PRINTER'S NO. 3206

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2469 Session of 1978


        INTRODUCED BY GARZIA, MAY 23, 1978

        REFERRED TO COMMITTEE ON MINES AND ENERGY MANAGEMENT,
           MAY 23, 1978

                                     AN ACT

     1  Providing for the regulation of natural or man-made caverns
     2     which are used for the storage of crude oil or its
     3     derivatives, natural or artificial gas, authorizing the
     4     Department of Labor and Industry to prescribe regulations for
     5     the use and maintenance of such facilities in order to insure
     6     the health and safety of workers and the general public and
     7     for the protection of property, providing for the regulation
     8     of the construction of such facilities by the Department of
     9     Environmental Resources, requiring the posting of a bond and
    10     providing penalties.

    11                         TABLE OF CONTENTS
    12     Section  1.  Short title.
    13     Section  2.  Definitions.
    14     Section  3.  Annual registration.
    15     Section  4.  Rules and regulations.
    16     Section  5.  Bond.
    17     Section  6.  Construction.
    18     Section  7.  Storage pressure.
    19     Section  8.  Enforcement.
    20     Section  9.  Penalties.
    21     Section 10.  Transition provision.
    22     Section 11.  Repeals.

     1     Section 12.  Effective date.
     2     The General Assembly of the Commonwealth of Pennsylvania
     3  hereby enacts as follows:
     4  Section 1.  Short title.
     5     This act shall be known and may be cited as the "Underground
     6  Storage Act."
     7  Section 2.  Definitions.
     8     The following words and phrases, when used in this act, shall
     9  have, unless the context clearly indicates otherwise, the
    10  meanings given to them in this section:
    11     "Commodity" or "stored commodity."  Either in a liquid or
    12  gaseous state: crude oil and its derivatives, natural and
    13  artificial gas.
    14     "Department."  The Department of Labor and Industry.
    15     "Underground storage facility."  A natural or man-made cavern
    16  used for the storage of a commodity. Excluded are storage
    17  facilities which are not natural or man-made caverns and which
    18  are registered with the department for the storage of liquified
    19  petroleum gas pursuant to the act of December 27, 1951
    20  (P.L.1793, No.475), referred to as the Liquified Petroleum Gas
    21  Act.
    22     "User."  Any person, firm, corporation, partnership or other
    23  entity including the Commonwealth and its political
    24  subdivisions.
    25  Section. 3.  Annual registration.
    26     (a)  Registration requirement.--No underground storage
    27  facility shall be used to store a commodity unless the same has
    28  been registered with the department.
    29     (b)  Application.--An application for a registration
    30  certificate shall be made on such form and in such manner as
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     1  prescribed by the rules of the department. The information
     2  required on the application shall include, but not be limited
     3  to, the following:
     4         (1)  Certification by a geologist or geological engineer
     5     that the porosity and structural stability of the surrounding
     6     rock formations meet or exceed the minimum standards set by
     7     the department.
     8         (2)  Certification by a chemist or chemical engineer that
     9     the surrounding rock will not react with the stored
    10     commodity.
    11         (3)  A statement that the bond required by this act has
    12     been given.
    13     (c)  Fee.--
    14         (1)  A fee of $100 shall be collected by the department
    15     for each new or renewal registration certificate issued.
    16         (2)  All fees collected under this act shall be paid into
    17     the State Treasury through the Department of Revenue.
    18  Section 4.  Rules and regulations.
    19     (a)  In general.--The department shall, in the manner
    20  provided by law, promulgate rules and regulations governing:
    21         (1)  The use and maintenance of underground storage
    22     facilities and associated pumping, venting, safety and other
    23     equipment.
    24         (2)  Commercial, industrial or construction activity at
    25     or near underground storage facility sites.
    26         (3)  The odorization of gaseous commodities.
    27     (b)  Nature of regulations.--The regulations shall be as are
    28  reasonably necessary for the protection of the health and safety
    29  of workers and the general public and for the protection of
    30  public and private property located near underground storage
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     1  facility sites.
     2     (c)  Recognized standards.--The regulations shall be in
     3  substantial conformity with the generally accepted standards for
     4  the storage of commodities in underground storage facilities.
     5  Section 5.  Bond.
     6     (a)  Requirement.--The user of an underground storage
     7  facility shall post a bond covering damages caused by the use of
     8  such facility or a stored commodity.
     9     (b)  Amount.--The face amount of such bond shall represent a
    10  value of $1 for each gallon or cubic foot of storage capacity of
    11  the facility containing a liquid or gaseous commodity, as the
    12  case may be.
    13     (c)  Minimum amount.--The minimum amount of the bond shall be
    14  $50,000.
    15  Section 6.  Construction.
    16     The design and construction of man-made underground storage
    17  facilities shall be in accordance with the rules and regulations
    18  of the Department of Environmental Resources.
    19  Section 7.  Storage pressure.
    20     Storage of commodies in underground storage facilities shall
    21  be at atmospheric pressure.
    22  Section 8.  Enforcement.
    23     (a)  Inspection.--The department shall, for the purpose of
    24  inspection have a right of access to every underground storage
    25  facility and associated buildings and equipment.
    26     (b)  Suspension of use.--If, in the judgment of the
    27  department the continued use of an underground storage facility
    28  or associated equipment is found to be dangerous to life or
    29  property, the department may order the suspension of use of the
    30  facility or equipment until the reasonable and necessary changes
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     1  recommended by the department are made.
     2     (c)  Records.--Adequate records shall be maintained by each
     3  user of an underground storage facility and shall be made
     4  available to the department upon request. The department may by
     5  rule, establish the form and contents of such records.
     6  Section 9.  Penalties.
     7     Any user of an underground storage facility who violates any
     8  order of the department regarding the use of an underground
     9  storage facility or associated equipment, shall upon conviction
    10  thereof, be guilty of a summary offense and shall be fined the
    11  sum of $500 for each day of such violation, plus costs.
    12  Section 10.  Transition provision.
    13     Any storage facility which is a natural or man-made cavern
    14  and which is registered with the department for the storage of
    15  liquified petroleum gas pursuant to the Liquified Petroleum Gas
    16  Act shall, on and after the effective date of this act, be
    17  subject to regulations under this act and not the Liquified
    18  Petroleum Gas Act.
    19  Section 11.  Repeals.
    20     (a)  Specific repeals.--As much of the act of December 27,
    21  1951 (P.L.1793, No.475), entitled "An act providing for the
    22  marking of liquefied petroleum gas containers and prohibiting
    23  the refilling or use of such containers without authorization by
    24  the owner thereof; authorizing the Department of Labor and
    25  Industry, after public hearing, to prescribe uniform regulations
    26  for safety in the design, construction, location, installation
    27  and operation of equipment for storing, handling, transporting
    28  by tank truck or tank trailer and utilizing liquefied petroleum
    29  gases for fuel purposes and for the odorization of said gases
    30  used therewith; prohibiting the adoption by municipalities or
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     1  other political subdivisions of ordinances or regulations in
     2  conflict with this act; providing for prosecutions for
     3  violations of this act by summary proceedings, and prescribing
     4  the penalty therefor," as is inconsistent herewith, is hereby
     5  repealed to the extent of the inconsistency.
     6     (b)  General repeal.--All acts or parts of acts inconsistent
     7  herewith are hereby repealed to the extent of the inconsistency.
     8  Section 12.  Effective date.
     9     This act shall take effect in 90 days.














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