Regular Session 2019-2020 Senate Bill 0790 P.N. 1051

PRINTER'S NO. 1051

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

790

Session of

2019

INTRODUCED BY SCARNATI, HUTCHINSON, YAW, K. WARD, STEFANO,

VOGEL, BROOKS, LANGERHOLC, J. WARD, FOLMER, MENSCH AND

MARTIN, JUNE 21, 2019

REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, JUNE 21, 2019

AN ACT

Relating to conventional wells and the development of oil, gas

and coal; imposing powers and duties on the Department of

Environmental Protection; providing for preliminary

provisions, for general requirements, for enforcement and

remedies, for related funds and for miscellaneous provisions;

and making an appropriation.

TABLE OF CONTENTS

Chapter 1. Preliminary Provisions

Section 101. Short title.

Section 102. Scope of chapter.

Section 103. Declaration of purpose of act.

Section 104. Definitions.

Chapter 3. General Requirements

Section 301. Well permits.

Section 302. Permit objections.

Section 303. Well adoption and identification.

Section 304. Inactive status.

Section 305. Well location restrictions.

Section 306. Well site restoration.

Section 307. Protection of fresh groundwater and casing

requirements.

Section 308. Protection of water supplies.

Section 309. Use of safety devices.

Section 310. Well control emergency response.

Section 311. Plugging requirements.

Section 312. Alternative methods.

Section 313. Well reporting requirements.

Section 314. Notification and effect of well transfer.

Section 315. Coal operator responsibilities.

Section 316. Bonding.

Chapter 5. Enforcement and Remedy

Section 501. Conferences.

Section 502. Public nuisances.

Section 503. Enforcement orders.

Section 504. Restraining violations.

Section 505. Well control emergency response cost recovery.

Section 506. Penalties.

Section 507. Civil penalties.

Section 508. Existing rights and remedies preserved and

cumulative remedies authorized.

Section 509. Inspection and production of materials, witnesses,

depositions and rights of entry.

Section 510. Unlawful conduct.

Section 511. Collection of fines and penalties.

Section 512. Third party liability.

Section 513. Inspection reports.

Chapter 7. Miscellaneous Provisions

Section 701. Well plugging funds.

Section 702. (Reserved).

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Section 703. Effect on department authority.

Section 704. Relationship to solid waste, surface mining,

underground injection wells, storage tanks and spill

reporting.

Section 705. Relationship to the Coal and Gas Resource

Coordination Act.

Section 706. Local ordinances

Section 707. Beneficial use of produced water.

Section 708. Permit fee.

Section 709. Appropriation.

Section 709.1. Annual budget submission.

Section 710. Regulations.

Section 711. Repeals.

Section 712. Continuation.

Section 713. Effective date.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

CHAPTER 1

PRELIMINARY PROVISIONS

Section 101. Short title.

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

Oil and Gas Wells Act.

Section 102. Scope of chapter.

This act relates to conventional oil and gas development.

Section 103. Declaration of purpose of act.

The purposes of this act are to:

(1) Permit optimal development of oil and gas resources

in this Commonwealth consistent with the property rights of

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

health, safety, environmental and property rights of

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Pennsylvania citizens.

(2) Protect the safety of personnel and facilities

employed in coal mining or exploration, development, storage

and production of natural gas or oil.

(3) Protect the safety and property rights of persons

residing in areas where mining, exploration, development,

storage or production occurs.

(4) Protect the natural resources, environmental rights

and values secured by the Constitution of Pennsylvania.

Section 104. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Abandoned well." Any of the following:

(1) A well:

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

inject any gas, petroleum or other liquid within the

preceding 12 months;

(ii) for which equipment necessary for production,

extraction or injection has been removed; or

(iii) that is considered dry and not equipped for

production within 60 days after drilling, redrilling or

deepening.

(2) The term does not include wells granted inactive

status.

"Additive." A hydraulic fracturing chemical.

"Alteration." An operation which changes the physical

characteristics of a well bore, including stimulation or

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

this act only, the term does not include:

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(1) Repairing or replacing the casing if the activity

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

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

complies with regulations promulgated under this act, except

that this exclusion does not apply:

(i) to production casings in coal areas when the

production casings are also the coal protection casings;

(ii) when the method of repairing or replacing the

casing would affect the coal protection casing.

(2) Stimulation of a well.

"Bodies of water." A natural or artificial lake, pond,

reservoir, swamp, marsh or wetland.

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

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

within which persons live or customarily work.

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

wells drilled for natural gas or petroleum.

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

(1) Hydraulic cement properly mixed with water only.

(2) A mixture of materials adequate for bonding or

sealing of well bores as approved by regulations promulgated

under this act.

"Certified mail." Any verifiable means of paper document

delivery that confirms receipt of the document by the intended

recipient or the attempt to deliver the document to the proper

address for the intended recipient.

"Chemical." Any element, chemical compound or mixture of

elements or compounds that has its own specific name or

identity, such as a chemical abstract service number.

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"Coal mine." An operation in a coal seam, which shall

include the following:

(1) Excavated and abandoned portions as well as the

places actually being worked.

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

other ways and openings.

(3) Shafts, slopes, tunnels and other openings in the

course of being sunk or driven.

(4) Roads and facilities connected below the surface

with the items listed under paragraphs (1), (2) and (3).

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

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

"Communicate." A transfer of measurable pressure or fluid

flow from a well undergoing hydraulic fracturing to an offset

well. The transfer of pressure or fluid may be evidenced at the

well undergoing hydraulic fracturing.

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

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

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

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

for the purpose of, or to be used for, construction of a well

regulated under this act that is not an unconventional well,

irrespective of technology or design. The term includes, but is

not limited to:

(1) Wells drilled to produce oil.

(2) Wells drilled to produce natural gas from

formations other than shale formations.

(3) Wells drilled to produce natural gas from shale

formations located above the base of the Elk Group or its

stratigraphic equivalent.

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(4) Wells drilled to produce natural gas from shale

formations located below the base of the Elk Group where

natural gas can be produced at economic flow rates or in

economic volumes without the use of vertical or nonvertical

well bores stimulated by hydraulic fracture treatments or

multilateral well bores or other techniques to expose more of

the formation to the well bore.

(5) Irrespective of formation, wells drilled for

collateral purposes, such as monitoring, geologic logging,

secondary and tertiary recovery or disposal injection.

"Council." The Pennsylvania Grade Crude Development Advisory

Council.

"Department." The Department of Environmental Protection of

the Commonwealth.

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

deepening of an existing well.

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

recognized hydrologic cycle which occupies the pore spaces and

fractures of saturated subsurface materials.

"Gas." Any of the following:

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

produced in a natural state from the earth and maintains a

gaseous or rarified state at standard temperature of 60

degrees Fahrenheit and pressure 14.7 PSIA.

(2) Any manufactured gas, by-product gas or mixture of

gases or natural gas liquids.

"Home or consumptive use well." A conventional well

producing natural gas solely for consumptive use by the owner of

the well.

"Hydraulic fracturing chemical." A chemical substance or

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combination of substances, including any chemicals and

proppants, that is intentionally added to a base fluid for

purposes of preparing a stimulation fluid for use in hydraulic

fracturing.

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

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

device or by injecting bentonitic mud or other equally nonporous

material into the well.

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

horizontal plane.

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

seams.

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

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

other available electronic means, unless a specific form of, or

location for, notice is required by this act, regulation or

otherwise established by the department.

"Oil." Hydrocarbons in liquid form at standard temperature

of 60 degrees Fahrenheit and pressure 14.7 PSIA, also referred

to as petroleum.

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

which is covered by an underground mining permit issued by the

department.

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

"Operator." A well operator.

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

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

operator and from which the present owner, operator or lessee

has received no economic benefit other than as a landowner or

recipient of a royalty interest from the well.

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

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

assigned to the coal mine under an underground mine permit

issued by the department.

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

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

orphan wells, except where the department determines a prior

owner or operator benefited from the well as provided in section

311(a).

"Person." An individual, association, partnership,

corporation, political subdivision or agency of the Federal

Government, State government or other legal entity.

"Petroleum." Hydrocarbons in liquid form at standard

temperature of 60 degrees Fahrenheit and pressure 14.7 PSIA,

also referred to as oil.

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

mine workings or a mined-out area.

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

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

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

remaining after development mining has been completed in that

section of a coal mine.

"Secretary." The Secretary of Environmental Protection of

the Commonwealth.

"Unpaved road." Road surfaces consisting of dirt, gravel or

natural materials other than concrete or asphalt.

"Watercourse." A channel or conveyance of surface water

having defined bed and banks, whether natural or artificial,

with perennial or intermittent flow.

"Water purveyor." Any of the following:

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

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

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

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

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

"Waters of the Commonwealth." As defined under section 1 of

the act of June 22, 1937 (P.L.1987, No.394), known as The Clean

Streams Law.

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

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

petroleum or another liquid related to oil or gas production or

storage, including brine disposal, but excluding a bore hole

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

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

used for:

(1) Systems of monitoring, producing or extracting gas

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

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

known as the Solid Waste Management Act, which does not

penetrate a workable coal seam.

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

(i) (A) used to vent methane to the outside

atmosphere from an operating coal mine;

(B) regulated as part of the mining permit under

The Clean Streams Law, and the act of May 31, 1945

(P.L.1198, No.418), known as the Surface Mining

Conservation and Reclamation Act; and

coal mine for the purpose of increased safety; or

(ii) used to vent methane to the outside atmosphere

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under a federally funded or State-funded abandoned mine

reclamation project.

"Well control emergency." An incident during drilling,

operation, workover or completion that, as determined by the

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

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

blowout, fire and explosion.

