Regular Session 2011-2012 House Bill 1950 P.N. 2689 Amendment 2011 6347

H1950B2689A06347 JLW:CDM 11/14/11 #90 A06347

AMENDMENTS TO HOUSE BILL NO. 1950

Printer's No. 2689

Amend Bill, page 1, line 12, by inserting after "Act"

with modifications and additions

Amend Bill, page 1, lines 17 through 23; pages 2 through 127,

lines 1 through 30, by striking out all of said lines on said

pages and inserting

Section 1. Title 27 of the Pennsylvania Consolidated

Statutes is amended by adding chapters to read:

CHAPTER 33

OIL AND GAS

Subchapter

A. (Reserved)

B. Oil and Gas Lease Fund

SUBCHAPTER A

(RESERVED)

SUBCHAPTER B

OIL AND GAS LEASE FUND

Sec.

3301. Definitions.

3302. Oil and Gas Lease Fund.

3303. Powers and duties of secretary.

3304. Appropriation of moneys.

3305. Interfund transfers.

§ 3301. Definitions.

The following words and phrases when used in this chapter

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

context clearly indicates otherwise:

"Department." The Department of Conservation and Natural

Resources of the Commonwealth.

"Fund." The Oil and Gas Lease Fund established by this

subchapter.

"Secretary." The Secretary of Conservation and Natural

Resources of the Commonwealth.

§ 3302. Oil and Gas Lease Fund.

(a) Establishment.--The Oil and Gas Lease Fund is

established in the State Treasury.

(b) Deposits.--All rents and royalties from oil and gas

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leases of any land owned by the Commonwealth, except rents and

royalties received from game and fish lands, shall be placed in

the fund to be used exclusively:

(1) for conservation, recreation, dams or flood control;

(2) to match any Federal grants which may be made for

any of the purposes enumerated in this subchapter; and

(3) for interfund transfers as provided in section 3305

(relating to interfund transfers).

§ 3303. Powers and duties of secretary.

The secretary shall have the following powers and duties:

(1) To determine, in the secretary's discretion, the

need for and the location of any project authorized by this

chapter.

(2) To acquire in the name of the Commonwealth by

purchase, condemnation or otherwise such lands as may be

needed.

§ 3304. Appropriation of moneys.

All the moneys from time to time paid into the fund are

specifically appropriated on a continuing basis to the

department to carry out the purposes of this subchapter.

§ 3305. Interfund transfers.

Transfers shall be made between funds in the State Treasury

as follows:

(1) On July 1, 2013, and each July 1 thereafter, an

amount equal to 25% of the total moneys received from the

prior fiscal year shall be transferred from the fund to the

Environmental Stewardship Fund for the purpose of plugging

abandoned oil and gas wells and other uses authorized by law

for the Environmental Stewardship Fund.

(2) (i) Beginning July 1, 2014, a total of $40,000,000

shall be transferred from the fund to the Hazardous Sites

Cleanup Fund for the purpose of remedial response or

remedy at oil and gas well sites and other uses

authorized by law for the Hazardous Sites Cleanup Fund.

(ii) On July 1, 2015, and each July 1 thereafter,

the following shall apply:

(A) the sum of the amount transferred under

subparagraph (i) during the prior fiscal year; and

(B) an amount equal to the percentage change in

the Consumer Price Index for All Urban Consumers from

the prior fiscal year, multiplied by the amount in

clause (A),

shall be transferred from the fund to the Hazardous Sites

Cleanup Fund for the purpose specified in subparagraph

(i).

(3) On July 1, 2013, and each July 1 thereafter, an

amount equal to 5% of the total moneys received from the

prior fiscal year, but not to exceed $5,000,000, shall be

transferred from the fund to the several counties, school

districts and townships entitled to receive payment from the

Commonwealth in lieu of taxes under the act of May 17, 1929

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(P.L.1798, No.591), referred to as the Forest Reserves

Municipal Financial Relief Law. The moneys transferred under

this paragraph shall be allocated to each county, school

district and township based on the number of acres of land in

the county, school district or township to which the payment

under that act applies in proportion to the aggregate number

of acres of all such lands of the counties, school districts

and townships in this Commonwealth.

(4) On July 1, 2013, and each July 1 thereafter, a total

of $15,000,000 shall be transferred from the fund to the

Conservation District Fund. These funds shall be distributed

in a manner consistent with the act of May 15, 1945 (P.L.547,

No.217), known as the Conservation District Law, and the

provisions of the State Conservation Commission's

Conservation District Fund Allocation Program—Statement of

Policy under 25 Pa. Code Ch. 83 Subch. B (relating to

Conservation District Fund Allocation Program—Statement of

Policy).

CHAPTER 35

WELLS

Subchapter

A. Unconventional Gas Wells

B. (Reserved)

SUBCHAPTER A

UNCONVENTIONAL GAS WELLS

Sec.

3501. Short title.

3502. Definitions.

3503. Unconventional gas well impact fee.

3504. (Reserved).

3505. (Reserved).

3506. Administration.

3506.1. Well information.

3506.2. Payment confirmation.

3506.3. County authority.

3506.4. Enforcement.

3506.5. Examinations.

3507. Deposit of fees.

3508. Allocation and distribution of fees.

3509. Calculation of payments.

3510. Recordkeeping and State reporting.

3511. Expiration.

§ 3501. Short title.

This subchapter shall be known and may be cited as the

Unconventional Gas Well Impact Act.

§ 3502. Definitions.

The following words and phrases when used in this subchapter

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

context clearly indicates otherwise:

"Association." A partnership, limited partnership or any

other form of unincorporated enterprise owned or conducted by

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two or more persons.

"Coal bed methane." Gas that can be produced from coal beds,

coal seams, mined-out areas or gob wells.

"Corporation." A corporation, joint stock association,

limited liability company, business trust or any other

incorporated enterprise organized under the laws of the United

States, this Commonwealth or any other state, territory or

foreign country or dependency.

"Department." The Department of Environmental Protection of

the Commonwealth.

"Highway mileage." The number of miles of public roads and

streets most recently certified by the Department of

Transportation as eligible for distribution of liquid fuels

funds under the act of June 1, 1956 (1955 P.L.1944, No.655),

referred to as the Liquid Fuels Tax Municipal Allocation Law.

"Municipality." A city, borough, incorporated town or

township.

"Natural gas." A fossil fuel consisting of a mixture of

hydrocarbon gases, primarily methane, possibly including ethane,

propane, butane, pentane, carbon dioxide, oxygen, nitrogen and

hydrogen sulfide and other gas species. The term includes gas

from oil fields known as associated gas or casing head gas,

natural gas fields known as nonassociated gas, coal beds, shale

beds and other formations. The term does not include coal bed

methane.

"Nonproducing well." A natural gas well that produces an

average of less than 90,000 cubic feet of natural gas per day

during a calendar year.

"Operator." A person or its subsidiary, affiliate or holding

company that holds a permit or other authorization to engage in

the business of severing natural gas for sale, profit or

commercial use from an unconventional well in this Commonwealth.

The term does not include a person who severs natural gas from a

storage field.

"Person." A natural person or a corporation, fiduciary,

association or other entity, including the Commonwealth and any

of its political subdivisions, instrumentalities and

authorities. When the term is used in a provision prescribing

and imposing a penalty or imposing a fine or both, the term

shall include a member of an association and an officer of a

corporation.

"Rate." The rate under section 3503 (relating to

unconventional gas well impact fee).

"Reporting period." The fiscal year in which a well impact

fee is assessed.

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

drilled for the purpose of or to be used for producing oil or

gas from a geologic shale formation existing below the base of

the Elk Sandstone or its geologic equivalent stratigraphic

interval where oil or gas generally cannot be produced at

economic flow rates or in economic volumes except by wells

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stimulated by hydraulic fracture treatments, a horizontal well

bore or by using multilateral well bores or other techniques to

expose more of the formation of the well bore.

"Unconventional gas well impact fee." A fee that is adopted

under section 3503 (relating to unconventional gas well impact

fee) on each unconventional well producing natural gas within

this Commonwealth.

§ 3503. Unconventional gas well impact fee.

(a) Imposition.--By enactment of an ordinance by the

governing body of a county, except as set forth in subsection

(b), a county may impose an unconventional gas well impact fee

on each unconventional gas well that is located on a well pad

and produces natural gas within the county.

(b) Exemptions.--The unconventional gas well impact fee

shall not be imposed on:

(1) nonproducing wells; or

(2) unconventional gas wells in which all of the natural

gas is used directly by a consumer at the site.

an unconventional gas well producing natural gas which is in

existence on the effective date of the ordinance under

subsection (a) shall be as follows:

(1) For the first year of production following the

effective date of the ordinance, not more than $40,000.

(2) For the second year of production following the

effective date of the ordinance, not more than $30,000.

(3) For the third year of production following the

effective date of the ordinance, not more than $20,000.

(4) For the fourth year of production through the tenth

year of production following the effective date of the

ordinance, not more than $10,000.

(d) Fee for new unconventional gas wells.--The fee for an

unconventional gas well producing natural gas drilled after the

effective date of the ordinance under subsection (a) shall be as

follows:

(1) For the first year of production, not more than

$40,000.

(2) For the second year of production, not more than

$30,000.

(3) For the third year of production, not more than

$20,000.

(4) For the fourth year of production through the tenth

year of production, not more than $10,000.

(e) Vertical unconventional gas well fee.--

(1) The fee for an unconventional vertical gas well

shall be not more than 25% of the fee established in

subsections (c) and (d).

(2) For purposes of this subsection, an unconventional

vertical gas well shall be defined as an unconventional gas

well that:

(i) Produces oil or gas from a geologic shale

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formation existing below the base of the Elk Sandstone or

its geologic equivalent stratigraphic interval.

(ii) Utilizes hydraulic fracture treatment through a

single vertical well bore.

(f) Prohibition.--

(1) Under no circumstances may an operator make an

unconventional gas well impact fee, or any other levy related

to the removal or extraction of natural gas, an obligation,

indebtedness or liability of a landowner, leaseholder or

other person in possession of real property upon which such

removal or extraction occurs.

(2) Any provision of an agreement between an operator

and a landowner, leaseholder or other person in possession of

real property upon which removal or extraction of natural gas

occurs that violates paragraph (1) shall be null and void.

(3) This section shall be applicable to any agreement

entered into on or before the effective date of this section.

(g) Retroactivity prohibited.--No fee shall be imposed to

cover a period of natural gas production which occurred prior to

the effective date of the ordinance.

§ 3504. (Reserved).

§ 3505. (Reserved).

§ 3506. Administration.

(a) Report.--By April 1 of the year after enactment of an

ordinance imposing a fee under this chapter and each April 1

thereafter, each operator shall submit a report and payment of

the fee with the county on a form prescribed by the department

for the previous calendar year. The report shall include the

following:

(1) The number of unconventional gas wells of an

operator in each municipality within the county.

(2) The total number of cubic feet of natural gas

severed by the operator for each unconventional gas well

identified under paragraph (1) during the previous calendar

year.

(3) The date that each unconventional gas well

identified under paragraph (1) began or ceased the production

of natural gas.

(b) Fee due date.--The fee imposed under this chapter shall

be due by April 1 of the year after enactment of an ordinance

imposing the fee and each April 1 thereafter. The fee shall

become delinquent if not remitted to the county on the reporting

date.

§ 3506.1. Well information.

(a) List.--Upon request, the department shall provide a

county with a list of all unconventional gas wells that have

received a well permit from the department issued under this

chapter. The list shall be updated on a monthly basis. In lieu

of providing the list to each county, the department may

maintain a list on its publicly accessible Internet website if

the list is updated on a monthly basis.

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(b) Updates.--An operator shall notify the county within 30

days from the date the unconventional gas well began or ceased

the production of natural gas.

§ 3506.2. Payment confirmation.

Prior to issuing a permit to drill an unconventional gas well

in this Commonwealth, the department shall require the permit

applicant to certify in its well permit application that the

operator has paid all fees that may be owed under this chapter.

The department may deny a well permit application if it finds

that the operator falsified this certification.

§ 3506.3. County authority.

(a) Powers.--A county may make all inquiries and

determinations necessary to calculate and collect a fee imposed

under this chapter, including, if applicable, interest and

penalties.

(b) Notice.--If a county determines that a fee imposed under

this chapter has not been paid in full, it may issue a notice of

the amount due and demand for payment and shall set forth the

basis for the determination.

be sent to the operator at its registered address via certified

mail.

(d) Time period.--A county may challenge the amount of a fee

paid under this chapter within three years after the date the

report under this chapter is filed.

(e) Intent.--If no report is filed or an operator files a

false or fraudulent return with the intent to evade a fee, an

assessment of the amount owed may be made at any time.

§ 3506.4. Enforcement.

(a) Assessment.--A county may assess interest on any

delinquent fee imposed under this chapter at the rate prescribed

under section 806 of the act of April 9, 1929 (P.L.343, No.176),

known as The Fiscal Code.

(b) Penalty.--In addition to the interest under subsection

(a), if an operator fails to make timely payment of the fee, a

penalty shall be added to the amount of the fee due. The amount

of the penalty shall be 5% for each month, or fraction of a

month, during which the failure continues, not to exceed 25% in

the aggregate.

has not made a timely payment of the fee, the county shall send

a written notice of the amount of the deficiency to the operator

within 30 days from the date of determining the deficiency. If

the operator has not provided a complete and accurate statement

of the volume of natural gas extracted for the payment period,

the county may estimate the volume in its deficiency notice.

(d) Remedies.--The remedies provided under this chapter

shall be in addition to any other remedies provided at law or in

equity.

(e) Lien.--Fines, fees, interest and penalties shall be

collectible in the manner provided by law for the collection of

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debts. If the operator liable to pay any amount neglects or

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

with costs that may accrue, shall be a judgment in favor of the

county upon the property of the operator, if the judgment has

been entered and docketed of record by the prothonotary of the

county where the property is situated.

§ 3506.5. Examinations.

(a) Access.--A county which has imposed a fee under this

chapter, or its authorized agents or representatives, shall:

(1) Have access to the books, papers and records of any

operator in order to verify the accuracy and completeness of

a report filed or fee paid under this chapter.

(2) Require and compel the preservation and production

of all books, papers and records for any period deemed proper

not to exceed three years from the end of the calendar year

to which the records relate.

(3) Examine any employee of an operator concerning the

severing of natural gas subject to a fee or any matter

relating to the enforcement of this chapter.

(b) Unauthorized disclosure.--

(1) Any information obtained by a county as a result of

any report, examination, investigation or hearing under this

chapter shall be confidential and shall be exempt from

disclosure under the provisions of the act of February 14,

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

not be disclosed except in accordance with judicial order or

as otherwise provided by law.

(2) An individual unlawfully divulging the information

described under this subsection commits a misdemeanor and

shall, upon conviction, be sentenced to pay a fine of not

more than $1,000 and costs of prosecution or to imprisonment

for not more than one year, or both.

§ 3507. Deposit of fees.

(a) Establishment.--Each county imposing a fee under this

chapter shall establish an interest-bearing account designed

solely for fees.

(b) Deposit.--All fees collected by a county imposing a fee

under this chapter shall be deposited into the account described

under subsection (a).

§ 3508. Allocation and distribution of fees.

(a) Allocation of fees.--The fees deposited into the account

established under section 3507 (relating to deposit of fees)

shall be allocated as follows:

(1) Seventy-five percent of the fees shall be allocated

to the county and its municipalities in the manner provided

under subsection (b).

(2) Twenty-five percent of the fees shall be allocated

to the Commonwealth and distributed in the manner provided

under subsections (c) and (d).

(b) Distribution of fees to county and municipalities.--The

fees allocated to the county and its municipalities under

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subsection (a)(1) shall be distributed as follows:

(1) Thirty-six percent of the fees shall be retained by

the county where the producing unconventional gas wells are

located.

(2) Thirty-seven percent of the fees shall be

distributed to the municipalities where producing

unconventional gas wells are located. The amount for each

municipality shall be determined using a formula that divides

the number of producing unconventional gas wells in the

municipality by the number of producing unconventional gas

wells in the county and multiplies the resulting percentage

by the amount available for distribution under this

subparagraph.

(3) Twenty-seven percent of the fees shall be

distributed to all municipalities in the county where

producing unconventional gas wells are located as follows:

(i) Fifty percent shall be distributed to all

municipalities using a formula that divides the

population of the municipality within the county by the

total population of the county and multiplies the

resulting percentage by the amount available for

distribution to the county under this subparagraph.

(ii) Fifty percent shall be distributed to each

municipality using a formula that divides the highway

mileage of the municipality within the county by the

total highway mileage of the county and multiplies the

resulting percentage by the amount available for

distribution to the county under this subparagraph.

allocated to the Commonwealth under subsection (a)(2) shall be

remitted to the Commonwealth for deposit into a restricted

account in the General Fund of the Commonwealth dedicated solely

for fees. The funds are hereby appropriated and shall be

distributed as follows and as set forth under subsection (e):

(1) Seventy percent to the Department of Transportation

for road, bridge, rail and other transportation

infrastructure improvements to address impacts from

unconventional natural gas development.

(2) Ten and one-half percent to the department, not to

exceed $10,000,000 annually, for the regulation of

unconventional gas wells and the plugging of abandoned and

orphan gas wells within the Commonwealth.

(3) Seven and one-half percent to the Public Utility

Commission, not to exceed $2,000,000 annually, for the

enhancement, inspection and enforcement of pipeline safety

standards as required by law related to the safe transport of

gas and hazardous liquids.

(4) Four and one-half percent to the Pennsylvania

Emergency Management Agency, not to exceed $2,000,000

annually, for emergency response planning, training and

coordination associated with unconventional natural gas

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production activity within the Commonwealth.

(5) Three and three-quarters percent to the Department

of Health, not to exceed $2,000,000 annually, for collecting

and disseminating information, preparing and conducting

health care provider outreach and education and investigating

health-related complaints and other uses associated with

unconventional natural gas production activity within this

Commonwealth.

(6) Three and three-quarters percent to the Office of

State Fire Commissioner, not to exceed $2,000,000 annually,

for the development, delivery and sustainment of training

programs for first responders and acquisition of specialized

equipment necessary for emergency response.

(d) Additional distribution of fees to Department of

Transportation.--In addition to the distribution of fees to the

Department of Transportation under subsection (c)(1), any funds

remaining in the restricted account after distribution of fees

under subsection (c)(2), (3), (4), (5) and (6) are hereby

appropriated shall be distributed to the Department of

Transportation.

