THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY GABLER, CREIGHTON, GROVE, HARHART, KAUFFMAN, MAHER, MUNDY, QUINN, STEPHENS, WAGNER AND YOUNGBLOOD, NOVEMBER 3, 2011

REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, NOVEMBER 3, 2011  

AN ACT

Amending the act of December 19, 1984 (P.L.1140, No.223),

entitled "An act relating to the development of oil and gas

and coal; imposing duties and powers on the Department of

Environmental Resources; imposing notification requirements

to protect landowners; and providing for definitions, for

various requirements to regulate the drilling and operation

of oil and gas wells, for gas storage reservoirs, for various

reporting requirements, including certain requirements

concerning the operation of coal mines, for well permits, for

well registration, for distance requirements, for well casing

requirements, for safety device requirements, for storage

reservoir obligations, for well bonding requirements, for a

Well Plugging Restricted Revenue Account to enforce oil and

gas well plugging requirements, for the creation of an Oil

and Gas Technical Advisory Board, for oil and gas well

inspections, for enforcement and for penalties," in

preliminary provisions, further providing for definitions;

and, in general requirements, further providing for well

permits, for well location restrictions and for protection of

water supplies.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 103 of the act of December 19, 1984

(P.L.1140, No.223), known as the Oil and Gas Act, is amended by

adding a definition to read:

Section 103.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

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

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

gas from a geological 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 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.

* * *

Section 2.  Sections 201(b) and (d) and 205 of the act are

amended to read:

Section 201.  Well permits.

* * *

(b)  (1)  The permit application shall be accompanied by a

plat prepared by a competent engineer or a competent

surveyor, on forms to be 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, the name

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

all surface landowners or 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 name of the owner of

record or operator of all known underlying workable coal

seams, if any, the acreage in the tract to be drilled, the

proposed location of the well determined by survey, the

courses and distances of such location from two or more

permanent identifiable points or landmarks on said tract

boundary corners, the proposed angle and direction of such

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, if any, underlying

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

altered, which are to be cased off in accordance with section

207, and such information needed by the department to

administer this act.

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

copy of said plat to the following:

(i)  the surface landowner[, all];

(ii)  the coal owner if coal rights have been severed

from the surface regardless of whether the coal seam is

workable;

(iii)  all surface landowners or water purveyors

whose water supplies are within 1,000 feet of the

proposed well location[, the] or, in the case of an

unconventional well, within 2,500 feet of the proposed

well location; and

(iv)  the owner and lessee, if any, of [such] any

coal seams, and every coal operator required to be

identified on the well permit application [and].

Each applicant shall submit proof of such notification with

the well permit application.

(3)  The municipality where the proposed unconventional

well is located and a municipality within 2,500 feet of the

proposed unconventional well location.

(4)  With respect to surface owners, notification shall

be accomplished under this section by sending notice to the

persons to whom the tax notices for said surface property are

sent, as indicated in the assessment books in the county in

which the property is located. With respect to surface

landowners or water purveyors whose water supplies are within

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

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

well location, notification shall be made on forms and in a

manner prescribed by the department sufficient to identify,

for such persons, the rights afforded them under section 208

and the advisability of taking their own predrilling or

prealteration survey.

(5)  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, if any, of

the coal underlying the proposed well location and no

objections are raised by the department within 15 days of

filing or if no such approval has been submitted and no

objections are made to such proposed well location within 15

days from receipt of such notice by the surface landowner and

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

department, the same shall be filed and become a permanent

record of such location, subject to inspection at any time by

any interested person.

* * *

(d)  Every application for a well permit shall be accompanied

by a permit fee, established by regulation of the [department]

Environmental Quality Board, which bears a reasonable

relationship to the cost of administering this act: Provided,

however, That the permit fee shall be $100 for two years

immediately following the effective date of this act.

* * *

Section 205.  Well location restrictions.

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

of an unconventional well, within 500 feet, measured

horizontally from any existing building or existing water well

without the written consent of the owner thereof. Where 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 said surface tract, the well operator may be granted

a variance from said distance restriction upon submission of a

plan which shall identify the additional measures, facilities or

practices to be employed during well site construction, drilling

and operations. The variance, if granted, shall include such

additional terms and conditions as the department shall require

to insure the safety and protection of affected persons and

property. The provisions may include insurance, bonding and

indemnification, as well as technical requirements.

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

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

250 feet, measured horizontally from any stream, spring or

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

topographic quadrangle map of the United States Geological

Survey or [within 100 feet of any] wetlands greater than one

acre in size.

(2)  The department may waive such distance restrictions

upon submission of a plan which shall identify the additional

measures, facilities or practices to be employed during well

site construction, drilling and operations. Such waiver, if

granted, shall impose such permit conditions as are necessary

to protect the waters of the Commonwealth.

(3)  The department may establish additional protective

measures for the storage of wastewater resulting from

hydraulic fracturing operations and hazardous chemicals or

materials intended to be used on the well drilling site

within 2,500 feet of any such stream, spring, body of water

or wetland.

(b.1)  (1)  No unconventional well may be drilled within

2,500 feet of a water well, lake, reservoir, impoundment,

spring or the permitted intake of a stream that serves as a

primary source of supply for a community water system as

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

the Pennsylvania Safe Drinking Water Act.

(2)  The Environmental Quality Board shall develop

conditions under which the restriction in paragraph (1) may

be waived.

(3)  Nothing in this act shall be construed to permit the

disclosure of location data on community drinking water wells

and surface water intakes, related to public utilities,

including municipal or authority systems, to protect such

facilities against sabotage or criminal or terrorist acts or

to abrogate the provisions of the act of November 29, 2006

(P.L.1435, No.156), known as the Public Utility Confidential

Security Information Disclosure Protection Act.