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

a well control emergency with a current certification from a

well control course accredited by the International Association

of Drilling Contractors or other organization approved by the

department.

"Well operator." Any of the following:

(1) The person designated as operator or well operator

on the permit application or well registration.

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

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

or reconditions a well with the purpose of production from

the well.

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

storage of gas, a storage operator.

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

necessary for or incidental to drilling, completion, production

or plugging a well. The term shall include auxiliary pads,

staging areas, access roads and tank batteries.

"Wetland." Areas inundated or saturated by surface water or

groundwater at a frequency and duration sufficient to support,

and which normally support, a prevalence of vegetation typically

adapted for life in saturated soil conditions, including swamps,

marshes, bogs and similar areas.

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"Workable coal seams." The term includes:

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

question under this act by underground methods.

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

department, can reasonably be expected to be mined by

underground methods.

CHAPTER 3

GENERAL REQUIREMENTS

Section 301. Well permits.

(a) Permit required.--No person shall construct a well site,

drill or alter a well, except for alterations which satisfy the

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

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

an abandoned or orphan well unless in compliance with subsection

(k). A copy of the permit shall be kept at the well site during

preparation and construction of the well site or access road

during drilling or alteration of the well. No person shall be

required to obtain a permit to redrill a nonproducing well if

the redrilling:

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

from the department authorizing cleaning out and plugging or

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

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

and Gas Resource Coordination Act; and

(2) is incidental to a plugging or replugging operation

and the well is plugged within 15 days of redrilling.

(b) Plat.--

(1) The permit application shall be accompanied by a

complete and accurate plat prepared by a person trained in

the preparation of plats on forms furnished by the

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department, which shall contain the following:

(i) the political subdivision and county in which

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

operated or altered is located;

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

lessor;

(iii) the name of all surface landowners and water

purveyors whose water supplies are within 1,000 feet of

the proposed well location;

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

all known underlying workable coal seams, if any;

(v) the acreage in the tract to be drilled;

(vi) the proposed location of the well determined by

plat, along with the courses and distances of the

location from two or more permanent identifiable points

or landmarks on the tract boundary corners;

(vii) the proposed angle and direction of the well

if the well is to be deviated substantially from a

vertical course;

(viii) the number or other identification to be

given to the well;

(ix) the workable coal seams underlying the tract of

land upon which the well is to be drilled or altered and

which shall be cased off under section 307; and

(x) any other information needed by the department

to administer this chapter.

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

of the plat to the:

(i) surface landowner;

(ii) the municipality in which the tract of land

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upon which the well to be drilled is located;

(iii) all surface landowners and water purveyors,

whose water supplies are within 1,000 feet of the

proposed well location;

(iv) the owner and lessee of any workable coal

seams; and

(v) each coal operator required to be identified on

the well permit application.

(b.1) Notification.--

(1) The applicant shall submit proof of notification

with the well permit application. Notification of surface

owners shall be performed by sending notice to those persons

to whom the tax notices for the surface property are sent, as

indicated in the assessment books in the county in which the

property is located. Notification of surface landowners or

water purveyors shall be on forms, and in a manner prescribed

by the department, sufficient to identify the rights afforded

those persons under section 308 and to advise them of the

advantages of taking their own predrilling or prealteration

survey.

(2) With respect to a coal operator, lessee or owner, if

any, notification shall be accomplished under this section by

sending notice to the persons to whom tax notices for the

workable coal seams are sent, as indicated in the assessment

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

recorder of deeds office in the county in which such seams

are located. If certified mail or notification is returned

undeliverable, the applicant shall include a completed

affidavit attesting to the attempted delivery, which shall

satisfy the notification requirements under this section.

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

written approval of the proposed well location by the surface

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

coal underlying the proposed well location and no objections are

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

approval has been submitted and no objections are made to the

proposed well location within 15 days from receipt of notice by

the department, the surface landowner or any coal operator,

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

a permanent record of the well location, subject to inspection

at any time by any interested person. The application form to

operate an abandoned or orphan well shall provide notification

to the applicant of its responsibilities to plug the well upon

abandonment.

corporation, partnership or person that is not a resident of

this Commonwealth, the applicant shall designate the name and

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

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

Commonwealth upon whom notices, orders or other communications

issued under this chapter may be served and upon whom process

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

under this section shall, within five days after termination of

the designation, notify the department of the termination and

designate a new agent.

(d) (Reserved).

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

within 45 days of submission of a permit application unless the

department denies the permit application for one or more of the

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

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

for cause shown upon notification to the applicant of the

reasons for the extension. The department may impose permit

terms and conditions necessary to assure compliance with this

chapter or other laws administered by the department.

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

for any of the following reasons:

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

violation of any of this chapter or issuance of the permit

would result in a violation of this chapter or other

applicable law.

(2) The permit application is incomplete.

(3) Unresolved objections to the well location by the

coal mine owner or operator remain.

(4) The requirements of section 316 have not been met.

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

parent or subsidiary corporation of the applicant, is in

continuing violation of this chapter, any other statute

administered by the department, any regulation promulgated

under this chapter or a statute administered by the

department or any plan approval, permit or order of the

department, unless the violation is being corrected to the

satisfaction of the department. The right of the department

to deny a permit under this paragraph shall not take effect

until the department has taken a final action on the

violations and:

(i) the applicant has not appealed the final action

in accordance with the act of July 13, 1988 (P.L.530,

No.94), known as the Environmental Hearing Board Act; or

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

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been issued.

(f) Drilling.--

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

drill, operate or alter at the exact location shown on the

plat after providing the department, the surface landowner

and the local political subdivision in which the well is to

be located 24 hours' notice of the date that drilling will

commence. Notification to the department must be provided

electronically. If there is a break in drilling of 30 days or

more, the well operator shall notify the department at least

24 hours prior to the resumption of drilling.

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

well operator shall notify the department and provide

reasonable notice of the date on which drilling will

commence.

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

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

operator encounters conditions of a nature which renders

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

more hazardous than usual, the well operator, upon verbal

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

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

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

location of the new bore hole does not violate section 305

and, in the case of a well subject to act of July 25, 1961

(P.L.825, No.359), known as the Oil and Gas Conservation Law,

if the new location complies with existing laws, regulations

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

from the nearest lease boundary.

(4) If drilling occurred at the original well bore,

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within 10 days of commencement of the new bore hole, the well

operator shall file with the department a written notice of

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

plugging certificate for the original bore hole and an

amended plat for the new bore hole.

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

amended plat to the surface landowner identified on the well

permit application within 10 days of commencement of the new

well bore.

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

number issued by the department in a legible, visible and

permanent manner on the well upon completion.

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

under this chapter shall expire three years after issuance

unless operations for drilling the well are commenced within the

period and pursued with due diligence or unless the permit is

renewed in accordance with regulations of the department. If

drilling is commenced during the permit term, the well permit

shall remain in force until the well is plugged in accordance

with section 311 or the permit is revoked. A drilling permit

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

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

until the well is plugged in accordance with section 311.

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

establish by regulation certain categories of alterations of

permitted or registered wells for which permitting requirements

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

proposes to conduct the alteration activity shall first obtain a

permit or registration modification from the department. The

Environmental Quality Board shall promulgate regulations as to

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the requirements for modifications.

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

section or registration issued under section 303 may be

transferred without prior approval of the department. A request

for approval of a transfer shall be on the forms, and in the

manner, prescribed by the department. Transfer of a home or

consumptive use well requires a bond for the well and the well

site on forms prescribed by the department in an amount

sufficient to plug the well and restore the well site, as

determined by the department. A bond filed with a transfer

request for a home or consumptive use well shall be payable to

the Commonwealth and conditioned on the transferee's faithful

performance of all water supply replacement, restoration and

plugging requirements of this chapter. The department shall

approve or deny a transfer request within 45 days of receipt of

a complete and accurate application. The department may deny a

request only for reasons set forth in subsection (e.1)(1), (4)

and (5) or if the well is abandoned. Approval of a transfer

request shall permanently transfer responsibility to plug the

well under section 311 to the recipient of the transferred

permit or registration.

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

establish by regulation requirements for the permitting and

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

conduct abandoned or orphan well operations shall first obtain a

permit to operate an abandoned or orphan well.

Section 302. Permit objections.

(a) General rule.--If a well referred to in section 301(b)

will be located on a tract whose surface is owned by a person

other than the well operator, the surface landowner affected

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shall be notified of the intent to drill and may file

objections, in accordance with section 501, based on the

assertion that the well location violates section 305 or that

information in the application is untrue in any material

respect, within 15 days of the receipt by the surface owner of

the plat under section 301(b). Receipt of notice by the surface

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

of the certified mailing when the well operator submits a copy

of the certified mail receipt sent to the surface owner and an

affidavit certifying that the address of the surface owner to

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

assessment books in the county where the property is located. If

no objection is filed or none is raised by the department within

15 days after receipt of the plat by the surface landowner or if

written approval by the surface landowner is filed with the

department and no objection is raised by the department within

15 days of filing, the department shall proceed to issue or deny

the permit.

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

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

penetrate anywhere within the outside coal boundaries of:

(1) an operating coal mine; or

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

yet being operated, for which a technically complete mine

permit application has been filed with the department or

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

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

the reasonable opinion of the coal owner or operator,

endanger the mine, the coal owner or operator affected shall

have the right to file objections in accordance with section

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

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

location at which the proposed well could be drilled to overcome

objections under this section shall be indicated.

(d) Failure to object.--If no objection to the proposed

location is filed under this section or if none is raised by the

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

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

owner of the location is filed with the department and no

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

the department shall proceed to issue or deny the permit.

