Regular Session 2017-2018 House Bill 2154 P.N. 3477

PRIOR PRINTER'S NO. 3187

PRINTER'S NO. 3477

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2154

Session of

2018

INTRODUCED BY CAUSER, RAPP, BENNINGHOFF, BERNSTINE, COOK, COX,

CUTLER, DAY, DELOZIER, DIAMOND, DOWLING, DUNBAR, DUSH, ELLIS,

EVANKOVICH, EVERETT, FARRY, FRITZ, GODSHALL, GREINER, GROVE,

A. HARRIS, PHILLIPS-HILL, IRVIN, JAMES, JOZWIAK, KAUFFMAN,

KEEFER, M. K. KELLER, MARSHALL, MARSICO, MASSER, McGINNIS,

METCALFE, METZGAR, MILLARD, MOUL, MUSTIO, NELSON, NESBIT,

OBERLANDER, ORTITAY, PICKETT, PYLE, RADER, REED, REESE, ROAE,

ROTHMAN, RYAN, SANKEY, SAYLOR, SIMMONS, SNYDER, SONNEY,

TALLMAN, TOPPER, WALSH, WARD, WARNER, WATSON, WENTLING,

WHEELAND, ZIMMERMAN AND HEFFLEY, MARCH 19, 2018

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,

MAY 1, 2018

AN ACT

Relating to conventional wells and the development of oil, gas

and coal; imposing powers and duties on the Department of

Environmental Protection; and providing for preliminary

provisions, for general requirements, for underground gas

storage, for enforcement and remedies, for related funds,

parties and activities and for miscellaneous provisions.

TABLE OF CONTENTS

Chapter 1. Preliminary Provisions

Section 101. Short title.

Section 102. Declaration of purpose.

Section 103. Scope.

Section 104. Definitions.

Chapter 3. General Requirements

Section 301. Well permits.

Section 302. Permit objections.

Section 303. Orphan well adoption and identification.

Section 304. Inactive status.

Section 305. Well location restrictions.

Section 306. Well site restoration.

Section 307. Protection of fresh groundwater and casing

requirements.

Section 308. Protection of water supplies.

Section 309. Use of safety devices.

Section 310. Plugging requirements.

Section 311. Alternative methods.

Section 312. Well reporting requirements.

Section 313. Notification and effect of well transfer.

Section 314. Coal operator responsibilities.

Section 315. Bonding.

Chapter 5. Underground Gas Storage

Section 501. Underground gas storage.

Chapter 7. Enforcement and Remedies

Section 701. Conferences.

Section 702. Public nuisances.

Section 703. Enforcement orders.

Section 704. Restraining violations.

Section 705. Criminal penalties.

Section 706. Civil penalties.

Section 707. Existing rights and remedies preserved and

cumulative remedies authorized.

Section 708. Production of materials, witnesses, depositions

and rights of entry.

Section 709. Unlawful conduct.

Section 710. Collection of fines and penalties.

Section 711. Third party liability.

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Section 712. Inspection reports.

Chapter 9. Related Funds, Parties and Activities

Section 901. Well plugging funds.

Section 902. Local ordinances.

Section 903. Effect on department authority.

Section 904. Relationship to solid waste, surface mining,

underground injection wells, wastewater treatment and

recycling by centralized waste treatment facilities

and storage tanks.

Chapter 11. Miscellaneous Provisions

Section 1101. Regulatory authority.

Section 1102. Construction.

Section 1103. Land recycling and remediation.

Section 1104. Repeal.

Section 1105. Continuation.

Section 1106. Effective date.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

CHAPTER 1

PRELIMINARY PROVISIONS

Section 101. Short title.

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

Oil and Gas Wells Act.

Section 102. Declaration of purpose.

The purposes of this act are to:

(1) Permit the optimal development of the oil and gas

resources of Pennsylvania consistent with the property rights

of owners of the oil and gas resources and the protection of

the health, safety, environment and property of the residents

of this Commonwealth.

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(2) Protect the safety of personnel and facilities

employed in the exploration, development, storage and

production of natural gas or oil or the mining of coal.

(3) Protect the safety and property rights of persons

residing in areas where exploration, development, storage or

production occurs.

(4) Protect the natural resources, environmental rights,

property rights and values secured by the Constitution of

Pennsylvania.

(5) Provide a flexible and cost-effective way to

implement and enforce the provisions of this act.

Section 103. Scope.

This act relates to conventional wells and well sites only.

Section 104. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Abandoned well." Any of the following:

(1) A well that has not been used to produce, extract or

inject gas, petroleum or other liquid within the preceding 12

months.

(2) A well for which equipment necessary for production,

extraction or injection has been permanently removed.

(3) A well, considered dry, not equipped for production

within 60 days after drilling, redrilling or deepening,

except that it shall not include a well granted inactive

status.

"Alteration." An operation which changes the physical

characteristics of the well bore, including removing, repairing

or changing the casing. For the purpose of this act only, the

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term shall not include:

(1) Repairing or replacing of casing if the activity

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

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

complies with regulations promulgated under this act.

However, this exclusion shall not apply to production casings

in coal areas when the production casings are also the coal

protection casings and shall not apply when the method of

repairing or replacing the casing would affect the coal

protection casing.

(2) Stimulation of a well.

"Anti-icing." Brine applied directly to a paved road prior

to a precipitation event.

"Bridge." An obstruction placed or occurring naturally in a

well at a specified depth.

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

which persons live or customarily work.

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

wells drilled for natural gas or petroleum.

"Cement" or "cement grout." Hydraulic cement properly mixed

with water only or a mixture of materials adequate for bonding

or sealing of well bores as approved by regulations promulgated

in this act.

"Coal mine." Operations in a coal seam, which include the

excavated and abandoned portions as well as the places actually

being worked, all underground workings and shafts, slopes,

tunnels and other ways and openings and all shafts, slopes,

tunnels and other openings in the course of being sunk or

driven, together with all roads and facilities connected with

them below the surface.

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"Coal operator." A person who proposes or has a permit to

operate or operates a coal mine either as owner or lessee.

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

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

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

"Conventional well." As follows:

(1) A bore hole drilled or being drilled for the purpose

of or to be used for construction of a well regulated under

this act that is not an unconventional well, irrespective of

technology or design.

(2) The term includes, but is not limited to, the

following:

(i) Wells drilled to produce oil.

(ii) Wells drilled to produce natural gas from

formations other than shale formations.

(iii) Wells drilled to produce natural gas from

shale formations located above the base of the Elk Group

or its stratigraphic equivalent.

(iv) Wells drilled to produce natural gas from shale

formations located below the base of the Elk Group where

natural gas can be produced at economic flow rates or in

economic volumes without the use of vertical or

nonvertical well bores stimulated by hydraulic fracture

treatments or multilateral well bores or other techniques

to expose more of the formation to the well bore.

(v) Irrespective of formation, wells drilled for

collateral purposes, such as monitoring, geologic

logging, secondary and tertiary recovery or disposal

injection.

"Council." The Pennsylvania Grade Crude Development Advisory

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Council.

"De-icing." Brine applied directly to a paved road after a

precipitation event.

"Department." The Department of Environmental Protection of

the Commonwealth.

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

deepening of an existing well.

"Dust control." The process of applying a material to the

surface of a dirt road for the purpose of mitigating air

pollution.

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

recognized hydrologic cycle which occupies the pore spaces and

fractures of saturated subsurface materials.

"Gas." A fluid, either combustible or noncombustible, which

is produced in a natural state from the earth and which

maintains a gaseous or rarified state at standard temperature of

60 degrees Fahrenheit and pressure 14.7 PSIA, a manufactured

gas, byproduct gas or mixture of gases.

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

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

device or by injecting bentonitic mud or other equally nonporous

material into the well.

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

horizontal plane.

"Noncoal area." An area where there are no workable coal

seams.

"Notice." For the purpose of providing required notice to

the department, includes notice provided by telephone, e-mail or

other available electronic means.

"Oil" or "petroleum." Hydrocarbons in liquid form at a

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standard temperature of 60 degrees Fahrenheit and pressure of

14.7 PSIA.

"Operating coal mine." The portion of a workable coal seam

which is covered by an active underground mining permit issued

by the department.

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

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

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

operator and from which the present owner, operator or lessee

has received no economic benefit, except only as a landowner or

recipient of a royalty interest from the well.

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

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

assigned to a coal mine under an underground mine permit issued

by the department.

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

possesses a well or coal property; except that for purposes of

sections 303(b)(4) and (5) and 310, the term "owner" shall not

include those owners or possessors of surface real property on

which the abandoned well is located who did not participate or

incur costs in the drilling or extraction operation of the

abandoned well and had no right of control over the drilling or

extraction operation of the abandoned well. This term shall not

apply to orphan wells except where the department determines a

prior owner or operator benefited from the well as provided in

section 310(a).

"Person." An individual, association, partnership,

corporation, political subdivision, agency of the Federal or

State Government or other legal entity.

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

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mine workings or a mined-out area.

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

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

defined in this section.

"Prewetting." Mixing brine with antiskid material prior to

roadway application.

"Retreat mining." The removal of coal pillars, ribs and

stumps that remain after the development mining has been

completed in a section of a coal mine.

"Secretary." The Secretary of Environmental Protection.

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

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

petroleum or other liquid related to oil or gas production or

storage, including brine disposal, but excluding bore holes

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

(1) A mine bore as referenced in 25 Pa. Code Ch. 73

(relating to standards for onlot sewage treatment

facilities).

(2) A bore hole drilled or being drilled for the purpose

of or to be used for systems of monitoring, producing or

extracting gas from solid waste disposal facilities, as long

as the wells are subject to the act of July 7, 1980 (P.L.380,

No.97), known as the Solid Waste Management Act, and do not

penetrate a workable coal seam. The term also does not

include a bore hole drilled or being drilled for the purpose

of or to be used for degasifying coal seams if the following

conditions are satisfied:

(i) (A) the bore hole is used to vent methane to

the outside atmosphere from an operating coal mine;

(B) the bore hole is regulated as part of the

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mining permit under the act of June 22, 1937

(P.L.1987, No.394), known as The Clean Streams Law,

and the act of May 31, 1945 (P.L.1198, No.418), known

as the Surface Mining Conservation and Reclamation

Act; and

the operating coal mine for the purpose of increased

safety; or

(ii) the bore hole is used to vent methane to the

outside atmosphere under a Federally funded or State-

funded abandoned mine reclamation project.

"Well operator" or "operator." A person designated as the

well operator or operator on the permit application or well

registration. Where a permit or registration was not issued, the

term shall mean a person who locates, drills, operates, alters

or plugs a well or reconditions a well with the purpose of

production from the well. In cases where a well is used in

connection with the underground storage of gas, the term also

means a storage operator.

