PRIOR PRINTER'S NOS. 1238, 1328, 1723

PRINTER'S NO.  1777

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

1100

Session of

2011

  

  

INTRODUCED BY SCARNATI, CORMAN, BROWNE, VOGEL, SMUCKER, D. WHITE, BRUBAKER, PIPPY, MENSCH, YAW AND PICCOLA, MAY 16, 2011

  

  

SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, NOVEMBER 14, 2011   

  

  

  

AN ACT

  

1

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

2

Statutes, consolidating the Oil and Gas Act with

3

modifications relating to definitions, well permits, well

4

location restrictions, protection of water supplies, well

5

reporting requirements, bonding, enforcement orders,

6

penalties, civil penalties and local ordinances; providing

7

for containment, for transportation regulations, for

8

emergency response information, for notification to public

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9

drinking water systems, for corrosion control requirements,

10

for gathering lines and for model ordinance; providing for a

11

model zoning ordinance; and making a related repeal.

12

The General Assembly of the Commonwealth of Pennsylvania

13

hereby enacts as follows:

14

Section 1.  Title 58 of the Pennsylvania Consolidated

15

Statutes is amended by adding parts to read:

16

PART I

17

(RESERVED)

18

PART II

19

OVERSIGHT AND DEVELOPMENT

20

Chapter

21

23.  Drilling Impact Fee

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1

25.  Natural Gas Energy Development Program

2

31.  (Reserved)

3

32.  Regulation

4

33.  Model Ordinance

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5

33.  Local Ordinances Relating to Oil and Gas Operations

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6

CHAPTER 23

7

DRILLING IMPACT FEE

8

Sec.

9

2301.  Definitions.

10

2302.  Shale Impact Fee.

11

2303.  Administration.

12

2304.  Well information.

13

2305.  Duties of department.

14

2306.  (Reserved).

15

2307.  Commission.

16

2308.  Enforcement.

17

2309.  Enforcement orders.

18

2310.  Administrative penalties.

19

2311.  (Reserved).

20

2312.  Recordkeeping.

21

2313.  Examinations.

22

2314.  Distribution of fee.

23

2315.  Statewide initiatives.

24

2316.  Diverse business participation.

25

2317.  Applicability.

26

2318.  Expiration.

27

§ 2301.  Definitions.

28

The following words and phrases when used in this chapter

29

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

30

context clearly indicates otherwise:

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1

"Account."  The Shale Impact Account.

2

"Average annual price of natural gas."  The arithmetic mean

3

of the New York Mercantile Exchange (NYMEX) Henry Hub settled

4

price on the last trading day of each month of a calendar year

5

as reported by the Wall Street Journal for the 12-month period

6

ending December 31.

7

"Commission."  The Pennsylvania Public Utility Commission.

8

"Department."  The Department of Environmental Protection of

9

the Commonwealth.

10

"Eligible applicant."  A county, municipality, council of

11

governments, watershed organization, institution of higher

12

education, nonprofit organization or an authorized organization

13

as defined in 27 Pa.C.S. § 6103 (relating to definitions).

14

"Fee."  The Shale Impact Fee imposed under section 2302 

15

(relating to Shale Impact Fee).

16

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

17

streets most recently certified by the Department of

18

Transportation as eligible for distribution of liquid fuels

19

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

20

referred to as the Liquid Fuels Tax Municipal Allocation Law.

21

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

22

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

23

hydrocarbon gases, primarily methane, and possibly including

24

ethane, propane, butane, pentane, carbon dioxide, oxygen,

25

nitrogen and hydrogen sulfide and other gas species. The term

26

includes natural gas from oil fields known as associated gas or

27

casing head gas, natural gas fields known as nonassociated gas,

28

coal beds, shale beds and other formations. The term does not

29

include coal bed methane.

30

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

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1

separated from the gas as liquids through the process of

2

absorption, condensation, adsorption or other methods in gas

3

processing of cycling plants.

4

"Number of producing unconventional wells."  The most recent

5

numerical count of producing unconventional wells on the

6

inventory maintained and provided to the commission by the

7

department as of the last day of each month.

8

"Price adjustment factor."  One of a range of numerical

9

values used to compute the adjusted fee under section 2302 

10

(relating to Shale Impact Fee). The price adjustment factor

11

shall be determined as follows:

12

(1)  If the average annual price of natural gas is less

13

than $5.01, the price adjustment factor shall be 1.0.

14

(2)  If the average annual price of natural gas is $5.01

15

to $6.00, the price adjustment factor shall be 1.25.

16

(3)  If the average annual price of natural gas is $6.01

17

to $7.00, the price adjustment factor shall be 1.75.

18

(4)  If the average annual price of natural gas is $7.01

19

to $8.00, the price adjustment factor shall be 2.25.

20

(5)  If the average annual price of natural gas is

21

greater than $8.00, the price adjustment factor shall be

22

2.75.

23

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

24

company that holds a permit or other authorization to engage in

25

the business of severing natural gas for sale, profit or

26

commercial use from an unconventional well in this Commonwealth.

27

The term shall not include a producer that severs natural gas

28

from a site used to store natural gas that did not originate

29

from the site.

30

"Stripper well."  A gas well incapable of producing more than

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1

90,000 cubic feet of gas per day during a calendar month,

2

including production from all zones and multilateral well bores

3

at a single well, without regard to whether the production is

4

separately metered.

5

"Unconventional formation."  A geological shale formation

6

existing below the base of the Elk Sandstone or its geologic

7

equivalent stratigraphic interval where natural gas generally

8

cannot be produced at economic flow rates or in economic volumes

9

except by vertical or horizontal well bores stimulated by

10

hydraulic fracture treatments or by using multilateral well

11

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

12

well bore.

13

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

14

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

15

gas from an unconventional formation.

16

"Vertical gas well."  An unconventional well which begins as

17

a vertical linear bore and is not intentionally deviated from

18

the vertical.

19

§ 2302.  Shale Impact Fee.

20

(a)  Imposition.--Beginning January 1, 2011, there shall be

21

imposed a Shale Impact Fee on each unconventional well producing

22

natural gas in this Commonwealth. The fee under this section

23

shall not apply to a stripper well.

24

(b)  Components.--Prior to the adjustment under subsection

25

(c), the fee shall consist of an annual base fee for each

26

unconventional well as follows:

27

(1)  For the first year of production, the fee shall be

28

$50,000.

29

(2)  For the second year of production, the fee shall be

30

$40,000.

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1

(3)  For the third year of production, the fee shall be

2

$30,000.

3

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

4

year of production, the fee shall be $20,000.

5

(5)  For the eleventh year of production through the

6

twentieth year, the fee shall be $10,000.

7

(c)  Annual adjustment.--

8

(1)  The fee shall be adjusted by multiplying the base

9

fee amount times the price adjustment factor rounded to the

10

nearest $100.

11

(2)  The fee for a vertical gas well shall not be subject

12

to adjustment under paragraph (1) and shall be computed as

13

follows:

14

(i)  The fee for a vertical gas well capable of

15

producing more than 180,000 cubic feet of gas per day

16

during a calendar month shall be one-half of the amounts

17

under subsection (b).

18

(ii)  The fee for a vertical gas well capable of

19

producing more than 90,000 but less than 180,000 cubic

20

feet of gas per day during a calendar month shall be one-

21

fourth of the amounts under subsection (b).

22

(d)  Re-stimulated wells.--

23

(1)  A well which after re-stimulation qualifies as a

24

stripper well shall not be subject to this subsection.

25

(2)  The year in which the re-stimulation occurs shall be

26

considered the first year of production for purposes of

27

imposing the fee under subsection (b) if:

28

(i)  a producer re-stimulates a previously stimulated

29

unconventional well following the tenth year of

30

production by:

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1

(A)  hydraulic fracture treatments;

2

(B)  using additional multilateral well bores;

3

(C)  drilling deeper into an unconventional

4

formation; or

5

(D)  other techniques to expose more of the

6

formation of the well bore; and

7

(ii)  the re-stimulation results in a substantial

8

increase in production.

9

(3)  As used in this subsection, the term "substantial

10

increase in production" means an increase in production

11

amounting to more than 90,000 cubic feet of gas per day

12

during a calendar month. 

13

(d.1)  Reopened wells.--If a producer reopens a previously

14

capped well or unconventional well and places the well into

15

production, all of the following apply:

16

(1)  The years during which the well or unconventional

17

well was capped shall not be considered as a year of

18

production.

19

(2)  The fee shall be reinstated based upon the actual

20

year of production under subsections (b) and (d).

21

(e)  Cessation.--Payments of the annual fee shall cease upon

22

certification to the department by the operator that the

23

unconventional well has ceased production and has been plugged

24

according to the regulations established by the department.

25

§ 2303.  Administration.

26

(a)  Commission.--On or before January 31 of each year, the

27

commission shall calculate and determine the average annual

28

price of natural gas for the previous calendar year.

29

(b)  Notice.--Notice of the average annual price and the

30

annual fee schedule per well shall be provided to producers

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1

operating unconventional wells and shall be published on the

2

commission's Internet website.

3

(c)  Method.--If publication of the New York Mercantile

4

Exchange (NYMEX) Henry Hub settled price is discontinued, the

5

average annual price of natural gas then in effect shall not be

6

adjusted until a comparable method to determine the average

7

annual price of natural gas is adopted by commission rule. If

8

the base data of the NYMEX Henry Hub settled price is

9

substantially revised, the commission shall make appropriate

10

changes to ensure that the average annual price of natural gas

11

is reasonably consistent with the result that would have been

12

attained had the substantial revision not been made.

13

(d)  Report.--By March 1, 2012, and each March 1 thereafter,

14

each producer shall submit a production report to the commission

15

on a form prescribed by the commission for the previous calendar

16

year. The report shall include the following:

17

(1)  Annual units of production severed by the producer

18

for each unconventional well for the reporting period.

19

(2)  The number of producing unconventional wells of a

20

producer in each county and municipality.

21

(e)  Fee for 2011.--For calendar year 2011, the fee due shall

22

be paid as follows:

23

(1)  Fifty percent of the fee shall be paid by March 1,

24

2012.

25

(2)  Fifty percent of the fee shall be paid by June 1,

26

2012.

27

(f)  Fee due date.--Except as provided under subsection (e),

28

the fee shall be due on March 1 and each year thereafter. The

29

fee shall become delinquent if not remitted to the commission by

30

the due date.

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1

(g)  Costs of commission.--

2

(1)  Within 30 days of the effective date of this

3

subsection, and each year thereafter, the commission may

4

impose an annual fee not to exceed $100 per well on each

5

reporting producer to pay for the actual costs of the

6

commission to administer and enforce this chapter and Chapter

7

25 (relating to Natural Gas Energy Development Program).

8

(2)  By March 31, 2012 and each year thereafter, the

9

commission shall determine for the preceding calendar year

10

the amount of its actual expenditures directly attributable

11

to the administration and enforcement of this chapter and

12

Chapter 25. The commission shall subtract the amount of fees

13

collected under paragraph (1) in that calendar year and

14

assess any remaining balance on all producers subject to the

15

impact fee in proportion to the number of wells owned by each

16

producer.

17

(3)  Each producer shall be assessed for and shall pay to

18

the commission that proportion of the amount determined under

19

paragraph (2) and allocated to the producer for that year.

20

§ 2304.  Well information.

21

(a)  List.--Within 30 days of the effective date of this

22

section, the department shall provide the commission with a list

23

of all unconventional wells that have received a drilling permit

24

from the department. The department shall update the list and

25

provide it to the commission on a monthly basis.

26

(b)  Updates.--A producer subject to the fee shall notify the

27

commission of the following within 30 days after a calendar

28

month in which the change occurs:

29

(1)  The initiation of production at an unconventional

30

well.

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1

(2)  The removal of an unconventional well from

2

production.

3

§ 2305.  Duties of department.

4

(a)  Confirmation of payment.--Prior to issuing a permit to

5

drill an unconventional well in this Commonwealth, the

6

department shall determine whether the producer has paid all

7

fees owed for an existing well under section 2302 (relating to

8

Shale Impact Fee).

9

(b)  Prohibition.--The department shall not issue a permit to

10

drill an unconventional well until all fees owed under section

11

2302 that are not in dispute have been paid to the commission.

12

(c)  Payment of fees.--The commission shall provide the

13

department with information necessary to determine that the

14

producer has paid all fees owed for an existing well under

15

section 2302.

16

§ 2306.  (Reserved).

17

§ 2307.  Commission.

18

(a)  Powers.--The commission shall have the authority to make

19

all inquiries and determinations necessary to calculate and

20

collect the fee imposed under this chapter, including, if

21

applicable, interest and penalties.

22

(b)  Notice.--If the commission determines that the fee has

23

not been paid in full, it may issue a notice of the amount due

24

and demand for payment and shall set forth the basis for the

25

determination.

26

(c)  Address.--Notice of failure to pay the correct fee shall

27

be sent to the producer via certified mail.

28

(d)  Time period.--Except as set forth in subsection (e), the

29

commission may challenge the amount of a fee paid within three

30

years after the date the report under section 2303(d) (relating

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1

to administration) is filed.

2

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

3

false or fraudulent report with the intent to evade the fee, an

4

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

5

§ 2308.  Enforcement.

6

(a)  Assessment.--The commission shall assess interest on any

7

delinquent fee at the rate determined under section 2307(a)

8

(relating to commission).

9

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

10

subsection (a), if a producer fails to make timely payment of

11

the fee, there shall be added to the amount of the fee due a

12

penalty of 5% of the amount of the fee if failure to file a

13

timely payment is for not more than one month, with an

14

additional 5% penalty for each additional month, or fraction of

15

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

16

in the aggregate.

