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| PRIOR PRINTER'S NOS. 1238, 1328 | PRINTER'S NO. 1723 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY SCARNATI, CORMAN, BROWNE, VOGEL, SMUCKER, D. WHITE, BRUBAKER, PIPPY, MENSCH, YAW AND PICCOLA, MAY 16, 2011 |
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| SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, OCTOBER 26, 2011 |
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| AN ACT |
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1 | Amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated |
2 | Statutes, imposing a natural gas impact fee and consolidating | <-- |
3 | the Oil and Gas Act with modifications relating to |
4 | definitions, well permits, well location restrictions, |
5 | protection of water supplies, well reporting requirements, |
6 | bonding, enforcement orders, penalties, civil penalties and |
7 | local ordinances; providing for containment, for |
8 | transportation regulations, for emergency response |
9 | information and for model ordinance; providing for a model |
10 | zoning ordinance; and making a related repeal. | <-- |
11 | The General Assembly of the Commonwealth of Pennsylvania |
12 | hereby enacts as follows: |
13 | Section 1. Title 58 of the Pennsylvania Consolidated |
14 | Statutes is amended by adding a part parts to read: | <-- |
15 | PART I | <-- |
16 | UNCONVENTIONAL GAS WELLS |
17 | Chapter |
18 | 23. Impact Fee |
19 | 25. Model Ordinance |
20 | CHAPTER 23 |
21 | IMPACT FEE |
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1 | Sec. |
2 | 2301. Definitions. |
3 | 2302. Shale Impact Fee. |
4 | 2303. Shale impact fee housing credit. |
5 | 2304. Administration. |
6 | 2305. Well information. |
7 | 2306. Duties of department. |
8 | 2307. Commission. |
9 | 2308. Enforcement. |
10 | 2309. Regulations. |
11 | 2310. Recordkeeping. |
12 | 2311. Examinations. |
13 | 2312. Local distribution of fee. |
14 | 2313. Environmental initiatives distribution of fee. |
15 | 2314. Expiration. |
16 | § 2301. Definitions. |
17 | The following words and phrases when used in this chapter |
18 | shall have the meanings given to them in this section unless the |
19 | context clearly indicates otherwise: |
20 | "Account." The Shale Impact Account. |
21 | "Barrel." A barrel of 42 U.S. gallons of natural gas |
22 | liquids. |
23 | "Commission." The Pennsylvania Public Utility Commission. |
24 | "Department." The Department of Environmental Protection of |
25 | the Commonwealth. |
26 | "Eligible applicants." A county, municipality, council of |
27 | governments, watershed organization, institution of higher |
28 | education, nonprofit organization, Pennsylvania Fish and Boat |
29 | Commission or an authorized organization as defined in 27 |
30 | Pa.C.S. § 6103 (relating to definitions). |
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1 | "Fee." The Shale Impact Fee imposed under section 2302 |
2 | (relating to Shale Impact Fee). |
3 | "Highway mileage." The number of miles of public roads and |
4 | streets most recently certified by the Department of |
5 | Transportation as eligible for distribution of liquid fuels |
6 | funds under the act of June 1, 1956 (1955 P.L.1944, No.655), |
7 | referred to as the Liquid Fuels Tax Municipal Allocation Law. |
8 | "Marginal gas well." An unconventional gas well incapable of |
9 | producing more than 90,000 cubic feet of gas per day during a |
10 | calendar month, including production from the zones and |
11 | multilateral well bores at a single well, regardless of whether |
12 | the production is metered separately. |
13 | "Municipality." A borough, city, town or township. |
14 | "Natural gas." A fossil fuel consisting of a mixture of |
15 | hydrocarbon gases, primarily methane, and possibly including |
16 | ethane, propane, butane, pentane, carbon dioxide, oxygen, |
17 | nitrogen and hydrogen sulfide and other gas species. The term |
18 | includes natural gas from oil fields known as associated gas or |
19 | casing head gas, natural gas fields known as nonassociated gas, |
20 | coal beds, shale beds and other formations. The term does not |
21 | include coal bed methane. |
22 | "Natural gas liquids." Hydrocarbons in natural gas which are |
23 | separated from the gas as liquids through the process of |
24 | absorption, condensation, adsorption or other methods in gas |
25 | processing of cycling plants. |
26 | "Number of producing unconventional wells." The most recent |
27 | numerical count of producing unconventional wells on the |
28 | inventory maintained and provided to the commission by the |
29 | department as of the last day of each month. |
30 | "Producer." A person or its subsidiary, affiliate or holding |
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1 | company that holds a permit or other authorization to engage in |
2 | the business of producing natural gas for sale, profit or |
3 | commercial use from an unconventional well in this Commonwealth. |
4 | The term shall not include a producer that removes natural gas |
5 | from a site used to store natural gas that did not originate |
6 | from the site. |
7 | "Shale impact fee housing credit." The credit provided under |
8 | this chapter for a producer, who has a permit from the |
9 | department to drill for natural gas other than marginal gas in |
10 | this Commonwealth, upon acceptance of a donation to an optional |
11 | county affordable housing fund under 53 Pa.C.S. Ch .60 (relating |
12 | to optional affordable housing funding) of a county in which a |
13 | producer has active unconventional wells or a nonprofit |
14 | organization under section 501(c)(3) of the Internal Revenue |
15 | Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)) which is |
16 | committed to providing low and moderate income housing in a |
17 | county in which a producer has active unconventional wells. |
18 | "Unconventional well." A bore hole drilled or being drilled |
19 | for the purpose of or to be used for producing oil or gas from a |
20 | geological formation existing below the base of the Elk |
21 | Sandstone or its geologic equivalent stratigraphic interval |
22 | where oil or gas generally cannot be produced at economic flow |
23 | rates or in economic volumes except by vertical or horizontal |
24 | well bores stimulated by hydraulic fracture treatments or by |
25 | using multilateral well bores or other techniques to expose more |
26 | of the formation of the well bore. |
27 | "Vertical gas well." An unconventional well which begins as |
28 | a vertical linear bore and is not intentionally deviated from |
29 | the vertical. |
30 | § 2302. Shale Impact Fee. |
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1 | (a) Imposition.--Except as provided under subsection (c), |
2 | beginning January 1, 2010, there shall be imposed a Shale Impact |
3 | Fee on each unconventional well producing gas in this |
4 | Commonwealth. |
5 | (b) Fee.--The fee shall consist of a fee for each |
6 | unconventional well as follows: |
7 | (1) For the first year of production, the fee shall be |
8 | $40,000. |
9 | (2) For the second year of production, the fee shall be |
10 | $30,000. |
11 | (3) For the third year of production, the fee shall be |
12 | $20,000. |
13 | (4) For the fourth year of production through the tenth |
14 | year of production, the fee shall be $10,000. |
15 | (c) Exemption.--The fee under subsection (a) shall not be |
16 | imposed on marginal gas wells. |
17 | § 2303. Shale impact fee housing credit. |
18 | (a) General rule.--A producer who has a permit from the |
19 | department to drill for natural gas, other than marginal gas, in |
20 | this Commonwealth may apply for a shale impact fee credit upon |
21 | acceptance of a donation to an optional county affordable |
22 | housing fund under 53 Pa.C.S. Ch 60 (relating to optional |
23 | affordable housing funding) of a county in which a producer has |
24 | active unconventional wells. |
25 | (b) Application.--An application shall be developed by the |
26 | commission. |
27 | (c) Maximum amount.--A producer may claim a credit of no |
28 | greater than 30% of the producer's impact fee liability under |
29 | this chapter. |
30 | (d) Eligible activities.--A county accepting a donation to |
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1 | the optional county affordable housing fund may utilize the |
2 | funding for the following purposes: |
3 | (1) To provide support to projects that meet eligibility |
4 | criteria as set forth in the programs administered by the |
5 | Pennsylvania Housing Finance Agency. |
6 | (2) To provide support to projects that increase the |
7 | availability of quality, safe, affordable housing for low- |
8 | income and moderate-income individuals or families, persons |
9 | with disabilities or elderly persons. |
10 | (3) To provide rental assistance to persons or families |
11 | whose household income does not exceed the area median |
12 | income. |
13 | § 2304. Administration. |
14 | (a) Report.--By March 1, 2012, and each March 1 thereafter, |
15 | each producer shall submit a report and payment of the fee with |
16 | the commission on a form prescribed by the commission for the |
17 | previous calendar year. The report shall include the following: |
18 | (1) Annual units of production severed by the producer |
19 | for each unconventional well for the reporting period. |
20 | (2) The number of producing unconventional wells of a |
21 | producer in each county and municipality. |
22 | (b) Report and fee for 2010.--For calendar year 2010, a |
23 | report pursuant to subsection (a)(1) and (2) shall be filed by |
24 | August 1, 2011, and the fee due shall be paid as follows: |
25 | (1) Fifty percent of the fee shall be paid by August 1, |
26 | 2011. |
27 | (2) Fifty percent of the fee shall be paid by November |
28 | 1, 2011. |
29 | (c) Fee due date.--Except as provided under subsection (b) |
30 | (2), the fee shall be due on the day the report is required to |
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1 | be filed. The fee shall become delinquent if not remitted to the |
2 | commission on the reporting date. |
3 | (d) Cost.--Beginning March 2, 2012, and each March 2 |
4 | thereafter, the commission shall determine the reasonable annual |
5 | cost to collect and distribute the fee in accordance with this |
6 | chapter and shall deduct that amount from the total amount of |
7 | fees collected under this chapter. On August 1, 2011, the amount |
8 | to collect and distribute the fee may be deducted from the total |
9 | amount of fees collected for 2010. Fees collected under this |
10 | section are hereby annually appropriated to the commission to |
11 | carry out its duties under this chapter. |
12 | § 2305. Well information. |
13 | (a) List.--The department shall provide the commission with |
14 | a list of all unconventional wells that have received a drilling |
15 | permit from the department. The list shall be updated on a |
16 | monthly basis. |
17 | (b) Updates.--A producer subject to the fee shall notify the |
18 | commission within 30 days after a calendar month in which the |
19 | initiation of production at a well or the removal of a well from |
20 | production occurs. |
21 | § 2306. Duties of department. |
22 | (a) Confirmation of payment.--Prior to issuing a permit to |
23 | drill an unconventional well in this Commonwealth, the |
24 | department shall determine whether the producer has paid all |
25 | fees owed under section 2302 (relating to Shale Impact Fee). |
26 | (b) Prohibition.--The department shall not issue a permit to |
27 | drill an unconventional well until all fees owed under section |
28 | 2302 that are not in dispute have been paid to the commission. |
29 | § 2307. Commission. |
30 | (a) Powers.--The commission shall have the authority to make |
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1 | all inquiries and determinations necessary to calculate and |
2 | collect the fee imposed under this chapter, including, if |
3 | applicable, interest and penalties. |
4 | (b) Notice.--If the commission determines that the fee has |
5 | not been paid in full, it may issue a notice of the amount due |
6 | and demand for payment and shall set forth the basis for the |
7 | determination. |
8 | (c) Address.--Notice of failure to pay the correct fee shall |
9 | be sent to the producer at its registered address via certified |
10 | mail. |
11 | (d) Time period.--The commission may challenge the amount of |
12 | a fee paid under this chapter within three years after the date |
13 | the report under section 2304(d) (relating to administration) is |
14 | filed. |
15 | (e) Intent.--If no report is filed or a producer files a |
16 | false or fraudulent return with the intent to evade the fee, an |
17 | assessment of the amount owed may be made at any time. |
18 | § 2308. Enforcement. |
19 | (a) Assessment.--The commission shall assess interest on any |
20 | delinquent fee at the rate prescribed under section 806 of the |
21 | act of April 9, 1929 (P.L.343, No.176), known as The Fiscal |
22 | Code. |
23 | (b) Penalty.--In addition to the interest under subsection |
24 | (a), if a producer fails to make timely payment of the fee, |
25 | there shall be added to the amount of the fee due a penalty of |
26 | 5% of the amount of the fee if failure to file a timely payment |
27 | is for not more than one month, with an additional 5% penalty |
28 | for each additional month, or fraction of a month, during which |
29 | the failure continues, not to exceed 25% in the aggregate. |
30 | (c) Timely payment.--If the commission determines that a |
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1 | producer has not made a timely payment of the fee, the |
2 | commission shall send a written notice of the amount of the |
3 | deficiency to the producer within 30 days from the date of |
4 | determining the deficiency. If the producer has not provided a |
5 | complete and accurate statement of the volume of gas extracted |
6 | for the payment period, the commission may estimate the volume |
7 | in its deficiency notice. |
8 | (d) Remedies.--The remedies provided under this chapter are |
9 | in addition to any other remedies provided at law or in equity. |
10 | (e) Lien.--Fines, fees, interest and penalties shall be |
11 | collectible in the manner provided by law for the collection of |
12 | debts. If the producer liable to pay any amount neglects or |
13 | refuses to pay the amount after demand, the amount, together |
14 | with costs which may accrue, shall be a judgment in favor of the |
15 | Commonwealth upon the property of the producer, but only after |
16 | the judgment has been entered and docketed of record by the |
17 | prothonotary of the county where the property is situated. The |
18 | Commonwealth may transmit to the prothonotaries of the |
19 | respective counties certified copies of the judgments, and it |
20 | shall be the duty of each prothonotary to enter and docket the |
21 | same of record in his office and to index each judgment, without |
22 | requiring the payment of costs as a condition precedent to the |
23 | entry of the judgment. |
24 | § 2309. Regulations. |
25 | The commission shall promulgate regulations necessary to |
26 | enforce this chapter. |
27 | § 2310. Recordkeeping. |
28 | A producer liable for the fee imposed under this chapter |
29 | shall keep records, make reports and comply with regulations of |
30 | the commission. If necessary, the commission may require a |
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1 | producer to make reports, render statements or keep records as |
2 | the commission deems sufficient to determine liability for the |
3 | fee. |
4 | § 2311. Examinations. |
5 | (a) Access.--The commission or its authorized agents or |
6 | representatives shall: |
7 | (1) Have access to the books, papers and records of any |
8 | producer in order to verify the accuracy and completeness of |
9 | a report filed or fee paid under this chapter. |
10 | (2) Require the preservation of all books, papers and |
11 | records for any period deemed proper not to exceed three |
12 | years from the end of the calendar year to which the records |
13 | relate. |
14 | (3) Examine any employee of a producer under oath |
15 | concerning the severing of natural gas subject to a fee or |
16 | any matter relating to the enforcement of this chapter. |
17 | (4) Compel the production of books, papers and records |
18 | and the attendance of all individuals who the commission |
19 | believes to have knowledge of relevant matters in accordance |
20 | with 66 Pa.C.S. (relating to public utilities). |
21 | (b) Unauthorized disclosure.--Any information obtained by |
22 | the commission as a result of any report, examination, |
23 | investigation or hearing under this chapter shall be |
24 | confidential, except for official purposes, in accordance with |
25 | judicial order or as otherwise provided by law. An individual |
26 | unlawfully divulging the information commits a misdemeanor and |
27 | shall, upon conviction, be sentenced to pay a fine or not more |
28 | than $1,000 and costs of prosecution or to imprisonment for not |
29 | more than one year, or both. |
30 | § 2312. Local distribution of fee. |
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1 | (a) Establishment.--There is hereby established a restricted |
2 | receipts account to be known as the Shale Impact Account to be |
3 | administered by the commission. |
4 | (b) Deposit.--All fees imposed shall be deposited into the |
5 | account. |
6 | (c) Conservation districts.-- |
7 | (1) For 2010, $2,500,000 from the account shall be |
8 | transferred to the Conservation District Fund to be |
9 | distributed to county conservation districts by the State |
10 | Conservation Commission. |
11 | (2) For 2011, $5,000,000 from the account shall be |
12 | transferred to the Conservation District Fund to be |
13 | distributed to county conservation districts by the State |
14 | Conservation Commission. |
15 | (3) For 2012, and every year thereafter, $7,500,000 from |
16 | the account shall be transferred to the Conservation District |
17 | Fund to be distributed to county conservation districts by |
18 | the State Conservation Commission. |
19 | (4) Funds under paragraphs (1), (2) and (3) shall be |
20 | distributed in accordance with the following: |
21 | (i) One-half shall be distributed by dividing the |
22 | amount equally among conservation districts for any use |
23 | consistent with the act of May 15, 1945 (P.L.547, |
24 | No.217), known as the Conservation District Law. |
25 | (ii) One-half shall be distributed by the State |
26 | Conservation Commission in a manner consistent with the |
27 | Conservation District Law and the provisions of the State |
28 | Conservation Commission's Conservation District Fund |
29 | Allocation Program—Statement of Policy under 25 Pa. Code |
30 | Ch. 83 Subch. B (relating to Conservation District Fund |
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1 | Allocation Program—Statement of Policy). |
2 | (c.1) Office of State Fire Commissioner.-- |
3 | (1) For year 2012, and each year thereafter, $1,000,000 |
4 | shall be annually distributed to the Office of the State Fire |
5 | Commissioner. |
6 | (2) Funds under paragraph (1) shall be used for the |
7 | following purposes: |
8 | (i) To support training programs for emergency |
9 | responders located in regions of this Commonwealth where |
10 | drilling of Marcellus Shale or other unconventional |
11 | resources occurs. |
12 | (ii) To provide grants to fire departments for the |
13 | purchase of special equipment required to respond to |
14 | fires and other emergencies related to natural gas |
15 | drilling activity. |
16 | (d) Distribution.--Following distribution under subsection |
17 | (c), 60% of the revenues remaining in the account are hereby |
18 | appropriated for the purposes authorized under this section. |
19 | Local governments are encouraged, where appropriate, to jointly |
20 | fund projects that cross jurisdictional lines. The commission |
21 | shall distribute the funds appropriated under this subsection as |
22 | follows within 45 days after the date the fee is remitted: |
23 | (1) Thirty-six percent shall be distributed to counties |
24 | in which producing unconventional gas wells are located. The |
25 | amount for each county shall be determined using a formula |
26 | that divides the number of producing unconventional gas wells |
27 | in the county by the number of producing unconventional gas |
28 | wells in this Commonwealth and multiplies the resulting |
29 | percentage by the amount available for distribution under |
30 | this paragraph. |
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1 | (2) Thirty-seven percent shall be distributed to |
2 | municipalities in which producing unconventional gas wells |
3 | are located. The amount for each municipality shall be |
4 | determined using a formula that divides the number of |
5 | producing unconventional gas wells in the municipality by the |
6 | number of producing unconventional gas wells in this |
7 | Commonwealth and multiplies the resulting percentage by the |
8 | amount available for distribution under this paragraph. |
9 | (3) Twenty-seven percent shall be distributed to |
10 | municipalities located in a county in which producing |
11 | unconventional gas wells are located. The amount available |
12 | for distribution in each county shall be determined by |
13 | dividing the number of producing unconventional gas wells in |
14 | the county by the number of producing unconventional gas |
15 | wells in this Commonwealth and multiplying the resulting |
16 | percentage by the amount available for distribution under |
17 | this paragraph. The resulting amount available for |
18 | distribution in each county in which producing unconventional |
19 | gas wells are located shall be distributed to each |
20 | municipality in the county regardless of whether an |
21 | unconventional gas well is located in the municipality as |
22 | follows: |
23 | (i) One-half shall be distributed to each |
24 | municipality using a formula that divides the population |
25 | of the municipality within the county by the total |
26 | population of the county and multiplies the resulting |
27 | percentage by the amount available for distribution to |
28 | the county under this subparagraph. |
29 | (ii) One-half shall be distributed to each |
30 | municipality using a formula that divides the highway |
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1 | mileage of the municipality within the county by the |
2 | total highway mileage of the county and multiplies the |
3 | resulting percentage by the amount available for |
4 | distribution to the county under this subparagraph. |
5 | (e) Use of funds.--A county or municipality receiving funds |
6 | under this subsection shall make use of funds received only for |
7 | the following purposes: |
8 | (1) Construction, reconstruction, maintenance and repair |
9 | of roadways, bridges and public infrastructure. |
10 | (2) Water, storm water and sewer systems, including |
11 | construction, reconstruction, maintenance and repair. |
12 | (3) Emergency preparedness and public safety, including |
13 | police and fire services. |
14 | (4) Preservation and reclamation of surface and |
