PRIOR PRINTER'S NO. 682 PRINTER'S NO. 3523
No. 614 Session of 1989
INTRODUCED BY BOWLEY, BLACK, YANDRISEVITS, VAN HORNE,
D. R. WRIGHT, VEON, DISTLER, F. TAYLOR, KOSINSKI, BELFANTI,
PRESTON, TRELLO, JADLOWIEC, BROUJOS, MERRY, SERAFINI, DeWEESE
AND FARGO, MARCH 6, 1989
AS REPORTED FROM COMMITTEE ON CONSERVATION, HOUSE OF
REPRESENTATIVES, AS AMENDED, MAY 22, 1990
AN ACT
1 Amending the act of December 19, 1984 (P.L.1140, No.223), <--
2 entitled "An act relating to the development of oil and gas
3 and coal; imposing duties and powers on the Department of
4 Environmental Resources; imposing notification requirements
5 to protect landowners; and providing for definitions, for
6 various requirements to regulate the drilling and operation
7 of oil and gas wells, for gas storage reservoirs, for various
8 reporting requirements, including certain requirements
9 concerning the operation of coal mines, for well permits, for
10 well registration, for distance requirements, for well casing
11 requirements, for safety device requirements, for storage
12 reservoir obligations, for well bonding requirements, for a
13 Well Plugging Restricted Revenue Account to enforce oil and
14 gas well plugging requirements, for the creation of an Oil
15 and Gas Technical Advisory Board, for oil and gas well
16 inspections, for enforcement and for penalties," further
17 providing for definitions, for well permits, for well
18 registration, for well reporting requirements, for bonding
19 and for unlawful conduct.
20 AMENDING THE ACT OF DECEMBER 19, 1984 (P.L.1140, NO.223), <--
21 ENTITLED "AN ACT RELATING TO THE DEVELOPMENT OF OIL AND GAS
22 AND COAL; IMPOSING DUTIES AND POWERS ON THE DEPARTMENT OF
23 ENVIRONMENTAL RESOURCES; IMPOSING NOTIFICATION REQUIREMENTS
24 TO PROTECT LANDOWNERS; AND PROVIDING FOR DEFINITIONS, FOR
25 VARIOUS REQUIREMENTS TO REGULATE THE DRILLING AND OPERATION
26 OF OIL AND GAS WELLS, FOR GAS STORAGE RESERVOIRS, FOR VARIOUS
27 REPORTING REQUIREMENTS, INCLUDING CERTAIN REQUIREMENTS
28 CONCERNING THE OPERATION OF COAL MINES, FOR WELL PERMITS, FOR
29 WELL REGISTRATION, FOR DISTANCE REQUIREMENTS, FOR WELL CASING
30 REQUIREMENTS, FOR SAFETY DEVICE REQUIREMENTS, FOR STORAGE
31 RESERVOIR OBLIGATIONS, FOR WELL BONDING REQUIREMENTS, FOR A
1 WELL PLUGGING RESTRICTED REVENUE ACCOUNT TO ENFORCE OIL AND
2 GAS WELL PLUGGING REQUIREMENTS, FOR THE CREATION OF AN OIL
3 AND GAS TECHNICAL ADVISORY BOARD, FOR OIL AND GAS WELL
4 INSPECTIONS, FOR ENFORCEMENT AND FOR PENALTIES," FURTHER
5 PROVIDING FOR DEFINITIONS, WELL PERMITS, WELL REGISTRATION,
6 INACTIVE STATUS, PLUGGING REQUIREMENTS, WELL REPORTING
7 REQUIREMENTS, BONDING, THE OIL AND GAS TECHNICAL ADVISORY
8 BOARD, PUBLIC NUISANCES, CIVIL PENALTIES, DETERMINATION OF
9 COMPLIANCE, UNLAWFUL CONDUCT, SURCHARGES FOR NEW WELLS; AND
10 FURTHER PROVIDING FOR LOCAL ORDINANCES.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. The definition of "alteration" in section 103 of <--
14 the act of December 19, 1984 (P.L.1140, No.223), known as the
15 Oil and Gas Act, amended October 9, 1986 (P.L.1431, No.135), is
16 amended to read:
17 Section 103. Definitions.
18 The following words and phrases when used in this act shall
19 have the meanings given to them in this section unless the
20 context clearly indicates otherwise:
21 * * *
22 "Alteration." Any operation which changes the physical
23 characteristics of the well bore, including stimulation or
24 removing, repairing or changing the casing: Provided, however,
25 That, for the purpose of this act only, the term shall not
26 include:
27 (1) repairing or replacing of casing [with casing of the
28 same diameter and length in noncoal areas;
29 (2) repairing or replacing of production casing with
30 casing of the same or smaller diameter and length: Provided,
31 however, That] if the activity does not affect the depth or
32 diameter of the well bore, provided that the use or purpose
33 of the well does not change and provided that the activity
34 complies with regulations promulgated hereunder. However,
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1 this exclusion shall not apply to production casings in coal
2 areas when said production casings are also the coal
3 protection casings and shall not apply when the method of
4 repairing or replacing the casing would affect the coal
5 protection casing;
6 [(3)] (2) nor shall it include stimulation as a normal
7 initial completion procedure nor stimulation used to enhance
8 additional oil or gas zones within the same well bore.
9 * * *
10 Section 2. Sections 201(k), 203(a)(5) and 212(a) of the act
11 are amended to read:
12 Section 201. Well permits.
13 * * *
14 (k) No permit issued pursuant to this section or
15 registration issued pursuant to section 203 may be transferred
16 without prior approval of the department. Requests for approval
17 of such transfer shall be made on forms or in a manner
18 prescribed by the department. The department shall approve or
19 deny the transfer request within 45 days of receipt of a
20 complete and accurate application. The department shall only
21 have the authority to deny such request for the reasons set
22 forth in subsection (e)(4) or (5).
23 * * *
24 Section 203. Well registration.
25 (a) Within one year from the effective date of this act,
26 every person owning or operating a well for which no drilling
27 permit was issued by the department shall register such well on
28 forms or in a manner prescribed by the department, which shall
29 contain the following information:
30 * * *
19890H0614B3523 - 3 -
1 (5) A registration fee of $15 per well[, except that the
2 department may establish] or a blanket registration fee [not
3 to exceed] of $250 [where] for multiple well registration
4 applications which are submitted simultaneously [for wells
5 that are part of the same development project. The blanket
6 registration fee shall bear a reasonable relationship to the
7 administrative costs associated with processing such multiple
8 well registration applications].
9 * * *
10 Section 212. Well reporting requirements.
11 (a) Every well operator shall file with the department, on a
12 form provided by the department, an annual report specifying the
13 amount of production from each well on an individual well basis.
14 Where said data is not available on a well basis, it may be
15 reported on the most well-specific basis available. Annual
16 reports shall also specify the status of each well; however, in
17 subsequent years, only changes in the status need be reported.
18 [All such reports shall be kept confidential for one year after
19 the date the information is required to be filed hereunder. Upon
20 request of the well operator, the department shall extend the
21 period of confidentiality for four years. The total period of
22 confidentiality shall not exceed] The department shall keep all
23 such reports confidential for five years: Provided, however,
24 That the [department] Commonwealth shall have the right to
25 utilize such information in enforcement proceedings, in making
26 designations or determinations under section 1927-A of the act
27 of April 9, 1929 (P.L.177, No.175), known as The Administrative
28 Code of 1929, or in aggregate form for statistical purposes.
29 * * *
30 Section 3. Section 215 of the act, amended October 9, 1986
19890H0614B3523 - 4 -
1 (P.L.1431, No.135), is amended to read:
2 Section 215. Bonding.
3 (a) (1) [Except as provided in subsections (d) and (d.1)
4 hereof, upon] Upon filing an application for a well permit
5 and before continuing to operate any oil or gas well, the
6 owner or operator thereof shall file with the department a
7 bond for the well and the well site on a form to be
8 prescribed and furnished by the department. Any such bond
9 filed with an application for a well permit shall be payable
10 to the Commonwealth and conditioned that the operator shall
11 faithfully perform all of the drilling, water supply
12 replacement, restoration and plugging requirements of this
13 act. Any such bond filed with the department for a well in
14 existence on the effective date of this act shall be payable
15 to the Commonwealth and conditioned that the operator shall
16 faithfully perform all of the water supply replacement,
17 restoration and plugging requirements of this act. The amount
18 of the bond required shall be in the amount of $2,500 per
19 well for at least two years following the effective date of
20 this act, after which time the bond amount may be adjusted by
21 the Environmental Quality Board every two years to reflect
22 the projected costs to the Commonwealth of performing well
23 plugging.
24 (2) In lieu of individual bonds for each well, an owner
25 or operator may file a blanket bond, on a form prepared by
26 the department, covering all of its wells in Pennsylvania as
27 enumerated on the bond form. A blanket bond shall be in the
28 amount of $25,000 for at least two years following the
29 effective date of this act, after which time the bond amount
30 may be adjusted by the Environmental Quality Board every two
19890H0614B3523 - 5 -
1 years to reflect the projected costs to the Commonwealth of
2 performing well plugging.
3 (3) Liability under such bond shall continue until the
4 well has been properly plugged in accordance with this act
5 and for a period of one year after filing of the certificate
6 of plugging with the department. Each bond shall be executed
7 by the operator and a corporate surety licensed to do
8 business in the Commonwealth and approved by the secretary.
9 The operator may elect to deposit cash, [bank] certificates
10 of deposit[,] or automatically renewable irrevocable [bank]
11 letters of credit from financial institutions qualified to
12 issue this type of collateral which may be terminated [by the
13 bank] at the end of a term only upon the [bank] financial
14 institution giving 90 days prior written notice to the
15 permittee and the department or negotiable bonds of the
16 United States Government or the Commonwealth, the
17 Pennsylvania Turnpike Commission, the General State
18 Authority, the State Public School Building Authority or any
19 municipality within the Commonwealth, with the department in
20 lieu of a corporate surety. The cash deposit, [bank]
21 certificate of deposit, amount of such irrevocable letter of
22 credit or market value of such securities shall be equal at
23 least to the sum of the bond. The secretary shall, upon
24 receipt of any such deposit of cash, letters of credit or
25 negotiable bonds, immediately place the same with the State
26 Treasurer, whose duty it shall be to receive and hold the
27 same in the name of the Commonwealth, in trust, for the
28 purpose for which such deposit is made. The State Treasurer
29 shall at all times be responsible for the custody and
30 safekeeping of such deposits. The operator making deposit
19890H0614B3523 - 6 -
1 shall be entitled from time to time to demand and receive
2 from the State Treasurer, on the written order of the
3 secretary, the whole or any portion of any collateral so
4 deposited, upon depositing with him, in lieu thereof, other
5 collateral of the classes herein specified having a market
6 value at least equal to the sum of the bond, and also to
7 demand, receive and recover the interest and income from said
8 negotiable bonds as the same becomes due and payable. Where
9 negotiable bonds, deposited as aforesaid, mature or are
10 called, the State Treasurer, at the request of the owner
11 thereof, shall convert such negotiable bonds into such other
12 negotiable bonds of the classes herein specified as may be
13 designated by the owner. Where notice of intent to terminate
14 a letter of credit is given, the department shall give the
15 operator 30 days' written notice to replace the letter of
16 credit with other acceptable bond guarantees as provided
17 herein and, if the owner or operator fails to replace the
18 letter of credit within the 30-day notification period, the
19 department shall draw upon and convert such letter of credit
20 into cash and hold it as a collateral bond guarantee.