17

(c)  Timely payment.--If the commission determines that a

18

producer has not made a timely payment of the fee, the

19

commission shall send a written notice of the amount of the

20

deficiency to the producer within 30 days from the date of

21

determining the deficiency. The commission shall notify the

22

department of a producer that has failed to pay the fee for any

23

producing well under section 2302 (relating to Shale Impact

24

Fee). If the producer does not have a pending appeal related to

25

payment of the fee in process, the department shall suspend the

26

permit for that well until the fee has been paid.

27

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

28

in addition to any other remedies provided by law or in equity.

29

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

30

collectible as authorized by law for the collection of debts. If

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1

the producer liable to pay an amount neglects or refuses to pay

2

the amount after demand, the amount, together with costs, shall

3

be a judgment in favor of the Commonwealth upon the property of

4

the producer, but only after the judgment has been entered,

5

docketed and recorded by the prothonotary of the county where

6

the property is situated. The Commonwealth shall transmit to the

7

prothonotaries of the respective counties certified copies of

8

the judgments. Each prothonotary shall enter, docket and record

9

the record in the prothonotary's office and index each judgment,

10

without requiring the payment of costs as a condition precedent

11

to the entry of the judgment.

12

§ 2309.  Enforcement orders.

13

(a)  Issuance.--The commission may issue an order as

14

necessary to enforce this chapter and Chapter 25 (relating to

15

natural gas energy development program). An order issued under

16

this section shall take effect upon notice, unless the order

17

specifies otherwise. An appeal of the order must be in

18

accordance with 66 Pa.C.S. Ch. 3 Subch. B (relating to

19

investigations and hearings).

20

(b)  Compliance.--A producer has the duty to comply with an

21

order issued under subsection (a). If a producer fails to

22

proceed diligently or to comply with an order within the time

23

required, the producer shall be guilty of contempt and shall be

24

punished by the court in an appropriate manner. The commission

25

shall apply to the Commonwealth Court, which shall have

26

jurisdiction over matters relating to contempt.

27

§ 2310.  Administrative penalties.

28

(a)  Civil penalties.--In addition to any other proceeding

29

authorized by law, the commission may assess a civil penalty not

30

to exceed $2,500 per violation upon a producer for the violation

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1

of this chapter. In determining the amount of the penalty, the

2

commission shall consider the willfulness of the violation and

3

other relevant factors.

4

(b)  Separate offense.--Each violation for each separate day

5

and each violation of this chapter shall constitute a separate

6

offense.

7

(c)  Limitation of actions.--Notwithstanding any limitation

8

in 42 Pa.C.S. Ch. 55 Subch. B (relating to civil actions and

9

proceedings) an action under this section must be brought within

10

three years of the violation.

11

(d)  Procedure.--A penalty under this chapter is subject to

12

66 Pa.C.S. Ch. 3 Subch. B (relating to investigations and

13

hearings).

14

§ 2311.  (Reserved).

15

§ 2312.  Recordkeeping.

16

A producer liable for the fee under this chapter or the

17

assessment under Chapter 25 (relating to natural gas energy

18

development program) shall keep records, make reports and comply

19

with regulations of the commission. The commission may require a

20

producer to make reports, render statements or keep records as

21

the commission deems sufficient to determine liability for the

22

fee.

23

§ 2313.  Examinations.

24

(a)  Access.--The commission or its authorized agents or

25

representatives shall:

26

(1)  Have access to the relevant books, papers and

27

records of any producer in order to verify the accuracy and

28

completeness of a report filed or fee paid under this chapter

29

or the assessment under Chapter 25 (relating to natural gas

30

energy development program).

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1

(2)  Require the preservation of all relevant books,

2

papers and records for an appropriate period not to exceed

3

three years from the end of the calendar year to which the

4

records relate.

5

(3)  Examine any employee of a producer under oath

6

concerning the severing of natural gas subject to a fee or

7

any matter relating to the enforcement of this chapter.

8

(4)  Compel the production of relevant books, papers and

9

records and the attendance of all individuals who the

10

commission believes to have knowledge of relevant matters in

11

accordance with 66 Pa.C.S. (relating to public utilities).

12

(b)  Unauthorized disclosure.--Any information obtained by

13

the commission as a result of any report, examination,

14

investigation or hearing under this chapter shall be

15

confidential and shall not be disclosed, except for official

16

purposes, in accordance with judicial order or as otherwise

17

provided by law. A commissioner or an employee of the commission

18

who without authorization divulges confidential information

19

shall be subject to disciplinary action by the commission.

20

§ 2314.  Distribution of fee.

21

(a)  Establishment.--There is hereby established a restricted

22

receipts account in the State Treasury to be known as the Shale

23

Impact Account to be administered by the commission.

24

(b)  Deposit.--All fees imposed under this chapter shall be

25

deposited into the account and are hereby appropriated for the

26

purpose set forth in this section.

27

(c)  Conservation districts.--

28

(1)  From fees collected for 2011, $2,500,000 from the

29

account shall be distributed to county conservation

30

districts.

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1

(2)  From fees collected for 2012 and every year

2

thereafter, $5,000,000 from the account shall be distributed

3

to county conservation districts.

4

(3)  Funds under paragraphs (1) and (2) shall be

5

distributed in accordance with the following:

6

(i)  One-half shall be distributed by dividing the

7

amount equally among conservation districts for any use

8

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

9

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

10

(ii)  One-half shall be distributed by the State

11

Conservation Commission in a manner consistent with the

12

Conservation District Law and the provisions of the State

13

Conservation Commission's Conservation District Fund

14

Allocation Program—Statement of Policy under 25 Pa. Code

15

Ch. 83 Subch. B (relating to Conservation District Fund

16

Allocation Program—Statement of Policy).

17

(c.1)  Office of the State Fire Commissioner.--

18

(1)  From fees collected for 2011 and each year

19

thereafter, $1,500,000 shall be annually distributed to the

20

Office of the State Fire Commissioner.

21

(2)  Funds under paragraph (1) shall be used for the

22

following purposes:

23

(i)  To support training programs for emergency

24

responders located in counties where drilling of

25

Marcellus Shale or other unconventional resources occurs.

26

(ii)  To provide grants to fire departments for the

27

purchase of special equipment required to respond to

28

fires and other emergencies related to the production,

29

processing and transportation of natural gas or natural

30

gas liquids.

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1

(c.2)  Pennsylvania Fish and Boat Commission.--From fees

2

collected for 2011 and each year thereafter, $1,500,000 shall be

3

distributed to the Pennsylvania Fish and Boat Commission for

4

costs relating to the review of applications for permits to

5

drill unconventional wells.

6

(d)  Distribution.--Following distribution under subsections

7

(c), (c.1) and (c.2), for 2011 and every year thereafter, 55% of

8

the revenues remaining in the account are hereby appropriated

9

under this subsection for the purposes authorized under

10

subsection (e). Local governments are encouraged, where

11

appropriate, to jointly fund projects that cross jurisdictional

12

lines. The commission, after making a disbursement under

13

subsection (d.2), shall distribute the remaining funds

14

appropriated under this subsection as follows within 45 days

15

after the date the fee is due:

16

(1)  Thirty-six percent shall be distributed to counties

17

in which producing unconventional wells are located. The

18

amount for each county shall be determined using a formula

19

that divides the number of producing unconventional wells in

20

the county by the number of producing unconventional wells in

21

this Commonwealth and multiplies the resulting percentage by

22

the amount available for distribution under this paragraph.

23

(2)  Thirty-seven percent shall be distributed to

24

municipalities in which producing unconventional wells are

25

located. The amount for each municipality shall be determined

26

using a formula that divides the number of producing

27

unconventional gas wells in the municipality by the number of

28

producing unconventional wells in this Commonwealth and

29

multiplies the resulting percentage by the amount available

30

for distribution under this paragraph.

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1

(3)  Twenty-seven percent shall be distributed to

2

municipalities located in a county in which producing

3

unconventional wells are located. The amount available for

4

distribution in each county shall be determined by dividing

5

the number of producing unconventional wells in the county by

6

the number of producing unconventional wells in this

7

Commonwealth and multiplying the resulting percentage by the

8

amount available for distribution under this paragraph. The

9

resulting amount available for distribution in each county in

10

which producing unconventional wells are located shall be

11

distributed to each municipality in the county as follows:

12

(i)  Fifty percent of the amount available under this

13

paragraph shall be distributed to municipalities in which

14

producing unconventional wells are located and to

15

municipalities that are either contiguous with a

16

municipality in which producing unconventional wells are

17

located or are located within five linear miles of a

18

producing unconventional well. The distribution shall be

19

made as follows:

20

(A)  One-half shall be distributed to each

21

eligible municipality using a formula that divides

22

the population of the eligible municipality within

23

the county by the total population of all eligible

24

municipalities within the county and multiplies the

25

resulting percentage by the amount allocated to the

26

county under this subparagraph.

27

(B)  One-half shall be distributed to each

28

eligible municipality using a formula that divides

29

the highway mileage of the eligible municipality

30

within the county by the total highway mileage of all

- 17 -

 


1

eligible municipalities within the county and

2

multiplies the resulting percentage by the amount

3

allocated to the county under this subparagraph.

4

(ii)  Fifty percent of the amount available under

5

this paragraph shall be distributed to each municipality

6

in the county regardless of whether an unconventional

7

well is located in the municipality as follows:

8

(A)  One-half shall be distributed to each

9

municipality using a formula that divides the

10

population of the municipality within the county by

11

the total population of the county and multiplies the

12

resulting percentage by the amount allocated to the

13

county under this subparagraph.

14

(B)  One-half shall be distributed to each

15

municipality using a formula that divides the highway

16

mileage of the municipality within the county by the

17

total highway mileage of the county and multiplies

18

the resulting percentage by the amount allocated to

19

the county under this subparagraph.

20

(d.1)  Restriction.--The amount allocated to each designated

21

municipality under subsection (d) shall not exceed 50% of its

22

total budget for fiscal year 2011, adjusted for inflation in

23

subsequent years by an amount not to exceed an annual cost-of-

24

living adjustment calculated by applying the percentage

25

increase, if any, in the Consumer Price Index immediately prior

26

to the date the adjustment is due to take effect. Any remaining

27

money shall be retained by the commission and deposited in the

28

Housing Affordability and Rehabilitation Enhancement Fund.

29

(d.2)  Housing Affordability and Rehabilitation Enhancement

30

Fund.--

- 18 -

 


1

(1)  From fees collected for 2011, $2,500,000 from the

2

account shall be distributed to the Housing Affordability and

3

Rehabilitation Enhancement Fund under the act of November 23,

4

2010 (P.L.1035, No.105), entitled "An act amending the act of

5

December 3, 1959 (P.L.1688, No.621), entitled, as amended,

6

'An act to promote the health, safety and welfare of the

7

people of the Commonwealth by broadening the market for

8

housing for persons and families of low and moderate income

9

and alleviating shortages thereof, and by assisting in the

10

provision of housing for elderly persons through the creation

11

of the Pennsylvania Housing Finance Agency as a public

12

corporation and government instrumentality; providing for the

13

organization, membership and administration of the agency,

14

prescribing its general powers and duties and the manner in

15

which its funds are kept and audited, empowering the agency

16

to make housing loans to qualified mortgagors upon the

17

security of insured and uninsured mortgages, defining

18

qualified mortgagors and providing for priorities among

19

tenants in certain instances, prescribing interest rates and

20

other terms of housing loans, permitting the agency to

21

acquire real or personal property, permitting the agency to

22

make agreements with financial institutions and Federal

23

agencies, providing for the purchase by persons of low and

24

moderate income of housing units, and approving the sale of

25

housing units, permitting the agency to sell housing loans,

26

providing for the promulgation of regulations and forms by

27

the agency, prescribing penalties for furnishing false

28

information, empowering the agency to borrow money upon its

29

own credit by the issuance and sale of bonds and notes and by

30

giving security therefor, permitting the refunding,

- 19 -

 


1

redemption and purchase of such obligations by the agency,

2

prescribing remedies of holders of such bonds and notes,

3

exempting bonds and notes of the agency, the income

4

therefrom, and the income and revenues of the agency from

5

taxation, except transfer, death and gift taxes; making such

6

bonds and notes legal investments for certain purposes; and

7

indicating how the act shall become effective,' providing for

8

the Pennsylvania Housing Affordability and Rehabilitation

9

Enhancement Program; and establishing the Housing

10

Affordability and Rehabilitation Enhancement Fund." From fees

11

collected for 2012, and each year thereafter, $5,000,000

12

shall be annually distributed to the Housing Affordability

13

and Rehabilitation Enhancement Fund.

14

(2)  Funds under paragraph (1) shall be used for the

15

following purposes:

16

(i)  To provide support to projects in a county in

17

which producing unconventional wells are located that

18

increase availability of quality, safe, affordable

19

housing for low-income and moderate-income individuals or

20

families, persons with disabilities or elderly persons.

21

(ii)  To provide rental assistance in a county in

22

which producing unconventional wells are located to

23

persons or families whose household income does not

24

exceed the area median income.

25

(3)  No less than 50% of the funds available under this

26

subsection shall be used in fifth, sixth, seventh and eighth

27

class counties.

28

(e)  Use of funds.--A county or municipality receiving funds

29

under subsection (d) shall use the funds received only for the

30

following purposes associated with natural gas production from

- 20 -

 


1

unconventional wells within the county or municipality:

2

(1)  Construction, reconstruction, maintenance and repair

3

of roadways, bridges and public infrastructure.