15 | subsurface waters and water supplies. |
16 | (5) Tax reductions, including homestead exclusions. |
17 | (6) Records management, geographic information systems |
18 | and information technology. |
19 | (7) To provide for a project, approved by the governing |
20 | body of a county or municipality, that increases the |
21 | availability of quality affordable housing, either for sale |
22 | or rental, to residents whose annual income is less than the |
23 | area median income. |
24 | (f) Annual reports.-- |
25 | (1) The commission shall submit an annual report on all |
26 | distributions of funds in the Shale Impact Account under this |
27 | section. The report shall be submitted to the chairman and |
28 | minority chairman of the Appropriations Committee of the |
29 | Senate, the chairman and minority chairman of the |
30 | Appropriations Committee of the House of Representatives, the |
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1 | chairman and minority chairman of the Environmental Resources |
2 | and Energy Committee of the Senate and the chairman and |
3 | minority chairman of the Environmental Resources and Energy |
4 | Committee of the House of Representatives. The report shall |
5 | be submitted by August 31, 2012, and by August 31 of each |
6 | year thereafter. |
7 | (2) All counties and municipalities receiving |
8 | distributions of funds from the Shale Impact Account under |
9 | this section shall submit information to the commission on a |
10 | form prepared by the commission that sets forth the amount |
11 | and use of the funds received in the prior calendar year. |
12 | The form shall set forth whether the funds received were |
13 | committed to a specific project or use as allowed in this |
14 | section. |
15 | (3) Every county and municipality receiving funds under |
16 | this section shall publish a report, which at a minimum shall |
17 | include the amount of funds received under this section and |
18 | the purposes for which the funds were expended. The reports |
19 | shall be published on the county or municipality's publicly |
20 | accessible Internet website at least annually. |
21 | § 2313. Environmental initiatives distribution of fee. |
22 | (a) Deposit and distribution.--Following distribution under |
23 | section 2312(c), 40% of the revenues in the account are hereby |
24 | appropriated for distribution by the commission as follows: |
25 | (1) Sixty percent to the Commonwealth Financing |
26 | Authority to be utilized for grants to eligible applicants |
27 | for the following purposes: |
28 | (i) To implement acid mine drainage abatement and |
29 | cleanup efforts and mine reclamation with a priority |
30 | given to those projects that recycle and treat mine |
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1 | drainage water for use in drilling operations. |
2 | (ii) To plug abandoned and orphaned oil and gas |
3 | wells. |
4 | (iii) Grants for watershed protection as defined in |
5 | 27 Pa.C.S. § 6103 (relating to definitions). |
6 | (iv) Planning and enforcement authorized under |
7 | section 6 of the act of January 24, 1966 (1965 P.L.1535, |
8 | No.537), known as the Pennsylvania Sewage Facilities Act. |
9 | (v) Water, storm water and sewer systems, including |
10 | construction, reconstruction, maintenance and repair. |
11 | (2) Twenty percent to the Motor License Fund. |
12 | (3) Twenty percent to the Hazardous Sites Cleanup Fund. |
13 | (4) No more than 40% of the revenue generated under this |
14 | section shall be used for the purposes listed under paragraph |
15 | (1)(v). |
16 | (b) Restriction on use of proceeds.-- |
17 | (1) Funds shall not be granted to an eligible applicant |
18 | for the purpose of public relations, outreach, |
19 | communications, lobbying or litigation. |
20 | (2) No property purchased using revenue generated under |
21 | this section may be conveyed or resold to another entity |
22 | without approval from the Department of Conservation and |
23 | Natural Resources. |
24 | (3) Grants may not be used by an authorized organization |
25 | as defined in 27 Pa.C.S. § 6103 for land acquisition unless |
26 | the authorized organization has obtained the written consent |
27 | of the county and municipality in which the land is situated. |
28 | (c) Coordination with other agencies.--The department and |
29 | the Department of Conservation and Natural Resources shall |
30 | review applications for funding as requested by the Commonwealth |
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1 | Financing Authority and provide recommendations on priority of |
2 | projects and project approval for consideration by the |
3 | Commonwealth Financing Authority. |
4 | § 2314. Expiration. |
5 | (a) Notice.--The Secretary of State shall, upon the |
6 | imposition of a severance tax on each unconventional well |
7 | producing gas in this Commonwealth, submit for publication in |
8 | the Pennsylvania Bulletin notice of the imposition. |
9 | (b) Date.--This chapter shall expire on the date of the |
10 | publication of the notice under subsection (a). |
11 | CHAPTER 25 |
12 | MODEL ORDINANCE |
13 | Sec. |
14 | 2501. Model municipal ordinance. |
15 | 2502. Local ordinance. |
16 | § 2501. Model municipal ordinance. |
17 | (a) Purposes.--The purposes of this section are as follows: |
18 | (1) To optimize the development and use of this |
19 | Commonwealth's oil and gas reserves by increasing reasonable |
20 | consistency in zoning and other municipal regulation. |
21 | (2) To foster expeditious and efficient handling of |
22 | municipal oil and gas permitting procedures. |
23 | (3) To allow municipalities to enact regulations under |
24 | the act of July 31, 1968 (P.L.805, No.247), known as the |
25 | Pennsylvania Municipalities Planning Code, and the act of |
26 | October 4, 1978 (P.L.851, No.166), known as the Flood Plain |
27 | Management Act, insofar as the regulation is authorized by |
28 | section 2502 (relating to local ordinance) and this section. |
29 | (b) Authority.--The commission shall develop and adopt a |
30 | model ordinance to fulfill the purposes of this section. |
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1 | (c) Adoption of provisions.-- |
2 | (1) Within 120 days of the effective date of this |
3 | section, the commission shall, by majority vote, adopt a |
4 | model ordinance for counties and municipalities pertaining to |
5 | oil and gas drilling activities in accordance with the |
6 | Pennsylvania Municipalities Planning Code, as applicable, the |
7 | Flood Plain Management Act and this section. |
8 | (2) The model zoning ordinance shall do all of the |
9 | following: |
10 | (i) Authorize oil and gas development as a permitted |
11 | use by right in all zoning districts except residential |
12 | districts. The commission may develop a model zoning |
13 | ordinance that allows oil and gas development in |
14 | residential zoning districts by conditional use or |
15 | special exception with conditions dependent on the |
16 | density of existing uses within the district and the |
17 | isolation distances achievable in each residential |
18 | district. |
19 | (ii) Authorize natural gas compression stations: |
20 | (A) as a permitted use by right in all |
21 | agricultural, industrial and commercial districts; |
22 | and |
23 | (B) as a conditional use in all other zoning |
24 | districts. |
25 | (iii) Authorize natural gas processing plants: |
26 | (A) as a permitted use by right in all |
27 | industrial districts; and |
28 | (B) as a conditional use or special exception in |
29 | agricultural districts. |
30 | (3) The model zoning ordinance shall not do any of the |
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1 | following: |
2 | (i) Impose limitations on the hours of operation on |
3 | drilling operations. |
4 | (ii) Impose limitations on noise, light, height or |
5 | security or fencing on drilling operations, natural gas |
6 | compressor stations or natural gas processing plants if |
7 | the limitations are more stringent than limitations |
8 | imposed on construction activities for other similar land |
9 | uses. The model zoning ordinance may include limitations |
10 | on noise, light, height and security and fencing for |
11 | equipment or processes which are unique to the gas |
12 | industry and which are rational, nondiscriminatory and |
13 | reasonably defensible in the particular zone where they |
14 | apply. |
15 | (iii) Have a permit review period for uses by right |
16 | that exceeds 30 days for complete and responsive |
17 | submissions. |
18 | (iv) Impose restrictions on vehicular access routes |
19 | for overweight vehicles except as authorized under: |
20 | (A) 75 Pa.C.S. (relating to vehicles); or |
21 | (B) the Pennsylvania Municipalities Planning |
22 | Code. |
23 | (v) Regulate storm water, erosion and sedimentation |
24 | control or grading where the use is subject to regulation |
25 | by the department through an Erosion and Sedimentation |
26 | Control General Permit or similar permit. |
27 | (4) Nothing in this subsection shall limit or preempt a |
28 | county or municipality from action pursuant to the act of |
29 | October 4, 1978 (P.L.864, No.167), known as the Storm Water |
30 | Management Act. |
|
1 | (d) Effect of model ordinance.--An ordinance adopted by a |
2 | county or municipality to regulate oil and gas shall not contain |
3 | more stringent standards than the model ordinance adopted by the |
4 | commission. |
5 | (e) Timing.--The commission shall publish the adopted model |
6 | ordinance in the Pennsylvania Bulletin immediately after its |
7 | adoption and shall disseminate information about the model |
8 | ordinance through the Department of Community and Economic |
9 | Development, municipal associations and other means as the |
10 | commission shall deem appropriate. The costs of the notification |
11 | shall be borne by the Department of Community and Economic |
12 | Development. |
13 | (f) Miscellaneous.--The commission shall review the model |
14 | ordinance annually. Proposed amendments shall be published in |
15 | the Pennsylvania Bulletin within 30 days after their adoption. |
16 | (g) Ordinance.--If an ordinance adopted by a county or |
17 | municipality contains more stringent standards than the model |
18 | ordinance, the county or municipality shall be ineligible to |
19 | receive funding under sections 2312 (relating to local |
20 | distribution of fee) and 2313 (relating to environmental |
21 | initiatives distribution of fee). |
22 | (h) Effective date of model ordinance.--The model ordinance |
23 | shall take effect 70 days following the commission's publication |
24 | of the ordinance in the Pennsylvania Bulletin under this |
25 | section. |
26 | § 2502. Local ordinance. |
27 | Nothing in this chapter shall impair or infringe upon the |
28 | preemption or supersedure of the regulation of gas wells under |
29 | section 602 of the act of December 19, 1984 (P.L.1140, No.223), |
30 | known as the Oil and Gas Act. |
|
1 | Section 2. This act shall take effect as follows: |
2 | (1) This section shall take effect immediately. |
3 | (2) The addition of 58 Pa.C.S. § 2501 shall take effect |
4 | immediately. |
5 | (3) The remainder of this act shall take effect in 30 |
6 | days. |
7 | PART I | <-- |
8 | (RESERVED) |
9 | PART II |
10 | OVERSIGHT AND DEVELOPMENT |
11 | Chapter |
12 | 31. (Reserved) |
13 | 32. Regulation |
14 | 33. Model Ordinance |
15 | CHAPTER 31 |
16 | (RESERVED) |
17 | CHAPTER 32 |
18 | REGULATION |
19 | Subchapter |
20 | A. Preliminary Provisions |
21 | B. General Requirements |
22 | C. Underground Gas Storage |
23 | D. Eminent Domain |
24 | E. Enforcement and Remedies |
25 | F. (Reserved) |
26 | G. Miscellaneous Provisions |
27 | SUBCHAPTER A |
28 | PRELIMINARY PROVISIONS |
29 | Sec. |
30 | 3201. Scope of chapter. |
|
1 | 3202. Declaration of purpose. |
2 | 3203. Definitions. |
3 | § 3201. Scope of chapter. |
4 | This chapter relates to oil and gas. |
5 | § 3202. Declaration of purpose. |
6 | The purposes of this chapter are to: |
7 | (1) Permit optimal development of oil and gas resources |
8 | of this Commonwealth consistent with protection of the |
9 | health, safety, environment and property of Pennsylvania |
10 | citizens. |
11 | (2) Protect the safety of personnel and facilities |
12 | employed in coal mining or exploration, development, storage |
13 | and production of natural gas or oil. |
14 | (3) Protect the safety and property rights of persons |
15 | residing in areas where mining, exploration, development, |
16 | storage or production occurs. |
17 | (4) Protect the natural resources, environmental rights |
18 | and values secured by the Constitution of Pennsylvania. |
19 | § 3203. Definitions. |
20 | The following words and phrases when used in this chapter |
21 | shall have the meanings given to them in this section unless the |
22 | context clearly indicates otherwise: |
23 | "Abandoned well." Any of the following: |
24 | (1) A well: |
25 | (i) that has not been used to produce, extract or |
26 | inject any gas, petroleum or other liquid within the |
27 | preceding 12 months; |
28 | (ii) for which equipment necessary for production, |
29 | extraction or injection has been removed; or |
30 | (iii) considered dry and not equipped for production |
|
1 | within 60 days after drilling, redrilling or deepening. |
2 | (2) The term does not include wells granted inactive |
3 | status. |
4 | "Alteration." An operation which changes the physical |
5 | characteristics of a well bore, including stimulation or |
6 | removing, repairing or changing the casing. For the purpose of |
7 | this chapter, the term does not include: |
8 | (1) Repairing or replacing of the casing if the |
9 | operation does not affect the depth or diameter of the well |
10 | bore, the use or purpose of the well does not change and the |
11 | activity complies with regulations promulgated under this |
12 | chapter. This paragraph shall not apply: |
13 | (i) to production casings in coal areas when the |
14 | production casings are also the coal protection casings; |
15 | or |
16 | (ii) when the method of repairing or replacing the |
17 | casing would affect the coal protection casing. |
18 | (2) Stimulation of a well. |
19 | "Board." The Oil and Gas Technical Advisory Board. |
20 | "Bridge." An obstruction placed in a well at any depth. |
21 | "Building." An occupied structure with walls and roof within |
22 | which persons live or customarily work. |
23 | "Casing." A string or strings of pipe commonly placed in |
24 | wells drilled for natural gas or petroleum. |
25 | "Cement" or "cement grout." Any of the following: |
26 | (1) Hydraulic cement properly mixed with water only. |
27 | (2) A mixture of materials adequate for bonding or |
28 | sealing of well bores as approved by regulations promulgated |
29 | under this chapter. |
30 | "Coal mine." Any of the following: |
|
1 | (1) Operations in a coal seam, including excavated |
2 | portions, abandoned portions and places actually being |
3 | worked. |
4 | (2) Underground workings and shafts, slopes, tunnels and |
5 | other ways and openings, including those which are in the |
6 | course of being sunk or driven, along with all roads and |
7 | facilities connected with them below the surface. |
8 | "Coal operator." A person that operates or proposes to |
9 | operate a coal mine as an owner or lessee. |
10 | "Completion of a well." The date after treatment, if any, |
11 | that the well is properly equipped for production of oil or gas, |
12 | or, if the well is dry, the date that the well is abandoned. |
13 | "Department." The Department of Environmental Protection of |
14 | the Commonwealth. |
15 | "Drilling." The drilling or redrilling of a well or the |
16 | deepening of an existing well. |
17 | "Fresh groundwater." Water in that portion of the generally |
18 | recognized hydrologic cycle which occupies the pore spaces and |
19 | fractures of saturated subsurface materials. |
20 | "Gas." Any of the following: |
21 | (1) A fluid, combustible or noncombustible, which is |
22 | produced in a natural state from the earth and maintains a |
23 | gaseous or rarified state at standard temperature of 60 |
24 | degrees Fahrenheit and pressure 14.7 PSIA. |
25 | (2) Any manufactured gas, byproduct gas or mixture of |
26 | gases. |
27 | "Inactivate." To shut off the vertical movement of gas in a |
28 | gas storage well by means of a temporary plug or other suitable |
29 | device or by injecting bentonitic mud or other equally nonporous |
30 | material into the well. |
|
1 | "Linear foot." A unit or measurement in a straight line on a |
2 | horizontal plane. |
3 | "Oil." Hydrocarbons in liquid form at standard temperature |
4 | of 60 degrees Fahrenheit and pressure 14.7 PSIA, also referred |
5 | to as petroleum. |
6 | "Operating coal mine." Any of the following: |
7 | (1) An underground coal mine which is producing coal or |
8 | has been in production of coal at any time during the 12 |
9 | months immediately preceding the date its status is put in |
10 | question, including contiguous worked-out or abandoned coal |
11 | mines to which it is connected underground. |
12 | (2) An underground coal mine to be established or |
13 | reestablished under paragraph (1). |
14 | "Operating well." A well that is not plugged and abandoned. |
15 | "Orphan well." A well abandoned prior to April 18, 1985, |
16 | that has not been affected or operated by the present owner or |
17 | operator and from which the present owner, operator or lessee |
18 | has received no economic benefit other than as a landowner or |
19 | recipient of a royalty interest from the well. |
20 | "Outside coal boundaries." When used in conjunction with the |
21 | term "operating coal mine," the boundaries of the coal acreage |
22 | assigned to the coal mine under an underground mine permit |
23 | issued by the Department of Environmental Protection. |
24 | "Owner." A person who owns, manages, leases, controls or |
25 | possesses a well or coal property. The term does not apply to |
26 | orphan wells, except where the Department of Environmental |
27 | Protection determines a prior owner or operator benefited from |
28 | the well as provided in section 3220(a) (relating to plugging |
29 | requirements). |
30 | "Person." An individual, association, partnership, |
|
1 | corporation, political subdivision or agency of the Federal |
2 | Government, State government or other legal entity. |
3 | "Petroleum." Hydrocarbons in liquid form at standard |
4 | temperature of 60 degrees Fahrenheit and pressure 14.7 PSIA, |
5 | also referred to as oil. |
6 | "Pillar." A solid block of coal surrounded by either active |
7 | mine workings or a mined-out area. |
8 | "Plat." A map, drawing or print accurately drawn to scale |
9 | showing the proposed or existing location of a well or wells. |
10 | "Reservoir protective area." The area surrounding a storage |
11 | reservoir boundary, but within 2,000 linear feet of the storage |
12 | reservoir boundary, unless an alternate area has been designated |
13 | by the Department of Environmental Protection, which is deemed |
14 | reasonably necessary to afford protection to the reservoir, |
15 | under a conference held in accordance with section 3251 |
16 | (relating to conferences). |
17 | "Retreat mining." Removal of coal pillars, ribs and stumps |
18 | remaining after development mining has been completed in that |
19 | section of a coal mine. |
20 | "Secretary." The Secretary of Environmental Protection of |
21 | the Commonwealth. |
22 | "Storage operator." A person who operates or proposes to |
23 | operate a storage reservoir as an owner or lessee. |
24 | "Storage reservoir." That portion of a subsurface geological |
25 | stratum into which gas is or may be injected for storage |
26 | purposes or to test suitability of the stratum for storage. |
27 | "Unconventional formation." A geological formation existing |
28 | below the base of the Elk Sandstone or its geologic equivalent |
29 | stratigraphic interval where natural gas generally cannot be |
30 | produced at economic flow rates or in economic volumes except by |
|
1 | vertical or horizontal well bores stimulated by hydraulic |
2 | fracture treatments or by using multilateral well bores or other |
3 | techniques to expose more of the formation of the well bore. |
4 | "Unconventional well." A bore hole drilled or being drilled |
5 | for the purpose of or to be used for the production of natural |
6 | gas from an unconventional formation. |
7 | "Well." A bore hole drilled or being drilled for the purpose |
8 | of, or to be used for, producing, extracting or injecting gas, |
9 | petroleum or another liquid related to oil or gas production or |
10 | storage, including brine disposal, but excluding a bore hole |
11 | drilled to produce potable water. The term does not include a |
12 | bore hole drilled or being drilled for the purpose of, or to be |
13 | used for: |
14 | (1) Systems of monitoring, producing or extracting gas |
15 | from solid waste disposal facilities, if the bore hole is a |
16 | well subject to the act of July 7, 1980 (P.L.380, No.97), |
17 | known as the Solid Waste Management Act, which does not |
18 | penetrate a workable coal seam. |
19 | (2) Degasifying coal seams, if the bore hole is: |
20 | (i) used to vent methane to the outside atmosphere |
21 | from an operating coal mine; regulated as part of the |
22 | mining permit under the act of June 22, 1937 (P.L.1987, |
23 | No.394), known as The Clean Streams Law, and the act of |
24 | May 31, 1945 (P.L.1198, No.418), known as the Surface |
25 | Mining Conservation and Reclamation Act; and drilled by |
26 | the operator of the operating coal mine for the purpose |
27 | of increased safety; or |
28 | (ii) used to vent methane to the outside atmosphere |
29 | under a federally funded or State-funded abandoned mine |
30 | reclamation project. |
|
1 | "Well operator" or "operator." Any of the following: |
2 | (1) The person designated as operator or well operator |
3 | on the permit application or well registration. |
4 | (2) If a permit or well registration was not issued, a |
5 | person who locates, drills, operates, alters or plugs a well |
6 | or reconditions a well with the purpose of production from |
7 | the well. |
8 | (3) If a well is used in connection with underground |
9 | storage of gas, a storage operator. |
10 | "Wetland." Areas inundated or saturated by surface or |
11 | groundwater at a frequency and duration sufficient to support, |
12 | and which normally support, a prevalence of vegetation typically |
13 | adapted for life in saturated soil conditions, including swamps, |
14 | marshes, bogs and similar areas. |
15 | "Workable coal seams." A coal seam which: |
16 | (1) is actually being mined in the area in question |
17 | under this chapter by underground methods; or |
18 | (2) in the judgment of the Department of Environmental |
19 | Protection, can reasonably be expected to be mined by |
20 | underground methods. |
21 | SUBCHAPTER B |
22 | GENERAL REQUIREMENTS |
23 | Sec. |
24 | 3211. Well permits. |
25 | 3212. Permit objections. |
26 | 3213. Well registration and identification. |
27 | 3214. Inactive status. |
28 | 3215. Well location restrictions. |
29 | 3216. Well site restoration. |