"Well site." The areas occupied by equipment or facilities

necessary for or incidental to drilling, completion, production

of or plugging a well.

"Wetland." An area that is inundated or saturated by surface

or groundwater at a frequency and duration sufficient to

support, and that under normal circumstances supports, a

prevalence of vegetation typically adapted for life in saturated

soil conditions, including swamps, marshes, bogs and similar

areas.

"Workable coal seams." The term includes:

(1) A coal seam in fact being mined in the area in

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question under this act by underground methods.

(2) A coal seam which, in the judgment of the

department, can reasonably be expected to be commercially

mined by underground methods, and which is greater than 28

inches in thickness, greater than 100 feet from the surface

and laterally extensive.

CHAPTER 3

GENERAL REQUIREMENTS

Section 301. Well permits.

(a) Permit required.--Except as provided under subsection

(j), no person shall drill a well or alter an existing well

without having first obtained a well permit under this section

or operate an abandoned or orphan well unless the person is in

compliance with subsection (m). A copy of the permit shall be

kept at the well site during drilling or alteration of the well.

No person shall be required to obtain a permit to redrill a

nonproducing well, if:

(1) the redrilling has been evaluated and approved as

part of an order from the department authorizing the cleaning

out and plugging or replugging of a nonproducing well, under

section 13(c) of the act of December 18, 1984 (P.L.1069,

No.214), known as the Coal and Gas Resource Coordination Act;

and

(2) the redrilling is incidental to the plugging or

replugging operation and the well subsequently is plugged

within 15 days of redrilling.

(b) Plat.--

(1) The permit application shall be accompanied by a

plat prepared by a certified professional in erosion and

sediment control, a competent engineer or a competent

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surveyor on forms to be furnished by the department showing

the following:

(i) The political subdivision and county in which

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

located.

(ii) The name of the surface landowner of record and

lessor.

(iii) The names of all surface landowners or water

purveyors whose water supplies are within 1,000 feet of

the proposed well location.

(iv) The name of the owner of record or operator of

all known underlying workable coal seams, if any.

(v) The acreage in the tract to be drilled.

(vi) The proposed location of the well determined by

survey.

(vii) The courses and distances of the location from

two or more permanent identifiable points or landmarks on

the tract boundary corners.

(viii) The proposed angle and direction of the well,

if the well is to be deviated substantially from a

vertical course.

(ix) The number or other identification to be given

to the well.

(x) The workable coal seams, if any, underlying the

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

altered, which are to be cased off in accordance with

section 307.

(xi) Other information needed by the department to

administer this act.

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

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copy of the plat to the surface landowner, all surface

landowners or water purveyors whose water supplies are within

1,000 feet of the proposed well location, the owner and

lessee, if any, of the workable coal seams and every coal

operator required to be identified on the well permit

application and shall submit proof of the notification with

the well permit application. With respect to surface

landowners, notification shall be accomplished under this

section by sending notice to the persons to whom the tax

notices for the surface property are sent, as indicated in

the assessment books in the county in which the property is

located. With respect to surface landowners or water

purveyors whose water supplies are within 1,000 feet of the

proposed well location, notification shall be made on forms

and in a manner prescribed by the department sufficient to

identify, for those persons, the rights afforded them under

section 308 and the advisability of taking their own

predrilling or prealteration survey. With respect to the coal

operator, lessee or owner, if any, notification shall be

accomplished under this section by sending notice to the

persons to whom tax notices for the workable coal seams are

sent, as indicated in the assessment books, if available, or

as indicated in the records of the recorder of deeds office

in the county in which such seams are located. If certified

mail or notification is returned undeliverable, the applicant

shall include a completed affidavit attesting to the

attempted delivery, which shall satisfy the notification

requirements under this section.

(3) If the applicant submits to the department written

approval of the proposed well location by the surface

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landowner and the coal operator, lessee or owner, if any, of

the coal underlying the proposed well location and no

objections are raised by the department within 15 days of

filing or if no approval has been submitted and no objections

are made to the proposed well location within 15 days from

receipt of the notice by the surface landowner and the coal

operator, lessee or owner, if any, or by the department, the

approval shall be filed and become a permanent record of the

location, subject to inspection at any time by an interested

person.

corporation, partnership or a person that does not reside in

this Commonwealth, the applicant shall designate an agent for

the operator who shall be the attorney in fact for the operator

and who shall be a resident of this Commonwealth upon whom

notices, orders or other communications issued under this act or

the regulations adopted under this act may be served and upon

whom process may be served. Every well operator required to

designate an agent under this section shall, within five days

after the termination of the designation, notify the department

of the termination and designate a new agent.

(d) Permit fee.--An application for a well permit shall be

accompanied by a permit fee, established by regulation of the

department, which bears a reasonable relationship to the cost of

administering this act.

(e) Issuance of permit.--The department shall issue a permit

within 45 days of the submission of a permit application unless

the department denies the permit application for one or more of

the reasons set forth under this subsection, provided that the

department shall have the right to extend the period for 15 days

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for cause shown upon notification to the applicant of the

reasons for that extension. The department may impose permit

terms and conditions as are necessary to assure compliance with

this act and other laws administered by the department. The

department has the burden of proving that the conditions were

necessary to protect against probable harmful impact to health,

safety, environment or property and shall allow the optimal

development of oil and gas resources consistent with the

property rights of the owners of the oil and gas resources. The

department shall have the authority to deny a permit to a person

for the following reasons:

(1) The well site for which a permit is requested is in

violation of the provisions of this act or if issuance of a

permit would result in a violation of this act or any other

applicable environmental statute, rule or regulation.

(2) The permit application is incomplete.

(3) Unresolved objections to the well location by a coal

mine owner or operator remain.

(4) The requirements of section 315 have not been met.

(5) The applicant, with respect to other well or wells

which the applicant operates, is in continuing violation of

this act or other applicable statute administered by the

department. The right of the department to deny a permit

under this paragraph shall not be effective until a final

administrative determination has been made of the violations

and no appeal is pending in which a stay has been granted.

(f) Drilling.--Upon issuance of a permit, the well operator

may proceed with the drilling of the well at the location shown

on the plat after providing the department 24 hours' notice of

the date that drilling will commence. In noncoal areas where

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more than one well is to be drilled as part of the same

development project, only the first well of the project need be

located by survey. The remaining wells of the project shall be

shown on the plat in a manner prescribed by regulation. Prior to

drilling each of the additional project wells, the well operator

shall notify the department of the operator's intention and

provide reasonable notice of the date drilling will commence.

If, before or during the drilling of a well which is not within

the outside boundaries of an operating coal mine, a well

operator encounters conditions of a nature as to render drilling

of the bore hole or portions of the bore hole more hazardous

than usual or otherwise difficult, the well operator shall have

the right upon oral notice to the department to immediately plug

all or portions of the bore hole, if drilling has occurred, and

to commence a new bore hole not more than 50 feet from the

location shown on the plat if the location of the new bore hole

does not violate section 305 and if, for wells subject to the

act of July 25, 1961 (P.L.825, No.359), known as the Oil and Gas

Conservation Law, the new location complies with existing law,

regulation or spacing order and if the new bore hole is a

minimum of 330 feet distant from the nearest lease boundary. If

drilling occurred at a original bore hole, within 10 days of

commencement of the new bore hole, the well operator shall file

with the department a written notice of intention to plug, a

well record, a completion report, a plugging certificate for the

original bore hole and an amended plat for the new bore hole.

The well operator shall forward a copy of the amended plat to

the surface landowner identified on the well permit application

within 10 days of commencement of the new well bore.

(g) Posting.--The well permit number and operator's name,

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address and telephone number shall be posted at the drilling

site in a conspicuous manner prior to commencement of drilling.

(h) Labeling.--The well operator shall install the permit

number issued by the department in a legible, visible and

permanent manner at the well upon completion.

(i) Expiration.--Well permits issued for drilling of wells

covered by this act shall expire three years after issuance

unless operations for drilling the well are commenced within the

period and pursued with due diligence or unless the permit is

renewed in accordance with regulations of the department. If

drilling is commenced during the three-year period, the well

permit shall remain in force until the well is plugged in

accordance with section 310 or the permit is revoked. A drilling

permit issued prior to April 18, 1985, for a well which is an

operating well on April 18, 1985, shall remain in force as a

well permit until the well is plugged in accordance with section

310. Nothing in this subsection shall be construed to rescind

the provisions pertaining to drilling permits contained in the

Oil and Gas Conservation Law.

(j) Exceptions.--The Environmental Quality Board may

establish by regulation certain categories of alterations of

permitted or registered wells for which the permitting

requirements of this section shall not apply. The well operator

or owner who proposes to conduct the alteration activity shall

first obtain a permit from the department. Requirements for

modifications shall be as the Environmental Quality Board shall

require by regulation.

(k) No transfer permitted.--No permit issued under this

section may be transferred without prior approval of the

department. Requests for approval of transfer shall be made on

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forms or in a manner prescribed by the department. The

department shall approve or deny the transfer request within 45

days of receipt of a complete and accurate application. The

department shall only have the authority to deny the request for

the reasons set forth under subsection (e)(4) or (5). Approval

of the transfer request shall permanently transfer

responsibility to plug the well under section 310 to the

recipient of the transferred permit or registration.

(l) Accelerated approval.--The department may establish a

procedure for accelerated approval of well permit applications

in hardship cases, as defined by regulation of the Environmental

Quality Board, consistent with the requirements of this act.

(m) Regulations.--The Environmental Quality Board may

establish by regulation requirements for permitting and

operation of abandoned or orphan wells. A person who proposes to

conduct abandoned or orphan well operations shall first obtain a

permit to adopt and operate an abandoned or orphan well.

Section 302. Permit objections.

(a) General rule.--If a well location referred to in section

301(b) is made so that the well, when drilled, will be located

on a tract whose surface is owned by a person other than the

well operator, the surface landowner affected shall be notified

of the intent to drill and have right to file objections, in

accordance with section 701, based solely on an assertion that

the well location violates section 305 or that information in

the application is untrue in any material respect, within 15

days of the receipt by the surface owner of the plat provided

for in section 301(b). Receipt of notice by the surface owner

shall be presumed to have occurred 15 days from the date of the

certified mailing when the well operator submits a copy of the

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certified mail receipt sent to the surface owner and an

affidavit certifying that the address of the surface owner to

which notice was sent is the same address that is listed in the

assessment books in the county in which the property is located.

If no objections are filed or none are raised by the department

within 15 days after receipt of the plat by the surface

landowner, or if written approval by the surface landowner is

filed with the department and no objections are raised by the

department within 15 days of filing, the department shall

proceed to issue or deny the permit.

