, mine reclamation and to plug abandoned |
11 | and orphaned oil and gas wells. |
12 | (ii) Grants for watershed protection as defined in |
13 | 27 Pa.C.S. § 6103 (relating to definitions). |
14 | (iii) Planning and enforcement authorized under |
15 | section 6 of the act of January 24, 1966 (1965 P.L.1535, |
16 | No.537), known as the Pennsylvania Sewage Facilities Act. |
17 | (iv) Water, storm water and sewer systems, including |
18 | construction, reconstruction, maintenance and repair. |
19 | (v) The planning, acquisition, development, |
20 | rehabilitation and repair of greenways, recreational |
21 | trails, open space, natural areas, community conservation |
22 | and beautification projects, community and heritage parks |
23 | and forest conservation. |
24 | (vi) Flood control and dam safety projects, |
25 | including the removal of dams where appropriate. |
26 | (2) Ten percent to the Motor License Fund. |
27 | (3) Ten percent to the Hazardous Sites Cleanup Fund. |
28 | (b) Restriction on use of proceeds.-- |
29 | (1) Funds shall not be granted to an eligible applicant |
30 | for the purpose of public relations, outreach, |
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1 | communications, lobbying or litigation. |
2 | (2) No property purchased using revenue generated under |
3 | this section may be conveyed or resold to another entity |
4 | without approval from the Department of Conservation and |
5 | Natural Resources. |
6 | (3) Grants may not be used by an authorized organization |
7 | as defined in 27 Pa.C.S. § 6103 for land acquisition unless |
8 | the authorized organization has obtained the written consent |
9 | of the county and municipality in which the land is situated. |
10 | (c) Coordination with other agencies.--The department and |
11 | the Department of Conservation and Natural Resources shall |
12 | review applications for funding as requested by the Commonwealth |
13 | Financing Authority and provide recommendations on priority of |
14 | projects and project approval for consideration by the |
15 | Commonwealth Financing Authority. |
16 | CHAPTER 25 |
17 | MODEL ORDINANCE |
18 | Sec. |
19 | 2501. Model municipal ordinance. |
20 | 2502. Local ordinance. |
21 | § 2501. Model municipal ordinance. |
22 | (a) Purposes.--The purposes of this section are as follows: |
23 | (1) To optimize the development and use of this |
24 | Commonwealth's oil and gas reserves by increasing reasonable |
25 | consistency in zoning and other municipal regulation. |
26 | (2) To foster expeditious and efficient handling of |
27 | municipal oil and gas permitting procedures. |
28 | (3) To allow municipalities to enact regulations under |
29 | the act of July 31, 1968 (P.L.805, No.247), known as the |
30 | Pennsylvania Municipalities Planning Code, and the act of |
|
1 | October 4, 1978 (P.L.851, No.166), known as the Flood Plain |
2 | Management Act, insofar as the regulation is authorized by |
3 | section 2502 (relating to local ordinance) and this section. |
4 | (b) Authority.--The commission shall develop and adopt a |
5 | model ordinance to fulfill the purposes of this section. |
6 | (c) Adoption of provisions.-- |
7 | (1) Within 120 days of the effective date of this |
8 | section, the commission shall, by majority vote, adopt a |
9 | model ordinance for counties and municipalities pertaining to |
10 | oil and gas drilling activities in accordance with the |
11 | Pennsylvania Municipalities Planning Code, as applicable, the |
12 | Flood Plain Management Act and this section. |
13 | (2) The model zoning ordinance shall do all of the |
14 | following: |
15 | (i) Authorize oil and gas development as a permitted |
16 | use by right in all zoning districts except residential |
17 | districts. The commission may develop a model zoning |
18 | ordinance that allows oil and gas development in |
19 | residential zoning districts by conditional use or |
20 | special exception with conditions dependent on the |
21 | density of existing uses within the district and the |
22 | isolation distances achievable in each residential |
23 | district. |
24 | (ii) Authorize natural gas compression stations: |