21 (4) (i) An operator who is unable to meet the bonding
22 requirements of this subsection may make phased deposits
23 of collateral to fully collateralize the bond. Such
24 payments shall be based on the number of wells the
25 operator owns or operates. The operator shall make an
26 initial deposit and shall, thereafter, make annual
27 deposits in accordance with the schedule in subparagraph
28 (ii). Interest accumulated by the collateral shall become
29 a part of the bond until such time as the collateral,
30 plus accumulated interest, equals the amount of the
19890H0614B3523 - 7 -
1 required bond. The collateral shall be deposited, in
2 trust, with the State Treasurer as provided in this
3 subsection or with a bank selected by the department
4 which shall act as trustee for the benefit of the
5 Commonwealth to guarantee the operator's compliance with
6 the drilling, water supply replacement, restoration and
7 plugging requirements of this act. The operator shall be
8 required to pay all costs of the trust.
9 (ii) An operator of ten or less existing wells who
10 does not intend to operate additional wells shall deposit
11 $250 per well and shall, thereafter, annually deposit $50
12 per well until the obligations of this subsection are
13 fully met. An operator of 11 to 25 wells or an operator
14 of ten or less wells who intends to obtain one or more
15 permits for additional wells shall deposit $2,500 and
16 shall, thereafter, annually deposit $1,125, plus $250
17 additional per well for each additional well to be
18 permitted that year, until the obligations of this
19 subsection are fully met. An operator of 26 to 100 wells
20 shall deposit $6,250 and shall, thereafter, annually
21 deposit $1,875, plus $500 additional per well for each
22 additional well to be permitted that year, until the
23 obligations of this subsection are fully met. Operators
24 of 101 to 200 wells shall deposit $12,500 and shall,
25 thereafter, annually deposit $1,000, plus $1,000
26 additional per well for each additional well to be
27 permitted that year, until the obligations of this
28 subsection are fully met. Operators of more than 200
29 wells shall fully bond their wells immediately. The
30 Environmental Quality Board shall have the power, by
19890H0614B3523 - 8 -
1 regulation, to change the annual deposits established
2 under this subsection if it is found to be necessary to
3 accommodate a change in the amount of the bond required
4 under this subsection.
5 (iii) An operator participating in the phased
6 collateral provisions of this subsection may have the
7 additional amount for wells to be permitted during any
8 given calendar year reduced by $50 for each well the
9 operator has plugged during the previous calendar year.
10 Such determinations shall be based upon compliance with
11 the plugging requirements of section 210.
12 (iv) An operator may continue to participate in the
13 phased collateral provisions of this subsection so long
14 as the operator has not missed any payments for wells
15 bonded under this provision and so long as the operator
16 remains in compliance with the provisions of this act and
17 regulations and permits issued thereunder.
18 (b) No bond shall be fully released until all requirements
19 of this act identified in subsection (a) are fully met. Upon
20 release of all of the bonds and collateral as herein provided,
21 the State Treasurer shall immediately return to the owner the
22 amount of cash or securities specified therein.
23 (c) If the well owner or operator fails or refuses to comply
24 with the applicable requirements of this act identified in
25 subsection (a), the regulations promulgated hereunder or the
26 conditions of the permit relating thereto, the department may
27 declare the bond forfeited and shall certify the same to the
28 Attorney General, who shall proceed to enforce and collect the
29 full amount of the bond and, where the owner or operator has
30 deposited cash or securities as collateral in lieu of a
19890H0614B3523 - 9 -
1 corporate surety, the department shall declare said collateral
2 forfeited and shall direct the State Treasurer to pay the full
3 amount of said funds into the Well Plugging Restricted Revenue
4 Account or to proceed to sell said security to the extent
5 forfeited and pay the proceeds thereof into the Well Plugging
6 Restricted Revenue Account. Should any corporate surety or
7 [bank] financial institution fail to promptly pay, in full, a
8 forfeited bond, it shall be disqualified from writing any
9 further bonds under the act or any other environmental act
10 administered by the department. Any person aggrieved by reason
11 of forfeiting the bond or converting collateral, as herein
12 provided, shall have a right to appeal to the Environmental
13 Hearing Board in the manner provided by law. Upon forfeiture of
14 a blanket bond for a violation occurring at one or more well
15 sites, the person whose bond is forfeited shall submit a
16 replacement bond to cover all other wells of which he is owner
17 or operator within ten days of said forfeiture. Failure to
18 submit said replacement bond constitutes a violation of this
19 section as to each of the wells owned or operated by said
20 person.
21 [(d) Any well operator who cannot obtain a bond for a well
22 drilled prior to the effective date of this act, as required
23 under subsection (a), due to an inability to demonstrate
24 sufficient financial resources shall submit to the department
25 letters of rejection from three separate bonding companies
26 licensed to do business in the Commonwealth. Such letters shall
27 state that the operator has been denied a bond and state the
28 grounds for denial of the bond. In lieu of the bond, the
29 operator shall submit to the department a fee in the amount of
30 $50 per well, or a blanket fee of $500 for ten to 20 wells, or a
19890H0614B3523 - 10 -
1 blanket fee of $1,000 for more than 20 wells, which shall be a
2 nonrefundable fee paid each year that the operator has not filed
3 a bond with the department. The operator must demonstrate every
4 three years a continued inability to obtain a bond as prescribed
5 above. All fees collected in lieu of a bond under this
6 subsection shall be paid into the Well Plugging Restricted
7 Revenue Account and shall be used for the purposes authorized by
8 this act. The Environmental Quality Board shall have the power,
9 by regulation, to increase the amount of the fees established
10 under this subsection if it is found that the total moneys
11 collected hereunder are insufficient to reimburse the
12 Commonwealth for costs incurred in correcting violations on
13 wells covered under this subsection.
14 (d.1) (1) An individual who cannot obtain a bond to drill
15 new wells due to an inability to demonstrate financial
16 resources, as evidenced by letters of rejection as required
17 under subsection (d), may meet the collateral bond
18 requirements of subsection (a) by making phased deposits of
19 collateral to fully collateralize the bond. Such individuals
20 shall be limited to drilling two new wells per calendar year.
21 The individual shall, for each well to be drilled, deposit
22 $500 and shall, thereafter, annually deposit 10% of the
23 remaining bond amount for a period of ten years. Interest
24 accumulated by the collateral shall become a part of the bond
25 until such time as the collateral, plus accumulated interest,
26 equals the amount of the required bond. The collateral shall
27 be deposited, in trust, with the State Treasurer as provided
28 in subsection (a) or with a bank selected by the department
29 which shall act as trustee for the benefit of the
30 Commonwealth, to guarantee the individual's compliance with
19890H0614B3523 - 11 -
1 the drilling, water supply replacement, restoration and
2 plugging requirements of this act. The individual shall be
3 required to pay all costs of the trust.
4 (2) Individuals may continue to use phased collateral to
5 obtain permits so long as they have not missed any payments
6 for wells drilled under this provision and so long as they
7 remain in compliance with this act, and regulations and
8 permits issued thereunder. For the purposes of this
9 subsection an "individual" is defined as an applicant who is
10 a natural person doing business under his own name.
11 (e)] (d) All remedies for violation of this act, the
12 regulations adopted hereunder or the conditions of permits are
13 expressly preserved. Nothing in subsections (a), (b) and (c)
14 shall be construed as an exclusive penalty or remedy for such
15 violations of law. No action taken pursuant to subsection (c)
16 shall waive or impair any other remedy or penalty provided in
17 law.
18 Section 4. Section 509 of the act is amended by adding a
19 paragraph to read:
20 Section 509. Unlawful conduct.
21 It shall be unlawful for any person to:
22 * * *
23 (5) Cause the abandonment of a well by removal of casing
24 or equipment without complying with section 210.