(b) Special circumstances.--If a well location referred to

in section 301(b) is made so that the well, when drilled, will

penetrate anywhere within the outside coal boundaries of:

(1) an operating coal mine; or

(2) a coal mine already projected and platted but not

yet being operated for which a technically complete mine

permit application has been filed with the department or

within 1,000 linear feet beyond the boundaries and the well,

when drilled, or the pillar of coal around the well will, in

the reasonable opinion of the coal owner or operator,

endanger the mine, the coal owner or operator affected shall

have the right to file objections in accordance with section

701 to the proposed location within 15 days of the receipt by

the coal operator of the plat provided for in section 301(b).

An alternative location at which the proposed well could be

drilled to overcome the objections shall be indicated if

possible. If no objections to the proposed location are filed

or if none are raised by the department within 15 days after

receipt of the plat by the coal operator or owner, or if

written approval by the coal operator or owner of the

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location is filed with the department and no objections are

raised by the department within 15 days of filing, the

department shall proceed to issue or deny the permit.

coal operator or owner or is made by the department, the

department shall fix a time and place for a conference in

accordance with section 701 not more than 10 days from the date

of the service of the objections on the well operator, at which

conference the well operator and coal operators or owners

present or represented shall consider the objections and attempt

to agree upon a location. If the parties fail to agree upon a

location, the department shall, by an appropriate order,

determine a location on a tract of land as near to the original

location as possible where, in the judgment of the department,

the well can be safely drilled without unduly interfering with

or endangering the mine as described in subsection (b). The new

location, as agreed upon by the parties or as determined by the

department, shall be indicated on the plat on file with the

department and shall become a permanent record, whereupon the

department shall proceed to issue or deny the permit.

(d) Survey.--Within 120 days after the commencement of

drilling operations, the coal operator shall accurately locate

the well by a closed survey on the same datum as the mine

workings or coal boundaries are mapped and file the results of

the survey with the department and forward by certified mail a

copy to the well operator.

Section 303. Orphan well adoption and identification.

(a) Orphan wells.--

(1) Well owners or operators who discover abandoned

wells on property purchased or leased by them shall identify

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the well to the department within 60 days of discovery and

advise the department that they are seeking classification of

the well as an orphan well. No fee shall be required for the

identification.

(2) Operators shall undertake reasonable diligence to

identify abandoned, orphan, active or inactive wells through

review of the department's public well databases and field

examination prior to hydraulic fracturing. The department may

not require operators to undertake landowner surveys for such

wells.

(3) (i) During hydraulic fracturing, the operator shall

periodically monitor orphan, abandoned, active or

inactive wells that are located within the area of the

operator's oil and gas operating interest and are within:

(A) two hundred feet of the top hole location of

an oil well being hydraulically fractured and within

400 feet of a gas well being hydraulically fractured;

(B) half the well field spacing if the spacing

exceeds the distances under clause (A).

(ii) The area of monitoring for horizontal

conventional wells shall include wells within half the

well field distances of the lateral portion of the wells.

An operator shall provide notice to the department if the

well being hydraulically fractured communicates with the

monitored well in a manner that has the potential to

cause an adverse environmental impact.

(4) A person who is not a well owner or operator and who

discovers an abandoned well on property owned or leased by

the person shall identify the well to the department within

20180HB2154PN3477 - 21 -

60 days of discovery and advise the department that the

person is seeking classification of the well as an orphan

well. No fee shall be required for the identification.

(5) A person who proposes to conduct orphan well

operations shall first obtain a permit to adopt and operate

an orphan well in accordance with section 301.

(b) Information.--Information regarding wells to be

identified shall be provided on forms or in a manner prescribed

by the department and shall include:

(1) The name and address of the well operator and, if

the well operator is a person that does not reside in this

Commonwealth, the name and address of an agent for the

operator upon whom notices, orders, process or other

communications issued under this act may be served.

(2) The well name and the location of the well indicated

by a point on a 7.5-minute United States Geological Survey

topographic map or any other location description sufficient

to enable the department to locate the well on the ground.

(3) The approximate date of the drilling and completion

of the well and the approximate depth of the well, producing

horizons, well construction information and driller's logs,

if available.

(4) An indemnity bond, an alternative fee in lieu of

bonding or other evidence of financial security submitted by

the well operator and deemed appropriate by the department as

satisfying the requirements of section 315. No bond,

alternative fee or other evidence of financial security shall

be required for identification of an orphan well.

guidelines designed to ensure a fair implementation of this

20180HB2154PN3477 - 22 -

section which recognizes the practical difficulties of locating

unpermitted wells and complying with the reporting requirements

of this act.

Section 304. Inactive status.

(a) General rule.--Upon application, the department shall

grant, within 60 days of receipt of the application, inactive

status for a permitted or registered well if the following

requirements are met:

(1) The condition of the well is sufficient to prevent

damage to the producing zone or contamination of fresh water

or other natural resources or surface leakage of any

substance.

(2) The condition of the well is sufficient to stop the

vertical flow of fluids or gas within the well bore and is

adequate to protect freshwater aquifers, unless the well

poses a threat to the health and safety of persons or

property or to the environment.

(3) The operator anticipates future use of the well for

primary or enhanced recovery or future gas storage, or the

operator anticipates the construction of a pipeline for

approved disposal or other appropriate uses related to oil

and gas well production.

(4) The applicant satisfies the bonding requirements of

sections 303 and 315, except that the department may require

additional financial security for a well on which an

alternative fee is being paid in lieu of bonding under

section 315(d).

(b) Monitoring.--The owner or operator of a well granted

inactive status shall be responsible for monitoring the

mechanical integrity of the well to ensure that the requirements

20180HB2154PN3477 - 23 -

of subsection (a)(1) and (2) are met and shall report the same

on an annual basis to the department in a manner and form as the

department shall prescribe by regulation. A well granted

inactive status under subsection (a) shall be plugged when the

well no longer meets the requirements of subsection (a).

been granted inactive status for a well which is returned to

active status shall notify the department that the well has been

returned to active status. The owner or operator may make

application to return the well to inactive status in accordance

with subsection (a).

(d) Revocation of inactive status.--

(1) The department shall have the right to revoke

inactive status and order the immediate plugging of a well

under any of the following circumstances:

(i) When the well is in violation of this act or

rules or regulations promulgated under this act.

(ii) When the owner or operator demonstrates

inability to perform the owner's or operator's

obligations under this act.

(iii) When the owner or operator becomes financially

insolvent.

(iv) Upon receipt by the department of notice of

bankruptcy proceedings by the permittee.

(2) If the department revokes inactive status, a well

owner or operator aggrieved by the denial shall have the

right to appeal the denial to the Environmental Hearing Board

within 30 days of receipt of the revocation. Upon cause shown

by a well owner or operator, the Environmental Hearing Board

may grant a supersedeas under section 4 of the act of July

20180HB2154PN3477 - 24 -

13, 1988 (P.L.530, No.94), known as the Environmental Hearing

Board Act, to allow the well to retain inactive status during

the period of appeal.

Section 305. Well location restrictions.

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

measured horizontally from an existing building or existing

water well without the written consent of the owner of the

existing building or existing water well. Where the distance

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

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

surface tract, the well operator may be granted a variance from

the distance restriction upon submission of a plan which

identifies the additional measures, facilities or practices to

be employed during well site construction, drilling and

operations. The variance, if granted, shall include additional

terms and conditions as the department requires as necessary to

ensure the safety and protection of affected persons and

property. The provisions may include insurance, bonding and

indemnification, as well as technical requirements.

(b) Limitation.--No well site may be prepared or well

drilled within 100 feet measured horizontally from a stream,

spring or body of water as identified on the most current 7.5-

minute topographic quadrangle map of the United States

Geological Survey or within 100 feet of wetlands greater than

one acre in size. The department may waive the distance

restrictions upon submission of a plan which identifies the

additional measures, facilities or practices to be employed

during well site construction, drilling and operations. The

waiver, if granted, shall impose permit conditions as are

necessary to protect the waters of this Commonwealth.

20180HB2154PN3477 - 25 -

permit applicants are obligated to determine impacts to

threatened or endangered species in accordance with applicable

law. The department shall, on making a determination on a well

permit, consider the impact of the proposed well on habitats of

threatened or endangered species that are listed in a final

rulemaking by a Federal or State agency with statutory authority

to list species for protection.

Section 306. Well site restoration.

(a) General rule.--Each oil or gas well owner or operator

shall restore the land surface within the area disturbed in

siting, drilling, completing and producing the well.

(b) Plan.--During and after all earthmoving or soil

disturbing activities, including, but not limited to, activities

related to siting, drilling, completing, producing and plugging

the well, erosion and sedimentation control measures shall be

implemented in accordance with an erosion and sedimentation

control plan prepared in accordance with the act of June 22,

1937 (P.L.1987, No.394), known as The Clean Streams Law. For

purpose of determining the five-acre permit threshold under the

Clean Streams Law, the earth disturbance footprint of the well

site may be combined with a portion of the access road only if

it is directly connected to the well site and will be

constructed at the same time as the well site. Well sites may be

restored prior to drilling and completing the well.

months after completion of drilling of a well, the owner or

operator shall restore the well site, remove or fill all pits

used to contain produced fluids or industrial wastes and remove

all drilling supplies and equipment not needed for production or

20180HB2154PN3477 - 26 -

repairs. Drilling supplies and equipment not needed for

production or repairs may be stored on the well site consistent

with the property rights of the owner of the oil and gas

resources or if the express written consent of the surface

landowner is obtained or is contained in historical documents.

(d) Production and storage equipment.--Within nine months

after plugging a well, the owner or operator shall remove all

production or storage facilities, supplies and equipment and

restore the well site.

(e) Clean Streams Law.--Restoration activities required by

this act or in regulations promulgated under this act shall not

be more stringent than applicable provisions of The Clean

Streams Law. There shall be no mandatory requirement to return

well sites to approximate original contours or conditions.

(f) Violation.--Failure to restore the well site as required

in this act or in regulations promulgated under this act is a

violation of this act.

(g) Extension of restoration.--The restoration period may be

extended by the department for an additional 12 months upon

application of the well owner or operator providing evidence of

inability to comply due to adverse weather conditions or lack of

essential fuel, equipment or labor, or upon a demonstration that

the extension will result in less earth disturbance, increased

water reuse or more efficient development of the resource.

Section 307. Protection of fresh groundwater and casing

requirements.

(a) General rule.--To aid in the protection of fresh

groundwater, the well operator shall control and dispose of

brines produced from the drilling, alteration or operation of an

oil or gas well in a manner consistent with the act of June 22,

20180HB2154PN3477 - 27 -

1937 (P.L.1987, No.394), known as The Clean Streams Law, or any

rule or regulation promulgated under The Clean Streams Law.

