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        PRIOR PRINTER'S NO. 538                       PRINTER'S NO. 1614

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

        SENATOR FISHER, ENVIRONMENTAL RESOURCES AND ENERGY, AS AMENDED,
           OCTOBER 17, 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, OR     <--
    17  HIS DESIGNEE.

     1  Section 3.  Commission.
     2     (a)  Establishment.--The Oil and Gas Conservation Commission
     3  is established.
     4     (b)  Members.--The commission shall consist of seven EIGHT     <--
     5  members:
     6         (1)  The secretary.
     7         (2)  Five SIX members appointed by the Governor from a     <--
     8     list consisting of three FOUR names submitted by the           <--
     9     Pennsylvania Oil and Gas Association, three FOUR names         <--
    10     submitted by the Pennsylvania Natural Gas Associates and
    11     three FOUR names submitted by the Pennsylvania Gas             <--
    12     Association. Individuals whose names are submitted under this
    13     paragraph must be petroleum engineers, petroleum geologists
    14     or experienced driller representatives. EACH ASSOCIATION       <--
    15     SHALL BE REPRESENTED ON THE COMMISSION.
    16         (3)  One member appointed by the Governor from a list
    17     consisting of three names submitted by the Citizens Advisory
    18     Council.
    19     (c)  Special experience.--Members of the commission under
    20  subsection (b)(2) and (3) must have at least ten years'
    21  experience with the production of or exploration for petroleum
    22  hydrocarbons. This experience must include at least five years'
    23  experience in this Commonwealth within the ten-year period prior
    24  to initial appointment.
    25     (d)  Terms.--
    26         (1)  The secretary shall serve ex officio.
    27         (2)  Members initially appointed under subsection (b)(2)
    28     and (3) shall serve the following terms:
    29             (i)  Two members shall serve for two years.
    30             (ii)  Two members shall serve for four years.
    19890S0514B1614                  - 2 -

     1             (iii)  Two THREE members shall serve for six years.    <--
     2         (3)  Members appointed for subsequent terms under
     3     subsection (b)(2) and (3) shall serve for six years.
     4         (4)  Any member who is appointed as a replacement shall
     5     serve the unexpired term of the member being replaced.
     6     (e)  Quorum.--Four VOTING members of the commission            <--
     7  constitute a quorum. An action or order of the commission
     8  requires the approval of a least four VOTING members.             <--
     9     (f)  Officers.--Every two years, the commission shall elect a
    10  chairperson and other necessary officers.
    11     (g)  Compensation.--Members of the commission shall serve
    12  without compensation. They shall be reimbursed for necessary
    13  expenses reasonably incurred in the performance of their duties.
    14     (h)  Support.--The department shall provide office space,
    15  staff support and other services reasonably necessary to enable
    16  the commission to discharge its duties.
    17  Section 4.  Powers and duties.
    18     The commission shall have those powers and duties provided in
    19  section 5 of the act of July 25, 1961 (P.L.825, No.359), known
    20  as the Oil and Gas Conservation Law, necessary to carry out       <--
    21  WHICH RELATE SOLELY TO IMPLEMENTATION OF the well-spacing and     <--
    22  integration provisions of this act.
    23  Section 5.  Conflict of interest.
    24     (a)  General rule.--A member of the commission may not
    25  participate in a decision of the commission if the decision has
    26  the potential of directly affecting an economic interest of the
    27  member.
    28     (b)  Secretary.--The secretary may not participate in a
    29  decision of the commission if the decision has the potential of
    30  directly affecting an economic interest of the Commonwealth.
    19890S0514B1614                  - 3 -

     1  Section 6.  Repeal.
     2     Except for the act of December 19, 1984 (P.L.1140, No.223),
     3  known as the Oil and Gas Act, which shall not be repealed, all
     4  acts and parts of acts are repealed insofar as they are
     5  inconsistent with this act.
     6  Section 7.  Effective date.
     7     This act shall take effect immediately.
















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