4

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

5

construction, reconstruction, maintenance and repair.

6

(3)  Emergency preparedness and public safety, including

7

law enforcement and fire services, hazardous material

8

response, 911, equipment acquisition and other services.

9

(4)  Environmental programs, including trails, parks and

10

recreation, open space, flood plain management, conservation

11

districts and agricultural preservation.

12

(5)  Preservation and reclamation of surface and

13

subsurface waters and water supplies.

14

(6)  Tax reductions, including homestead exclusions.

15

(7)  Projects to increase the availability of safe and

16

affordable housing to residents.

17

(8)  Records management, geographic information systems

18

and information technology.

19

(9)  The delivery of social services.

20

(10)  Judicial services.

21

(11)  For deposit into the county or municipality's

22

capital reserve fund if the funds are used solely for a

23

purpose set forth in this subsection.

24

(f)  Reporting.--

25

(1)  The commission shall submit an annual report on all

26

funds in the account. The report shall include a detailed

27

listing of all deposits and expenditures of the fund and be

28

submitted to the chairman and the minority chairman of the

29

Appropriations Committee of the Senate, the chairman and the

30

minority chairman of the Environmental Resources and Energy

- 21 -

 


1

Committee of the Senate, the chairman and the minority

2

chairman of the Appropriations Committee of the House of

3

Representatives and the chairman and the minority chairman of

4

the Environmental Resources and Energy Committee of the House

5

of Representatives. The report shall be submitted by

6

September 30, 2012, and by September 30 of each year

7

thereafter.

8

(2)  All counties and municipalities receiving funds from

9

the account under this section shall submit information to

10

the commission on a form prepared by the commission that sets

11

forth the amount and use of the funds received in the prior

12

calendar year. The form shall set forth that the funds

13

received were committed to a specific project or use as

14

authorized in this section. The reports shall be published

15

annually on the county or municipality's publicly accessible

16

Internet website.

17

§ 2315.  Statewide initiatives.

18

(a)  Deposit and distribution.--Following distribution under

19

section 2314(c), (c.1) and (c.2) (relating to distribution of

20

fee), 45% of the remaining revenue in the account shall be

21

distributed by the commission within 45 days after the date the

22

fee is due as follows:

23

(1)  Twenty-five percent to the Commonwealth Financing

24

Authority for grants to eligible applicants for the

25

following:

26

(i)  Acid mines: damage, abatement and cleanup and

27

mine reclamation, with priority given to projects which

28

recycle and treat water for use in drilling operations.

29

(ii)  Orphan or abandoned oil and gas well plugging.

30

(iii)  Complying with the act of January 24, 1966

- 22 -

 


1

(1965 P.L.1535, No.537), known as the Pennsylvania Sewage

2

Facilities Act.

3

(iv)  Planning acquisition, development,

4

rehabilitation and repair of greenways, recreational

5

trails, open space, parks and beautification projects.

6

(v)  Programs to establish baseline water quality

7

data on private water supplies.

8

(vi)  Watershed programs and related projects.

9

(2)  Twenty-five percent to the Highway Bridge

10

Improvement Restricted Account in the Motor License Fund to

11

counties to be distributed to fund the cost of the

12

replacement or repair of locally owned at-risk deteriorated

13

bridges. Funds shall be distributed to counties

14

proportionately based on the population of the county as

15

follows:

16

(i)  In each county, the distribution shall be

17

according to the following formula:

18

(A)  Divide:

19

(I)  the total population of the county; by

20

(II)  the total population of the

21

Commonwealth;

22

(B)  Express the quotient under clause (A) as a

23

percentage.

24

(C)  Multiply:

25

(I)  the percentage under clause (B); by

26

(II)  the amount of money to be distributed

27

under this paragraph.

28

(ii)  Each county shall receive a minimum of $40,000.

29

(iii)  The Department of Transportation shall release

30

money under this paragraph upon approval of a plan

- 23 -

 


1

submitted by a county or municipality to repair an at-

2

risk deteriorated bridge. The plan must include funding

3

for replacement or repair.

4

(iv)  A county of the first or second class may

5

submit a plan to use its funds under this paragraph for

6

at-risk deteriorated bridges owned by a public

7

transportation authority.

8

(3)  Twenty-five percent for water and sewer projects.

9

Fifty percent of the amount distributed under this paragraph

10

shall be transmitted to the Pennsylvania Infrastructure

11

Infrastructure Investment Authority to be used in accordance

12

with the act of March 1, 1988 (P.L.82, No.16), known as the

13

Pennsylvania Infrastructure Investment Authority Act. Fifty

14

percent of the amount distributed under this paragraph shall

15

be distributed to the H2O PA program to be used by the

16

Commonwealth Financing Authority in accordance with section

17

301 of the act of July 9, 2008 (P.L.908, No.63), known as the

18

H2O PA Act. The prohibition on grants for projects located in

19

a city or county of the first or second class under section

20

301 of the H2O PA Act shall not apply to funds distributed to

21

the H2O PA Program under this paragraph.

22

(4)  Five percent to the Hazardous Sites Cleanup Fund.

23

(5)  Fifteen percent for the planning, acquisition,

24

development rehabilitation and repair of greenways,

25

recreational trails, open space, natural areas, community

26

conservation and beautification projects, community and

27

heritage parks and water resource management. Funds shall be

28

distributed to counties proportionately based on the

29

population of the county as follows:

30

(i)  In each county, the distribution shall be

- 24 -

 


1

according to the following formula:

2

(A)  Divide:

3

(I)  the total population of the county; by

4

(II)  the total population of the

5

Commonwealth.

6

(B)  Express the quotient under clause (A) as a

7

percentage.

8

(C)  Multiply:

9

(I)  the percentage under clause (B); by

10

(II)  the amount of funds available under

11

this paragraph.

12

(ii)  Each county shall receive a minimum of $25,000.

13

(6)  Five percent for distribution as follows:

14

(i)  For 2011, 2012 and 2013, to the Department of

15

Community and Economic Development for projects to

16

provide for the planning, development and construction of

17

a facility to liquefy natural gas or convert natural gas

18

to ethane, propane or similar substances.

19

(ii)  After 2013, to the Hazardous Sites Cleanup

20

Fund.

21

(b)  Restriction on use of proceeds.--

22

(1)  Funds distributed under subsection (a) shall not be

23

used for the purpose of public relations, outreach,

24

communications, lobbying or litigation.

25

(2)  Funds distributed under subsection (a) may not be

26

used by an authorized organization as defined in 27 Pa.C.S. §

27

6103 (relating to definitions) for land acquisition unless

28

the authorized organization has obtained the written consent

29

of the county and municipality in which the land is situated.

30

(c)  Coordination.--The department and the Department of

- 25 -

 


1

Conservation and Natural Resources shall review applications for

2

funding as requested by the Commonwealth Financing Authority and

3

provide recommendations on priority of projects and project

4

approval.

5

§ 2316.  Diverse business participation.

6

(a)  General rule.--Unconventional well producers and related

7

extraction companies, including contractors, subcontractors,

8

professional service providers and suppliers, shall provide

9

maximum practicable opportunities for diverse business

10

participation.

11

(b)  Duties.--Unconventional well producers shall do all of

12

the following:

13

(1)  Fully comply with the Commonwealth's contract

14

compliance policy regarding nondiscrimination.

15

(2)  Notify the Department of General Services' Bureau of

16

Minority and Women Business Opportunities of contracting

17

opportunities from diverse businesses.

18

(3)  Use or obtain the Bureau of Minority and Women

19

Business Opportunities' assistance in using the Department of

20

General Services' Internet website to identify certified

21

diverse businesses as potential sources for Marcellus Shale

22

opportunities.

23

(4)  Utilize the Department of General Services available

24

source list of veteran-owned small businesses.

25

(c)  Survey.--The Department of General Services shall

26

conduct a survey of unconventional well producers to ascertain

27

the extent of diverse business participation. This survey shall

28

be completed by December 31, 2012.

29

(d)  Report.--The Department of General Services shall submit

30

an annual report to the Appropriations Committee of the Senate

- 26 -

 


1

and the Appropriations Committee of the House of Representatives

2

on the utilization of diverse business participation in the

3

Marcellus Shale gas extraction industry.

4

(e)  Definitions.--As used in this section, the following

5

words and phrases shall have the meanings given to them in this

6

subsection unless the context clearly indicates otherwise:

7

"Diverse business."  Minority-owned business, women-owned

8

business and veteran-owned business as determined by the

9

Department of General Services.

10

§ 2317.  Applicability.

11

The provisions of this chapter shall not negate or limit the

12

responsibilities of any producer under this title, 74 Pa.C.S

13

(relating to transportation) or 75 Pa.C.S. (relating to

14

vehicles).

15

§ 2318.  Expiration.

16

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

17

the imposition of a severance tax on unconventional wells in

18

this Commonwealth, submit for publication in the Pennsylvania

19

Bulletin notice of the imposition.

20

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

21

publication of the notice under subsection (a).

22

CHAPTER 25

23

NATURAL GAS ENERGY Development Program

24

Sec.

25

2501.  Definitions.

26

2502.  Assessment.

27

2503.  Program.

28

§ 2501.  Definitions.

29

The following words and phrases when used in this chapter

30

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

- 27 -

 


1

context clearly indicates otherwise:

2

"Authority."  The Commonwealth Financing Authority

3

established in 64 Pa.C.S. § 1511 (relating to authority).

4

"Commission."  As defined in section 2301 (relating to

5

definitions).

6

"Eligible applicant."  Any of the following:

7

(1)  A school district.

8

(2)  A county or municipality.

9

(3)  A Commonwealth authority.

10

(4)  A municipal authority.

11

(5)  The Pennsylvania Turnpike Commission.

12

(6)  A local transportation organization.

13

(7)  A nonprofit entity.

14

(8)  A State-owned or State-related university.

15

"Local transportation organization."  Any of the following:

16

(1)  A political subdivision.

17

(2)  A public transportation authority, port authority or

18

redevelopment authority, which is:

19

(i)  organized under:

20

(A)  the laws of this Commonwealth; or

21

(B)  an interstate compact; or

22

(ii)  otherwise empowered to render, contract to

23

render or assist in rendering transportation services in

24

a limited area in this Commonwealth even though it may

25

also render or assist in rendering transportation service

26

in adjacent states.

27

(3)  A nonprofit association which directly or indirectly

28

provides public transportation service.

29

(4)  A nonprofit association of public transportation

30

providers operating within this Commonwealth.

- 28 -

 


1

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

2

"Producer."  As defined in section 2301 (relating to

3

definitions).

4

"Unconventional well."  As defined in section 2301 (relating

5

to definitions).

6

"Vertical gas well."  As defined in section 2301 (relating to

7

definitions).

8

§ 2502.  Assessment.

9

(a)  Imposition.--There shall be imposed an assessment by the

10

commission on unconventional wells located in this Commonwealth

11

prior to January 1, 2011.

12

(b)  Unconventional well.--The assessment for each

13

unconventional well shall be determined as follows:

14

(1)  The assessment for each unconventional well, other

15

than a vertical gas well, producing natural gas prior to

16

January 1, 2011, shall be $20,000.

17

(2)  The assessment for each vertical gas well producing

18

natural gas prior to January 1, 2011, shall be $10,000.

19

(3)  The assessment for each unconventional well drilled

20

but not producing natural gas prior to January 1, 2011, shall

21

be $8,000.

22

(c)  Deadline and payment.--For calendar year 2010, a report

23

in accordance with section 2303(d) (relating to administration)

24

shall be filed by December 31, 2011, and the assessment due

25

shall be paid as follows:

26

(1)  Fifty percent of the assessment shall be paid by

27

June 30, 2012.

28

(2)  Fifty percent of the assessment shall be paid by

29

September 30, 2012.

30

(d)  Deposit of funds.--Funds received from the assessment

- 29 -

 


1

under this section shall be deposited by the commission into the

2

restricted receipts account established under section 2314(a)

3

(relating to distribution of fee).

4

§ 2503.  Program.

5

(a)  Establishment and purpose.--The Natural Gas Energy

6

Development Program is established. The purpose of the program

7

is to fund projects under this section.

8

(b)  Appropriation.--By November 1, 2012, an amount equal to

9

the funds collected under section 2502 (relating to assessment)

10

shall be transferred from the restricted receipts account

11

established under section 2314(a) (relating to distribution of

12

fee) to the authority. The authority shall use the funds to

13

promote domestic energy development projects utilizing natural

14

gas.

15

(c)  Projects.--

16

(1)  Funds transferred to the authority under subsection

17

(b) shall be utilized for grants, loans, reimbursements or

18

rebates to eligible applicants for any of the following

19

programs:

20

(i)  The conversion or replacement of buses with

21

natural gas vehicles.

22

(ii)  The conversion or replacement of public transit

23

authority vehicles with natural gas vehicles.

24

(iii)  The conversion or replacement of medium and

25

heavy duty vehicles, including garbage trucks, street

26

sweepers and plow trucks, operated by eligible

27

applicants.

28

(iv)  The construction of natural gas fueling

29

stations.

30

(v)  The purchase and installation of the necessary

- 30 -

 


1

natural gas fleet refueling equipment for vehicles

2

operating on natural gas.

3

(2)  A producer shall not be eligible for a grant, loan,

4

reimbursement or rebate under this subsection.

5

(d)  Guidelines.--Funds under this section shall be used in

6

accordance with guidelines of the authority. Guidelines may

7

require the eligible applicant to provide matching funds not to

8

exceed 50% of the total cost of the project.

