THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SANTARSIERO, DERMODY, GEORGE, MATZIE, STURLA, M. O'BRIEN, BRIGGS, FRANKEL, MURPHY, MUNDY, MAHER, FREEMAN, BROWNLEE, STEPHENS, HANNA, STABACK, TRUITT, HORNAMAN, CALTAGIRONE, MULLERY, DEAN, JOSEPHS, CARROLL, DeLUCA, WILLIAMS, QUINN, ROEBUCK AND MARKOSEK, MAY 31, 2012

REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, MAY 31, 2012  

AN ACT

Amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated

Statutes, in development, further providing for well permits,

for comments by municipalities and storage operators, for

well location restrictions, for protection of water supplies,

for well reporting requirements, for bonding and for criminal

and civil penalties.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 3211(b), 3212.1(a.1) and (b), 3215(a),

(b) and (d), 3218(c) and (d), 3222(b.2), 3225(a)(1), 3255(a) and

(b) and 3256 of Title 58 of the Pennsylvania Consolidated

Statutes, added February 14, 2012 (P.L.87, No.13), are amended  

to read:

§ 3211.  Well permits.

* * *

(b)  Plat.--

(1)  The permit application shall be accompanied by a

plat prepared by a competent engineer or a competent

surveyor, on forms furnished by the department, showing the

political subdivision and county in which the tract of land

upon which the well to be drilled, operated or altered is

located; a list of municipalities adjacent to the well site;

the name of the surface landowner of record and lessor; the

name of all surface landowners and water purveyors whose

water supplies are within 1,000 feet of the proposed well

location or, in the case of an unconventional well, within

[3,000] 4,200 feet from the vertical well bore; the name of

the owner of record or operator of all known underlying

workable coal seams; the acreage in the tract to be drilled;

the proposed location of the well determined by survey,

courses and distances of the location from two or more

permanent identifiable points or landmarks on the tract

boundary corners; the proposed angle and direction of the

well if the well is to be deviated substantially from a

vertical course; the number or other identification to be

given the well; the workable coal seams underlying the tract

of land upon which the well is to be drilled or altered and

which shall be cased off under section 3217 (relating to

protection of fresh groundwater and casing requirements); and

any other information needed by the department to administer

this chapter.

(2)  The applicant shall forward by certified mail a copy

of the plat to the surface landowner; the municipality in

which the tract of land upon which the well to be drilled is

located; each municipality within [3,000] 4,200 feet of the

proposed unconventional vertical well bore; the

municipalities adjacent to the well; all surface landowners

and water purveyors, whose water supplies are within 1,000

feet of the proposed well location or, in the case of an

unconventional well, within [3,000] 4,200 feet of the

proposed unconventional vertical well bore; storage operators

within [3,000] 4,200 feet of the proposed unconventional

vertical well bore; the owner and lessee of any coal seams;

and each coal operator required to be identified on the well

permit application.

* * *

§ 3212.1.  Comments by municipalities and storage operators.

* * *

(a.1)  Storage operators.--A storage operator located within

[3,000] 4,200 feet of a proposed unconventional vertical well

bore may submit written comments to the department describing

circumstances which the storage operator has determined should

be considered by the department in rendering its determination

on the unconventional well permit. A comment under this

subsection must be submitted to the department within 15 days of

the receipt of the plat under section 3211(b). The storage

operator shall simultaneously forward a copy of its comments to

the permit applicant and all other parties entitled to a copy of

the plat under section 3211(b), who may submit a written

response. A written response must be submitted to the department

within ten days of receipt of the comments of the storage

operator.

(b)  Consideration by department.--Comments and responses

under subsections (a) and (a.1) [may] shall be considered by the

department in accordance with section 3215(d) (relating to well

location restrictions).

* * *

§ 3215.  Well location restrictions.

(a)  General rule.--Wells may not be drilled within 200 feet,

or, in the case of an unconventional gas well, [500] 1,200 feet,

measured horizontally from the vertical well bore to a building

or water well, existing when the copy of the plat is mailed as

required by section 3211(b) (relating to well permits) without

written consent of the owner of the building or water well.

Unconventional gas wells may not be drilled within [1,000] 3,000 

feet measured horizontally from the vertical well bore to any

existing water well, surface water intake, reservoir or other

water supply extraction point used by a water purveyor without

the written consent of the water purveyor. [If consent is not

obtained and the distance restriction would deprive the owner of

the oil and gas rights of the right to produce or share in the

oil or gas underlying the surface tract, the well operator shall

be granted a variance from the distance restriction upon

submission of a plan identifying the additional measures,

facilities or practices as prescribed by the department to be

employed during well site construction, drilling and operations.