30 | 3217. Protection of fresh groundwater and casing requirements. |
|
1 | 3218. Protection of water supplies. |
2 | 3218.1. Containment for unconventional wells. |
3 | 3218.2. Transportation records regarding wastewater fluids. |
4 | 3218.3. Emergency response information. |
5 | 3219. Use of safety devices. |
6 | 3220. Plugging requirements. |
7 | 3221. Alternative methods. |
8 | 3222. Well reporting requirements. |
9 | 3223. Notification and effect of well transfer. |
10 | 3224. Coal operator responsibilities. |
11 | 3225. Bonding. |
12 | 3226. Oil and Gas Technical Advisory Board. |
13 | § 3211. Well permits. |
14 | (a) Permit required.--No person shall drill a well or alter |
15 | an existing well, except for alterations which satisfy the |
16 | requirements of subsection (j), without having first obtained a |
17 | well permit under subsections (b), (c), (d) and (e). A copy of |
18 | the permit shall be kept at the well site during preparation and |
19 | construction of the well site or access road, drilling, |
20 | operation or alteration of the well. No person shall be required |
21 | to obtain a permit to redrill a nonproducing well if the |
22 | redrilling: |
23 | (1) has been evaluated and approved as part of an order |
24 | from the department authorizing cleaning out and plugging or |
25 | replugging a nonproducing well under section 13(c) of the act |
26 | of December 18, 1984 (P.L.1069, No.214), known as the Coal |
27 | and Gas Resource Coordination Act; and |
28 | (2) is incidental to a plugging or replugging operation |
29 | and the well is plugged within 15 days of redrilling. |
30 | (b) Plat.--The permit application shall be accompanied by a |
|
1 | plat prepared by a competent engineer or a competent surveyor, |
2 | on forms furnished by the department, showing the political |
3 | subdivision and county in which the tract of land upon which the |
4 | well to be drilled, operated or altered, is located, the name of |
5 | the surface landowner of record and lessor, the name of all |
6 | surface landowners or water purveyors whose water supplies are |
7 | within 1,000 feet, or in the case of an unconventional well |
8 | within 3,000 feet from the well bore, the name of the owner of |
9 | record or operator of all known underlying workable coal seams, |
10 | the acreage in the tract to be drilled, the proposed location of |
11 | the well determined by survey, courses and distances of the |
12 | location from two or more permanent identifiable points or |
13 | landmarks on the tract boundary corners, the proposed angle and |
14 | direction of the well if the well is to be deviated |
15 | substantially from a vertical course, the number or other |
16 | identification to be given the well, workable coal seams |
17 | underlying the tract of land upon which the well is to be |
18 | drilled, operated or altered and which shall be cased off under |
19 | section 3217 (relating to protection of fresh groundwater and |
20 | casing requirements) and any other information needed by the |
21 | department to administer this chapter. The applicant shall |
22 | forward by certified mail a copy of the plat to the following: |
23 | (1) The surface landowner. |
24 | (2) All surface landowners or water purveyors whose |
25 | water supplies are within 1,000 feet of the proposed well |
26 | location or, in the case of an unconventional well, within |
27 | 3,000 feet of the well bore. |
28 | (3) The owner and lessee, if any, of any workable coal |
29 | seams and every coal operator required to be identified on |
30 | the well permit application and shall submit proof of such |
|
1 | notification with the well permit application. |
2 | (4) The municipality where the proposed unconventional |
3 | well is located and a municipality within 3,000 feet of the |
4 | proposed unconventional well bore. |
5 | (b.1) Notification.--Notification of surface owners shall be |
6 | performed by sending notice to those persons to whom the tax |
7 | notices for the surface property are sent, as indicated in the |
8 | assessment books in the county in which the property is located. |
9 | Notification of surface landowners or water purveyors whose |
10 | water supplies are within 1,000 feet, or in the case of an |
11 | unconventional well within 3,000 feet of the well bore shall be |
12 | on forms, and in a manner prescribed by the department, |
13 | sufficient to identify the rights afforded those persons under |
14 | section 3218 (relating to protection of water supplies) and |
15 | advise them of the advisability of taking their own predrilling |
16 | or prealteration survey. The applicant shall submit proof of |
17 | compliance with this subsection with the well permit |
18 | application. |
19 | (b.2) Approval.--If the applicant submits to the department |
20 | written approval of the proposed well location by the surface |
21 | landowner and the coal operator, lessee or owner of any coal |
22 | underlying the proposed well location and no objections are |
23 | raised by the department within 15 days of filing, or if no |
24 | approval has been submitted and no objections are made to the |
25 | proposed well location within 15 days from receipt of notice by |
26 | the department, lessee or owner, the written approval shall be |
27 | filed and become a permanent record of the well location, |
28 | subject to inspection at any time by any interested person. The |
29 | application form to operate an abandoned or orphan well shall |
30 | provide notification to the applicant of its responsibilities to |
|
1 | plug the well upon abandonment. |
2 | (c) Applicants.--If the applicant for a well permit is a |
3 | corporation, partnership or person that is not a resident of |
4 | this Commonwealth, the applicant shall designate the name and |
5 | address of an agent for the operator who shall be the attorney- |
6 | in-fact for the operator and who shall be a resident of this |
7 | Commonwealth upon whom notices, orders or other communications |
8 | issued under this chapter may be served and upon whom process |
9 | may be served. Each well operator required to designate an agent |
10 | under this section shall, within five days after termination of |
11 | the designation, notify the department of the termination and |
12 | designate a new agent. |
13 | (d) Permit fee.--Each application for a well permit shall be |
14 | accompanied by a permit fee, established by regulation of the |
15 | Environmental Quality Board, which bears a reasonable |
16 | relationship to the cost of administering this chapter. |
17 | (e) Issuance of permit.--The department shall issue a permit |
18 | within 45 days of submission of an application unless the |
19 | department denies the permit application for any of the reasons |
20 | set forth in subsection (e.1), except that the department shall |
21 | have the right to extend the period for 15 days for cause shown |
22 | upon notification to the applicant of the reasons for the |
23 | extension. The department may impose permit terms and conditions |
24 | necessary to assure compliance with this chapter or other laws |
25 | administered by the department. |
26 | (e.1) Denial of permit.--The department may deny a permit |
27 | for any of the following reasons: |
28 | (1) The well site for which a permit is requested is in |
29 | violation of this chapter or issuance of the permit would |
30 | result in a violation of this chapter or other applicable |
|
1 | law. |
2 | (2) The permit application is incomplete. |
3 | (3) Unresolved objections to the well location by coal |
4 | mine owner or operator remain. |
5 | (4) The requirements of section 3225 (relating to |
6 | bonding) have not been met. |
7 | (5) The applicant, with respect to any other well |
8 | operated by the applicant, is in continuing violation of this |
9 | chapter or other applicable law administered by the |
10 | department and the likely result of the violation is an |
11 | unsafe operation or environmental damage. If a final |
12 | determination has been made in the applicant's favor, the |
13 | permit denied shall be reconsidered and the violation shall |
14 | not be a consideration in the awarding of the permit. The |
15 | department may not collect an application fee for the |
16 | reconsideration. |
17 | (6) The applicant failed to pay or file a report under |
18 | section 2303(d) and (e) (relating to administration), unless |
19 | a valid appeal is in process. The commission shall notify the |
20 | department of any applicant who has failed to pay or file a |
21 | return and who does not have a valid appeal pending. |
22 | (7) An applicant to drill an unconventional well does |
23 | not have a reasonable written plan to reuse at least 30% of |
24 | the total water that will be used to hydraulically fracture |
25 | the well. |
26 | (f) Drilling.--Upon issuance of a permit, the well operator |
27 | may proceed to drill, operate or alter the well at the exact |
28 | location shown on the plat after providing the department, the |
29 | surface landowner and the local political subdivision in which |
30 | the well is to be located 24 hours' notice of the date that |
|
1 | drilling will commence. In noncoal areas where more than one |
2 | well is to be drilled as part of the same development project, |
3 | only the first well of the project need be located by survey. |
4 | Remaining wells of the project shall be shown on the plat in a |
5 | manner prescribed by regulation. Prior to drilling each |
6 | additional project well, the well operator shall notify the |
7 | department and provide reasonable notice of the date on which |
8 | drilling will commence. Whenever, before or during the drilling |
9 | of a well not within the boundaries of an operating coal mine, |
10 | the well operator encounters conditions of a nature which |
11 | renders drilling of the bore hole or a portion thereof |
12 | impossible, or more hazardous than usual, the well operator, |
13 | upon verbal notice to the department, may immediately plug all |
14 | or part of the bore hole, if drilling has occurred, and commence |
15 | a new bore hole not more than 50 feet from the old bore hole if |
16 | the location of the new bore hole does not violate section 3215 |
17 | (relating to well location restrictions) and, in the case of a |
18 | well subject to act of July 25, 1961 (P.L.825, No.359), known as |
19 | the Oil and Gas Conservation Law, if the new location complies |
20 | with existing laws, regulations and spacing orders and the new |
21 | bore hole is at least 330 feet from the nearest lease boundary. |
22 | Within ten days of commencement of the new bore hole, the well |
23 | operator shall file with the department a written notice of |
24 | intention to plug, a well record, a completion report, a |
25 | plugging certificate for the original bore hole and an amended |
26 | plat for the new bore hole. The well operator shall forward a |
27 | copy of the amended plat to the surface landowner identified on |
28 | the well permit application within ten days of commencement of |
29 | the new well bore. |
30 | (g) Posting.--The well permit number and operator's name, |
|
1 | address and telephone number shall be conspicuously posted at |
2 | the drilling site prior to initiating preparation and during |
3 | construction of the well site or access road, drilling, |
4 | operation or alteration of the well. |
5 | (h) Labeling.--The well operator shall install the permit |
6 | number issued by the department in a legible, visible and |
7 | permanent manner on the well upon completion. |
8 | (i) Expiration.--Well permits issued for drilling wells |
9 | under this chapter shall expire one year after issuance unless |
10 | operations for drilling the well are commenced within the period |
11 | and pursued with due diligence or unless the permit is renewed |
12 | in accordance with regulations of the department. If drilling is |
13 | commenced during the one-year period, the well permit shall |
14 | remain in force until the well is plugged in accordance with |
15 | section 3220 (relating to plugging requirements) or the permit |
16 | is revoked. A drilling permit issued prior to April 18, 1985, |
17 | for a well which is an operating well on April 18, 1985, shall |
18 | remain in force as a well permit until the well is plugged in |
19 | accordance with section 3220. Nothing in this subsection shall |
20 | be construed to rescind the provisions pertaining to drilling |
21 | permits contained in the Oil and Gas Conservation Law. |
22 | (j) Exceptions.--The Environmental Quality Board may |
23 | establish by regulation certain categories of alterations of |
24 | permitted or registered wells for which permitting requirements |
25 | of this section shall not apply. A well operator or owner who |
26 | proposes to conduct the alteration activity shall first obtain a |
27 | permit or registration modification from the department. The |
28 | Environmental Quality Board shall promulgate regulations as to |
29 | the requirements for modifications. |
30 | (k) No transfer permitted.--No permit issued under this |
|
1 | section or registration issued under section 3213 (relating to |
2 | well registration and identification) may be transferred without |
3 | prior approval of the department. A request for approval of a |
4 | transfer shall be on the forms, and in the manner, prescribed by |
5 | the department. The department shall approve or deny a transfer |
6 | request within 45 days of receipt of a complete and accurate |
7 | application. The department may deny a request only for reasons |
8 | set forth in subsection (e.1)(4), (5) and (6). Approval of a |
9 | transfer request shall permanently transfer responsibility to |
10 | plug the well under section 3220 to the recipient of the |
11 | transferred permit or registration. The department may establish |
12 | a procedure for accelerated approval of well permit applications |
13 | in hardship cases, as defined by regulation of the Environmental |
14 | Quality Board, consistent with the requirements of this chapter. |
15 | § 3212. Permit objections. |
16 | (a) General rule.--If a well referred to in section 3211(b) |
17 | (relating to well permits) will be located on a tract whose |
18 | surface is owned by a person other than the well operator, the |
19 | surface landowner affected shall be notified of the intent to |
20 | drill and may file objections, in accordance with section 3251 |
21 | (relating to conferences), based on the assertion that the well |
22 | location violates section 3215 (relating to well location |
23 | restrictions) or that information in the application is untrue |
24 | in any material respect, within 15 days of the receipt by the |
25 | surface owner of the plat under section 3211(b). Receipt of |
26 | notice by the surface owner shall be presumed to have occurred |
27 | 15 days from the date of the certified mailing when the well |
28 | operator submits a copy of the certified mail receipt sent to |
29 | the surface owner and an affidavit certifying that the address |
30 | of the surface owner to which notice was sent is the same as the |
|
1 | address listed in the assessment books in the county where the |
2 | property is located. If no objection is filed or none is raised |
3 | by the department within 15 days after receipt of the plat by |
4 | the surface landowner, or if written approval by the surface |
5 | landowner is filed with the department and no objection is |
6 | raised by the department within 15 days of filing, the |
7 | department shall proceed to issue or deny the permit. |
8 | (b) Special circumstances.--If a well referred to in section |
9 | 3211(b) will penetrate within the outside coal boundaries of an |
10 | operating coal mine or a coal mine already projected and platted |
11 | but not yet being operated, or within 1,000 linear feet beyond |
12 | those boundaries, and, in the opinion of the coal owner or |
13 | operator, the well or a pillar of coal about the well will |
14 | unduly interfere with or endanger the mine, the coal owner or |
15 | operator affected may file objections under section 3251 to the |
16 | proposed location within 15 days of the receipt by the coal |
17 | operator of the plat under section 3211(b). If possible, an |
18 | alternative location at which the proposed well could be drilled |
19 | to overcome the objections shall be indicated. If no objection |
20 | to the proposed location is filed or if none is raised by the |
21 | department within 15 days after receipt of the plat by the coal |
22 | operator or owner, or if written approval by the coal operator |
23 | or owner of the location is filed with the department and no |
24 | objection is raised by the department within 15 days of filing, |
25 | the department shall proceed to issue or deny the permit. |
26 | (c) Procedure upon objection.--If an objection is filed by a |
27 | coal operator or owner or made by the department, the department |
28 | shall fix a time and place for a conference under section 3251 |
29 | not more than ten days from the date of service of the objection |
30 | to allow the parties to consider the objection and attempt to |
|
1 | agree on a location. If they fail to agree, the department, by |
2 | an appropriate order, shall determine a location on the tract of |
3 | land as near to the original location as possible where, in the |
4 | judgment of the department, the well can be safely drilled |
5 | without unduly interfering with or endangering the mine as |
6 | defined in subsection (b). The new location agreed upon by the |
7 | parties or determined by the department shall be indicated on |
8 | the plat on file with the department and become a permanent |
9 | record upon which the department shall proceed to issue or deny |
10 | the permit. |
11 | (d) Survey.--Within 120 days after commencement of drilling |
12 | operations, the coal operator shall accurately locate the well |
13 | by a closed survey on the same datum as the mine workings or |
14 | coal boundaries are mapped, file the results of the survey with |
15 | the department and forward a copy by certified mail to the well |
16 | operator. |
17 | § 3213. Well registration and identification. |
18 | (a) General rule.--On or before July 5, 1996, each person |
19 | who owned or operated a well in existence prior to April 18, |
20 | 1985, which has not been registered with the department and for |
21 | which no drilling permit has been issued by the department, |
22 | shall register the well with the department. A well owner or |
23 | operator who registers under this subsection and a well owner or |
24 | operator who has previously registered a well under this chapter |
25 | shall, on or before July 5, 1996, identify any abandoned well on |
26 | property which the well owner or operator owns or leases and |
27 | request approval from the department for classification of the |
28 | well as an orphan well. Information regarding wells to be |
29 | registered or identified shall be provided on a form, or in a |
30 | manner, prescribed by the department and shall include: |
|
1 | (1) The name and address of the well operator and, if |
2 | the well operator is a corporation, partnership or person |
3 | nonresident of this Commonwealth, the name and address of an |
4 | agent for the operator upon whom notices, orders, process or |
5 | other communications issued under this chapter may be served. |
6 | (2) The well name and the location of the well indicated |
7 | by a point on a 7 1/2 minute United States Geological Survey |
8 | topographic map or any other location description sufficient |
9 | to enable the department to locate the well on the ground. |
10 | (3) The approximate date of drilling and completing the |
11 | well, its approximate depth and producing horizons, well |
12 | construction information and, if available, driller's logs. |
13 | (4) An indemnity bond, an alternative fee in lieu of |
14 | bonding or other evidence of financial security submitted by |
15 | the well operator and deemed appropriate by the department |
16 | and satisfying the requirements of section 3225 (relating to |
17 | bonding). No bond, alternative fee or other evidence of |
18 | financial security shall be required for identification of an |
19 | orphan well. For wells drilled prior to January 30, 1956, |
20 | which have not been bonded, the well operator shall have five |
21 | years to comply with the provisions of this paragraph. |
22 | (5) A registration fee of $15 per well or blanket |
23 | registration fee of $250 for multiple well registration |
24 | applications submitted simultaneously. The registration fee |
25 | shall be waived until July 5, 1996, and no fee shall be |
26 | charged for identification of an orphan well. |
27 | (a.1) Orphan wells.--After July 5, 1996, a well owner, well |
28 | operator or other person discovering an abandoned well on |
29 | property purchased or leased by the well owner, well operator or |
30 | other person shall identify it to the department within 60 days |
|
1 | of discovery and advise the department that he is seeking |
2 | classification of the well as an orphan well. No fee shall be |
3 | required for identification. |
4 | (b) Extension.--The department may extend the one-year time |
5 | period under subsection (a) for good cause shown. The extension |
6 | may not exceed a period ending two years from April 18, 1985. |
7 | The department may adopt and promulgate guidelines designed to |
8 | ensure a fair implementation of this section, recognizing the |
9 | practical difficulties of locating unpermitted wells and |
10 | complying with the reporting requirements of this chapter. |
11 | (c) Installation of registration number.--The well operator |
12 | shall install the registration number issued by the department |
13 | in a legible, conspicuous and permanent manner on the well |
14 | within 60 days of issuance. |
15 | (d) Definition.--For purposes of subsection (a)(4) and (5), |
16 | the term "owner" does not include an owner or possessor of |
17 | surface real property, on which an abandoned well is located, |
18 | who did not participate or incur costs in, and had no right of |
19 | control over, the drilling or extraction operation of the |
20 | abandoned well. |
21 | § 3214. Inactive status. |
22 | (a) General rule.--Upon application, the department shall |
23 | grant inactive status for a period of five years for a permitted |
24 | or registered well, if the following requirements are met: |
25 | (1) the condition of the well is sufficient to prevent |
26 | damage to the producing zone or contamination of fresh water |
27 | or other natural resources or surface leakage of any |
28 | substance; |
29 | (2) the condition of the well is sufficient to stop the |
30 | vertical flow of fluids or gas within the well bore and is |
|
1 | adequate to protect freshwater aquifers, unless the |
2 | department determines the well poses a threat to the health |
3 | and safety of persons or property or to the environment; |
4 | (3) the operator anticipates construction of a pipeline |
5 | or future use of the well for primary or enhanced recovery, |
6 | gas storage, approved disposal or other appropriate uses |
7 | related to oil and gas well production; and |
8 | (4) the applicant satisfies the bonding requirements of |