(b) Casing.--To prevent the migration of gas or fluids into

sources of fresh groundwater and to prevent pollution or

diminution of fresh groundwaters, there shall be run and

permanently cemented a string or strings of casing in each well

drilled through the fresh water-bearing strata to a depth and in

a manner prescribed by regulation by the department. The

regulations shall be consistent with practices that have proven

to be satisfactory in regional areas and are in accordance with

geologic variability or anomalies in the regional areas. If it

is anticipated that cement used to permanently cement the

surface casing cannot be circulated to the surface, a cement

basket may be installed immediately above the depth of the last

circulation zone. The casing shall be permanently cemented by

the displacement method. Additional cement may be added above

the cement basket, if necessary, by pumping from the surface to

fill the annular space.

be employed as the production casing, provided the operator

pumps a volume of cement equal to or greater than 120% of the

calculated annular space and, at well completion or earlier, the

top of the cement is determined to be at or above the depth of

50% of the casing. If the casing coverage is insufficient, the

operator shall produce oil only leaving the annulus open, run

alternative production casing or pump additional cement through

a pour string from the surface to fill the annular space.

(d) Procedure when coal removed.--When a well is drilled at

a location where the coal has been removed from one or more coal

seams, the well shall be drilled and cased to prevent the

20180HB2154PN3477 - 28 -

migration of gas or fluids into the seam from which the coal has

been removed, in a manner prescribed by regulation of the

department. The department and the coal operator, owner or

lessee shall be given at least 72 hours' notice prior to

commencement of the work protecting the mine.

(e) Procedure when coal not removed.--When a well is drilled

at a location where the coal seam has not been removed, the well

shall be drilled to a depth and size as will permit the placing

of casing, packers in, and vents on, the hole at the points and

in a manner prescribed by the department by regulation as will

exclude all gas or fluids from the coal seam, except as may be

found naturally in the coal seam itself, and will enable the

monitoring of the integrity of the production casing.

Section 308. Protection of water supplies.

(a) General rule.--A well operator who affects a public or

private water supply by pollution or diminution shall restore or

replace the affected supply with an alternate source of water

adequate in quantity or quality for the purposes served by the

supply. The quality of a restored or replaced water supply will

be deemed adequate if it meets the standards established under

the act of May 1, 1984 (P.L.206, No.43), known as the

Pennsylvania Safe Drinking Water Act, or is comparable to the

quality of the water supply before it was affected by the

operator if that water supply did not meet these standards.

(b) Pollution or diminution of water supply.--A landowner or

water purveyor suffering pollution or diminution of a water

supply as a result of the drilling, alteration or operation of

an oil or gas well may notify the department and request that an

investigation be conducted. Within 10 days of the notification,

the department shall investigate the claim. If the department

20180HB2154PN3477 - 29 -

finds that the pollution or diminution was caused by the

drilling, alteration or operation activities or if it presumes

the well operator responsible for pollution under subsection

(c), the department shall issue orders to the well operator as

are necessary to assure compliance with subsection (a). The

orders may include orders requiring the temporary replacement of

a water supply where it is determined that the pollution or

diminution may be of limited duration.

five defenses established in subsection (d), it shall be

presumed that a well operator is responsible for the pollution

of a water supply that is within 1,000 feet of the oil or gas

well where the pollution occurred within six months after the

completion of drilling or alteration of the well.

(d) Defenses.--In order to rebut the presumption of

liability established in subsection (c), the well operator must

affirmatively prove one of the following five defenses:

(1) The pollution existed prior to the drilling or

alteration activity as determined by a predrilling or

prealteration survey.

(2) The landowner or water purveyor refused to allow the

operator access to conduct a predrilling or prealteration

survey.

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

well.

(4) The pollution occurred more than six months after

completion of drilling or alteration activities.

(5) The pollution occurred as the result of some cause

other than the drilling or alteration activity.

(e) Independent survey.--An operator electing to preserve

20180HB2154PN3477 - 30 -

its defenses under subsection (d)(1) or (2) shall retain the

services of an independent certified laboratory to conduct the

predrilling or prealteration survey of water supplies. A copy of

the results of the survey shall be submitted to the department

and the landowner or water purveyor in a manner prescribed by

the department.

(f) Other remedies preserved.--Nothing in this section shall

prevent a landowner or water purveyor who claims pollution or

diminution of a water supply from seeking any other remedy at

law or in equity.

Section 309. Use of safety devices.

A person engaged in drilling an oil or gas well shall equip

the well with casings of sufficient strength and with other

safety devices as may be necessary in a manner prescribed by

regulation of the department and shall use every effort and

endeavor effectively to prevent blowouts, explosions and fires.

Section 310. Plugging requirements.

(a) General rule.--Upon abandoning a well, the owner or

operator of the well shall plug the well in a manner prescribed

by regulation of the department in order to stop a vertical flow

of fluids, other than artesian flow, or gas within the well

bore, unless the department has granted inactive status for the

well under section 304 or the well has been approved by the

department as an orphan well under section 303. Where the

department determines that a prior owner or operator received

economic benefit, other than economic benefit derived only as a

landowner or from a royalty interest subsequent to April 18,

1979, from an orphan well or from a well which has not been

registered, the owner or operator shall be responsible for the

plugging of the well. In the case of gas wells penetrating

20180HB2154PN3477 - 31 -

workable coal seams which were drilled prior to January 30,

1956, or which were permitted after that date but not plugged in

accordance with this act, which the owner or operator of the

well or a coal operator or his agent proposes to plug for the

purpose of allowing the mining through of the well, the gas well

shall be cleaned out to a depth of at least 200 feet below the

coal seam in which the mining through is proposed and, unless

impracticable, to a point 200 feet below the deepest mineable

coal seam. The gas well shall be plugged from that depth in

accordance with the provisions of section 13 of the act of

December 18, 1984 (P.L.1069, No.214), known as the Coal and Gas

Resource Coordination Act, and the regulations of the

department.

(b) Areas underlain by coal.--Prior to the abandonment of a

well in an area underlain by a workable coal seam, the well

operator or owner shall notify the coal operator, lessee or

owner and the department of the well operator's or owner's

intention to plug and abandon the well and submit a plat, on a

form to be furnished by the department, showing the location of

the well and fixing the date and time at which the work of

plugging will be commenced, not less than three working days nor

more than 30 days after receipt of the notice, in order that

their representatives may be present at the plugging of the

well. The notice may be waived by the department and the coal

operator, lessee or owner, who may waive their right to be

present, but the waiver by a coal operator, lessee or owner

shall be in writing and a copy attached to the notice of

abandonment filed with the department under this section.

Whether or not the representatives appear, the well operator

may, if the operator has fully complied with the requirements of

20180HB2154PN3477 - 32 -

this section, proceed at the time fixed to plug the well in the

manner as prescribed by regulation of the department. When

plugging has been completed, a certificate shall be prepared and

signed on a form to be furnished by the department by two

experienced and qualified people who participated in the work

and shall set forth the time and manner in which the well has

been plugged. One copy of the certificate shall be mailed to

each coal operator, lessee or owner to whom notice was given by

certified mail, and another copy shall be mailed to the

department.

except an uncompleted bore hole plugged immediately upon

suspension of drilling in an area not underlain by a workable

coal seam, the well operator shall notify the department of the

well operator's intention to plug and abandon the well and

submit a plat or the longitude or latitude of the well, on a

form to be furnished by the department, showing the location of

the well and fixing the date and time at which the work of

plugging will be commenced, not less than three working days nor

more than 30 days after the time when the notice is received, in

order that the department representative may be present at the

plugging of the well. The notice or waiting period may be

verbally waived by the department. In noncoal areas where more

than one well has been drilled as part of the same development

project and the wells are now to be plugged, three working days'

notice shall be provided to the department prior to plugging the

first well of the project, subject to waiver of notice described

in this section. In the plugging of subsequent wells, no

additional notice shall be required if the plugging on the

project is continuous. If the plugging of subsequent wells is

20180HB2154PN3477 - 33 -

delayed for any reason, notice shall be given to the department

of the continuation of the project. Whether or not a department

representative appears, the well operator may, if the well

operator has fully complied with the requirements of this

section, proceed at the time fixed to plug the well in the

manner as prescribed by regulation of the department. When

plugging has been completed, a certificate shall be prepared and

signed on a form to be furnished by the department by two

experienced and qualified people who participated in the work,

and shall set forth the time and manner in which the well was

plugged. A copy of the certificate shall be mailed to the

department.

(d) Wells abandoned upon completion of drilling.--When a

well is to be abandoned immediately after completion of

drilling, the well operator shall give at least 24 hours' notice

by telephone, confirmed by certified mail, to the department and

to the coal operator, lessee or owner, if any, fixing the date

and time at which the work of plugging will be commenced. The

notice may be waived by the department and the coal operator,

lessee or owner, who may waive their right to be present.

Whether or not a representative of the department or of the coal

operator, lessee or owner, if any, appear, the well operator

may, if the well operator has fully complied with the

requirements of this section, proceed at the time fixed to plug

the well in the manner provided by regulation prescribed by the

department. The well operator shall prepare the certificate of

plugging and mail copies of the certificate of plugging as

provided in subsections (b) and (c).

(e) Orphan wells.--If a well is an orphan well or abandoned

without plugging or if a well is in operation but is not adopted

20180HB2154PN3477 - 34 -

under section 303, the department shall have the right to enter

upon the well site and plug the well and to sell the equipment,

casing and pipe at the abandoned well or unregistered well site

as may have been used in the production of the well in order to

recover the costs of plugging. In the case of a well which is in

operation but has not been adopted, the department shall make an

effort to determine ownership of the well and provide written

notice to the owner of pending action which may be taken under

this subsection. If the department cannot determine ownership of

the well within 30 days, it may proceed under this subsection.

Costs of plugging shall have priority over all liens on

equipment, casing and pipe, and the sale shall be free and clear

of any liens to the extent the costs of plugging exceed the sale

price. If the equipment price obtained for casing and pipe

salvaged at the abandoned well or unregistered well site is

inadequate to pay for the cost of plugging the abandoned or

unregistered well, the owner or operator of the abandoned or

unregistered well shall be legally liable for the additional

costs of plugging the well. Notwithstanding provisions to the

contrary, and provided that a reasonable attempt failed to place

plugging materials at the producing formations, an orphan well

in a noncoal area may be plugged from the casing seat as the

attainable bottom of the well.