9

(e)  Application.--An applicant shall submit an application

10

including supporting information as required by the authority.

11

(f)  Administrative costs.--No more than 1% of the funds

12

appropriated to the authority under subsection (b) shall be used

13

for administrative costs.

14

(g)  Applicant eligibility.--In order to be eligible to

15

receive funds under this section, an applicant must provide the

16

following:

17

(1)  A detailed description of the project, including the

18

proposed use of funds and an explanation of how the project

19

will fulfill the goals of this section.

20

(2)  The cost of the project.

21

(3)  The source and amount of any funds to be contributed

22

by the applicant.

23

(4)  A description of how the project will increase this

24

Commonwealth's use of domestic natural gas.

25

(h)  Project eligibility.--In order to be eligible for

26

funding under this section, a project shall be located in this

27

Commonwealth.

28

(i)  Project review.--The authority shall review and prepare

29

an assessment of each application and determine which projects

30

will best utilize and promote the use of domestically produced

- 31 -

 


1

natural gas in this Commonwealth. Projects shall be awarded in

2

accordance with 64 Pa.C.S. § 1512 (relating to board). The

3

department or the Department of Community and Economic

4

Development shall provide technical assistance as appropriate.

5

(j)  Report.--The authority shall provide a report to the

6

chairman and minority chairman of the Appropriations Committee

7

of the Senate and the chairman and minority chairman of the

8

Appropriations Committee of the House of Representatives by

9

October 1, 2013, and each October 1 thereafter. The report shall

10

be maintained on the authority's official Internet website and

11

shall include:

12

(1)  A list of all grants, loans, reimbursements and

13

rebates approved and loans repaid during the previous fiscal

14

year, including the amount of the loan or grant and a

15

description of each approved project.

16

(2)  The estimated domestic energy benefits to date for

17

all projects receiving funding during the fiscal year and the

18

method used to determine estimated benefits.

19

CHAPTER 31

20

(RESERVED)

21

CHAPTER 32

22

REGULATION

23

Subchapter

24

A.  Preliminary Provisions

25

B.  General Requirements

26

C.  Underground Gas Storage

27

D.  Eminent Domain

28

E.  Enforcement and Remedies

29

F.  (Reserved)

30

G.  Miscellaneous Provisions

- 32 -

 


1

SUBCHAPTER A

2

PRELIMINARY PROVISIONS

3

Sec.

4

3201.  Scope of chapter.

5

3202.  Declaration of purpose.

6

3203.  Definitions.

7

§ 3201.  Scope of chapter.

8

This chapter relates to oil and gas.

9

§ 3202.  Declaration of purpose.

10

The purposes of this chapter are to:

11

(1)  Permit optimal development of oil and gas resources

12

of this Commonwealth consistent with protection of the

13

health, safety, environment and property of Pennsylvania

14

citizens.

15

(2)  Protect the safety of personnel and facilities

16

employed in coal mining or exploration, development, storage

17

and production of natural gas or oil.

18

(3)  Protect the safety and property rights of persons

19

residing in areas where mining, exploration, development,

20

storage or production occurs.

21

(4)  Protect the natural resources, environmental rights

22

and values secured by the Constitution of Pennsylvania.

23

§ 3203.  Definitions.

24

The following words and phrases when used in this chapter

25

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

26

context clearly indicates otherwise:

27

"Abandoned well."  Any of the following:

28

(1)  A well:

29

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

30

inject any gas, petroleum or other liquid within the

- 33 -

 


1

preceding 12 months;

2

(ii)  for which equipment necessary for production,

3

extraction or injection has been removed; or

4

(iii)  considered dry and not equipped for production

5

within 60 days after drilling, redrilling or deepening.

6

(2)  The term does not include wells granted inactive

7

status.

8

"Alteration."  An operation which changes the physical

9

characteristics of a well bore, including stimulation or

10

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

11

this chapter, the term does not include:

12

(1)  Repairing or replacing of the casing if the

13

operation does not affect the depth or diameter of the well

14

bore, the use or purpose of the well does not change and the

15

activity complies with regulations promulgated under this

16

chapter. This paragraph shall not apply:

17

(i)  to production casings in coal areas when the

18

production casings are also the coal protection casings;

19

or

20

(ii)  when the method of repairing or replacing the

21

casing would affect the coal protection casing.

22

(2)  Stimulation of a well.

23

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

24

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

25

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

26

which persons live or customarily work.

27

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

28

wells drilled for natural gas or petroleum.

29

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

30

(1)  Hydraulic cement properly mixed with water only.

- 34 -

 


1

(2)  A mixture of materials adequate for bonding or

2

sealing of well bores as approved by regulations promulgated

3

under this chapter.

4

"Coal mine."  Any of the following:

5

(1)  Operations in a coal seam, including excavated

6

portions, abandoned portions and places actually being

7

worked.

8

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

9

other ways and openings, including those which are in the

10

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

11

facilities connected with them below the surface.

12

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

13

operate a coal mine as an owner or lessee.

14

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

15

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

16

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

17

"Department."  The Department of Environmental Protection of

18

the Commonwealth.

19

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

20

deepening of an existing well.

21

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

22

recognized hydrologic cycle which occupies the pore spaces and

23

fractures of saturated subsurface materials.

24

"Gas."  Any of the following:

25

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

26

produced in a natural state from the earth and maintains a

27

gaseous or rarified state at standard temperature of 60

28

degrees Fahrenheit and pressure 14.7 PSIA.

29

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

30

gases.

- 35 -

 


1

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

2

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

3

device or by injecting bentonitic mud or other equally nonporous

4

material into the well.

5

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

6

horizontal plane.

7

"Oil."  Hydrocarbons in liquid form at standard temperature

8

of 60 degrees Fahrenheit and pressure 14.7 PSIA, also referred

9

to as petroleum.

10

"Operating coal mine."  Any of the following:

11

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

12

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

13

months immediately preceding the date its status is put in

14

question, including contiguous worked-out or abandoned coal

15

mines to which it is connected underground.

16

(2)  An underground coal mine to be established or

17

reestablished under paragraph (1).

18

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

19

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

20

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

21

operator and from which the present owner, operator or lessee

22

has received no economic benefit other than as a landowner or

23

recipient of a royalty interest from the well.

24

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

25

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

26

assigned to the coal mine under an underground mine permit

27

issued by the Department of Environmental Protection.

28

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

29

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

30

orphan wells, except where the Department of Environmental

- 36 -

 


1

Protection determines a prior owner or operator benefited from

2

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

3

requirements).

4

"Person."  An individual, association, partnership,

5

corporation, political subdivision or agency of the Federal

6

Government, State government or other legal entity.

7

"Petroleum."  Hydrocarbons in liquid form at standard

8

temperature of 60 degrees Fahrenheit and pressure 14.7 PSIA,

9

also referred to as oil.

10

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

11

mine workings or a mined-out area.

12

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

13

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

14

"Reservoir protective area."  The area surrounding a storage

15

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

16

reservoir boundary, unless an alternate area has been designated

17

by the Department of Environmental Protection, which is deemed

18

reasonably necessary to afford protection to the reservoir,

19

under a conference held in accordance with section 3251

20

(relating to conferences).

21

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

22

remaining after development mining has been completed in that

23

section of a coal mine.

24

"Secretary."  The Secretary of Environmental Protection of

25

the Commonwealth.

26

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

27

operate a storage reservoir as an owner or lessee.

28

"Storage reservoir."  That portion of a subsurface geological

29

stratum into which gas is or may be injected for storage

30

purposes or to test suitability of the stratum for storage.

- 37 -

 


1

"Unconventional formation."  A geological shale formation

<--

2

existing below the base of the Elk Sandstone or its geologic

3

equivalent stratigraphic interval where natural gas generally

4

cannot be produced at economic flow rates or in economic volumes

5

except by vertical or horizontal well bores stimulated by

6

hydraulic fracture treatments or by using multilateral well

7

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

8

well bore.

9

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

10

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

11

gas from an unconventional formation.

12

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

13

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

14

petroleum or another liquid related to oil or gas production or

15

storage, including brine disposal, but excluding a bore hole

16

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

17

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

18

used for:

19

(1)  Systems of monitoring, producing or extracting gas

20

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

21

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

22

known as the Solid Waste Management Act, which does not

23

penetrate a workable coal seam.

24

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

25

(i)  used to vent methane to the outside atmosphere

26

from an operating coal mine; regulated as part of the

27

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

28

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

29

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

30

Mining Conservation and Reclamation Act; and drilled by

- 38 -

 


1

the operator of the operating coal mine for the purpose

2

of increased safety; or

3

(ii)  used to vent methane to the outside atmosphere

4

under a federally funded or State-funded abandoned mine

5

reclamation project.

6

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

7

(1)  The person designated as operator or well operator

8

on the permit application or well registration.

9

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

10

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

11

or reconditions a well with the purpose of production from

12

the well.

13

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

14

storage of gas, a storage operator.

15

"Wetland."  Areas inundated or saturated by surface or

16

groundwater at a frequency and duration sufficient to support,

17

and which normally support, a prevalence of vegetation typically

18

adapted for life in saturated soil conditions, including swamps,

19

marshes, bogs and similar areas.

20

"Workable coal seams."  A coal seam which:

21

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

22

under this chapter by underground methods; or

23

(2)  in the judgment of the Department of Environmental

24

Protection, can reasonably be expected to be mined by

25

underground methods.

26

SUBCHAPTER B

27

GENERAL REQUIREMENTS

28

Sec.

29

3211.  Well permits.

30

3212.  Permit objections.

- 39 -

 


1

3213.  Well registration and identification.

2

3214.  Inactive status.

3

3215.  Well location restrictions.

4

3216.  Well site restoration.

5

3217.  Protection of fresh groundwater and casing requirements.

6

3218.  Protection of water supplies.

7

3218.1.  Containment for unconventional wells.

8

3218.2.  Transportation records regarding wastewater fluids.

9

3218.3.  Emergency response information.

10

3218.4.  Notification to public drinking water systems.

<--

11

3218.5.  Corrosion control requirements.

12

3218.6.  Gathering lines.

13

3219.  Use of safety devices.

14

3220.  Plugging requirements.

15

3221.  Alternative methods.

16

3222.  Well reporting requirements.

17

3223.  Notification and effect of well transfer.

18

3224.  Coal operator responsibilities.

19

3225.  Bonding.

20

3226.  Oil and Gas Technical Advisory Board.

21

§ 3211.  Well permits.

22

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

23

an existing well, except for alterations which satisfy the

24

requirements of subsection (j), without having first obtained a

25

well permit under subsections (b), (c), (d) and (e) in

<--

26

accordance with this section. A copy of the permit shall be kept

27

at the well site during preparation and construction of the well

28

site or access road, drilling, operation or alteration of the

29

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

30

a nonproducing well if the redrilling:

- 40 -

 


1

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

2

from the department authorizing cleaning out and plugging or

3

replugging a nonproducing well under section 13(c) of the act

4

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

5

and Gas Resource Coordination Act; and

6

(2)  is incidental to a plugging or replugging operation

7

and the well is plugged within 15 days of redrilling.

8

(b)  Plat.--The permit application shall be accompanied by a

9

plat prepared by a competent engineer or a competent surveyor,

10

on forms furnished by the department, showing the political

11

subdivision and county in which the tract of land upon which the

12

well to be drilled, operated or altered, is located, the name of

13

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

14

surface landowners or water purveyors whose water supplies are

15

within 1,000 feet, or in the case of an unconventional well

16

within 3,000 feet from the vertical well bore, the name of the

<--

17

owner of record or operator of all known underlying workable

18

coal seams, the acreage in the tract to be drilled, the proposed

19

location of the well determined by survey, courses and distances

20

of the location from two or more permanent identifiable points

21

or landmarks on the tract boundary corners, the proposed angle

22

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

23

substantially from a vertical course, the number or other

24

identification to be given the well, workable coal seams

25

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

26

drilled, operated or altered and which shall be cased off under

27

section 3217 (relating to protection of fresh groundwater and

28

casing requirements) and any other information needed by the

29

department to administer this chapter. The applicant shall

<--

30

(b.1)  Notification.--The following shall apply:

<--

- 41 -

 


1

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

2

of the plat to the following:

3

(1)  The surface landowner.

<--

4

(2)  All surface landowners or water purveyors whose

5

water supplies are within 1,000 feet of the proposed well

6

location or, in the case of an unconventional well, within

7

3,000 feet of the well bore.

8

(3)  The owner and lessee, if any, of any workable coal

9

seams and every coal operator required to be identified on

10

the well permit application and shall submit proof of such

11

notification with the well permit application.

12

(4)  The municipality where the proposed unconventional

13

well is located and a municipality within 3,000 feet of the

14

proposed unconventional well bore.

15

(b.1)  Notification.--Notification of surface owners

16

shall be

17

(i)  The surface landowner.

<--

18

(ii)  All surface landowners or water purveyors whose

19

water supplies are within 1,000 feet of the proposed well

20

location or, in the case of an unconventional well,

21

within 3,000 feet of the vertical well bore.

<--

22

(iii)  The owner and lessee, if any, of any workable

23

coal seams and every coal operator required to be

24

identified on the well permit application and shall

25

submit proof of such notification with the well permit

26

application.

27

(iv)  The municipality where the proposed

28

unconventional well is located and each municipality

29

within 3,000 feet of the proposed unconventional vertical

30

well bore.

- 42 -

 


1

(v)  Storage operators within 3,000 feet of the

2

proposed unconventional vertical well bore.