9 | sections 3213 (relating to well registration and |
10 | identification) and 3225 (relating to bonding), except that |
11 | the department may require additional financial security for |
12 | a well on which an alternative fee is being paid in lieu of |
13 | bonding under section 3225(d). |
14 | (b) Monitoring.--The owner or operator of a well granted |
15 | inactive status shall be responsible for monitoring the |
16 | mechanical integrity of the well to ensure that the requirements |
17 | of subsection (a)(1) and (2) are met and shall report the same |
18 | on an annual basis to the department in the manner and form |
19 | prescribed by departmental regulations. |
20 | (c) (Reserved). |
21 | (d) Return to active status.--A well granted inactive status |
22 | under subsection (a) shall be plugged in accordance with section |
23 | 3220 (relating to plugging requirements) or returned to active |
24 | status within five years of the date inactive status was |
25 | granted, unless the owner or operator applies for an extension |
26 | of inactive status which may be granted on a year-to-year basis |
27 | if the department determines that the owner or operator has |
28 | demonstrated ability to continue meeting the requirements of |
29 | this section and the owner or operator certifies that the well |
30 | will be of future use within a reasonable period of time. An |
|
1 | owner or operator who has been granted inactive status for a |
2 | well which is returned to active status prior to expiration of |
3 | the five-year period set forth in subsection (a) shall notify |
4 | the department that the well has been returned to active status |
5 | and shall not be permitted to apply for another automatic five- |
6 | year period of inactive status for the well. The owner or |
7 | operator may make application to return the well to inactive |
8 | status, and the application may be approved on a year-to-year |
9 | basis if the department determines that the owner or operator |
10 | has demonstrated an ability to continue meeting the requirements |
11 | of this section and the owner or operator certifies that the |
12 | well will be of future use within a reasonable period of time. |
13 | The department shall approve or deny an application to extend a |
14 | period of inactive status or to return a well to inactive status |
15 | within 60 days of receipt of the application, and the |
16 | application shall not be unreasonably denied. If the department |
17 | has not completed its review of the application within 60 days, |
18 | the inactive status shall continue until the department has made |
19 | a determination on the request. If the department denies an |
20 | application to extend the period of inactive status or to return |
21 | a well to inactive status, a well owner or operator aggrieved by |
22 | the denial shall have the right to appeal the denial to the |
23 | Environmental Hearing Board within 30 days of receipt of the |
24 | denial. Upon cause shown by a well owner or operator, the board |
25 | may grant a supersedeas under section 4 of the act of July 13, |
26 | 1988 (P.L.530, No.94), known as the Environmental Hearing Board |
27 | Act, so that the well in question may retain inactive status |
28 | during the period of the appeal. |
29 | (e) Revocation of inactive status.--The department may |
30 | revoke inactive status and order immediate plugging of a well if |
|
1 | the well is in violation of this chapter or rules or regulations |
2 | promulgated under this chapter or if the owner or operator |
3 | demonstrates inability to perform obligations under this chapter |
4 | or becomes financially insolvent, or upon receipt by the |
5 | department of notice of bankruptcy proceedings by the permittee. |
6 | § 3215. Well location restrictions. |
7 | (a) General rule.--Wells may not be drilled within 200 feet, |
8 | or in the case of an unconventional well within 500 feet, |
9 | measured horizontally from any existing building or existing |
10 | water well without written consent of the owner of the building |
11 | or water well. If the distance restriction would deprive the |
12 | owner of the oil and gas rights of the right to produce or share |
13 | in the oil or gas underlying the surface tract, the well |
14 | operator may be granted a variance from the distance restriction |
15 | upon submission of a plan identifying the additional measures, |
16 | facilities or practices to be employed during well site |
17 | construction, drilling and operations. The variance, if granted, |
18 | shall include additional terms and conditions required by the |
19 | department to ensure safety and protection of affected persons |
20 | and property, including insurance, bonding, indemnification and |
21 | technical requirements. |
22 | (b) Limitation.--No well site may be prepared or well |
23 | drilled within 100 feet, or in the case of an unconventional |
24 | well within 300 feet, measured horizontally from any stream, |
25 | spring or body of water as identified on the most current 7 1/2 |
26 | minute topographic quadrangle map of the United States |
27 | Geological Survey or within 100 feet of any wetlands greater |
28 | than one acre in size. No unconventional well may be located |
29 | within 1,000 feet from a public water supply source as defined |
30 | in the Safe Drinking Water Act (Public Law 93-523, 21 U.S.C. § |
|
1 | 349 and 42 U.S.C. §§ 201 and 300f et seq.). The department may |
2 | waive the distance restrictions upon submission of a plan |
3 | identifying additional measures, facilities or practices to be |
4 | employed during well site construction, drilling and operations. |
5 | The waiver, if granted, shall impose permit conditions necessary |
6 | to protect the waters of the Commonwealth. |
7 | (c) Impact.--On making a determination on a well permit, the |
8 | department shall consider and may deny or condition a well |
9 | permit based on the impact of the proposed well on public |
10 | resources, including, but not limited to: |
11 | (1) Publicly owned parks, forests, game lands and |
12 | wildlife areas. |
13 | (2) National or State scenic rivers. |
14 | (3) National natural landmarks. |
15 | (4) Habitats of rare and endangered flora and fauna and |
16 | other critical communities. |
17 | (5) Historical and archaeological sites listed on the |
18 | Federal or State list of historic places. |
19 | (6) Sources used for public drinking water supplies. |
20 | (7) Whether the proposed well location is within a |
21 | floodplain. |
22 | (d) Additional protective measures.--The department may |
23 | establish additional protective measures for storage of |
24 | hazardous chemicals and materials intended to be used, or that |
25 | have been used, on an unconventional well drilling site within |
26 | 750 feet of a stream, spring or body of water identified on the |
27 | most current 7 1/2 minute topographic quadrangle map of the |
28 | United States Geological Survey. |
29 | § 3216. Well site restoration. |
30 | (a) General rule.--Each oil or gas well owner or operator |
|
1 | shall restore the land surface within the area disturbed in |
2 | siting, drilling, completing and producing the well. |
3 | (b) Plan.--During and after earthmoving or soil disturbing |
4 | activities, including, but not limited to, activities related to |
5 | siting, drilling, completing, producing and plugging the well, |
6 | erosion and sedimentation control measures shall be implemented |
7 | in accordance with an erosion and sedimentation control plan |
8 | prepared in accordance with the act of June 22, 1937 (P.L.1987, |
9 | No.394), known as The Clean Streams Law. |
10 | (c) Pits, drilling supplies and equipment.--Within nine |
11 | months after completion of drilling of a well, the owner or |
12 | operator shall restore the well site, remove or fill all pits |
13 | used to contain produced fluids or industrial wastes and remove |
14 | all drilling supplies and equipment not needed for production. |
15 | Drilling supplies and equipment not needed for production may be |
16 | stored on the well site if express written consent of the |
17 | surface landowner is obtained. |
18 | (d) Items related to production or storage.--Within nine |
19 | months after plugging a well, the owner or operator shall remove |
20 | all production or storage facilities, supplies and equipment and |
21 | restore the well site. |
22 | (e) Clean Streams Law.--Restoration activities required by |
23 | this chapter or in regulations promulgated under this chapter |
24 | shall also comply with all applicable provisions of The Clean |
25 | Streams Law. |
26 | (f) Violation of chapter.--Failure to restore the well site |
27 | as required in this chapter or regulations promulgated under |
28 | this chapter constitutes a violation of this chapter. |
29 | (g) Extension.--The restoration period may be extended by |
30 | the department for an additional six months upon application of |
|
1 | the well owner or operator upon evidence of inability to comply |
2 | due to adverse weather conditions or lack of essential fuel, |
3 | equipment or labor. |
4 | § 3217. Protection of fresh groundwater and casing |
5 | requirements. |
6 | (a) General rule.--To aid in protection of fresh |
7 | groundwater, well operators shall control and dispose of brines |
8 | produced from the drilling, alteration or operation of an oil or |
9 | gas well in a manner consistent with the act of June 22, 1937 |
10 | (P.L.1987, No.394), known as The Clean Streams Law, or any rule |
11 | or regulation promulgated under The Clean Streams Law. |
12 | (b) Casing.--To prevent migration of gas or fluids into |
13 | sources of fresh groundwater and pollution or diminution of |
14 | fresh groundwater, a string or strings of casing shall be run |
15 | and permanently cemented in each well drilled through the fresh |
16 | water-bearing strata to a depth and in a manner prescribed by |
17 | regulation by the department. |
18 | (c) Procedure when coal has been removed.--If a well is |
19 | drilled at a location where coal has been removed from one or |
20 | more coal seams, the well shall be drilled and cased to prevent |
21 | migration of gas or fluids into the seam from which coal has |
22 | been removed, in a manner prescribed by regulation of the |
23 | department. The department and the coal operator, owner or |
24 | lessee shall be given at least 72 hours' notice prior to |
25 | commencement of work protecting the mine. |
26 | (d) Procedure when coal has not been removed.--If a well is |
27 | drilled at a location where the coal seam has not been removed, |
28 | the well shall be drilled to a depth and of a size sufficient to |
29 | permit placement of casing, packers in and vents on the hole at |
30 | the points and in the manner prescribed by regulation to exclude |
|
1 | gas or fluids from the coal seam, except gas or fluids found |
2 | naturally in the seam itself, and to enable monitoring the |
3 | integrity of the production casing. |
4 | § 3218. Protection of water supplies. |
5 | (a) General rule.--In addition to the requirements of |
6 | subsection (c.1), a well operator who affects a public or |
7 | private water supply by pollution or diminution shall restore or |
8 | replace the affected supply with an alternate source of water |
9 | adequate in quantity or quality for the purposes served by the |
10 | supply. The department shall ensure the restored or replaced |
11 | water supply meets the applicable water quality standards |
12 | consistent with the Safe Drinking Water Act (Public Law 93-523, |
13 | 21 U.S.C. § 349 and 42 U.S.C. §§ 201 and 300f et seq.), the act |
14 | of May 1, 1984 (P.L.206, No.43), known as the Pennsylvania Safe |
15 | Drinking Water Act, and predrilling or alteration water quantity |
16 | standards as determined by the department. The Environmental |
17 | Quality Board shall promulgate regulations necessary to meet the |
18 | requirements of this subsection. |
19 | (b) Pollution or diminution of water supply.--A landowner or |
20 | water purveyor suffering pollution or diminution of a water |
21 | supply as a result of the drilling, alteration or operation of |
22 | an oil or gas well may so notify the department and request that |
23 | an investigation be conducted. Within ten days of notification, |
24 | the department shall investigate the claim and make a |
25 | determination within 45 days following notification. If the |
26 | department finds that the pollution or diminution was caused by |
27 | drilling, alteration or operation activities or if it presumes |
28 | the well operator responsible for pollution under subsection |
29 | (c), the department shall issue orders to the well operator |
30 | necessary to assure compliance with subsection (a), including |
|
1 | orders requiring temporary replacement of a water supply where |
2 | it is determined that pollution or diminution may be of limited |
3 | duration. |
4 | (b.1) Toll-free telephone number.--The department shall |
5 | establish a single Statewide toll-free telephone number that |
6 | persons may use to report cases of water contamination. The |
7 | Statewide toll-free telephone number shall be provided in a |
8 | conspicuous manner in the notification required under section |
9 | 3211(b.1) (relating to well permits) and on the department's |
10 | Internet website. |
11 | (b.2) Responses to calls.--The department shall develop |
12 | appropriate administrative responses to calls received on the |
13 | Statewide toll-free telephone number for water contamination. |
14 | (c) Presumption.--Unless rebutted by a defense established |
15 | in subsection (d), it shall be presumed that a well operator is |
16 | responsible for pollution of a water supply that is within 1,000 |
17 | feet, or in the case of an unconventional well within 3,000 |
18 | feet, of an oil or gas well, if pollution occurred within 12 |
19 | months after stimulation or alteration of the well. |
20 | (c.1) Requirement.--If the affected water supply is within |
21 | the rebuttable presumption area as provided in subsection (c) |
22 | and the rebuttable presumption applies and the water user is |
23 | without a readily available alternative source of water, the |
24 | operator shall provide a temporary water supply. The temporary |
25 | water supply provided under this subsection shall be adequate in |
26 | quantity and quality for the purposes served by the supply. |
27 | (d) Defenses.--To rebut the presumption established under |
28 | subsection (c), a well operator must affirmatively prove any of |
29 | the following: |
30 | (1) The pollution existed prior to the drilling, |
|
1 | stimulation or alteration activities as determined by a |
2 | predrilling or prealteration survey. |
3 | (2) The landowner or water purveyor refused to allow the |
4 | operator access to conduct a predrilling or prealteration |
5 | survey. |
6 | (3) The water supply is not within 1,000 feet, or in the |
7 | case of an unconventional well within 3,000 feet, of the |
8 | well. |
9 | (4) The pollution occurred more than 12 months after |
10 | drilling, stimulation or alteration activities. |
11 | (5) The pollution occurred as the result of a cause |
12 | other than the drilling, stimulation or alteration activity. |
13 | (e) Independent certified laboratory.--An operator electing |
14 | to preserve a defense under subsection (d)(1) or (2) shall |
15 | retain an independent certified laboratory to conduct a |
16 | predrilling or prealteration survey of the water supply. A copy |
17 | of survey results shall be submitted to the department and the |
18 | landowner or water purveyor in the manner prescribed by the |
19 | department. |
20 | (f) Other remedies preserved.--Nothing in this section shall |
21 | prevent a landowner or water purveyor claiming pollution or |
22 | diminution of a water supply from seeking any other remedy at |
23 | law or in equity. |
24 | (g) Facility operation qualifications.--The department shall |
25 | ensure that a facility which seeks a National Pollutant |
26 | Discharge Elimination System permit for the purposes of treating |
27 | and discharging wastewater originating from oil and gas |
28 | activities into waters of this Commonwealth is operated by a |
29 | competent and qualified individual. |
30 | § 3218.1. Containment for unconventional wells. |
|
1 | (a) Sites.--Unconventional well pad sites shall be designed |
2 | and constructed to prevent spills to the ground surface or |
3 | spills off the well pad area. Containment practices shall meet |
4 | all of the following: |
5 | (1) Be instituted on the pad during both drilling and |
6 | hydraulic fracturing operations. |
7 | (2) Be sufficiently impervious and able to contain |
8 | spilled material or waste until it can be removed or treated. |
9 | (3) Be compatible with the waste material or waste |
10 | stored or used within the containment. |
11 | (b) Plan.--The applicant shall submit a plan to the |
12 | department describing the containment practices to be utilized |
13 | and the area of the well pad where containment systems will be |
14 | employed. The plan shall include a description of the equipment |
15 | to be kept onsite during drilling and hydraulic fracturing |
16 | operations to prevent a spill from leaving the well pad. |
17 | (c) Materials stored.--Containment systems shall be used |
18 | wherever any of the following are stored: |
19 | (1) Drilling mud. |
20 | (2) Hydraulic oil. |
21 | (3) Diesel fuel. |
22 | (4) Drilling mud additives. |
23 | (5) Hydraulic fracturing additives. |
24 | (6) Hydraulic fracturing flowback. |
25 | (d) Capacity.--Areas where any additives, chemicals, oils or |
26 | fuels are to be stored must have sufficient containment capacity |
27 | to hold the volume of the largest container stored in the area |
28 | plus 10% to allow for precipitation, unless the container is |
29 | equipped with individual secondary containment. |
30 | § 3218.2. Transportation records regarding wastewater fluids. |
|
1 | (a) Requirements.--A well operator that transports |
2 | wastewater fluids shall do all of the following: |
3 | (1) Maintain records for five years, in accordance with |
4 | regulations under subsection (b) and on a form approved by |
5 | the department, of the amount and destination of the fluids |
6 | transported. |
7 | (2) Make the records available to the department upon |
8 | request. |
9 | (b) Recordkeeping.--Recordkeeping requirements shall be |
10 | determined by the department and shall include the following: |
11 | (1) The number of gallons of wastewater fluids produced |
12 | in the drilling, stimulation or alteration of a well. |
13 | (2) Upon completion of the well, the name of the person |
14 | or company that transported the wastewater fluids to a |
15 | disposal site or to a location other than the well site. |
16 | (3) Each location where wastewater fluids were disposed |
17 | of or transported and the volumes that were disposed of at |
18 | the location. |
19 | (4) The method of disposal. |
20 | § 3218.3. Emergency response information. |
21 | The Pennsylvania Emergency Management Agency and the |
22 | department shall adopt emergency regulations directing the |
23 | operators of all unconventional wells to do all of the |
24 | following: |
25 | (1) Adopt a unique GPS coordinate address for each |
26 | unconventional well at both the access road entrance and well |
27 | pad site. |
28 | (2) Register that address with the agency, the |
29 | department and the county emergency management organization |
30 | within the county where the unconventional well is located. |
|
1 | (3) Require the development of an emergency response |
2 | plan and file that plan with the agency, the department and |
3 | the county emergency management organization with |
4 | jurisdiction over the unconventional well. The county shall |
5 | disseminate the GPS address and emergency response plan to |
6 | the local emergency management organization in which the |
7 | unconventional well is located. |
8 | (4) Post a reflective sign at the entrance to each well |
9 | site with the specific address of that site, the coordinates |
10 | for the site, the emergency contact number for the operator |
11 | and any other information as the agency or the department |
12 | deems necessary. |
13 | § 3219. Use of safety devices. |
14 | Any person engaged in drilling an oil or gas well shall equip |
15 | it with casings of sufficient strength, and other safety devices |
16 | as are necessary, in the manner prescribed by regulation of the |
17 | department, and shall use every effort and endeavor effectively |
18 | to prevent blowouts, explosions and fires. |
19 | § 3220. Plugging requirements. |
20 | (a) General rule.--Upon abandoning a well, the owner or |
21 | operator shall plug it in the manner prescribed by regulation of |
22 | the department to stop vertical flow of fluids or gas within the |
23 | well bore, unless the department has granted inactive status for |
24 | the well or it has been approved by the department as an orphan |
25 | well. If the department determines that a prior owner or |
26 | operator received economic benefit, other than economic benefit |
27 | derived only as a landowner or from a royalty interest, after |
28 | April 18, 1979, from an orphan well or an unregistered well, the |
29 | owner or operator shall be responsible for plugging the well. In |
30 | the case of a gas well penetrating a workable coal seam which |
|
1 | was drilled prior to January 30, 1956, or which was permitted |
2 | after that date but not plugged in accordance with this chapter, |
3 | if the owner or operator or a coal operator or an agent proposes |
4 | to plug the well to allow mining through of it, the gas well |
5 | shall be cleaned to a depth of at least 200 feet below the coal |
6 | seam through which mining is proposed and, unless impracticable, |
7 | to a point 200 feet below the deepest mineable coal seam. The |
8 | gas well shall be plugged from that depth in accordance with |
9 | section 13 of the act of December 18, 1984 (P.L.1069, No.214), |
10 | known as the Coal and Gas Resource Coordination Act, and the |
11 | regulations of the department. |
12 | (b) Areas underlain by coal.--Prior to the plugging and |
13 | abandonment of a well in an area underlain by a workable coal |
14 | seam, the well operator or owner shall notify the department and |
15 | the coal operator, lessee or owner and submit a plat, on a form |
16 | to be furnished by the department, showing the location of the |
17 | well and fixing the date and time plugging will commence, which |
18 | shall be not less than three working days, nor more than 30 |
19 | days, after the notice is received, to permit representatives of |
20 | the persons notified to be present at the plugging. Notice and |
21 | the right to be present may be waived by the department and the |
22 | coal operator, lessee or owner, but waiver by coal operator, |
23 | lessee or owner shall be in writing and a copy shall be attached |
24 | to the notice of abandonment filed with the department under |
25 | this section. Whether or not representatives attend, if the well |
26 | operator has fully complied with this section, the well operator |
27 | may proceed, at the time fixed, to plug the well in the manner |
28 | prescribed by regulation of the department. When plugging has |