The variance shall include additional terms and conditions

required by the department to ensure safety and protection of

affected persons and property, including insurance, bonding,

indemnification and technical requirements. Notwithstanding

section 3211(e), if a variance request has been submitted, the

department may extend its permit review period for up to 15 days

upon notification to the applicant of the reasons for the

extension.]

(b)  Limitation.--

(1)  No well site may be prepared or well drilled within

100 feet or, in the case of an unconventional well, [300] 420 

feet from the vertical well bore or [100] 200 feet from the

edge of the well site, whichever is greater, measured

horizontally from any solid blue lined stream, spring or body

of water as identified on the most current 7 1/2 minute

topographic quadrangle map of the United States Geological

Survey.

(2)  The edge of the disturbed area associated with any

unconventional well site must maintain a [100-foot] 300-foot 

setback from the edge of any solid blue lined stream, spring

or body of water as identified on the most current 7 1/2

minute topographic quadrangle map of the United States

Geological Survey.

(3)  No unconventional well may be drilled within 300

feet of any wetlands greater than one acre in size, and the

edge of the disturbed area of any well site must maintain a

[100-foot] 300-foot setback from the boundary of the

wetlands.

[(4)  The department shall waive the distance

restrictions upon submission of a plan identifying additional

measures, facilities or practices to be employed during well

site construction, drilling and operations necessary to

protect the waters of this Commonwealth. The waiver, if

granted, shall include additional terms and conditions

required by the department necessary to protect the waters of

this Commonwealth. Notwithstanding section 3211(e), if a

waiver request has been submitted, the department may extend

its permit review period for up to 15 days upon notification

to the applicant of the reasons for the extension.]

* * *

(d)  Consideration of municipality and storage operator

comments.--The department [may] shall consider the comments

submitted under section 3212.1 (relating to comments by

municipalities and storage operators) in making a determination

on a well permit. [Notwithstanding any other law, no

municipality or storage operator shall have a right of appeal or

other form of review from the department's decision.]

* * *

§ 3218.  Protection of water supplies.

* * *

(c)  Presumption.--Unless rebutted by a defense established

in subsection (d), it shall be presumed that a well operator is

responsible for pollution of a water supply if:

(1)  except as set forth in paragraph (2):

(i)  the water supply is within 1,000 feet of an oil

or gas well; and

(ii)  the pollution occurred within six months after

completion of drilling or alteration of the oil or gas

well; or

(2)  in the case of an unconventional well:

(i)  the water supply is within [2,500] 4,200 feet of

the unconventional vertical well bore; and

(ii)  the pollution occurred within 12 months of the

later of completion, drilling, stimulation or alteration

of the unconventional well.

* * *

(d)  Defenses.--To rebut the presumption established under

subsection (c), a well operator must affirmatively prove any of

the following:

(1)  except as set forth in paragraph (2):

(i)  the pollution existed prior to the drilling or

alteration activity as determined by a predrilling or

prealteration survey;

(ii)  the landowner or water purveyor refused to

allow the operator access to conduct a predrilling or

prealteration survey;

(iii)  the water supply is not within 1,000 feet of

the well;

(iv)  the pollution occurred more than six months

after completion of drilling or alteration activities;

and

(v)  the pollution occurred as the result of a cause

other than the drilling or alteration activity; or

(2)  in the case of an unconventional well:

(i)  the pollution existed prior to the drilling,

stimulation or alteration activity as determined by a

predrilling or prealteration survey;

(ii)  the landowner or water purveyor refused to

allow the operator access to conduct a predrilling or

prealteration survey;

(iii)  the water supply is not within [2,500] 4,200 

feet of the unconventional vertical well bore;

(iv)  the pollution occurred more than 12 months

after completion of drilling or alteration activities; or

(v)  the pollution occurred as the result of a cause

other than the drilling or alteration activity.

* * *

§ 3222.  Well reporting requirements.

* * *

[(b.2)  Trade secret or confidential proprietary

information.--When an operator submits its stimulation record

under subsection (b.1), the operator may designate specific

portions of the stimulation record as containing a trade secret

or confidential proprietary information. The department shall

prevent disclosure of a designated trade secret or confidential

proprietary information to the extent permitted by the act of

February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law 

or other applicable State law.]

* * *

§ 3225.  Bonding.