(e) Continuing nature.--

(1) The distributions under subsections (c) and (d)

shall be executive authorizations.

(2) The appropriations under subsections (c) and (d)

shall be continuing appropriations. Those appropriations

shall not lapse at the end of any fiscal year.

(f) Timing of distribution.--A county shall distribute the

fees authorized under this chapter within 45 days after the date

the fees are received.

(g) Use of funds by counties and municipalities.--A county

or municipality receiving fees under this section shall make use

of the fees received only for the following purposes associated

with unconventional natural gas production within the county or

municipality:

(1) Construction, reconstruction, maintenance and repair

of roadways, bridges and public infrastructure.

(2) Water, storm water and sewer systems, including

construction, reconstruction, maintenance and repair.

(3) Emergency preparedness and response, including

police, fire, hazardous material response, 911, equipment

acquisition, responder recruitment and other services.

(4) Preservation and reclamation of surface and

subsurface waters and water supplies, including drinking

water monitoring and testing.

(5) Records management, geographic information systems

and information technology.

(6) Projects that increase the availability of

affordable housing, either for sale or rental, to residents

whose annual income is less than the area median income.

(7) Delivery of social services, including domestic

relations, drug and alcohol treatment, job training and

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counseling.

(8) Assistance to the county conservation district for

inspection, oversight and enforcement of unconventional

natural gas development.

(9) County or municipal planning.

(10) Local tax reduction.

§ 3509. Calculation of payments.

(a) General rule.--The county treasurer of a county that

imposes and collects the unconventional gas well impact fee

shall certify the number of all unconventional gas wells located

within each municipality of the county based upon the

appropriate reports provided by the department.

(b) Payments to municipalities.--The county treasurer of a

county that imposes and collects the unconventional gas well

impact fee shall pay to municipalities the amounts required

under this subchapter.

§ 3510. Recordkeeping and State reporting.

(a) General rule.--Commencing in calendar year 2013 and

each year thereafter, before December 1, each county that

imposes and collects the unconventional gas well impact fee

authorized by this subchapter shall prepare and deliver a report

to the Secretary of the Senate and the Chief Clerk of the House

of Representatives detailing the expenditure of the funds

collected under this subchapter.

(b) Audit.--The Department of Community and Economic

Development may audit a county's and municipality's expenditure

of the funds.

receives the funds shall make its financial records and other

documents relating to its expenditure of the funds available to

the department.

(d) Time.--Reports shall be prepared no later than June 30

of the year following the initial receipt of any fees

distributed under this section and each June 30 thereafter.

(e) Location.--Reports shall be published on the county or

municipality's publicly accessible Internet website. If a

municipality does not maintain a publicly accessible Internet

website, the municipality shall provide its report to the

county, which shall publish the municipality's report on the

county's publicly accessible Internet website.

§ 3511. Expiration.

(a) Notice.--The Secretary of the Commonwealth shall, upon

the effective date of an act authorizing a severance tax on each

unconventional well producing gas in this Commonwealth, submit

for publication in the Pennsylvania Bulletin notice of that

fact.

(b) Date.--This chapter shall expire on the date of the

publication of the notice under subsection (a).

SUBCHAPTER B

(RESERVED)

Section 2. Title 58 is amended by adding parts to read:

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PART I

PRELIMINARY PROVISIONS

(RESERVED)

PART II

(RESERVED)

PART III

UTILIZATION

Chapter

31. (Reserved)

32. Development

CHAPTER 31

(RESERVED)

CHAPTER 32

DEVELOPMENT

Subchapter

A. Preliminary Provisions

B. General Requirements

C. Underground Gas Storage

D. Eminent Domain

E. Enforcement and Remedies

F. Miscellaneous Provisions

SUBCHAPTER A

PRELIMINARY PROVISIONS

Sec.

3201. Scope of chapter.

3202. Declaration of purpose.

3203. Definitions.

§ 3201. Scope of chapter.

This chapter relates to oil and gas.

§ 3202. Declaration of purpose.

The purposes of this chapter are to:

(1) Permit optimal development of oil and gas resources

of this Commonwealth consistent with protection of the

health, safety, environment and property of Pennsylvania

citizens.

(2) Protect the safety of personnel and facilities

employed in coal mining or exploration, development, storage

and production of natural gas or oil.

(3) Protect the safety and property rights of persons

residing in areas where mining, exploration, development,

storage or production occurs.

(4) Protect the natural resources, environmental rights

and values secured by the Constitution of Pennsylvania.

§ 3203. Definitions.

The following words and phrases when used in this chapter

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:

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

inject any gas, petroleum or other liquid within the

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preceding 12 months;

(ii) for which equipment necessary for production,

extraction or injection has been removed; or

(iii) considered dry and not equipped for production

within 60 days after drilling, redrilling or deepening.

(2) The term does not include wells granted inactive

status.

"Alteration." An operation which changes the physical

characteristics of a well bore, including stimulation or

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

this chapter only, the term does not include:

(1) Repairing or replacing of the 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 chapter,

except that this exclusion does not apply:

(i) to production casings in coal areas when the

production casings are also the coal protection casings;

(ii) when the method of repairing or replacing the

casing would affect the coal protection casing.

(2) Stimulation of a well.

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

"Bridge." An obstruction placed in a well at any 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." Any of the following:

(1) Hydraulic cement properly mixed with water only.

(2) A mixture of materials adequate for bonding or

sealing of well bores as approved by regulations promulgated

under this chapter.

"Coal mine." Any of the following:

(1) Operations in a coal seam, including excavated

portions, abandoned portions and places actually being

worked.

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

other ways and openings, including those which are in the

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

facilities connected with them below the surface.

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

operate a coal mine as an 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 that the well is abandoned.

"Department." The Department of Environmental Protection of

the Commonwealth.

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

deepening of an existing well.

"Environmental law." Any of the following:

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(1) A Federal statute pertaining to oil and gas

operations, public health, safety, natural resources or the

environment.

(2) A Federal regulation, rule, administrative order or

agency interpretation or guidance pertaining to oil and gas

operations, public health, safety, natural resources or the

environment.

(3) A Federal judicial decision pertaining to oil and

gas operations, public health, safety, natural resources or

the environment.

(4) A Commonwealth statute pertaining to oil and gas

operations, public health, safety, natural resources or the

environment. The term includes any of the following:

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

known as The Clean Streams Law.

(ii) The act of January 8, 1960 (1959 P.L.2119,

No.787), known as the Air Pollution Control Act.

(iii) The act of July 7, 1961 (P.L.518, No.268),

known as the Delaware River Basin Compact.

(iv) The act of July 25, 1961 (P.L.825, No.359),

known as the Oil and Gas Conservation Law.

(v) The act of July 17, 1968 (P.L.368, No.181),

referred to as the Susquehanna River Basin Compact Law.

(vi) The act of October 4, 1978 (P.L.864, No.167),

known as the Storm Water Management Act.

(vii) The act of November 26, 1978 (P.L.1375,

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

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

known as the Solid Waste Management Act.

(ix) The act of June 23, 1982 (P.L.597, No.170),

known as the Wild Resource Conservation Act.

(x) The act of May 1, 1984 (P.L.206, No.43), known

as the Pennsylvania Safe Drinking Water Act.

(xi) The act of July 10, 1984 (P.L.688, No.147),

known as the Radiation Protection Act.

(xii) The act of October 5, 1984 (P.L.734, No.159),

known as the Worker and Community Right-to-Know Act.

(xiii) The act of December 18, 1984 (P.L.1069,

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

Act.

(xiv) The act of December 19, 1984 (P.L.1093,

No.219), known as the Noncoal Surface Mining Conservation

and Reclamation Act.

(xv) The act of October 18, 1988 (P.L.756, No.108),

known as the Hazardous Sites Cleanup Act.

(xvi) The act of July 6, 1989 (P.L.169, No.32),

known as the Storage Tank and Spill Prevention Act.

(xvii) The act of December 7, 1990 (P.L.639,

No.165), known as the Hazardous Material Emergency

Planning and Response Act.

(xviii) The act of May 19, 1995 (P.L.4, No.2), known

2011/90JLW/HB1950A06347	- 14 -

as the Land Recycling and Environmental Remediation

Standards Act.

(xix) The act of July 4, 2008 (P.L.526, No.43),

known as the Great Lakes-St. Lawrence River Basin Water

Resources Compact.

(xx) The provisions of 27 Pa.C.S. Ch. 31 (relating

to water resources planning)

(xxi) The provisions of 27 Pa.C.S. Ch. 41 (relating

to environmental laboratory accreditation).

(xxii) The provisions of 27 Pa.C.S. Ch. 62 (relating

to waste transportation safety).

(xxiii) The provisions of 30 Pa.C.S. (relating to

fish).

(xxiv) The provisions of 34 Pa.C.S. (relating to

game).

(5) A regulation, rule, administrative order or agency

interpretation or guidance of a Commonwealth agency

pertaining to oil and gas operations, public health, safety,

natural resources or the environment.

(6) A decision of a court of this Commonwealth

pertaining to oil and gas operations, public health, safety,

natural resources or the environment.

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

recognized hydrologic cycle which occupies the pore spaces and

fractures of saturated subsurface materials.

"Gas." Any of the following:

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

produced in a natural state from the earth and maintains a

gaseous or rarified state at standard temperature of 60

degrees Fahrenheit and pressure 14.7 PSIA.

(2) Any manufactured gas, byproduct gas or mixture of

gases or natural gas liquids.

"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.

"Oil." Hydrocarbons in liquid form at standard temperature

of 60 degrees Fahrenheit and pressure 14.7 PSIA, also referred

to as petroleum.

"Oil and gas operations." Any of the following:

(1) Exploration for oil and gas. This paragraph includes

the conduct of seismic operations.

(2) Siting and locating of oil and gas wells.

(3) Drilling, stimulation and completion of oil and gas

wells.

(4) Generation, processing, treatment, storage,

transportation and disposal of fresh water, wastewater,

wastes, chemicals and other materials directly associated

with drilling, stimulation and completion of oil and gas

2011/90JLW/HB1950A06347	- 15 -

wells.

(5) Production, gathering and collection of oil or gas.

(6) Compression, transportation, processing, measurement

and storage of oil or gas.

(7) Reclamation activities.

(8) Construction and use of drilling rigs and pipelines.

This paragraph includes equipment directly related to the

activities set forth in this paragraph.

(9) Construction and use of access roads, well sites,

drilling pads, impoundments, compression stations, processing

stations, meter stations and storage tanks. This paragraph

includes buildings, facilities or structures, which are

directly related to the activities set forth in this

paragraph. This paragraph does not include ancillary support,

supply and service facilities, the location of which is not

dependent on the location of specific wells or pipelines.

"Operating coal mine." Any of the following:

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

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

months immediately preceding the date its status is put in

question, including contiguous worked-out or abandoned coal

mines to which it is connected underground.

(2) An underground coal mine to be established or

reestablished under paragraph (1).

"Operating well." A well that is 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 other than 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 the coal mine under an underground mine permit

issued by the Department of Environmental Protection.

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

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

orphan wells, except where the Department of Environmental

Protection determines a prior owner or operator benefited from

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

requirements).

"Person." An individual, association, partnership,

corporation, political subdivision or agency of the Federal

Government, State government or other legal entity.

"Petroleum." Hydrocarbons in liquid form at standard

temperature of 60 degrees Fahrenheit and pressure 14.7 PSIA,

also referred to as oil.

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

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.

"Reservoir protective area." The area surrounding a storage

2011/90JLW/HB1950A06347	- 16 -

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

reservoir boundary, unless an alternate area has been designated

by the Department of Environmental Protection, which is deemed

reasonably necessary to afford protection to the reservoir,

under a conference held in accordance with section 3251

(relating to conferences).

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

remaining after development mining has been completed in that

section of a coal mine.

"Secretary." The Secretary of Environmental Protection of

the Commonwealth.

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

operate a storage reservoir as an owner or lessee.

"Storage reservoir." That portion of a subsurface geological

stratum into which gas is or may be injected for storage

purposes or to test suitability of the stratum for storage.

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

for the purpose of or to be used for producing oil or gas from a

geological shale formation existing below the base of the Elk

Sandstone or its geologic equivalent stratigraphic interval

where oil or gas generally cannot be produced at economic flow

rates or in economic volumes except by one of the following:

(1) Vertical or horizontal well bores stimulated by

hydraulic fracture treatments.

(2) Using multilateral well bores or other techniques to

expose more of the formation of the well bore.

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

completing a well in an unconventional formation that

demonstrates that the withdrawal and use of water sources

protects those sources as required by law and protects public

health, safety and welfare.

"Water purveyor." Any of the following:

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

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

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

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

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

"Water source."

(1) Any of the following:

(i) Waters of this Commonwealth.

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

purveyor.

(iii) Mine pools and discharges.

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

completing a well in an unconventional formation.

(2) The term does not include flowback or production

waters or other fluids:

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

in an unconventional formation; and

(ii) which do not discharge into waters of this

Commonwealth.

2011/90JLW/HB1950A06347	- 17 -

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

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

petroleum or another liquid related to oil or gas production or

storage, including brine disposal, but excluding a bore hole

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

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

used for:

(1) Systems of monitoring, producing or extracting gas

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

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

known as the Solid Waste Management Act, which does not

penetrate a workable coal seam.

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

(i) used to vent methane to the outside atmosphere

from an operating coal mine; regulated as part of the

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 drilled by

the operator of the operating coal mine for the purpose

of increased safety; or

(ii) used to vent methane to the outside atmosphere

under a federally funded or State-funded abandoned mine

reclamation project.

"Well control emergency." An incident during drilling,

operation, workover or completion that, as determined by the

department, poses a threat to public health, welfare or safety,

including a loss of circulation fluids, kick, casing failure,

blowout, fire and explosion.

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

a well control emergency with a current certification from a

well control course accredited by the International Association

of Drilling Contractors or other organization approved by the

department.

"Well operator" or "operator." Any of the following:

(1) The person designated as operator or well operator

on the permit application or well registration.

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

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

or reconditions a well with the purpose of production from

the well.

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

storage of gas, a storage operator.

"Wetland." Areas inundated or saturated by surface or

groundwater at a frequency and duration sufficient to support,

and which normally support, a prevalence of vegetation typically

adapted for life in saturated soil conditions, including swamps,

marshes, bogs and similar areas.

"Workable coal seams." A coal seam which:

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

under this chapter by underground methods; or

2011/90JLW/HB1950A06347	- 18 -

(2) in the judgment of the Department of Environmental

Protection, can reasonably be expected to be mined by

underground methods.

SUBCHAPTER B

GENERAL REQUIREMENTS

Sec.

3211. Well permits.

3212. Permit objections.

3212.1. Comments by municipalities.

3213. Well registration and identification.

3214. Inactive status.

3215. Well location restrictions.

3215.1. General restrictions.

3216. Well site restoration.

3217. Protection of fresh groundwater and casing requirements.

3218. Protection of water supplies.

3219. Use of safety devices.

3219.1. Well control emergency response.

3220. Plugging requirements.

3221. Alternative methods.

3222. Well reporting requirements.

3223. Notification and effect of well transfer.

3224. Coal operator responsibilities.

3225. Bonding.

3226. Oil and Gas Technical Advisory Board.

§ 3211. Well permits.

(a) Permit required.--No person shall drill or alter a well,

except for alterations which satisfy the requirements of

subsection (j), without having first obtained a well permit

under subsections (b), (c), (d) and (e), or operate an abandoned

or orphan well unless in compliance with subsection (l). 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 the redrilling:

(1) has been evaluated and approved as part of an order

from the department authorizing cleaning out and plugging or

replugging 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) is incidental to a plugging or replugging operation

and the well is plugged within 15 days of redrilling.

(b) Plat.--

(1) The permit application shall be accompanied by a

plat prepared by a competent engineer or a competent

surveyor, on forms furnished by the department, showing the

political subdivision and county in which the tract of land

upon which the well to be drilled is located; a list of

municipalities adjacent to the well site; the name of the

surface landowner of record and lessor; the name of all

surface landowners and water purveyors whose water supplies

are within 1,000 feet of the proposed well location or, in

2011/90JLW/HB1950A06347	- 19 -

the case of an unconventional well, within 2,500 feet of the

proposed well location; the name of the owner of record or

operator of all known underlying workable coal seams; the

acreage in the tract to be drilled; the proposed location of

the well determined by survey, courses and distances of the

location from two or more permanent identifiable points or

landmarks on the tract boundary corners; the proposed angle

and direction of the well if the well is to be deviated

substantially from a vertical course; the number or other

identification to be given the well; the workable coal seams

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

drilled or altered and which shall be cased off under section

3217 (relating to protection of fresh groundwater and casing

requirements); and any other information needed by the

department to administer this chapter.

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

of the plat to the surface landowner; the municipality in

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

located; the municipalities adjacent to the well; all surface

landowners and water purveyors, whose water supplies are

within 1,000 feet of the proposed well location or, in the

case of an unconventional well, within 2,500 feet of the

proposed well location; the owner and lessee of any coal

seams; and each coal operator required to be identified on

the well permit application.

(b.1) Notification.--The applicant shall submit proof of

notification with the well permit application. Notification of

surface owners shall be performed by sending notice to those

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. Notification of surface

landowners or water purveyors whose water supplies are within

1,000 feet of the proposed well location shall be on forms, and

in a manner prescribed by the department, sufficient to identify

the rights afforded those persons under section 3218 (relating

to protection of water supplies) and to advise them of the

advantages of taking their own predrilling or prealteration

survey.

(b.2) Approval.--If the applicant submits to the department

written approval of the proposed well location by the surface

landowner and the coal operator, lessee or owner of any 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 notice by

the department, the surface landowner or any coal operator,

lessee or owner, the written approval shall be filed and become

a permanent record of the well location, subject to inspection

at any time by any interested person.

corporation, partnership or person that is not a resident of

2011/90JLW/HB1950A06347	- 20 -

this Commonwealth, the applicant shall designate the name and

address of 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 chapter may be served and upon whom process

may be served. Each well operator required to designate an agent

under this section shall, within five days after termination of

the designation, notify the department of the termination and

designate a new agent.

(d) Permit fee.--Each 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 chapter.

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

within 45 days of submission of a permit application unless the

department denies the permit application for one or more of the

reasons set forth in subsection (e.1), except that the

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

for cause shown upon notification to the applicant of the

reasons for the extension. The department may impose permit

terms and conditions necessary to assure compliance with this

chapter or other laws administered by the department.