(f) Limitation of liability.--A person is not subject to

liability for environmental remediation related to an orphan

well and is not required to plug an orphan well solely because

the person obtains approval from the department to plug an

orphan well. A person undertaking the plugging of an orphan well

with approval from the department is eligible for all

protections and immunities provided under 27 Pa.C.S. § 8107

20180HB2154PN3477 - 35 -

(relating to project liability limitation and exceptions). The

notice provisions under 27 Pa.C.S. § 8107 shall not apply to the

approval and protections provided under this section. Notice to

the department and the surface owner shall be provided on forms

developed by the department. When plugging has been completed, a

certificate shall be prepared and signed on a form to be

furnished by the department by two experienced and qualified

individuals who participated in the work and set forth the time

and manner in which the well was plugged. A copy of the

certificate shall be mailed to the department.

(g) Persons who voluntarily plug an orphan well.--Persons

who voluntarily plug an orphan well may either:

(1) apply to the Commonwealth Finance Authority for a

$5,000 payment per well plugged payable from the Marcellus

Legacy Fund established under 58 Pa.C.S. § 2315 (relating to

Statewide initiatives); or

(2) be credited for each plugged well in the form of a

permit-fee waiver for any succeeding well permit application.

(h) Notification.--With respect to the coal operator, lessee

or owner, if any, notification shall be accomplished under this

section by sending notice to the persons to whom tax notices for

the workable coal seams are sent, as indicated in the assessment

books, if available, or as indicated in the records of the

recorder of deeds office in the county in which such seams are

located. If certified mail or notification is returned

undeliverable, the applicant shall include a completed affidavit

attesting to the attempted delivery, which shall satisfy the

notification requirements under this section.

Section 311. Alternative methods.

If provision is made in this act for adoption of regulatory

20180HB2154PN3477 - 36 -

requirements for casing, plugging or equipping a well, a well

operator may request the authority to use an alternative method

or material by filing an application with the department

describing the proposed alternative method or material, in

reasonable detail, indicating the manner in which it will

accomplish the goals of this act and regulations adopted under

this act. Notice of filing of an application shall be given by

the well operator by certified mail to all coal operator or

operators affected. A coal operator may, within 15 days

following the notice, file objections to the proposed

alternative method or material. If no objections are filed

within the 15-day period and if none are raised by the

department, the department shall make a determination whether to

allow the use of the proposed alternative method or material.

Section 312. Well reporting requirements.

(a) General rule.--A well operator shall file, either

electronically or a hard copy, with the department, on a form

provided by the department, an annual report specifying the

amount of production on the most well-specific basis available.

Annual reports shall also specify the status of each well,

except that in subsequent years only changes in the status must

be reported. The Commonwealth shall have the right to utilize

the information in enforcement proceedings, in making

designations or determinations under section 1927-A of the act

of April 9, 1929 (P.L.177, No.175), known as The Administrative

Code of 1929, or in aggregate form for statistical purposes.

(b) Records.--

(1) Well operators shall maintain a record of each well

drilled or altered.

(2) A record of the well containing information as

20180HB2154PN3477 - 37 -

required by regulation shall be filed with the department

within 30 days of cessation of drilling.

(3) A completion report containing additional

information as required by regulation shall be filed with the

department within 30 days after the completion of the well

and it shall be kept on file by the department.

(4) Within 90 days after the completion of drilling or

recompletion of a well, if requested by the department, the

well operator shall submit a copy of the electrical,

radioactive or other standard industry logs if they have been

run.

(5) If requested by the department within one year, the

well operator shall file a copy of drill stem test charts,

formation water analysis, porosity, permeability or fluid

saturation measurements, core analysis and lithologic log or

sample description or other similar data as compiled. No

information shall be required unless the well operator has

had the information compiled in the ordinary course of

business. No interpretation of the data is to be filed.

prior to commencement of drilling, the well operator shall

collect for the department additional data as the department

shall specify, such as representative drill cuttings and samples

from cores taken and any other geological information that the

operator reasonably can compile. No interpretation of the data

is to be filed.

(d) Retention and filing.--All electrical, radioactive or

other standard industry logs, drill stem test charts, formation

water analyses, porosity, permeability or fluid saturation

measurements, core analysis and lithologic logs or sample

20180HB2154PN3477 - 38 -

description or other similar data as compiled, required under

subsection (b) or drill cuttings required under subsection (c),

shall be retained by the well operator and shall be filed with

the department within three years after completion of the well.

Upon request of the well operator, the department shall extend

the date for the filing of the data, but the extension shall not

exceed five years from the date of completion of the well,

provided that the department shall have the right to utilize the

information in enforcement proceedings, in making designations

or determinations under section 1927-A of The Administrative

Code of 1929, or in aggregate form for statistical purposes.

Section 313. Notification and effect of well transfer.

The owner or operator of a well shall notify the department,

in writing, in a form as the department may direct by

regulation, of the sale, assignment, transfer, conveyance or

exchange by the owner or to the owner of the well within 30 days

after the sale, assignment, conveyance or exchange. No transfer

shall relieve the well owner or operator of an obligation

accrued under this act, nor shall it relieve the well owner or

operator of the obligation to plug the well until the

requirements of section 315 have been met, after which time the

transferring owner or operator shall be relieved from any

obligation under this act, including the obligation to plug the

well.

Section 314. Coal operator responsibilities.

(a) General rule.--

(1) At any time prior to removing coal or other

underground material or extending the workings in a coal mine

within 500 feet of an oil or gas well of which the coal

operator has knowledge or an approved well location of which

20180HB2154PN3477 - 39 -

the coal operator has knowledge, the coal operator shall

forward, by certified mail, to or file with the well operator

and the department a copy of the relevant part of the coal

operator's maps and plans which it is presently required by

law to prepare and file with the department, showing the

pillar which the coal operator proposes to leave in place

around each oil or gas well in the projected workings.

(2) Following the filing of maps and plans, the coal

operator may proceed with mining operations in the manner

projected on the maps and plans, but the coal operator shall

not remove any coal or cut any passageway within 150 feet of

a well or approved well location until written approval has

been granted as provided in this section.

(3) If, in the opinion of the well operator or the

department, the plan indicates that the pillar proposed to be

left around a well or approved well location is inadequate to

protect either the integrity of the well or the public health

and safety, the well operator affected shall attempt to agree

with the coal operator upon a suitable pillar, subject to the

approval of the department, but, failing to agree, the well

operator may, within 10 days from receipt of the plan, file

objections in accordance with section 701 to the proposed

plan indicating the size of the pillar to be left with

respect to each well.

(4) If no objections are filed within the 10-day period

or if none are raised by the department, the department shall

grant approval to the coal operator reciting the following:

(i) The filing of the maps or plans.

(ii) That no objections have been made to the plan.

(iii) That the pillar proposed to be left for each

20180HB2154PN3477 - 40 -

well is approved in the manner as projected.

(b) Objections.--

(1) If objections are filed by a well operator or are

raised by the department, the department shall direct that a

conference be held in accordance with section 701 within 10

days of the filing of the objections.

(2) At the conference the coal operator and the person

who has filed the objections shall attempt to agree upon a

proposed plan showing the pillar to be left around each well,

which will satisfy the objections and be approved by the

department, and if the plan is agreed upon, the department

shall grant approval to the coal operator reciting the filing

of the plan and that the pillar to be left for each well is

approved as agreed upon.

(3) If no plan showing the pillar to be left with

respect to each well can be agreed upon at the conference,

the department shall, by an appropriate order, determine the

pillar to be left with respect to the well.

(4) In a proceeding under this section, the department

shall follow as nearly as possible the original plan filed by

the coal operator. The department shall not require the coal

operator to leave a pillar in excess of 100 feet in radius,

except that, if it is established that unusual conditions

exist requiring the leaving of a larger pillar, the

department may require a pillar up to but not exceeding 150

feet in radius.

(5) The pillar to be left with respect to each well as

determined by the department shall be shown on the maps or

plans on file with the department as provided in subsection

(a) and the department shall approve the pillar to be left

20180HB2154PN3477 - 41 -

for each well.

time to the department by a coal operator to leave a pillar of

less size than that shown on the plan filed by the operator or

approved or determined by the department under the provisions of

this section. If an application is filed, the department may,

following the procedure prescribed in this section, by an

appropriate order, determine a different plan showing a pillar

of less size with respect to all wells covered by the

application and shall grant approval for the pillar to be left

with respect to each well.

(d) Violation.--No coal operator shall, without the written

approval of the department after notice and opportunity for

hearing as prescribed in this section, remove any coal or cut

any passageway so as to leave a pillar of less size with respect

to an oil or gas well than that approved by the department under

this act.

(e) Construction.--Nothing in this act shall be construed to

require a well operator to pay for a coal pillar required by law

to be left around a well drilled prior to April 18, 1985. A

requirement for a coal operator to leave a pillar of coal of a

certain size around a well drilled after April 18, 1985, shall

not in any way affect the rights which the coal operator would

have had prior to April 18, 1985, to obtain payment for the

coal, nor any duty or right which the well operator, storage

operator or land owner may have had prior to April 18, 1985, to

pay for or not to pay for the coal.

(f) Mining through plugged wells.--A coal operator who

intends to mine through a plugged oil or gas well must file a

plan to completely remove a pillar from around the well in

20180HB2154PN3477 - 42 -

accordance with subsection (a). This plan shall be subject to

the requirements of this section. No coal operator may mine

through a plugged oil or gas well of which the coal operator has

knowledge until written approval has been granted by the

department in accordance with this section.

(g) Establishment of conditions.--The Bureau of Deep Mine

Safety in the department shall have the authority to establish

the conditions under which the department may approve a coal

operator's plan to mine through a plugged oil or gas well.

Section 315. Bonding.

(a) General rule.--

(1) Upon filing an application for a well permit and

before continuing to operate an oil or gas well, the owner or

operator of an oil or gas well shall file with the department

a bond for the well and the 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 that the operator shall

faithfully perform all of the drilling, water supply

replacement, restoration and plugging requirements of this

act. No bond or bond substitute shall be required for any

well drilled prior to April 18, 1985, where such well would

have otherwise been subject to the bonding requirements of

section 215 or 603.1 of the former act of December 19, 1984

(P.L.1140, No.223), known as the Oil and Gas Act. The amount

of the bond required shall be in the amount of $2,500 per

well for at least two years following the effective date of

this act, after which time the bond amount may be adjusted by

the Environmental Quality Board every five years to reflect

the projected costs to the Commonwealth of performing well

20180HB2154PN3477 - 43 -

plugging.

(2) In lieu of individual bonds for each well, an owner

or operator may file a blanket bond, on a form prepared by

the department, covering all of its wells in this

Commonwealth as enumerated on the bond form. A blanket bond

shall be in the amount of $25,000 for at least five years

following the effective date of this act, after which time

the bond amount may be adjusted by the Environmental Quality

Board every two years to reflect the projected costs to the

Commonwealth of performing well plugging. An adjustment may

not exceed the prior amount by more than $10,000.

