PRINTER'S NO.  4278

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

2701

Session of

2012

  

  

INTRODUCED BY MARSHALL, MATZIE, BROOKS, CALTAGIRONE, DALEY, GIBBONS, GOODMAN, GRELL, HESS, MURT, O'NEILL, SWANGER AND BOBACK, OCTOBER 17, 2012

  

  

REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, OCTOBER 17, 2012  

  

  

  

AN ACT

  

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

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Statutes, in development, further providing for definitions

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and for well location restrictions.

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The General Assembly of the Commonwealth of Pennsylvania

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hereby enacts as follows:

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Section 1.  Sections 3203 and 3215(a) and (b) of Title 58 of

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the Pennsylvania Consolidated Statutes, added February 14, 2012

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(P.L.87, No.13), are amended to read:

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§ 3203.  Definitions.

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The following words and phrases when used in this chapter

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shall have the meanings given to them in this section unless the

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context clearly indicates otherwise:

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"Abandoned well."  Any of the following:

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(1)  A well:

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(i)  that has not been used to produce, extract or

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inject any gas, petroleum or other liquid within the

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preceding 12 months;

 


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(ii)  for which equipment necessary for production,

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extraction or injection has been removed; or

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(iii)  considered dry and not equipped for production

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within 60 days after drilling, redrilling or deepening.

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(2)  The term does not include wells granted inactive

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status.

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"Additive."  A hydraulic fracturing chemical.

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"Alteration."  An operation which changes the physical

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characteristics of a well bore, including stimulation or

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removing, repairing or changing the casing. For the purpose of

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this chapter only, the term does not include:

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(1)  Repairing or replacing of the casing if the activity

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does not affect the depth or diameter of the well bore, the

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use or purpose of the well does not change and the activity

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complies with regulations promulgated under this chapter,

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except that this exclusion does not apply:

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(i)  to production casings in coal areas when the

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production casings are also the coal protection casings;

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or

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(ii)  when the method of repairing or replacing the

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casing would affect the coal protection casing.

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(2)  Stimulation of a well.

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"Board."  The Oil and Gas Technical Advisory Board.

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"Bridge."  An obstruction placed in a well at any depth.

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"Building."  An occupied structure with walls and roof within

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which persons live or customarily work.

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"Casing."  A string or strings of pipe commonly placed in

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wells drilled for natural gas or petroleum.

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"Cement" or "cement grout."  Any of the following:

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(1)  Hydraulic cement properly mixed with water only.

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(2)  A mixture of materials adequate for bonding or

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sealing of well bores as approved by regulations promulgated

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under this chapter.

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"Chemical."  Any element, chemical compound or mixture of

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elements or compounds that has its own specific name or

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identity, such as a chemical abstract service number.

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"Chemical Disclosure Registry."  The chemical registry

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Internet website developed by the Ground Water Protection

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Council and the Interstate Oil and Gas Compact Commission or

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their successor organizations.

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"Chemical family."  A group of chemicals that share similar

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chemical properties and have a common general name.

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"Coal mine."  Any of the following:

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(1)  Operations in a coal seam, including excavated

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portions, abandoned portions and places actually being

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worked.

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(2)  Underground workings and shafts, slopes, tunnels and

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other ways and openings, including those which are in the

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course of being sunk or driven, along with all roads and

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facilities connected with them below the surface.

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"Coal operator."  A person that operates or proposes to

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operate a coal mine as an owner or lessee.

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"Completion of a well."  The date after treatment, if any,

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that the well is properly equipped for production of oil or gas,

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or, if the well is dry, the date that the well is abandoned.

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"Department."  The Department of Environmental Protection of

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the Commonwealth.

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"Drilling."  The drilling or redrilling of a well or the

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deepening of an existing well.

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"Fresh groundwater."  Water in that portion of the generally

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recognized hydrologic cycle which occupies the pore spaces and

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fractures of saturated subsurface materials.

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"Gas."  Any of the following:

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(1)  A fluid, combustible or noncombustible, which is

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produced in a natural state from the earth and maintains a

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gaseous or rarified state at standard temperature of 60

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degrees Fahrenheit and pressure 14.7 PSIA.

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(2)  Any manufactured gas, by-product gas or mixture of

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gases or natural gas liquids.

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"Health professional."  A physician, physician assistant,

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nurse practitioner, registered nurse or emergency medical

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technician licensed by the Commonwealth.

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"High quality or exceptional value waters."  Surface waters

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of high quality which satisfy one of the conditions specified in

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25 Pa. Code § 93.4b (relating to qualifying as high quality or

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exceptional value waters).

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"Hydraulic fracturing chemical."  Any chemical substance or

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combination of substances, including any chemicals and

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proppants, that is intentionally added to a base fluid for

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purposes of preparing a stimulation fluid for use in hydraulic

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fracturing.