3

(2)  Notification of surface owners shall be performed by

4

sending notice to those persons to whom the tax notices for

5

the surface property are sent, as indicated in the assessment

6

books in the county in which the property is located.

7

Notification of surface landowners or water purveyors whose

<--

8

water supplies are within 1,000 feet, or in the case of an

9

unconventional well within 3,000 feet of the well bore shall

10

be on forms, and in a manner prescribed by the department,

11

sufficient to identify the rights afforded those persons

12

under section 3218 (relating to protection of water supplies)

13

and advise them of the advisability of taking their own

14

predrilling or prealteration survey. The applicant shall

15

submit proof of compliance with this subsection with the well

16

permit application.

17

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

18

written approval of the proposed well location by the surface

19

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

20

underlying the proposed well location and no objections are

21

raised by the department within 15 days of filing, or if no

22

approval has been submitted and no objections are made to the

23

proposed well location within 15 days from receipt of notice by

24

the department, lessee or owner, the written approval shall be  

<--

25

the surface landowner and the coal operator, lessee or owner, if

<--

26

any, or by the department the same shall be filed and become a

27

permanent record of the well location, subject to inspection at

28

any time by any interested person. The application form to

29

operate an abandoned or orphan well shall provide notification

30

to the applicant of its responsibilities to plug the well upon

- 43 -

 


1

abandonment.

2

(c)  Applicants.--If the applicant for a well permit is a

3

corporation, partnership or person that is not a resident of

4

this Commonwealth, the applicant shall designate the name and

5

address of an agent for the operator who shall be the attorney-

6

in-fact for the operator and who shall be a resident of this

7

Commonwealth upon whom notices, orders or other communications

8

issued under this chapter may be served and upon whom process

9

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

10

under this section shall, within five days after termination of

11

the designation, notify the department of the termination and

12

designate a new agent.

13

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

14

accompanied by a permit fee, established by regulation of the

15

Environmental Quality Board, which bears a reasonable

16

relationship to the cost of administering this chapter.

17

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

18

within 45 days of submission of an application unless the

19

department denies the permit application for any of the reasons

20

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

21

have the right to extend the period for 15 days for cause shown

22

upon notification to the applicant of the reasons for the

23

extension. The department may impose permit terms and conditions

24

necessary to assure compliance with this chapter or other laws

25

administered by the department.

26

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

27

for any of the following reasons:

28

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

29

violation of this chapter or issuance of the permit would

30

result in a violation of this chapter or other applicable

- 44 -

 


1

law.

2

(2)  The permit application is incomplete.

3

(3)  Unresolved objections to the well location by coal

4

mine owner or operator remain.

5

(4)  The requirements of section 3225 (relating to

6

bonding) have not been met.

7

(5)  The applicant, with respect to any other well

8

operated by the applicant, is in continuing violation of this

9

chapter or other applicable law administered by the

10

department and the likely result of the violation is an

11

unsafe operation or environmental damage. If a final

12

determination of the violation has been made in the

<--

13

applicant's favor, the permit denied department shall be

<--

14

reconsidered reconsider the application and the violation

<--

15

shall not be a consideration in the awarding of the permit 

<--

16

considered in the application review. The department may not

<--

17

collect an application fee for the reconsideration.

18

(6)  The applicant failed to pay the fee or file a report

<--

19

under section 2303(d) and (e) (relating to administration),

20

unless a valid an appeal is in process pending. The

<--

21

commission shall notify the department of any applicant who

22

has failed to pay the fee or file a return report and who

<--

23

does not have a valid an appeal pending.

<--

24

(7)  An applicant to drill an unconventional well does

<--

25

not have a reasonable written plan to reuse at least 30% of

26

the total water that will be used to hydraulically fracture

27

the well The water management plan submitted by the applicant

<--

28

to drill an unconventional well does not include a reuse plan

29

for fluids that will be used to hydraulically fracture that

30

well.

- 45 -

 


1

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

2

may proceed to drill, operate or alter the well at the exact

3

location shown on the plat after providing the department, the

4

surface landowner and the local political subdivision in which

5

the well is to be located 24 hours' notice of the date that

6

drilling will commence. In noncoal areas where more than one

7

well is to be drilled as part of the same development project,

8

only the first well of the project need be located by survey.

9

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

10

manner prescribed by regulation. Prior to drilling each

11

additional project well, the well operator shall notify the

12

department and provide reasonable notice of the date on which

13

drilling will commence. Whenever, before or during the drilling

14

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

15

the well operator encounters conditions of a nature which

16

renders drilling of the bore hole or a portion thereof

17

impossible, or more hazardous than usual, the well operator,

18

upon verbal notice to the department, may immediately plug all

19

or part of the bore hole, if drilling has occurred, and commence

20

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

21

the location of the new bore hole does not violate section 3215

22

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

23

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

24

the Oil and Gas Conservation Law, if the new location complies

25

with existing laws, regulations and spacing orders and the new

26

bore hole is at least 330 feet from the nearest lease boundary.

27

Within ten days of commencement of the new bore hole, the well

28

operator shall file with the department a written notice of

29

intention to plug, a well record, a completion report, a

30

plugging certificate for the original bore hole and an amended

- 46 -

 


1

plat for the new bore hole. The well operator shall forward a

2

copy of the amended plat to the surface landowner identified on

3

the well permit application within ten days of commencement of

4

the new well bore.

5

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

6

address and telephone number shall be conspicuously posted at

7

the drilling site prior to initiating during site preparation

<--

8

and during, including the construction of access roads, 

<--

9

construction of the well site or access road, and during 

<--

10

drilling, operation or alteration of the well.

11

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

12

number issued by the department in a legible, visible and

13

permanent manner on the well upon completion.

14

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

15

under this chapter shall expire one year after issuance unless

16

operations for drilling the well are commenced within the period

17

and pursued with due diligence or unless the permit is renewed

18

in accordance with regulations of the department. If drilling is

19

commenced during the one-year period, the well permit shall

20

remain in force until the well is plugged in accordance with

21

section 3220 (relating to plugging requirements) or the permit

22

is revoked. A drilling permit issued prior to April 18, 1985,

23

for a well which is an operating well on April 18, 1985, shall

24

remain in force as a well permit until the well is plugged in

25

accordance with section 3220. Nothing in this subsection shall

26

be construed to rescind the provisions pertaining to drilling

27

permits contained in the Oil and Gas Conservation Law.

28

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

29

establish by regulation certain categories of alterations of

30

permitted or registered wells for which permitting requirements

- 47 -

 


1

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

2

proposes to conduct the alteration activity shall first obtain a

3

permit or registration modification from the department. The

4

Environmental Quality Board shall promulgate regulations as to

5

the requirements for modifications.

6

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

7

section or registration issued under section 3213 (relating to

8

well registration and identification) may be transferred without

9

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

10

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

11

the department. The department shall approve or deny a transfer

12

request within 45 days of receipt of a complete and accurate

13

application. The department may deny a request only for reasons

14

set forth in subsection (e.1)(4), (5) and (6). Approval of a

15

transfer request shall permanently transfer responsibility to

16

plug the well under section 3220 to the recipient of the

17

transferred permit or registration. The department may establish

18

a procedure for accelerated approval of well permit applications

19

in hardship cases, as defined by regulation of the Environmental

20

Quality Board, consistent with the requirements of this chapter.

21

§ 3212.  Permit objections.

22

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

23

(relating to well permits) will be located on a tract whose

24

surface is owned by a person other than the well operator, the

25

surface landowner affected shall be notified of the intent to

26

drill and may file objections, in accordance with section 3251

27

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

28

location violates section 3215 (relating to well location

29

restrictions) or that information in the application is untrue

30

in any material respect, within 15 days of the receipt by the

- 48 -

 


1

surface owner of the plat under section 3211(b). Receipt of

2

notice by the surface owner shall be presumed to have occurred

3

15 days from the date of the certified mailing when the well

4

operator submits a copy of the certified mail receipt sent to

5

the surface owner and an affidavit certifying that the address

6

of the surface owner to which notice was sent is the same as the

7

address listed in the assessment books in the county where the

8

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

9

by the department within 15 days after receipt of the plat by

10

the surface landowner, or if written approval by the surface

11

landowner is filed with the department and no objection is

12

raised by the department within 15 days of filing, the

13

department shall proceed to issue or deny the permit.

14

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

15

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

16

operating coal mine or a coal mine already projected and platted

17

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

18

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

19

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

20

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

21

operator affected may file objections under section 3251 to the

22

proposed location within 15 days of the receipt by the coal

23

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

24

alternative location at which the proposed well could be drilled

25

to overcome the objections shall be indicated. If no objection

26

to the proposed location is filed or if none is raised by the

27

department within 15 days after receipt of the plat by the coal

28

operator or owner, or if written approval by the coal operator

29

or owner of the location is filed with the department and no

30

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

- 49 -

 


1

the department shall proceed to issue or deny the permit.

2

(c)  Procedure upon objection.--If an objection is filed by a

3

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

4

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

5

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

6

to allow the parties to consider the objection and attempt to

7

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

8

an appropriate order, shall determine a location on the tract of

9

land as near to the original location as possible where, in the

10

judgment of the department, the well can be safely drilled

11

without unduly interfering with or endangering the mine as

12

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

13

parties or determined by the department shall be indicated on

14

the plat on file with the department and become a permanent

15

record upon which the department shall proceed to issue or deny

16

the permit.

17

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

18

operations, the coal operator shall accurately locate the well

19

by a closed survey on the same datum as the mine workings or

20

coal boundaries are mapped, file the results of the survey with

21

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

22

operator.

23

§ 3213.  Well registration and identification.

24

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

25

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

26

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

27

which no drilling permit has been issued by the department,

28

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

29

operator who registers under this subsection and a well owner or

30

operator who has previously registered a well under this chapter

- 50 -

 


1

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

2

property which the well owner or operator owns or leases and

3

request approval from the department for classification of the

4

well as an orphan well. Information regarding wells to be

5

registered or identified shall be provided on a form, or in a

6

manner, prescribed by the department and shall include:

7

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

8

the well operator is a corporation, partnership or person

9

nonresident of this Commonwealth, the name and address of an

10

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

11

other communications issued under this chapter may be served.

12

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

13

by a point on a 7 1/2 minute United States Geological Survey

14

topographic map or any other location description sufficient

15

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

16

(3)  The approximate date of drilling and completing the

17

well, its approximate depth and producing horizons, well

18

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

19

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

20

bonding or other evidence of financial security submitted by

21

the well operator and deemed appropriate by the department

22

and satisfying the requirements of section 3225 (relating to

23

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

24

financial security shall be required for identification of an

25

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

26

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

27

years to comply with the provisions of this paragraph.

28

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

29

registration fee of $250 for multiple well registration

30

applications submitted simultaneously. The registration fee

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1

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

2

charged for identification of an orphan well.

3

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

4

operator or other person discovering an abandoned well on

5

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

6

other person shall identify it to the department within 60 days

7

of discovery and advise the department that he is seeking

8

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

9

required for identification.

10

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

11

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

12

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

13

The department may adopt and promulgate guidelines designed to

14

ensure a fair implementation of this section, recognizing the

15

practical difficulties of locating unpermitted wells and

16

complying with the reporting requirements of this chapter.

17

(c)  Installation of registration number.--The well operator

18

shall install the registration number issued by the department

19

in a legible, conspicuous and permanent manner on the well

20

within 60 days of issuance.

21

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

22

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

23

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

24

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

25

control over, the drilling or extraction operation of the

26

abandoned well.

27

§ 3214.  Inactive status.

28

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

29

grant inactive status for a period of five years for a permitted

30

or registered well, if the following requirements are met:

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1

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

2

damage to the producing zone or contamination of fresh water

3

or other natural resources or surface leakage of any

4

substance;

5

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

6

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

7

adequate to protect freshwater aquifers, unless the

8

department determines the well poses a threat to the health

9

and safety of persons or property or to the environment;

10

(3)  the operator anticipates construction of a pipeline

11

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

12

gas storage, approved disposal or other appropriate uses

13

related to oil and gas well production; and

14

(4)  the applicant satisfies the bonding requirements of

15

sections 3213 (relating to well registration and

16

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

17

the department may require additional financial security for

18

a well on which an alternative fee is being paid in lieu of

19

bonding under section 3225(d).

20

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

21

inactive status shall be responsible for monitoring the

22

mechanical integrity of the well to ensure that the requirements

23

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

24

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

25

prescribed by departmental regulations.

26

(c)  (Reserved).

27

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

28

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

29

3220 (relating to plugging requirements) or returned to active

30

status within five years of the date inactive status was

- 53 -

 


1

granted, unless the owner or operator applies for an extension

2

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

3

if the department determines that the owner or operator has

4

demonstrated ability to continue meeting the requirements of

5

this section and the owner or operator certifies that the well

6

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

7

owner or operator who has been granted inactive status for a

8

well which is returned to active status prior to expiration of

9

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

10

the department that the well has been returned to active status

11

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

12

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

13

operator may make application to return the well to inactive

14

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

15

basis if the department determines that the owner or operator

16

has demonstrated an ability to continue meeting the requirements

17

of this section and the owner or operator certifies that the

18

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

19

The department shall approve or deny an application to extend a

20

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

21

within 60 days of receipt of the application, and the

22

application shall not be unreasonably denied. If the department

23

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

24

the inactive status shall continue until the department has made

25

a determination on the request. If the department denies an

26

application to extend the period of inactive status or to return

27

a well to inactive status, a well owner or operator aggrieved by

28

the denial shall have the right to appeal the denial to the

29

Environmental Hearing Board within 30 days of receipt of the

30

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

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1

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

2

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

3

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

4

during the period of the appeal.