25 Section 5. This act shall take effect in 30 days.
26 SECTION 1. THE DEFINITIONS OF "ALTERATION" AND "WELL <--
27 OPERATOR" OR "OPERATOR" IN SECTION 103 OF THE ACT OF DECEMBER
28 19, 1984 (P.L.1140, NO.223), KNOWN AS THE OIL AND GAS ACT,
29 AMENDED OCTOBER 9, 1986 (P.L.1431, NO.135), ARE AMENDED AND THE
30 SECTION IS AMENDED BY ADDING A DEFINITION TO READ:
19890H0614B3523 - 12 -
1 SECTION 103. DEFINITIONS.
2 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
3 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
4 CONTEXT CLEARLY INDICATES OTHERWISE:
5 * * *
6 "ALTERATION." ANY OPERATION WHICH CHANGES THE PHYSICAL
7 CHARACTERISTICS OF THE WELL BORE, INCLUDING STIMULATION OR
8 REMOVING, REPAIRING OR CHANGING THE CASING: PROVIDED, HOWEVER,
9 THAT, FOR THE PURPOSE OF THIS ACT ONLY, THE TERM SHALL NOT
10 INCLUDE:
11 (1) REPAIRING OR REPLACING OF CASING [WITH CASING OF THE
12 SAME DIAMETER AND LENGTH IN NONCOAL AREAS;
13 (2) REPAIRING OR REPLACING OF PRODUCTION CASING WITH
14 CASING OF THE SAME OR SMALLER DIAMETER AND LENGTH: PROVIDED,
15 HOWEVER, THAT] IF THE ACTIVITY DOES NOT AFFECT THE DEPTH OR
16 DIAMETER OF THE WELL BORE, PROVIDED THAT THE USE OR PURPOSE
17 OF THE WELL DOES NOT CHANGE AND PROVIDED THAT THE ACTIVITY
18 COMPLIES WITH REGULATIONS PROMULGATED HEREUNDER. HOWEVER,
19 THIS EXCLUSION SHALL NOT APPLY TO PRODUCTION CASINGS IN COAL
20 AREAS WHEN SAID PRODUCTION CASINGS ARE ALSO THE COAL
21 PROTECTION CASINGS AND SHALL NOT APPLY WHEN THE METHOD OF
22 REPAIRING OR REPLACING THE CASING WOULD AFFECT THE COAL
23 PROTECTION CASING;
24 [(3)] (2) NOR SHALL IT INCLUDE STIMULATION AS A NORMAL
25 INITIAL COMPLETION PROCEDURE NOR STIMULATION USED TO ENHANCE
26 ADDITIONAL OIL OR GAS ZONES WITHIN THE SAME WELL BORE.
27 * * *
28 "ORPHAN WELL." ANY ABANDONED WELL WHICH HAS BEEN IDENTIFIED
29 TO THE DEPARTMENT, THAT HAS NOT BEEN AFFECTED OR OPERATED BY THE
30 PRESENT OWNER OR OPERATOR, AND WHICH THE PRESENT OWNER, OPERATOR
19890H0614B3523 - 13 -
1 OR LESSEE HAS RECEIVED NO ECONOMIC BENEFIT. THIS DEFINITION
2 SHALL NOT INCLUDE ANY ABANDONED WELL WHICH HAS BEEN TRANSFERRED
3 IN A LEASE OR THROUGH OTHER CHANGE OF OWNERSHIP OF THE OIL AND
4 GAS RIGHTS BY AN OPERATOR SUBSEQUENT TO THE EFFECTIVE DATE OF
5 THIS ACT.
6 * * *
7 "WELL OPERATOR" OR "OPERATOR." THE PERSON DESIGNATED AS THE
8 WELL OPERATOR OR OPERATOR ON THE PERMIT APPLICATION OR WELL
9 REGISTRATION. WHERE A PERMIT OR REGISTRATION WAS NOT ISSUED, THE
10 TERM SHALL MEAN ANY PERSON WHO LOCATES, DRILLS, OPERATES, ALTERS
11 OR PLUGS ANY WELL, OR RECONDITIONS ANY WELL WITH THE PURPOSE OF
12 PRODUCTION THEREFROM. IN CASES WHERE A WELL IS USED IN
13 CONNECTION WITH THE UNDERGROUND STORAGE OF GAS, THE TERM ALSO
14 MEANS A "STORAGE OPERATOR."
15 * * *
16 SECTION 2. SECTION 201(A) AND (K) OF THE ACT, AMENDED
17 OCTOBER 9, 1986 (P.L.1431, NO.133), ARE AMENDED TO READ:
18 SECTION 201. WELL PERMITS.
19 (A) NO PERSON SHALL DRILL A WELL OR ALTER ANY EXISTING WELL,
20 EXCEPT FOR ALTERATIONS WHICH SATISFY THE REQUIREMENTS OF
21 SUBSECTION (J), WITHOUT HAVING FIRST OBTAINED A WELL PERMIT
22 PURSUANT TO SUBSECTIONS (B), (C), (D) AND (E). A COPY OF THE
23 PERMIT SHALL BE KEPT AT THE WELL SITE DURING DRILLING OR
24 ALTERATION OF THE WELL. HOWEVER, NO PERSON SHALL BE REQUIRED TO
25 OBTAIN A PERMIT TO REDRILL A NONPRODUCING WELL, IF:
26 (1) THE REDRILLING HAS BEEN EVALUATED AND APPROVED AS
27 PART OF AN ORDER FROM THE DEPARTMENT AUTHORIZING THE CLEANING
28 OUT AND PLUGGING OR REPLUGGING OF A NONPRODUCING WELL,
29 PURSUANT TO SECTION 13(C) OF THE ACT OF DECEMBER 18, 1984
30 (P.L.1069, NO.214), KNOWN AS THE COAL AND GAS RESOURCE
19890H0614B3523 - 14 -
1 COORDINATION ACT; AND
2 (2) THE REDRILLING IS INCIDENTAL TO THE PLUGGING OR
3 REPLUGGING OPERATION AND THE WELL SUBSEQUENTLY IS PLUGGED
4 WITHIN 15 DAYS OF REDRILLING.
5 * * *
6 (K) NO PERMIT ISSUED PURSUANT TO THIS SECTION OR
7 REGISTRATION ISSUED PURSUANT TO SECTION 203 MAY BE TRANSFERRED
8 WITHOUT PRIOR APPROVAL OF THE DEPARTMENT. REQUESTS FOR APPROVAL
9 OF SUCH TRANSFER SHALL BE MADE ON FORMS OR IN A MANNER
10 PRESCRIBED BY THE DEPARTMENT. THE DEPARTMENT SHALL APPROVE OR
11 DENY THE TRANSFER REQUEST WITHIN 45 DAYS OF RECEIPT OF A
12 COMPLETE AND ACCURATE APPLICATION. THE DEPARTMENT SHALL ONLY
13 HAVE THE AUTHORITY TO DENY SUCH REQUEST FOR THE REASONS SET
14 FORTH IN SUBSECTION (E)(4) OR (5). APPROVAL OF THE TRANSFER
15 REQUEST SHALL PERMANENTLY TRANSFER RESPONSIBILITY TO PLUG THE
16 WELL UNDER SECTION 210 TO THE RECIPIENT OF THE TRANSFERRED
17 PERMIT OR REGISTRATION.
18 * * *
19 SECTION 3. SECTIONS 203(A), 204, 210, 212(A) AND 213 OF THE
20 ACT ARE AMENDED TO READ:
21 SECTION 203. WELL REGISTRATION AND IDENTIFICATION.
22 (A) [WITHIN ONE YEAR FROM THE EFFECTIVE DATE OF THIS ACT,
23 EVERY PERSON OWNING OR OPERATING A WELL FOR WHICH NO DRILLING
24 PERMIT WAS ISSUED BY THE DEPARTMENT SHALL REGISTER SUCH WELL ON
25 FORMS OR IN A MANNER PRESCRIBED BY THE DEPARTMENT, WHICH SHALL
26 CONTAIN THE FOLLOWING INFORMATION:] WITHIN ONE YEAR OF THE
27 EFFECTIVE DATE OF THIS AMENDATORY ACT, EVERY PERSON WHO IS THE
28 OWNER OR OPERATOR OF A WELL IN EXISTENCE PRIOR TO APRIL 18,
29 1985, WHICH WELL HAS NOT BEEN REGISTERED WITH THE DEPARTMENT AND
30 FOR WHICH NO DRILLING PERMIT HAS BEEN ISSUED BY THE DEPARTMENT,
19890H0614B3523 - 15 -
1 SHALL REGISTER SUCH WELL WITH THE DEPARTMENT. ANY WELL OWNER OR
2 OPERATOR WHO REGISTERS A WELL PURSUANT TO THIS SUBSECTION, AND
3 ANY WELL OWNER OR OPERATOR WHO HAS PREVIOUSLY REGISTERED A WELL
4 PURSUANT TO THIS ACT SHALL, WITHIN ONE YEAR OF THE EFFECTIVE
5 DATE OF THIS AMENDATORY ACT, IDENTIFY ANY ABANDONED WELL ON
6 PROPERTY SUCH WELL OWNER OR OPERATOR OWNS OR LEASES FOR WHICH
7 CLASSIFICATION AS AN ORPHAN WELL IS BEING REQUESTED. INFORMATION
8 REGARDING WELLS TO BE REGISTERED OR IDENTIFIED SHALL BE PROVIDED
9 ON FORMS OR IN A MANNER PRESCRIBED BY THE DEPARTMENT AND SHALL
10 INCLUDE:
11 (1) THE NAME AND ADDRESS OF THE WELL OPERATOR AND, IF
12 THE WELL OPERATOR IS A CORPORATION, PARTNERSHIP OR A PERSON
13 NONRESIDENT OF THE COMMONWEALTH, THERE SHALL BE DESIGNATED ON
14 THE WELL REGISTRATION APPLICATION THE NAME AND ADDRESS OF AN
15 AGENT FOR SUCH OPERATOR UPON WHOM NOTICES, ORDERS, PROCESS OR
16 OTHER COMMUNICATIONS ISSUED PURSUANT TO THIS ACT MAY BE
17 SERVED.
18 (2) THE WELL NAME OF SUCH WELL AND THE LOCATION OF THE
19 WELL INDICATED BY A POINT ON A 7 1/2 MINUTE UNITED STATES
20 GEOLOGICAL SURVEY TOPOGRAPHIC MAP OR ANY OTHER LOCATION
21 DESCRIPTION SUFFICIENT TO ENABLE THE DEPARTMENT TO LOCATE THE
22 WELL ON THE GROUND.
23 (3) THE APPROXIMATE DATE OF THE DRILLING, COMPLETION OF
24 SAID WELL AND THE APPROXIMATE DEPTH OF SAID WELL, THE
25 PRODUCING HORIZONS, WELL CONSTRUCTION INFORMATION AND
26 DRILLER'S LOGS, IF AVAILABLE.
27 (4) AN INDEMNITY BOND [OR], AN ALTERNATIVE FEE IN LIEU
28 OF BONDING SATISFYING THE REQUIREMENTS OF SECTION 215 OR SUCH
29 OTHER EVIDENCE OF FINANCIAL SECURITY SUBMITTED BY THE WELL
30 OPERATOR AND DEEMED APPROPRIATE BY THE DEPARTMENT: PROVIDED,
19890H0614B3523 - 16 -
1 HOWEVER, THAT NO BOND, ALTERNATIVE FEE OR OTHER EVIDENCE OF
2 FINANCIAL SECURITY SHALL BE REQUIRED FOR IDENTIFICATION OF AN
3 ORPHAN WELL.
4 (5) A REGISTRATION FEE OF $15 PER WELL[, EXCEPT THAT THE
5 DEPARTMENT MAY ESTABLISH] OR A BLANKET REGISTRATION FEE [NOT
6 TO EXCEED $250 WHERE] OF $250 FOR MULTIPLE WELL REGISTRATION
7 APPLICATIONS WHICH ARE SUBMITTED SIMULTANEOUSLY [FOR WELLS
8 THAT ARE PART OF THE SAME DEVELOPMENT PROJECT. THE BLANKET
9 REGISTRATION FEE SHALL BEAR A REASONABLE RELATIONSHIP TO THE
10 ADMINISTRATIVE COSTS ASSOCIATED WITH PROCESSING SUCH MULTIPLE
11 WELL REGISTRATION APPLICATIONS]. THE REGISTRATION FEE SHALL
12 BE WAIVED FOR A PERIOD OF ONE YEAR FROM THE EFFECTIVE DATE OF
13 THIS AMENDATORY ACT, AND NO FEE SHALL BE CHARGED FOR
14 IDENTIFICATION OF AN ORPHAN WELL.
15 (A.1) WELL OWNERS OR OPERATORS WHO DISCOVER ABANDONED WELLS
16 ON PROPERTY PURCHASED OR LEASED BY THEM AFTER EXPIRATION OF THE
17 ONE-YEAR PERIOD PROVIDED IN SUBSECTION (A) SHALL IDENTIFY SUCH
18 WELL TO THE DEPARTMENT WITHIN 60 DAYS OF DISCOVERY AND ADVISE
19 THE DEPARTMENT IF THEY ARE SEEKING CLASSIFICATION OF SUCH WELL
20 AS AN ORPHAN WELL. NO FEE SHALL BE REQUIRED FOR SUCH
21 IDENTIFICATION.
22 (A.2) PERSONS WHO ARE NOT WELL OWNERS OR OPERATORS AND WHO
23 DISCOVER AN ABANDONED WELL ON PROPERTY OWNED OR LEASED BY THEM
24 SHALL IDENTIFY SUCH WELL TO THE DEPARTMENT WITHIN 60 DAYS OF
25 DISCOVERY AND ADVISE THE DEPARTMENT IF THEY ARE SEEKING
26 CLASSIFICATION FOR SUCH WELL AS AN ORPHAN WELL. NO FEE SHALL BE
27 REQUIRED FOR SUCH IDENTIFICATION.
28 (A.3) PERSONS WHO, AS A RESULT OF LITIGATION OR ENFORCEMENT
29 PROCEEDINGS INITIATED PURSUANT TO THIS ACT, ARE DETERMINED TO BE
30 THE OWNER OF A WELL SHALL COMPLY WITH THE REQUIREMENTS OF
19890H0614B3523 - 17 -
1 SUBSECTION (A), INCLUDING PAYMENT OF ANY APPLICABLE REGISTRATION
2 FEE, WITHIN 30 DAYS OF THE DECISION ON OWNERSHIP.
3 * * *
4 SECTION 204. INACTIVE STATUS.
5 (A) UPON APPLICATION, THE DEPARTMENT [MAY] SHALL GRANT
6 INACTIVE STATUS FOR A PERIOD OF TEN YEARS FOR ANY PERMITTED OR
7 REGISTERED WELL [WHICH SATISFIES] PROVIDED THE FOLLOWING
8 REQUIREMENTS ARE MET:
9 (1) THE CONDITION OF THE WELL IS SUFFICIENT TO PREVENT
10 DAMAGE TO THE PRODUCING ZONE OR CONTAMINATION OF FRESH WATER
11 OR OTHER NATURAL RESOURCES OR SURFACE LEAKAGE OF ANY
12 SUBSTANCE;
13 (2) THE CONDITION OF THE WELL IS SUFFICIENT TO STOP THE
14 VERTICAL FLOW OF FLUIDS OR GAS WITHIN THE WELL BORE AND
15 [WHICH] IS ADEQUATE TO PROTECT FRESHWATER AQUIFERS, [IF]