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

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

shall fix a time and place for a conference under section 501

not more than 10 days from the date of service of the objection

to allow the parties to consider the objection and attempt to

agree on a location. If the parties fail to agree, the

department, by an appropriate order, shall determine a location

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

possible where, in the judgment of the department, the well can

be safely drilled without unduly interfering with or endangering

the mine as defined in subsection (b). The new location agreed

upon by the parties or determined by the department shall be

indicated on the plat on file with the department and become a

permanent record upon which the department shall proceed to

issue or deny the permit.

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

operations, the coal operator shall accurately locate the well

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

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

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

operator.

Section 303. Well adoption and identification.

(a) General rule.--Each person who owns or operates a well

in existence prior to the effective date of this section, which

has not been registered with the department and for which no

drilling permit has been issued by the department, shall apply

to adopt the well using forms developed by the department. No

fee shall be charged for well adoption unless the well must also

be altered in accordance with section 301 prior to operation.

(b) Orphan and abandoned wells.--A well owner, well operator

or other person discovering an abandoned well on property

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

person shall identify it to the department within 60 days of

discovery and advise the department that the operator is seeking

classification of the well as an orphan well or abandoned well.

The classification request shall include any available

information relating to the well's operating and ownership

interests. No fee shall be required for identification.

diligence to avoid inadvertent communication with abandoned,

orphan, plugged, active and inactive wells during hydraulic

fracturing by conducting an area of review investigation

consisting of the following:

(1) Review of records and reports.

(2) Field investigation.

(3) Nontrespass monitoring of orphan and abandoned

wells.

The area of review shall consist of the area of the operator's

20190SB0790PN1051 - 22 -

oil and gas operating interest within half the well field

spacing of a vertical well or half the well field distances of

the lateral portion of a horizontal conventional well.

(d) Notice.--An operator shall provide notice to the

department as soon as practicable if a well undergoing hydraulic

fracturing communicates with any abandoned, orphan, plugged,

active or inactive well in a manner that has the potential to

cause an adverse environmental, public health or safety impact.

In a coal area in which the affected well is within an active

mine or 2,000 linear feet or less from an active mine, the coal

operator shall also be notified as soon as practicable.

(e) Remedial actions.--An operator inadvertently

communicating with any abandoned, orphan, plugged, active or

inactive well shall implement remedial actions necessary to

prevent pollution and protect the environment, public health and

safety. Remedial actions may include, but are not limited to,

cessation of hydraulic fracturing and plugging.

(f) Permit required.--A person who proposes to operate an

orphan or abandoned well affected by hydraulic fracturing

operations shall first obtain a permit to adopt and operate the

well in accordance with subsection (a) if the well complies with

the spacing requirements in coal areas under the act of December

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

Coordination Act, or for wells subject to the act of July 25,

1961 (P.L.825, No.359), known as the Oil and Gas Conservation

Law.

(g) Regulations.--The Environmental Quality Board shall have

the authority to adopt regulations regarding the area of review

provisions under subsections (c), (d) and (e).

Section 304. Inactive status.

20190SB0790PN1051 - 23 -

(a) General rule.--Within 60 days of receipt of an

application for inactive status, the department may grant

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

registered well, if the following requirements are met:

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

damage to the producing zone or contamination of fresh water

or other natural resources or surface leakage of any

substance;

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

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

adequate to protect freshwater aquifers, unless the

department determines the well poses a threat to the health

and safety of persons or property or to the environment;

(3) the operator anticipates construction of a pipeline

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

gas storage, approved disposal or other appropriate uses

related to oil and gas well production; and

(4) the applicant satisfies the bonding requirements of

sections 303 and 316.

(b) Determination.--If the department has not made a final

determination on an application for inactive status within 60

days, the well will be considered inactive for purposes of

compliance with the reporting requirements under this chapter

until the department makes a final determination on the

application for inactive status.

inactive status shall:

(1) be responsible for monitoring the mechanical

integrity of the well to ensure that the requirements of

subsection (a)(1) and (2) are met;

20190SB0790PN1051 - 24 -

(2) submit a report on an annual basis to the department

in a manner and form as provided by the department that

demonstrates that the well complies with subsection (a)(1),

(2) and (3); and

(3) if granted under subsection (a), immediately notify

the department when the well no longer meets the requirements

of subsection (a) and plug the well in accordance with

section 311 or repair the well in order to meet the

requirements of subsection (a)(1) and (2).

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

under subsection (a) or (b) shall be plugged in accordance with

section 311 or returned to active status within five years of

the date inactive status commenced, unless the owner or operator

applies for an extension of inactive status which may be granted

once for up to five years if the department determines that the

owner or operator has demonstrated an ability to continue

meeting the requirements of this section and the owner or

operator certifies that the well will be of future use within a

reasonable period of time. An owner or operator who has been

granted inactive status for a well which is returned to active

status prior to expiration of the five-year period set forth in

subsection (a) shall notify the department that the well has

been returned to active status and shall not be permitted to

apply for another automatic five-year period of inactive status

for the well. The owner or operator may make an application to

return the well to inactive status, and the application may be

approved on a year-to-year basis if the department determines

that the owner or operator has demonstrated an ability to

continue meeting the requirements of this section and the owner

or operator certifies that the well will be of future use within

20190SB0790PN1051 - 25 -

a reasonable period of time. The department shall approve or

deny an application to extend a period of inactive status or to

return a well to inactive status within 60 days of receipt of

the application, and the application shall not be unreasonably

denied. If the department has not completed its review of the

application within 60 days, the inactive status shall continue

until the department has made a determination on the request. An

owner or operator may under no circumstances extend the total

period of inactive status for a well beyond 10 years unless the

operator files a bond on forms prescribed by the department in

an amount sufficient to plug the well and restore the well site

as determined by the department. A bond filed for an inactive

status well shall be payable to the Commonwealth and conditioned

on the operator's faithful performance of all water supply

replacement, restoration and plugging requirements of this

chapter. If the department denies an application to extend the

period of inactive status or to return a well to inactive

status, a well owner or operator aggrieved by the denial shall

have the right to appeal the denial to the Environmental Hearing

Board within 30 days of receipt of the denial. Upon cause shown

by a well owner or operator, the board may grant a supersedeas

under section 4 of the act of July 13, 1988 (P.L.530, No.94),

known as the Environmental Hearing Board Act, so that the well

in question may retain inactive status during the period of the

appeal.

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

revoke inactive status and order immediate plugging of a well if

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

promulgated under this chapter or if the owner or operator

demonstrates inability to perform obligations under this chapter

20190SB0790PN1051 - 26 -

or becomes financially insolvent, or upon receipt by the

department of notice of bankruptcy proceedings by the permittee.

Section 305. Well location restrictions.

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

measured horizontally from the vertical well bore to a building

or water well, existing when the copy of the plat is mailed as

required by section 301(b) without written consent of the owner

of the building or water well. If consent is not obtained and

the distance restriction would deprive the owner of the oil and

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

underlying the surface tract, the well operator shall be granted

a variance from the distance restriction upon submission of a

plan identifying the additional measures, facilities or

practices as prescribed by the department to be employed during

well site construction, drilling and operations. The variance

shall include additional terms and conditions required by the

department to ensure safety and protection of affected persons

and property, including insurance, bonding, indemnification and

technical requirements. Notwithstanding section 301(e), if a

variance request has been submitted, the department may extend

its permit review period for up to 15 days upon notification to

the applicant of the reasons for the extension.

(b) Limitation.--

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

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

edge of the well site, whichever is greater, measured

horizontally from any solid blue lined stream, spring or body

of water as identified on the most current 7.5-minute

topographic quadrangle map of the United States Geological

Survey or within 100 feet of any wetlands greater than one

20190SB0790PN1051 - 27 -

acre in size.

(2) The department may waive the distance restrictions

upon submission of a plan identifying additional measures,

facilities or practices to be employed during well site

construction, drilling and operations necessary to protect

the waters of the Commonwealth. The waiver, if granted, shall

include additional terms and conditions required by the

department necessary to protect the waters of the

Commonwealth. Notwithstanding section 301(e), if a waiver

request has been submitted, the department may extend its

permit review period for up to 15 days upon notification to

the applicant of the reasons for the extension.

department shall consider the impact of the proposed well on

public resources, including:

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

wildlife areas.

(2) National or State scenic rivers.

(3) National natural landmarks.

(4) Habitats of threatened and endangered flora and

fauna that are listed in a final rulemaking by a Federal or

State agency with the statutory authority to list species for

protection.

(5) Historical and archaeological sites listed on the

Federal or State list of historic places.

(6) Sources used for public drinking supplies in

accordance with subsection (b).

(d) Limitation.--The department's consideration of impacts

to public natural resources under subsection (c)(1) is limited

to publicly owned property for which the Commonwealth has

20190SB0790PN1051 - 28 -

trustee obligations and does not alter or affect the dominance

of the subsurface estate or the rights of oil and gas owners to

optimize the development of their subsurface property.

(e) Standard of proof.--Any permit conditions imposed under

this section must be based upon clear and convincing evidence of

long term adverse impact to a public resource and shall be

developed in accordance with section 301(e).

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

shall develop the following criteria by regulation:

(1) For the department to utilize for conditioning a

well permit based on its impact to the public resources

identified under subsection (c) and for ensuring optimal

development of oil and gas resources and respecting property

rights of oil and gas owners.

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

permit containing conditions imposed by the department. The

regulations shall also provide that the department has the

burden of proving that the conditions were necessary to

protect against a probable harmful impact of the public

resources.

(g) Floodplains.--

(1) At well sites located within floodplains, water,

chemicals, fuels, hazardous materials or solid waste may be

stored temporarily during drilling or completion in

accordance with best practices. After the effective date of

this section, no permanent tank location may be constructed

within a floodplain without a waiver.

(2) The department may waive a restriction under this

act upon a permanent tank location upon submission of a plan

that shall identify the additional measures, facilities or

20190SB0790PN1051 - 29 -

practices to be employed. The waiver, if granted, shall

impose permit conditions necessary to protect the waters of

the Commonwealth.

(h) Best practices required.--

(1) Best practices as determined by the department to

ensure the protection of the waters of the Commonwealth must

be utilized for the storage and handling of all water,

chemicals, fuels, hazardous materials or solid waste on a

well site located in a floodplain. The department may request

that the well site operator submit a plan for the storage and

handling of the materials for approval by the department and

may impose conditions or amend permits to include permit

conditions as are necessary to protect the environment,

public health and safety.

(2) Unless otherwise specified by the department, the

boundary of the floodplain shall be as indicated on maps and

flood insurance studies provided by the Federal Emergency

Management Agency. In an area where no Federal Emergency

Management Agency maps or studies have defined the boundary

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

contrary, the floodplain shall extend from:

(i) any perennial stream up to 100 feet horizontally

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

(ii) any intermittent stream up to 50 feet

horizontally from the top of the bank of the intermittent

stream.

(i) Applicability.--

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

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

well permit has been issued prior to the effective date of

20190SB0790PN1051 - 30 -

this section.

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

terms of any contract, mortgage or other agreement entered

into prior to the effective date of this section.

Section 306. Well site restoration.

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

shall restore the land surface within the area disturbed in

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

Unless a landowner's consent is obtained, restoration shall

include, but is not limited to, reclamation of the land affected

to preconstruction contours so that it:

(1) closely resembles the general surface configuration

of the land prior to construction activities, if known;

(2) blends into and complements the drainage pattern of

the surrounding terrain; and

(3) supports the land uses that existed prior to the

applicable oil and gas operations and to the extent

practicable based on current land conditions.

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

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

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

erosion and sedimentation control and storm water management

measures shall be implemented in accordance with a plan prepared

in accordance with the act of June 22, 1937 (P.L.1987, No.394),

known as The Clean Streams Law. For purpose of determining the

five-acre permit threshold under The Clean Streams Law, the well

site project includes only the construction of the well site and

new portions of access roads; well sites and new portions of

access roads concurrently under construction along an existing

common access road are to be considered part of the same well

20190SB0790PN1051 - 31 -

site project. Existing well sites restored prior to drilling and

completing the wells are not considered to be part of new well

site projects.

months after the completion of drilling of a well or expiration

of the well permit, the owner or operator shall restore the well

site and remove or fill all pits used to contain produced fluids

or industrial wastes and remove all drilling supplies and

equipment not needed for production. Drilling supplies or other

equipment required for future repairs, operations or drilling

upon the oil and gas premises of which the well site is a

portion may be stored on the well site consistent with the

property rights of the owner of the oil and gas resources or if

the express written consent of the surface landowner is

obtained.

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

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

all production or storage facilities, supplies and equipment and

restore the well site.

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

under this act or in regulations promulgated under this act

shall also comply with all applicable provisions of The Clean

Streams Law.

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

required under this act or regulations promulgated under this

act constitutes a violation of this chapter.

(g) Extension.--

(1) The restoration period may be extended by the

department for an additional period of time not to exceed two

years upon demonstration by the well owner or operator that:

20190SB0790PN1051 - 32 -

(i) the extension will result in less earth

disturbance, increased water reuse or more efficient

development of the resources; or

(ii) site restoration cannot be achieved due to

adverse weather conditions or a lack of essential fuel,

equipment or labor.

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

of the following:

(i) Include a site restoration plan that shall

provide for:

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

to contain produced fluids or industrial wastes;

(B) the removal of all drilling supplies and

equipment not needed for production;

shall include interim postconstruction storm water

management best management practices; or

(D) other measures to be employed to minimize

accelerated erosion and sedimentation in accordance

with The Clean Streams Law.

(ii) Provide for restoring the portions of the site

not occupied by production facilities or equipment

consistent with subsection (a).

(3) The department may condition an extension under this

subsection as is necessary in accordance with The Clean

Streams Law.

Section 307. Protection of fresh groundwater and casing

requirements.

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

groundwater, well operators shall control and dispose of brines

20190SB0790PN1051 - 33 -

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

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

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

regulation promulgated under The Clean Streams Law.

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

sources of fresh groundwater and pollution or diminution of

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

and permanently cemented in each well drilled through the fresh

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

regulation by the department. The regulation shall be consistent

with practices that have proven to be protective in regional

areas and consider the use of alternative cement formulations

and casing materials to protect the casing from corrosion,

lithologic and physical conditions of the surrounding well bore.

be employed as production casing for oil or gas production,

provided:

(1) The operator pumps a volume of cement equal to or

greater than 120% of the calculated annular space.

(2) The operator circulates cement using the

displacement method.

(3) The location of cement within the annular space, as

determined by logging, and the function of the casing string

satisfy the requirements of subsection (b) and other

regulations prescribed by the department. To achieve

sufficient cement coverage in the annular space, the operator

may install a cement basket immediately above the depth of an

anticipated lost circulation zone and fill the annular space

by pumping from the surface if a casing and cementing plan

detailing the procedure is approved by the department.

20190SB0790PN1051 - 34 -

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

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

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

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

been removed in a manner prescribed by regulation of the

department. The department and the coal operator, owner or

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

commencement of work protecting the mine.

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

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

the casing shall be installed and permanently cemented in a

manner prescribed by regulation to exclude gas or fluids from

the coal seam, except gas or fluids found naturally in the seam

itself, and to enable monitoring the integrity of the production

casing.

Section 308. Protection of water supplies.

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

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

private water supply by pollution or diminution shall restore or

replace the affected supply with an alternate source of water

adequate in quantity or quality for the purposes served by the

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

be deemed adequate if it meets the standards established under

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

Pennsylvania Safe Drinking Water Act, or is comparable to the

quality of the water supply before it was affected by the

operator if that water supply did not meet these standards. The

Environmental Quality Board shall promulgate regulations

necessary to meet the requirements of this subsection.

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

20190SB0790PN1051 - 35 -

water purveyor suffering pollution or diminution of a water

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

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

an investigation be conducted. Within 10 days of notification,

the department shall investigate the claim and make a

determination within 45 days following notification. If the

department finds that the pollution or diminution was caused by

drilling, alteration or operation activities or if it presumes

the well operator responsible for pollution under subsection

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

necessary to assure compliance with subsection (a), including

orders requiring temporary replacement of a water supply where

it is determined that pollution or diminution may be of limited

duration.

(b.1) (Reserved).

(b.2) Telephone number.--The department shall establish a

single Statewide toll-free telephone number that persons may use

to report cases of water contamination which may be associated

with the development of oil and gas resources. The Statewide

toll-free telephone number shall be provided in a conspicuous

manner in the notification required under section 301(b) and on

the department's publicly accessible Internet website.

(b.3) Responses.--The department shall develop appropriate

administrative responses to calls received on the Statewide

toll-free telephone number for water contamination.

(b.4) Website.--The department shall publish, on its

publicly accessible Internet website, lists of confirmed cases

of subterranean water supply contamination that result from

hydraulic fracturing.

(b.5) Facility operation qualifications.--The department

20190SB0790PN1051 - 36 -

shall ensure that a facility which seeks a National Pollutant

Discharge Elimination System permit for the purposes of treating

and discharging wastewater originating from oil and gas

activities into waters of the Commonwealth is operated by a

competent and qualified individual.

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

responsible for pollution of a water supply if:

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

gas well; and

(2) the pollution occurred within six months after

completion of drilling or alteration of the oil or gas well.

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

the rebuttable presumption area as provided in subsection (c)

and the rebuttable presumption applies, the operator shall

provide a temporary water supply if the water user is without a

readily available alternative source of water. The temporary

water supply provided under this subsection shall be adequate in

quantity and quality for the purposes served by the supply.

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

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

the following:

(1) the pollution existed prior to the drilling or

alteration activity as determined by a predrilling or

prealteration survey;

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

operator access to conduct a predrilling or prealteration

survey;

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

well;

20190SB0790PN1051 - 37 -

(4) the pollution occurred more than six months after

completion of drilling or alteration activities; and

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

other than the drilling or alteration activity.

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

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

retain an independent certified laboratory to conduct a

predrilling or prealteration survey of the water supply. A copy

of survey results shall be submitted to the department and the

landowner or water purveyor in the manner prescribed by the

department.

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

prevent a landowner or water purveyor claiming pollution or

diminution of a water supply from seeking any other remedy at

law or in equity.

Section 309. Use of safety devices.

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

it with casings of sufficient strength, and other safety devices

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

department, and shall use every effort and endeavor effectively

to prevent blowouts, explosions and fires.

Section 310. Well control emergency response.

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

well control specialists in order to provide adequate emergency

response services in the event of a well control emergency. The

department shall make available, upon request by a county,

information relating to contracts with well control specialists.

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

a well control specialist with which the department has entered

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

20190SB0790PN1051 - 38 -

liability for actions taken in good faith to carry out its

contractual obligations.

damage arising from any of the following:

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

(2) An intentional tort.

(3) Gross negligence.

Section 311. Plugging requirements.

(a) General rule.--Conventional wells shall be plugged in

accordance with this act. Prior to abandoning a well, the owner

or operator shall plug it in the manner prescribed by regulation

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

the well bore, unless the department has determined that the

flow is an acceptable artesian flow of freshwater, the well is

on inactive status or it has been approved by the department as

an orphan well. If the department determines that a prior owner

or operator received economic benefit, other than economic

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

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

well, the owner or operator shall be responsible for plugging

the well. In the case of a gas well penetrating a workable coal

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

permitted after that date but not plugged in accordance with

this chapter, if the owner or operator or a coal operator or an

agent proposes to plug the well to allow mining through it, the

gas well shall be cleaned to a depth of at least 200 feet below

the coal seam through which mining is proposed and, unless

impracticable, to a point 200 feet below the deepest mineable

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

accordance with section 13 of the act of December 18, 1984

20190SB0790PN1051 - 39 -

(P.L.1069, No.214), known as the Coal and Gas Resource

Coordination Act, and the regulations of the department.

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

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

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

the coal operator, lessee or owner and submit a plat showing the

location of the well and fixing the date and time plugging will

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

more than 30 days, after the notice is received, to permit

representatives of the persons notified to be present at the

plugging. Notice and the right to be present may be waived by

the department and the coal operator, lessee or owner, but

waiver by the coal operator, lessee or owner shall be in writing

and a copy shall be attached to the notice of abandonment filed

with the department under this section. Whether or not

representatives attend, if the well operator has fully complied

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

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

of the department. When plugging has been completed, a

certificate shall be prepared and signed, on a form to be

furnished by the department, by two experienced and qualified

people who participated in the work setting forth the time and

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

certificate shall be mailed to each coal operator, lessee or

owner to whom notice was given by certified mail and another

shall be mailed to the department.

an uncompleted bore hole plugged immediately upon suspension of

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

well operator shall notify the department of the intention to

20190SB0790PN1051 - 40 -

plug and abandon the well and submit a plat showing the location

of the well and fixing the date and time at which plugging will

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

more than 30 days, after the notice is received, to permit a

department representative to be present at the plugging. The

notice or waiting period may be verbally waived by the

department. In noncoal areas where more than one well has been

drilled as part of the same development project and the wells

are now to be plugged, the department shall be given three

working days' notice prior to plugging the first well of the

project, subject to waiver of notice described in subsection

(b). In the plugging of subsequent wells, no additional notice

shall be required if plugging on the project is continuous. If

plugging of subsequent wells is delayed for any reason, notice

shall be given to the department of continuation of the project.

Whether or not a representative attends, if the well operator

has fully complied with this section, the well operator may

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

prescribed by regulation of the department. When plugging has

been completed, a certificate shall be prepared, on a form to be

furnished by the department, by two experienced and qualified

people who participated in the work setting forth the time and

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

shall be mailed to the department.

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

is to be abandoned immediately after completion of drilling, the

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

certified mail, to the department and to the coal operator,

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

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

20190SB0790PN1051 - 41 -

by the department and the coal operator, lessee or owner, if

any. Whether or not representatives of the department or coal

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

has fully complied with the requirements of this section, the

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

in the manner provided by regulation of the department. The well

operator shall prepare the certificate of plugging and mail

copies of the same as provided in subsection (b).

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

or abandoned without plugging or if a well is in operation but

not registered, the department may enter upon the well site and

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

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

recover the costs of plugging. The department shall make an

effort to determine ownership of a well which is in operation

but has not been registered and provide written notice to the

owner of pending action under this subsection. If the department

cannot determine ownership within 30 days, it may proceed under

this subsection. Costs of plugging shall have priority over all

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

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

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

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

owner or operator of the abandoned or unregistered well shall be

liable for the additional costs.

(f) Environmental good Samaritans.--A person is not subject

to liability for environmental remediation related to an orphan

well or abandoned well without a responsible owner or operator

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

person obtains approval from the department to plug an orphan

20190SB0790PN1051 - 42 -

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

abandoned well without a responsible owner or operator with

approval from the department under 27 Pa.C.S. Ch. 81 (relating

to good Samaritan), including by way of a grant or payment from

the Commonwealth Financing Authority, is not subject to the

notice requirements of 27 Pa.C.S. § 8105(b) (relating to

eligibility and project inventory), provided that the surface

landowner is notified and grants access to the well. Notice to

the department and the surface landowner shall be provided on

forms developed by the department. When plugging has been

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

to be furnished by the department by two experienced and

qualified individuals who participated in the work and set forth

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

certificate shall be provided to the department.

(g) Persons who voluntarily plug an orphan or abandoned well

in accordance with this section.--In addition to the categories

of grants available through the Commonwealth Financing Authority

from revenue deposited into the Marcellus Legacy Fund under 58

Pa.C.S. § 2315(a.1)(1) (relating to Statewide initiatives),

persons who voluntarily plug an orphan or abandoned well without

a responsible owner or operator may also apply to the

Commonwealth Financing Authority for a grant and the following

shall apply:

(1) The Commonwealth Financing Authority shall not

provide any grant under this section unless the department

certifies that the well was plugged in accordance with law on

forms developed by the department.

(2) The Commonwealth Financing Authority shall give

priority consideration to grant applications submitted under

20190SB0790PN1051 - 43 -

this section and may annually award grants, subject to the

availability of funds, in the following amounts, which shall

be adjusted annually from the effective date of this section

to reflect increases in the Consumer Price Index:

(i) for each well 2,000 feet or less below ground

surface, $10,000;

(ii) for each well between 2,001 and 3,000 feet

below ground surface, $20,000; or

(iii) for each well greater than 3,000 feet below

ground surface, $30,000.

(h) Liability protection.--A person who voluntarily plugs an

orphan well or abandoned well without a responsible owner or

operator and receives payment under this section shall not be

disqualified from liability protections under 27 Pa.C.S. Ch. 81.

(i) Notification.--With respect to the owner of a workable

coal seam, if any, notification shall be accomplished under this

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

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

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

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

located. If certified mail or notification is returned

undeliverable, the applicant shall include a completed affidavit

attesting to the attempted delivery, which shall satisfy the

notification requirements under this section.

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

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

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

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

the drilling or extraction operation of the abandoned well.

Section 312. Alternative methods.

20190SB0790PN1051 - 44 -

A well operator may request permission to use a method or

material other than those required by this chapter and

applicable regulations for casing, plugging or equipping a well

in an application to the department which describes the proposed

alternative in reasonable detail and indicates the manner in

which it will accomplish the goals of this chapter. Notice of

filing of the application shall be given by the well operator by

certified mail to any affected coal operators, who may, within

15 days after the notice, file objections to the proposed

alternative method or material. If no timely objections are

filed or raised by the department, the department shall

determine whether to allow use of the proposed alternative

method or material.

Section 313. Well reporting requirements.

(a) General rule.--Each well operator shall file with the

department, on a form provided by the department, an annual

report specifying the amount of production, on the most well-

specific basis available, along with the status of each well,

except that in subsequent years only changes in status must be

reported. The Commonwealth may utilize reported information in

enforcement proceedings, in making designations or

determinations under section 1927-A of the act of April 9, 1929

(P.L.177, No.175), known as The Administrative Code of 1929, or

in aggregate form for statistical purposes.

(b) Collection of data.--

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

drilled or altered.

(2) A record containing the information required by the

department shall be filed within 30 days after drilling of a

well.

20190SB0790PN1051 - 45 -

(3) Within 30 days after completion of the well, when

the well is capable of production, a completion report

containing any additional required information shall be filed

and shall be maintained by the department.

(4) The well operator shall, within 90 days of

completion or recompletion of drilling, submit a copy of any

electrical, radioactive or other standard industry logs which

have been run.

(5) Upon request by the department within one year, the

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

formation water analysis, porosity, permeability or fluid

saturation measurements, core analysis and lithologic log or

sample description or other similar data as compiled. No

information shall be required unless the well operator had it

compiled in the ordinary course of business, and

interpretation of data under this paragraph is not required

to be filed.

(b.1) Report contents.--

(1) The completion report shall contain the operator's

stimulation record. The stimulation record shall include all

of the following:

(i) A descriptive list of the chemical additives in

the stimulation fluids, including any acid, biocide,

breaker, brine, corrosion inhibitor, crosslinker,

demulsifier, friction reducer, gel, iron control, oxygen

scavenger, Ph adjusting agent, proppant, scale inhibitor

and surfactant.

(ii) The trade name, vendor and a brief descriptor

of the intended use or function of each chemical additive

in the stimulation fluid.

20190SB0790PN1051 - 46 -

(iii) A list of the chemicals intentionally added to

the stimulation fluid, by name and chemical abstract

service number.

(iv) The maximum concentration, in percent by mass,

of each chemical intentionally added to the stimulation

fluid.

(v) The total volume of the base fluid.

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

(vii) The total volume of recycled water used.

(2) The well record shall identify whether methane was

encountered in other than a target formation.

(b.2) Trade secret or confidential proprietary

information.--When an operator submits its stimulation record

under subsection (b.1), the operator may designate specific

portions of the stimulation record as containing a trade secret

or confidential proprietary information. The department shall

prevent disclosure of a designated trade secret or confidential

proprietary information to the extent permitted by the act of

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

or other applicable State law.

the department prior to commencement of drilling, the well

operator shall collect any additional data specified by the

department, including representative drill cuttings and samples

from cores taken and any other geological information that the

operator reasonably can compile. Interpretation of the data is

not required to be filed.

(d) Retention and filing.--Data required under subsection

(b)(5) and drill cuttings required under subsection (c) shall be

retained by the well operator and filed with the department no

20190SB0790PN1051 - 47 -

more than three years after completion of the well. Upon

request, the department shall extend the deadline up to five

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

shall be entitled to utilize information collected under this

subsection in enforcement proceedings, in making designations or

determinations under section 1927-A of The Administrative Code

of 1929 and in aggregate form for statistical purposes.

Section 314. Notification and effect of well transfer.

The owner or operator of a well shall notify the department

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

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

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

or operator of an obligation accrued under this chapter, nor

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

the well until the requirements of section 316 have been met, at

which time the transferring owner or operator shall be relieved

from all obligations under this chapter, including the

obligation to plug the well.

Section 315. Coal operator responsibilities.

(a) General rule.--

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

underground material or extending the workings in a coal mine

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

operator has knowledge or an approved well location of which

the coal operator has knowledge, the coal operator shall

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

operator and the department a copy of the relevant part of

the coal operator's maps and plans which is presently

required by law to be prepared and filed with the department,

showing the pillar which the coal operator proposes to leave

20190SB0790PN1051 - 48 -

in place around each oil or gas well in the projected

workings.

(2) Following the filing of maps and plans under

paragraph (1), the coal operator may proceed with mining

operations in the manner projected on the maps and plans. The

coal operator shall not remove any coal or cut any passageway

within 150 feet of a well or approved well location until

written approval has been granted as provided under this

section.

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

department, the plan indicates that the pillar proposed to be

left around a well or approved well location is inadequate to

protect either the integrity of the well or the public health

and safety, the well operator affected shall attempt to agree

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

approval of the department. If the parties fail to agree, the

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

file objections to the proposed plan in accordance with

section 501, indicating the size of the pillar to be left

with respect to each well.

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

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

grant approval to the coal operator, which shall document the

following:

(i) The filing of the maps or plans.

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

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

well is approved in the manner as projected.

(b) Objections.--

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

20190SB0790PN1051 - 49 -

raised by the department, the department shall direct that a

conference be held in accordance with section 501 within 10

days of the filing of the objections.

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

who has filed the objections shall attempt to agree upon a

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

which will satisfy the objections and be approved by the

department. If the plan is agreed upon, the department shall

grant approval to the coal operator reciting the filing of

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

approved as agreed upon.

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

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

the department shall, by an appropriate order, determine the

pillar to be left with respect to the well.

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

shall follow as nearly as possible the original plan filed by

the coal operator. The department shall not require the coal

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

unless the department establishes that unusual conditions

exist requiring the leaving of a larger pillar. The

department may require a pillar up to, but not exceeding, 150

feet in radius if the department establishes the existence of

unusual conditions.

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

determined by the department shall be shown on the maps or

plans on file with the department as provided under

subsection (a) and the department shall approve the pillar to

be left for each well.

20190SB0790PN1051 - 50 -

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

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

approved or determined by the department under the provisions of

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

following the procedure prescribed in this section, by an

appropriate order, determine a different plan showing a pillar

of less size with respect to all wells covered by the

application and shall grant approval for the pillar to be left

with respect to each well.

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

approval of the department after notice and opportunity for

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

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

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

act.

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

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

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

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

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

not in any way affect:

(1) the rights which the coal operator would have had

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

(2) any duty or right which the well operator or land

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

to pay for the coal.

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

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

plan to completely remove a pillar from around the well in

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

20190SB0790PN1051 - 51 -

the requirements of this section. No coal operator may mine

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

knowledge until written approval has been granted by the

department in accordance with this section.

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

Safety in the department shall have the authority to establish

the conditions under which the department may approve a coal

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

Section 316. Bonding.

(a) General rule.--

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

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

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

department a bond for the well and the well site on a form to

be prescribed by the department. No bond or bond substitute

shall be required for any well drilled prior to April 18,

1985, where the well would have otherwise been subject to the

bonding requirements of section 215 or 603.1 of the former

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

and Gas Act. A bond filed with an application for a well

permit shall be payable to the Commonwealth and conditioned

that the operator shall faithfully perform all of the

drilling, water supply replacement, restoration and plugging

requirements of this act. A bond filed with the department

for a well in existence after April 18, 1985, shall be

payable to the Commonwealth and conditioned that the operator

shall faithfully perform all of the water supply replacement,

restoration and plugging requirements of this act. The amount

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

well for at least two years following the effective date of

20190SB0790PN1051 - 52 -

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

the Environmental Quality Board every two years to reflect

the projected costs to the Commonwealth of performing well

plugging.

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

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

the department, covering all of the owner's or operator's

wells in Pennsylvania as enumerated on the bond form. A

blanket bond shall be in the amount of $25,000 for at least

two years following the effective date of this act, after

which time the bond amount may be adjusted by the

Environmental Quality Board every two years to reflect the

projected costs to the Commonwealth of performing well

plugging. An adjustment may not exceed the prior amount by

more than $10,000.

(3) Liability under the bond shall continue until the

well has been properly plugged in accordance with this

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

certificate of plugging with the department. Each bond shall

be executed by the operator and a corporate surety licensed

to do business in this Commonwealth and approved by the

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

deposit with the department:

(i) cash;

(ii) certificates of deposit or automatically

renewable irrevocable letters of credit, from financial

institutions chartered or authorized to do business in

this Commonwealth and regulated and examined by the

Commonwealth or a Federal agency, which may be terminated

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

20190SB0790PN1051 - 53 -

notice by the financial institution to the permittee and

the department;

(iii) negotiable bonds of the United States

Government or the Commonwealth, the Pennsylvania Turnpike

Commission, the General State Authority, the State Public

School Building Authority or any municipality within the

Commonwealth; or

(iv) United States Treasury Bonds issued at a

discount without a regular schedule of interest payments

to maturity, otherwise known as Zero Coupon Bonds, having

a maturity date of not more than 10 years after the date

of purchase and at the maturity date having a value of

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

The cash deposit, certificate of deposit, amount of the

irrevocable letter of credit or market value of the

securities shall be equal at least to the sum of the

bond.

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

cash, letters of credit or negotiable bonds, immediately

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

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

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

is made.

(5) The State Treasurer shall at all times be

responsible for custody and safekeeping of deposits. The

operator making the deposit shall be entitled from time to

time to demand and receive from the State Treasurer, on the

written order of the secretary, the whole or any portion of

collateral deposited, upon depositing with the State

Treasurer, in lieu of that collateral, other collateral of

20190SB0790PN1051 - 54 -

classes specified in this section having a market value at

least equal to the sum of the bond, and also to demand,

receive and recover the interest and income from the

negotiable bonds as they become due and payable.

(6) If negotiable bonds on deposit under this subsection

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

the owner of the bonds, shall convert them into other

negotiable bonds, of classes specified in this section,

designated by the owner.

(7) If notice of intent to terminate a letter of credit

is given, the department shall give the operator 30 days'

written notice to replace the letter of credit with other

acceptable bond guarantees as provided in this section. If

the owner or operator fails to timely replace the letter of

credit, the department shall draw upon and convert the letter

of credit into cash and hold it as a collateral bond

guarantee.

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

requirements of subsection (a) and section 314 have been fully

met. Upon release of bonds and collateral under this section,

the State Treasurer shall immediately return to the owner the

specified amount of cash or securities.

refuses to comply with subsection (a), regulations promulgated

under this chapter or conditions of a permit relating to this

chapter, the department may declare the bond forfeited and shall

certify the same to the Attorney General, who shall proceed to

enforce and collect the full amount of the bond and, if the well

owner or operator has deposited cash or securities as collateral

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

20190SB0790PN1051 - 55 -

collateral forfeited and direct the State Treasurer to pay the

full amount of the funds into the Well Plugging Restricted

Revenue Account or to sell the security to the extent forfeited

and pay the proceeds into the Well Plugging Restricted Revenue

Account. If a corporate surety or financial institution fails to

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

or financial institution shall be disqualified from writing

further bonds under this chapter or any other environmental law

administered by the department. A person aggrieved by reason of

forfeiting the bond or converting collateral, as provided in

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

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

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

sites, the person whose bond is forfeited shall, within 10 days

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

wells of which the person is an owner or operator. Failure to

submit the replacement bond constitutes a violation of this

section as to each of the wells owned or operated by the person.

(d) Reservation of remedies.--All remedies for violations of

this chapter, regulations adopted under this chapter and

conditions of permits are expressly preserved. Nothing in this

section shall be construed as an exclusive penalty or remedy for

violations of law. No action taken under this section shall

waive or impair any other remedy or penalty provided in law.

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

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

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

retroactive basis as a condition of obtaining a permit under

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

this chapter.

20190SB0790PN1051 - 56 -

CHAPTER 5

ENFORCEMENT AND REMEDY

Section 501. Conferences.

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

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

time, request that a conference be held to discuss and attempt

to resolve by mutual agreement a matter arising under this

chapter. Unless otherwise provided, conferences shall be held

within 90 days after a request is received by the department,

and notice shall be given by the department to all interested

parties. A representative of the department shall attend the

conference and the department may make recommendations. An

agreement reached at a conference shall be consistent with this

chapter and, if approved by the department, it shall be reduced

to writing and shall be effective, unless reviewed and rejected

by the department within 10 days after the conference. The

record of an agreement approved by the department shall be kept

on file by the department and copies shall be furnished to the

parties. The scheduling of a conference shall have no effect on

the department's authority to issue orders to compel compliance

with this chapter.

(b) Notification.--When a coal operator is to be notified of

a proceeding under this section, the department simultaneously

shall send a copy of the notice to the collective bargaining

representative of employees of the coal operator.

Section 502. Public nuisances.

A violation of section 307, 308, 309 or 311, or a regulation,

order, term or condition of a permit relating to any of those

sections constitutes a public nuisance.

Section 503. Enforcement orders.

20190SB0790PN1051 - 57 -

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

enforcement of this chapter. An order issued under this chapter

shall take effect upon notice, unless the order specifies

otherwise. The power of the department to issue an order under

this chapter is in addition to any other remedy available to the

department under this chapter or under any other law.

(b) Suspension and revocation.--

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

or well registration for any well in continuing violation of

one of the following for which the likely result of the

violation is an unsafe operation or environmental damage:

(i) This chapter.

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

known as The Clean Streams Law.

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

known as the Solid Waste Management Act.

(iv) Any other statute administered by the

department.

(2) A suspension order of the department shall

automatically terminate if the violation upon which it is

based is corrected by the operator to the satisfaction of the

department in order to bring the well into compliance with

this chapter.

well permit or registration, the department shall serve written

notice on the well operator or its agent, stating specifically

the statutory provision, regulation or other reason relied upon,

along with factual circumstances surrounding the alleged

violation. If the department suspends or revokes the permit or

20190SB0790PN1051 - 58 -

registration, the department may order the operator to cap the

well if the likely result of the violation is an unsafe

operation or environmental damage.

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

immediate cessation of drilling operations shall be effective

only if authorized by the secretary or a designee.

(e) Grievances.--A person aggrieved by a department order

issued under this section shall have the right, within 30 days

of receipt of the notice, to appeal to the Environmental Hearing

Board.

Section 504. Restraining violations.

(a) General rule.--In addition to any other remedy provided

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

in the name of the Commonwealth for an injunction to restrain a

violation of this chapter or rules, regulations, standards or

orders adopted or issued under this chapter and to restrain the

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

Commonwealth, the court shall issue a prohibitory or mandatory

preliminary injunction if it finds that the defendant is

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

conduct causing immediate and irreparable harm to the public.

The Commonwealth shall not be required to furnish bond or other

security in connection with the proceeding. In addition to an

injunction, the court in equity may level civil penalties as

specified in section 507.

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

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

affected or upon relation of the solicitor of a municipality

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

competent jurisdiction for an injunction to restrain a violation

20190SB0790PN1051 - 59 -

of this chapter or rules and regulations promulgated under this

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

chapter shall be deemed concurrent. Existence or exercise of one

remedy shall not prevent the department from exercising another

remedy at law or in equity.

(d) Jurisdiction.--Actions under this section may be filed

in the appropriate court of common pleas or in Commonwealth

Court, and those courts are hereby granted jurisdiction to hear

actions under this section.

Section 505. Well control emergency response cost recovery.

A person liable for a well control emergency is responsible

for all response costs incurred by the department for well

control specialists to respond to the well control emergency. In

an action before a court of competent jurisdiction, the

department may recover all its response costs, including the

cost of regaining control of the well, controlling the perimeter

of the well site, preparing water sprays, establishing trenches

or dikes to capture runoff fluids and providing the resources

and equipment needs for the incident.

Section 506. Penalties.

(a) General violation.--A person violating a provision of

this chapter commits a summary offense and, upon conviction,

shall be sentenced to pay a fine of not more than $500 or to

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

which the violation continues is a separate and distinct

offense.

(b) Willful violation.--A person willfully violating a

provision of this chapter or an order of the department issued

under this chapter commits a misdemeanor and, upon conviction,

20190SB0790PN1051 - 60 -

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

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

which the violation continues is a separate and distinct

offense.

against any person or municipality for a violation of this

chapter.

Section 507. Civil penalties.

In addition to other remedies available at law or in equity

for a violation of this chapter, a regulation of the department,

a departmental order or a permit condition, the department,

after a hearing, may assess a civil penalty regardless of

whether the violation was willful. The penalty shall not exceed

$25,000 plus $1,000 for each day during which the violation

continues. In determining whether to assess a penalty or the

amount of the penalty, the department shall consider willfulness

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

Commonwealth or their uses, endangerment of safety of others,

the cost of remedying the harm, savings resulting to the

violator as a result of the violation, whether the operator

voluntarily plugged an orphan or abandoned well and any other

relevant factor. When the department proposes to assess a civil

penalty, it shall notify the person of the proposed amount of

the penalty. The person charged with the penalty must, within 30

days of notification, pay the proposed penalty in full or file

an appeal of the assessment with the Environmental Hearing

Board. Failure to comply with the time period under this section

shall result in a waiver of all legal rights to contest the

violation or the amount of the penalty. The civil penalty shall

be payable to the Commonwealth and collectible in any manner

20190SB0790PN1051 - 61 -

provided at law for collection of debts. If a violator neglects

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

with interest and costs that may accrue, shall become a lien in

favor of the Commonwealth on the real and personal property of

the violator, but only after the lien has been entered and

docketed of record by the prothonotary of the county where the

property is situated. The department may transmit to the

prothonotaries of the various counties certified copies of all

liens. It shall be the duty of each prothonotary to enter and

docket the liens of record in the prothonotary's office and

index them as judgments are indexed, without requiring payment

of costs as a condition precedent to entry.

Section 508. Existing rights and remedies preserved and

cumulative remedies authorized.

Nothing in this chapter stops the Commonwealth or a district

attorney from proceeding in a court of law or in equity to abate

pollution forbidden under this chapter or a nuisance under

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

chapter to provide additional and cumulative remedies to control

activities related to drilling for or production of oil and gas

in this Commonwealth, and nothing contained in this chapter

abridges or alters rights of action or remedies existing, or

which existed previously, in equity or under common or statutory

law, criminal or civil. Neither this chapter, the grant of a

permit under this chapter nor an act done by virtue of this

chapter stops the Commonwealth, in exercising rights under

common or decisional law or in equity, from suppressing a

nuisance, abating pollution or enforcing common law or statutory

rights. No court of this Commonwealth with jurisdiction to abate

public or private nuisances shall be deprived of jurisdiction in

20190SB0790PN1051 - 62 -

an action to abate a private or public nuisance instituted by

any person on grounds that the nuisance constitutes air or water

pollution.

Section 509. Inspection and production of materials, witnesses,

depositions and rights of entry.

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

conduct tests or sampling or examine books, papers and records

pertinent to a matter under investigation under this chapter to

determine compliance with this chapter. For this purpose, the

duly authorized agents and employees of the department may at

all reasonable times enter and examine any involved property,

facility, operation or activity.

(b) Access.--The owner, operator or other person in charge

of a property, facility, operation or activity under this

chapter, upon presentation of proper identification and purpose

either for inspection or to remediate or otherwise respond to a

well control emergency, by agents or employees of the

department, shall provide free and unrestricted entry and

access. Upon refusal, the agent or employee may obtain a search

warrant or other suitable order authorizing entry and

inspection, remediation or response. It shall be sufficient to

justify issuance of a search warrant authorizing examination and

inspection if:

(1) there is probable cause to believe that the object

of the investigation is subject to regulation under this

chapter; and

(2) access, examination or inspection is necessary to

enforce the provisions of this chapter.

department may subpoena witnesses, administer oaths, examine

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witnesses, take testimony and compel production of books,

records, maps, plats, papers, documents and other writings

pertinent to proceedings or investigations conducted by the

department under this chapter. Upon refusal to obey a subpoena

by any person and on application of the department, a court may

enforce a subpoena in contempt proceedings. Fees for serving a

subpoena shall be the same as those paid to sheriffs for similar

services.

(d) Deposition.--The department or a party to a proceeding

before the department may cause the deposition of a witness who

resides in or outside of this Commonwealth to be taken in the

manner prescribed by law for taking depositions in civil

actions.

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

shall be paid the same fees as are paid to witnesses in courts

of record of general jurisdiction. Witnesses whose depositions

are taken under this chapter, and the officers taking those

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

for like services in court.

(f) Purchasers.--Upon request, a purchaser of oil or gas

shall provide the department information necessary to determine

ownership of facilities from which the purchaser obtained oil or

gas. The information shall be kept confidential for a period of

five years, and the department may utilize it in enforcement

proceedings. The department may request information under this

section only when a well does not comply with section 301.

Section 510. Unlawful conduct.

It shall be unlawful for any person to:

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

without a permit or registration from the department as

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required by this chapter or in violation of rules or

regulations adopted under this chapter, orders of the

department or a term or condition of a permit issued by the

department.

(2) Conduct an activity related to drilling for or

production of oil and gas:

(i) contrary to this chapter, rules or regulations

adopted under this chapter, an order of the department or

a term or condition of a permit issued by the department;

(ii) in any manner as to create a public nuisance or

adversely affect public health, safety, welfare or the

environment.

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

employee of the department acting in the course of lawful

performance of a duty under this chapter, including, but not

limited to, entry and inspection.

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

orphan well by misrepresentation or failure to disclose all

relevant facts.

(5) Cause abandonment of a well by removal of casing or

equipment necessary for production without plugging the well

in the manner prescribed under section 311, except that the

owner or operator of a well may temporarily remove casing or

equipment necessary for production, but only if it is part of

the normal course of production activities.

Section 511. Collection of fines and penalties.

Fines and penalties shall be collectible in a manner provided

by law for collection of debts. If a person liable to pay a

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

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together with interest and costs that may accrue, shall be a

judgment in favor of the Commonwealth on the person's property,

but only after the judgment has been entered and docketed of

record by the prothonotary of the county where the property is

situated. The department may transmit to prothonotaries of the

various counties certified copies of all judgments, and it shall

be the duty of each prothonotary to enter and docket them of

record in the prothonotary's office and index them as judgments

are indexed, without requiring payment of costs as a condition

precedent to entry.

Section 512. Third party liability.

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

product to a well or well site, that person is jointly and

severally liable with the well owner or operator for violations

of this chapter arising out of and caused by the person's

actions at the well or well site, in accordance with State law.

Section 513. Inspection reports.

The department shall post inspection reports on its publicly

accessible Internet website. The inspection reports shall

include:

(1) The nature and description of violations.

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

available.

(3) The status of the violation.

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

department to address the violation.

CHAPTER 7

MISCELLANEOUS PROVISIONS

Section 701. Well plugging funds.

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

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under this chapter shall be deposited into the Abandoned Well

Plugging Fund established under subsection (b). Permit fees

collected under this chapter are appropriated to the department

to carry out the purposes of this chapter.