5

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

6

revoke inactive status and order immediate plugging of a well if

7

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

8

promulgated under this chapter or if the owner or operator

9

demonstrates inability to perform obligations under this chapter

10

or becomes financially insolvent, or upon receipt by the

11

department of notice of bankruptcy proceedings by the permittee.

12

§ 3215.  Well location restrictions.

13

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

14

or in the case of an unconventional well within 500 feet,

15

measured horizontally from any existing building or existing

16

water well without written consent of the owner of the building

17

or water well. If the distance restriction would deprive the

18

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

19

in the oil or gas underlying the surface tract, the well

20

operator may be granted a variance from the distance restriction

21

upon submission of a plan identifying the additional measures,

22

facilities or practices to be employed during well site

23

construction, drilling and operations. The variance, if granted,

24

shall include additional terms and conditions required by the

25

department to ensure safety and protection of affected persons

26

and property, including insurance, bonding, indemnification and

27

technical requirements.

28

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

29

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

30

well within 300 feet from the vertical well bore or 100 feet

<--

- 55 -

 


1

from the edge of the well pad, whichever is greater, measured

2

horizontally from any stream, spring or body of water as

3

identified on the most current 7 1/2 minute topographic

4

quadrangle map of the United States Geological Survey or within

5

100 feet of any wetlands greater than one acre in size. No

6

unconventional well may be located within 1,000 feet from the

<--

7

vertical well bore from a public water supply source as defined

8

in the Safe Drinking Water Act (Public Law 93-523, 21 U.S.C. §

9

349 and 42 U.S.C. §§ 201 and 300f et seq.). The department may

10

waive the distance restrictions upon submission of a plan

11

identifying additional measures, facilities or practices to be

12

employed during well site construction, drilling and operations.

13

The waiver, if granted, shall impose permit conditions necessary

14

to protect the waters of the Commonwealth.

15

(c)  Impact.--On making a determination on a well permit When

<--

16

reviewing a well permit application, the department shall

17

consider and may deny or condition a well permit based on the

18

impact of the proposed well on public resources, including, but

19

not limited to:

20

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

21

wildlife areas.

22

(2)  National or State scenic rivers.

23

(3)  National natural landmarks.

24

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

25

other critical communities.

26

(5)  Historical and archaeological sites listed on the

27

Federal or State list of historic places.

28

(6)  Sources used for public drinking water supplies in

<--

29

accordance with subsection (b).

30

(7)  Whether the proposed well location is within a

- 56 -

 


1

floodplain.

2

(d)  Additional protective measures.--The department may

3

establish additional protective measures for storage of

4

hazardous chemicals and materials intended to be used, or that

5

have been used, on an unconventional well drilling site within

6

750 feet of a stream, spring or body of water identified on the

7

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

8

United States Geological Survey.

9

(e)  Applicability.--The following shall apply:

<--

10

(1)  This section shall not apply to a well proposed to

11

be drilled on on existing well site for which at least one

12

well permit has been issued prior to the effective date of

13

this section.

14

(2)  Nothing in this section shall alter or abridge the

15

terms of any contracts, mortgages or other agreements entered

16

into prior to to the effective date of this section.

17

§ 3216.  Well site restoration.

18

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

19

shall restore the land surface within the area disturbed in

20

siting, drilling, completing and producing the well.

21

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

22

activities, including, but not limited to, activities related to

23

siting, drilling, completing, producing and plugging the well,

24

erosion and sedimentation control measures shall be implemented

25

in accordance with an erosion and sedimentation control plan

26

prepared in accordance with the act of June 22, 1937 (P.L.1987,

27

No.394), known as The Clean Streams Law.

28

(c)  Pits, drilling supplies and equipment.--Within nine

29

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

30

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

- 57 -

 


1

used to contain produced fluids or industrial wastes and remove

2

all drilling supplies and equipment not needed for production.

3

Drilling supplies and equipment not needed for production may be

4

stored on the well site if express written consent of the

5

surface landowner is obtained.

6

(d)  Items related to production or storage.--Within nine

7

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

8

all production or storage facilities, supplies and equipment and

9

restore the well site.

10

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

11

this chapter or in regulations promulgated under this chapter

12

shall also comply with all applicable provisions of The Clean

13

Streams Law.

14

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

15

as required in this chapter or regulations promulgated under

16

this chapter constitutes a violation of this chapter.

17

(g)  Extension.--The restoration period may be extended by

18

the department for an additional six months upon application of

19

the well owner or operator upon evidence of inability to comply

20

due to adverse weather conditions or lack of essential fuel,

21

equipment or labor.

22

§ 3217.  Protection of fresh groundwater and casing

23

requirements.

24

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

25

groundwater, well operators shall control and dispose of brines

26

produced from the drilling, alteration or operation of an oil or

27

gas well in a manner consistent with the act of June 22, 1937

28

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

29

or regulation promulgated under The Clean Streams Law.

30

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

- 58 -

 


1

sources of fresh groundwater and pollution or diminution of

2

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

3

and permanently cemented in each well drilled through the fresh

4

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

5

regulation by the department.

6

(c)  Procedure when coal has been removed.--If a well is

7

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

8

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

9

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

10

been removed, in a manner prescribed by regulation of the

11

department. The department and the coal operator, owner or

12

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

13

commencement of work protecting the mine.

14

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

15

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

16

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

17

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

18

the points and in the manner prescribed by regulation to exclude

19

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

20

naturally in the seam itself, and to enable monitoring the

21

integrity of the production casing.

22

§ 3218.  Protection of water supplies.

23

(a)  General rule.--In addition to the requirements of

24

subsection (c.1), a well operator who affects a public or

25

private water supply by pollution or diminution shall restore or

26

replace the affected supply with an alternate source of water

27

adequate in quantity or and quality for the purposes served by

<--

28

the supply. The department shall ensure the restored or replaced

29

water supply meets the applicable water quality standards

30

consistent with the Safe Drinking Water Act (Public Law 93-523,

- 59 -

 


1

21 U.S.C. § 349 and 42 U.S.C. §§ 201 and 300f et seq.), the act

2

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

3

Drinking Water Act, and or predrilling or alteration water

<--

4

quantity standards as determined by the department. The

5

Environmental Quality Board shall promulgate regulations

6

necessary to meet the requirements of this subsection.

7

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

8

water purveyor suffering pollution or diminution of a water

9

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

10

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

11

an investigation be conducted. Within ten days of notification,

12

the department shall investigate the claim and make a

13

determination within 45 days following notification. If the

14

department finds that the pollution or diminution was caused by

15

drilling, alteration or operation activities or if it presumes

16

the well operator responsible for pollution under subsection

17

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

18

necessary to assure compliance with subsection (a), including

19

orders requiring temporary replacement of a water supply where

20

it is determined that pollution or diminution may be of limited

21

duration.

22

(b.1)  Toll-free telephone number.--The department shall

23

establish a single Statewide toll-free telephone number that

24

persons may use to report cases of water contamination. The

25

Statewide toll-free telephone number shall be provided in a

26

conspicuous manner in the notification required under section

27

3211(b.1) (relating to well permits) and, shall be posted in a

<--

28

conspicuous place at the drilling site and shall be posted on

29

the department's Internet website.

30

(b.2)  Responses to calls.--The department shall develop

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1

appropriate administrative responses to calls received on the

2

Statewide toll-free telephone number for water contamination.

3

(c)  Presumption.--Unless rebutted by a defense established

4

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

5

responsible for pollution of a water supply that is within 1,000 

6

feet, or in the case of an unconventional well within 3,000 feet 

7

from the vertical well bore, of an oil or gas well, if pollution

<--

8

occurred within 12 six months, or in the case of an

<--

9

unconventional well within 12 months, after stimulation or

<--

10

alteration of the unconventional well.

<--

11

(c.1)  Requirement.--If the affected water supply is within

12

the rebuttable presumption area as provided in subsection (c)

13

and the rebuttable presumption applies and the water user is

<--

14

without a readily available alternative source of water, the

15

operator shall provide a temporary water supply if the water

<--

16

user is without a readily available alternative source of water.

17

The temporary water supply provided under this subsection shall

18

be adequate in quantity and quality for the purposes served by

19

the supply.

20

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

21

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

22

the following:

23

(1)  The pollution existed prior to the drilling,

24

stimulation or alteration activities as determined by a

25

predrilling or prealteration survey.

26

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

27

operator access to conduct a predrilling or prealteration

28

survey.

29

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

30

case of an unconventional well within 3,000 feet, of the well 

<--

- 61 -

 


1

vertical well bore.

<--

2

(4)  The pollution occurred more than 12 months more than

<--

3

six months, or in the case of an unconventional well more

4

than 12 months after drilling, stimulation or alteration

5

activities.

6

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

7

other than the drilling, stimulation or alteration activity.

8

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

9

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

10

retain an independent certified laboratory to conduct a

11

predrilling or prealteration survey of the water supply. A copy

12

of survey results shall be submitted to the department and the

13

landowner or water purveyor in the manner prescribed by the

14

department.

15

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

16

prevent a landowner or water purveyor claiming pollution or

17

diminution of a water supply from seeking any other remedy at

18

law or in equity.

19

(g)  Facility operation qualifications.--The department shall

20

ensure that a facility which seeks a National Pollutant

21

Discharge Elimination System permit for the purposes of treating

22

and discharging wastewater originating from oil and gas

23

activities into waters of this Commonwealth is operated by a

24

competent and qualified individual.

25

§ 3218.1.  Containment for unconventional wells.

26

(a)  Sites.--Unconventional well pad sites shall be designed

27

and constructed to prevent spills to the ground surface or

28

spills off the well pad area. Containment practices shall meet

29

all of the following:

30

(1)  Be instituted on the pad during both drilling and

- 62 -

 


1

hydraulic fracturing operations.

2

(2)  Be sufficiently impervious and able to contain

3

spilled material or waste until it can be removed or treated.

4

(3)  Be compatible with the waste material or waste

5

stored or used within the containment.

6

(b)  Plan.--The applicant shall submit a plan to the

7

department describing the containment practices to be utilized

8

and the area of the well pad where containment systems will be

9

employed. The plan shall include a description of the equipment

10

to be kept onsite during drilling and hydraulic fracturing

11

operations to prevent a spill from leaving the well pad.

12

(c)  Materials stored.--Containment systems shall be used

13

wherever any of the following are stored:

14

(1)  Drilling mud.

15

(2)  Hydraulic oil.

16

(3)  Diesel fuel.

17

(4)  Drilling mud additives.

18

(5)  Hydraulic fracturing additives.

19

(6)  Hydraulic fracturing flowback.

20

(d)  Capacity.--Areas where any additives, chemicals, oils or

21

fuels are to be stored must have sufficient containment capacity

22

to hold the volume of the largest container stored in the area

23

plus 10% to allow for precipitation, unless the container is

24

equipped with individual secondary containment.

25

§ 3218.2.  Transportation records regarding wastewater fluids.

26

(a)  Requirements.--A well operator that transports

27

wastewater fluids shall do all of the following:

28

(1)  Maintain records for five years, in accordance with

29

regulations under subsection (b) and on a form approved by

30

the department, of the amount and destination of the fluids

- 63 -

 


1

transported.

2

(2)  Make the records available to the department upon

3

request.

4

(b)  Recordkeeping.--Recordkeeping requirements shall be

5

determined by the department and shall include the following:

6

(1)  The number of gallons of wastewater fluids produced

7

in the drilling, stimulation or alteration of a well.

8

(2)  Upon completion of the well, the name of the person

9

or company that transported the wastewater fluids to a

10

disposal site or to a location other than the well site.

11

(3)  Each location where wastewater fluids were disposed

12

of or transported and the volumes that were disposed of at

13

the location.

14

(4)  The method of disposal.

15

§ 3218.3.  Emergency response information.

16

The Pennsylvania Emergency Management Agency and the

17

department shall adopt emergency regulations directing require 

<--

18

the operators of all unconventional wells to do all of the

19

following:

20

(1)  Adopt a unique GPS coordinate address for each

21

unconventional well at both the access road entrance and well

22

pad site.

23

(2)  Register that address with the agency, the

24

department and the county emergency management organization

25

within the county where the unconventional well is located.

26

(3)  Require the development of an emergency response

27

plan and file that plan with the agency, the department and

28

the county emergency management organization with

29

jurisdiction over the unconventional well. The county shall

30

disseminate the GPS address and emergency response plan to

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1

the local emergency management organization in which the

2

unconventional well is located.

3

(4)  Post a reflective sign at the entrance to each well

4

site with the specific address of that site, the coordinates

5

for the site, the emergency contact number for the operator

6

and any other information as the agency or the department

7

deems necessary.

8

§ 3218.4.  Notification to public drinking water systems.

<--

9

Upon receiving notification of spill the department shall,

10

after investigating the incident, notify any public drinking

11

water facility that could be affected by the event that the

12

event occurred. The notification shall contain a brief

13

description of the event and any expected impact on water

14

quality.

15

§ 3218.5.  Corrosion control requirements.

16

The following shall apply to corrosion control requirements:

17

(1)  All buried metallic structures associated with gas

18

wells including pipelines, well casings and underground tanks

19

must have corrosion protection measures designed to protect

20

the pipeline installed and placed in operation in accordance

21

with regulations promulgated by the Environmental Quality

22

Board.

23

(2)  Permanent aboveground and underground tanks must

24

comply with the applicable corrosion control requirements in

25

the department's regulations.

26

(3)  The corrosion control procedures under paragraphs

27

(1) and (2) must be carried out by or under the direction of

28

a person qualified in corrosion methods.