(e.1) Denial of permit.--The department may deny a permit

for any of the following reasons:

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

violation of any of this chapter or issuance of the permit

would result in a violation of this chapter or other

applicable law.

(2) The permit application is incomplete.

(3) Unresolved objections to the well location by coal

mine owner or operator remain.

(4) The requirements of section 3225 (relating to

bonding) have not been met.

(5) The department finds that the applicant, or any

parent or subsidiary corporation of the applicant, is in

continuing violation of this subchapter, any other statute

administered by the department, any rule or regulation

promulgated under this subchapter or a statute administered

by the department or any plan approval, permit or order of

the department, unless the violation is being corrected to

the satisfaction of the department. The right of the

department to deny a permit under this paragraph shall not

take effect until the department has taken a final action on

the violations and:

(i) the applicant has not appealed the final

action in accordance with the act of July 13, 1988

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

Board Act; or

(ii) if an appeal has been filed, no supersedeas

has been issued.

(f) Drilling.--

2011/90JLW/HB1950A06347	- 21 -

(1) Upon issuance of a permit, the well operator may

drill at the location shown on the plat after providing the

department, the surface landowner and the local political

subdivision in which the well is to be located 24 hours'

notice of the date that drilling will commence.

(2) The unconventional well operator shall provide the

department 24 hours' notice prior to cementing all casing

strings, conducting pressure tests of the production casing,

stimulation and abandoning or plugging an unconventional

well.

(3) In noncoal areas where 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.

Remaining wells of the project shall be shown on the plat in

a manner prescribed by regulation.

(4) Prior to drilling each additional project well, the

well operator shall notify the department and provide

reasonable notice of the date on which drilling will

commence.

(5) Whenever, before or during the drilling of a well

not within the boundaries of an operating coal mine, the well

operator encounters conditions of a nature which renders

drilling of the bore hole or a portion thereof impossible, or

more hazardous than usual, the well operator, upon verbal

notice to the department, may immediately plug all or part of

the bore hole, if drilling has occurred, and commence a new

bore hole not more than 50 feet from the old bore hole if the

location of the new bore hole does not violate section 3215

(relating to well location restrictions) and, in the case of

a well subject to act of July 25, 1961 (P.L.825, No.359),

known as the Oil and Gas Conservation Law, if the new

location complies with existing laws, regulations and spacing

orders and the new bore hole is at least 330 feet from the

nearest lease boundary.

(6) Within ten 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.

(7) The well operator shall forward a copy of the

amended plat to the surface landowner identified on the well

permit application within ten days of commencement of the new

well bore.

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

address and telephone number shall be conspicuously posted at

the drilling site 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 on the well upon completion.

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

under this chapter shall expire one year after issuance unless

2011/90JLW/HB1950A06347	- 22 -

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 one-year period, the well permit shall

remain in force until the well is plugged in accordance with

section 3220 (relating to plugging requirements) 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 3220. Nothing in this subsection shall

be construed to rescind the provisions pertaining to drilling

permits contained in Chapter 34.

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

establish by regulation certain categories of alterations of

permitted or registered wells for which permitting requirements

of this section shall not apply. A well operator or owner who

proposes to conduct the alteration activity shall first obtain a

permit or registration modification from the department. The

Environmental Quality Board shall promulgate regulations as to

the requirements for modifications.

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

section or registration issued under section 3213 (relating to

well registration and identification) may be transferred without

prior approval of the department. A request for approval of a

transfer shall be on the forms, and in the manner, prescribed by

the department. The department shall approve or deny a transfer

request within 45 days of receipt of a complete and accurate

application. The department may deny a request only for reasons

set forth in subsection (e.1)(4) and (5). Approval of a transfer

request shall permanently transfer responsibility to plug the

well under section 3220 to the recipient of the transferred

permit or registration.

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

establish by regulation requirements for the 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 operate an abandoned or orphan well.

(m) Water management.--The following shall apply to water

management:

(1) No person may withdraw or use water from water

sources within this Commonwealth for the drilling or

hydraulic fracture stimulation of any natural gas well

completed in an unconventional gas formation, whether on or

off of the land where the gas well is located, except in

accordance with a water management plan approved by the

department.

(2) The department shall review and approve water

management plans based upon a determination that the proposed

withdrawal, when operated in accordance with the proposed

withdrawal operating conditions set forth in the plan,

including conditions relating to quantity, withdrawal rate

2011/90JLW/HB1950A06347	- 23 -

and timing and any passby flow conditions, will:

(i) not adversely affect the quantity or quality of

water available to other users of the same water sources;

(ii) protect and maintain the designated and

existing uses of water sources; and

(iii) not cause adverse impact to water quality in

the watershed considered as a whole.

(3) (i) The criteria under paragraph (2) shall be

presumed to be achieved if the proposed water withdrawal

has been approved by and is operated in accordance with

conditions established by the Susquehanna River Basin

Commission, the Delaware River Basin Commission or the

Great Lakes Commission, as applicable.

(ii) Notwithstanding subparagraph (i), the

department may establish additional requirements as

necessary to comply with the laws of this Commonwealth.

(4) In addition to the requirements under paragraphs

(1), (2) and (3), compliance with a department-approved water

management plan shall be a condition of any permit issued

under this chapter for the drilling or hydraulic fracture

stimulation of any natural gas well completed in an

unconventional formation and shall be deemed to satisfy the

laws of this Commonwealth.

§ 3212. Permit objections.

(a) General rule.--If a well referred to in section 3211(b)

(relating to well permits) 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 may file objections, in accordance with section 3251

(relating to conferences), based on the assertion that the well

location violates section 3215 (relating to well location

restrictions) 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 under section 3211(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 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 as the

address listed in the assessment books in the county where the

property is located. If no objection is filed or none is 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 objection is

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 referred to in section

3211(b) will penetrate within the outside coal boundaries of an

operating coal mine or a coal mine already projected and platted

but not yet being operated, or within 1,000 linear feet beyond

those boundaries, and, in the opinion of the coal owner or

2011/90JLW/HB1950A06347	- 24 -

operator, the well or a pillar of coal about the well will

unduly interfere with or endanger the mine, the coal owner or

operator affected may file objections under section 3251 to the

proposed location within 15 days of the receipt by the coal

operator of the plat under section 3211(b). If possible, an

alternative location at which the proposed well could be drilled

to overcome the objections shall be indicated. If no objection

to the proposed location is filed or if none is 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 location is filed with the department and no

objection is raised by the department within 15 days of filing,

the department shall proceed to issue or deny the permit.

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

shall fix a time and place for a conference under section 3251

not more than ten days from the date of service of the objection

to allow the parties to consider the objection and attempt to

agree on a location. If they fail to agree, the department, by

an appropriate order, shall determine a location on the 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

defined in subsection (b). The new location agreed upon by the

parties or determined by the department shall be indicated on

the plat on file with the department and become a permanent

record upon which the department shall proceed to issue or deny

the permit.

(d) Survey.--Within 120 days after 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, file the results of the survey with

the department and forward a copy by certified mail to the well

operator.

§ 3212.1. Comments by municipalities.

(a) General rule.--The municipality where the tract of land

upon which the unconventional well to be drilled is located may

submit written comments to the department describing local

conditions or circumstances which the municipality has

determined should be considered by the department in rendering

its determination on the unconventional well permit. A comment

under this subsection must be submitted to the department within

15 days of the receipt of the plat under section 3211(b)

(relating to well permits). The municipality shall

simultaneously forward a copy of its comments to the permit

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

under section 3211(b), who may submit a written response. A

written response must be submitted to the department within ten

days of receipt of the comments of the municipality.

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

under subsection (a) may be considered by the department in

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accordance with section 3215(d) (relating to well location

restrictions).

this section shall not extend the time period for the issuance

or denial of a permit beyond the time period set forth in this

chapter.

§ 3213. Well registration and identification.

(a) General rule.--On or before July 5, 1996, each person

who owned or operated a well in existence prior to April 18,

1985, which has not been registered with the department and for

which no drilling permit has been issued by the department,

shall register the well with the department. A well owner or

operator who registers under this subsection and a well owner or

operator who has previously registered a well under this chapter

shall, on or before July 5, 1996, identify any abandoned well on

property which the well owner or operator owns or leases and

request approval from the department for classification of the

well as an orphan well. Information regarding wells to be

registered or identified shall be provided on a form, 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 corporation, partnership or person

nonresident of this Commonwealth, the name and address of an

agent for the operator upon whom notices, orders, process or

other communications issued under this chapter may be served.

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

by a point on a 7 1/2 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 drilling and completing the

well, its approximate depth and producing horizons, well

construction information and, if available, driller's logs.

(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

and satisfying the requirements of section 3225 (relating to

bonding). No bond, alternative fee or other evidence of

financial security shall be required for identification of an

orphan well. For wells drilled prior to January 30, 1956,

which have not been bonded, the well operator shall have five

years to comply with the provisions of this paragraph.

(5) A registration fee of $15 per well or blanket

registration fee of $250 for multiple well registration

applications submitted simultaneously. The registration fee

shall be waived until July 5, 1996, and no fee shall be

charged for identification of an orphan well.

(a.1) Orphan wells.--After July 5, 1996, a well owner, well

operator or other person discovering an abandoned well on

property purchased or leased by the well owner, well operator or

other person shall identify it to the department within 60 days

of discovery and advise the department that he is seeking

2011/90JLW/HB1950A06347	- 26 -

classification of the well as an orphan well. No fee shall be

required for identification.

(b) Extension.--The department may extend the one-year time

period under subsection (a) for good cause shown. The extension

may not exceed a period ending two years from April 18, 1985.

The department may adopt and promulgate guidelines designed to

ensure a fair implementation of this section, recognizing the

practical difficulties of locating unpermitted wells and

complying with the reporting requirements of this chapter.

shall install the registration number issued by the department

in a legible, conspicuous and permanent manner on the well

within 60 days of issuance.

(d) Definition.--For purposes of subsection (a)(4) and (5),

the term "owner" does not include an owner or possessor of

surface real property, on which an abandoned well is located,

who did not participate or incur costs in, and had no right of

control over, the drilling or extraction operation of the

abandoned well.

§ 3214. Inactive status.

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

grant inactive status for a period of five years 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

department determines the well poses a threat to the health

and safety of persons or property or to the environment;

(3) the operator anticipates construction of a pipeline

or future use of the well for primary or enhanced recovery,

gas storage, approved disposal or other appropriate uses

related to oil and gas well production; and

(4) the applicant satisfies the bonding requirements of

sections 3213 (relating to well registration and

identification) and 3225 (relating to bonding), 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 3225(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

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

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

prescribed by departmental regulations.

(d) Return to active status.--A well granted inactive status

under subsection (a) shall be plugged in accordance with section

2011/90JLW/HB1950A06347	- 27 -

3220 (relating to plugging requirements) or returned to active

status within five years of the date inactive status was

granted, unless the owner or operator applies for an extension

of inactive status which may be granted on a year-to-year basis

if the department determines that the owner or operator has

demonstrated ability to continue meeting the requirements of

this section and the owner or operator certifies that the well

will be of future use within a reasonable period of time. An

owner or operator who has been granted inactive status for a

well which is returned to active status prior to expiration of

the five-year period set forth in subsection (a) shall notify

the department that the well has been returned to active status

and shall not be permitted to apply for another automatic five-

year period of inactive status for the well. The owner or

operator may make application to return the well to inactive

status, and the application may be approved on a year-to-year

basis if the department determines that the owner or operator

has demonstrated an ability to continue meeting the requirements

of this section and the owner or operator certifies that the

well will be of future use within a reasonable period of time.

The department shall approve or deny an application to extend a

period of inactive status or to return a well to inactive status

within 60 days of receipt of the application, and the

application shall not be unreasonably denied. If the department

has not completed its review of the application within 60 days,

the inactive status shall continue until the department has made

a determination on the request. If the department denies an

application to extend the period of inactive status or to return

a well to 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

denial. Upon cause shown by a well owner or operator, the board

may grant a supersedeas under section 4 of the act of July 13,

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

Act, so that the well in question may retain inactive status

during the period of the appeal.

(e) Revocation of inactive status.--The department may

revoke inactive status and order immediate plugging of a well if

the well is in violation of this chapter or rules or regulations

promulgated under this chapter or if the owner or operator

demonstrates inability to perform obligations under this chapter

or becomes financially insolvent, or upon receipt by the

department of notice of bankruptcy proceedings by the permittee.

§ 3215. Well location restrictions.

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

or, in the case of an unconventional gas well, 500 feet measured

horizontally from the vertical well bore to a building or water

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

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

consent of the owner of the building or water well.

Unconventional gas wells may not be drilled within 1,000 feet

2011/90JLW/HB1950A06347	- 28 -

measured horizontally from the vertical well bore to any

existing water well, surface water intake, reservoir or other

water supply extraction point used by a water purveyor without

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

obtained and the distance restriction would deprive the owner of

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

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

be granted a variance from the distance restriction upon

submission of a plan identifying the additional measures,

facilities or practices as prescribed by the department to be

employed during well site construction, drilling and operations.

The variance, if granted, shall include additional terms and

conditions required by the department to ensure safety and

protection of affected persons and property, including

insurance, bonding, indemnification and technical requirements.

(b) Limitation.--

(1) No well may be drilled within 100 feet, or, in the

case of an unconventional well, 300 feet measured

horizontally from any solid blue lined stream as identified

on the most current 7 1/2 minute topographic quadrangle map

of the United States Geological Survey.

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

unconventional well must maintain a 100-foot setback from the

edge of any solid blue lined stream as identified on the most

current 7 1/2 minute topographic quadrangle map of the United

States Geological Survey.

(3) No unconventional well may be drilled within 300

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

edge of the disturbed area must maintain a 100-foot setback

from the boundary of the wetlands.

(4) The department shall waive the distance restrictions

upon submission of a plan identifying additional measures,

facilities or practices to be employed during well site

construction, drilling and operations. The waiver shall impose

permit conditions necessary to protect the waters of this

Commonwealth.

department shall consider impact of the proposed well on public

resources, including, but not limited to:

(1) Publicly owned parks, forests, game lands and

wildlife areas.

(2) National or State scenic rivers.

(3) National natural landmarks.

(4) Habitats of rare and endangered flora and fauna and

other critical communities.

(5) Historical and archaeological sites listed on the

Federal or State list of historic places.

(d) Consideration of municipality comments.--The department

may consider the comments submitted under section 3212.1

(relating to comments by municipalities) in making a

determination on a well permit. Notwithstanding any other law,

2011/90JLW/HB1950A06347	- 29 -

no municipality shall have a right of appeal or other form of

review from the department's decision.

(e) Regulation criteria.--The Environmental Quality Board

shall develop by regulation criteria:

(1) For the department to utilize for conditioning a

well permit based on its impact to the public resources

identified under subsection (c) and for ensuring optimal

development of oil and gas resources and respecting property

rights of oil and gas owners.

(2) For appeal to the Environmental Hearing Board of a

permit containing conditions imposed by the department. The

regulations shall also provide that the department has the

burden of proving by clear and convincing evidence that the

conditions were necessary to protect against a probable

harmful impact of the public resources.

(3) For processes and procedures for the adjudication of

compensation claims of affected owners, if any conditions or

restrictions imposed by application of the criteria developed

under paragraph (1) deprive the owner of the oil and gas

rights, in part or in whole, of the right to produce or share

in the oil as gas underlying the surface tract or tracts

affected by imposition of any condition or conditions.

(f) Floodplains.--

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

any floodplain if the well site will have:

(i) a pit or impoundment containing drilling

cuttings, flowback water, produced water or hazardous

materials, chemicals or wastes within the floodplain; or

(ii) a tank containing hazardous materials,

chemicals, condensate, wastes, flowback or produced water

within the floodway.

(2) A well site shall not be eligible for a floodplain

restriction waiver if the well site will have a tank

containing condensate, flowback or produced water within the

flood fringe unless all the tanks have adequate floodproofing

in accordance with the National Flood Insurance Program

standards and accepted engineering practices.

(3) The department may waive restrictions upon

submission of a plan that shall identify the additional

measures, facilities or practices to be employed during well

site construction, drilling and operations. The waiver, if

granted, shall impose permit conditions necessary to protect

the waters of this Commonwealth.

(4) Best practices to ensure the protection of the

waters of this Commonwealth must be utilized for the storage

and handling of all water, chemicals, fuels, hazardous

materials or solid waste on a well site located in a

floodplain. The department may request that the well site

operator submit a plan for the storage and handling of

materials for approval by the department and may impose

conditions or amend permits to include permit conditions as

2011/90JLW/HB1950A06347	- 30 -

are necessary to protect the environment, public health and

safety.

(5) Unless otherwise specified by the department, the

boundary of the floodplain shall be as indicated on maps and

flood insurance studies provided by the Federal Emergency

Management Agency. In an area where no Federal Emergency

Management Agency maps or studies have defined the boundary

of the 100-year frequency floodplain, absent evidence to the

contrary, the floodplain shall extend from:

(i) any perennial stream up to 100 feet horizontally

from the top of the bank of the perennial stream; or

(ii) from any intermittent stream up to 50 feet

horizontally from the top of the bank of the intermittent

stream.

(g) Existing wells and pads.--Subsections (a) and (b) shall

not apply to any of the following:

(1) A well for which a valid permit exists as of the

effective date of this subsection.

(2) A well permit application submitted after the

effective date of this subsection for a well that will be

located on a wellpad upon which a well has been drilled under

a valid permit that was approved before the effective date of

this subsection.

§ 3215.1. General restrictions.

(a) Security fencing.--Security fencing shall be installed

at natural gas compressed stations, dehydration and processing

facilities and other central processing facilities to secure all

permanent buildings, facilities, structures and equipment and to

protect the public. Warning signs shall be placed on the

security fencing providing notice of potential dangers and

providing contact information in case of an emergency.

(b) Temporary operations.--The following shall apply to

temporary operations, such as well drilling and completion

operations:

(1) Except as provided under paragraph (2), temporary

security fencing shall be installed at the oil or gas well

site to secure all buildings, facilities, structures and

equipment at the site and to protect the public. Warning

signs shall be placed at the well site providing notice of

potential dangers and providing contact information in case

of an emergency.