29 | been completed, a certificate shall be prepared and signed, on a |
30 | form to be furnished by the department, by two experienced and |
|
1 | qualified people who participated in the work setting forth the |
2 | time and manner in which the well was plugged. One copy of the |
3 | certificate shall be mailed to each coal operator, lessee or |
4 | owner to whom notice was given by certified mail and another |
5 | shall be mailed to the department. |
6 | (c) Abandoned wells.--Prior to abandonment of a well, except |
7 | an uncompleted bore hole plugged immediately upon suspension of |
8 | drilling in an area not underlain by a workable coal seam, the |
9 | well operator shall notify the department of the intention to |
10 | plug and abandon the well and submit a plat, on a form to be |
11 | furnished by the department, showing the location of the well |
12 | and fixing the date and time at which plugging will commence, |
13 | which shall be not less than three working days, nor more than |
14 | 30 days, after the notice is received, to permit a department |
15 | representative to be present at the plugging. The notice or |
16 | waiting period may be verbally waived by the department. In |
17 | noncoal areas where more than one well has been drilled as part |
18 | of the same development project and the wells are now to be |
19 | plugged, the department shall be given three working days' |
20 | notice prior to plugging the first well of the project, subject |
21 | to waiver of notice described in subsection (b). In the plugging |
22 | of subsequent wells, no additional notice shall be required if |
23 | plugging on the project is continuous. If plugging of subsequent |
24 | wells is delayed for any reason, notice shall be given to the |
25 | department of continuation of the project. Whether or not a |
26 | representative attends, if the well operator has fully complied |
27 | with this section, the well operator may proceed, at the time |
28 | fixed, to plug the well in the manner prescribed by regulation |
29 | of the department. When plugging has been completed, a |
30 | certificate shall be prepared, on a form to be furnished by the |
|
1 | department, by two experienced and qualified people who |
2 | participated in the work setting forth the time and manner in |
3 | which the well was plugged. A copy of the certificate shall be |
4 | mailed to the department. |
5 | (d) Wells abandoned upon completion of drilling.--If a well |
6 | is to be abandoned immediately after completion of drilling, the |
7 | well operator shall give at least 24 hours' notice by telephone, |
8 | confirmed by certified mail, to the department and to the coal |
9 | operator, lessee or owner, if any, fixing the date and time when |
10 | plugging will commence. Notice and the right to be present may |
11 | be waived by the department and the coal operator, lessee or |
12 | owner, if any. Whether or not representatives of the department |
13 | or coal operator, lessee or owner, if any, attend, if the well |
14 | operator has fully complied with the requirements of this |
15 | section, the well operator may proceed, at the time fixed, to |
16 | plug the well in the manner provided by regulation of the |
17 | department. The well operator shall prepare the certificate of |
18 | plugging and mail copies of the same as provided in subsection |
19 | (b). |
20 | (e) Orphan wells.--If a well is an orphan well or abandoned |
21 | without plugging, or if a well is in operation but not |
22 | registered under section 3213 (relating to well registration and |
23 | identification), the department may enter upon the well site and |
24 | plug the well and to sell equipment, casing and pipe at the site |
25 | which may have been used in production of the well in order to |
26 | recover the costs of plugging. The department shall make an |
27 | effort to determine ownership of a well which is in operation |
28 | but has not been registered and provide written notice to the |
29 | owner of pending action under this subsection. If the department |
30 | cannot determine ownership within 30 days, it may proceed under |
|
1 | this subsection. Costs of plugging shall have priority over all |
2 | liens on equipment, casing and pipe, and the sale shall be free |
3 | and clear of those liens to the extent that the cost of plugging |
4 | exceeds the sale price. If the amount obtained for casing and |
5 | pipe salvaged at the site is inadequate to pay for plugging, the |
6 | owner or operator of the abandoned or unregistered well shall be |
7 | liable for the additional costs. |
8 | (f) Definition.--For purposes of this section, the term |
9 | "owner" does not include the owner or possessor of surface real |
10 | property, on which an abandoned well is located, who did not |
11 | participate or incur costs in and had no right of control over |
12 | the drilling or extraction operation of the abandoned well. |
13 | § 3221. Alternative methods. |
14 | A well operator may request permission to use a method or |
15 | material other than those required by this chapter for casing, |
16 | plugging or equipping a well in an application to the department |
17 | which describes the proposed alternative in reasonable detail |
18 | and indicates the manner in which it will accomplish the goals |
19 | of this chapter. Notice of filing of the application shall be |
20 | given by the well operator by certified mail to any affected |
21 | coal operators, who may, within 15 days after the notice, file |
22 | objections to the proposed alternative method or material. If no |
23 | timely objections are filed or raised by the department, the |
24 | department shall determine whether to allow use of the proposed |
25 | alternative method or material. |
26 | § 3222. Well reporting requirements. |
27 | (a) General rule.--Except as provided in subsection (a.1), |
28 | each well operator shall file with the department, on a form |
29 | provided by the department, an annual report specifying the |
30 | amount of production, on the most well-specific basis available, |
|
1 | along with the status of each well, except that in subsequent |
2 | years only changes in status must be reported. The Commonwealth |
3 | may utilize reported information in enforcement proceedings, in |
4 | making designations or determinations under section 1927-A of |
5 | the act of April 9, 1929 (P.L.177, No.175), known as The |
6 | Administrative Code of 1929, or in aggregate form for |
7 | statistical purposes. |
8 | (a.1) Unconventional wells.--Each operator of a well which |
9 | produces gas from an unconventional well shall file with the |
10 | department, on a form provided by the department, a semiannual |
11 | report specifying the amount of production on the most well- |
12 | specific basis available. The initial report under this |
13 | subsection shall be filed on or before August 15, 2010, and |
14 | shall include production data from the preceding calendar year |
15 | and specify the status of each well. In subsequent reports, only |
16 | changes in status must be reported. Subsequent semiannual |
17 | reports shall be filed with the department on or before February |
18 | 15 and August 15 of each year and shall include production data |
19 | from the preceding reporting period. The Commonwealth may |
20 | utilize reported information in enforcement proceedings, in |
21 | making designations or determinations under section 1927-A of |
22 | The Administrative Code of 1929 or in aggregate form for |
23 | statistical purposes. Beginning November 1, 2010, the department |
24 | shall make the reports available on its publicly accessible |
25 | Internet website. Costs incurred by the department to comply |
26 | with the requirements of this subsection shall be paid out of |
27 | the fees collected under section 3211(d) (relating to well |
28 | permits). |
29 | (b) Collection of data.--Well operators shall maintain a |
30 | record of each well drilled or altered. A record containing the |
|
1 | information required by the department, including the |
2 | information required under subsection (b.1), shall be filed |
3 | within 30 days after stimulation of the well. A completion |
4 | report containing any additional required information shall be |
5 | filed within 30 days after the stimulation of the well and shall |
6 | be kept on file by the department. Upon request of the |
7 | department, the well operator shall, within 90 days of |
8 | completion or recompletion of drilling, submit a copy of any |
9 | electrical, radioactive or other standard industry logs which |
10 | have been run and, upon request by the department within one |
11 | year, a copy of drill stem test charts, formation water |
12 | analysis, porosity, permeability or fluid saturation |
13 | measurements, core analysis and lithologic log or sample |
14 | description or other similar data as compiled. No information |
15 | shall be required unless the well operator had it compiled in |
16 | the ordinary course of business, and interpretation of data is |
17 | not required to be filed. |
18 | (b.1) Report contents.--The completion report shall contain |
19 | the operator's stimulation record which shall include the |
20 | following: |
21 | (1) A descriptive list of the chemical additives in the |
22 | stimulation fluids, including any acid, biocide, breaker, |
23 | brine, corrosion inhibitor, crosslinker, demulsifier, |
24 | friction reducer, get, iron control, oxygen scavenger, pH |
25 | adjusting agent, proppant, scale inhibitor and surfactant. |
26 | (2) The percent by volume of each chemical additive in |
27 | the stimulation fluid. |
28 | (3) A list of the chemicals in the material safety data |
29 | sheets, by name and chemical abstract service number, |
30 | corresponding to the appropriate chemical additive. |
|
1 | (4) The percent by volume of each chemical list in the |
2 | material safety data sheets. |
3 | (5) The total volume of the base fluid. |
4 | (6) A list of water sources used under the approved |
5 | water management plan and the volume of water used. |
6 | (7) The pump rates and pressure used in the well. |
7 | (8) The total volume of recycled water used. |
8 | (b.2) Trade secret or confidential proprietary |
9 | information.--When an operator submits its stimulation record |
10 | under subsection (b.1), it may designate specific portions of |
11 | the stimulation record as containing a trade secret or |
12 | confidential proprietary information. The department shall |
13 | prevent disclosure of the designated confidential information to |
14 | the extent permitted by the act of February 14, 2008 (P.L.6, |
15 | No.3), known as the Right-to-Know Law, or other Federal or State |
16 | law. |
17 | (b.3) List of the chemical constituents.--In addition to |
18 | submitting a stimulation record to the department under |
19 | subsection (b.1) and subject to the protections afforded for |
20 | trade secrets and confidential proprietary information under the |
21 | Right-to-Know Law, the operator shall provide a list of the |
22 | chemical constituents of the chemical additives used to |
23 | hydraulically fracture a well, by name and chemical abstract |
24 | service number, unless the additive does not have a number, to |
25 | the department upon written request of the department. |
26 | (c) Drill cuttings and core samples.--Upon notification by |
27 | the department prior to commencement of drilling, the well |
28 | operator shall collect any additional data specified by the |
29 | department, including representative drill cuttings and samples |
30 | from cores taken and any other geological information that the |
|
1 | operator reasonably can compile. Interpretation of the data is |
2 | not required to be filed. |
3 | (d) Retention of data.--Data required under subsection (b) |
4 | and drill cuttings required under subsection (c) shall be |
5 | retained by the well operator and filed with the department no |
6 | more than three years after completion of the well. Upon |
7 | request, the department shall extend the deadline up to five |
8 | years from the date of completion of the well. The department |
9 | shall be entitled to utilize information collected under this |
10 | subsection in enforcement proceedings, in making designations or |
11 | determinations under section 1927-A of The Administrative Code |
12 | of 1929 and in aggregate form for statistical purposes. |
13 | § 3223. Notification and effect of well transfer. |
14 | The owner or operator of a well shall notify the department |
15 | in writing within 30 days, in a form directed by regulation, of |
16 | sale, assignment, transfer, conveyance or exchange by or to the |
17 | owner of the well. A transfer shall not relieve the well owner |
18 | or operator of an obligation accrued under this chapter, nor |
19 | shall it relieve the owner or operator of an obligation to plug |
20 | the well until the requirements of section 3225 (relating to |
21 | bonding) have been met, at which time the transferring owner or |
22 | operator shall be relieved from all obligations under this |
23 | chapter, including the obligation to plug the well. |
24 | § 3224. Coal operator responsibilities. |
25 | (a) General rule.--At any time prior to removing coal or |
26 | other underground materials from, or extending the workings in, |
27 | a coal mine within 500 feet of an oil or gas well of which the |
28 | coal operator has knowledge, or within 500 feet of an approved |
29 | well location of which the coal operator has knowledge, the coal |
30 | operator, by certified mail, shall forward to or file with the |
|
1 | well operator and the department a copy of the relevant part of |
2 | all maps and plans which it is presently required by law to |
3 | prepare and file with the department, showing the pillar which |
4 | the coal operator proposes to leave in place around each oil or |
5 | gas well in the projected workings. Thereafter, the coal |
6 | operator may proceed with mining operations in the manner |
7 | projected on the maps and plans, but the operator may not remove |
8 | coal or cut a passageway within 150 feet of the well or approved |
9 | well location without written approval under this section. If, |
10 | in the opinion of the well operator or the department, the plan |
11 | indicates that the proposed pillar is inadequate to protect |
12 | either the integrity of the well or public health and safety, |
13 | the affected well operator shall attempt to reach an agreement |
14 | with the coal operator on a suitable pillar, subject to approval |
15 | of the department. Upon failure to agree, the well operator may, |
16 | within ten days after receipt of the proposed plan under this |
17 | section, file objections under section 3251 (relating to |
18 | conferences), indicating the size of the pillar to be left as to |
19 | each well. If objections are not timely filed and the department |
20 | has none, the department shall grant approval, reciting that |
21 | maps and plans have been filed, no objections have been made |
22 | thereto and the pillar proposed to be left for each well is |
23 | approved in the manner as projected. |
24 | (b) Objections.--If an objection is filed by the well |
25 | operator or raised by the department, the department shall order |
26 | that a conference be held under section 3251 within ten days of |
27 | the filing of objections. At the conference, the coal operator |
28 | and the person who has objected shall attempt to agree on a |
29 | proposed plan, showing the pillar to be left around each well, |
30 | which will satisfy the objections and receive department |
|
1 | approval. If an agreement is reached, the department shall grant |
2 | approval to the coal operator, reciting that a plan has been |
3 | filed and the pillar to be left for each well is approved |
4 | pursuant to the agreement. If an agreement is not reached on a |
5 | plan showing the pillar to be left with respect to a well, the |
6 | department, by appropriate order, shall determine the pillar to |
7 | be left with respect to the well. In a proceeding under this |
8 | section, the department shall follow as nearly as is possible |
9 | the original plan filed by the coal operator. The department |
10 | shall not require the coal operator to leave a pillar in excess |
11 | of 100 feet in radius, except that the department may require a |
12 | pillar of up to 150 feet in radius if the existence of unusual |
13 | conditions is established. Pillars determined by the department |
14 | shall be shown on maps or plans on file with the department as |
15 | provided in subsection (a) and the department shall approve the |
16 | pillar to be left for each well. |
17 | (c) Pillars of reduced size.--Application may be made at any |
18 | time to the department by the coal operator to leave a pillar of |
19 | a size smaller than shown on the plan approved or determined by |
20 | the department under this section. If an application is filed, |
21 | the department shall: |
22 | (1) follow the appropriate procedure under subsection |
23 | (a) or (b); |
24 | (2) by appropriate order, determine a plan involving a |
25 | pillar of a smaller size as to any well covered by the |
26 | application; and |
27 | (3) grant approval for the pillar to be left with |
28 | respect to each well. |
29 | (d) Violation.--No coal operator, without written approval |
30 | of the department after notice and opportunity for a hearing |
|
1 | under this section, shall remove coal or cut a passageway so as |
2 | to leave a pillar of smaller size, with respect to an oil or gas |
3 | well, than that approved by the department under this chapter. |
4 | (e) Limitation.--With regard to a coal pillar required by |
5 | law to be left around a well drilled prior to April 18, 1985, |
6 | nothing in this chapter shall be construed to: |
7 | (1) require a well operator to pay for the coal pillar; |
8 | (2) affect a right which a coal operator may have had |
9 | prior to April 18, 1985, to obtain payment for the coal |
10 | pillar; or |
11 | (3) affect a duty or right which a storage operator or |
12 | landowner may have had prior to April 18, 1985, to pay or not |
13 | pay for the coal pillar. |
14 | (f) Mining through plugged wells.--A coal operator who |
15 | intends to mine through a plugged oil or gas well or otherwise |
16 | completely remove any pillar from around that well shall file a |
17 | plan under subsection (a) which shall be subject to all of the |
18 | provisions of this section. No coal operator may mine through a |
19 | plugged oil or gas well of which he has knowledge until written |
20 | approval has been granted by the department in accordance with |
21 | this section. The Bureau of Deep Mine Safety in the department |
22 | shall have the authority to establish conditions under which the |
23 | department may approve a coal operator's plan to mine through a |
24 | plugged oil or gas well. |
25 | § 3225. Bonding. |
26 | (a) General rule.--The following shall apply: |
27 | (1) Except as provided in subsection (d), upon filing an |
28 | application for a well permit, and before continuing to |
29 | operate an oil or gas well, the owner or operator of the well |
30 | shall file with the department a bond covering the well and |
|
1 | well site on a form to be prescribed and furnished by the |
2 | department. A bond filed with an application for a well |
3 | permit shall be payable to the Commonwealth and conditioned |
4 | upon the operator's faithful performance of all drilling, |
5 | water supply replacement, restoration and plugging |
6 | requirements of this chapter. A bond for a well in existence |
7 | on April 18, 1985, shall be payable to the Commonwealth and |
8 | conditioned upon the operator's faithful performance of all |
9 | water supply replacement, restoration and plugging |
10 | requirements of this chapter. The amount of the bond required |
11 | shall be in the following amounts and shall be adjusted by |
12 | the Environmental Quality Board every three years to reflect |
13 | the projected costs to the Commonwealth of plugging the well: |
14 | (i) For a well which is less than 6,000 feet in |
15 | depth and which is permitted prior to the effective date |
16 | of this section, $2,500. The operator shall not be |
17 | required to provide a bond under this paragraph which |
18 | exceeds $25,000. The bond amount may be adjusted by the |
19 | Environmental Quality Board every two years to reflect |
20 | the projected costs to the Commonwealth of performing |
21 | well plugging. |
22 | (ii) For a well which is less than 6,000 feet in |
23 | bore length and which is permitted after the effective |
24 | date of this section, $3,500. The operator shall not be |
25 | required to provide a bond under this paragraph which |
26 | exceeds $40,000. |
27 | (iii) For wells with a total well bore length |
28 | greater than 6,000 feet: |
29 | (A) For operating up to 25 wells, $10,000 per |
30 | well, provided the operator may not be required to |
|
1 | provide a bond under this section exceeding $120,000. |
2 | (B) For operating 26 to 50 wells, $120,000 plus |
3 | $10,000 per well for each well in excess of 25 wells, |
4 | provided the operator may not be required to provide |
5 | a bond under this section exceeding $240,000. |
6 | (C) For operating 51 to 150 wells, $240,000 plus |
7 | $10,000 per well for each well in excess of 50 wells, |
8 | provided the operator may not be required to provide |
9 | a bond under this section exceeding $360,000. |
10 | (D) For operating more than 150 wells, $360,000 |
11 | plus $10,000 per well for each well in excess of 150 |
12 | wells, provided the operator may not be required to |
13 | provide a bond under this section exceeding $500,000. |
14 | (2) In lieu of individual bonds for each well, an owner |
15 | or operator may file a blanket bond, for the appropriate |
16 | amount as indicated under paragraph (1), on a form prepared |
17 | by the department, covering all of its wells in this |
18 | Commonwealth, as enumerated on the bond form. |
19 | (3) Liability under the bond shall continue until the |
20 | well has been properly plugged in accordance with this |
21 | chapter and for a period of one year after filing of the |
22 | certificate of plugging with the department. Each bond shall |
23 | be executed by the operator and a corporate surety licensed |
24 | to do business in this Commonwealth and approved by the |
25 | secretary. In lieu of a corporate surety, the operator may |
26 | deposit with the department: |
27 | (i) cash; |
28 | (ii) certificates of deposit or automatically |
29 | renewable irrevocable letters of credit, from financial |
30 | institutions chartered or authorized to do business in |
|
1 | this Commonwealth and regulated and examined by the |
2 | Commonwealth or a Federal agency, which may be terminated |
3 | at the end of a term only upon 90 days' prior written |
4 | notice by the financial institution to the permittee and |
5 | the department; |
6 | (iii) negotiable bonds of the United States |
7 | Government or the Commonwealth, the Pennsylvania Turnpike |
8 | Commission, the State Public School Building Authority or |
9 | any municipality within the Commonwealth; or |
10 | (iv) United States Treasury Bonds issued at a |