25 | (A) as a permitted use by right in all |
26 | agricultural, industrial and commercial districts; |
27 | and |
28 | (B) as a conditional use in all other zoning |
29 | districts. |
30 | (iii) Authorize natural gas processing plants: |
|
1 | (A) as a permitted use by right in all |
2 | industrial districts; and |
3 | (B) as a conditional use or special exception in |
4 | agricultural districts. |
5 | (3) The model zoning ordinance shall not do any of the |
6 | following: |
7 | (i) Impose limitations on the hours of operation on |
8 | drilling operations. |
9 | (ii) Impose limitations on noise, light, height or |
10 | security or fencing on drilling operations, natural gas |
11 | compressor stations or natural gas processing plants if |
12 | the limitations are more stringent than limitations |
13 | imposed on construction activities for other similar land |
14 | uses. The model zoning ordinance may include limitations |
15 | on noise, light, height and security and fencing for |
16 | equipment or processes which are unique to the gas |
17 | industry and which are rational, nondiscriminatory and |
18 | reasonably defensible in the particular zone where they |
19 | apply. |
20 | (iii) Have a permit review period for uses by right |
21 | that exceeds 30 days for complete and responsive |
22 | submissions. |
23 | (iv) Impose restrictions on vehicular access routes |
24 | for overweight vehicles except as authorized under: |
25 | (A) 75 Pa.C.S. (relating to vehicles); or |
26 | (B) the Pennsylvania Municipalities Planning |
27 | Code. |
28 | (v) Regulate storm water, erosion and sedimentation |
29 | control or grading where the use is subject to regulation |
30 | by the department through an Erosion and Sedimentation |
|
1 | Control General Permit or similar permit. |
2 | (4) Nothing in this subsection shall limit or preempt a |
3 | county or municipality from action under the act of October |
4 | 4, 1978 (P.L.864, No.167), known as the Storm Water |
5 | Management Act. |
6 | (d) Effect of model ordinance.--An ordinance adopted by a |
7 | county or municipality to regulate oil and gas shall not contain |
8 | more stringent standards than the model ordinance adopted by the |
9 | commission. |
10 | (e) Timing.--The commission shall publish the adopted model |
11 | ordinance in the Pennsylvania Bulletin immediately after its |
12 | adoption and shall disseminate information about the model |
13 | ordinance through the Department of Community and Economic |
14 | Development, municipal associations and other means as the |
15 | commission shall deem appropriate. The costs of the notification |
16 | shall be borne by the Department of Community and Economic |
17 | Development. |
18 | (f) Miscellaneous.--The commission shall review the model |
19 | ordinance annually. Proposed amendments shall be published in |
20 | the Pennsylvania Bulletin within 30 days after their adoption. |
21 | (g) Ordinance.--If an ordinance adopted by a county or |
22 | municipality contains more stringent standards than the model |
23 | ordinance, the county or municipality shall be ineligible to |
24 | receive funding under sections 2316 (relating to local |
25 | distribution of fee) and 2317 (relating to environmental |
26 | initiatives). |
27 | (h) Effective date of model ordinance.--The model ordinance |
28 | shall take effect 70 days following the commission's publication |
29 | of the ordinance in the Pennsylvania Bulletin under this |
30 | section. |
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1 | § 2502. Local ordinance. |
2 | Nothing in this chapter shall impair or infringe upon the |
3 | preemption or supersedure of the regulation of gas wells under |
4 | section 602 of the act of December 19, 1984 (P.L.1140, No.223), |
5 | known as the Oil and Gas Act. |
6 | Section 2. This act shall take effect as follows: |
7 | (1) This section shall take effect immediately. |
8 | (2) The addition of 58 Pa.C.S. § 2501 shall take effect |
9 | immediately. |
10 | (3) The remainder of this act shall take effect in 30 |
11 | days. |
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