(2) In lieu of security fencing under paragraph (1), a

well owner or operator may establish 24-hour security

staffing at the site and install a security gate at the

entrance of the access road to prevent unauthorized access.

buildings, facilities and structures directly related to oil and

gas operations, either temporary or permanent, shall be directed

downward and inward toward the activity, to the extent

practicable, so as to minimize the glare on public roads and

nearby buildings within 100 feet of the well site, building,

2011/90JLW/HB1950A06347	- 31 -

facility or structure.

(d) Noise regulations.--Well owners and operators shall

comply with all applicable noise regulations promulgated by the

Federal Energy Regulatory Commission, except that the noise

level from permanent oil and gas operations may not exceed 60

dBA at the nearest property line of the tract of land upon which

oil and gas operations are being conducted.

(e) Atmospheric discharge.--Well owners and operators shall

comply with each applicable environmental law governing the

discharge of gases, vapors and odors into the atmosphere. The

discharge of gases, vapors and odors during oil and gas

operations may not unreasonably interfere with the comfortable

enjoyment of life or property.

(f) Applicability.--This section shall only apply to

unconventional natural gas wells.

§ 3216. 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 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.

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.

Drilling supplies and equipment not needed for production may be

stored on the well site if express written consent of the

surface landowner is obtained.

(d) Items related to production or storage.--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 chapter or in regulations promulgated under this chapter

shall also comply with all applicable provisions of The Clean

Streams Law.

(f) Violation of chapter.--Failure to restore the well site

as required in this chapter or regulations promulgated under

this chapter constitutes a violation of this chapter.

(g) Extension.--

(1) The restoration period may be extended by the

department for an additional period of time not to exceed two

years upon demonstration by the well owner or operator that:

(i) the extension will result in less earth

disturbance, increased water reuse or more efficient

2011/90JLW/HB1950A06347	- 32 -

development of the resources; or

(ii) site restoration cannot be achieved due to

adverse weather conditions or a lack of essential fuel,

equipment or labor.

(2) The demonstration under paragraph (1) shall do all

of the following:

(i) Include a site restoration plan that shall

provide for:

(A) the timely removal or fill of all pits used

to contain produced fluids or industrial wastes;

(B) the removal of all drilling supplies and

equipment not needed for production;

shall include interim postconstruction storm water

management best management practices; or

(D) other measures to be employed to minimize

accelerated erosion and sedimentation in accordance

with The Clean Streams Law.

(ii) Provide for returning the portions of the site

not occupied by production facilities or equipment to

approximate original contours and making them capable of

supporting the uses that existed prior to drilling the

well.

(3) The department may condition an extension under this

subsection as is necessary in accordance with The Clean

Streams Law.

§ 3217. Protection of fresh groundwater and casing

requirements.

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

groundwater, well operators 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, 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 migration of gas or fluids into

sources of fresh groundwater and pollution or diminution of

fresh groundwater, a string or strings of casing shall be run

and permanently cemented in each well drilled through the fresh

water-bearing strata to a depth and in a manner prescribed by

regulation by the department.

drilled at a location where coal has been removed from one or

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

migration of gas or fluids into the seam from which 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 work protecting the mine.

(d) Procedure when coal has not been removed.--If a well is

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

the well shall be drilled to a depth and of a size sufficient to

2011/90JLW/HB1950A06347	- 33 -

permit placement of casing, packers in and vents on the hole at

the points and in the manner prescribed by regulation to exclude

gas or fluids from the coal seam, except gas or fluids found

naturally in the seam itself, and to enable monitoring the

integrity of the production casing.

§ 3218. 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.

(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 so notify the department and request that

an investigation be conducted. Within ten days of notification,

the department shall investigate the claim and make a

determination within 45 days following notification. If the

department finds that the pollution or diminution was caused by

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

necessary to assure compliance with subsection (a), including

orders requiring temporary replacement of a water supply where

it is determined that pollution or diminution may be of limited

duration.

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

responsible for pollution of a water supply if:

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

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

or gas well; and

(ii) the pollution occurred within six months after

completion of drilling or alteration of the oil or gas

well; or

(2) in the case of an unconventional well:

(i) the water supply is within 2,500 feet of the

unconventional well; and

(ii) the pollution occurred within 12 months of the

later of completion, drilling or alteration of the

unconventional well.

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

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

the following:

(1) 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

2011/90JLW/HB1950A06347	- 34 -

well.

(4) The pollution occurred more than six months after

completion of drilling or alteration activities.

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

other than the drilling or alteration activity.

(e) Independent certified laboratory.--An operator electing

to preserve a defense under subsection (d)(1) or (2) shall

retain an independent certified laboratory to conduct a

predrilling or prealteration survey of the water supply. A copy

of survey results shall be submitted to the department and the

landowner or water purveyor in the manner prescribed by the

department.

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

prevent a landowner or water purveyor claiming pollution or

diminution of a water supply from seeking any other remedy at

law or in equity.

§ 3219. Use of safety devices.

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

it with casings of sufficient strength, and other safety devices

as are necessary, in the manner prescribed by regulation of the

department, and shall use every effort and endeavor effectively

to prevent blowouts, explosions and fires.

§ 3219.1. Well control emergency response.

(a) Contracts.--The department may enter into contracts with

well control specialists in order to provide adequate emergency

response services in the event of a well control emergency.

(b) Civil immunity.--Except as set forth in subsection (c),

a well control specialist with which the department has entered

into a contract under subsection (a) shall be immune from civil

liability for actions taken in good faith to carry out its

contractual obligations.

damage arising from any of the following:

(1) Breach of the contract under subsection (a).

(2) An intentional tort.

(3) Gross negligence.

§ 3220. Plugging requirements.

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

operator shall plug it in the manner prescribed by regulation of

the department to stop vertical flow of fluids or gas within the

well bore, unless the department has granted inactive status for

the well or it has been approved by the department as an orphan

well. If 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, after

April 18, 1979, from an orphan well or an unregistered well, the

owner or operator shall be responsible for plugging the well. In

the case of a gas well penetrating a workable coal seam which

was drilled prior to January 30, 1956, or which was permitted

after that date but not plugged in accordance with this chapter,

if the owner or operator or a coal operator or an agent proposes

2011/90JLW/HB1950A06347	- 35 -

to plug the well to allow mining through it, the gas well shall

be cleaned to a depth of at least 200 feet below the coal seam

through which mining 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 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 plugging and

abandonment of a well in an area underlain by a workable coal

seam, the well operator or owner shall notify the department and

the coal operator, lessee or owner 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 plugging will commence, which

shall be not less than three working days, nor more than 30

days, after the notice is received, to permit representatives of

the persons notified to be present at the plugging. Notice and

the right to be present may be waived by the department and the

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

lessee or owner shall be in writing and a copy shall be attached

to the notice of abandonment filed with the department under

this section. Whether or not representatives attend, if the well

operator has fully complied with this section, the well operator

may proceed, at the time fixed, to plug the well in the manner

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 setting forth the

time and manner in which the well was 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

shall be mailed to the department.

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 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 plugging will commence,

which shall be not less than three working days, nor more than

30 days, after the notice is received, to permit a department

representative to be present at the plugging. 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, the department shall be given three working days'

notice prior to plugging the first well of the project, subject

to waiver of notice described in subsection (b). In the plugging

of subsequent wells, no additional notice shall be required if

plugging on the project is continuous. If plugging of subsequent

wells is delayed for any reason, notice shall be given to the

2011/90JLW/HB1950A06347	- 36 -

department of continuation of the project. Whether or not a

representative attends, if the well operator has fully complied

with this section, the well operator may proceed, at the time

fixed, to plug the well in the manner prescribed by regulation

of the department. When plugging has been completed, a

certificate shall be prepared, on a form to be furnished by the

department, by two experienced and qualified people who

participated in the work setting 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.--If 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 when

plugging will commence. Notice and the right to be present may

be waived by the department and the coal operator, lessee or

owner, if any. Whether or not representatives of the department

or coal operator, lessee or owner, if any, attend, if the well

operator has fully complied with the requirements of this

section, the well operator may proceed, at the time fixed, to

plug the well in the manner provided by regulation of the

department. The well operator shall prepare the certificate of

plugging and mail copies of the same as provided in subsection

(b).

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

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

registered under section 3213 (relating to well registration and

identification), the department may enter upon the well site and

plug the well and to sell equipment, casing and pipe at the site

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

recover the costs of plugging. The department shall make an

effort to determine ownership of a well which is in operation

but has not been registered and provide written notice to the

owner of pending action under this subsection. If the department

cannot determine ownership 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 those liens to the extent that the cost of plugging

exceeds the sale price. If the amount obtained for casing and

pipe salvaged at the site is inadequate to pay for plugging, the

owner or operator of the abandoned or unregistered well shall be

liable for the additional costs.

(f) Definition.--For purposes of this section, the term

"owner" does not include the owner or possessor of surface real

property, on which an abandoned well is located, who did not

participate or incur costs in and had no right of control over

the drilling or extraction operation of the abandoned well.

§ 3221. Alternative methods.

A well operator may request permission to use a method or

material other than those required by this chapter for casing,

2011/90JLW/HB1950A06347	- 37 -

plugging or equipping a well in an application to the department

which describes the proposed alternative in reasonable detail

and indicates the manner in which it will accomplish the goals

of this chapter. Notice of filing of the application shall be

given by the well operator by certified mail to any affected

coal operators, who may, within 15 days after the notice, file

objections to the proposed alternative method or material. If no

timely objections are filed or raised by the department, the

department shall determine whether to allow use of the proposed

alternative method or material.

§ 3222. Well reporting requirements.

(a) General rule.--Except as provided in subsection (a.1),

each well operator shall file 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,

along with the status of each well, except that in subsequent

years only changes in status must be reported. The Commonwealth

may utilize reported 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.

(a.1) Marcellus Shale formation wells.--Each operator of an

unconventional well shall file with the department, on a form

provided by the department, a semiannual report specifying the

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

The initial report under this subsection shall be filed on or

before August 15, 2010, and shall include production data from

the preceding calendar year and specify the status of each well.

In subsequent reports, only changes in status must be reported.

Subsequent semiannual reports shall be filed with the department

on or before February 15 and August 15 of each year and shall

include production data from the preceding reporting period. The

Commonwealth may utilize reported 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. Beginning November 1,

2010, the department shall make the reports available on its

publicly accessible Internet website. Costs incurred by the

department to comply with the requirements of this subsection

shall be paid out of the fees collected under section 3211(d)

(relating to well permits).

(b) Collection of data.--

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

drilled or altered.

(2) A record containing the information required by the

department shall be filed within 30 days of cessation of

drilling of each well.

(3) A completion report containing any additional

required information shall be filed within 30 days after

completing the well and shall be kept on file by the

2011/90JLW/HB1950A06347	- 38 -

department.

(4) (i) The completion report shall include a

stimulation record. At a minimum, the stimulation record

shall contain pump rates, pressures, total volume used to

stimulate the well, a list of hazardous and other

chemicals used to stimulate the well, volume of water

used, identification of water sources used under a

department-approved water management plan and depth at

which potable aquifers are encountered during drilling.

The well operator may designate specific portions of the

stimulation record as containing a trade secret or

confidential proprietary information. The department

shall prevent disclosure of designated confidential

information to the extent permitted under the act of

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

Know Law.

(ii) The completion report shall identify:

(A) whether methane was encountered in other

than a target formation; and

(B) the country of origin and manufacture of the

steel products used in the construction of the well.

(iii) The completion report shall be kept on file by

the department and posted on the department's publicly

accessible Internet website.

(5) Upon request of the department, the well operator

shall, within 90 days of completion or recompletion of

drilling, submit a copy of any electrical, radioactive or

other standard industry logs which have been run. No

information under this paragraph shall be required unless the

well operator has compiled the information in the ordinary

course of business.

(6) Upon request 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 under this paragraph shall be required unless the

well operator had it compiled in the ordinary course of

business, and interpretation of data under this paragraph is

not required to be filed.

the department prior to commencement of drilling, the well

operator shall collect any additional data specified by the

department, including representative drill cuttings and samples

from cores taken and any other geological information that the

operator reasonably can compile. Interpretation of the data is

not required to be filed.

(d) Retention and filing of data.--Data required under

subsection (b) and drill cuttings required under subsection (c)

shall be retained by the well operator and filed with the

department no more than three years after completion of the

2011/90JLW/HB1950A06347	- 39 -

well. Upon request, the department shall extend the deadline up

to five years from the date of completion of the well. The

department shall be entitled to utilize information collected

under this subsection in enforcement proceedings, in making

designations or determinations under section 1927-A of The

Administrative Code of 1929 and in aggregate form for

statistical purposes.

§ 3223. Notification and effect of well transfer.

The owner or operator of a well shall notify the department

in writing within 30 days, in a form directed by regulation, of

sale, assignment, transfer, conveyance or exchange by or to the

owner of the well. A transfer shall not relieve the well owner

or operator of an obligation accrued under this chapter, nor

shall it relieve the owner or operator of an obligation to plug

the well until the requirements of section 3225 (relating to

bonding) have been met, at which time the transferring owner or

operator shall be relieved from all obligations under this

chapter, including the obligation to plug the well.

§ 3224. Coal operator responsibilities.

(a) General rule.--At any time prior to removing coal or

other underground materials from, 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 within 500 feet of an approved

well location of which the coal operator has knowledge, the coal

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

well operator and the department a copy of the relevant part of

all 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. Thereafter, the coal

operator may proceed with mining operations in the manner

projected on the maps and plans, but the operator may not remove

coal or cut a passageway within 150 feet of the well or approved

well location without written approval under this section. If,

in the opinion of the well operator or the department, the plan

indicates that the proposed pillar is inadequate to protect

either the integrity of the well or public health and safety,

the affected well operator shall attempt to reach an agreement

with the coal operator on a suitable pillar, subject to approval

of the department. Upon failure to agree, the well operator may,

within ten days after receipt of the proposed plan under this

section, file objections under section 3251 (relating to

conferences), indicating the size of the pillar to be left as to

each well. If objections are not timely filed and the department

has none, the department shall grant approval, reciting that

maps and plans have been filed, no objections have been made

thereto and the pillar proposed to be left for each well is

approved in the manner as projected.

(b) Objections.--If an objection is filed by the well

operator or raised by the department, the department shall order

that a conference be held under section 3251 within ten days of

2011/90JLW/HB1950A06347	- 40 -

the filing of objections. At the conference, the coal operator

and the person who has objected shall attempt to agree on a

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

which will satisfy the objections and receive department

approval. If an agreement is reached, the department shall grant

approval to the coal operator, reciting that a plan has been

filed and the pillar to be left for each well is approved

pursuant to the agreement. If an agreement is not reached on a

plan showing the pillar to be left with respect to a well, the

department, by appropriate order, shall determine the pillar to

be left with respect to the well. In a proceeding under this

section, the department shall follow as nearly as is 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 the department may require a

pillar of up to 150 feet in radius if the existence of unusual

conditions is established. Pillars determined by the department

shall be shown on maps or plans on file with the department as

provided in subsection (a), and the department shall approve the

pillar to be left for each well.

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

a size smaller than shown on the plan approved or determined by

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

the department shall:

(1) follow the appropriate procedure under subsection

(a) or (b);

(2) by appropriate order, determine a plan involving a

pillar of a smaller size as to any well covered by the

application; and

(3) grant approval for the pillar to be left with

respect to each well.

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

of the department after notice and opportunity for a hearing

under this section, shall remove coal or cut a passageway so as

to leave a pillar of smaller size, with respect to an oil or gas

well, than that approved by the department under this chapter.

(e) Limitation.--With regard to a coal pillar required by

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

nothing in this chapter shall be construed to:

(1) require a well operator to pay for the coal pillar;

(2) affect a right which a coal operator may have had

prior to April 18, 1985, to obtain payment for the coal

pillar; or

(3) affect a duty or right which a storage operator or

landowner may have had prior to April 18, 1985, to pay or not

pay for the coal pillar.

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

intends to mine through a plugged oil or gas well or otherwise

completely remove any pillar from around that well shall file a

plan under subsection (a) which shall be subject to all of the

2011/90JLW/HB1950A06347	- 41 -

provisions of this section. No coal operator may mine through a

plugged oil or gas well of which he has knowledge until written

approval has been granted by the department in accordance with

this section. The Bureau of Deep Mine Safety in the department

shall have the authority to establish conditions under which the

department may approve a coal operator's plan to mine through a

plugged oil or gas well.

§ 3225. Bonding.

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

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

application for a well permit, and before continuing to

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

shall file with the department a bond covering the well and

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

department. A bond filed with an application for a well

permit shall be payable to the Commonwealth and conditioned

upon the operator's faithful performance of all drilling,

water supply replacement, restoration and plugging

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

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

conditioned upon the operator's faithful performance of all

water supply replacement, restoration and plugging

requirements of this chapter. The amount of the bond required

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

Environmental Quality Board every two years to reflect the

projected costs to the Commonwealth of plugging the well:

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

than 6,000 feet:

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

well; but no bond may be required under this clause

in excess of $35,000.

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

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

but no bond may be required under this clause in

excess of $60,000.

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

but no bond may be required under this clause in

excess of $100,000.

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

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

wells; but no bond may be required under this clause

in excess of $250,000.

(ii) For wells with a total well bore length greater

than 6,000 feet:

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

well; but no bond may be required under this clause

in excess of $60,000.

(B) For operating 26 to 50 wells, $60,000 plus

$10,000 per well for each well in excess of 25 wells;

but no bond may be required under this clause in

2011/90JLW/HB1950A06347	- 42 -

excess of $120,000.

$10,000 per well for each well in excess of 50 wells;

but no bond may be required under this clause in

excess of $180,000.

(D) For operating more than 150 wells, $180,000

plus $10,000 per well for each well in excess of 150

wells; but no bond may be required under this clause

in excess of $250,000.

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

or operator may file a blanket bond for the applicable amount

under paragraph (1), on a form prepared by the department,

covering all of its wells in this Commonwealth, as enumerated

on the bond form.

(3) Liability under the bond shall continue until the

well has been properly plugged in accordance with this

chapter 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. In lieu of a corporate surety, the operator may

deposit with the department:

(i) cash;

(ii) certificates of deposit or automatically

renewable irrevocable letters of credit, from financial

institutions chartered or authorized to do business in

this Commonwealth and regulated and examined by the

Commonwealth or a Federal agency, which may be terminated

at the end of a term only upon 90 days' prior written

notice by the financial institution to the permittee and

the department;

(iii) negotiable bonds of the United States

Government or the Commonwealth, the Pennsylvania Turnpike

Commission, the General State Authority, the State Public

School Building Authority or any municipality within the

Commonwealth; or

(iv) United States Treasury Bonds issued at a

discount without a regular schedule of interest payments

to maturity, otherwise known as Zero Coupon Bonds, having

a maturity date of not more than ten years after the date

of purchase and at the maturity date having a value of

not less than the applicable amount under paragraph (1).