11 | discount without a regular schedule of interest payments |
12 | to maturity, otherwise known as Zero Coupon Bonds, having |
13 | a maturity date of not more than ten years after the date |
14 | of purchase and at the maturity date having a value under |
15 | paragraph (1). The cash deposit, certificate of deposit, |
16 | amount of the irrevocable letter of credit or market |
17 | value of the securities shall be equal at least to the |
18 | sum of the bond. |
19 | (4) The secretary shall, upon receipt of a deposit of |
20 | cash, letters of credit or negotiable bonds, immediately |
21 | place the same with the State Treasurer, whose duty it shall |
22 | be to receive and hold the same in the name of the |
23 | Commonwealth, in trust, for the purpose for which the deposit |
24 | is made. |
25 | (5) The State Treasurer shall at all times be |
26 | responsible for custody and safekeeping of deposits. The |
27 | operator making the deposit shall be entitled from time to |
28 | time to demand and receive from the State Treasurer, on the |
29 | written order of the secretary, the whole or any portion of |
30 | collateral deposited, upon depositing with the State |
|
1 | Treasurer, in lieu of that collateral, other collateral of |
2 | classes specified in this section having a market value at |
3 | least equal to the sum of the bond, and also to demand, |
4 | receive and recover the interest and income from the |
5 | negotiable bonds as they become due and payable. |
6 | (6) If negotiable bonds on deposit under this subsection |
7 | mature or are called, the State Treasurer, at the request of |
8 | the owner of the bonds, shall convert them into other |
9 | negotiable bonds, of classes specified in this section, |
10 | designated by the owner. |
11 | (7) If notice of intent to terminate a letter of credit |
12 | is given, the department shall give the operator 30 days' |
13 | written notice to replace the letter of credit with other |
14 | acceptable bond guarantees as provided in this section. If |
15 | the owner or operator fails to timely replace the letter of |
16 | credit, the department shall draw upon and convert the letter |
17 | of credit into cash and hold it as a collateral bond |
18 | guarantee. |
19 | (b) Release.--No bond shall be fully released until the |
20 | requirements of subsection (a) and section 3223 (relating to |
21 | notification and effect of well transfer) have been fully met. |
22 | Upon release of bonds and collateral under this section, the |
23 | State Treasurer shall immediately return to the owner the |
24 | specified amount of cash or securities. |
25 | (c) Noncompliance.--If a well owner or operator fails or |
26 | refuses to comply with subsection (a), regulations promulgated |
27 | under this chapter or conditions of a permit relating to this |
28 | chapter, the department may declare the bond forfeited and shall |
29 | certify the same to the Attorney General, who shall proceed to |
30 | enforce and collect the full amount of the bond and, if the well |
|
1 | owner or operator has deposited cash or securities as collateral |
2 | in lieu of a corporate surety, the department shall declare the |
3 | collateral forfeited and direct the State Treasurer to pay the |
4 | full amount of the funds into the Well Plugging Restricted |
5 | Revenue Account or to sell the security to the extent forfeited |
6 | and pay the proceeds into the Well Plugging Restricted Revenue |
7 | Account. If a corporate surety or financial institution fails to |
8 | pay a forfeited bond promptly and in full, the corporate surety |
9 | or financial institution shall be disqualified from writing |
10 | further bonds under this chapter or any other environmental law |
11 | administered by the department. A person aggrieved by reason of |
12 | forfeiting the bond or converting collateral, as provided in |
13 | this section, shall have a right to appeal to the Environmental |
14 | Hearing Board in the manner provided by law. Upon forfeiture of |
15 | a blanket bond for a violation occurring at one or more well |
16 | sites, the person whose bond is forfeited shall, within ten days |
17 | of the forfeiture, submit a replacement bond to cover all other |
18 | wells of which the person is an owner or operator. Failure to |
19 | submit the replacement bond constitutes a violation of this |
20 | section as to each of the wells owned or operated by the person. |
21 | (d) Alternatives to certain bonds.--The following shall |
22 | apply: |
23 | (1) An operator of not more than 200 wells that cannot |
24 | obtain a bond for a well drilled prior to April 18, 1985, as |
25 | required under subsection (a), due to inability to |
26 | demonstrate sufficient financial resources may, in lieu of |
27 | the bond: |
28 | (i) Submit to the department a fee in the amount of |
29 | $50 per well, a blanket fee of $500 for ten to 20 wells |
30 | or a blanket fee of $1,000 for more than 20 wells, which |
|
1 | shall be a nonrefundable fee paid each year that the |
2 | operator has not filed a bond with the department. All |
3 | fees collected in lieu of a bond under this subsection |
4 | shall be used for the purposes authorized by this |
5 | chapter. The Environmental Quality Board shall have the |
6 | power, by regulation, to increase the amount of the fees |
7 | established under this subsection. |
8 | (ii) Make phased deposits of collateral to fully |
9 | collateralize the bond, subject to the following: |
10 | (A) Payment shall be based on the number of |
11 | wells owned or operated. The operator shall make an |
12 | initial deposit and make annual deposits in |
13 | accordance with the schedule in clause (B). Interest |
14 | accumulated by the collateral shall become a part of |
15 | the bond until the collateral plus accumulated |
16 | interest equals the amount of the required bond. The |
17 | collateral shall be deposited, in trust, with the |
18 | State Treasurer as provided in this subsection or |
19 | with a bank selected by the department which shall |
20 | act as trustee for the benefit of the Commonwealth to |
21 | guarantee the operator's compliance with the |
22 | drilling, water supply replacement, restoration and |
23 | plugging requirements of this chapter. The operator |
24 | shall be required to pay all costs of the trust. |
25 | (B) An operator of up to ten existing wells that |
26 | does not intend to operate additional wells shall |
27 | deposit $250 per well and shall, thereafter, annually |
28 | deposit $50 per well until the obligations of this |
29 | section are fully met. An operator of 11 to 25 wells |
30 | or an operator of up to ten wells that applies for |
|
1 | one or more permits for additional wells shall |
2 | deposit $2,000 and shall, thereafter, annually |
3 | deposit $1,150 plus $150 for each additional well to |
4 | be permitted that year until the obligations of this |
5 | section are fully met. An operator of 26 to 50 wells |
6 | shall deposit $3,000 and shall, thereafter, annually |
7 | deposit $1,300 plus $400 for each additional well to |
8 | be permitted that year until the obligations of this |
9 | section are fully met. An operator of 51 to 100 wells |
10 | shall deposit $4,000 and shall, thereafter, annually |
11 | deposit $1,500 plus $400 for each additional well to |
12 | be permitted that year until the obligations of this |
13 | section are fully met. Operators of 101 to 200 wells |
14 | shall deposit $8,000 and shall, thereafter, annually |
15 | deposit $1,600 plus $1,000 for each additional well |
16 | to be permitted that year until the obligations of |
17 | this section are fully met. Operators of more than |
18 | 200 wells shall fully bond their wells immediately. |
19 | (C) The department shall reduce the amount of |
20 | phased collateral payments or the period of time over |
21 | which phased collateral payments shall be made on |
22 | behalf of owners or operators that, prior to August |
23 | 3, 1992, have paid a fee in lieu of bond under |
24 | subparagraph (i), and that, by August 3, 1993, chose |
25 | to enter the phased collateral program under this |
26 | subparagraph rather than continue to make payments in |
27 | lieu of bond. Payments made prior to August 3, 1992, |
28 | in lieu of bond shall not be credited in any other |
29 | manner, and the department shall not be required to |
30 | refund the fees. The Environmental Quality Board, by |
|
1 | regulation, may change the annual deposits |
2 | established under clause (B) if necessary to |
3 | accommodate a change in the amount of the bond |
4 | required under this section. |
5 | (2) An operator may continue to pay a fee in lieu of |
6 | bond or make phased deposits of collateral to fully |
7 | collateralize the bond so long as the operator does not miss |
8 | a payment under this subsection and remains in compliance |
9 | with this chapter. If an operator misses a payment under this |
10 | subsection, the operator shall immediately: |
11 | (i) submit the appropriate bond amount in full; or |
12 | (ii) cease all operations and plug all wells. |
13 | (d.1) Individuals.--The following shall apply: |
14 | (1) An individual who is unable to obtain a bond to |
15 | drill new wells due to inability to demonstrate financial |
16 | resources may meet the collateral bond requirements of |
17 | subsection (a) by making phased deposits of collateral to |
18 | fully collateralize the bond. The individual shall be limited |
19 | to drilling ten new wells per calendar year and, for each |
20 | well to be drilled, deposit $500 and make an annual deposit |
21 | of 10% of the remaining bond amount for a period of ten |
22 | years. Interest accumulated shall become a part of the bond |
23 | until the collateral plus accumulated interest equal the |
24 | amount of the required bond. The collateral shall be |
25 | deposited in trust with the State Treasurer under subsection |
26 | (a) or with a bank selected by the department which shall act |
27 | as trustee for the benefit of the Commonwealth to guarantee |
28 | the individual's compliance with the drilling, water supply |
29 | replacement, restoration and plugging requirements of this |
30 | chapter. The individual shall pay all costs of the trust. |
|
1 | (2) Individuals may continue to use phased collateral to |
2 | obtain permits if they have not missed a payment for a well |
3 | drilled under this provision and remain in compliance with |
4 | this chapter. If an individual misses a payment, the |
5 | individual shall: |
6 | (i) immediately submit the appropriate bond amount |
7 | in full; or |
8 | (ii) cease all operations and plug all wells. |
9 | (3) For purposes of this subsection, an "individual" |
10 | means a natural person doing business under his own name. |
11 | (e) Reservation of remedies.--All remedies violating this |
12 | chapter, regulations adopted under this chapter and conditions |
13 | of permits are expressly preserved. Nothing in this section |
14 | shall be construed as an exclusive penalty or remedy for |
15 | violations of law. No action taken under this section shall |
16 | waive or impair any other remedy or penalty provided in law. |
17 | (f) Change of law.--Owners or operators that have failed to |
18 | meet the requirements of this section shall not be required to |
19 | make payments under this section on a retroactive basis as a |
20 | condition of obtaining a permit under this chapter, nor shall |
21 | the failure be deemed a violation of this chapter. |
22 | § 3226. Oil and Gas Technical Advisory Board. |
23 | (a) Creation of board.--The Oil and Gas Technical Advisory |
24 | Board is created, consisting of the following members, all of |
25 | whom shall be chosen by the Governor and shall be residents of |
26 | this Commonwealth: |
27 | (1) Three individuals, each of whom shall be: |
28 | (i) a petroleum engineer; |
29 | (ii) a petroleum geologist; or |
30 | (iii) an experienced driller representative of the |
|
1 | oil and gas industry with three years of experience in |
2 | this Commonwealth. |
3 | (2) One mining engineer from the coal industry with |
4 | three years of experience in this Commonwealth. |
5 | (3) One geologist or petroleum engineer with three years |
6 | of experience in this Commonwealth, who shall be chosen from |
7 | a list of three names submitted by the Citizens Advisory |
8 | Council to the Governor and who shall sit as a representative |
9 | of the public interest. |
10 | (b) Reimbursement.--Board members shall not receive a salary |
11 | but shall be reimbursed for all necessary expenses incurred in |
12 | the performance of their duties. |
13 | (c) Majority vote.--All actions of the board shall be by |
14 | majority vote. The board shall meet as called by the secretary, |
15 | but not less than semiannually, to carry out its duties under |
16 | this chapter. The board shall select a chairman and other |
17 | officers deemed appropriate. |
18 | (d) Consultation.--The department shall consult with the |
19 | board in the formulation, drafting and presentation stages of |
20 | all regulations of a technical nature promulgated under this |
21 | chapter. The board shall be given a reasonable opportunity to |
22 | review and comment on all regulations of a technical nature |
23 | prior to submission to the Environmental Quality Board for |
24 | initial consideration. The written report of the board shall be |
25 | presented to the Environmental Quality Board with any regulatory |
26 | proposal. The chairman of the board shall be invited to |
27 | participate in the presentation of all regulations of a |
28 | technical nature before the Environmental Quality Board to the |
29 | extent allowed by procedures of the Environmental Quality Board. |
30 | Nothing herein shall preclude any member of the board from |
|
1 | filing a petition for rulemaking with the Environmental Quality |
2 | Board in accordance with procedures established by the |
3 | Environmental Quality Board. |
4 | SUBCHAPTER C |
5 | UNDERGROUND GAS STORAGE |
6 | Sec. |
7 | 3231. Reporting requirements for gas storage operations. |
8 | 3232. Reporting requirements for coal mining operations. |
9 | 3233. General gas storage reservoir operations. |
10 | 3234. Gas storage reservoir operations in coal areas. |
11 | 3235. Inspection of facilities and records. |
12 | 3236. Reliance on maps and burden of proof. |
13 | 3237. Exemptions and prohibitions. |
14 | § 3231. Reporting requirements for gas storage operations. |
15 | (a) General rule.--The following shall apply: |
16 | (1) A person injecting into or storing gas in a storage |
17 | reservoir underlying or within 3,000 linear feet of a coal |
18 | mine operating in a coal seam that extends over the storage |
19 | reservoir or reservoir protective area shall, within 60 days, |
20 | file with the department a copy of a map and certain data in |
21 | the form and manner provided in this subsection or as |
22 | otherwise prescribed by regulation of the department. |
23 | (2) A person injecting gas into or storing gas in a |
24 | storage reservoir which is not under or within 3,000 linear |
25 | feet of, but less than 10,000 linear feet from, a coal mine |
26 | operating in a coal seam that extends over the storage |
27 | reservoir or reservoir protective area shall file the map and |
28 | data within 60 days or a longer period set by departmental |
29 | regulation. |
30 | (3) A person proposing to inject or store gas in a |
|
1 | storage reservoir located as defined in paragraph (1) or (2) |
2 | shall file the appropriate required map and data with the |
3 | department not less than six months prior to starting the |
4 | actual injection or storage. |
5 | (4) A map required by this subsection shall be prepared |
6 | by a competent engineer or geologist, showing: |
7 | (i) the stratum in which the existing or proposed |
8 | storage reservoir is or is proposed to be located; |
9 | (ii) the geographic location of the outside |
10 | boundaries of the storage reservoir and reservoir |
11 | protective area; |
12 | (iii) the location of all known oil or gas wells in |
13 | the reservoir or within 3,000 linear feet thereof which |
14 | have been drilled into or through the storage stratum, |
15 | indicating which have been or are to be cleaned out and |
16 | plugged or reconditioned for storage along with the |
17 | proposed location of all additional wells which are to be |
18 | drilled within the storage reservoir or within 3,000 |
19 | linear feet thereof. |
20 | (5) The following, if available, shall be furnished for |
21 | all known oil or gas wells which have been drilled into or |
22 | through the storage stratum within the storage reservoir or |
23 | within 3,000 linear feet of the storage reservoir: |
24 | (i) Name of the operator. |
25 | (ii) Date drilled. |
26 | (iii) Total depth. |
27 | (iv) Depth of production if the well was productive |
28 | of oil or gas. |
29 | (v) Initial rock pressure and volume. |
30 | (vi) Depths at which all coal seams were |
|
1 | encountered. |
2 | (vii) A copy of the driller's log or other similar |
3 | information. |
4 | (5.1) At the time of the filing of the maps and data, a |
5 | statement shall be filed: |
6 | (i) detailing efforts made to determine that the |
7 | wells shown are accurately located on the map; |
8 | (ii) affirming that the wells shown represent, to |
9 | the best of the operator's knowledge, all oil or gas |
10 | wells which have ever been drilled into or below the |
11 | storage stratum within the proposed storage reservoir or |
12 | within the reservoir protective area; |
13 | (iii) stating whether the initial injection is for |
14 | testing purposes; |
15 | (iv) stating the maximum pressure at which injection |
16 | and storage of gas is contemplated; and |
17 | (v) providing a detailed explanation of the methods |
18 | to be used or which previously have been used in |
19 | drilling, cleaning out, reconditioning and plugging wells |
20 | in the storage reservoir or within the reservoir |
21 | protective area. |
22 | (6) The map and data required to be filed under |
23 | paragraphs (5) and (5.1) shall be amended or supplemented |
24 | semiannually if material changes occur. The department may |
25 | require a storage operator to amend or supplement the map or |
26 | data at more frequent intervals if material changes have |
27 | occurred justifying the earlier filing. |
28 | (b) Other reporting requirements.--A person who is injecting |
29 | gas into or storing gas in a storage reservoir not at the time |
30 | subject to subsection (a), by a process other than that of |
|
1 | secondary recovery or gas recycling, shall, within 60 days, or a |
2 | longer period set by departmental regulations, file maps and |
3 | data required by departmental regulation and as follows: |
4 | (1) A person who, after April 18, 1985, proposes to |
5 | inject or store gas in a storage reservoir in an area not |
6 | covered by subsection (a) by a process other than that of |
7 | secondary recovery or gas recycling shall file the required |
8 | map and data with the department not less than six months |
9 | prior to the starting of actual injection or storage. |
10 | (2) The map shall be prepared by a competent engineer or |
11 | competent geologist and show: |
12 | (i) the stratum in which the existing or proposed |
13 | storage reservoir is or is to be located; |
14 | (ii) the geographic location of the outside |
15 | boundaries of the storage reservoir; and |
16 | (iii) the location of all known oil or gas wells |
17 | within the reservoir, or within 3,000 linear feet |
18 | thereof, which have been drilled into or through the |
19 | storage stratum, indicating which have been or are to be |
20 | cleaned out and plugged or reconditioned for storage and |
21 | the proposed location of all additional wells which are |
22 | to be drilled within the storage reservoir or within |
23 | 3,000 linear feet thereof. |
24 | (3) The following, if available, shall be furnished for |
25 | all known oil or gas wells which have been drilled into or |
26 | through the storage stratum within the storage reservoir or |
27 | within 3,000 linear feet of the storage reservoir: |
28 | (i) Name of the operator. |
29 | (ii) Date drilled. |
30 | (iii) Total depth. |
|
1 | (iv) Depth of production if the well was productive |
2 | of oil or gas. |
3 | (v) Initial rock pressure and volume. |
4 | (vi) A copy of the driller's log or other similar |
5 | information. |
6 | (3.1) At the time of the filing of the maps and data, a |
7 | statement shall be filed: |
8 | (i) detailing efforts made to determine that the |
9 | wells shown are accurately located on the map; |
10 | (ii) affirming that the wells shown represent, to |
11 | the best of the operator's knowledge, all oil or gas |
12 | wells which have ever been drilled into or below the |
13 | storage stratum within the proposed storage reservoir; |
14 | (iii) stating whether the initial injection is for |
15 | testing purposes; |
16 | (iv) stating the maximum pressure at which injection |
17 | and storage of gas is contemplated; and |
18 | (v) providing a detailed explanation of the methods |
19 | to be used or which previously have been used in |
20 | drilling, cleaning out, reconditioning and plugging wells |
21 | in the storage reservoir. |
22 | (4) The map and data required to be filed under |
23 | paragraphs (3) and (3.1) shall be amended or supplemented |
24 | semiannually if material changes occur. The department may |
25 | require a storage operator to amend or supplement the map or |
26 | data at more frequent intervals if material changes have |
27 | occurred justifying the earlier filing. |
28 | (c) Political subdivisions.--Storage operators shall give |
29 | notice to the department of the name of each political |
30 | subdivision and county in which the operator maintains and |
|
1 | operates a gas storage reservoir. |
2 | (d) Notice to affected persons.--At the time of the filing |
3 | of maps and data and the filing of amended or supplemental maps |
4 | or data required by this section, the person filing the |
5 | information shall give written notice of the filing to all |
6 | persons who may be affected under the provisions of this chapter |
7 | by the storage reservoir described in the maps or data. Notices |
8 | shall contain a description of the boundaries of the storage |
9 | reservoir. When a person operating a coal mine or owning an |
10 | interest in coal properties which are or may be affected by the |
11 | storage reservoir requests, in writing, a copy of any map or |
12 | data filed with the department, the copy shall be furnished by |
13 | the storage operator. |
14 | (e) Outside boundaries.--For purposes of this chapter, the |
15 | outside boundaries of a storage reservoir shall be defined by |
16 | the location of those wells around the periphery of the storage |
17 | reservoir which had no gas production when drilled in the |
18 | storage stratum. The boundaries shall be originally fixed or |
19 | subsequently changed if, based on the number and nature of the |
20 | wells and the geological and production knowledge of the storage |
21 | stratum, its character, permeability, distribution and operating |
22 | experience, it is determined in a conference under section 3251 |
23 | (relating to conferences) that modifications should be made. |