(3) Liability under the bond shall continue until the

well has been properly plugged in accordance with this act

and for a period of one year after filing of the certificate

of plugging with the department. Each bond shall be executed

by the operator and a corporate surety licensed to do

business in this Commonwealth and approved by the secretary.

The operator may elect to deposit cash, certificates of

deposit or automatically renewable irrevocable letters of

credit from financial institutions chartered or authorized to

do business in Pennsylvania and regulated and examined by a

Federal agency or the Commonwealth, which may be terminated

at the end of a term only upon the financial institution

giving 90 days' prior written notice to the permittee and the

department or negotiable bonds of the United States

Government or the Commonwealth, the Pennsylvania Turnpike

Commission, the State Public School Building Authority or any

municipality within the Commonwealth, or United States

Treasury Bonds issued at a discount without a regular

schedule of interest payments to maturity, otherwise known as

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zero coupon bonds, having a maturity date of not more than 10

years after the date of purchase and at the maturity date

having a value of not less than $25,000, with the department

in lieu of a corporate surety. The cash deposit, certificate

of deposit, amount of the irrevocable letter of credit or

market value of the securities shall be equal at least to the

sum of the bond. The secretary shall, upon receipt of

deposits of cash, letters of credit or negotiable bonds,

immediately place the cash, letters of credit or negotiable

bonds with the State Treasurer, whose duty it shall be to

receive and hold the cash, letters of credit or negotiable

bonds in the name of the Commonwealth, in trust, for the

purpose for which the deposit is made. The State Treasurer

shall at all times be responsible for the custody and

safekeeping of deposits. The operator making deposit shall be

entitled from time to time to demand and receive from the

State Treasurer, on the written order of the secretary, the

whole or any portion of collateral deposited upon depositing

with the State Treasurer, in lieu of the collateral

deposited, other collateral of the classes specified in this

act having a market value at least equal to the sum of the

bond and also to demand, receive and recover the interest and

income from the negotiable bonds as the bonds become due and

payable. Where negotiable bonds mature or are called, the

State Treasurer, at the request of the owner of the bonds,

shall convert the negotiable bonds into other negotiable

bonds of the classes specified in this act as may be

designated by the owner. Where notice of intent to terminate

a letter of credit is given, the department shall give the

operator 30 days' written notice to replace the letter of

20180HB2154PN3477 - 45 -

credit with other acceptable bond guarantees as provided in

this act, and if the owner or operator fails to replace the

letter of credit within the 30-day notification period, the

department shall draw upon and convert the letter of credit

into cash and hold it as a collateral bond guarantee.

(b) Release.--No bond shall be fully released until all

requirements of this act identified in subsection (a) or section

313 are fully met. Upon release of all of the bonds and

collateral as provided in this section, the State Treasurer

shall immediately return to the owner the amount of cash or

securities specified in the bond.

(1) If a well owner or operator fails or refuses to

comply with the applicable requirements of subsection (a),

the regulations promulgated under this act or the conditions

of the permit relating to this act, the department may

declare the bond forfeited and shall certify the same to the

Attorney General, who shall proceed to enforce and collect

the full amount of the bond and, where the owner or operator

has deposited cash or securities as collateral in lieu of a

corporate surety, the department shall declare the collateral

forfeited and shall direct the State Treasurer to pay the

full amount of the funds into the Well Plugging Restricted

Revenue Account or to proceed to sell the security to the

extent forfeited and pay the proceeds of the sale into the

Well Plugging Restricted Revenue Account.

(2) A corporate surety or financial institution that

fails to promptly pay in full a forfeited bond shall be

disqualified from writing further bonds under this act or

other environmental act administered by the department.

20180HB2154PN3477 - 46 -

(3) A person aggrieved by reason of forfeiting the bond

or converting collateral under this section shall have a

right to appeal to the Environmental Hearing Board in the

manner provided by law.

(4) Upon forfeiture of a blanket bond for a violation

occurring at one or more well sites, the person whose bond is

forfeited shall submit a replacement bond to cover all other

wells the person owns or operates within 10 days of the

forfeiture. Failure to submit the replacement bond

constitutes a violation of this section as to each of the

wells owned or operated by the person.

(d) Individuals.--

(1) An individual who cannot obtain a bond to drill new

wells due to an inability to demonstrate financial resources

may meet the collateral bond requirements of subsection (a)

by making phased deposits of collateral to fully

collateralize the bond. Individuals shall be limited to

drilling 10 new wells per calendar year. The individual

shall, for each well to be drilled, deposit $500 and shall,

thereafter, annually deposit 10% of the remaining bond amount

for a period of 10 years. Interest accumulated by the

collateral shall become a part of the bond until the time

when the collateral, plus accumulated interest, equals the

amount of the required bond. The collateral shall be

deposited, in trust, with the State Treasurer as provided in

subsection (a) or with a bank selected by the department

which shall act as trustee for the benefit of the

Commonwealth, to guarantee the individual's compliance with

the drilling, water supply replacement, restoration and

plugging requirements of this act. The individual shall be

20180HB2154PN3477 - 47 -

required to pay all costs of the trust.

(2) Individuals may continue to use phased collateral to

obtain permits so long as they have not missed payments for

wells drilled under this subsection and so long as they

remain in compliance with this act and regulations and

permits issued under this act. If an individual has missed

payments for wells under this subsection, the operator shall:

(i) immediately submit the appropriate bond amount

in full; or

(ii) cease all operations and plug the wells in

accordance with section 310.

(3) For the purposes of this subsection, the term

"individual" means an applicant who is a natural person doing

business under his own name.

(e) Preservation of remedies.--All remedies for violation of

this act, regulations adopted under this act and conditions of

permits are expressly preserved. Nothing in this section shall

be construed as an exclusive penalty or remedy for violations of

law. No action taken under this section shall waive or impair

any other remedy or penalty provided in law.

(f) Change of law.--Owners or operators who have failed to

meet the requirements of this section prior to August 1, 1992,

shall not be required to make payments under this section on a

retroactive basis as a condition of obtaining a permit under

this act nor shall the failure be deemed a violation of this

act.

CHAPTER 5

UNDERGROUND GAS STORAGE

Section 501. Underground gas storage.

Underground gas storage shall be conducted in accordance with

20180HB2154PN3477 - 48 -

58 Pa.C.S. Ch. 32 Subch. C (relating to underground gas

storage).

CHAPTER 7

ENFORCEMENT AND REMEDIES

Section 701. Conferences.

(a) General rule.--The department or a person having a

direct interest in a matter subject to this act may, at any

time, request that a conference be held for the purpose of

discussing and endeavoring to resolve by mutual agreement a

matter arising under this act. Unless otherwise provided,

conferences shall be held within 90 days after a request for a

conference is received by the department, and notice of the

conference shall be given by the department to all interested

parties. A representative of the department shall attend the

conference and the department may make recommendations. An

agreement reached at a conference shall be consistent with this

act and, if approved by the department, it shall be reduced to

writing and shall be effective, unless reviewed and rejected by

the department, within 10 days after the close of the

conference. The record of an agreement approved by the

department shall be kept on file by the department with copies

furnished to the parties. Scheduling of a conference shall not

affect the authority of the department to issue an appropriate

order to compel compliance with this act.

(b) Notification.--If a coal operator is to be given notice

by the department of a proceeding to be held under this section,

the department shall also send simultaneously a copy of the

notice to the collective bargaining representative of the

employees of the coal operator.

Section 702. Public nuisances.

20180HB2154PN3477 - 49 -

A violation of section 306, 307, 308, 309 or 310 or of a

rule, regulation, order, term or condition of a permit relating

to those sections constitutes a public nuisance.

Section 703. Enforcement orders.

(a) General rule.--Except as modified by subsections (b),

enforcement of this act. An order issued under this act shall

take effect upon notice, unless the order specifies otherwise.

The power of the department to issue an order under this act is

in addition to any other remedy which may be afforded to the

department under this act or other law.

(b) Suspension and revocation.--

(1) The department may suspend or revoke a well permit

or well registration for a well in continuing violation of

the following:

(i) This act.

(ii) The act of June 22, 1937 (P.L.1987, No.394),

known as The Clean Streams Law.

(iii) The act of July 7, 1980 (P.L.380, No.97),

known as the Solid Waste Management Act.

(iv) Any other statute administered by the

department.

(2) The right of the department to revoke a permit or

registration under this subsection shall not be effective

until a final administrative determination has been made of

the violation and no appeal is pending in which a stay has

been granted.

(3) A suspension order of the department shall

automatically terminate if the violation upon which it is

based is corrected by the operator in order to bring the well

20180HB2154PN3477 - 50 -

into compliance with this act.

of a well permit or registration, the department shall serve

written notice upon the well operator or its agent of the

intention of the department to suspend or revoke and shall state

with specificity the statutory provisions, appropriate rule or

regulation or other reason and the factual circumstances which

surround the violation upon which the suspension or revocation

is based. The well operator shall have 15 days to request a

conference with the department to give cause why the action

should not be taken. Upon receipt of the written notice, the

department shall hold a conference and shall, within 15 days

after the conference, make a decision on whether to suspend or

revoke the well permit or registration. The department shall

provide written notice of its decision to the well operator or

its agent, which shall become effective upon receipt of the

notice.

(d) Immediate orders.--An order of the department requiring

the immediate cessation of drilling operations shall only be

effective if authorized by the secretary or a designee.

(e) Grievances.--A person aggrieved by an order of the

department issued under this section shall have the right,

within 30 days of receipt of the notice, to appeal the action to

the Environmental Hearing Board.

Section 704. Restraining violations.

(a) General rule.--In addition to other remedies provided in

this act, the department may institute a suit in equity in the

name of the Commonwealth for an injunction to restrain a

violation of this act or the rules, regulations, standards or

orders adopted or issued under this act and to restrain the

20180HB2154PN3477 - 51 -

maintenance or threat of a public nuisance. Upon motion of the

Commonwealth, the court shall issue a prohibitory or mandatory

preliminary injunction if it finds that the defendant is

engaging in unlawful conduct, as defined by this act, or in

conduct causing immediate and irreparable harm to the public.

The Commonwealth shall not be required to furnish bond or other

security in connection with the proceedings. In addition to an

injunction, the court, in equity, may level civil penalties as

specified in section 706.

(b) District attorney.--In addition to other remedies in

this act, upon relation of the district attorney of a county

affected or upon relation of the solicitor of a municipality

affected, an action in equity may be brought in a court of

competent jurisdiction for an injunction to restrain a violation

of this act or the rules and regulations promulgated under this

act or to restrain a public nuisance or detriment to health.

act shall be deemed concurrent. Existence or exercise of a

remedy shall not prevent the department from exercising another

remedy at law or in equity.