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.

(4) The secretary shall, upon receipt of a deposit of

cash, letters of credit or negotiable bonds, immediately

place the same with the State Treasurer, whose duty it shall

be to receive and hold the same in the name of the

Commonwealth, in trust, for the purpose for which the deposit

2011/90JLW/HB1950A06347	- 43 -

is made.

(5) The State Treasurer shall at all times be

responsible for custody and safekeeping of deposits. The

operator making the 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 that collateral, other collateral of

classes specified in this section 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 they become due and payable.

(6) If negotiable bonds on deposit under this subsection

mature or are called, the State Treasurer, at the request of

the owner of the bonds, shall convert them into other

negotiable bonds, of classes specified in this section,

designated by the owner.

(7) If 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 credit with other

acceptable bond guarantees as provided in this section. If

the owner or operator fails to timely replace the letter of

credit, 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 the

requirements of subsection (a) and section 3223 (relating to

notification and effect of well transfer) have been fully met.

Upon release of bonds and collateral under this section, the

State Treasurer shall immediately return to the owner the

specified amount of cash or securities.

refuses to comply with subsection (a), regulations promulgated

under this chapter or conditions of a permit relating to this

chapter, 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, if the well

owner or operator has deposited cash or securities as collateral

in lieu of a corporate surety, the department shall declare the

collateral forfeited and direct the State Treasurer to pay the

full amount of the funds into the Well Plugging Restricted

Revenue Account or to sell the security to the extent forfeited

and pay the proceeds into the Well Plugging Restricted Revenue

Account. If a corporate surety or financial institution fails to

pay a forfeited bond promptly and in full, the corporate surety

or financial institution shall be disqualified from writing

further bonds under this chapter or any other environmental law

administered by the department. A person aggrieved by reason of

forfeiting the bond or converting collateral, as provided in

this section, shall have a right to appeal to the Environmental

Hearing Board in the manner provided by law. Upon forfeiture of

2011/90JLW/HB1950A06347	- 44 -

a blanket bond for a violation occurring at one or more well

sites, the person whose bond is forfeited shall, within ten days

of the forfeiture, submit a replacement bond to cover all other

wells of which the person is an owner or operator. 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) Alternatives to certain bonds.--The following shall

apply:

(1) An operator of not more than 200 wells who cannot

obtain a bond for a well drilled prior to April 18, 1985, as

required under subsection (a), due to inability to

demonstrate sufficient financial resources may, in lieu of

the bond:

(i) Submit to the department a fee in the amount of

$50 per well, a blanket fee of $500 for ten to 20 wells

or a blanket fee of $1,000 for more than 20 wells, which

shall be a nonrefundable fee paid each year that the

operator has not filed a bond with the department. All

fees collected in lieu of a bond under this subsection

shall be used for the purposes authorized by this

chapter. The Environmental Quality Board shall have the

power, by regulation, to increase the amount of the fees

established under this subsection.

(ii) Make phased deposits of collateral to fully

collateralize the bond, subject to the following:

(A) Payment shall be based on the number of

wells owned or operated. The operator shall make an

initial deposit and make annual deposits in

accordance with the schedule in clause (B). Interest

accumulated by the collateral shall become a part of

the bond until 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 this subsection or

with a bank selected by the department which shall

act as trustee for the benefit of the Commonwealth to

guarantee the operator's compliance with the

drilling, water supply replacement, restoration and

plugging requirements of this chapter. The operator

shall be required to pay all costs of the trust.

(B) An operator of up to ten existing wells who

does not intend to operate additional wells shall

deposit $250 per well and shall, thereafter, annually

deposit $50 per well until the obligations of this

section are fully met. An operator of 11 to 25 wells

or an operator of up to ten wells who applies for one

or more permits for additional wells shall deposit

$2,000 and shall, thereafter, annually deposit $1,150

plus $150 for each additional well to be permitted

that year until the obligations of this section are

fully met. An operator of 26 to 50 wells shall

2011/90JLW/HB1950A06347	- 45 -

deposit $3,000 and shall, thereafter, annually

deposit $1,300 plus $400 for each additional well to

be permitted that year until the obligations of this

section are fully met. An operator of 51 to 100 wells

shall deposit $4,000 and shall, thereafter, annually

deposit $1,500 plus $400 for each additional well to

be permitted that year until the obligations of this

section are fully met. Operators of 101 to 200 wells

shall deposit $8,000 and shall, thereafter, annually

deposit $1,600 plus $1,000 for each additional well

to be permitted that year until the obligations of

this section are fully met. Operators of more than

200 wells shall fully bond their wells immediately.

phased collateral payments or the period of time over

which phased collateral payments shall be made on

behalf of owners or operators who, prior to August 1,

1992, have paid a fee in lieu of bond under

subparagraph (i), and who, by August 1, 1993, choose

to enter the phased collateral program under this

subparagraph rather than continue to make payments in

lieu of bond. Payments made prior to August 1, 1992,

in lieu of bond shall not be credited in any other

manner, and the department shall not be required to

refund the fees. The Environmental Quality Board, by

regulation, may change the annual deposits

established under clause (B) if necessary to

accommodate a change in the amount of the bond

required under this section.

(2) An operator may continue to pay a fee in lieu of

bond or make phased deposits of collateral to fully

collateralize the bond so long as the operator does not miss

a payment under this subsection and remains in compliance

with this chapter. If an operator misses a payment under this

subsection, the operator shall immediately:

(i) submit the appropriate bond amount in full; or

(ii) cease all operations and plug all wells.

(d.1) Individuals.--The following shall apply:

(1) An individual who is unable to obtain a bond to

drill new wells due to 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. The individual shall be limited

to drilling ten new wells per calendar year and, for each

well to be drilled, deposit $500 and make an annual deposit

of 10% of the remaining bond amount for a period of ten

years. Interest accumulated shall become a part of the bond

until the collateral plus accumulated interest equals the

amount of the required bond. The collateral shall be

deposited in trust with the State Treasurer under subsection

(a) or with a bank selected by the department which shall act

2011/90JLW/HB1950A06347	- 46 -

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

chapter. The individual shall pay all costs of the trust.

(2) Individuals may continue to use phased collateral to

obtain permits if they have not missed a payment for a well

drilled under this provision and remain in compliance with

this chapter. If an individual misses a payment, the

individual shall:

(i) immediately submit the appropriate bond amount

in full; or

(ii) cease all operations and plug all wells.

(3) For purposes of this subsection, an "individual"

means a natural person doing business under his own name.

(e) Reservation of remedies.--All remedies violating this

chapter, regulations adopted under this chapter 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 chapter, nor shall the failure be deemed a violation of

this chapter.

§ 3226. Oil and Gas Technical Advisory Board.

(a) Creation of board.--The Oil and Gas Technical Advisory

Board is created, consisting of the following members, all of

whom shall be chosen by the Governor and shall be residents of

this Commonwealth:

(1) Three individuals, each of whom shall be:

(i) a petroleum engineer;

(ii) a petroleum geologist; or

(iii) an experienced driller representative of the

oil and gas industry with three years of experience in

this Commonwealth.

(2) One mining engineer from the coal industry with

three years of experience in this Commonwealth.

(3) One geologist or petroleum engineer with three years

of experience in this Commonwealth, who shall be chosen from

a list of three names submitted by the Citizens Advisory

Council to the Governor and who shall sit as a representative

of the public interest.

(b) Reimbursement.--Board members shall not receive a salary

but shall be reimbursed for all necessary expenses incurred in

the performance of their duties.

majority vote. The board shall meet as called by the secretary,

but not less than semiannually, to carry out its duties under

this chapter. The board shall select a chairman and other

2011/90JLW/HB1950A06347	- 47 -

officers deemed appropriate.

(d) Consultation.--The department shall consult with the

board in the formulation, drafting and presentation stages of

all regulations of a technical nature promulgated under this

chapter. The board shall be given a reasonable opportunity to

review and comment on all regulations of a technical nature

prior to submission to the Environmental Quality Board for

initial consideration. The written report of the board shall be

presented to the Environmental Quality Board with any regulatory

proposal. The chairman of the board shall be invited to

participate in the presentation of all regulations of a

technical nature before the Environmental Quality Board to the

extent allowed by procedures of the Environmental Quality Board.

Nothing herein shall preclude any member of the board from

filing a petition for rulemaking with the Environmental Quality

Board in accordance with procedures established by the

Environmental Quality Board.

SUBCHAPTER C

UNDERGROUND GAS STORAGE

Sec.

3231. Reporting requirements for gas storage operations.

3232. Reporting requirements for coal mining operations.

3233. General gas storage reservoir operations.

3234. Gas storage reservoir operations in coal areas.

3235. Inspection of facilities and records.

3236. Reliance on maps and burden of proof.

3237. Exemptions and prohibitions.

§ 3231. Reporting requirements for gas storage operations.

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

(1) A person injecting into or storing gas in a storage

reservoir underlying or within 3,000 linear feet of a coal

mine operating in a coal seam that extends over the storage

reservoir or reservoir protective area shall, within 60 days,

file with the department a copy of a map and certain data in

the form and manner provided in this subsection or as

otherwise prescribed by regulation of the department.

(2) A person injecting gas into or storing gas in a

storage reservoir which is not under or within 3,000 linear

feet of, but less than 10,000 linear feet from, a coal mine

operating in a coal seam that extends over the storage

reservoir or reservoir protective area shall file the map and

data within 60 days or a longer period set by departmental

regulation.

(3) A person proposing to inject or store gas in a

storage reservoir located as defined in paragraph (1) or (2)

shall file the appropriate required map and data with the

department not less than six months prior to starting the

actual injection or storage.

(4) A map required by this subsection shall be prepared

by a competent engineer or geologist, showing:

(i) the stratum in which the existing or proposed

2011/90JLW/HB1950A06347	- 48 -

storage reservoir is or is proposed to be located;

(ii) the geographic location of the outside

boundaries of the storage reservoir and reservoir

protective area;

(iii) the location of all known oil or gas wells in

the reservoir or within 3,000 linear feet thereof which

have been drilled into or through the storage stratum,

indicating which have been or are to be cleaned out and

plugged or reconditioned for storage along with the

proposed location of all additional wells which are to be

drilled within the storage reservoir or within 3,000

linear feet thereof.

(5) The following, if available, shall be furnished for

all known oil or gas wells which have been drilled into or

through the storage stratum within the storage reservoir or

within 3,000 linear feet thereof: name of the operator, date

drilled, total depth, depth of production if the well was

productive of oil or gas, the initial rock pressure and

volume, the depths at which all coal seams were encountered

and a copy of the driller's log or other similar information.

At the time of the filing of the maps and data, a statement

shall be filed:

(i) detailing efforts made to determine that the

wells shown are accurately located on the map;

(ii) affirming that the wells shown represent, to

the best of the operator's knowledge, all oil or gas

wells which have ever been drilled into or below the

storage stratum within the proposed storage reservoir or

within the reservoir protective area;

(iii) stating whether the initial injection is for

testing purposes;

(iv) stating the maximum pressure at which injection

and storage of gas is contemplated; and

(v) providing a detailed explanation of the methods

to be used or which previously have been used in

drilling, cleaning out, reconditioning and plugging wells

in the storage reservoir or within the reservoir

protective area.

(6) The map and data required to be filed under

paragraph (5) shall be amended or supplemented semiannually

if material changes occur. The department may require a

storage operator to amend or supplement the map or data at

more frequent intervals if material changes have occurred

justifying the earlier filing.

(b) Other reporting requirements.--A person who is injecting

gas into or storing gas in a storage reservoir not at the time

subject to subsection (a), by a process other than that of

secondary recovery or gas recycling, shall, within 60 days, or a

longer period set by departmental regulations, file maps and

data required by departmental regulation and as follows:

(1) A person who, after April 18, 1985, proposes to

2011/90JLW/HB1950A06347	- 49 -

inject or store gas in a storage reservoir in an area not

covered by subsection (a) by a process other than that of

secondary recovery or gas recycling shall file the required

map and data with the department not less than six months

prior to the starting of actual injection or storage.

(2) The map shall be prepared by a competent engineer or

competent geologist and show:

(i) the stratum in which the existing or proposed

storage reservoir is or is to be located;

(ii) the geographic location of the outside

boundaries of the storage reservoir; and

(iii) the location of all known oil or gas wells

within the reservoir, or within 3,000 linear feet

thereof, which have been drilled into or through the

storage stratum, indicating which have been or are to be

cleaned out and plugged or reconditioned for storage and

the proposed location of all additional wells which are

to be drilled within the storage reservoir or within

3,000 linear feet thereof.

(3) The following, if available, shall be furnished for

all known oil or gas wells which have been drilled into or

through the storage stratum within the storage reservoir or

within 3,000 linear feet thereof: name of the operator, date

drilled, total depth, depth of production if the well was

productive of oil or gas, the initial rock pressure and

volume and a copy of the driller's log or other similar

information. At the time of the filing of the maps and data,

a statement shall be filed:

(i) detailing efforts made to determine that the

wells shown are accurately located on the map;

(ii) affirming that the wells shown represent, to

the best of the operator's knowledge, all oil or gas

wells which have ever been drilled into or below the

storage stratum within the proposed storage reservoir;

(iii) stating whether the initial injection is for

testing purposes;

(iv) stating the maximum pressure at which injection

and storage of gas is contemplated; and

(v) providing a detailed explanation of the methods

to be used or which previously have been used in

drilling, cleaning out, reconditioning and plugging wells

in the storage reservoir.

(4) The map and data required to be filed under

paragraph (3) shall be amended or supplemented semiannually

if material changes occur. The department may require a

storage operator to amend or supplement the map or data at

more frequent intervals if material changes have occurred

justifying the earlier filing.

notice to the department of the name of each political

subdivision and county in which the operator maintains and

2011/90JLW/HB1950A06347	- 50 -

operates a gas storage reservoir.

(d) Notice to affected persons.--At the time of the filing

of maps and data and the filing of amended or supplemental maps

or data required by this section, the person filing the

information shall give written notice of the filing to all

persons who may be affected under the provisions of this chapter

by the storage reservoir described in the maps or data. Notices

shall contain a description of the boundaries of the storage

reservoir. When a person operating a coal mine or owning an

interest in coal properties which are or may be affected by the

storage reservoir requests, in writing, a copy of any map or

data filed with the department, the copy shall be furnished by

the storage operator.

(e) Outside boundaries.--For purposes of this chapter, the

outside boundaries of a storage reservoir shall be defined by

the location of those wells around the periphery of the storage

reservoir which had no gas production when drilled in the

storage stratum. The boundaries shall be originally fixed or

subsequently changed if, based on the number and nature of the

wells and the geological and production knowledge of the storage

stratum, its character, permeability, distribution and operating

experience, it is determined in a conference under section 3251

(relating to conferences) that modifications should be made.

(f) Inapplicability of section.--The requirements of this

section shall not apply to the operator of an underground gas

storage reservoir so long as the reservoir is located more than

10,000 linear feet from an operating coal mine, except that the

storage operator shall give notice to the department of the name

of each political subdivision and county in which the operator

maintains and operates a gas storage reservoir. In political

subdivisions and counties where both gas storage reservoirs and

coal mines are being operated, the department may request the

storage operator to furnish maps showing geographical locations

and outside boundaries of the storage reservoirs. The department

shall keep a record of the information and promptly notify the

coal operator and the storage operator when notified by them

that the coal mine and storage reservoir are within 10,000

linear feet of each other.

§ 3232. Reporting requirements for coal mining operations.

(a) General rule.--A person owning or operating a coal mine

shall file with the department a map prepared and sealed by a

competent individual licensed as a professional engineer or

professional land surveyor under the provisions of the act of

May 23, 1945 (P.L.913, No.367), known as the Engineer, Land

Surveyor and Geologist Registration Law, showing the outside

coal boundaries of the operating coal mine, the existing

workings and exhausted areas and the relationship of the

boundaries to identifiable surface properties and landmarks. A

person owning or operating an operating coal mine which has been

penetrated by a well shall furnish a mine map to the department

each year indicating the excavations for the preceding year and

2011/90JLW/HB1950A06347	- 51 -

the projections for the ensuing year. The map required by this

subsection shall be furnished to a person storing or

contemplating the storage of gas in the vicinity of operating

coal mines, upon written request, by the coal operator, and the

person and the department shall thereafter be informed of any

boundary changes at the time the changes occur. The department

shall keep a record of the information and promptly notify the

coal operator and storage operator when notified by them that

the coal mine and the storage reservoir are within 10,000 linear

feet of each other.

(b) Mines near certain reservoirs.--A person owning or

operating any coal mine which is or which comes within 10,000

linear feet of a storage reservoir and where the coal seam being

operated extends over the storage reservoir or reservoir

protective area shall, within 45 days after receiving notice

from the storage operator of that fact, file with the department

and furnish to the person operating the storage reservoir a map

in the form required by subsection (a) showing, in addition to

the requirements of subsection (a), existing and projected

excavations and workings of the operating coal mine for the

ensuing 18-month period and the location of oil or gas wells of

which the coal operator has knowledge. The person owning or

operating the coal mine shall, each six months thereafter, file

with the department and furnish to the person operating the

storage reservoir a revised map showing any additional

excavations and workings, together with the projected

excavations and workings for the then ensuing 18-month period,

which may be within 10,000 linear feet of the storage reservoir.

The department may require a coal operator to file revised maps

at more frequent intervals if material changes have occurred

justifying earlier filing. The person owning or operating the

coal mine shall also file with the department and furnish the

person operating the reservoir prompt notice of any wells which

have been cut into, together with all available pertinent

information.

operating a coal mine who has knowledge that it overlies or is

within 2,000 linear feet of a gas storage reservoir shall,

within 30 days, notify the department and the storage operator

of that fact.

(d) Mines projected to be near storage reservoirs.--When a

person owning or operating a coal mine expects that, within the

ensuing nine-month period, the coal mine will be extended to a

point which will be within 2,000 linear feet of any storage

reservoir, the person shall notify the department and storage

operator in writing of that fact.