29

(4)  An operator of a new, replaced, relocated or

30

otherwise changed line must be in compliance with the

- 65 -

 


1

applicable requirements of this section by the date the line

2

goes into service.

3

§ 3218.6.  Gathering lines.

4

(a)  Requirement.--Owners and operators of gathering lines

5

shall comply with section 2(5)(i.1) of the act of December 10,

6

1974 (P.L.852, No.287), referred to as the Underground Utility

7

Line Protection Law.

8

(b)  Definition.--As used in this section, the term

9

"gathering lines" means a pipeline used to transport natural gas

10

from a production facility to a transmission line or main.

11

§ 3219.  Use of safety devices.

12

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

13

it with casings of sufficient strength, and other safety devices

14

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

15

department, and shall use every effort and endeavor effectively

16

to prevent blowouts, explosions and fires.

17

§ 3220.  Plugging requirements.

18

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

19

operator shall plug it in the manner prescribed by regulation of

20

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

21

well bore, unless the department has granted inactive status for

22

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

23

well. If the department determines that a prior owner or

24

operator received economic benefit, other than economic benefit

25

derived only as a landowner or from a royalty interest, after

26

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

27

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

28

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

29

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

30

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

- 66 -

 


1

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

2

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

3

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

4

seam through which mining is proposed and, unless impracticable,

5

to a point 200 feet below the deepest mineable coal seam. The

6

gas well shall be plugged from that depth in accordance with

7

section 13 of the act of December 18, 1984 (P.L.1069, No.214),

8

known as the Coal and Gas Resource Coordination Act, and the

9

regulations of the department.

10

(b)  Areas underlain by coal.--Prior to the plugging and

11

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

12

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

13

the coal operator, lessee or owner and submit a plat, on a form

14

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

15

well and fixing the date and time plugging will commence, which

16

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

17

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

18

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

19

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

20

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

21

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

22

to the notice of abandonment filed with the department under

23

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

24

operator has fully complied with this section, the well operator

25

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

26

prescribed by regulation of the department. When plugging has

27

been completed, a certificate shall be prepared and signed, on a

28

form to be furnished by the department, by two experienced and

29

qualified people who participated in the work setting forth the

30

time and manner in which the well was plugged. One copy of the

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1

certificate shall be mailed to each coal operator, lessee or

2

owner to whom notice was given by certified mail and another

3

shall be mailed to the department.

4

(c)  Abandoned wells.--Prior to abandonment of a well, except

5

an uncompleted bore hole plugged immediately upon suspension of

6

drilling in an area not underlain by a workable coal seam, the

7

well operator shall notify the department of the intention to

8

plug and abandon the well and submit a plat, on a form to be

9

furnished by the department, showing the location of the well

10

and fixing the date and time at which plugging will commence,

11

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

12

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

13

representative to be present at the plugging. The notice or

14

waiting period may be verbally waived by the department. In

15

noncoal areas where more than one well has been drilled as part

16

of the same development project and the wells are now to be

17

plugged, the department shall be given three working days'

18

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

19

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

20

of subsequent wells, no additional notice shall be required if

21

plugging on the project is continuous. If plugging of subsequent

22

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

23

department of continuation of the project. Whether or not a

24

representative attends, if the well operator has fully complied

25

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

26

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

27

of the department. When plugging has been completed, a

28

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

29

department, by two experienced and qualified people who

30

participated in the work setting forth the time and manner in

- 68 -

 


1

which the well was plugged. A copy of the certificate shall be

2

mailed to the department.

3

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

4

is to be abandoned immediately after completion of drilling, the

5

well operator shall give at least 24 hours' notice by telephone,

6

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

7

operator, lessee or owner, if any, fixing the date and time when

8

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

9

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

10

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

11

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

12

operator has fully complied with the requirements of this

13

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

14

plug the well in the manner provided by regulation of the

15

department. The well operator shall prepare the certificate of

16

plugging and mail copies of the same as provided in subsection

17

(b).

18

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

19

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

20

registered under section 3213 (relating to well registration and

21

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

22

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

<--

23

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

24

recover the costs of plugging. The department shall make an

25

effort to determine ownership of a well which is in operation

26

but has not been registered and provide written notice to the

27

owner of pending action under this subsection. If the department

28

cannot determine ownership within 30 days, it may proceed under

29

this subsection. Costs of plugging shall have priority over all

30

liens on equipment, casing and pipe, and the sale shall be free

- 69 -

 


1

and clear of those liens to the extent that the cost of plugging

2

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

3

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

4

owner or operator of the abandoned or unregistered well shall be

5

liable for the additional costs.

6

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

7

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

8

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

9

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

10

the drilling or extraction operation of the abandoned well.

11

§ 3221.  Alternative methods.

12

A well operator may request permission to use a method or

13

material other than those required by this chapter for casing,

14

plugging or equipping a well in an application to the department

15

which describes the proposed alternative in reasonable detail

16

and indicates the manner in which it will accomplish the goals

17

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

18

given by the well operator by certified mail to any affected

19

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

20

objections to the proposed alternative method or material. If no

21

timely objections are filed or raised by the department, the

22

department shall determine whether to allow use of the proposed

23

alternative method or material.

24

§ 3222.  Well reporting requirements.

25

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

26

each well operator shall file with the department, on a form

27

provided by the department, an annual report specifying the

28

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

29

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

30

years only changes in status must be reported. The Commonwealth

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1

may utilize reported information in enforcement proceedings, in

2

making designations or determinations under section 1927-A of

3

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

4

Administrative Code of 1929, or in aggregate form for

5

statistical purposes.

6

(a.1)  Unconventional wells.--Each operator of a well which

7

produces gas from an unconventional well shall file with the

8

department, on a form provided by the department, a semiannual

9

report specifying the amount of production on the most well-

10

specific basis available. The initial report under this

11

subsection shall be filed on or before August 15, 2010, and

12

shall include production data from the preceding calendar year

13

and specify the status of each well. In subsequent reports, only

14

changes in status must be reported. Subsequent semiannual

15

reports shall be filed with the department on or before February

16

15 and August 15 of each year and shall include production data

17

from the preceding reporting period. The Commonwealth may

18

utilize reported information in enforcement proceedings, in

19

making designations or determinations under section 1927-A of

20

The Administrative Code of 1929 or in aggregate form for

21

statistical purposes. Beginning November 1, 2010, the department

22

shall make the reports available on its publicly accessible

23

Internet website. Costs incurred by the department to comply

24

with the requirements of this subsection shall be paid out of

25

the fees collected under section 3211(d) (relating to well

26

permits).

27

(b)  Collection of data.--Well operators shall maintain a

28

record of each well drilled or altered. A record containing the

29

information required by the department, including the

30

information required under subsection (b.1), shall be filed

- 71 -

 


1

within 30 days after stimulation of the well. A completion

2

report containing any additional required information shall be

3

filed within 30 days after the stimulation of the well and shall

4

be kept on file by the department. Upon request of the

5

department, the well operator shall, within 90 days of

6

completion or recompletion of drilling, submit a copy of any

7

electrical, radioactive or other standard industry logs which

8

have been run and, upon request by the department within one

9

year, a copy of drill stem test charts, formation water

10

analysis, porosity, permeability or fluid saturation

11

measurements, core analysis and lithologic log or sample

12

description or other similar data as compiled. No information

13

shall be required unless the well operator had it compiled in

14

the ordinary course of business, and interpretation of data is

15

not required to be filed.

16

(b.1)  Report contents.--The completion report shall contain

17

the operator's stimulation record which shall include the

18

following:

19

(1)  A descriptive list of the chemical additives in the

20

stimulation fluids, including any acid, biocide, breaker,

21

brine, corrosion inhibitor, crosslinker, demulsifier,

22

friction reducer, get, iron control, oxygen scavenger, pH

23

adjusting agent, proppant, scale inhibitor and surfactant.

24

(2)  The percent by volume of each chemical additive in

25

the stimulation fluid.

26

(3)  A list of the chemicals in the material safety data

27

sheets, by name and chemical abstract service number,

28

corresponding to the appropriate chemical additive.

29

(4)  The percent by volume of each chemical list in the

30

material safety data sheets.

- 72 -

 


1

(5)  The total volume of the base fluid.

2

(6)  A list of water sources used under the approved

3

water management plan and the volume of water used.

4

(7)  The pump rates and pressure used in the well.

5

(8)  The total volume of recycled water used.

6

(b.2)  Trade secret or confidential proprietary

7

information.--When an operator submits its stimulation record

8

under subsection (b.1), it may designate specific portions of

9

the stimulation record as containing a trade secret or

10

confidential proprietary information. The department shall

11

prevent disclosure of the designated confidential information to

12

the extent permitted by the act of February 14, 2008 (P.L.6,

13

No.3), known as the Right-to-Know Law, or other Federal or State

14

law.

15

(b.3)  List of the chemical constituents.--In addition to

16

submitting a stimulation record to the department under

17

subsection (b.1) and subject to the protections afforded for

18

trade secrets and confidential proprietary information under the

19

Right-to-Know Law, the operator shall arrange to provide a list

<--

20

of the chemical constituents of the chemical additives used to

21

hydraulically fracture a well, by name and chemical abstract

22

service number, unless the additive does not have a number, to

23

the department upon written request of the department.

24

(c)  Drill cuttings and core samples.--Upon notification by

25

the department prior to commencement of drilling, the well

26

operator shall collect any additional data specified by the

27

department, including representative drill cuttings and samples

28

from cores taken and any other geological information that the

29

operator reasonably can compile. Interpretation of the data is

30

not required to be filed.

- 73 -

 


1

(d)  Retention of data.--Data required under subsection (b)

2

and drill cuttings required under subsection (c) shall be

3

retained by the well operator and filed with the department no

4

more than three years after completion of the well. Upon

5

request, the department shall extend the deadline up to five

6

years from the date of completion of the well. The department

7

shall be entitled to utilize information collected under this

8

subsection in enforcement proceedings, in making designations or

9

determinations under section 1927-A of The Administrative Code

10

of 1929 and in aggregate form for statistical purposes.

11

§ 3223.  Notification and effect of well transfer.

12

The owner or operator of a well shall notify the department

13

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

14

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

15

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

16

or operator of an obligation accrued under this chapter, nor

17

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

18

the well until the requirements of section 3225 (relating to

19

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

20

operator shall be relieved from all obligations under this

21

chapter, including the obligation to plug the well.

22

§ 3224.  Coal operator responsibilities.

23

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

24

other underground materials from, or extending the workings in,

25

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

26

coal operator has knowledge, or within 500 feet of an approved

27

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

28

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

29

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

30

all maps and plans which it is presently required by law to

- 74 -

 


1

prepare and file with the department, showing the pillar which

2

the coal operator proposes to leave in place around each oil or

3

gas well in the projected workings. Thereafter, the coal

4

operator may proceed with mining operations in the manner

5

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

6

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

7

well location without written approval under this section. If,

8

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

9

indicates that the proposed pillar is inadequate to protect

10

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

11

the affected well operator shall attempt to reach an agreement

12

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

13

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

14

within ten days after receipt of the proposed plan under this

15

section, file objections under section 3251 (relating to

16

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

17

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

18

has none, the department shall grant approval, reciting that

19

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

20

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

21

approved in the manner as projected.

22

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

23

operator or raised by the department, the department shall order

24

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

25

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

26

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

27

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

28

which will satisfy the objections and receive department

29

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

30

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

- 75 -

 


1

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

2

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

3

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

4

department, by appropriate order, shall determine the pillar to

5

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

6

section, the department shall follow as nearly as is possible

7

the original plan filed by the coal operator. The department

8

shall not require the coal operator to leave a pillar in excess

9

of 100 feet in radius, except that the department may require a

10

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

11

conditions is established. Pillars determined by the department

12

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

13

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

14

pillar to be left for each well.

15

(c)  Pillars of reduced size.--Application may be made at any

16

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

17

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

18

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

19

the department shall:

20

(1)  follow the appropriate procedure under subsection

21

(a) or (b);

22

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

23

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

24

application; and

25

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

26

respect to each well.

27

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

28

of the department after notice and opportunity for a hearing

29

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

30

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

- 76 -

 


1

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

2

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

3

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

4

nothing in this chapter shall be construed to:

5

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

6

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

7

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

8

pillar; or

9

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

10

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

11

pay for the coal pillar.

12

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

13

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

14

completely remove any pillar from around that well shall file a

15

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

16

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

17

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

18

approval has been granted by the department in accordance with

19

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

20

shall have the authority to establish conditions under which the

21

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

22

plugged oil or gas well.

23

§ 3225.  Bonding.

24

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

25

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

26

application for a well permit, and before continuing to

27

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

28

shall file with the department a bond covering the well and

29

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

30

department. A bond filed with an application for a well

- 77 -

 


1

permit shall be payable to the Commonwealth and conditioned

2

upon the operator's faithful performance of all drilling,

3

water supply replacement, restoration and plugging

4

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

5

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

6

conditioned upon the operator's faithful performance of all

7

water supply replacement, restoration and plugging

8

requirements of this chapter. The amount of the bond required

9

shall be in the following amounts and shall be adjusted by

10

the Environmental Quality Board every three years to reflect

11

the projected costs to the Commonwealth of plugging the well:

12

(i)  For a well which is less than 6,000 feet in

13

depth and which is permitted prior to the effective date

14

of this section, $2,500. The operator shall not be

15

required to provide a bond under this paragraph which

16

exceeds $25,000. The bond amount may be adjusted by the

17

Environmental Quality Board every two years to reflect

18

the projected costs to the Commonwealth of performing

19

well plugging.