(c)  The department shall, on making a determination on a

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

resources to include, but not be limited to, the following:

(1)  Publicly owned parks, forests, gamelands 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.

(6)  Sources used for public drinking water supplies.

(7)  Whether the proposed well location is within a

floodplain.

Section 3.  Section 208(a), (b), (c) and (d) of the act are

amended and the section is amended by adding subsections to

read:

Section 208.  Protection of water supplies.

(a)  (1)  Any 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.

(2)  The department shall ensure that a restored or

replaced water supply meets applicable water quality

standards consistent with the Safe Drinking Water Act (Public

Law 93-523, 21 U.S.C. § 349 and 42 U.S.C. §§ 201 and 300f et

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

Pennsylvania Safe Drinking Water Act, and predrilling or

alteration water quantity standards as determined by the

department. The Environmental Quality Board shall promulgate

regulations necessary to meet the requirements of this

subsection.

(b)  (1)  Any 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.

(2)  A well operator who receives notice from a

landowner, water purveyor or affected person that a water

supply has been affected by pollution or diminution shall

report receipt of the notice to the department as soon as

possible, but no later than ten calendar days after receiving

the notice.

(3)  Within ten days of such notification, the department

shall investigate any such claim and shall, within 45 days

following notification, make a determination. If the

department finds that the pollution or diminution was caused

by the drilling, alteration or operation activities or if it

presumes the well operator responsible for pollution pursuant

to subsection (c), then it shall issue such orders to the

well operator as are necessary to assure compliance with

subsection (a). Such orders may include orders requiring the

temporary replacement of a water supply where it is

determined that the pollution or diminution may be of limited

duration.

(c)  Unless rebutted by [one of the five defenses] a defense 

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

operator is responsible for the pollution of a water supply that

is within 1,000 feet of the oil or gas well, where the pollution

occurred within six months after the completion of drilling or

alteration of such well.

(c.1)  Unless rebutted by a defense established under

subsection (d), it shall be presumed that an unconventional well

operator is responsible for the pollution of a water supply that

is within 2,500 feet of the unconventional well where the

pollution occurred within 12 months after the completion of

drilling or alteration of the well.

(d)  In order to rebut [the] a presumption of liability

established in subsection (c) or (c.1), the well operator must

affirmatively prove one of the following five defenses:

(1)  The pollution existed prior to the drilling or

alteration activity as determined by a predrilling or

prealteration survey.

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

operator access to conduct a predrilling or prealteration

survey.

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

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

well.

(4)  The pollution occurred more than six months or, in

the case of an unconventional well, the pollution occurred

more than 12 months after completion of drilling or

alteration activities.

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

other than the drilling or alteration activity.

* * *

(e.1)  (1)  At least 30 days prior to commencing a well

drilling operation or alteration activity, an unconventional

well operator shall survey, sample and analyze the quality

and flow of water from any well, spring or other water source

located within 2,500 feet of the proposed oil or gas well.

The water well, spring or other water source to be tested

shall be a supply that is utilized by a landowner or water

purveyor for human consumption, domestic animals or other

general use.

(2)  The unconventional well operator shall utilize a

laboratory approved by the department to perform the water

supply analysis.

(3)  The unconventional well operator shall, within five

days of receipt of the test results, provide this information

in writing to the landowner or water purveyor.

(4)  In the event the landowner or water purveyor rejects

the offer to have the water supply tested or denies access to

the landowner's or water purveyor's property for the test to

be conducted, the unconventional well operator shall not be

required to meet the provisions of this subsection.

(5)  The performance or excused performance of a water

supply test under this subsection shall in no way be

construed to prohibit the unconventional well operator from

commencing drilling operations, provided the appropriate

permit approvals are obtained.

(e.2)  (1)  Upon the completion of drilling operations or

alteration activities and for a period of 12 months

thereafter, an unconventional well operator, upon written

request of the landowner or water purveyor, shall conduct a

follow-up survey and analysis of the quality and flow of

water from any well, spring or other water source initially

tested by the well operator under subsection (e.1). An

unconventional well operator shall not be required to conduct

such follow-up test more than once in a 12-month period. The

unconventional well operator's duty to conduct follow-up

testing shall end 12 months after the completion of drilling

activities.

(2)  The unconventional well operator shall provide

written notice to the landowner or water purveyor of the

right to request follow-up tests.

(3)  The unconventional well operator shall obtain and

analyze the water samples in accordance with methods

established by the department. All follow-up tests shall be

conducted by a laboratory certified by the department to

perform the testing.

(4)  The unconventional well operator shall, within five

days of receipt of the test results, provide this information

in writing to the landowner or water purveyor.

(5)  In the event the landowner or water purveyor rejects

the offer to have a follow-up water supply test or denies

access to the landowner's or water purveyor's property for

the test to be conducted, the unconventional well operator

shall not be required to meet the provisions of this

subsection.

(6)  The performance or excused performance of a follow-

up water supply test under this subsection shall in no way be

construed to prohibit the unconventional well operator from

proceeding with a drilling operation or alteration activity,

provided the appropriate permit approvals are obtained.

* * *

(g)  This section shall also apply to pits, impoundments,

storage tanks or other measures used to store any wastewater

resulting from hydraulic fracturing operations of an

unconventional well located within 2,500 feet of any well,

spring or other water source. The department shall establish

methods and criteria for surveying water quality before and

after the use of pits or impoundments used to store any

wastewater resulting from hydraulic fracturing operations.

Section 4.  This act shall take effect in 60 days.