(e) New mines.--A person intending to establish or

reestablish an operating coal mine which will be over a storage

reservoir or within 2,000 linear feet of a storage reservoir or

may, within nine months thereafter, be expected to be within

2,000 linear feet of a storage reservoir shall immediately

2011/90JLW/HB1950A06347	- 52 -

notify the department and storage operator in writing. Notice

shall include the date on which the person intends to establish

or reestablish the operating coal mine.

(f) Misdemeanor.--A person who serves notice as required by

this subsection of an intention to establish or reestablish an

operating coal mine, without intending in good faith to

establish or reestablish the mine, is liable for continuing

damages to a storage operator injured by the improper notice and

commits a misdemeanor subject to the penalties of section 3255

(relating to penalties).

§ 3233. General gas storage reservoir operations.

(a) General rule.--A person who operates or proposes to

operate a storage reservoir, except one filled by the secondary

recovery or gas recycling process, shall:

(1) Use every known method which is reasonable under the

circumstances for discovering and locating all wells which

have or may have been drilled into or through the storage

reservoir.

(2) Plug or recondition, as provided in departmental

regulations, all known wells drilled into or through the

storage reservoir, except to the extent otherwise provided in

subsections (b) and (c).

(b) Wells to be plugged.--To comply with subsection (a),

wells which are to be plugged shall be plugged in the manner

specified in section 3220 (relating to plugging requirements).

(b.1) Wells plugged prior to enactment of section.--If a

well located in the storage reservoir area has been plugged

prior to April 18, 1985, and on the basis of data, information

and other evidence submitted to the department, it is determined

that the plugging was done in the manner required by section

3220 or approved as an alternative method under section 3221

(relating to alternative methods) and the plugging is still

sufficiently effective to meet the requirements of this chapter,

the obligations under subsection (a) with regard to plugging the

well shall be considered to have been fully satisfied.

(1) To comply with subsection (a), wells which are to be

reconditioned shall, unless the department by regulation

specifies a different procedure, be cleaned out from the

surface through the storage horizon, and the producing casing

and casing strings determined not to be in good physical

condition shall be replaced with new casing, using the same

procedure as is applicable to drilling a new well under this

chapter. In the case of wells to be used for gas storage, the

annular space between each string of casing and the annular

space behind the largest diameter casing to the extent

possible shall be filled to the surface with cement or

bentonitic mud or a nonporous material approved by the

department under section 3221. At least 15 days prior to

reconditioning, the storage operator shall give notice to the

department, setting forth in the notice the manner in which

2011/90JLW/HB1950A06347	- 53 -

it is planned to recondition the well and any pertinent data

known to the storage operator which will indicate the

condition of the well existing at that time. In addition, the

storage operator shall give the department at least 72 hours'

notice of the time when reconditioning is to begin. If no

objections are raised by the department within ten days, the

storage operator may proceed with reconditioning in

accordance with the plan as submitted. If objections are made

by the department, the department may fix a time and place

for a conference under section 3251 (relating to conferences)

at which the storage operator and department shall endeavor

to agree on a plan to satisfy the objections and meet the

requirements of this section. If no agreement is reached, the

department may, by an appropriate order, determine whether

the plan as submitted meets the requirements of this section

or what changes, if any, are required. If, in reconditioning

a well in accordance with the plan, physical conditions are

encountered which justify or necessitate a change in the

plan, the storage operator may request that the plan be

changed. If the request is denied, the department shall fix a

conference under section 3251 and proceed in the same manner

as with original objections. An application may be made in

the manner prescribed by section 3221 for approval of an

alternative method of reconditioning a well. If a well

located within the storage reservoir was reconditioned, or

drilled and equipped, prior to April 18, 1985, the

obligations imposed by subsection (a), as to reconditioning

the well, shall be considered fully satisfied if, on the

basis of the data, information and other evidence submitted

to the department, it is determined that:

(i) The conditioning or previous drilling and

equipping was done in the manner required in this

subsection, in regulations promulgated under this chapter

or in a manner approved as an alternative method in

accordance with section 3221.

(ii) The reconditioning or previous drilling and

equipping is still sufficiently effective to meet the

requirements of this chapter.

(2) If a well requires emergency repairs, this chapter

shall not be construed to require the storage operator to

give any notice required by this subsection before making the

repairs.

(d) Exception.--The requirements of subsection (a) shall not

apply to injection of gas into a stratum when the sole purpose

of injection, referred to in this subsection as testing, is to

determine whether the stratum is suitable for storage purposes.

Testing shall be conducted only in compliance with the following

requirements:

(1) The person testing or proposing to test shall comply

with section 3231 (relating to reporting requirements for gas

storage operations) and verify the statement required to be

2011/90JLW/HB1950A06347	- 54 -

filed by that section.

(2) The storage operator shall give at least six months'

written notice to the department of the fact that injection

of gas for testing purposes is proposed.

(3) If the department has objections, the department

shall fix a time and place for a conference under section

3251, not more than ten days from the date of notice to the

storage operator, at which time the storage operator and

department shall attempt to resolve the issues presented. If

an agreement cannot be reached, the department may issue an

appropriate order.

(e) Failure to execute lawful order.--In a proceeding under

this chapter, if the department determines that an operator of a

storage reservoir has failed to carry out a lawful order issued

under this chapter, the department may require the operator to

suspend operation of the reservoir and withdraw the gas until

the violation is remedied, in which case the storage operator,

limited by due diligence insofar as existing facilities utilized

to remove gas from the reservoir will permit, shall:

(1) if possible, remove the amount required by the

department to be removed; or

(2) in any event, remove the maximum amount which can be

withdrawn in accordance with recognized engineering and

operating procedures.

(f) Duty of storage reservoir operator.--The following shall

apply:

(1) A person owning or operating a storage reservoir

subject to this chapter shall have a duty to:

(i) Maintain all wells drilled into or through the

reservoir in a condition, and operate them in a manner,

sufficient to prevent the escape of gas.

(ii) Operate and maintain the reservoir and its

facilities as prescribed by departmental regulations and

at a pressure which will prevent gas from escaping, but

the pressure shall not exceed the highest rock pressure

found to have existed during the production history of

the reservoir or another high pressure limit approved by

the department after holding a conference under section

3251 based on geological and production knowledge of the

reservoir, its character, permeability distribution and

operating experience.

(2) The duty under paragraph (1) shall not be construed

to include inability to prevent the escape of gas when gas

escapes as a result of an act of God or a person not under

the control of the storage operator. In that instance, the

storage operator shall have a duty to take action reasonably

necessary to prevent further escape of gas. This paragraph

does not apply to a well which the storage operator failed to

locate and make known to the department.

§ 3234. Gas storage reservoir operations in coal areas.

(a) General rule.--A person operating a storage reservoir

2011/90JLW/HB1950A06347	- 55 -

which underlies or is within 2,000 linear feet of a coal mine

operating in a coal seam that extends over the storage reservoir

or the reservoir protective area shall:

(1) Use every known reasonable method for discovering

and locating all wells which have or may have been drilled

into or through the storage stratum in the acreage lying

within the outside coal boundaries of the operating coal mine

overlying the storage reservoir or the reservoir protective

area.

(2) Plug or recondition, as provided by section 3220

(relating to plugging requirements) and subsection (e), all

known wells, except to the extent provided in subsections

(e), (f), (g) and (h), drilled into or through the storage

stratum and located within the portion of the acreage of the

operating coal mine overlying the storage reservoir or the

reservoir protective area. If an objection is raised as to

use of a well as a storage well and after a conference under

section 3251 (relating to conferences), it is determined by

the department, taking into account all circumstances and

conditions, that the well should not be used as a storage

well, the well shall be plugged unless, in the opinion of the

storage operator, the well may be used as a storage well in

the future, in which case, upon approval of the department

after taking into account all circumstances and conditions,

the storage operator may recondition and inactivate the well

rather than plug it.

(3) The requirements of paragraph (2) shall be deemed to

have been fully complied with if, as the operating coal mine

is extended, all wells which from time to time come within

the acreage described in paragraph (2) are reconditioned or

plugged as provided in section 3220 and subsection (e) or (f)

so that, by the time the coal mine has reached a point within

2,000 linear feet of the wells, they will have been

reconditioned or plugged in accordance with section 3220 and

subsection (e) or (f).

(b) Verified statement.--A person operating a storage

reservoir referred to in subsection (a) shall file with the

department and furnish a copy to the person operating the

affected operating coal mine a verified statement setting forth:

(1) That the map and any supplemental maps required by

section 3231(a) (relating to reporting requirements for gas

storage operations) have been prepared and filed in

accordance with section 3231.

(2) A detailed explanation of what the storage operator

has done to comply with the requirements of subsection (a)(1)

and (2) and the results of those actions.

(3) Such additional efforts, if any, as the storage

operator is making and intends to make to locate all wells.

(4) Any additional wells that are to be plugged or

reconditioned to meet the requirements of subsection (a)(2).

(b.1) Order of department.--If the statement required under

2011/90JLW/HB1950A06347	- 56 -

subsection (b) is not filed by the storage reservoir operator

within the time specified by this chapter or the regulations of

the department, the department may order the operator to file

the statement.

required by this section, the department may direct that a

conference be held in accordance with section 3251 to determine

whether the requirements of section 3231 and subsection (a) have

been fully met. At the conference, if any person believes the

requirements have not been fully met, the parties shall attempt

to agree on additional actions to be taken and the time for

completion, subject to approval of the department. If an

agreement cannot be reached, the department shall make a

determination and, if the department determines any requirements

have not been met, the department shall issue an order

specifying in detail the extent to which the requirements have

not been met and the actions which the storage operator must

complete to meet the requirements. The order shall grant as much

time as is reasonably necessary to fully comply. If the storage

operator encounters conditions not known to exist at the time of

issuance of the order and which materially affect the validity

of the order or the ability of the storage operator to comply

with it, the storage operator may apply for a rehearing or

modification of the order.

(d) Notification.--If, in complying with subsection (a), a

storage operator, after filing the statement provided for in

subsection (b), plugs or reconditions a well, the storage

operator shall notify the department and the coal operator

affected, in writing, setting forth facts indicating the manner

in which the plugging or reconditioning was done. Upon receipt

of the notification, the coal operator or department may request

a conference under section 3251.

(e) Plugging wells.--In order to meet the requirements of

subsection (a), wells which are to be plugged shall be plugged

in the manner specified in regulations promulgated under section

3211 (relating to well permits). When a well located within the

storage reservoir or the reservoir protective area has been

plugged prior to April 18, 1985, and, on the basis of the data

information and other evidence submitted to the department, it

is determined that the plugging was done in the manner required

by section 3220, or in a manner approved as an alternative

method in accordance with section 3221 (relating to alternative

methods), and the plugging is still sufficiently effective to

meet the requirements of this chapter, the requirements of

subsection (a) as to plugging the well shall be considered to

have been fully satisfied.

(f) Reconditioned wells.--The following shall apply:

(1) In order to comply with subsection (a), unless the

department by regulation specifies a different procedure,

wells which are to be reconditioned shall be cleaned out from

the surface through the storage horizon, and the following

2011/90JLW/HB1950A06347	- 57 -

casing strings shall be pulled and replaced with new casing,

using the procedure applicable to drilling a new well under

this chapter:

(i) the producing casing;

(ii) the largest diameter casing passing through the

lowest workable coal seam unless it extends at least 25

feet below the bottom of the coal seam and is determined

to be in good physical condition, but the storage

operator may, instead of replacing the largest diameter

casing, replace the next largest casing string if the

casing string extends at least 25 feet below the lowest

workable coal seam; and

(iii) casing strings determined not to be in good

physical condition.

(2) In the case of a well to be used for gas storage,

the annular space between each string of casing and the

annular space behind the largest diameter casing, to the

extent possible, shall be filled to the surface with cement

or bentonitic mud or an equally nonporous material approved

by the department under section 3221.

(3) At least 15 days before a well is to be

reconditioned, the storage operator shall give notice to the

department and the coal operator, lessee or owner, setting

forth the manner in which reconditioning is planned and

pertinent data known to the storage operator which will

indicate the current condition of the well, along with at

least 72 hours' notice of the date and time when

reconditioning will begin. The coal operator, lessee or owner

shall have the right to file, within ten days after receipt

of the notice, objections to the plan of reconditioning as

submitted by the storage operator. If no objections are filed

and none are raised by the department within ten days, the

storage operator may proceed with reconditioning in

accordance with the plan as submitted. If an objection is

filed or made by the department, the department shall fix a

time and place for a conference under section 3251, at which

conference the storage operator and the person having

objections shall attempt to agree on a plan of reconditioning

that meets the requirements of this section. If no agreement

is reached, the department shall, by an appropriate order,

determine whether the plan as submitted meets the

requirements of this section or what changes should be made

to meet the requirements. If, in reconditioning the well in

accordance with the plan, physical conditions are encountered

which justify or necessitate a change in the plan, the

storage operator or coal operator may request that the plan

be changed. If the parties cannot agree on a change, the

department shall arrange for a conference to determine the

matter in the same manner as set forth in connection with

original objections to the plan.

(4) Application may be made to the department in the

2011/90JLW/HB1950A06347	- 58 -

manner prescribed in section 3221 for approval of an

alternative method of reconditioning a well. When a well

located within the storage reservoir or the reservoir

protective area has been reconditioned or drilled and

equipped prior to April 18, 1985, and, on the basis of the

data, information and other evidence submitted to the

department, the obligations imposed by subsection (a) as to

reconditioning the well shall be considered to be fully

satisfied if it is determined that reconditioning or previous

drilling and equipping:

(i) was done in the manner required in this

subsection, or in regulations promulgated hereunder, or

in a manner approved as an alternative method in

accordance with section 3221; or

(ii) is still sufficiently effective to meet the

requirements of this chapter.

(5) If a well requires emergency repairs, this

subsection shall not be construed to require the storage

operator to give the notices specified herein before making

the repairs.

(g) Producing wells.--If a well located within the reservoir

protective area is a producing well in a stratum below the

storage stratum, the obligations imposed by subsection (a) shall

not begin until the well ceases to be a producing well.

(h) Certain other wells.--If a well within a storage

reservoir or reservoir protective area penetrates the storage

stratum but does not penetrate the coal seam being mined by an

operating coal mine, the department may, upon application of the

operator of the storage reservoir, exempt the well from the

requirements of this section. Either party affected may request

a conference under section 3251 with respect to exemption of a

well covered by this subsection.

(i) Plugging limitation.--In fulfilling the requirements of

subsection (a)(2) with respect to a well within the reservoir

protective area, the storage operator shall not be required to

plug or recondition the well until the storage operator has

received from the coal operator written notice that the mine

workings will, within the period stated in the notice, be within

2,000 linear feet of the well. Upon the receipt of the notice,

the storage operator shall use due diligence to complete the

plugging or reconditioning of the well in accordance with the

requirements of this section and section 3220. If the mine

workings do not, within a period of three years after the well

has been plugged, come within 2,000 linear feet of the well, the

coal operator shall reimburse the storage operator for the cost

of plugging, provided that the well is still within the

reservoir protective area as of that time.

(j) Retreat mining.--If retreat mining approaches a point

where, within 90 days, it is expected that the retreat work will

be at the location of the pillar surrounding an active storage

well, the coal operator shall give written notice to the storage

2011/90JLW/HB1950A06347	- 59 -

operator, and by agreement, the parties shall determine whether

it is necessary or advisable to effectively and temporarily

inactivate the well. The well shall not be reactivated until a

reasonable period, determined by the parties, has elapsed. If

the parties cannot agree as required by this subsection, the

matter shall be submitted to the department for resolution. The

number of wells required to be temporarily inactivated during

the retreat period shall not be of a number that materially

affects efficient operation of the storage pool, except that

this provision shall not preclude temporary inactivation of a

particular well if the practical effect of inactivating it is to

render the pool temporarily inoperative.

(k) Exceptions.--The requirements of subsections (a), (l)

and (m) shall not apply to injection of gas into a stratum when

the whole purpose of injection, referred to in this subsection

as testing, is to determine whether the stratum is suitable for

storage purposes. Testing shall be conducted only in compliance

with the following requirements:

(1) The person testing or proposing to test shall comply

with all provisions and requirements of section 3231 and

verify the statement required to be filed by that section.

(2) If any part of the proposed storage reservoir is

under or within 2,000 linear feet of an operating coal mine

which is operating in a coal seam that extends over the

proposed storage reservoir or the reservoir protective area,

the storage operator shall give at least six months' written

notice to the department and coal operator of the fact that

injection of gas for testing purposes is proposed.

(3) The coal operator affected may at any time file

objections with the department, whereupon the department

shall fix a time and place for a conference under section

3251, not more than ten days from the date of the notice to

the storage operator. At the conference, the storage operator

and the objecting party shall attempt to agree, subject to

approval of the department, on the questions involved. If an

agreement cannot be reached, the department may issue an

appropriate order.

(4) If at any time a proposed storage reservoir being

tested comes under or within 2,000 linear feet of an

operating coal mine because of extension of the storage

reservoir being tested or because of extension or

establishment or reestablishment of the operating coal mine,

the requirements of this subsection shall immediately become

applicable to the testing.

(l) Storage reservoirs near operating coal mines.--A person

who proposes to establish a storage reservoir under or within

2,000 linear feet of a coal mine operating in a coal seam that

extends over the storage reservoir or the reservoir protective

area shall, prior to establishing the reservoir, and in addition

to complying with section 3231 and subsection (a), file the

verified statement required by subsection (b) and fully comply

2011/90JLW/HB1950A06347	- 60 -

with any order of the department in the manner provided under

subsection (b) or (c) before commencing operation of the storage

reservoir. After the person proposing to operate the storage

reservoir complies with the requirements of this subsection and

commences operations, the person shall continue to be subject to

all provisions of this chapter.

(m) Gas storage reservoirs.--If a gas storage reservoir is

in operation on April 18, 1985, and at any time thereafter it is

under or within 2,000 linear feet of an operating coal mine, or

if a gas storage reservoir is put in operation after April 18,

1985, and at any time after storage operations begin it is under

or within 2,000 linear feet of an operating coal mine, the

storage operator shall comply with all of the provisions of this

section, except that:

(1) the time for filing the verified statement under

subsection (b) shall be 60 days after the date stated in the

notice filed by the coal operator under section 3232(d) and

(e) (relating to reporting requirements for coal mining

operations);

(2) the coal operator shall give notice of the delay to

the department;

(3) the department shall, upon the request of the

storage operator, extend the time for filing the statement by

the additional time which will be required to extend or

establish or reestablish the operating coal mine to a point

within 2,000 linear feet of the reservoir;

(4) the verified statement shall also indicate that the

map referred to in section 3231(a) has been currently amended

as of the time of the filing of the statement; and

(5) the person operating the storage reservoir shall

continue to be subject to all of the provisions of this

chapter.