16 UNLESS THE DEPARTMENT DETERMINES THE WELL POSES A THREAT TO
17 THE HEALTH AND SAFETY OF PERSONS OR PROPERTY OR TO THE
18 ENVIRONMENT;
19 (3) [THE APPLICANT CERTIFIES THAT THE WELL IS OF FUTURE
20 UTILITY AND PRESENTS A VIABLE PLAN FOR UTILIZING THE WELL
21 WITHIN A REASONABLE TIME] THE OPERATOR ANTICIPATES FUTURE USE
22 OF THE WELL; AND
23 (4) THE APPLICANT SATISFIES THE BONDING REQUIREMENTS OF
24 SECTION 215, EXCEPT THAT THE DEPARTMENT MAY REQUIRE
25 ADDITIONAL FINANCIAL SECURITY FOR ANY WELL ON WHICH AN
26 ALTERNATIVE FEE IS BEING PAID IN LIEU OF BONDING UNDER
27 SECTION 215(D).
28 (B) THE OWNER OR OPERATOR OF ANY WELL GRANTED INACTIVE
29 STATUS SHALL BE RESPONSIBLE FOR MONITORING THE MECHANICAL
30 INTEGRITY OF SUCH WELL TO INSURE THAT THE REQUIREMENTS OF
19890H0614B3523 - 18 -
1 SUBSECTION (A)(1) AND (2) ARE MET AND SHALL REPORT THE SAME ON
2 AN ANNUAL BASIS TO THE DEPARTMENT IN A MANNER AND FORM AS THE
3 DEPARTMENT SHALL PRESCRIBE BY REGULATION.
4 [(C) APPROVAL OF INACTIVE STATUS UNDER THIS SECTION SHALL BE
5 VALID FOR A PERIOD OF FIVE YEARS UNLESS RENEWED PURSUANT TO THE
6 REQUIREMENTS OF THIS SECTION. THE DEPARTMENT SHALL HAVE THE
7 RIGHT TO REVOKE SUCH STATUS AND ORDER THE IMMEDIATE PLUGGING OF
8 SAID WELL IF IT IS IN VIOLATION OF THIS ACT OR ANY OTHER
9 STATUTE, RULE OR REGULATION ADMINISTERED BY THE DEPARTMENT OR
10 UPON RECEIPT BY THE DEPARTMENT OF NOTICE OF BANKRUPTCY
11 PROCEEDINGS BY THE PERMITTEE.]
12 (C) ANY WELL GRANTED INACTIVE STATUS PURSUANT TO SUBSECTION
13 (A) SHALL BE RETURNED TO ACTIVE STATUS WITHIN TEN YEARS OF THE
14 DATE INACTIVE STATUS WAS GRANTED: PROVIDED, HOWEVER, THAT AN
15 OWNER OR OPERATOR MAY REQUEST AN EXTENSION OF INACTIVE STATUS,
16 WHICH REQUEST MAY BE GRANTED ON A YEAR-TO-YEAR BASIS IF THE
17 OPERATOR CONTINUES TO MEET THE REQUIREMENTS OF THIS SECTION. AN
18 OPERATOR WHO IS GRANTED INACTIVE STATUS FOR A WELL WHICH IS
19 RETURNED TO ACTIVE STATUS PRIOR TO EXPIRATION OF THE TEN-YEAR
20 PERIOD SET FORTH IN SUBSECTION (A) SHALL NOTIFY THE DEPARTMENT
21 THAT THE WELL HAS BEEN RETURNED TO ACTIVE STATUS AND SHALL NOT
22 BE PERMITTED TO APPLY FOR ANOTHER AUTOMATIC TEN-YEAR PERIOD OF
23 INACTIVE STATUS FOR SUCH WELL; PROVIDED, HOWEVER, THAT THE
24 OPERATOR MAY REQUEST THAT THE WELL BE RETURNED TO INACTIVE
25 STATUS, AND THE DEPARTMENT MAY GRANT SUCH REQUEST ON A YEAR-TO-
26 YEAR BASIS IF THE OPERATOR CONTINUES TO MEET THE REQUIREMENTS OF
27 THIS SECTION. THE DEPARTMENT SHALL APPROVE OR DENY A REQUEST TO
28 EXTEND A PERIOD OF INACTIVE STATUS OR TO RETURN A WELL TO
29 INACTIVE STATUS WITHIN 30 DAYS OF RECEIPT OF SUCH REQUEST;
30 PROVIDED THAT SUCH REQUEST SHALL NOT BE UNREASONABLY DENIED. IF
19890H0614B3523 - 19 -
1 THE DEPARTMENT ISSUES AN ORDER DENYING A REQUEST TO EXTEND THE
2 PERIOD OF INACTIVE STATUS OR TO RETURN A WELL TO INACTIVE
3 STATUS, A WELL OWNER OR OPERATOR AGGRIEVED THEREBY SHALL HAVE
4 THE RIGHT TO APPEAL THE ORDER TO THE ENVIRONMENTAL HEARING BOARD
5 WITHIN 30 DAYS OF RECEIPT OF THE ORDER. DURING THE PERIOD OF ANY
6 SUCH APPEAL, THE WELL IN QUESTION SHALL BE GRANTED INACTIVE
7 STATUS, PROVIDED THE OWNER OR OPERATOR THEREOF CONTINUES TO MEET
8 THE REQUIREMENTS OF THIS SECTION FOR SUCH WELL.
9 (D) THE DEPARTMENT SHALL HAVE THE RIGHT TO REVOKE INACTIVE
10 STATUS AND ORDER THE IMMEDIATE PLUGGING OF A WELL IF IT IS IN
11 VIOLATION OF THIS ACT OR RULES OR REGULATIONS PROMULGATED
12 THEREUNDER, OR IF THE OWNER OR OPERATOR DEMONSTRATES INABILITY
13 TO PERFORM HIS OBLIGATIONS UNDER THIS ACT OR BECOMES FINANCIALLY
14 INSOLVENT, OR UPON RECEIPT BY THE DEPARTMENT OF NOTICE OF
15 BANKRUPTCY PROCEEDINGS BY THE PERMITTEE.
16 SECTION 210. PLUGGING REQUIREMENTS.
17 (A) UPON ABANDONING ANY WELL, THE OWNER OR OPERATOR THEREOF
18 SHALL PLUG THE WELL IN A MANNER PRESCRIBED BY REGULATION OF THE
19 DEPARTMENT IN ORDER TO STOP ANY VERTICAL FLOW OF FLUIDS OR GAS
20 WITHIN THE WELL BORE UNLESS THE DEPARTMENT HAS GRANTED INACTIVE
21 STATUS FOR SUCH WELL PURSUANT TO SECTION 204. WHERE THE
22 DEPARTMENT DETERMINES THAT A PRIOR OWNER OR OPERATOR RECEIVED
23 ECONOMIC BENEFIT FROM A WELL SUBSEQUENT TO THE EFFECTIVE DATE OF
24 THE ACT OF NOVEMBER 30, 1955 (P.L.756, NO.225), KNOWN AS THE GAS
25 OPERATIONS WELL-DRILLING PETROLEUM AND COAL MINING ACT, SUCH
26 PRIOR OWNER OR OPERATOR SHALL BE RESPONSIBLE FOR THE PLUGGING OF
27 THE WELL. WHERE, IN THE CASE OF GAS WELLS PENETRATING WORKABLE
28 COAL SEAMS WHICH WERE DRILLED PRIOR TO THE EFFECTIVE DATE OF THE
29 GAS OPERATIONS WELL-DRILLING PETROLEUM AND COAL MINING ACT OR
30 WHICH WERE PERMITTED AFTER SUCH DATE BUT NOT PLUGGED IN
19890H0614B3523 - 20 -
1 ACCORDANCE WITH THIS ACT, THE OWNER OR OPERATOR OF SUCH A WELL,
2 OR A COAL OPERATOR OR HIS AGENT, PROPOSES TO PLUG SUCH WELL FOR
3 THE PURPOSE OF ALLOWING THE MINING THROUGH OF IT, THE GAS WELL
4 SHALL BE CLEANED OUT TO A DEPTH OF AT LEAST 200 FEET BELOW THE
5 COAL SEAM IN WHICH THE MINING THROUGH IS PROPOSED AND UNLESS
6 IMPRACTICABLE, TO A POINT 200 FEET BELOW THE DEEPEST MINABLE
7 COAL SEAM. SUCH GAS WELL SHALL BE PLUGGED FROM THAT DEPTH IN
8 ACCORDANCE WITH THE PROVISIONS OF SECTION 13 OF THE ACT OF
9 DECEMBER 18, 1984 (P.L.1069, NO.214), KNOWN AS THE COAL AND GAS
10 RESOURCE COORDINATION ACT, AND THE REGULATIONS OF THE
11 DEPARTMENT.
12 (B) PRIOR TO THE ABANDONMENT OF ANY WELL IN AN AREA
13 UNDERLAIN BY A WORKABLE COAL SEAM, THE WELL OPERATOR OR OWNER
14 SHALL NOTIFY THE COAL OPERATOR, LESSEE OR OWNER AND THE
15 DEPARTMENT OF HIS INTENTION TO PLUG AND ABANDON ANY SUCH WELL
16 AND SUBMIT A PLAT, ON A FORM TO BE FURNISHED BY THE DEPARTMENT,
17 SHOWING THE LOCATION OF THE WELL AND FIXING THE DATE AND TIME AT
18 WHICH THE WORK OF PLUGGING WILL BE COMMENCED, WHICH TIME SHALL
19 BE NOT LESS THAN [72 HOURS] THREE WORKING DAYS AFTER THE TIME
20 WHEN SUCH NOTICE IS RECEIVED, NOR MORE THAN 30 DAYS THEREAFTER
21 IN ORDER THAT THEIR REPRESENTATIVES MAY BE PRESENT AT THE
22 PLUGGING OF THE WELL. SUCH NOTICE MAY BE WAIVED BY THE
23 DEPARTMENT AND SAID COAL OPERATOR, LESSEE OR OWNER, AND ANY OF
24 THEM MAY LIKEWISE WAIVE THEIR RIGHT TO BE PRESENT, BUT SUCH
25 WAIVER BY COAL OPERATOR, LESSEE OR OWNER SHALL BE IN WRITING AND
26 A COPY THEREOF ATTACHED TO THE NOTICE OF ABANDONMENT, FILED WITH
27 THE DEPARTMENT UNDER THIS SECTION. WHETHER OR NOT SUCH
28 REPRESENTATIVES APPEAR, THE WELL OPERATOR MAY, IF HE HAS FULLY
29 COMPLIED WITH THE REQUIREMENTS OF THIS SECTION, PROCEED AT THE
30 TIME FIXED, TO PLUG THE WELL IN THE MANNER AS PRESCRIBED BY