20

(ii)  For a well which is less than 6,000 feet in

21

bore length and which is permitted after the effective

22

date of this section, $3,500. The operator shall not be

23

required to provide a bond under this paragraph which

24

exceeds $40,000.

25

(iii)  For wells with a total well bore length

26

greater than 6,000 feet:

27

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

28

well, provided the operator may not be required to 

29

provide a bond under this section exceeding $120,000 

<--

30

$140,000.

<--

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1

(B)  For operating 26 to 50 wells, $120,000 

<--

2

$140,000 plus $10,000 per well for each well in

<--

3

excess of 25 wells, provided the operator may not be

4

required to provide a bond under this section

5

exceeding $240,000 $290,000.

<--

6

(C)  For operating 51 to 150 wells, $240,000 

<--

7

$290,000 plus $10,000 per well for each well in

<--

8

excess of 50 wells, provided the operator may not be

9

required to provide a bond under this section

10

exceeding $360,000 $430,000.

<--

11

(D)  For operating more than 150 wells, $360,000 

<--

12

$430,000 plus $10,000 per well for each well in

<--

13

excess of 150 wells, provided the operator may not be

14

required to provide a bond under this section

15

exceeding $500,000 $600,000.

<--

16

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

17

or operator may file a blanket bond, for the appropriate

18

amount as indicated under paragraph (1), on a form prepared

19

by the department, covering all of its wells in this

20

Commonwealth, as enumerated on the bond form.

21

(3)  Liability under the bond shall continue until the

22

well has been properly plugged in accordance with this

23

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

24

certificate of plugging with the department. Each bond shall

25

be executed by the operator and a corporate surety licensed

26

to do business in this Commonwealth and approved by the

27

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

28

deposit with the department:

29

(i)  cash;

30

(ii)  certificates of deposit or automatically

- 79 -

 


1

renewable irrevocable letters of credit, from financial

2

institutions chartered or authorized to do business in

3

this Commonwealth and regulated and examined by the

4

Commonwealth or a Federal agency, which may be terminated

5

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

6

notice by the financial institution to the permittee and

7

the department;

8

(iii)  negotiable bonds of the United States

9

Government or the Commonwealth, the Pennsylvania Turnpike

10

Commission, the State Public School Building Authority or

11

any municipality within the Commonwealth; or

12

(iv)  United States Treasury Bonds issued at a

13

discount without a regular schedule of interest payments

14

to maturity, otherwise known as Zero Coupon Bonds, having

15

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

16

of purchase and at the maturity date having a value under

17

paragraph (1). The cash deposit, certificate of deposit,

18

amount of the irrevocable letter of credit or market

19

value of the securities shall be equal at least to the

20

sum of the bond.

21

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

22

cash, letters of credit or negotiable bonds, immediately

23

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

24

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

25

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

26

is made.

27

(5)  The State Treasurer shall at all times be

28

responsible for custody and safekeeping of deposits. The

29

operator making the deposit shall be entitled from time to

30

time to demand and receive from the State Treasurer, on the

- 80 -

 


1

written order of the secretary, the whole or any portion of

2

collateral deposited, upon depositing with the State

3

Treasurer, in lieu of that collateral, other collateral of

4

classes specified in this section having a market value at

5

least equal to the sum of the bond, and also to demand,

6

receive and recover the interest and income from the

7

negotiable bonds as they become due and payable.

8

(6)  If negotiable bonds on deposit under this subsection

9

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

10

the owner of the bonds, shall convert them into other

11

negotiable bonds, of classes specified in this section,

12

designated by the owner.

13

(7)  If notice of intent to terminate a letter of credit

14

is given, the department shall give the operator 30 days'

15

written notice to replace the letter of credit with other

16

acceptable bond guarantees as provided in this section. If

17

the owner or operator fails to timely replace the letter of

18

credit, the department shall draw upon and convert the letter

19

of credit into cash and hold it as a collateral bond

20

guarantee.

21

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

22

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

23

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

24

Upon release of bonds and collateral under this section, the

25

State Treasurer shall immediately return to the owner the

26

specified amount of cash or securities.

27

(c)  Noncompliance.--If a well owner or operator fails or

28

refuses to comply with subsection (a), regulations promulgated

29

under this chapter or conditions of a permit relating to this

30

chapter, the department may declare the bond forfeited and shall

- 81 -

 


1

certify the same to the Attorney General, who shall proceed to

2

enforce and collect the full amount of the bond and, if the well

3

owner or operator has deposited cash or securities as collateral

4

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

5

collateral forfeited and direct the State Treasurer to pay the

6

full amount of the funds into the Well Plugging Restricted

7

Revenue Account or to sell the security to the extent forfeited

8

and pay the proceeds into the Well Plugging Restricted Revenue

9

Account. If a corporate surety or financial institution fails to

10

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

11

or financial institution shall be disqualified from writing

12

further bonds under this chapter or any other environmental law

13

administered by the department. A person aggrieved by reason of

14

forfeiting the bond or converting collateral, as provided in

15

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

16

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

17

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

18

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

19

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

20

wells of which the person is an owner or operator. Failure to

21

submit the replacement bond constitutes a violation of this

22

section as to each of the wells owned or operated by the person.

23

(d)  Alternatives to certain bonds.--The following shall

24

apply:

25

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

26

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

27

required under subsection (a), due to inability to

28

demonstrate sufficient financial resources may, in lieu of

29

the bond:

30

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

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1

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

2

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

3

shall be a nonrefundable fee paid each year that the

4

operator has not filed a bond with the department. All

5

fees collected in lieu of a bond under this subsection

6

shall be used for the purposes authorized by this

7

chapter. The Environmental Quality Board shall have the

8

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

9

established under this subsection.

10

(ii)  Make phased deposits of collateral to fully

11

collateralize the bond, subject to the following:

12

(A)  Payment shall be based on the number of

13

wells owned or operated. The operator shall make an

14

initial deposit and make annual deposits in

15

accordance with the schedule in clause (B). Interest

16

accumulated by the collateral shall become a part of

17

the bond until the collateral plus accumulated

18

interest equals the amount of the required bond. The

19

collateral shall be deposited, in trust, with the

20

State Treasurer as provided in this subsection or

21

with a bank selected by the department which shall

22

act as trustee for the benefit of the Commonwealth to

23

guarantee the operator's compliance with the

24

drilling, water supply replacement, restoration and

25

plugging requirements of this chapter. The operator

26

shall be required to pay all costs of the trust.

27

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

28

does not intend to operate additional wells shall

29

deposit $250 per well and shall, thereafter, annually

30

deposit $50 per well until the obligations of this

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1

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

2

or an operator of up to ten wells that applies for

3

one or more permits for additional wells shall

4

deposit $2,000 and shall, thereafter, annually

5

deposit $1,150 plus $150 for each additional well to

6

be permitted that year until the obligations of this

7

section are fully met. An operator of 26 to 50 wells

8

shall deposit $3,000 and shall, thereafter, annually

9

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

10

be permitted that year until the obligations of this

11

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

12

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

13

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

14

be permitted that year until the obligations of this

15

section are fully met. Operators of 101 to 200 wells

16

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

17

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

18

to be permitted that year until the obligations of

19

this section are fully met. Operators of more than

20

200 wells shall fully bond their wells immediately.

21

(C)  The department shall reduce the amount of

22

phased collateral payments or the period of time over

23

which phased collateral payments shall be made on

24

behalf of owners or operators that, prior to August

25

3, 1992, have paid a fee in lieu of bond under

26

subparagraph (i), and that, by August 3, 1993, chose

27

to enter the phased collateral program under this

28

subparagraph rather than continue to make payments in

29

lieu of bond. Payments made prior to August 3, 1992,

30

in lieu of bond shall not be credited in any other

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1

manner, and the department shall not be required to

2

refund the fees. The Environmental Quality Board, by

3

regulation, may change the annual deposits

4

established under clause (B) if necessary to

5

accommodate a change in the amount of the bond

6

required under this section.

7

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

8

bond or make phased deposits of collateral to fully

9

collateralize the bond so long as the operator does not miss

10

a payment under this subsection and remains in compliance

11

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

12

subsection, the operator shall immediately:

<--

13

(i)  immediately submit the appropriate bond amount

<--

14

in full; or

15

(ii)  cease all operations and plug all wells.

16

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

17

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

18

drill new wells due to inability to demonstrate financial

19

resources may meet the collateral bond requirements of

20

subsection (a) by making phased deposits of collateral to

21

fully collateralize the bond. The individual shall be limited

22

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

23

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

24

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

25

years. Interest accumulated shall become a part of the bond

26

until the collateral plus accumulated interest equal the

27

amount of the required bond. The collateral shall be

28

deposited in trust with the State Treasurer under subsection

29

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

30

as trustee for the benefit of the Commonwealth to guarantee

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1

the individual's compliance with the drilling, water supply

2

replacement, restoration and plugging requirements of this

3

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

4

(2)  Individuals may continue to use phased collateral to

5

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

6

drilled under this provision and remain in compliance with

7

this chapter. If an individual misses a payment, the

8

individual shall:

9

(i)  immediately submit the appropriate bond amount

10

in full; or

11

(ii)  cease all operations and plug all wells.

12

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

13

means a natural person doing business under his own name.

14

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

<--

15

violations of this chapter, regulations adopted under this

16

chapter and conditions of permits are expressly preserved.

17

Nothing in this section shall be construed as an exclusive

18

penalty or remedy for violations of law. No action taken under

19

this section shall waive or impair any other remedy or penalty

20

provided in law.

21

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

22

meet the requirements of this section shall not be required to

23

make payments under this section on a retroactive basis as a

24

condition of obtaining a permit under this chapter, nor shall

25

the failure be deemed a violation of this chapter.

26

§ 3226.  Oil and Gas Technical Advisory Board.

27

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

28

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

29

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

30

this Commonwealth:

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1

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

2

(i)  a petroleum engineer;

3

(ii)  a petroleum geologist; or

4

(iii)  an experienced driller representative of the

5

oil and gas industry with three years of experience in

6

this Commonwealth.

7

(2)  One mining engineer from the coal industry with

8

three years of experience in this Commonwealth.

9

(3)  One geologist or petroleum engineer with three years

10

of experience in this Commonwealth, who shall be chosen from

11

a list of three names submitted by the Citizens Advisory

12

Council to the Governor and who shall sit as a representative

13

of the public interest.

14

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

15

but shall be reimbursed for all necessary expenses incurred in

16

the performance of their duties.

17

(c)  Majority vote.--All actions of the board shall be by

18

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

19

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

20

this chapter. The board shall select a chairman and other

21

officers deemed appropriate.

22

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

23

board in the formulation, drafting and presentation stages of

24

all regulations of a technical nature promulgated under this

25

chapter. The board shall be given a reasonable opportunity to

26

review and comment on all regulations of a technical nature

27

prior to submission to the Environmental Quality Board for

28

initial consideration. The written report of the board shall be

29

presented to the Environmental Quality Board with any regulatory

30

proposal. The chairman of the board shall be invited to

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1

participate in the presentation of all regulations of a

2

technical nature before the Environmental Quality Board to the

3

extent allowed by procedures of the Environmental Quality Board.

4

Nothing herein shall preclude any member of the board from

5

filing a petition for rulemaking with the Environmental Quality

6

Board in accordance with procedures established by the

7

Environmental Quality Board.

8

SUBCHAPTER C

9

UNDERGROUND GAS STORAGE

10

Sec.

11

3231.  Reporting requirements for gas storage operations.

12

3232.  Reporting requirements for coal mining operations.

13

3233.  General gas storage reservoir operations.

14

3234.  Gas storage reservoir operations in coal areas.

15

3235.  Inspection of facilities and records.

16

3236.  Reliance on maps and burden of proof.

17

3237.  Exemptions and prohibitions.

18

§ 3231.  Reporting requirements for gas storage operations.

19

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

20

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

21

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

22

mine operating in a coal seam that extends over the storage

23

reservoir or reservoir protective area shall, within 60 days,

24

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

25

the form and manner provided in this subsection or as

26

otherwise prescribed by regulation of the department.

27

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

28

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

29

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

30

operating in a coal seam that extends over the storage

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1

reservoir or reservoir protective area shall file the map and

2

data within 60 days or a longer period set by departmental

3

regulation.

4

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

5

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

6

shall file the appropriate required map and data with the

7

department not less than six months prior to starting the

8

actual injection or storage.

9

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

10

by a competent engineer or geologist, showing:

11

(i)  the stratum in which the existing or proposed

12

storage reservoir is or is proposed to be located;

13

(ii)  the geographic location of the outside

14

boundaries of the storage reservoir and reservoir

15

protective area;

16

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

17

the reservoir or within 3,000 linear feet thereof which

18

have been drilled into or through the storage stratum,

19

indicating which have been or are to be cleaned out and

20

plugged or reconditioned for storage along with the

21

proposed location of all additional wells which are to be

22

drilled within the storage reservoir or within 3,000

23

linear feet thereof.

24

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

25

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

26

through the storage stratum within the storage reservoir or

27

within 3,000 linear feet of the storage reservoir:

28

(i)  Name of the operator.

29

(ii)  Date drilled.

30

(iii)  Total depth.

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1

(iv)  Depth of production if the well was productive

2

of oil or gas.

3

(v)  Initial rock pressure and volume.

4

(vi)  Depths at which all coal seams were

5

encountered.

6

(vii)  A copy of the driller's log or other similar

7

information.

8

(5.1)  At the time of the filing of the maps and data, a

9

statement shall be filed: