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                                                       PRINTER'S NO. 538

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 514 Session of 1989


        INTRODUCED BY FISHER, CORMAN, REIBMAN, ANDREZESKI, STAPLETON,
           SALVATORE, LYNCH, SHAFFER, STOUT, WILT AND PETERSON,
           FEBRUARY 13, 1989

        REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY,
           FEBRUARY 13, 1989

                                     AN ACT

     1  Establishing the Oil and Gas Conservation Commission and
     2     conferring powers and duties upon it; and making a repeal.

     3     The General Assembly of the Commonwealth of Pennsylvania
     4  hereby enacts as follows:
     5  Section 1.  Short title.
     6     This act shall be known and may be cited as the Oil and Gas
     7  Conservation Commission Act.
     8  Section 2.  Definitions.
     9     The following words and phrases when used in this act shall
    10  have the meanings given to them in this section unless the
    11  context clearly indicates otherwise:
    12     "Commission."  The Oil and Gas Conservation Commission
    13  established under section 3.
    14     "Department."  The Department of Environmental Resources of
    15  the Commonwealth.
    16     "Secretary."  The Secretary of Environmental Resources.
    17  Section 3.  Commission.

     1     (a)  Establishment.--The Oil and Gas Conservation Commission
     2  is established.
     3     (b)  Members.--The commission shall consist of seven members:
     4         (1)  The secretary.
     5         (2)  Five members appointed by the Governor from a list
     6     consisting of three names submitted by the Pennsylvania Oil
     7     and Gas Association, three names submitted by the
     8     Pennsylvania Natural Gas Associates and three names submitted
     9     by the Pennsylvania Gas Association. Individuals whose names
    10     are submitted under this paragraph must be petroleum
    11     engineers, petroleum geologists or experienced driller
    12     representatives.
    13         (3)  One member appointed by the Governor from a list
    14     consisting of three names submitted by the Citizens Advisory
    15     Council.
    16     (c)  Special experience.--Members of the commission under
    17  subsection (b)(2) and (3) must have at least ten years'
    18  experience with the production of or exploration for petroleum
    19  hydrocarbons. This experience must include at least five years'
    20  experience in this Commonwealth within the ten-year period prior
    21  to initial appointment.
    22     (d)  Terms.--
    23         (1)  The secretary shall serve ex officio.
    24         (2)  Members initially appointed under subsection (b)(2)
    25     and (3) shall serve the following terms:
    26             (i)  Two members shall serve for two years.
    27             (ii)  Two members shall serve for four years.
    28             (iii)  Two members shall serve for six years.
    29         (3)  Members appointed for subsequent terms under
    30     subsection (b)(2) and (3) shall serve for six years.
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     1         (4)  Any member who is appointed as a replacement shall
     2     serve the unexpired term of the member being replaced.
     3     (e)  Quorum.--Four members of the commission constitute a
     4  quorum. An action or order of the commission requires the
     5  approval of a least four members.
     6     (f)  Officers.--Every two years, the commission shall elect a
     7  chairperson and other necessary officers.
     8     (g)  Compensation.--Members of the commission shall serve
     9  without compensation. They shall be reimbursed for necessary
    10  expenses reasonably incurred in the performance of their duties.
    11     (h)  Support.--The department shall provide office space,
    12  staff support and other services reasonably necessary to enable
    13  the commission to discharge its duties.
    14  Section 4.  Powers and duties.
    15     The commission shall have those powers and duties provided in
    16  section 5 of the act of July 25, 1961 (P.L.825, No.359), known
    17  as the Oil and Gas Conservation Law, necessary to carry out the
    18  well-spacing and integration provisions of this act.
    19  Section 5.  Conflict of interest.
    20     (a)  General rule.--A member of the commission may not
    21  participate in a decision of the commission if the decision has
    22  the potential of directly affecting an economic interest of the
    23  member.
    24     (b)  Secretary.--The secretary may not participate in a
    25  decision of the commission if the decision has the potential of
    26  directly affecting an economic interest of the Commonwealth.
    27  Section 6.  Repeal.
    28     Except for the act of December 19, 1984 (P.L.1140, No.223),
    29  known as the Oil and Gas Act, which shall not be repealed, all
    30  acts and parts of acts are repealed insofar as they are
    19890S0514B0538                  - 3 -

     1  inconsistent with this act.
     2  Section 7.  Effective date.
     3     This act shall take effect immediately.


















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