19890H0614B3523 - 21 -
1 REGULATION OF THE DEPARTMENT. WHEN SUCH PLUGGING HAS BEEN
2 COMPLETED, A CERTIFICATE SHALL BE PREPARED AND SIGNED, ON A FORM
3 TO BE FURNISHED BY THE DEPARTMENT, BY TWO EXPERIENCED AND
4 QUALIFIED PEOPLE WHO PARTICIPATED IN THE WORK SETTING FORTH THE
5 TIME AND MANNER IN WHICH THE WELL HAS BEEN PLUGGED. ONE COPY OF
6 THIS CERTIFICATE SHALL BE MAILED TO EACH COAL OPERATOR, LESSEE
7 OR OWNER TO WHOM NOTICE WAS GIVEN BY CERTIFIED MAIL AND ANOTHER
8 COPY SHALL BE MAILED TO THE DEPARTMENT.
9 (C) PRIOR TO THE ABANDONMENT OF ANY WELL, EXCEPT AN
10 UNCOMPLETED BORE HOLE PLUGGED IMMEDIATELY UPON SUSPENSION OF
11 DRILLING IN AN AREA NOT UNDERLAIN BY A WORKABLE COAL SEAM, THE
12 WELL OPERATOR SHALL NOTIFY THE DEPARTMENT OF HIS INTENTION TO
13 PLUG AND ABANDON ANY SUCH WELL AND SUBMIT A PLAT, ON A FORM TO
14 BE FURNISHED BY THE DEPARTMENT, SHOWING THE LOCATION OF THE WELL
15 AND FIXING THE DATE AND TIME AT WHICH THE WORK OF PLUGGING WILL
16 BE COMMENCED, WHICH TIME SHALL NOT BE LESS THAN [72 HOURS] THREE
17 WORKING DAYS NOR MORE THAN 30 DAYS AFTER THE TIME [OF MAILING]
18 WHEN SUCH NOTICE IS RECEIVED, IN ORDER THAT THE DEPARTMENT
19 REPRESENTATIVE MAY BE PRESENT AT THE PLUGGING OF THE WELL. SUCH
20 NOTICE OR WAITING PERIOD MAY BE VERBALLY WAIVED BY THE
21 DEPARTMENT. IN NONCOAL AREAS WHERE MORE THAN ONE WELL HAS BEEN
22 DRILLED AS PART OF THE SAME DEVELOPMENT PROJECT AND THESE WELLS
23 ARE NOW TO BE PLUGGED, IT IS REQUIRED THAT THE DEPARTMENT BE
24 GIVEN [72 HOURS'] THREE WORKING DAYS' NOTICE PRIOR TO PLUGGING
25 THE FIRST WELL OF SUCH PROJECT SUBJECT TO WAIVER OF NOTICE
26 DESCRIBED HEREIN. IN THE PLUGGING OF SUBSEQUENT WELLS, NO
27 ADDITIONAL NOTICE SHALL BE REQUIRED IF THE PLUGGING ON THE
28 PROJECT IS CONTINUOUS. IF THE PLUGGING OF SUBSEQUENT WELLS IS
29 DELAYED FOR ANY REASON, NOTICE SHALL BE GIVEN TO THE DEPARTMENT
30 OF THE CONTINUATION OF SUCH PROJECT. WHETHER OR NOT SUCH
19890H0614B3523 - 22 -
1 DEPARTMENT REPRESENTATIVE APPEARS, THE WELL OPERATOR MAY, IF HE
2 HAS FULLY COMPLIED WITH THE REQUIREMENTS OF THIS SECTION,
3 PROCEED AT THE TIME FIXED TO PLUG THE WELL IN THE MANNER AS
4 PRESCRIBED BY REGULATION OF THE DEPARTMENT. WHEN SUCH PLUGGING
5 HAS BEEN COMPLETED, A CERTIFICATE SHALL BE PREPARED, ON A FORM
6 TO BE FURNISHED BY THE DEPARTMENT, BY TWO EXPERIENCED AND
7 QUALIFIED PEOPLE WHO PARTICIPATED IN THE WORK, SETTING FORTH THE
8 TIME AND MANNER IN WHICH THE WELL WAS PLUGGED. A COPY OF THIS
9 CERTIFICATE SHALL BE MAILED TO THE DEPARTMENT.
10 (D) WHENEVER ANY WELL IS TO BE ABANDONED IMMEDIATELY AFTER
11 COMPLETION OF DRILLING, THE WELL OPERATOR SHALL GIVE AT LEAST 24
12 HOURS' NOTICE BY TELEPHONE, CONFIRMED BY CERTIFIED MAIL, TO THE
13 DEPARTMENT AND TO THE COAL OPERATOR, LESSEE OR OWNER, IF ANY,
14 FIXING THE DATE AND TIME AT WHICH THE WORK OF PLUGGING WILL BE
15 COMMENCED. SUCH NOTICE MAY BE WAIVED BY THE DEPARTMENT AND SAID
16 COAL OPERATOR, LESSEE OR OWNER, AND ANY OF THEM MAY LIKEWISE
17 WAIVE THEIR RIGHT TO BE PRESENT. WHETHER OR NOT ANY
18 REPRESENTATIVE OF THE DEPARTMENT OR OF THE COAL OPERATOR, LESSEE
19 OR OWNER, IF ANY, APPEAR, THE WELL OPERATOR MAY, IF HE HAS FULLY
20 COMPLIED WITH THE REQUIREMENTS OF THIS SECTION, PROCEED AT THE
21 TIME FIXED, TO PLUG THE WELL IN THE MANNER PROVIDED BY
22 REGULATION PRESCRIBED BY THE DEPARTMENT. THE WELL OPERATOR SHALL
23 PREPARE THE CERTIFICATE OF PLUGGING AND MAIL COPIES OF THE SAME
24 AS PROVIDED IN SUBSECTIONS (B) AND (C).
25 (E) IF A WELL IS AN ORPHAN WELL OR ABANDONED WITHOUT
26 PLUGGING, THE DEPARTMENT SHALL HAVE THE RIGHT TO ENTER UPON THE
27 WELL SITE AND PLUG THE ORPHAN OR ABANDONED WELL AND TO SELL SUCH
28 EQUIPMENT, CASING AND PIPE AS MAY HAVE BEEN USED IN THE
29 PRODUCTION OF THE WELL IN ORDER TO RECOVER THE COSTS OF
30 PLUGGING. SAID COSTS OF PLUGGING SHALL HAVE PRIORITY OVER ALL
19890H0614B3523 - 23 -
1 LIENS ON SAID EQUIPMENT, CASING AND PIPE, AND SAID SALE SHALL BE
2 FREE AND CLEAR OF ANY SUCH LIENS TO THE EXTENT THE COSTS OF
3 PLUGGING EXCEED THE SALE PRICE. IF THE EQUIPMENT PRICE OBTAINED
4 FOR CASING AND PIPE SALVAGED AT THE ABANDONED WELL SITE IS
5 INADEQUATE TO PAY FOR THE COST OF PLUGGING THE WELL, THE OWNER
6 OR OPERATOR OF THE WELL SHALL BE LEGALLY LIABLE FOR THE
7 ADDITIONAL COSTS OF PLUGGING THE WELL.
8 SECTION 212. WELL REPORTING REQUIREMENTS.
9 (A) EVERY WELL OPERATOR SHALL FILE WITH THE DEPARTMENT, ON A
10 FORM PROVIDED BY THE DEPARTMENT, AN ANNUAL REPORT SPECIFYING THE
11 AMOUNT OF PRODUCTION [FROM EACH WELL ON AN INDIVIDUAL WELL
12 BASIS. WHERE SAID DATA IS NOT AVAILABLE ON A WELL BASIS, IT MAY
13 BE REPORTED] ON THE MOST WELL-SPECIFIC BASIS AVAILABLE. ANNUAL
14 REPORTS SHALL ALSO SPECIFY THE STATUS OF EACH WELL; HOWEVER, IN
15 SUBSEQUENT YEARS, ONLY CHANGES IN THE STATUS NEED BE REPORTED.
16 [ALL SUCH REPORTS SHALL BE KEPT CONFIDENTIAL FOR ONE YEAR AFTER
17 THE DATE THE INFORMATION IS REQUIRED TO BE FILED HEREUNDER. UPON
18 REQUEST OF THE WELL OPERATOR, THE DEPARTMENT SHALL EXTEND THE
19 PERIOD OF CONFIDENTIALITY FOR FOUR YEARS. THE TOTAL PERIOD OF
20 CONFIDENTIALITY SHALL NOT EXCEED] THE DEPARTMENT SHALL KEEP ALL
21 SUCH REPORTS CONFIDENTIAL FOR FIVE YEARS: PROVIDED, HOWEVER,
22 THAT THE [DEPARTMENT] COMMONWEALTH SHALL HAVE THE RIGHT TO
23 UTILIZE SUCH INFORMATION IN ENFORCEMENT PROCEEDINGS, IN MAKING
24 DESIGNATIONS OR DETERMINATIONS UNDER SECTION 1927-A OF THE ACT
25 OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS THE ADMINISTRATIVE
26 CODE OF 1929, OR IN AGGREGATE FORM FOR STATISTICAL PURPOSES.
27 * * *
28 SECTION 213. NOTIFICATION AND EFFECT OF WELL TRANSFER.
29 THE OWNER OR OPERATOR OF ANY WELL SHALL NOTIFY THE
30 DEPARTMENT, IN WRITING, IN SUCH FORM AS THE DEPARTMENT MAY
19890H0614B3523 - 24 -
1 DIRECT BY REGULATION, OF THE SALE, ASSIGNMENT, TRANSFER,
2 CONVEYANCE OR EXCHANGE BY THE OWNER OR TO THE OWNER OF SUCH WELL
3 WITHIN 30 DAYS AFTER SUCH SALE, ASSIGNMENT, CONVEYANCE OR
4 EXCHANGE. NO SUCH TRANSFER SHALL RELIEVE THE WELL OWNER OR
5 OPERATOR OF ANY [LIABILITY] OBLIGATION ACCRUED UNDER THIS ACT,
6 NOR SHALL IT RELIEVE HIM OF THE OBLIGATION TO PLUG SAID WELL
7 UNTIL THE REQUIREMENTS OF SECTION 215 HAVE BEEN MET, AFTER WHICH
8 TIME THE TRANSFERRING OWNER OR OPERATOR SHALL BE RELIEVED FROM
9 ANY OBLIGATION UNDER THIS ACT INCLUDING THE OBLIGATION TO PLUG
10 SAID WELL.
11 SECTION 4. SECTION 215 OF THE ACT, AMENDED OCTOBER 9, 1986
12 (P.L.1431, NO.135), IS AMENDED TO READ:
13 SECTION 215. BONDING.
14 (A) (1) EXCEPT AS PROVIDED IN [SUBSECTIONS (D) AND (D.1)]
15 SUBSECTION (D) HEREOF, UPON FILING AN APPLICATION FOR A WELL
16 PERMIT AND BEFORE CONTINUING TO OPERATE ANY OIL OR GAS WELL,
17 THE OWNER OR OPERATOR THEREOF SHALL FILE WITH THE DEPARTMENT
18 A BOND FOR THE WELL AND THE WELL SITE ON A FORM TO BE
19 PRESCRIBED AND FURNISHED BY THE DEPARTMENT. ANY SUCH BOND
20 FILED WITH AN APPLICATION FOR A WELL PERMIT SHALL BE PAYABLE
21 TO THE COMMONWEALTH AND CONDITIONED THAT THE OPERATOR SHALL
22 FAITHFULLY PERFORM ALL OF THE DRILLING, WATER SUPPLY
23 REPLACEMENT, RESTORATION AND PLUGGING REQUIREMENTS OF THIS
24 ACT. ANY SUCH BOND FILED WITH THE DEPARTMENT FOR A WELL IN
25 EXISTENCE ON THE EFFECTIVE DATE OF THIS ACT SHALL BE PAYABLE
26 TO THE COMMONWEALTH AND CONDITIONED THAT THE OPERATOR SHALL
27 FAITHFULLY PERFORM ALL OF THE WATER SUPPLY REPLACEMENT,
28 RESTORATION AND PLUGGING REQUIREMENTS OF THIS ACT. THE AMOUNT
29 OF THE BOND REQUIRED SHALL BE IN THE AMOUNT OF $2,500 PER
30 WELL FOR AT LEAST TWO YEARS FOLLOWING THE EFFECTIVE DATE OF
19890H0614B3523 - 25 -
1 THIS ACT, AFTER WHICH TIME THE BOND AMOUNT MAY BE ADJUSTED BY
2 THE ENVIRONMENTAL QUALITY BOARD EVERY TWO YEARS TO REFLECT
3 THE PROJECTED COSTS TO THE COMMONWEALTH OF PERFORMING WELL
4 PLUGGING.
5 (2) IN LIEU OF INDIVIDUAL BONDS FOR EACH WELL, AN OWNER
6 OR OPERATOR MAY FILE A BLANKET BOND, ON A FORM PREPARED BY
7 THE DEPARTMENT, COVERING ALL OF ITS WELLS IN PENNSYLVANIA AS
8 ENUMERATED ON THE BOND FORM. A BLANKET BOND SHALL BE IN THE
9 AMOUNT OF $25,000 FOR AT LEAST TWO YEARS FOLLOWING THE
10 EFFECTIVE DATE OF THIS ACT, AFTER WHICH TIME THE BOND AMOUNT
11 MAY BE ADJUSTED BY THE ENVIRONMENTAL QUALITY BOARD EVERY TWO
12 YEARS TO REFLECT THE PROJECTED COSTS TO THE COMMONWEALTH OF
13 PERFORMING WELL PLUGGING.
14 (3) LIABILITY UNDER SUCH BOND SHALL CONTINUE UNTIL THE
15 WELL HAS BEEN PROPERLY PLUGGED IN ACCORDANCE WITH THIS ACT
16 AND FOR A PERIOD OF ONE YEAR AFTER FILING OF THE CERTIFICATE
17 OF PLUGGING WITH THE DEPARTMENT. EACH BOND SHALL BE EXECUTED
18 BY THE OPERATOR AND A CORPORATE SURETY LICENSED TO DO
19 BUSINESS IN THE COMMONWEALTH AND APPROVED BY THE SECRETARY.
20 THE OPERATOR MAY ELECT TO DEPOSIT CASH, [BANK] CERTIFICATES
21 OF DEPOSIT[,] OR AUTOMATICALLY RENEWABLE IRREVOCABLE [BANK]
22 LETTERS OF CREDIT FROM FINANCIAL INSTITUTIONS CHARTERED OR
23 AUTHORIZED TO DO BUSINESS IN PENNSYLVANIA AND REGULATED AND
24 EXAMINED BY THE COMMONWEALTH OR A FEDERAL AGENCY WHICH MAY BE
25 TERMINATED [BY THE BANK] AT THE END OF A TERM ONLY UPON THE
26 [BANK] FINANCIAL INSTITUTION GIVING 90 DAYS PRIOR WRITTEN
27 NOTICE TO THE PERMITTEE AND THE DEPARTMENT OR NEGOTIABLE
28 BONDS OF THE UNITED STATES GOVERNMENT OR THE COMMONWEALTH,
29 THE PENNSYLVANIA TURNPIKE COMMISSION, THE GENERAL STATE
30 AUTHORITY, THE STATE PUBLIC SCHOOL BUILDING AUTHORITY OR ANY
19890H0614B3523 - 26 -
1 MUNICIPALITY WITHIN THE COMMONWEALTH, OR UNITED STATES
2 TREASURY BONDS ISSUED AT A DISCOUNT WITHOUT A REGULAR
3 SCHEDULE OF INTEREST PAYMENTS TO MATURITY, OTHERWISE KNOWN AS
4 ZERO COUPON BONDS, HAVING A MATURITY DATE OF NOT MORE THAN
5 TEN YEARS AFTER THE DATE OF PURCHASE AND AT SUCH MATURITY
6 DATE HAVING A VALUE OF NOT LESS THAN $25,000, WITH THE
7 DEPARTMENT IN LIEU OF A CORPORATE SURETY. THE CASH DEPOSIT,
8 [BANK] CERTIFICATE OF DEPOSIT, AMOUNT OF SUCH IRREVOCABLE
9 LETTER OF CREDIT OR MARKET VALUE OF SUCH SECURITIES SHALL BE
10 EQUAL AT LEAST TO THE SUM OF THE BOND. THE SECRETARY SHALL,
11 UPON RECEIPT OF ANY SUCH DEPOSIT OF CASH, LETTERS OF CREDIT
12 OR NEGOTIABLE BONDS, IMMEDIATELY PLACE THE SAME WITH THE
13 STATE TREASURER, WHOSE DUTY IT SHALL BE TO RECEIVE AND HOLD
14 THE SAME IN THE NAME OF THE COMMONWEALTH, IN TRUST, FOR THE
15 PURPOSE FOR WHICH SUCH DEPOSIT IS MADE. THE STATE TREASURER
16 SHALL AT ALL TIMES BE RESPONSIBLE FOR THE CUSTODY AND
17 SAFEKEEPING OF SUCH DEPOSITS. THE OPERATOR MAKING DEPOSIT
18 SHALL BE ENTITLED FROM TIME TO TIME TO DEMAND AND RECEIVE
19 FROM THE STATE TREASURER, ON THE WRITTEN ORDER OF THE
20 SECRETARY, THE WHOLE OR ANY PORTION OF ANY COLLATERAL SO
21 DEPOSITED, UPON DEPOSITING WITH HIM, IN LIEU THEREOF, OTHER
22 COLLATERAL OF THE CLASSES HEREIN SPECIFIED HAVING A MARKET
23 VALUE AT LEAST EQUAL TO THE SUM OF THE BOND, AND ALSO TO
24 DEMAND, RECEIVE AND RECOVER THE INTEREST AND INCOME FROM SAID
25 NEGOTIABLE BONDS AS THE SAME BECOMES DUE AND PAYABLE. WHERE
26 NEGOTIABLE BONDS, DEPOSITED AS AFORESAID, MATURE OR ARE
27 CALLED, THE STATE TREASURER, AT THE REQUEST OF THE OWNER
28 THEREOF, SHALL CONVERT SUCH NEGOTIABLE BONDS INTO SUCH OTHER
29 NEGOTIABLE BONDS OF THE CLASSES HEREIN SPECIFIED AS MAY BE
30 DESIGNATED BY THE OWNER. WHERE NOTICE OF INTENT TO TERMINATE
19890H0614B3523 - 27 -
1 A LETTER OF CREDIT IS GIVEN, THE DEPARTMENT SHALL GIVE THE
2 OPERATOR 30 DAYS' WRITTEN NOTICE TO REPLACE THE LETTER OF
3 CREDIT WITH OTHER ACCEPTABLE BOND GUARANTEES AS PROVIDED
4 HEREIN AND, IF THE OWNER OR OPERATOR FAILS TO REPLACE THE
5 LETTER OF CREDIT WITHIN THE 30-DAY NOTIFICATION PERIOD, THE
6 DEPARTMENT SHALL DRAW UPON AND CONVERT SUCH LETTER OF CREDIT
7 INTO CASH AND HOLD IT AS A COLLATERAL BOND GUARANTEE.
8 (B) NO BOND SHALL BE FULLY RELEASED UNTIL ALL REQUIREMENTS
9 OF THIS ACT IDENTIFIED IN SUBSECTION (A) ARE FULLY MET. UPON
10 RELEASE OF ALL OF THE BONDS AND COLLATERAL AS HEREIN PROVIDED,
11 THE STATE TREASURER SHALL IMMEDIATELY RETURN TO THE OWNER THE
12 AMOUNT OF CASH OR SECURITIES SPECIFIED THEREIN.
13 (C) IF THE WELL OWNER OR OPERATOR FAILS OR REFUSES TO COMPLY
14 WITH THE APPLICABLE REQUIREMENTS OF THIS ACT IDENTIFIED IN
15 SUBSECTION (A), THE REGULATIONS PROMULGATED HEREUNDER OR THE
16 CONDITIONS OF THE PERMIT RELATING THERETO, THE DEPARTMENT MAY
17 DECLARE THE BOND FORFEITED AND SHALL CERTIFY THE SAME TO THE
18 ATTORNEY GENERAL, WHO SHALL PROCEED TO ENFORCE AND COLLECT THE
19 FULL AMOUNT OF THE BOND AND, WHERE THE OWNER OR OPERATOR HAS
20 DEPOSITED CASH OR SECURITIES AS COLLATERAL IN LIEU OF A
21 CORPORATE SURETY, THE DEPARTMENT SHALL DECLARE SAID COLLATERAL
22 FORFEITED AND SHALL DIRECT THE STATE TREASURER TO PAY THE FULL
23 AMOUNT OF SAID FUNDS INTO THE WELL PLUGGING RESTRICTED REVENUE
24 ACCOUNT OR TO PROCEED TO SELL SAID SECURITY TO THE EXTENT
25 FORFEITED AND PAY THE PROCEEDS THEREOF INTO THE WELL PLUGGING
26 RESTRICTED REVENUE ACCOUNT. SHOULD ANY CORPORATE SURETY OR
27 [BANK] FINANCIAL INSTITUTION FAIL TO PROMPTLY PAY, IN FULL, A
28 FORFEITED BOND, IT SHALL BE DISQUALIFIED FROM WRITING ANY
29 FURTHER BONDS UNDER THE ACT OR ANY OTHER ENVIRONMENTAL ACT
30 ADMINISTERED BY THE DEPARTMENT. ANY PERSON AGGRIEVED BY REASON
19890H0614B3523 - 28 -
1 OF FORFEITING THE BOND OR CONVERTING COLLATERAL, AS HEREIN
2 PROVIDED, SHALL HAVE A RIGHT TO APPEAL TO THE ENVIRONMENTAL
3 HEARING BOARD IN THE MANNER PROVIDED BY LAW. UPON FORFEITURE OF
4 A BLANKET BOND FOR A VIOLATION OCCURRING AT ONE OR MORE WELL
5 SITES, THE PERSON WHOSE BOND IS FORFEITED SHALL SUBMIT A
6 REPLACEMENT BOND TO COVER ALL OTHER WELLS OF WHICH HE IS OWNER
7 OR OPERATOR WITHIN TEN DAYS OF SAID FORFEITURE. FAILURE TO
8 SUBMIT SAID REPLACEMENT BOND CONSTITUTES A VIOLATION OF THIS
9 SECTION AS TO EACH OF THE WELLS OWNED OR OPERATED BY SAID
10 PERSON.
11 (D) (1) ANY [WELL] OPERATOR OF NOT MORE THAN 200 WELLS WHO
12 CANNOT OBTAIN A BOND FOR A WELL DRILLED PRIOR TO [THE
13 EFFECTIVE DATE OF THIS ACT] APRIL 18, 1985, AS REQUIRED UNDER
14 SUBSECTION (A), DUE TO AN INABILITY TO DEMONSTRATE SUFFICIENT
15 FINANCIAL RESOURCES [SHALL SUBMIT TO THE DEPARTMENT LETTERS
16 OF REJECTION FROM THREE SEPARATE BONDING COMPANIES LICENSED
17 TO DO BUSINESS IN THE COMMONWEALTH. SUCH LETTERS SHALL STATE
18 THAT THE OPERATOR HAS BEEN DENIED A BOND AND STATE THE
19 GROUNDS FOR DENIAL OF THE BOND. IN] MAY, IN LIEU OF THE BOND,
20 [THE OPERATOR SHALL] SUBMIT TO THE DEPARTMENT A FEE IN THE
21 AMOUNT OF $50 PER WELL, OR A BLANKET FEE OF $500 FOR TEN TO
22 20 WELLS, OR A BLANKET FEE OF $1,000 FOR [MORE THAN 20 WELLS]
23 21 TO 100 WELLS, OR A BLANKET FEE OF $2,000 FOR 101 TO 200
24 WELLS, WHICH SHALL BE A [NONREFUNDABLE] FEE PAID EACH YEAR
25 THAT THE OPERATOR HAS NOT FILED A BOND WITH THE DEPARTMENT.
26 [THE OPERATOR MUST DEMONSTRATE EVERY THREE YEARS A CONTINUED
27 INABILITY TO OBTAIN A BOND AS PRESCRIBED ABOVE.] ALL FEES
28 COLLECTED IN LIEU OF A BOND UNDER THIS SUBSECTION SHALL BE
29 [PAID INTO THE WELL PLUGGING RESTRICTED REVENUE ACCOUNT AND
30 SHALL BE USED FOR THE PURPOSES AUTHORIZED BY THIS ACT.]
19890H0614B3523 - 29 -
1 TREATED THE SAME AS BONDS COLLECTED UNDER SUBSECTION (A);
2 PROVIDED, HOWEVER, THAT AN OPERATOR MAY CHOOSE TO PAY A
3 NONREFUNDABLE BLANKET FEE OF $1,000 PER YEAR FOR MORE THAN 20
4 WELLS WHICH FEES SHALL BE PAID INTO THE ABANDONED WELL
5 PLUGGING FUND AND EXPENDED PURSUANT TO SECTION 601(B). THE
6 ENVIRONMENTAL QUALITY BOARD SHALL HAVE THE POWER, BY
7 REGULATION, TO INCREASE THE AMOUNT OF THE FEES ESTABLISHED
8 UNDER THIS SUBSECTION [IF IT IS FOUND THAT THE TOTAL MONEYS
9 COLLECTED HEREUNDER ARE INSUFFICIENT TO REIMBURSE THE
10 COMMONWEALTH FOR COSTS INCURRED IN CORRECTING VIOLATIONS ON
11 WELLS COVERED UNDER THIS SUBSECTION].
12 (2) AN OPERATOR MAY CONTINUE TO PAY A FEE IN LIEU OF A
13 BOND SO LONG AS NO PAYMENTS ARE MISSED FOR WELLS UNDER THIS
14 PROVISION AND SO LONG AS THE WELLS REMAIN IN COMPLIANCE WITH
15 THIS ACT AND REGULATIONS AND PERMITS ISSUED THEREUNDER. IF AN
16 OPERATOR HAS MISSED ANY PAYMENTS FOR WELLS UNDER THIS
17 SUBSECTION, THE DEPARTMENT SHALL ORDER THE OPERATOR TO:
18 (I) IMMEDIATELY SUBMIT THE APPROPRIATE BOND AMOUNT
19 IN FULL; OR
20 (II) CEASE ALL OPERATIONS AND PLUG THE WELLS IN
21 ACCORDANCE WITH SECTION 210.
22 (3) AN OPERATOR WHO, PRIOR TO THE EFFECTIVE DATE OF THIS
23 AMENDATORY ACT, HAS PAID A FEE IN LIEU OF BOND FOR OPERATION
24 OF ANY WELL IN EXISTENCE PRIOR TO APRIL 18, 1985, SHALL BE
25 GRANTED A CREDIT IN THE AMOUNT OF SUCH FEE AGAINST FUTURE
26 BONDS OR FEES IN LIEU OF BONDS WHICH SHALL BE REQUIRED
27 PURSUANT TO THIS AMENDATORY ACT.
28 (D.1) (1) AN INDIVIDUAL WHO CANNOT OBTAIN A BOND TO DRILL
29 NEW WELLS DUE TO AN INABILITY TO DEMONSTRATE FINANCIAL
30 RESOURCES, AS EVIDENCED BY [LETTERS OF REJECTION AS REQUIRED
19890H0614B3523 - 30 -
1 UNDER SUBSECTION (D)] STATEMENTS OF REJECTION FROM TWO
2 SEPARATE BONDING COMPANIES LICENSED TO DO BUSINESS IN THE
3 COMMONWEALTH SET FORTH ON FORMS PROVIDED BY THE DEPARTMENT,
4 MAY MEET THE COLLATERAL BOND REQUIREMENTS OF SUBSECTION (A)
5 BY MAKING PHASED DEPOSITS OF COLLATERAL TO FULLY
6 COLLATERALIZE THE BOND. SUCH INDIVIDUALS SHALL BE LIMITED TO
7 DRILLING [TWO] TEN NEW WELLS PER CALENDAR YEAR. THE
8 INDIVIDUAL SHALL, FOR EACH WELL TO BE DRILLED, DEPOSIT $500
9 AND SHALL, THEREAFTER, ANNUALLY DEPOSIT 10% OF THE REMAINING
10 BOND AMOUNT FOR A PERIOD OF TEN YEARS. INTEREST ACCUMULATED
11 BY THE COLLATERAL SHALL BECOME A PART OF THE BOND UNTIL SUCH
12 TIME AS THE COLLATERAL, PLUS ACCUMULATED INTEREST, EQUALS THE
13 AMOUNT OF THE REQUIRED BOND. THE COLLATERAL SHALL BE
14 DEPOSITED, IN TRUST, WITH THE STATE TREASURER AS PROVIDED IN
15 SUBSECTION (A) OR WITH A BANK SELECTED BY THE DEPARTMENT
16 WHICH SHALL ACT AS TRUSTEE FOR THE BENEFIT OF THE
17 COMMONWEALTH, TO GUARANTEE THE INDIVIDUAL'S COMPLIANCE WITH
18 THE DRILLING, WATER SUPPLY REPLACEMENT, RESTORATION AND
19 PLUGGING REQUIREMENTS OF THIS ACT. THE INDIVIDUAL SHALL BE
20 REQUIRED TO PAY ALL COSTS OF THE TRUST.
21 (2) INDIVIDUALS MAY CONTINUE TO USE PHASED COLLATERAL TO
22 OBTAIN PERMITS SO LONG AS THEY HAVE NOT MISSED ANY PAYMENTS
23 FOR WELLS DRILLED UNDER THIS PROVISION AND SO LONG AS THEY
24 REMAIN IN COMPLIANCE WITH THIS ACT[,] AND REGULATIONS AND
25 PERMITS ISSUED THEREUNDER. IF AN INDIVIDUAL HAS MISSED ANY
26 PAYMENTS FOR WELLS UNDER THIS SUBSECTION, THE DEPARTMENT
27 SHALL ORDER THE INDIVIDUAL TO:
28 (I) IMMEDIATELY SUBMIT THE APPROPRIATE BOND AMOUNT
29 IN FULL; OR
30 (II) CEASE ALL OPERATIONS AND PLUG THE WELLS IN
19890H0614B3523 - 31 -
1 ACCORDANCE WITH SECTION 210.
2 FOR THE PURPOSES OF THIS SUBSECTION AN "INDIVIDUAL" IS DEFINED
3 AS AN APPLICANT WHO IS A NATURAL PERSON DOING BUSINESS UNDER HIS
4 OWN NAME.
5 (E) ALL REMEDIES FOR VIOLATION OF THIS ACT, THE REGULATIONS
6 ADOPTED HEREUNDER OR THE CONDITIONS OF PERMITS ARE EXPRESSLY
7 PRESERVED. NOTHING IN [SUBSECTIONS (A), (B) AND (C)] THIS
8 SECTION SHALL BE CONSTRUED AS AN EXCLUSIVE PENALTY OR REMEDY FOR
9 SUCH VIOLATIONS OF LAW. NO ACTION TAKEN PURSUANT TO [SUBSECTION
10 (C)] THIS SECTION SHALL WAIVE OR IMPAIR ANY OTHER REMEDY OR
11 PENALTY PROVIDED IN LAW.
12 (F) OWNERS OR OPERATORS WHO HAVE FAILED TO MEET THE
13 REQUIREMENTS OF THIS SECTION PRIOR TO THE EFFECTIVE DATE OF THIS
14 AMENDATORY ACT SHALL NOT BE REQUIRED TO MAKE PAYMENTS PURSUANT
15 TO THIS SECTION ON A RETROACTIVE BASIS AS A CONDITION OF
16 OBTAINING A PERMIT UNDER THIS ACT.
17 SECTION 5. SECTIONS 509 AND 601 OF THE ACT ARE AMENDED TO
18 READ:
19 SECTION 509. UNLAWFUL CONDUCT.
20 IT SHALL BE UNLAWFUL FOR ANY PERSON TO:
21 (1) DRILL, ALTER, OPERATE OR UTILIZE AN OIL OR GAS WELL
22 WITHOUT A PERMIT OR REGISTRATION FROM THE DEPARTMENT AS
23 REQUIRED BY THIS ACT OR IN VIOLATION OF THE RULES OR
24 REGULATIONS ADOPTED UNDER THIS ACT, OR ORDERS OF THE
25 DEPARTMENT, OR IN VIOLATION OF ANY TERM OR CONDITION OF ANY
26 PERMIT ISSUED BY THE DEPARTMENT.
27 (2) CONDUCT ANY ACTIVITIES RELATED TO DRILLING FOR, OR
28 PRODUCTION OF, OIL AND GAS, CONTRARY TO THE RULES OR
29 REGULATIONS ADOPTED UNDER THIS ACT, OR ORDERS OF THE
30 DEPARTMENT, OR ANY TERM OR ANY CONDITION OF ANY PERMIT, OR IN
19890H0614B3523 - 32 -
1 ANY MANNER AS TO CREATE A PUBLIC NUISANCE OR TO ADVERSELY
2 AFFECT THE PUBLIC HEALTH, SAFETY, WELFARE OR THE ENVIRONMENT.
3 (3) REFUSE, OBSTRUCT, DELAY OR THREATEN ANY AGENT OR
4 EMPLOYEE OF THE DEPARTMENT IN THE COURSE OF PERFORMANCE OF
5 ANY DUTY UNDER THIS ACT, INCLUDING, BUT NOT LIMITED TO, ENTRY
6 AND INSPECTION UNDER ANY CIRCUMSTANCES.
7 (4) ATTEMPT TO OBTAIN A PERMIT OR IDENTIFY A WELL AS AN
8 ORPHAN WELL BY MISREPRESENTATION OR FAILURE TO DISCLOSE ALL
9 RELEVANT FACTS.
10 (5) CAUSE THE ABANDONMENT OF A WELL BY REMOVAL OF CASING
11 OR EQUIPMENT NECESSARY FOR PRODUCTION WITHOUT PLUGGING THE
12 WELL IN A MANNER PRESCRIBED PURSUANT TO SECTION 210. THE
13 OWNER OR OPERATOR OF A WELL MAY ONLY TEMPORARILY REMOVE
14 CASING OR EQUIPMENT NECESSARY FOR PRODUCTION IF IT IS PART OF
15 THE NORMAL COURSE OF PRODUCTION ACTIVITIES.
16 SECTION 601. [WELL PLUGGING RESTRICTED REVENUE ACCOUNT.] WELL
17 PLUGGING FUNDS.
18 (A) ALL FINES, CIVIL PENALTIES, PERMIT AND REGISTRATION FEES
19 COLLECTED UNDER THIS ACT [SHALL BE PAID INTO THE STATE TREASURY
20 INTO A RESTRICTED REVENUE ACCOUNT TO BE KNOWN AS THE WELL
21 PLUGGING RESTRICTED REVENUE ACCOUNT, HEREBY ESTABLISHED, WHICH
22 SHALL BE ADMINISTERED BY THE DEPARTMENT FOR THE PLUGGING AND
23 SEALING OF ABANDONED WELLS AND TO COVER THE PURPOSES OF
24 ADMINISTERING THIS ACT. ALL THE MONEYS FROM TIME TO TIME PAID
25 INTO THE WELL PLUGGING RESTRICTED REVENUE ACCOUNT ARE
26 SPECIFICALLY APPROPRIATED, UPON ANNUAL APPROVAL BY THE
27 GOVERNOR,] ARE HEREBY APPROPRIATED TO THE DEPARTMENT OF
28 ENVIRONMENTAL RESOURCES TO CARRY OUT THE PURPOSES OF THIS ACT.
29 (B) TO AID IN THE INDEMNIFICATION OF THE COMMONWEALTH FOR
30 THE COST OF PLUGGING ABANDONED WELLS, THERE SHALL BE ADDED TO
19890H0614B3523 - 33 -
1 THE PERMIT FEE ESTABLISHED BY THE DEPARTMENT UNDER SECTION 201
2 FOR NEW WELLS A $50 SURCHARGE. ALL MONEYS [DEPOSITED IN THIS
3 RESTRICTED REVENUE ACCOUNT FROM THE SURCHARGE] COLLECTED AS A
4 RESULT OF THIS SURCHARGE SHALL BE PAID INTO THE STATE TREASURY
5 INTO A RESTRICTED REVENUE ACCOUNT TO BE KNOWN AS THE ABANDONED
6 WELL PLUGGING FUND, HEREBY ESTABLISHED, AND SHALL BE EXPENDED BY
7 THE DEPARTMENT TO PLUG ABANDONED WELLS WHICH THREATEN THE HEALTH
8 AND SAFETY OF PERSONS OR PROPERTY OR POLLUTION OF THE WATERS OF
9 THE COMMONWEALTH.
10 (C) THERE IS HEREBY CREATED A RESTRICTED REVENUE ACCOUNT TO
11 BE KNOWN AS THE ORPHAN WELL PLUGGING FUND. THERE SHALL BE ADDED
12 TO THE PERMIT FEE ESTABLISHED BY THE DEPARTMENT UNDER SECTION
13 201 FOR NEW WELLS A $100 SURCHARGE FOR WELLS TO BE DRILLED TO
14 3,800 FEET IN DEPTH AND A $250 SURCHARGE FOR WELLS TO BE DRILLED
15 TO GREATER THAN 3,800 FEET IN DEPTH, WHICH SURCHARGES SHALL BE
16 PLACED IN THE ORPHAN WELL PLUGGING FUND AND SHALL BE EXPENDED BY
17 THE DEPARTMENT TO PLUG ORPHAN WELLS WHICH THREATEN THE HEALTH
18 AND SAFETY OF PERSONS OR PROPERTY OR POLLUTION OF THE WATERS OF
19 THE COMMONWEALTH. IF AN OPERATOR REHABILITATES A WELL ABANDONED
20 BY ANOTHER OPERATOR OR AN ORPHAN WELL, THE PERMIT FEE AND THE
21 SURCHARGE FOR SUCH WELL SHALL BE WAIVED.
22 (D) IF AN OPERATOR APPROVED BY THE DEPARTMENT PLUGS A WELL
23 ABANDONED BY ANOTHER OPERATOR OR AN ORPHAN WELL, WHICH ABANDONED
24 OR ORPHAN WELL HAS BEEN DETERMINED BY THE DEPARTMENT TO THREATEN
25 THE HEALTH AND SAFETY OF PERSONS OR PROPERTY OR POLLUTION OF THE
26 WATERS OF THE COMMONWEALTH, AND SUCH PLUGGING MEETS THE
27 REQUIREMENTS OF THIS ACT AND RULES AND REGULATIONS PROMULGATED
28 THEREUNDER, THE DEPARTMENT SHALL COMPENSATE THE OPERATOR OR
29 PROVIDE THE OPERATOR WITH A CREDIT AGAINST BONDS OR FEES IN LIEU
30 OF BONDS REQUIRED PURSUANT TO SECTION 215 AT A RATE EQUAL TO THE
19890H0614B3523 - 34 -
1 OPERATOR'S PLUGGING COSTS OR THE DEPARTMENT'S ENGINEERING COST
2 ESTIMATE FOR PLUGGING THE WELL, WHICHEVER COST IS LOWER.
3 SECTION 6. SECTION 602 OF THE ACT IS AMENDED TO READ:
4 SECTION 602. LOCAL ORDINANCES.
5 EXCEPT WITH RESPECT TO ORDINANCES ADOPTED PURSUANT TO THE ACT
6 OF JULY 31, 1968 (P.L.805, NO.247), KNOWN AS THE PENNSYLVANIA
7 MUNICIPALITIES PLANNING CODE AND THE ACT OF OCTOBER 4, 1978
8 (P.L.851, NO.166), KNOWN AS THE FLOOD PLAIN MANAGEMENT ACT, ALL
9 LOCAL ORDINANCES AND ENACTMENTS PURPORTING TO REGULATE OIL AND
10 GAS WELL OPERATIONS REGULATED BY THIS ACT ARE HEREBY SUPERSEDED.
11 NO ORDINANCE OR ENACTMENT HERETOFORE ADOPTED, NOR ANY ORDINANCE
12 OR ENACTMENT ADOPTED BY A MUNICIPALITY PURSUANT TO THIS SECTION,
13 MAY CONTAIN PROVISIONS WHICH IMPOSE CONDITIONS, REQUIREMENTS OR
14 LIMITATIONS WHICH DUPLICATE, SUPPLEMENT, VARY, CONFLICT OR ARE
15 INCONSISTENT WITH THE PROVISIONS OF THIS ACT OR WHICH INTERFERE
16 WITH THE UNIFORM REGULATION OF OIL AND GAS WELL OPERATIONS AS
17 PROVIDED FOR IN THIS ACT. THE COMMONWEALTH, BY THIS ENACTMENT,
18 HEREBY PREEMPTS THE REGULATION OF OIL AND GAS WELLS AS HEREIN
19 DEFINED.
20 SECTION 7. SECTION 603.1 OF THE ACT, ADDED OCTOBER 9, 1986
21 (P.L.1431, NO.135), IS AMENDED TO READ:
22 SECTION 603.1. RELATIONSHIP TO SOLID WASTE AND SURFACE MINING.
23 (A) THE OBLIGATION TO OBTAIN A PERMIT AND POST A BOND
24 PURSUANT TO ARTICLES III AND V OF THE ACT OF JULY 7, 1980
25 (P.L.380, NO.97), KNOWN AS THE SOLID WASTE MANAGEMENT ACT, AND
26 TO PROVIDE PUBLIC NOTICE PURSUANT TO SECTION 1905-A(B)(1)(V) OF
27 THE ACT OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS THE
28 ADMINISTRATIVE CODE OF 1929, FOR ANY PIT, IMPOUNDMENT, METHOD OR
29 FACILITY EMPLOYED FOR THE DISPOSAL, PROCESSING OR STORAGE OF
30 RESIDUAL WASTES GENERATED BY THE DRILLING OF AN OIL OR GAS WELL
19890H0614B3523 - 35 -
1 OR FROM THE PRODUCTION OF SUCH WELLS WHICH IS LOCATED ON THE
2 WELL SITE SHALL BE SATISFIED IF THE OWNER OR OPERATOR OF THE
3 WELL MEETS THE FOLLOWING CONDITIONS:
4 (1) THE WELL IS PERMITTED PURSUANT TO THE REQUIREMENTS
5 OF SECTION 201 OR REGISTERED PURSUANT TO THE REQUIREMENTS OF
6 SECTION 203;
7 (2) THE OWNER OR OPERATOR SATISFIES THE FINANCIAL
8 SECURITY REQUIREMENTS OF SECTION 215 BY OBTAINING A SURETY OR
9 COLLATERAL BOND FOR THE WELL AND WELL SITE; AND
10 (3) THE OWNER OR OPERATOR MAINTAINS COMPLIANCE WITH
11 [THE] THIS ACT AND ANY APPLICABLE REGULATIONS PROMULGATED BY
12 THE ENVIRONMENTAL QUALITY BOARD.
13 (B) OBLIGATIONS UNDER THE ACT OF DECEMBER 19, 1984
14 (P.L.1093, NO.219), KNOWN AS THE NONCOAL SURFACE MINING
15 CONSERVATION AND RECLAMATION ACT, OR ANY RULE OR REGULATION
16 PROMULGATED THEREUNDER, FOR ANY BORROW AREA WHERE MINERALS ARE
17 EXTRACTED SOLELY FOR THE PURPOSE OF OIL AND GAS WELL
18 DEVELOPMENT, INCLUDING ACCESS ROAD CONSTRUCTION, SHALL BE
19 SATISFIED IF THE OWNER OR OPERATOR OF THE WELL MEETS THE
20 CONDITIONS IMPOSED UNDER SUBSECTION (A)(1) AND (2) AND THE OWNER
21 OR OPERATOR MAINTAINS COMPLIANCE WITH THIS ACT AND ANY
22 APPLICABLE REGULATIONS PROMULGATED BY THE ENVIRONMENTAL QUALITY
23 BOARD.
24 [(B)] (C) NOTHING IN THIS SECTION SHALL DIMINISH ANY OTHER
25 DUTIES OR OBLIGATIONS THAT AN OWNER OR OPERATOR MAY HAVE UNDER
26 THE SOLID WASTE MANAGEMENT ACT. THE PROVISIONS OF THIS SECTION
27 SHALL NOT APPLY TO ANY WASTE WHICH IS CLASSIFIED AS A HAZARDOUS
28 WASTE PURSUANT TO THE SOLID WASTE MANAGEMENT ACT, OR THE
29 RESOURCE CONSERVATION AND RECOVERY ACT OF 1976 (PUBLIC LAW 94-
30 580, 90 STAT. 2795, 42 U.S.C. § 6901 ET SEQ.).
19890H0614B3523 - 36 -
1 [(C)] (D) AS USED IN THIS SECTION AND SECTIONS 206 AND 215,
2 THE TERM "WELL SITE" MEANS THE AREAS OCCUPIED BY ALL EQUIPMENT
3 OR FACILITIES NECESSARY FOR OR INCIDENTAL TO THE DRILLING,
4 PRODUCTION OR PLUGGING OF A WELL.
5 SECTION 8. THIS ACT SHALL TAKE EFFECT IN 30 DAYS.
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