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"Inactivate."  To shut off the vertical movement of gas in a

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gas storage well by means of a temporary plug or other suitable

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device or by injecting bentonitic mud or other equally nonporous

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material into the well.

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"Linear foot."  A unit or measurement in a straight line on a

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horizontal plane.

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"Natural gas liquids."  Hydrocarbons in natural gas which are

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separated from the gas as liquids through the process of

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absorption, condensation, adsorption or other methods in gas

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processing of cycling plants.

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"Oil."  Hydrocarbons in liquid form at standard temperature

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of 60 degrees Fahrenheit and pressure 14.7 PSIA, also referred

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to as petroleum.

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"Operating coal mine."  Any of the following:

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(1)  An underground coal mine which is producing coal or

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has been in production of coal at any time during the 12

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months immediately preceding the date its status is put in

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question, including contiguous worked-out or abandoned coal

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mines to which it is connected underground.

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(2)  An underground coal mine to be established or

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reestablished under paragraph (1).

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"Operating well."  A well that is not plugged and abandoned.

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"Operator."  A well operator.

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"Orphan well."  A well abandoned prior to April 18, 1985,

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that has not been affected or operated by the present owner or

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operator and from which the present owner, operator or lessee

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has received no economic benefit other than as a landowner or

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recipient of a royalty interest from the well.

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"Outside coal boundaries."  When used in conjunction with the

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term "operating coal mine," the boundaries of the coal acreage

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assigned to the coal mine under an underground mine permit

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issued by the Department of Environmental Protection.

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"Owner."  A person who owns, manages, leases, controls or

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possesses a well or coal property. The term does not apply to

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orphan wells, except where the Department of Environmental

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Protection determines a prior owner or operator benefited from

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the well as provided in section 3220(a) (relating to plugging

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requirements).

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"Person."  An individual, association, partnership,

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corporation, political subdivision or agency of the Federal

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Government, State government or other legal entity.

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"Petroleum."  Hydrocarbons in liquid form at standard

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temperature of 60 degrees Fahrenheit and pressure 14.7 PSIA,

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also referred to as oil.

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"Pillar."  A solid block of coal surrounded by either active

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mine workings or a mined-out area.

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"Plat."  A map, drawing or print accurately drawn to scale

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showing the proposed or existing location of a well or wells.

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"Reservoir protective area."  The area surrounding a storage

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reservoir boundary, but within 2,000 linear feet of the storage

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reservoir boundary, unless an alternate area has been designated

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by the Department of Environmental Protection, which is deemed

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reasonably necessary to afford protection to the reservoir,

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under a conference held in accordance with section 3251

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(relating to conferences).

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"Retreat mining."  Removal of coal pillars, ribs and stumps

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remaining after development mining has been completed in that

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section of a coal mine.

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"Secretary."  The Secretary of Environmental Protection of

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the Commonwealth.

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"Storage operator."  A person who operates or proposes to

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operate a storage reservoir as an owner or lessee.

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"Storage reservoir."  That portion of a subsurface geological

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stratum into which gas is or may be injected for storage

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purposes or to test suitability of the stratum for storage.

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"Unconventional formation."  A geological shale formation

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existing below the base of the Elk Sandstone or its geologic

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equivalent stratigraphic interval where natural gas generally

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cannot be produced at economic flow rates or in economic volumes

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except by vertical or horizontal well bores stimulated by

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hydraulic fracture treatments or by using multilateral well

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bores or other techniques to expose more of the formation to the

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well bore.

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"Unconventional well."  A bore hole drilled or being drilled

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for the purpose of or to be used for the production of natural

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gas from an unconventional formation.

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"Water management plan."  A plan associated with drilling or

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completing a well in an unconventional formation that

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demonstrates that the withdrawal and use of water sources

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protects those sources as required by law and protects public

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health, safety and welfare.

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"Water purveyor."  Any of the following:

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(1)  The owner or operator of a public water system as

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defined in section 3 of the act of May 1, 1984 (P.L.206,

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No.43), known as the Pennsylvania Safe Drinking Water Act.

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(2)  Any person subject to the act of June 24, 1939

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(P.L.842, No.365), referred to as the Water Rights Law.

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"Water source."

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(1)  Any of the following:

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(i)  Waters of this Commonwealth.

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(ii)  A source of water supply used by a water

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purveyor.

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(iii)  Mine pools and discharges.

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(iv)  Any other waters that are used for drilling or

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completing a well in an unconventional formation.

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(2)  The term does not include flowback or production

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waters or other fluids:

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(i)  which are used for drilling or completing a well

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in an unconventional formation; and

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(ii)  which do not discharge into waters of this

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Commonwealth.

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"Well."  A bore hole drilled or being drilled for the purpose

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of or to be used for producing, extracting or injecting gas,

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petroleum or another liquid related to oil or gas production or

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storage, including brine disposal, but excluding a bore hole

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drilled to produce potable water. The term does not include a

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bore hole drilled or being drilled for the purpose of or to be

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used for:

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(1)  Systems of monitoring, producing or extracting gas

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from solid waste disposal facilities, if the bore hole is a

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well subject to the act of July 7, 1980 (P.L.380, No.97),

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known as the Solid Waste Management Act, which does not

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penetrate a workable coal seam.