(n) Failure to comply with order.--If, in any proceeding

under this chapter, the department determines that an operator

of a storage reservoir has failed to comply with a lawful order

issued under this chapter, the department may require the

storage operator to suspend operation of the reservoir and

withdraw the gas from it until the violation is remedied, in

which case the storage operator, limited by due diligence

insofar as existing facilities utilized to remove gas from the

reservoir will permit, shall:

(1) if possible, remove the amount required by the

department to be removed; or

(2) in any event, remove the maximum amount which can be

withdrawn in accordance with recognized engineering and

operating procedures.

(o) Prevention of escape of gas.--In addition to initial

compliance with other provisions of this chapter and lawful

orders issued under this chapter, it shall be the duty, at all

times, of a person owning or operating a storage reservoir

subject to this chapter to keep all wells drilled into or

2011/90JLW/HB1950A06347	- 61 -

through the storage stratum in a condition, and operate the

wells in a manner, which is designed to prevent the escape of

gas out of the storage reservoir and its facilities, and to

operate and maintain the storage reservoir and its facilities in

the manner prescribed by regulation of the department and at a

pressure that will prevent gas from escaping from the reservoir

or its facilities. This duty shall not be construed to include

inability to prevent the escape of gas when escape results from

an act of God or a person not under the control of the storage

operator, except that this exception does not apply to a well

which the storage operator has failed to locate and make known

to the department. If an escape of gas results from an act of

God or a person not under the control of the storage operator,

the storage operator shall be under the duty to take any action

reasonably necessary to prevent further escape of gas out of the

storage reservoir and its facilities.

§ 3235. Inspection of facilities and records.

(a) General rule.--The person operating a storage reservoir

affected by this chapter shall, at all reasonable times, be

permitted to inspect applicable records and facilities of a coal

mine overlying the storage reservoir or reservoir protective

area. The person operating a coal mine affected by this chapter

shall, at all reasonable times, be permitted to inspect

applicable records and facilities of a storage reservoir

underlying the coal mine.

(b) Order.--If a storage operator or coal operator subject

to subsection (a) refuses to permit inspection of records or

facilities, the department may, on its own motion or on

application of the party seeking inspection, after reasonable

written notice and a hearing if requested by an affected party,

order inspection.

§ 3236. Reliance on maps and burden of proof.

(a) General rule.--In determining whether a coal mine or

operating coal mine is or will be within a particular distance

from a storage reservoir which is material under this chapter,

the owner or operator of the coal mine and the storage operator

may rely on the most recent map of the storage reservoir or coal

mine filed by the other party with the department.

(b) Accuracy.--Where accuracy of a map or data filed under

this chapter is in issue, the person that filed the map or data

shall:

(1) at the request of an objecting party, disclose the

information and method used to compile the map or data, along

with any information available to the person that might

affect current validity of the map or data; and

(2) have the burden of proving accuracy of the map or

data.

§ 3237. Exemptions and prohibitions.

(a) Inapplicability of chapter to certain coal mines.--This

chapter shall not apply to the following types of coal mines:

(1) Strip mines and auger mines operating from the

2011/90JLW/HB1950A06347	- 62 -

surface.

(2) Mines to which the former act of June 9, 1911

(P.L.756, No.319), entitled "An act to provide for the health

and safety of persons employed in and about the bituminous

coal-mines of Pennsylvania, and for the protection and

preservation of property connected therewith," did not apply

in accordance with section 3 of that act.

(3) Mines to which the former act of June 2, 1891

(P.L.176, No.177), entitled "An act to provide for the health

and safety of persons employed in and about the anthracite

coal mines of Pennsylvania and for the protection and

preservation of property connected therewith," did not apply

in accordance with section 32 of that act.

(b) Workable coal seams.--Injection of gas for storage

purposes in a workable coal seam, whether or not it is being or

has been mined, is prohibited.

(b.1) Original extraction.--Nothing in this chapter

prohibits original extraction of natural gas, crude oil or coal.

applies to storage of gas or liquids in storage reservoirs

excavated in rock formations specifically for storage purposes.

SUBCHAPTER D

EMINENT DOMAIN

Sec.

3241. Appropriation of interest in real property.

§ 3241. Appropriation of interest in real property.

(a) General rule.--Except as provided in this subsection, a

corporation empowered to transport, sell or store natural gas or

manufactured gas in this Commonwealth may appropriate an

interest in real property located in a storage reservoir or

reservoir protective area for injection, storage and removal

from storage of natural gas or manufactured gas in a stratum

which is or previously has been commercially productive of

natural gas. The right granted by this subsection shall not be

exercised to acquire any of the following for the purpose of gas

storage:

(1) An interest in a geological stratum within the area

of a proposed storage reservoir or reservoir protective area:

(i) unless the original recoverable oil or gas

reserves in the proposed storage reservoir have been

depleted or exhausted by at least 80%; and

(ii) until the condemnor has acquired the right, by

grant, lease or other agreement, to store gas in the

geological stratum underlying at least 75% of the area of

the proposed storage reservoir.

(2) An interest in a geological stratum within the area

of a proposed storage reservoir or reservoir protective area

owned directly or indirectly by a gas company or other person

engaged in local distribution of natural gas, if the interest

to be acquired is presently being used by the gas company or

other person for storage of gas in performance of service to

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customers in its service area.

(b) Construction.--The following shall apply:

(1) This chapter authorizes appropriation within a

storage reservoir or reservoir protective area of the

following:

(i) a stratum to be used for storage;

(ii) any gas reserve remaining a stratum to be used

for storage;

(iii) an active or abandoned well or wells drilled

into a stratum to be used for storage; and

(iv) the right to enter upon and use the surface of

lands to:

(A) locate, recondition, maintain, plug or

replug an active or abandoned well; or

(B) operate a well drilled into or through a

stratum to be used for storage.

(2) This chapter does not preclude the owner of

nonstorage strata from drilling wells to produce oil or gas

from a stratum above or below the storage stratum

appropriated by another person, but a person appropriating or

holding storage rights may access, inspect and examine the

drilling, the completed well, drilling logs and other records

relating to drilling, equipping or operating the well in

order to determine whether the storage stratum is being

adequately protected to prevent escape of gas stored therein.

(3) This chapter does not authorize appropriation of a

coal or coal measure, regardless of whether it is being

mined, or an interest in the coal mine or coal measure.

drilling, operating, using or plugging a well through a stratum

appropriated under this chapter shall drill, case, equip,

operate or plug it in a manner designed to prevent avoidable

escape of gas that may be stored in the storage stratum. Upon

violation of this subsection, the court of common pleas of the

county where the land in question is situated may compel

compliance by injunction or grant other appropriate relief in an

action brought by the person storing gas in the storage stratum.

(d) Prerequisites to appropriation.--Before appropriating

under this chapter, a person shall attempt to agree with owners

of interests in the real property involved as to damages payable

for rights and interests to be appropriated, if the owners can

be found and are sui juris. If the parties fail to agree, the

person shall tender a surety bond to the owners to secure them

in the payment of damages. If the owners refuse to accept the

bond, cannot be found or are not sui juris, and after reasonable

notice to the owners by advertisement or otherwise, the bond

shall be presented for approval to the court of common pleas of

the county in which the tract of land is situated. Upon the

approval of the bond by the court, the right of the person to

appropriate in accordance with the provisions of this chapter

shall be complete.

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(e) Appointment of viewers.--Upon petition of a property

owner or a person appropriating under this chapter, the court

shall:

(1) appoint three disinterested freeholders of the

county to serve as viewers to assess damages to be paid to

the property owner for the rights appropriated;

(2) fix a time for the parties to meet;

(3) provide notice to the parties; and

(4) after the viewers have filed their report, fix

reasonable compensation for the service of the viewers.

(f) Appeal.--Within 20 days after the filing of a report by

viewers appointed under subsection (e), a party may appeal and

proceed to a jury trial as in ordinary cases.

(g) Requirements.--Nothing in this section shall relieve a

person operating a storage reservoir from the requirements of

this chapter.

SUBCHAPTER E

ENFORCEMENT AND REMEDIES

Sec.

3251. Conferences.

3252. Public nuisances.

3253. Enforcement orders.

3254. Restraining violations.

3254.1. Well control emergency response cost recovery.

3255. Penalties.

3256. Civil penalties.

3257. Existing rights and remedies preserved and cumulative

remedies authorized.

3258. Inspection and production of materials, witnesses,

depositions and rights of entry.

3259. Unlawful conduct.

3260. Collection of fines and penalties.

3261. Third party liability.

3262. Inspection reports.

§ 3251. Conferences.

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

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

time, request that a conference be held to discuss and attempt

to resolve by mutual agreement a matter arising under this

chapter. Unless otherwise provided, conferences shall be held

within 90 days after a request is received by the department,

and notice 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

chapter and, if approved by the department, it shall be reduced

to writing and shall be effective, unless reviewed and rejected

by the department within ten days after the conference. The

record of an agreement approved by the department shall be kept

on file by the department and copies shall be furnished to the

parties. The scheduling of a conference shall have no effect on

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the department's authority to issue orders to compel compliance

with this chapter.

(b) Notification.--When a coal operator is to be notified of

a proceeding under this section, the department simultaneously

shall send a copy of the notice to the collective bargaining

representative of employees of the coal operator.

§ 3252. Public nuisances.

A violation of section 3215.1 (relating to general

restrictions), 3216 (relating to well site restoration), 3217

(relating to protection of fresh groundwater and casing

requirements), 3218 (relating to protection of water supplies),

3219 (relating to use of safety devices) or 3220 (relating to

plugging requirements), or a rule, regulation, order, term or

condition of a permit relating to any of those sections

constitutes a public nuisance.

§ 3253. Enforcement orders.

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

enforcement of this chapter. An order issued under this chapter

shall take effect upon notice, unless the order specifies

otherwise. The power of the department to issue an order under

this chapter is in addition to any other remedy available to the

department under this chapter or under any other law.

(b) Suspension and revocation.--The department may suspend

or revoke a well permit or well registration for any well in

continuing violation of this chapter, the act of June 22, 1937

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

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

Management Act; any other statute administered by the

department; or a rule or regulation. A suspension order of the

department shall automatically terminate if the violation upon

which it is based is corrected by the operator to the

satisfaction of the department in order to bring the well into

compliance with this chapter.

well permit or registration, the department shall serve written

notice on the well operator or its agent, stating specifically

the statutory provision, rule, regulation or other reason relied

upon, along with factual circumstances surrounding the alleged

violation.

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

immediate cessation of drilling operations shall be effective

only if authorized by the secretary or a designee.

(e) Grievances.--A person aggrieved by a department order

issued under this section shall have the right, within 30 days

of receipt of the notice, to appeal to the Environmental Hearing

Board.

§ 3254. Restraining violations.

(a) General rule.--In addition to any other remedy provided

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

in the name of the Commonwealth for an injunction to restrain a

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violation of this chapter or rules, regulations, standards or

orders adopted or issued under this chapter and to restrain the

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 chapter, or

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 proceeding. In addition to an

injunction, the court in equity may level civil penalties as

specified in section 3256 (relating to civil penalties).

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

this chapter, 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 chapter or rules and regulations promulgated under this

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

chapter shall be deemed concurrent. Existence or exercise of one

remedy shall not prevent the department from exercising another

remedy at law or in equity.

(d) Jurisdiction.--Actions 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

actions under this section.

§ 3254.1. Well control emergency response cost recovery.

A person liable for a well control emergency is responsible

for all response costs incurred by the department to respond to

the well control emergency. In an action before a court of

competent jurisdiction, the department may recover all its

response costs, including the cost of regaining control of the

well, controlling the perimeter of the well site, preparing

water sprays, establishing trenches or dikes to capture runoff

fluids and providing the resources and equipment needs for the

incident.

§ 3255. Penalties.

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

this chapter commits a summary offense and, upon conviction,

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

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

which the violation continues is a separate and distinct

offense.

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

provision of this chapter or an order of the department issued

under this chapter commits a misdemeanor and, upon conviction,

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

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

which the violation continues is a separate and distinct

offense.

2011/90JLW/HB1950A06347	- 67 -

against any person or municipality for a violation of this

chapter.

§ 3256. Civil penalties.

In addition to other remedies available at law or in equity

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

department or a departmental order, the department, after a

hearing, may assess a civil penalty regardless of whether the

violation was willful. The penalty shall not exceed $50,000 plus

$2,000 for each day during which the violation continues. In

determining the amount, the department shall consider

willfulness of the violation, damage or injury to natural

resources of this Commonwealth or their uses, endangerment of

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

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

other relevant factor. When the department proposes to assess a

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

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

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

file an appeal of the assessment with the Environmental Hearing

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

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

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

be payable to the Commonwealth and collectible in any manner

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

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

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

favor of the Commonwealth on the real and personal property of

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

docketed of record by the prothonotary of the county where the

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

the prothonotaries of the various counties certified copies of

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

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

index them as judgments are indexed, without requiring payment

of costs as a condition precedent to entry.

§ 3257. Existing rights and remedies preserved and cumulative

remedies authorized.

Nothing in this chapter estops the Commonwealth or a district

attorney from proceeding in a court of law or in equity to abate

pollution forbidden under this chapter or a nuisance under

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

chapter to provide additional and cumulative remedies to control

activities related to drilling for, or production of, oil and

gas in this Commonwealth, and nothing contained in this chapter

abridges or alters rights of action or remedies existing, or

which existed previously, in equity or under common or statutory

law, criminal or civil. Neither this chapter, the grant of a

permit under this chapter nor an act done by virtue of this

chapter estops the Commonwealth, in exercising rights under

common or decisional law or in equity, from suppressing a

nuisance, abating pollution or enforcing common law or statutory

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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

any person on grounds that the nuisance constitutes air or water

pollution.

§ 3258. Inspection and 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 chapter to

determine compliance with this chapter. For this purpose, the

duly authorized agents and employees of the department may at

all reasonable times enter and examine any involved property,

facility, operation or activity.

(a.1) Preoperation inspections.--The operator may not

commence drilling activities until the department has conducted

an inspection of the unconventional well site after the

installation of erosion and sediment control measures. The

department may conduct follow-up inspections of well sites and

related activities to determine compliance with the act.

(b) Access.--The owner, operator or other person in charge

of a property, facility, operation or activity under this

chapter, upon presentation of proper identification and purpose

either for inspection or to remediate or otherwise respond to a

well control emergency, by agents or employees of the

department, shall provide free and unrestricted entry and

access. Upon refusal, the agent or employee may obtain a search

warrant or other suitable order authorizing entry and

inspection, remediation or response. It shall be sufficient to

justify issuance of a search warrant authorizing examination and

inspection if:

(1) there is probable cause to believe that the object

of the investigation is subject to regulation under this

chapter; and

(2) access, examination or inspection is necessary to

enforce the provisions of this chapter.

department may subpoena witnesses, administer oaths, examine

witnesses, take testimony and compel production of books,

records, maps, plats, papers, documents and other writings

pertinent to proceedings or investigations conducted by the

department under this chapter. Upon refusal to obey a subpoena

by any person and on application of the department, a court may

enforce a subpoena in contempt proceedings. Fees for serving a

subpoena shall be the same as those paid to sheriffs for similar

services.

(d) Deposition.--The department or a party to a proceeding

before the department may cause the deposition of a witness who

resides in or outside of this Commonwealth to be taken in the

manner prescribed by law for taking depositions in civil

actions.

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

shall be paid the same fees as are paid to witnesses in courts

of record of general jurisdiction. Witnesses whose depositions

are taken under this chapter, and the officers taking those

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

for like services in court.

(f) Purchasers.--Upon request, a purchaser of oil or gas

shall provide the department information necessary to determine

ownership of facilities from which the purchaser obtained oil or

gas. The information shall be kept confidential for a period of

five years, and the department may utilize it in enforcement

proceedings. The department may request information under this

section only when a well does not comply with section 3211(h)

(relating to well permits).

§ 3259. Unlawful conduct.

It shall be unlawful for any 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 chapter or in violation of rules or

regulations adopted under this chapter, orders of the

department or a term or condition of a permit issued by the

department.

(2) Conduct an activity related to drilling for, or

production of, oil and gas:

(i) contrary to this chapter, rules or regulations

adopted under this chapter, an order of the department or

a term or condition of a permit issued by the department;

(ii) in any manner as to create a public nuisance or

adversely affect public health, safety, welfare or the

environment.

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

employee of the department acting in the course of lawful

performance of a duty under this chapter, 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 abandonment of a well by removal of casing or

equipment necessary for production without plugging the well

in the manner prescribed under section 3220 (relating to

plugging requirements), except that the owner or operator of

a well may temporarily remove casing or equipment necessary

for production, but only if it is part of the normal course

of production activities.

§ 3260. Collection of fines and penalties.

Fines and penalties shall be collectible in a manner provided

by law for collection of debts. If a person liable 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 on the person's property,

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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 transmit to prothonotaries of the

various counties certified copies of all judgments, and it shall

be the duty of each prothonotary to enter and docket them 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.

§ 3261. Third party liability.

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

product to a well or well site, that person is jointly and

severally liable with the well owner or operator for violations

of this chapter arising out of and caused by the person's

actions at the well or well site.

§ 3262. Inspection reports.

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.

SUBCHAPTER F

MISCELLANEOUS PROVISIONS

Sec.

3271. Well plugging funds.

3272. Local ordinances.

3273. Effect on department authority.

3273.1. Relationship to solid waste and surface mining.

3274. Regulatory authority.

§ 3271. Well plugging funds.

(a) Appropriation.--Fines, civil penalties and permit and

registration fees collected under this chapter are appropriated

to the department to carry out the purposes of this chapter.

(b) Surcharge.--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

3211 (relating to well permits) for new wells. Money collected

as a result of the surcharge shall be paid into a restricted

revenue account in the State Treasury to be known as the

Abandoned Well Plugging Fund and expended by the department to

plug abandoned wells threatening the health and safety of

persons or property or pollution of waters of this Commonwealth.