(d) Jurisdiction.--Actions instituted under this section may

be filed in the appropriate court of common pleas or in

Commonwealth Court, and those courts are hereby granted

jurisdiction to hear the actions.

Section 705. Criminal penalties.

(a) General violation.--A person who violates a provision of

this act commits a summary offense and, upon conviction, shall

be sentenced to pay a fine of not more than $300 or to

imprisonment of not more than 90 days, or both. Each day during

which the violation continues is a separate and distinct

20180HB2154PN3477 - 52 -

offense.

(b) Willful violation.--A person who willfully violates a

provision of this act or an order of the department issued under

this act commits a misdemeanor and, upon conviction, shall be

sentenced to pay a fine of not more than $5,000 or to

imprisonment of not more than one year, or both. Each day during

which the violation continues is a separate and distinct

offense.

against a person or municipality for a violation of this act.

Section 706. Civil penalties.

In addition to other remedies available at law or in equity

for a violation of this act, a rule or regulation of the

department or an order of the department, the Environmental

Hearing Board, after a hearing, may assess a civil penalty

regardless of whether or not the violation was willful, but

penalties need not be assessed for accidental violations or

those that resulted in no damage or risk of adverse effect on

natural resources or the property of others. The civil penalty

shall not exceed $25,000, plus $1,000 for each day during which

the violation continues. In determining the amount, the

Environmental Hearing Board shall consider the willfulness of

the violation, damage or injury to the natural resources of this

Commonwealth or their uses, endangerment of the safety of

others, costs of remedying the harm, savings resulting to the

violator as a result of the violation and other relevant

factors. The Environmental Hearing Board shall mitigate the

penalty amount for any person who voluntarily plugged an orphan

well in accordance with this act. The penalty shall be payable

to the Orphan Well Plugging Fund and shall be collectible in the

20180HB2154PN3477 - 53 -

manner provided at law for the collection of debts. If a person

liable to pay a penalty neglects or refuses to pay the same

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

Environmental Hearing Board may transmit to the prothonotaries

of the respective counties certified copies of the liens, and 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. Notwithstanding any other

provision of law to the contrary, actions for civil penalties

under this act may be commenced at any time within a period of

five years from the date the offense is discovered.

Section 707. Existing rights and remedies preserved and

cumulative remedies authorized.

Nothing in this act shall prevent the Commonwealth or a

district attorney from proceeding in a court of law or in equity

to abate pollution forbidden under this act or abate a nuisance

under existing law. It is declared to be the purpose of this act

to provide additional and cumulative remedies to control

activities related to drilling for or production of oil and gas

within this Commonwealth, and nothing in this act abridges or

alters rights of action or remedies existing in equity or under

the common law or statutory law, criminal or civil. Neither this

act, the granting of a permit under this act nor an act done by

virtue of this act stops the Commonwealth in exercising rights

under the common law or decisional law or in equity, from

20180HB2154PN3477 - 54 -

suppressing a nuisance, abating pollution or enforcing common

law or statutory rights. No court of this Commonwealth with

jurisdiction to abate public or private nuisances shall be

deprived of jurisdiction in an action to abate a private or

public nuisance instituted by a person on grounds that the

nuisance constitutes air or water pollution.

Section 708. Production of materials, witnesses, depositions

and rights of entry.

(a) General rule.--The department may make inspections,

conduct tests or sampling or examine books, papers and records

pertinent to a matter under investigation under this act it

deems necessary to determine compliance with this act, and duly

authorized agents and employees of the department are authorized

at all reasonable times to enter and examine a property,

facility, operation or activity.

(b) Entry and access.--An owner, operator or other person in

charge of a property, facility, operation or activity, upon

presentation of proper identification and purpose for inspection

by the agents or employees of the department, shall give the

agents and employees free and unrestricted entry and access and,

upon refusal to grant entry or access, the agent or employee may

obtain a search warrant or other order authorizing entry and

inspection. It is sufficient probable cause to issue a search

warrant authorizing an examination and inspection if there is

probable cause to believe that the object of the investigation

is subject to regulation under this act and that access,

examination or inspection is necessary to enforce the provisions

of this act.

in any part of this Commonwealth to subpoena witnesses,

20180HB2154PN3477 - 55 -

administer oaths, examine witnesses, take testimony or compel

the production of books, records, maps, plats, papers, documents

and other writings as it may deem necessary or proper and

pertinent to proceedings or investigation held by the

department. In case of refusal to obey a subpoena served upon a

person, the court shall, on application of the department, have

power to enforce the subpoena in contempt proceedings. The fees

for serving a subpoena shall be the same as those paid to

sheriffs for similar services.

(d) Witnesses.--The department or a party to proceedings

before the department may depose witnesses residing within or

outside this Commonwealth in the manner prescribed by law for

taking depositions in civil actions.

(e) Witness fees.--Witnesses summoned before the department

shall be paid the same fees as those paid to witnesses in the

courts of record of general jurisdiction. Witnesses whose

depositions are taken under this act and the officers taking the

depositions shall be entitled to the same fees as those paid for

similar services in the courts.

(f) Ownership information.--A purchaser of oil or gas shall,

upon request, provide to the department information necessary

for the department to determine ownership of facilities from

which the oil or gas was obtained. The purchaser shall provide

notice to the owner of the facilities identified to the

department. The information shall be kept confidential for a

period of five years. The department shall have the right to

utilize the information in enforcement proceedings. The

department may only request information under this section when

a well does not meet the requirements of section 301(h).

Section 709. Unlawful conduct.

20180HB2154PN3477 - 56 -

It shall be unlawful for a person to:

(1) Drill, alter, operate or utilize an oil or gas well

without a permit or registration from the department as

required by this act or in violation of the rules or

regulations adopted under this act, orders of the department

or in violation of a permit issued by the department.

(2) Conduct activities related to drilling for or

production of oil and gas:

(i) contrary to this act, rules or regulations

adopted under this act, an order of the department or a

term or condition of a permit; or

(ii) in a manner that creates a public nuisance or

adversely affects public health, safety, welfare or the

environment.

(3) Refuse, obstruct, delay or threaten an agent or

employee of the department in the course of lawful

performance of any duty under this act, including, but not

limited to, entry and inspection.

(4) Attempt to obtain a permit or identify a well as an

orphan well by misrepresentation or failure to disclose all

relevant facts.

(5) Cause the abandonment of a well by removing casing

or equipment necessary for production without plugging the

well in a manner prescribed under section 310. The owner or

operator of a well may temporarily remove casing or equipment

necessary for production if it is part of the normal course

of production activities.

Section 710. Collection of fines and penalties.

Fines and penalties shall be collectible in the manner

provided by law for the collection of debts. If a person liable

20180HB2154PN3477 - 57 -

to pay a penalty neglects or refuses to pay after demand, the

amount, together with interest and costs that may accrue, shall

be a judgment in favor of the Commonwealth upon the person's

property, but only after the judgment has been entered and

docketed of record by the prothonotary of the county where the

property is situated. The department may, at any time, transmit

to the prothonotaries of the respective counties certified

copies of all judgments, and it shall be the duty of each

prothonotary to enter and docket them in the prothonotary's

office and index them as judgments are indexed, without

requiring the payment of costs as a condition precedent to

entry.

Section 711. Third party liability.

If a person other than the well operator renders a service or

product to a well or well site, that person is liable with the

well owner or operator for violations of this act arising out of

and caused by the person's actions at the well or well site, in

accordance with State law.

Section 712. Inspection reports.

(a) Posting required.--The department shall post inspection

reports on its publicly accessible Internet website. The

inspection reports shall include:

(1) The nature and description of violations.

(2) The operator's written response to the violation, if

available.

(3) The status of the violation.

(4) The remedial steps taken by the operator or the

department to address the violation.

(b) Removal.--The department shall remove a notice of

violation issued in error from the public record as soon as

20180HB2154PN3477 - 58 -

practical after the department learns of the error.

adequate training to its inspectors.

(d) Minor violations.--The department will adopt a practice

and procedure to alleviate the unwarranted use of notices of

violation for minor violations that pose no material harm to the

public health or environment, including the development of

separate forms for inspections where warnings rather than

notices of violation will be issued and where compliance can be

accomplished within 48 hours. Warnings under this subsection,

and the alleged violations upon which they are based, may not be

the basis for a civil penalty when compliance is achieved within

48 hours.

CHAPTER 9

RELATED FUNDS, PARTIES AND ACTIVITIES

Section 901. Well plugging funds.

(a) Appropriation.--Fines and civil penalties collected

under this act shall be deposited in the Orphan Well Plugging

Fund. Other than permit fee surcharges under this section,

permit fees collected under this act are hereby appropriated to

the department to carry out the provisions of this act.

(b) Abandoned Well Plugging Fund.--To aid in indemnifying

the Commonwealth for the cost of plugging abandoned wells, a $50

surcharge is added to the permit fee established by the

department under section 301 for new wells. Money collected as a

result of a surcharge shall be paid into the Abandoned Well

Plugging Fund and shall be expended by the department to plug

abandoned wells which threaten the health and safety of persons

or property or pollute the waters of this Commonwealth.

20180HB2154PN3477 - 59 -

(1) A $100 surcharge for wells to be drilled for oil

production and a $200 surcharge for wells to be drilled for

gas production are added to the permit fee established by the

department under section 301 for new wells. Surcharges shall

be deposited into the Orphan Well Plugging Fund and shall be

expended by the department to plug orphan wells. If an

operator rehabilitates a well abandoned by another operator

or an orphan well, the permit fee and the surcharge for the

well shall be waived.

(2) Expenditures by the department for plugging orphan

wells shall be limited to fees collected under this act and

58 Pa.C.S. Ch. 32 (relating to development).

Section 902. Local ordinances.

Except with respect to ordinances adopted under the act of

July 31, 1968 (P.L.805, No.247), known as the Pennsylvania

Municipalities Planning Code, and the act of October 4, 1978

(P.L.851, No.166), known as the Flood Plain Management Act, all

local ordinances and enactments purporting to regulate oil and

gas well operations regulated by this act are superseded. No

ordinances or enactments adopted under the Pennsylvania

Municipalities Planning Code or the Flood Plain Management Act

shall impose conditions, requirements or limitations on the same

features of oil and gas well operations regulated by this act or

that accomplish the same purposes as set forth in this act. The

Commonwealth, by this enactment, preempts and supersedes the

regulation of oil and gas wells.

Section 903. Effect on department authority.