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(2)  Degasifying coal seams, if the bore hole is:

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(i)  used to vent methane to the outside atmosphere

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from an operating coal mine; regulated as part of the

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mining permit under the act of June 22, 1937 (P.L.1987,

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No.394), known as The Clean Streams Law, and the act of

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May 31, 1945 (P.L.1198, No.418), known as the Surface

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Mining Conservation and Reclamation Act; and drilled by

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the operator of the operating coal mine for the purpose

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of increased safety; or

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(ii)  used to vent methane to the outside atmosphere

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under a federally funded or State-funded abandoned mine

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reclamation project.

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"Well control emergency."  An incident during drilling,

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operation, workover or completion that, as determined by the

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Department of Environmental Protection, poses a threat to public

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health, welfare or safety, including a loss of circulation

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fluids, kick, casing failure, blowout, fire and explosion.

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"Well control specialist."  Any person trained to respond to

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a well control emergency with a current certification from a

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well control course accredited by the International Association

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of Drilling Contractors or other organization approved by the

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Department of Environmental Protection.

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"Well operator."  Any of the following:

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(1)  The person designated as operator or well operator

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on the permit application or well registration.

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(2)  If a permit or well registration was not issued, a

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person who locates, drills, operates, alters or plugs a well

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or reconditions a well with the purpose of production from

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the well.

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(3)  If a well is used in connection with underground

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storage of gas, a storage operator.

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"Wetland."  Areas inundated or saturated by surface water or

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groundwater at a frequency and duration sufficient to support,

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and which normally support, a prevalence of vegetation typically

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adapted for life in saturated soil conditions, including swamps,

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marshes, bogs and similar areas.

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"Workable coal seams."  A coal seam which:

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(1)  is actually being mined in the area in question

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under this chapter by underground methods; or

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(2)  in the judgment of the Department of Environmental

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Protection, can reasonably be expected to be mined by

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underground methods.

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§ 3215.  Well location restrictions.

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(a)  [General rule] Proximity and variance.--

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(1)  Wells may not be drilled within 200 feet, or, in the

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case of an unconventional gas well, 500 feet, measured

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horizontally from the vertical well bore to a building or

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

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required by section 3211(b) (relating to well permits)

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without written consent of the owner of the building or water

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well.

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(2)  [Unconventional] Except as otherwise provided in

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paragraph (3), unconventional gas wells may not be drilled

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within 1,000 feet measured horizontally from the vertical

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well bore to any existing water well, surface water intake,

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reservoir or other water supply extraction point used by a

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water purveyor without the written consent of the water

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purveyor.

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(3)  Unconventional gas wells may not be drilled within

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5,000 feet from a reservoir used by a water purveyor and fed

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by a stream of high quality or exceptional value waters as

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its primary source without the written consent of the water

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purveyor.

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(4)  If consent required under paragraph (2) or (3), as

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applicable, is not obtained and the distance restriction

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would deprive the owner of the oil and gas rights of the

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right to produce or share in the oil or gas underlying the

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surface tract, the well operator [shall] may be granted a

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variance from the distance restriction upon submission of a

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plan identifying the additional measures, facilities or

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practices as prescribed by the department to be employed

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during well site construction, drilling and operations.

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(5)  The variance shall include additional terms and

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conditions required by the department to ensure safety and

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protection of affected persons and property, including

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insurance, bonding, indemnification and technical

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requirements.

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(6)  Notwithstanding section 3211(e), if a variance

3

request has been submitted, the department may extend its

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permit review period for up to 15 days upon notification to

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the applicant of the reasons for the extension.

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(b)  Limitation.--

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

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

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from the vertical well bore or 100 feet from the edge of the

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well site, whichever is greater, measured horizontally from

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any solid blue lined stream, spring or body of water as

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identified on the most current 7 1/2 minute topographic

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quadrangle map of the United States Geological Survey.

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

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unconventional well site must maintain a 100-foot setback

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from the edge of any solid blue lined stream, spring or body

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

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topographic quadrangle map of the United States Geological

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Survey.

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(3)  No unconventional well may be drilled within 300

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

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

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100-foot setback from the boundary of the wetlands.

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(4)  The department [shall] may waive the distance

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restrictions upon submission of a plan identifying additional

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measures, facilities or practices to be employed during well

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site construction, drilling and operations necessary to

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protect the waters of this Commonwealth. The waiver, if

29

granted, shall include additional terms and conditions

30

required by the department necessary to protect the waters of

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

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waiver request has been submitted, the department may extend

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its permit review period for up to 15 days upon notification

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to the applicant of the reasons for the extension.

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* * *

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Section 2.  This act shall take effect immediately.

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