24 | (f) Inapplicability of section.--The requirements of this |
25 | section shall not apply to the operator of an underground gas |
26 | storage reservoir so long as the reservoir is located more than |
27 | 10,000 linear feet from an operating coal mine, except that the |
28 | storage operator shall give notice to the department of the name |
29 | of each political subdivision and county in which the operator |
30 | maintains and operates a gas storage reservoir. In political |
|
1 | subdivisions and counties where both gas storage reservoirs and |
2 | coal mines are being operated, the department may request the |
3 | storage operator to furnish maps showing geographical locations |
4 | and outside boundaries of the storage reservoirs. The department |
5 | shall keep a record of the information and promptly notify the |
6 | coal operator and the storage operator when notified by them |
7 | that the coal mine and storage reservoir are within 10,000 |
8 | linear feet of each other. |
9 | § 3232. Reporting requirements for coal mining operations. |
10 | (a) General rule.--A person owning or operating a coal mine |
11 | shall file with the department a map prepared and sealed by a |
12 | competent individual licensed as a professional engineer or |
13 | professional land surveyor under the provisions of the act of |
14 | May 23, 1945 (P.L.913, No.367), known as the Engineer, Land |
15 | Surveyor and Geologist Registration Law, showing the outside |
16 | coal boundaries of the operating coal mine, the existing |
17 | workings and exhausted areas and the relationship of the |
18 | boundaries to identifiable surface properties and landmarks. A |
19 | person owning or operating an operating coal mine which has been |
20 | penetrated by a well shall furnish a mine map to the department |
21 | each year indicating the excavations for the preceding year and |
22 | the projections for the ensuing year. The map required by this |
23 | subsection shall be furnished to a person storing or |
24 | contemplating the storage of gas in the vicinity of operating |
25 | coal mines shall, upon written request, by the coal operator, |
26 | and the person and the department shall thereafter be informed |
27 | of any boundary changes at the time the changes occur. The |
28 | department shall keep a record of the information and promptly |
29 | notify the coal operator and storage operator when notified by |
30 | them that the coal mine and the storage reservoir are within |
|
1 | 10,000 linear feet of each other. |
2 | (b) Mines near certain reservoirs.--A person owning or |
3 | operating any coal mine which is or which comes within 10,000 |
4 | linear feet of a storage reservoir and where the coal seam being |
5 | operated extends over the storage reservoir or reservoir |
6 | protective area shall, within 45 days after receiving notice |
7 | from the storage operator of that fact, file with the department |
8 | and furnish to the person operating the storage reservoir a map |
9 | in the form required by subsection (a) showing, in addition to |
10 | the requirements of subsection (a), existing and projected |
11 | excavations and workings of the operating coal mine for the |
12 | ensuing 18-month period and the location of oil or gas wells of |
13 | which the coal operator has knowledge. The person owning or |
14 | operating the coal mine shall, each six months thereafter, file |
15 | with the department and furnish to the person operating the |
16 | storage reservoir a revised map showing any additional |
17 | excavations and workings, together with the projected |
18 | excavations and workings for the then ensuing 18-month period, |
19 | which may be within 10,000 linear feet of the storage reservoir. |
20 | The department may require a coal operator to file revised maps |
21 | at more frequent intervals if material changes have occurred |
22 | justifying earlier filing. The person owning or operating the |
23 | coal mine shall also file with the department and furnish the |
24 | person operating the reservoir prompt notice of any wells which |
25 | have been cut into, together with all available pertinent |
26 | information. |
27 | (c) Mines near gas storage reservoirs.--A person owning or |
28 | operating a coal mine who has knowledge that it overlies or is |
29 | within 2,000 linear feet of a gas storage reservoir shall, |
30 | within 30 days, notify the department and the storage operator |
|
1 | of that fact. |
2 | (d) Mines projected to be near storage reservoirs.--When a |
3 | person owning or operating a coal mine expects that, within the |
4 | ensuing nine-month period, the coal mine will be extended to a |
5 | point which will be within 2,000 linear feet of any storage |
6 | reservoir, the person shall notify the department and storage |
7 | operator in writing of that fact. |
8 | (e) New mines.--A person intending to establish or |
9 | reestablish an operating coal mine which will be over a storage |
10 | reservoir or within 2,000 linear feet of a storage reservoir or |
11 | may within nine months thereafter be expected to be within 2,000 |
12 | linear feet of a storage reservoir shall immediately notify the |
13 | department and storage operator in writing. Notice shall include |
14 | the date on which the person intends to establish or reestablish |
15 | the operating coal mine. |
16 | (f) Misdemeanor.--A person who serves notice as required by |
17 | this subsection of an intention to establish or reestablish an |
18 | operating coal mine, without intending in good faith to |
19 | establish or reestablish the mine, is liable for continuing |
20 | damages to a storage operator injured by the improper notice and |
21 | commits a misdemeanor subject to the penalties of section 3255 |
22 | (relating to penalties). |
23 | § 3233. General gas storage reservoir operations. |
24 | (a) General rule.--A person who operates or proposes to |
25 | operate a storage reservoir, except one filled by the secondary |
26 | recovery or gas recycling process, shall: |
27 | (1) Use every known method which is reasonable under the |
28 | circumstances for discovering and locating all wells which |
29 | have or may have been drilled into or through the storage |
30 | reservoir. |
|
1 | (2) Plug or recondition, as provided in departmental |
2 | regulations, all known wells drilled into or through the |
3 | storage reservoir, except to the extent otherwise provided in |
4 | subsections (b) and (c). |
5 | (b) Wells to be plugged.--To comply with subsection (a), |
6 | wells which are to be plugged shall be plugged in the manner |
7 | specified in section 3220 (relating to plugging requirements). |
8 | (b.1) Wells plugged prior to enactment of section.--If a |
9 | well located in the storage reservoir area has been plugged |
10 | prior to April 18, 1985, and on the basis of data, information |
11 | and other evidence submitted to the department, it is determined |
12 | that the plugging was done in the manner required by section |
13 | 3220 or approved as an alternative method under section 3221 |
14 | (relating to alternative methods) and the plugging is still |
15 | sufficiently effective to meet the requirements of this chapter, |
16 | the obligations under subsection (a) with regard to plugging the |
17 | well shall be considered to have been fully satisfied. |
18 | (c) Wells to be reconditioned.--The following shall apply: |
19 | (1) To comply with subsection (a), wells which are to be |
20 | reconditioned shall, unless the department by regulation |
21 | specifies a different procedure, be cleaned out from the |
22 | surface through the storage horizon, and the producing casing |
23 | and casing strings determined not to be in good physical |
24 | condition shall be replaced with new casing, using the same |
25 | procedure as is applicable to drilling a new well under this |
26 | chapter. In the case of wells to be used for gas storage, the |
27 | annular space between each string of casing and the annular |
28 | space behind the largest diameter casing to the extent |
29 | possible shall be filled to the surface with cement or |
30 | bentonitic mud or a nonporous material approved by the |
|
1 | department under section 3221. At least 15 days prior to |
2 | reconditioning, the storage operator shall give notice to the |
3 | department, setting forth in the notice the manner in which |
4 | it is planned to recondition the well and any pertinent data |
5 | known to the storage operator which will indicate the |
6 | condition of the well existing at that time. In addition, the |
7 | storage operator shall give the department at least 72 hours' |
8 | notice of the time when reconditioning is to begin. If no |
9 | objections are raised by the department within ten days, the |
10 | storage operator may proceed with reconditioning in |
11 | accordance with the plan as submitted. If objections are made |
12 | by the department, the department may fix a time and place |
13 | for a conference under section 3251 (relating to conferences) |
14 | at which the storage operator and department shall endeavor |
15 | to agree on a plan to satisfy the objections and meet the |
16 | requirements of this section. If no agreement is reached, the |
17 | department may, by an appropriate order, determine whether |
18 | the plan as submitted meets the requirements of this section |
19 | or what changes, if any, are required. If, in reconditioning |
20 | a well in accordance with the plan, physical conditions are |
21 | encountered which justify or necessitate a change in the |
22 | plan, the storage operator may request that the plan be |
23 | changed. If the request is denied, the department shall fix a |
24 | conference under section 3251 and proceed in the same manner |
25 | as with original objections. An application may be made in |
26 | the manner prescribed by section 3221 for approval of an |
27 | alternative method of reconditioning a well. If a well |
28 | located within the storage reservoir was reconditioned, or |
29 | drilled and equipped, prior to April 18, 1985, the |
30 | obligations imposed by subsection (a), as to reconditioning |
|
1 | the well, shall be considered fully satisfied if, on the |
2 | basis of the data, information and other evidence submitted |
3 | to the department, it is determined that: |
4 | (i) The conditioning or previous drilling and |
5 | equipping was done in the manner required in this |
6 | subsection, in regulations promulgated under this chapter |
7 | or in a manner approved as an alternative method in |
8 | accordance with section 3221. |
9 | (ii) The reconditioning or previous drilling and |
10 | equipping is still sufficiently effective to meet the |
11 | requirements of this chapter. |
12 | (2) If a well requires emergency repairs, this chapter |
13 | shall not be construed to require the storage operator to |
14 | give any notice required by this subsection before making the |
15 | repairs. |
16 | (d) Exception.--The requirements of subsection (a) shall not |
17 | apply to injection of gas into a stratum when the sole purpose |
18 | of injection, referred to in this subsection as testing, is to |
19 | determine whether the stratum is suitable for storage purposes. |
20 | Testing shall be conducted only in compliance with the following |
21 | requirements: |
22 | (1) The person testing or proposing to test shall comply |
23 | with section 3231 (relating to reporting requirements for gas |
24 | storage operations) and verify the statement required to be |
25 | filed by that section. |
26 | (2) The storage operator shall give at least six months' |
27 | written notice to the department of the fact that injection |
28 | of gas for testing purposes is proposed. |
29 | (3) If the department has objections, the department |
30 | shall fix a time and place for a conference under section |
|
1 | 3251, not more than ten days from the date of notice to the |
2 | storage operator, at which time the storage operator and |
3 | department shall attempt to resolve the issues presented. If |
4 | an agreement cannot be reached, the department may issue an |
5 | appropriate order. |
6 | (e) Failure to execute lawful order.--In a proceeding under |
7 | this chapter, if the department determines that an operator of a |
8 | storage reservoir has failed to carry out a lawful order issued |
9 | under this chapter, the department may require the operator to |
10 | suspend operation of the reservoir and withdraw the gas until |
11 | the violation is remedied, in which case the storage operator, |
12 | limited by due diligence insofar as existing facilities utilized |
13 | to remove gas from the reservoir will permit, shall: |
14 | (1) if possible, remove the amount required by the |
15 | department to be removed; or |
16 | (2) in any event, remove the maximum amount which can be |
17 | withdrawn in accordance with recognized engineering and |
18 | operating procedures. |
19 | (f) Duty of storage reservoir operator.--The following shall |
20 | apply: |
21 | (1) A person owning or operating a storage reservoir |
22 | subject to this chapter shall have a duty to: |
23 | (i) Maintain all wells drilled into or through the |
24 | reservoir in a condition, and operate them in a manner, |
25 | sufficient to prevent the escape of gas. |
26 | (ii) Operate and maintain the reservoir and its |
27 | facilities as prescribed by departmental regulations and |
28 | at a pressure which will prevent gas from escaping, but |
29 | the pressure shall not exceed the highest rock pressure |
30 | found to have existed during the production history of |
|
1 | the reservoir or another high pressure limit approved by |
2 | the department after holding a conference under section |
3 | 3251 based on geological and production knowledge of the |
4 | reservoir, its character, permeability distribution and |
5 | operating experience. |
6 | (2) The duty under paragraph (1) shall not be construed |
7 | to include inability to prevent the escape of gas when gas |
8 | escapes as a result of an act of God or a person not under |
9 | the control of the storage operator. In that instance, the |
10 | storage operator shall have a duty to take action reasonably |
11 | necessary to prevent further escape of gas. This paragraph |
12 | does not apply to a well which the storage operator failed to |
13 | locate and make known to the department. |
14 | § 3234. Gas storage reservoir operations in coal areas. |
15 | (a) General rule.--A person operating a storage reservoir |
16 | which underlies or is within 2,000 linear feet of a coal mine |
17 | operating in a coal seam that extends over the storage reservoir |
18 | or the reservoir protective area shall: |
19 | (1) Use every known reasonable method for discovering |
20 | and locating all wells which have or may have been drilled |
21 | into or through the storage stratum in the acreage lying |
22 | within the outside coal boundaries of the operating coal mine |
23 | overlying the storage reservoir or the reservoir protective |
24 | area. |
25 | (2) Plug or recondition, as provided by section 3220 |
26 | (relating to plugging requirements) and subsection (e), all |
27 | known wells, except to the extent provided in subsections |
28 | (e), (f), (g) and (h), drilled into or through the storage |
29 | stratum and located within the portion of the acreage of the |
30 | operating coal mine overlying the storage reservoir or the |
|
1 | reservoir protective area. If an objection is raised as to |
2 | use of a well as a storage well and after a conference under |
3 | section 3251 (relating to conferences) it is determined by |
4 | the department, taking into account all circumstances and |
5 | conditions, that the well should not be used as a storage |
6 | well, the well shall be plugged unless, in the opinion of the |
7 | storage operator, the well may be used as a storage well in |
8 | the future, in which case, upon approval of the department |
9 | after taking into account all circumstances and conditions, |
10 | the storage operator may recondition and inactivate the well |
11 | rather than plug it. |
12 | (3) The requirements of paragraph (2) shall be deemed to |
13 | have been fully complied with if, as the operating coal mine |
14 | is extended, all wells which from time to time come within |
15 | the acreage described in paragraph (2) are reconditioned or |
16 | plugged as provided in section 3220 and subsection (e) or (f) |
17 | so that, by the time the coal mine has reached a point within |
18 | 2,000 linear feet of the wells, they will have been |
19 | reconditioned or plugged in accordance with section 3220 and |
20 | subsection (e) or (f). |
21 | (b) Verified statement.--A person operating a storage |
22 | reservoir referred to in subsection (a) shall file with the |
23 | department and furnish a copy to the person operating the |
24 | affected operating coal mine a verified statement setting forth: |
25 | (1) That the map and any supplemental maps required by |
26 | section 3231(a) (relating to reporting requirements for gas |
27 | storage operations) have been prepared and filed in |
28 | accordance with section 3231. |
29 | (2) A detailed explanation of what the storage operator |
30 | has done to comply with the requirements of subsection (a)(1) |
|
1 | and (2) and the results of those actions. |
2 | (3) Such additional efforts, if any, as the storage |
3 | operator is making and intends to make to locate all wells. |
4 | (4) Any additional wells that are to be plugged or |
5 | reconditioned to meet the requirements of subsection (a)(2). |
6 | (b.1) Order of department.--If the statement required under |
7 | subsection (b) is not filed by the storage reservoir operator |
8 | within the time specified by this chapter or the regulations of |
9 | the department, the department may order the operator to file |
10 | the statement. |
11 | (c) Procedure.--Within 120 days after receipt of a statement |
12 | required by this section, the department may direct that a |
13 | conference be held in accordance with section 3251 to determine |
14 | whether the requirements of section 3231 and subsection (a) have |
15 | been fully met. At the conference, if any person believes the |
16 | requirements have not been fully met, the parties shall attempt |
17 | to agree on additional actions to be taken and the time for |
18 | completion, subject to approval of the department. If an |
19 | agreement cannot be reached, the department shall make a |
20 | determination and, if the department determines any requirements |
21 | have not been met, the department shall issue an order |
22 | specifying in detail the extent to which the requirements have |
23 | not been met and the actions which the storage operator must |
24 | complete to meet the requirements. The order shall grant as much |
25 | time as is reasonably necessary to fully comply. If the storage |
26 | operator encounters conditions not known to exist at the time of |
27 | issuance of the order and which materially affect the validity |
28 | of the order or the ability of the storage operator to comply |
29 | with it, the storage operator may apply for a rehearing or |
30 | modification of the order. |
|
1 | (d) Notification.--If, in complying with subsection (a), a |
2 | storage operator, after filing the statement provided for in |
3 | subsection (b), plugs or reconditions a well, the storage |
4 | operator shall notify the department and the coal operator |
5 | affected, in writing, setting forth facts indicating the manner |
6 | in which the plugging or reconditioning was done. Upon receipt |
7 | of the notification, the coal operator or department may request |
8 | a conference under section 3251. |
9 | (e) Plugging wells.--In order to meet the requirements of |
10 | subsection (a), wells which are to be plugged shall be plugged |
11 | in the manner specified in regulations promulgated under section |
12 | 3211 (relating to well permits). When a well located within the |
13 | storage reservoir or the reservoir protective area has been |
14 | plugged prior to April 18, 1985, and, on the basis of the data |
15 | information and other evidence submitted to the department, it |
16 | is determined that the plugging was done in the manner required |
17 | by section 3220, or in a manner approved as an alternative |
18 | method in accordance with section 3221 (relating to alternative |
19 | methods), and the plugging is still sufficiently effective to |
20 | meet the requirements of this chapter, the requirements of |
21 | subsection (a) as to plugging the well shall be considered to |
22 | have been fully satisfied. |
23 | (f) Reconditioned wells.--The following shall apply: |
24 | (1) In order to comply with subsection (a), unless the |
25 | department by regulation specifies a different procedure, |
26 | wells which are to be reconditioned shall be cleaned out from |
27 | the surface through the storage horizon, and the following |
28 | casing strings shall be pulled and replaced with new casing, |
29 | using the procedure applicable to drilling a new well under |
30 | this chapter: |
|
1 | (i) the producing casing; |
2 | (ii) the largest diameter casing passing through the |
3 | lowest workable coal seam unless it extends at least 25 |
4 | feet below the bottom of the coal seam and is determined |
5 | to be in good physical condition, but the storage |
6 | operator may, instead of replacing the largest diameter |
7 | casing, replace the next largest casing string if the |
8 | casing string extends at least 25 feet below the lowest |
9 | workable coal seam; and |
10 | (iii) casing strings determined not to be in good |
11 | physical condition |
12 | (2) In the case of a well to be used for gas storage, |
13 | the annular space between each string of casing and the |
14 | annular space behind the largest diameter casing, to the |
15 | extent possible, shall be filled to the surface with cement |
16 | or bentonitic mud or an equally nonporous material approved |
17 | by the department under section 3221. |
18 | (3) At least 15 days before a well is to be |
19 | reconditioned, the storage operator shall give notice to the |
20 | department and the coal operator, lessee or owner, setting |
21 | forth the manner in which reconditioning is planned and |
22 | pertinent data known to the storage operator which will |
23 | indicate the current condition of the well, along with at |
24 | least 72 hours' notice of the date and time when |
25 | reconditioning will begin. The coal operator, lessee or owner |
26 | shall have the right to file, within ten days after receipt |
27 | of the notice, objections to the plan of reconditioning as |
28 | submitted by the storage operator. If no objections are filed |
29 | and none are raised by the department within ten days, the |
30 | storage operator may proceed with reconditioning in |
|
1 | accordance with the plan as submitted. If an objection is |
2 | filed or made by the department, the department shall fix a |
3 | time and place for a conference under section 3251, at which |
4 | conference the storage operator and the person having |
5 | objections shall attempt to agree on a plan of reconditioning |
6 | that meets the requirements of this section. If no agreement |
7 | is reached, the department shall, by an appropriate order, |