This act does not affect, limit or impair the right or

authority of the department under the act of June 22, 1937

(P.L.1987, No.394), known as The Clean Streams Law, the act of

20180HB2154PN3477 - 60 -

January 8, 1960 (1959 P.L.2119, No.787), known as the Air

Pollution Control Act, the act of November 26, 1978 (P.L.1375,

No.325), known as the Dam Safety and Encroachments Act, and the

act of July 7, 1980 (P.L.380, No.97), known as the Solid Waste

Management Act.

Section 904. Relationship to solid waste, surface mining,

underground injection wells, wastewater treatment and

recycling by centralized waste treatment facilities

and storage tanks.

(a) General rule.--The obligation to obtain a permit and

post a bond under Articles III and V of the act of July 7, 1980

(P.L.380, No.97), known as the Solid Waste Management Act, and

to provide public notice under section 1905-A(b)(1)(v) of the

act of April 9, 1929 (P.L.177, No.175), known as The

Administrative Code of 1929, for a pit, impoundment, method or

facility employed for the disposal, processing or storage of

residual wastes generated by the drilling of an oil or gas well

or from the production of a well which is located on the well

site shall be satisfied if the owner or operator of the well

meets the following conditions:

(1) the well is permitted under the requirements of

section 301 or was registered under the former act of

December 19, 1984 (P.L.1140, No.223), known as the Oil and

Gas Act;

(2) the owner or operator satisfies the financial

security requirements of section 315 by obtaining a surety or

collateral bond for the well and well site; and

(3) the owner or operator maintains compliance with this

act and applicable regulations of the Environmental Quality

Board.

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(b) Noncoal surface mining.--Obligations under the act of

December 19, 1984 (P.L.1093, No.219), known as the Noncoal

Surface Mining Conservation and Reclamation Act, or rule or

regulation promulgated under the Noncoal Surface Mining

Conservation and Reclamation Act, for a borrow area where

minerals are extracted solely for the purpose of oil and gas

well development, including access road construction, shall be

satisfied if the owner or operator of the well meets the

conditions imposed under subsection (a)(1) and (2) and the owner

or operator maintains compliance with this act and applicable

regulations of the Environmental Quality Board.

provided in this section, nothing in this section shall diminish

duties or obligations that an owner or operator may have under

the Solid Waste Management Act. This section shall not apply to

waste classified as hazardous waste under the Solid Waste

Management Act or the Resource Conservation and Recovery Act of

1976 (Public Law 94-580, 42 U.S.C. § 6901 et seq.).

(d) Road spreading of brine for dust control, road

stabilization, anti-icing and de-icing.--Consistent with the

provisions of the Solid Waste Management Act which require the

department to encourage the beneficial use or reuse of residual

waste derived from commercial and industrial purposes where the

use does not harm or threaten public health, safety, welfare or

the environment, the department shall approve the use of brine

for dust control, road stabilization, anti-icing and de-icing

upon application using forms developed by the department and in

accordance with conditions reasonably necessary for the

protection of the environment and prevention of pollution. With

respect to any aspect of water quality, applicants may rely on

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regional characterization of the brine. The department may not

impose conditions requiring brine to exceed the physical

character or chemical composition of a commercial product for

which the brine is an effective substitute. Persons engaged in

the beneficial uses of brine shall maintain records and make

reports as the department requires.

(e) Secondary products from produced water.--Notwithstanding

any provision of law to the contrary and to promote beneficial

uses and legitimate recycling, material derived from produced

water from conventional formations, including, but not limited

to, salt, is not waste if:

(1) the material is of a physical character and chemical

composition that is consistently equivalent to an

intentionally manufactured product or raw material; and

(2) the use of the material presents no greater threat

of harm to human health and the environment than the use of

the product or raw material.

(f) Regional characterization of produced water.--Generators

of produced water from conventional formations may satisfy an

obligation to provide a chemical analysis of the waste through

certification that the physical properties and chemical

composition of the produced water are fairly represented by a

regional analysis of produced water submitted to the department

and the solid waste management or treatment facility that

receives the waste.

(g) Class II injection wells.--Notwithstanding any provision

of law to the contrary, Class II well permits issued by the

Environmental Protection Agency pursuant to the Safe Drinking

Water Act (Public Law 93-523, 21 U.S.C. § 349 and 42 U.S.C. §§

201 and 300f et seq.) shall be deemed to satisfy the

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department's obligation to consider potential pollution

resulting from underground injection or disposal to the wells.

Unless or until the Commonwealth takes primacy of the Class II

Underground Injection Control (UIC) program, the department's

review and approval, if any, of injection wells shall be limited

to a review of surface activities related to construction,

modification, operation or closure of the well.

(h) Wastewater treatment and recycling requirements.--A

centralized waste treatment facility that was authorized by the

department prior to August 20, 2010, to treat, for disposal,

recycling or recovery of material, wastewater generated from

exploration, production or gathering activities associated with

conventional oil and gas well operations or any new centralized

waste treatment facility that treats, for disposal, recycling or

recovery of material, wastewater generated from exploration,

production or gathering activities associated with conventional

oil and gas well operations shall not be subject to the

requirements of 25 Pa. Code § 95.10 (relating to treatment

requirements for new and expanding mass loadings of Total

Dissolved Solids (TDS)). As used in this subsection, the term

"centralized waste treatment facility" shall have the meaning

given to the term "centralized waste treatment (CWT) facility"

in 40 CFR 437.2(c) (relating to general definitions).

(i) Storage tanks.--Permanent aboveground or underground

tanks that are used to store brines, crude oil, drilling or frac

fluids and similar substances or materials and are directly

related to the exploration, development or production of crude

oil or natural gas regulated under this act, as well as liquid

traps and associated gathering lines directly related to oil or

gas production and gathering operations, are exempt from the

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obligations under the act of July 6, 1989 (P.L.169, No.32),

known as the Storage Tank and Spill Prevention Act, and any rule

or regulation promulgated under the Storage Tank and Spill

Prevention Act.

CHAPTER 11

MISCELLANEOUS PROVISIONS

Section 1101. Regulatory authority.

(a) General rule.--The Environmental Quality Board shall

promulgate regulations to implement the provisions of this act.

The board shall consult with the council in the formulation and

development of all regulations and policies effecting

conventional oil and gas operations to ensure consistency with

the duties of the council and purposes of the act of June 23,

2016 (P.L.375, No.52), known as the Pennsylvania Grade Crude

Development Act. Policies adopted by the department after April

16, 2012, shall expire within three years of the effective date

of this act with respect to conventional operations unless

revised and reissued in accordance with this section.

(b) Limited applicability.--Immediately upon the effective

date of this subsection, the provisions of 58 Pa.C.S. § 3226

(relating to Oil and Gas Technical Advisory Board) are limited

in applicability to unconventional oil and gas operations. The

department may consult with the Oil and Gas Technical Advisory

Board in the formulation, drafting or presentation stages of

regulations applicable to conventional oil and gas operations.

Section 1102. Construction.

(A) UNCONVENTIONAL WELLS.--Nothing in this act shall be

construed to apply to unconventional wells.

(B) COAL AND GAS RESOURCE COORDINATION ACT.--

(1) THE REQUIREMENTS UNDER SECTION 5 OF THE ACT OF

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<--

DECEMBER 18, 1984 (P.L.1069, NO.214), KNOWN AS THE COAL AND

GAS RESOURCE COORDINATION ACT, FOR THE ISSUANCE OF A PERMIT

UNDER THE FORMER ACT OF DECEMBER 19, 1984 (P.L.1140, NO.223),

KNOWN AS THE OIL AND GAS ACT, SHALL APPLY TO THIS ACT.

(2) NOTHING IN THIS ACT SHALL BE CONSTRUED TO CHANGE,

REPEAL OR OTHERWISE AFFECT THE PROVISIONS OF THE COAL AND GAS

RESOURCE COORDINATION ACT.

Section 1103. Land recycling and remediation.

(a) General rule.--The cleanup and remediation of spills and

releases from oil and natural gas operations shall not be

required to comply with the notice and review provisions of the

act of May 19, 1995 (P.L.4, No.2), known as the Land Recycling

and Environmental Remediation Standards Act. The provisions of

this section shall not be construed to affect, limit or impair

other obligations or rights of operators or other responsible

parties established under the Land Recycling and Environmental

Remediation Standards Act whenever site remediation is

voluntarily conducted or required.

(b) Reporting.--The following apply to spills onto the

ground at a well site:

(1) The following spills must be reported within two

hours of discovery:

(i) more than 5 barrels of oil within a 24-hour

period; or

(ii) more than 15 barrels of brine within a 24-hour

period if the total dissolved solids concentration of the

brine is equal to or greater than 10,000 mg/kg.

(2) Spills of less than 5 barrels of oil or less than 15

barrels of brine need not be reported unless there is an

immediate threat to public health, safety or the environment.

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operations polluting or threatening to pollute waters of this

Commonwealth must be reported immediately upon discovery.

(d) Standard for crude oil in soil.--Notwithstanding the

provisions of 25 Pa. Code Ch. 250 (relating to administration of

Land Recycling Program), the attainment standard for crude oil

in soil shall be 10,000 mg/kg of total petroleum hydrocarbons.

For sites remediated under the attainment standard under this

subsection, the person conducting the remediation shall submit a

report to the department documenting attainment of the standard.

The remediation standard is not applicable to spills or releases

involving materials other than crude oil.

(e) Conventional oil and gas operations.--Regardless of

whether a person conducts remediation in accordance with the act

of May 19, 1995 (P.L.4, No.2), known as the Land Recycling and

Environmental Remediation Standards Act, remediation of a spill

related to conventional oil and gas operations may be conducted

according to established field practices, including

bioremediation, to attain the chosen cleanup standards

consistent with the protection of public health and the

environment.

Section 1104. Repeal.

Repeals are as follows:

(1) The provisions of 58 Pa.C.S. (relating to oil and

gas) are repealed insofar as they relate to conventional

wells.

(2) All acts and parts of acts are repealed insofar as

they are inconsistent with this act.

Section 1105. Continuation.

Except as otherwise provided in this act, all conventional

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oil and gas well activities initiated under 58 Pa.C.S. (relating

to oil and gas) or under the former act of December 19, 1984

(P.L.1140, No.223), known as the Oil and Gas Act, shall continue

and remain in full force and effect and may be completed under

this act. Orders, rules and decisions which were made under 58

Pa.C.S. or the former Oil and Gas Act as to conventional wells

and which are in effect on the effective date of this section

shall remain in full force and effect until revoked, vacated or

modified under this act. Contracts, obligations and collective

bargaining agreements entered into under 58 Pa.C.S. are not

affected nor impaired by this act. Nothing in this act shall

alter the common law establishing the subsurface as the dominant

estate in Pennsylvania, or alter or abridge the terms of any

contract, mortgage or other agreement entered into prior to the

effective date of this act.

Section 1106. Effective date.

This act shall take effect immediately.

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