(b) Surcharge.--To aid in indemnifying the Commonwealth for

the cost of plugging abandoned wells, a $50 surcharge is added

to the permit fee established by the department under section

301 for new wells. Money collected as a result of the surcharge

shall be paid into a restricted revenue account in the State

Treasury to be known as the Abandoned Well Plugging Fund and

expended by the department to plug abandoned wells threatening

the health and safety of persons or property or pollution of

waters of the Commonwealth.

(1) A restricted revenue account to be known as the

Orphan Well Plugging Fund is created. A $100 surcharge for

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

for wells to be drilled for gas production are added to the

permit fee established by the department under section 301

for new wells. The surcharges shall be placed in the Orphan

Well Plugging Fund and expended by the department to plug

orphan wells. If an operator rehabilitates a well abandoned

by another operator or an orphan well, the permit fee and the

surcharge for the well shall be waived.

(2) The department shall study its experience in

implementing this section and shall report its findings to

the Governor and the General Assembly by one year after

promulgation. The report shall contain information relating

to the balance of the fund, number of wells plugged, number

of identified wells eligible for plugging and recommendations

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as to alternative funding mechanisms.

Section 702. (Reserved).

Section 703. Effect on department authority.

This chapter does not affect, limit or impair any right or

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

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

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

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

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

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

Management Act.

Section 704. Relationship to solid waste, surface mining,

underground injection wells, storage tanks and spill

reporting.

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

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

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

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

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

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

facility employed for the disposal, processing or storage of

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

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

site, shall be considered to have been satisfied if the owner or

operator of the well meets the following conditions:

(1) the well is permitted under the requirements of

section 301 or registered under 303;

(2) the owner or operator has satisfied the financial

security requirements of section 316 by obtaining a surety or

collateral bond for the well and well site; and

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(3) the owner or operator maintains compliance with this

chapter and applicable regulations of the Environmental

Quality Board.

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

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

Surface Mining Conservation and Reclamation Act, or a regulation

promulgated under the Noncoal Surface Mining Conservation and

Reclamation Act, for any borrow area where minerals are

extracted solely for the purpose of oil and gas well

development, including access road construction, shall be

considered to have been satisfied if the owner or operator of

the well meets the conditions imposed under subsection (a)(1)

and (2) and maintains compliance with this chapter and

applicable regulations of the Environmental Quality Board.

diminish or otherwise affect duties or obligations of an owner

or operator under the Solid Waste Management Act. This section

does not apply to waste classified as hazardous waste under the

Solid Waste Management Act or the Resource Conservation and

Recovery Act of 1976 (Public Law 94-580, 90 Stat. 2795, 42

U.S.C. § 6901 et seq.).

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

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

Environmental Protection Agency pursuant to the Safe Drinking

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

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

department's obligation to consider potential pollution

resulting from underground injection or disposal to the wells.

Unless or until the Commonwealth takes primacy of the Class II

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

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

to a review of surface activities related to construction,

modification, operation or closure of the well and confirmation

that the well is constructed in accordance with this act.

(e) Storage tanks.--Aboveground storage tanks regulated

under this act and used to store brines, crude oil, drilling or

hydraulic fracturing fluids and similar substances or materials

and are directly related to the exploration, development or

production of crude oil or natural gas regulated under this act,

as well as liquid traps and associated gathering lines directly

related to oil or gas production and gathering operations, are

exempt from the obligations under the act of July 6, 1989

(P.L.169, No.32), known as the Storage Tank and Spill Prevention

Act, and any rule or regulation promulgated under the Storage

Tank and Spill Prevention Act.

(f) Spill reporting.--The following apply to spills onto the

ground at a well site:

(1) The following spills must be reported within two

hours of discovery:

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

period; or

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

period if the total dissolved solids concentration of the

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

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

barrels of brine need not be reported unless it would

endanger downstream users of waters of this Commonwealth,

would otherwise result in pollution or create a danger of

pollution of waters or would damage property.

Section 705. Relationship to the Coal and Gas Resource

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Coordination Act.

(a) Application.--The requirements under section 5 of the

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

and Gas Resource Coordination Act, for the issuance of a permit

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

known as the Oil and Gas Act, shall apply to this act.

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

change, repeal or otherwise affect the provisions of the Coal

and Gas Resource Coordination Act.

Section 706. Local ordinances.

Except with respect to local ordinances adopted pursuant to

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

Pennsylvania Municipalities Planning Code, and the act of

October 4, 1978 (P.L.851, No.166), known as the Flood Plain

Management Act, all local ordinances purporting to regulate

conventional oil and gas operations regulated by this act are

superseded. No local ordinance adopted pursuant to the

Pennsylvania Municipalities Planning Code or Flood Plain

Management Act shall contain provisions which impose conditions,

requirements or limitations on the same features of oil and gas

operations regulated by this act or that accomplish the same

purposes as this act. The Commonwealth, by this section,

preempts and supersedes the regulation of conventional oil and

gas wells.

Section 707. Beneficial use of produced water.

(a) Road application plans.--

(1) A person may apply produced water to unpaved roads

as a dust suppressant and road stabilizer in accordance with

a road application plan approved by the department. This

section does not authorize the use of produced water for

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prewetting, anti-icing or de-icing of roads.

(2) The department shall approve a road application plan

that reasonably provides for the protection of the

environment and the prevention of pollution. With respect to

any aspect of water quality, applicants may rely on regional

characterization of the produced water. The department may

not impose conditions requiring produced water to exceed the

physical character or chemical composition of a commercial

product for which the produced water is an effective

substitute. Persons engaged in the beneficial use of produced

water shall maintain records and make reports as the

department requires.

(3) A proposed road application plan shall be prepared

on forms provided by the department and shall include

information required by the department to administer this

section.

(4) Produced water may not be applied:

(i) within 150 feet of bodies of water or

watercourses, except roadside ditches;

(ii) within Zone I or Zone II of a wellhead

protection area designated as part of a wellhead

protection program approved under the act of May 1, 1984

(P.L.206, No.43), known as the Pennsylvania Safe Drinking

Water Act;

(iii) to sections of an unpaved road having a grade

exceeding 10%; or

(iv) to concrete, asphalt or other impervious

surfaces.

(5) The department's approval of a road application plan

does not authorize the discharge of produced water to the

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waters of the Commonwealth.

(6) Produced water that is transported, managed, stored

and applied on unpaved roads in compliance with a road

application plan approved by the department under this

section is not regulated as a solid waste under the act of

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

Management Act.

(b) Temporary regulations.--

(1) In order to facilitate the prompt implementation of

this act, the department may address the beneficial use of

produced water by establishing temporary regulations not

subject to:

(i) Sections 201, 202, 203, 204 and 205 of the act

of July 31, 1968 (P.L.769, No.240), referred to as the

Commonwealth Documents Law;

(ii) The act of June 25, 1982 (P.L.633, No.181),

known as the Regulatory Review Act;

(iii) Section 204(b) and 301(10) of the act of

October 15, 1980 (P.L.950, No.164), known as the

Commonwealth Attorneys Act; and

(iv) Sections 232 and 1920-A of the act of April 9,

1929 (P.L.177, No.175), known as The Administrative Code

of 1929;

(2) The department's authority to establish temporary

regulations under this section shall expire two years after

the effective date of this section. Regulations adopted after

this period shall be promulgated by the Environmental Quality

Board as provided by law.

and duty to:

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(1) approve, disapprove and conditionally approve of

road application plans;

(2) charge fees associated with the review of road

application plans; and

(3) suspend or revoke approval of any road application

plan, conduct inspections and abate public nuisances to

implement the purposes and provisions of this act and the

rules, regulations and standards adopted pursuant to this

act.

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

any provision of law to the contrary and to promote beneficial

uses and legitimate recycling, material derived from produced

water from conventional formations, including, but not limited

to, salt, is not waste if:

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

composition that is consistently equivalent to an

intentionally manufactured product or raw material; and

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

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

the product or raw material.

Section 708. Permit fee.

Each application for a well permit issued under this act or

58 Pa.C.S. (relating to oil and gas) shall be accompanied by a

permit fee, established by the Environmental Quality Board,

which bears a reasonable relationship to the cost of

administering this act and 58 Pa.C.S.

Section 709. Appropriation.

The sum of $5,000,000 is hereby appropriated from the General

Fund to the Department of Environmental Protection to meet the

department's obligations with respect to the conventional oil

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and natural gas industry.

Section 709.1. Annual budget submission.

The Governor shall include in the budget submitted to the

General Assembly each year under section 613 of the act of April

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

1929, a request for a separate line item of not less than

$5,000,000 to the Department of Environmental Protection for the

sole purpose of meeting the department's obligations with

respect to the conventional oil and gas industry.

Section 710. Regulations.

The Environmental Quality Board shall promulgate regulations

to implement this chapter. The board shall consult with the

council in the formulation and development of all regulations

and policies effecting conventional oil and gas operations to

ensure consistency with the duties of the council and purposes

of the act of June 23, 2016 (P.L.375, No.52), known as the

Pennsylvania Grade Crude Development Act. Policies adopted by

the department after April 16, 2012, shall expire within three

years of the effective date of this section with respect to

conventional operations unless revised and reissued in

accordance with this section.

Section 711. Repeals.

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

repealed insofar as they relate to conventional wells with the

exception of underground gas storage requirements in 58 Pa.C.S.

Ch. 32 Subch. C (relating to underground gas storage).

Section 712. Continuation.

Except as otherwise provided in this act, all conventional

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

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

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

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

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

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

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

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

modified under this act. Contracts, obligations and collective

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

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

alter the common law establishing the subsurface as the dominant

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

contract, mortgage or other agreement entered into prior to the

effective date of this act.

Section 713. Effective date.

This act shall take effect immediately.

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