(a)  General rule.--The following shall apply:

(1)  Except as provided in subsection (d), upon filing an

application for a well permit and before continuing to

operate an oil or gas well, the owner or operator of the well

shall file with the department a bond covering the well and

well site on a form to be prescribed and furnished by the

department. A bond filed with an application for a well

permit shall be payable to the Commonwealth and conditioned

upon the operator's faithful performance of all drilling,

water supply replacement, restoration and plugging

requirements of this chapter. A bond for a well in existence

on April 18, 1985, shall be payable to the Commonwealth and

conditioned upon the operator's faithful performance of all

water supply replacement, restoration and plugging

requirements of this chapter. The amount of the bond required

shall be in the following amounts and may be adjusted by the

Environmental Quality Board every two years to reflect the

projected costs to the Commonwealth of plugging the well:

(i)  For wells with a total well bore length less

than 6,000 feet:

(A)  For operating up to 50 wells, $4,000 per

well, but no bond may be required under this clause

in excess of $35,000.

(B)  For operating 51 to 150 wells, $35,000 plus

$4,000 per well for each well in excess of 50 wells,

but no bond may be required under this clause in

excess of $60,000.

(C)  For operating 151 to 250 wells, $60,000 plus

$4,000 per well for each well in excess of 150 wells,

but no bond may be required under this clause in

excess of $100,000.

(D)  For operating more than 250 wells, $100,000

plus $4,000 per well for each well in excess of 250

wells, but no bond may be required under this clause

in excess of $250,000.

(ii)  For wells with a total well bore length of at

least 6,000 feet:

(A)  For operating up to 25 wells, [$10,000]

$20,000 per well, but no bond may be required under

this clause in excess of [$140,000] $280,000.

(B)  For operating 26 to 50 wells, [$140,000]

$280,000 plus [$10,000] $20,000 per well for each

well in excess of 25 wells, but no bond may be

required under this clause in excess of [$290,000]

$580,000.

(C)  For operating 51 to 150 wells, [$290,000]

$580,000 plus [$10,000] $20,000 per well for each

well in excess of 50 wells, but no bond may be

required under this clause in excess of [$430,000]

$860,000.

(D)  For operating more than 150 wells,

[$430,000] $860,000 plus [$10,000] $20,000 per well

for each well in excess of 150 wells, but no bond may

be required under this clause in excess of [$600,000]

$1,200,000.

* * *

§ 3255.  Penalties.

(a)  General violation.--A person violating a provision of

this chapter commits a summary offense and, upon conviction,

shall be sentenced to pay a fine of not more than [$1,000]

$5,000 or to imprisonment of not more than 90 days, or both.

Each day during which the violation continues is a separate and

distinct offense.

(b)  Willful violation.--A person willfully violating a

provision of this chapter or an order of the department issued

under this chapter commits a misdemeanor and, upon conviction,

shall be sentenced to pay a fine of not more than [$5,000]

$10,000 or to imprisonment of not more than one year, or both.

Each day during which the violation continues is a separate and

distinct offense.

* * *

§ 3256.  Civil penalties.

In addition to other remedies available at law or in equity

for a violation of this chapter, a regulation of the department,

a departmental order or a permit condition, the department,

after a hearing, may assess a civil penalty regardless of

whether the violation was willful. The penalty shall not exceed

[$25,000] $50,000 plus [$1,000] $2,000 for each day during which

the violation continues or, in the case of a violation arising

from the construction, alteration or operation of an

unconventional well, [$75,000] $100,000 plus [$5,000] $10,000 

for each day during which the violation continues. In

determining the amount, the department shall consider

willfulness of the violation, damage or injury to natural

resources of this Commonwealth or their uses, endangerment of

safety of others, the cost of remedying the harm, savings

resulting to the violator as a result of the violation and any

other relevant factor. When the department proposes to assess a

civil penalty, it shall notify the person of the proposed amount

of the penalty. The person charged with the penalty must, within

30 days of notification, pay the proposed penalty in full or

file an appeal of the assessment with the Environmental Hearing

Board. Failure to comply with the time period under this section

shall result in a waiver of all legal rights to contest the

violation or the amount of the penalty. The civil penalty shall

be payable to the Commonwealth and collectible in any manner

provided at law for collection of debts. If a violator neglects

or refuses to pay the penalty after demand, the amount, together

with interest and costs that may accrue, shall become a lien in

favor of the Commonwealth on the real and personal property of

the violator, but only after the lien has been entered and

docketed of record by the prothonotary of the county where the

property is situated. The department may transmit to the

prothonotaries of the various counties certified copies of all

liens. It shall be the duty of each prothonotary to enter and

docket the liens of record in the prothonotary's office and

index them as judgments are indexed, without requiring payment

of costs as a condition precedent to entry.

Section 2.  This act shall take effect immediately.