(1) A restricted revenue account to be known as the

Orphan Well Plugging Fund is created. 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 3211

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for new wells. The surcharges shall be placed in the Orphan

Well Plugging Fund and 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) The department shall study its experience in

implementing this section and shall report its findings to

the Governor and the General Assembly by August 1, 1992. The

report shall contain information relating to the balance of

the fund, number of wells plugged, number of identified wells

eligible for plugging and recommendations as to alternative

funding mechanisms.

(3) Expenditures by the department for plugging orphan

wells are limited to fees collected under this chapter. No

money from the General Fund shall be expended for this

purpose.

§ 3272. 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 chapter are superseded by

this chapter. No ordinances or enactments adopted under the

Pennsylvania Municipalities Planning Code or the Flood Plain

Management Act may contain provisions which impose conditions,

requirements or limitations on the same features of oil and gas

well operations regulated by this chapter or that accomplish the

same purposes as set forth in this chapter. The Commonwealth, by

this chapter, preempts and supersedes the regulation of oil

wells and gas wells.

§ 3273. Effect on department authority.

This chapter does not affect, limit or impair any 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

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; or the

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

Management Act.

§ 3273.1. Relationship to solid waste and surface mining.

(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 any 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 wells which is located on the well

site, shall be considered to have been satisfied if the owner or

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operator of the well meets the following conditions:

(1) the well is permitted under the requirements of

section 3211 (relating to well permits) or registered under

section 3213 (relating to well registration and

identification);

(2) the owner or operator has satisfied the financial

security requirements of section 3215 (relating to well

location restrictions) by obtaining a surety or collateral

bond for the well and well site; and

(3) the owner or operator maintains compliance with this

chapter and applicable regulations of the Environmental

Quality Board.

(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 a rule or

regulation promulgated thereunder, for any borrow area where

minerals are extracted solely for the purpose of oil and gas

well development, including access road construction, shall be

considered to have been satisfied if the owner or operator of

the well meets the conditions imposed under subsection (a)(1)

and (2) and maintains compliance with this chapter and

applicable regulations of the Environmental Quality Board.

diminish or otherwise affect duties or obligations of an owner

or operator under the Solid Waste Management Act. This section

does 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, 90 Stat. 2795, 42

U.S.C. § 6901 et seq.).

(d) Definition.--As used in this section and sections 3216

(relating to well site restoration) and 3225 (relating to

bonding), the term "well site" means areas occupied by all

equipment or facilities necessary for or incidental to drilling,

production or plugging a well.

§ 3274. Regulatory authority.

(a) Existing regulations.--The rulemaking for 25 Pa. Code

Ch. 78 (relating to oil and gas wells) promulgated at 41 Pa.B.

805 (February 5, 2011), shall apply only to unconventional gas

wells.

(b) New regulations.--The Environmental Quality Board shall

adopt regulations to implement this chapter.

CHAPTER 33

LOCAL ORDINANCES RELATING TO

OIL AND GAS OPERATIONS

Sec.

3301. Scope of chapter.

3302. Definitions.

3303. Local ordinances.

3304. Review by Attorney General.

3305. Civil actions.

3306. Commonwealth Court masters.

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3307. Attorney fees and costs.

3308. Sanction.

3309. Provisions of local ordinances.

3310. Applicability.

§ 3301. Scope of chapter.

The purposes of this chapter are to:

(1) Allow municipalities to efficiently regulate oil and

gas operations consistent with their authority under the act

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

Municipalities Planning Code.

(2) Foster the expeditious and efficient handling of

municipal oil and gas procedures.

(3) Clarify the role of all Federal and State agencies

and municipal governments with regard to oil and gas

development activities.

§ 3302. Definitions.

The following words and phrases when used in this chapter

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

context clearly indicates otherwise:

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

which individuals live or customarily work.

"Environment acts." All statutes enacted by the Commonwealth

relating to the protection of the environment or the protection

of public health, safety and welfare, that are administered and

enforced by the department or by another Commonwealth agency,

including an independent agency, and all Federal statutes

relating to the protection of the environment, to the extent

those statutes regulate oil and gas operations.

"Local government." A county, city, borough, incorporated

town or township of this Commonwealth.

"Local ordinance." An ordinance adopted by a local

government that regulates oil and gas operations.

"MPC." The act of July 31, 1968 (P.L.805, No.247), known as

the Pennsylvania Municipalities Planning Code.

"Oil and gas operations." The term includes the following:

(1) well location assessment, including seismic

operations, well site preparation, construction, drilling,

hydraulic fracturing and site restoration associated with an

oil or gas well of any depth;

(2) water and other fluid storage or impoundment areas

used exclusively for oil and gas operations;

(3) construction, installation, use, maintenance and

repair of:

(i) oil and gas pipelines;

(ii) natural gas compressor stations; and

(iii) natural gas processing plants or facilities

performing equivalent functions; and

(4) construction, installation, use, maintenance and

repair of all equipment directly associated with activities

specified in paragraphs (1), (2) and (3), to the extent that:

(i) the equipment is necessarily located at or

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immediately adjacent to a well site, impoundment area,

oil and gas pipeline, natural gas compressor station or

natural gas processing plant; and

(ii) the activities are authorized and permitted

under the authority of a Federal or Commonwealth agency.

"Permitted use." A use which, upon submission of notice to

and receipt of a permit issued by a zoning officer or equivalent

official, is authorized to be conducted without restrictions

other than those set forth in section 3309 (relating to

provisions of local ordinances).

§ 3303. Local ordinances.

(a) General rule.--A local ordinance may only be enacted

pursuant to the MPC, the act of March 31, 1927 (P.L.98, No.69),

referred to as the Second Class City Zoning Law, or the act of

October 4, 1978 (P.L.851, No.166), known as the Flood Plain

Management Act, as applicable, and shall provide for the

reasonable development of minerals within the local government

in accordance with the provisions of section 603(i) of the MPC

and this chapter.

(b) Limitation.--Except as provided in this chapter, a local

ordinance shall not conflict with and shall not regulate oil and

gas operations covered by the environment acts, except to the

extent that the environment acts provide the authority.

construed to impair or infringe on the preemption provisions of

section 3272 (relating to local ordinances).

§ 3304. Review by Attorney General.

(a) Request of owner or operator.--An owner or operator of

an oil and gas operation, or any person having the right to

royalty payments under a lease of oil or gas mineral rights, may

request the Attorney General to review a local ordinance to

determine whether it allows for the reasonable development of

oil and gas resources in accordance with the provisions

specifically addressed in this chapter, the MPC and judicial

decisions of the Commonwealth.

(b) Preenactment review.--A local government may, prior to

the enactment of a local ordinance, request the Attorney General

to review the ordinance to determine whether it allows for the

reasonable development of oil and gas resources in accordance

with the provisions of Chapter 32 (relating to development), the

MPC and judicial decisions of the Commonwealth.

request under subsection (a) or (b), the Attorney General shall

advise in writing the person that made the request whether or

not the Attorney General determines that the local ordinance

provides for the reasonable development of oil and gas reserves

and provide a copy of the written determination to the affected

local government.

§ 3305. Civil actions.

(a) Attorney General.--The Attorney General may bring an

action against a local government in Commonwealth Court to

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invalidate or enjoin the enforcement of a local ordinance that

does not allow for the reasonable development of oil and gas

resources.

(b) Private right of action.--

(1) Notwithstanding any provision of 42 Pa.C.S. Ch. 85

Subch. C (relating to actions against local parties), any

person who is aggrieved by the enactment or enforcement of a

local ordinance that does not allow for the reasonable

development of oil and gas resources in accordance with the

provisions of section 3272 (relating to local ordinances) may

bring an action in Commonwealth Court to invalidate the

ordinance or enjoin its enforcement.

(2) An aggrieved person may proceed without first

obtaining review of the ordinance by the Attorney General or

may proceed after receiving such review if the Attorney

General determines that the ordinance fails to comply with

this chapter but declines to bring an action under subsection

(a).

(3) In an action brought relating to the enactment or

enforcement of a local ordinance, the determination of the

Attorney General made under section 3304 (relating to review

by Attorney General) shall become part of the record before

the court.

§ 3306. Commonwealth Court masters.

(a) General rule.--The Commonwealth Court may promulgate

rules for the selection and appointment of masters on a full-

time or part-time basis to oversee actions brought under section

3305 (relating to civil actions). A master must be a member of

the bar of this Commonwealth. The number and compensation of

masters shall be fixed by the Commonwealth Court, and their

compensation shall be paid by the Commonwealth.

(b) Procedure.--

(1) The Commonwealth Court may direct that a hearing in

an action brought under section 3305 be conducted in the

first instance by the master in the manner provided for in

this section.

(2) Upon the conclusion of a hearing before a master,

the master shall transmit written findings and

recommendations for disposition to the president judge.

Prompt written notice and copies of the findings and

recommendations shall be given to the parties to the

proceeding.

(3) The findings and recommendations of the master shall

become the findings and order of the Commonwealth Court upon

written confirmation by the president judge. A rehearing may

be ordered by the president judge at any time upon cause

shown.

§ 3307. Attorney fees and costs.

In an action brought under section 3305 (relating to civil

actions), the court may do any of the following:

(1) If the court determines that the local government

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enacted or enforced a local ordinance with willful or

reckless disregard for the limitation of authority

established under State law, it may order the local

government to pay the plaintiff reasonable attorney fees and

other reasonable costs incurred by the plaintiff in

connection with the action.

(2) If the court determines that the action brought by

the plaintiff was frivolous or was brought without

substantial justification in claiming that the local

ordinance in question was contrary to the requirements of

this chapter or Chapter 32 (relating to development), it may

order the plaintiff to pay the local government reasonable

attorney fees and other reasonable costs incurred by the

local government in defending the action.

§ 3308. Sanction.

If the Attorney General, the Commonwealth Court or the

Supreme Court determines that a local ordinance fails to provide

for the reasonable development of oil and gas resources, the

local government enacting or enforcing the local ordinance shall

be immediately ineligible to receive any funds collected under

Chapter 23 (relating to drilling impact fee). The local

government shall remain ineligible to receive funds under

Chapter 23 until the local government amends or repeals its

local ordinance in accordance with this chapter.

§ 3309. Provisions of local ordinances.

In order to allow for the reasonable development of oil and

gas resources, a local ordinance must, in addition to complying

with this chapter, Chapter 32 (relating to development), the MPC

and judicial decisions of the Commonwealth:

(1) Allow well and pipeline location assessment

operations, including seismic operations and related

activities conducted in accordance with all applicable

Federal and State laws and regulations relating to the

storage and use of explosives throughout every local

government.

(2) Impose conditions, requirements or limitations on

oil and gas operations that are no more stringent than

similar conditions, requirements or limitations imposed on

construction activities for other land development within the

zoning district where the oil and gas operations are

situated.

(3) Impose conditions, requirements or limitations on

the height of permanent structures, setbacks from property

lines, screening and fencing, lighting and noise relating to

oil and gas operations that are no more stringent than

similar conditions, requirements or limitations imposed on

industrial uses or what is allowed within the particular

zoning district within the local government where the oil and

gas operations are situated or stipulated in or set forth in

State statute or regulations pertaining to oil and gas

operations.

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(4) Have a review period for permitted uses that does

not exceed 30 days for complete submissions or that exceeds

120 days for conditional uses.

(5) Authorize oil and gas operations, other than

activities in or at impoundment areas, compressor stations

and processing plants, as a permitted use in all zoning

districts.

(5.1) Notwithstanding section 3215 (relating to well

location restrictions) the oil and gas operations under

paragraph (5) may be prohibited, or permitted only as a

conditional use within a residential district where a well

site cannot be placed so that the wellhead is at least 500

feet from any existing building. In a residential district,

all of the following apply:

(i) A well site may not be located so that the outer

edge of the well pad is closer than 300 feet from an

existing building.

(ii) Except as set forth in paragraph (5) and in

this paragraph, oil and gas operations, other than the

placement, use and repair of oil and gas pipelines, water

pipelines, access roads or security facilities, may not

take place within 300 feet of an existing building.

(6) Authorize impoundment areas used for oil and gas

operations as a permitted use in all zoning districts,

provided that the edge of any impoundment area shall not be

located closer than 300 feet from an existing building.

(7) Authorize natural gas compressor stations as a

permitted use in agriculture and industrial zoning districts

and as a conditional use in all other zoning districts, if

the natural gas compressor building meets the following

conditions:

(i) is located 750 feet or more from the nearest

existing building or 200 feet from the nearest lot line,

whichever is greater, unless waived by the owner of the

building or adjoining lot; and

(ii) does not exceed a noise standard of 60dbA at

the nearest property line or the applicable standard

imposed by Federal law, whichever is lesser.

(8) Authorize natural gas processing plants as a

permitted use in an industrial zoning district and as

conditional uses in agricultural zoning districts, if the

natural gas processing plant buildings meet the following

conditions:

(i) Unless there is a waiver by the owner of the

building or adjoining lot, the natural gas processing

plant building is located at the greater of:

(A) at least 750 feet from the nearest existing

building; or

(B) at least 200 feet from the nearest lot line.

(ii) The noise level of the natural gas processing

plant at the property line does not exceed the lesser of:

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(A) a noise standard of 60dbA; or

(B) the applicable standard imposed by Federal

law.

(9) Impose restrictions on vehicular access routes for

overweight vehicles only as authorized under 75 Pa.C.S.

(relating to vehicles) or the MPC.

(10) Does not attempt to impose limits or conditions on

subterranean operations or hours of operation.

§ 3310. Applicability.

This chapter shall apply to the enforcement of local

ordinances existing on the date of this section and to the

enactment or enforcement of local ordinances enacted on or after

the effective date of this chapter.

Section 3. The addition of 27 Pa.C.S. Ch. 33 Subch. B is a

continuation of the former act of December 15, 1955 (P.L.865,

No.256), entitled "An act requiring rents and royalties from oil

and gas leases of Commonwealth land to be placed in a special

fund to be used for conservation, recreation, dams and flood

control; authorizing the Secretary of Forests and Waters to

determine the need for and location of such projects and to

acquire the necessary land." The following apply:

(1) Except as otherwise provided in 27 Pa.C.S. Ch. 33

Subch. B, all activities initiated under the former act of

December 15, 1955 (P.L.865, No.256) shall continue and remain

in full force and effect and may be completed under 27

Pa.C.S. Ch. 33 Subch. B. Resolutions, orders, regulations,

rules and decisions which were made under the former act of

December 15, 1955 (P.L.865, No.256) 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 27

Pa.C.S. Ch. 33 Subch. B. Contracts, obligations and

agreements entered into under the former act of December 15,

1955 (P.L.865, No.256) are not affected nor impaired by the

repeal of the former act of December 15, 1955 (P.L.865,

No.256).

(2) Except as set forth in paragraph (3), any difference

in language between 27 Pa.C.S. Ch. 33 Subch. B and the former

act of December 15, 1955 (P.L.865, No.256) is intended only

to conform to the style of the Pennsylvania Consolidated

Statutes and is not intended to change or affect the

legislative intent, judicial construction or administrative

interpretation and implementation of the former act of

December 15, 1955 (P.L.865, No.256).

(3) Paragraph (2) does not apply to 27 Pa.C.S. §§ 3301,

3302(b)(3) and 3305.

Section 4. Repeals are as follows:

(1) The General Assembly declares that the repeal under

paragraph (2) is necessary to effectuate the addition of 27

Pa.C.S. Ch. 33.

(2) The act of December 15, 1955 (P.L.865, No.256),

entitled "An act requiring rents and royalties from oil and

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gas leases of Commonwealth land to be placed in a special

fund to be used for conservation, recreation, dams, and flood

control; authorizing the Secretary of Forests and Waters to

determine the need for and location of such projects and to

acquire the necessary land," is repealed.

(3) The General Assembly declares that the repeal under

paragraph (4) is necessary to effectuate the addition of 58

Pa.C.S. Ch. 32.

(4) The act of December 19, 1984 (P.L.1140, No.223),

known as the Oil and Gas Act, is repealed.

Section 5. The addition of 58 Pa.C.S. Ch. 32 is a

continuation of the act of December 19, 1984 (P.L.1140, No.223),

known as the Oil and Gas Act. The following apply:

(1) Except as otherwise provided in 58 Pa.C.S. Ch. 32,

all activities initiated under the Oil and Gas Act shall

continue and remain in full force and effect and may be

completed under 58 Pa.C.S. Ch. 32. Orders, regulations, rules

and decisions which were made under the Oil and Gas Act and

which are in effect on the effective date of section 2(2) of

this act shall remain in full force and effect until revoked,

vacated or modified under 58 Pa.C.S. Ch. 32. Contracts,

obligations and collective bargaining agreements entered into

under the Oil and Gas Act are not affected nor impaired by

the repeal of the Oil and Gas Act.

(2) Except as set forth in paragraph (3), any difference

in language between 58 Pa.C.S. Ch. 32 and the Oil and Gas Act

is intended only to conform to the style of the Pennsylvania

Consolidated Statutes and is not intended to change or affect

the legislative intent, judicial construction or

administration and implementation of the Oil and Gas Act.

(3) Paragraph (2) does not apply to the addition of 58

Pa.C.S. §§ 3203, 3211, 3212.1, 3215, 3215.1, 3216, 3218,

3219.1, 3222, 3225, 3252, 3253, 3254.1, 3256, 3258, 3262,

3272 and 3274.

(4) It is not the intent of the General Assembly to

change, repeal or otherwise affect any of the provisions of

the act of December 18, 1984 (P.L. 1069, No. 214), known as

the Coal and Gas Resource Coordination Act, or to change,

repeal or otherwise affect any of the provisions of the act

of January 26, 2011 (P.L.7, No.2), entitled "An act amending

the act of December 18, 1984 (P.L.1069, No.214), entitled 'An

act requiring coordination of coal mine and gas well

operators; authorizing Department of Environmental Resources

enforcement powers; and providing penalties,' further

providing for definitions, for permits, for permit

application, for minimum distance between gas wells, for well

class designation and for coordination of gas well drilling

through active coal mines; providing for a pillar support

study; and further providing for plugging gas wells

penetrating workable coal seams, for penalties and for

validity of other laws," which amended the Coal and Gas

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Resource Coordination Act.

Section 5.1. The addition of 58 Pa.C.S. § 3215(g)(2) shall

expire three years after the effective date of this act.

Section 6. This act shall take effect in 60 days.

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