8 | determine whether the plan as submitted meets the |
9 | requirements of this section or what changes should be made |
10 | to meet the requirements. If, in reconditioning the well in |
11 | accordance with the plan, physical conditions are encountered |
12 | which justify or necessitate a change in the plan, the |
13 | storage operator or coal operator may request that the plan |
14 | be changed. If the parties cannot agree on a change, the |
15 | department shall arrange for a conference to determine the |
16 | matter in the same manner as set forth in connection with |
17 | original objections to the plan. |
18 | (4) Application may be made to the department in the |
19 | manner prescribed in section 3221 for approval of an |
20 | alternative method of reconditioning a well. When a well |
21 | located within the storage reservoir or the reservoir |
22 | protective area has been reconditioned or drilled and |
23 | equipped prior to April 18, 1985, and, on the basis of the |
24 | data, information and other evidence submitted to the |
25 | department, the obligations imposed by subsection (a) as to |
26 | reconditioning the well shall be considered to be fully |
27 | satisfied if it is determined that reconditioning or previous |
28 | drilling and equipping: |
29 | (i) was done in the manner required in this |
30 | subsection, or in regulations promulgated hereunder, or |
|
1 | in a manner approved as an alternative method in |
2 | accordance with section 3221; or |
3 | (ii) is still sufficiently effective to meet the |
4 | requirements of this chapter. |
5 | (5) If a well requires emergency repairs, this |
6 | subsection shall not be construed to require the storage |
7 | operator to give the notices specified herein before making |
8 | the repairs. |
9 | (g) Producing wells.--If a well located within the reservoir |
10 | protective area is a producing well in a stratum below the |
11 | storage stratum, the obligations imposed by subsection (a) shall |
12 | not begin until the well ceases to be a producing well. |
13 | (h) Certain other wells.--If a well within a storage |
14 | reservoir or reservoir protective area penetrates the storage |
15 | stratum but does not penetrate the coal seam being mined by an |
16 | operating coal mine, the department may, upon application of the |
17 | operator of the storage reservoir, exempt the well from the |
18 | requirements of this section. Either party affected may request |
19 | a conference under section 3251 with respect to exemption of a |
20 | well covered by this subsection. |
21 | (i) Plugging limitation.--In fulfilling the requirements of |
22 | subsection (a)(2) with respect to a well within the reservoir |
23 | protective area, the storage operator shall not be required to |
24 | plug or recondition the well until the storage operator has |
25 | received from the coal operator written notice that the mine |
26 | workings will, within the period stated in the notice, be within |
27 | 2,000 linear feet of the well. Upon the receipt of the notice, |
28 | the storage operator shall use due diligence to complete the |
29 | plugging or reconditioning of the well in accordance with the |
30 | requirements of this section and section 3220. If the mine |
|
1 | workings do not, within a period of three years after the well |
2 | has been plugged, come within 2,000 linear feet of the well, the |
3 | coal operator shall reimburse the storage operator for the cost |
4 | of plugging, provided that the well is still within the |
5 | reservoir protective area as of that time. |
6 | (j) Retreat mining.--If retreat mining approaches a point |
7 | where, within 90 days, it is expected that the retreat work will |
8 | be at the location of the pillar surrounding an active storage |
9 | well, the coal operator shall give written notice to the storage |
10 | operator, and by agreement the parties shall determine whether |
11 | it is necessary or advisable to effectively and temporarily |
12 | inactivate the well. The well shall not be reactivated until a |
13 | reasonable period, determined by the parties, has elapsed. If |
14 | the parties cannot agree as required by this subsection, the |
15 | matter shall be submitted to the department for resolution. The |
16 | number of wells required to be temporarily inactivated during |
17 | the retreat period shall not be of a number that materially |
18 | affects efficient operation of the storage pool, except that |
19 | this provision shall not preclude temporary inactivation of a |
20 | particular well if the practical effect of inactivating it is to |
21 | render the pool temporarily inoperative. |
22 | (k) Exceptions.--The requirements of subsections (a), (l) |
23 | and (m) shall not apply to injection of gas into a stratum when |
24 | the whole purpose of injection, referred to in this subsection |
25 | as testing, is to determine whether the stratum is suitable for |
26 | storage purposes. Testing shall be conducted only in compliance |
27 | with the following requirements: |
28 | (1) The person testing or proposing to test shall comply |
29 | with all provisions and requirements of section 3231 and |
30 | verify the statement required to be filed by that section. |
|
1 | (2) If any part of the proposed storage reservoir is |
2 | under or within 2,000 linear feet of an operating coal mine |
3 | which is operating in a coal seam that extends over the |
4 | proposed storage reservoir or the reservoir protective area, |
5 | the storage operator shall give at least six months' written |
6 | notice to the department and coal operator of the fact that |
7 | injection of gas for testing purposes is proposed. |
8 | (3) The coal operator affected may at any time file |
9 | objections with the department, whereupon the department |
10 | shall fix a time and place for a conference under section |
11 | 3251, not more than ten days from the date of the notice to |
12 | the storage operator. At the conference, the storage operator |
13 | and the objecting party shall attempt to agree, subject to |
14 | approval of the department, on the questions involved. If an |
15 | agreement cannot be reached, the department may issue an |
16 | appropriate order. |
17 | (4) If at any time a proposed storage reservoir being |
18 | tested comes under or within 2,000 linear feet of an |
19 | operating coal mine because of extension of the storage |
20 | reservoir being tested or because of extension or |
21 | establishment or reestablishment of the operating coal mine, |
22 | the requirements of this subsection shall immediately become |
23 | applicable to the testing. |
24 | (l) Storage reservoirs near operating coal mines.--A person |
25 | who proposes to establish a storage reservoir under or within |
26 | 2,000 linear feet of a coal mine operating in a coal seam that |
27 | extends over the storage reservoir or the reservoir protective |
28 | area shall, prior to establishing the reservoir, and in addition |
29 | to complying with section 3231 and subsection (a), file the |
30 | verified statement required by subsection (b) and fully comply |
|
1 | with any order of the department in the manner provided under |
2 | subsection (b) or (c) before commencing operation of the storage |
3 | reservoir. After the person proposing to operate the storage |
4 | reservoir complies with the requirements of this subsection and |
5 | commences operations, the person shall continue to be subject to |
6 | all provisions of this chapter. |
7 | (m) Gas storage reservoirs.--If a gas storage reservoir is |
8 | in operation on April 18, 1985, and at any time thereafter it is |
9 | under or within 2,000 linear feet of an operating coal mine, or |
10 | if a gas storage reservoir is put in operation after April 18, |
11 | 1985, and at any time after storage operations begin it is under |
12 | or within 2,000 linear feet of an operating coal mine, the |
13 | storage operator shall comply with all of the provisions of this |
14 | section, except that: |
15 | (1) the time for filing the verified statement under |
16 | subsection (b) shall be 60 days after the date stated in the |
17 | notice filed by the coal operator under section 3232(d) and |
18 | (e) (relating to reporting requirements for coal mining |
19 | operations); |
20 | (2) the coal operator shall give notice of the delay to |
21 | the department; |
22 | (3) the department shall, upon the request of the |
23 | storage operator, extend the time for filing the statement by |
24 | the additional time which will be required to extend or |
25 | establish or reestablish the operating coal mine to a point |
26 | within 2,000 linear feet of the reservoir; |
27 | (4) the verified statement shall also indicate that the |
28 | map referred to in section 3231(a) has been currently amended |
29 | as of the time of the filing of the statement; and |
30 | (5) the person operating the storage reservoir shall |
|
1 | continue to be subject to all of the provisions of this |
2 | chapter. |
3 | (n) Failure to comply with order.--If, in any proceeding |
4 | under this chapter, the department determines that an operator |
5 | of a storage reservoir has failed to comply with a lawful order |
6 | issued under this chapter, the department may require the |
7 | storage operator to suspend operation of the reservoir and |
8 | withdraw the gas from it until the violation is remedied, in |
9 | which case the storage operator, limited by due diligence |
10 | insofar as existing facilities utilized to remove gas from the |
11 | reservoir will permit, shall: |
12 | (1) if possible, remove the amount required by the |
13 | department to be removed; or |
14 | (2) in any event, remove the maximum amount which can be |
15 | withdrawn in accordance with recognized engineering and |
16 | operating procedures. |
17 | (o) Prevention of escape of gas.--In addition to initial |
18 | compliance with other provisions of this chapter and lawful |
19 | orders issued under this chapter, it shall be the duty, at all |
20 | times, of a person owning or operating a storage reservoir |
21 | subject to this chapter to keep all wells drilled into or |
22 | through the storage stratum in a condition, and operate the |
23 | wells in a manner, which is designed to prevent the escape of |
24 | gas out of the storage reservoir and its facilities, and to |
25 | operate and maintain the storage reservoir and its facilities in |
26 | the manner prescribed by regulation of the department and at a |
27 | pressure that will prevent gas from escaping from the reservoir |
28 | or its facilities. This duty shall not be construed to include |
29 | inability to prevent the escape of gas when escape results from |
30 | an act of God or a person not under the control of the storage |
|
1 | operator, except that this exception does not apply to a well |
2 | which the storage operator has failed to locate and make known |
3 | to the department. If an escape of gas results from an act of |
4 | God or a person not under the control of the storage operator, |
5 | the storage operator shall be under the duty to take any action |
6 | reasonably necessary to prevent further escape of gas out of the |
7 | storage reservoir and its facilities. |
8 | § 3235. Inspection of facilities and records. |
9 | (a) General rule.--The person operating a storage reservoir |
10 | affected by this chapter shall, at all reasonable times, be |
11 | permitted to inspect applicable records and facilities of a coal |
12 | mine overlying the storage reservoir or reservoir protective |
13 | area. The person operating a coal mine affected by this chapter |
14 | shall, at all reasonable times, be permitted to inspect |
15 | applicable records and facilities of a storage reservoir |
16 | underlying the coal mine. |
17 | (b) Order.--If a storage operator or coal operator subject |
18 | to subsection (a) refuses to permit inspection of records or |
19 | facilities, the department may, on its own motion or on |
20 | application of the party seeking inspection, after reasonable |
21 | written notice and a hearing if requested by an affected party, |
22 | order inspection. |
23 | § 3236. Reliance on maps and burden of proof. |
24 | (a) General rule.--In determining whether a coal mine or |
25 | operating coal mine is or will be within a particular distance |
26 | from a storage reservoir which is material under this chapter, |
27 | the owner or operator of the coal mine and the storage operator |
28 | may rely on the most recent map of the storage reservoir or coal |
29 | mine filed by the other party with the department. |
30 | (b) Accuracy.--Where accuracy of a map or data filed under |
|
1 | this chapter is in issue, the person that filed the map or data |
2 | shall: |
3 | (1) at the request of an objecting party, disclose the |
4 | information and method used to compile the map or data, along |
5 | with any information available to the person that might |
6 | affect current validity of the map or data; and |
7 | (2) have the burden of proving accuracy of the map or |
8 | data. |
9 | § 3237. Exemptions and prohibitions. |
10 | (a) Inapplicability of chapter to certain coal mines.--This |
11 | chapter shall not apply to the following types of coal mines: |
12 | (1) Strip mines and auger mines operating from the |
13 | surface. |
14 | (2) Mines to which the former act of June 9, 1911 |
15 | (P.L.756, No.319), entitled "An act to provide for the health |
16 | and safety of persons employed in and about the bituminous |
17 | coal-mines of Pennsylvania, and for the protection and |
18 | preservation of property connected therewith," did not apply |
19 | in accordance with section 3 of Article XXVIII of that act. |
20 | (3) Mines to which the former act of June 2, 1891 |
21 | (P.L.176, No.177), entitled "An act to provide for the health |
22 | and safety of persons employed in and about the anthracite |
23 | coal mines of Pennsylvania and for the protection and |
24 | preservation of property connected therewith," did not apply |
25 | in accordance with section 1 of Article I of that act. |
26 | (b) Workable coal seams.--Injection of gas for storage |
27 | purposes in a workable coal seam, whether or not it is being or |
28 | has been mined, is prohibited. |
29 | (b.1) Original extraction.--Nothing in this chapter |
30 | prohibits original extraction of natural gas, crude oil or coal. |
|
1 | (c) Certain rock formations.--Nothing in this chapter |
2 | applies to storage of gas or liquids in storage reservoirs |
3 | excavated in rock formations specifically for storage purposes. |
4 | SUBCHAPTER D |
5 | EMINENT DOMAIN |
6 | Sec. |
7 | 3241. Appropriation of interest in real property. |
8 | § 3241. Appropriation of interest in real property. |
9 | (a) General rule.--Except as provided in this subsection, a |
10 | corporation empowered to transport, sell or store natural gas or |
11 | manufactured gas in this Commonwealth may appropriate an |
12 | interest in real property located in a storage reservoir or |
13 | reservoir protective area for injection, storage and removal |
14 | from storage of natural gas or manufactured gas in a stratum |
15 | which is or previously has been commercially productive of |
16 | natural gas. The right granted by this subsection shall not be |
17 | exercised to acquire any of the following for the purpose of gas |
18 | storage: |
19 | (1) An interest in a geological stratum within the area |
20 | of a proposed storage reservoir or reservoir protective area: |
21 | (i) unless the original recoverable oil or gas |
22 | reserves in the proposed storage reservoir have been |
23 | depleted or exhausted by at least 80%; and |
24 | (ii) until the condemnor has acquired the right, by |
25 | grant, lease or other agreement, to store gas in the |
26 | geological stratum underlying at least 75% of the area of |
27 | the proposed storage reservoir. |
28 | (2) An interest in a geological stratum within the area |
29 | of a proposed storage reservoir or reservoir protective area |
30 | owned directly or indirectly by a gas company or other person |
|
1 | engaged in local distribution of natural gas, if the interest |
2 | to be acquired is presently being used by the gas company or |
3 | other person for storage of gas in performance of service to |
4 | customers in its service area. |
5 | (b) Construction.--The following shall apply: |
6 | (1) This chapter authorizes appropriation within a |
7 | storage reservoir or reservoir protective area of the |
8 | following: |
9 | (i) a stratum to be used for storage; |
10 | (ii) any gas reserve remaining a stratum to be used |
11 | for storage; |
12 | (iii) an active or abandoned well or wells drilled |
13 | into a stratum to be used for storage; and |
14 | (iv) the right to enter upon and use the surface of |
15 | lands to: |
16 | (A) locate, recondition, maintain, plug or |
17 | replug an active or abandoned well; or |
18 | (B) operate a well drilled into or through a |
19 | stratum to be used for storage. |
20 | (2) This chapter does not preclude the owner of |
21 | nonstorage strata from drilling wells to produce oil or gas |
22 | from a stratum above or below the storage stratum |
23 | appropriated by another person, but a person appropriating or |
24 | holding storage rights may access, inspect and examine the |
25 | drilling, the completed well, drilling logs and other records |
26 | relating to drilling, equipping or operating the well in |
27 | order to determine whether the storage stratum is being |
28 | adequately protected to prevent escape of gas stored therein. |
29 | (3) This chapter does not authorize appropriation of a |
30 | coal or coal measure, regardless of whether it is being |
|
1 | mined, or an interest in the coal mine or coal measure. |
2 | (c) Activities through appropriated strata.--A person |
3 | drilling, operating, using or plugging a well through a stratum |
4 | appropriated under this chapter shall drill, case, equip, |
5 | operate or plug it in a manner designed to prevent avoidable |
6 | escape of gas that may be stored in the storage stratum. Upon |
7 | violation of this subsection, the court of common pleas of the |
8 | county where the land in question is situated may compel |
9 | compliance by injunction or grant other appropriate relief in an |
10 | action brought by the person storing gas in the storage stratum. |
11 | (d) Prerequisites to appropriation.--Before appropriating |
12 | under this chapter, a person shall attempt to agree with owners |
13 | of interests in the real property involved as to damages payable |
14 | for rights and interests to be appropriated, if the owners can |
15 | be found and are sui juris. If the parties fail to agree, the |
16 | person shall tender a surety bond to the owners to secure them |
17 | in the payment of damages. If the owners refuse to accept the |
18 | bond, cannot be found or are not sui juris, and after reasonable |
19 | notice to the owners by advertisement or otherwise, the bond |
20 | shall be presented for approval to the court of common pleas of |
21 | the county in which the tract of land is situated. Upon the |
22 | approval of the bond by the court, the right of the person to |
23 | appropriate in accordance with the provisions of this chapter |
24 | shall be complete. |
25 | (e) Appointment of viewers.--Upon petition of a property |
26 | owner or a person appropriating under this chapter, the court |
27 | shall: |
28 | (1) appoint three disinterested freeholders of the |
29 | county to serve as viewers to assess damages to be paid to |
30 | the property owner for the rights appropriated; |
|
1 | (2) fix a time for the parties to meet; |
2 | (3) provide notice to the parties; and |
3 | (4) after the viewers have filed their report, fix |
4 | reasonable compensation for the service of the viewers. |
5 | (f) Appeal.--Within 20 days after the filing of a report by |
6 | viewers appointed under subsection (e), a party may appeal and |
7 | proceed to a jury trial as in ordinary cases. |
8 | (g) Requirements.--Nothing in this section shall relieve a |
9 | person operating a storage reservoir from the requirements of |
10 | this chapter. |
11 | SUBCHAPTER E |
12 | ENFORCEMENT AND REMEDIES |
13 | Sec. |
14 | 3251. Conferences. |
15 | 3252. Public nuisances. |
16 | 3253. Enforcement orders. |
17 | 3254. Restraining violations. |
18 | 3255. Penalties. |
19 | 3256. Civil penalties. |
20 | 3257. Existing rights and remedies preserved and cumulative |
21 | remedies authorized. |
22 | 3258. Production of materials, witnesses, depositions and |
23 | rights of entry. |
24 | 3259. Unlawful conduct. |
25 | 3260. Collection of fines and penalties. |
26 | 3261. Third-party liability. |
27 | § 3251. Conferences. |
28 | (a) General rule.--The department or any person having a |
29 | direct interest in a matter subject to this chapter may, at any |
30 | time, request that a conference be held to discuss and attempt |
|
1 | to resolve by mutual agreement a matter arising under this |
2 | chapter. Unless otherwise provided, conferences shall be held |
3 | within 90 days after a request is received by the department, |
4 | and notice shall be given by the department to all interested |
5 | parties. A representative of the department shall attend the |
6 | conference and the department may make recommendations. An |
7 | agreement reached at a conference shall be consistent with this |
8 | chapter and, if approved by the department, it shall be reduced |
9 | to writing and shall be effective, unless reviewed and rejected |
10 | by the department within ten days after the conference. The |
11 | record of an agreement approved by the department shall be kept |
12 | on file by the department and copies shall be furnished to the |
13 | parties. The scheduling of a conference shall have no effect on |
14 | the department's authority to issue orders to compel compliance |
15 | with this chapter. |
16 | (b) Notification.--When a coal operator is to be notified of |
17 | a proceeding under this section, the department simultaneously |
18 | shall send a copy of the notice to the collective bargaining |
19 | representative of employees of the coal operator. |
20 | § 3252. Public nuisances. |
21 | A violation of section 3216 (relating to well site |
22 | restoration), 3217 (relating to protection of fresh groundwater |
23 | and casing requirements), 3218 (relating to protection of water |
24 | supplies), 3219 (relating to use of safety devices) or 3220 |
25 | (relating to plugging requirements), or a rule, regulation, |
26 | order, term or condition of a permit relating to any of those |
27 | sections constitutes a public nuisance. |
28 | § 3253. Enforcement orders. |
29 | (a) General rule.--Except as modified by subsections (b), |
30 | (c) and (d), the department may issue orders necessary to aid in |
|
1 | enforcement of this chapter. An order issued under this chapter |
2 | shall take effect upon notice, unless the order specifies |
3 | otherwise. The power of the department to issue an order under |
4 | this chapter is in addition to any other remedy available to the |
5 | department under this chapter or under any other law. |
6 | (b) Suspension and revocation.--The department may suspend |
7 | or revoke a well permit or well registration for any well in |
8 | continuing violation of this chapter, the act of June 22, 1937 |
9 | (P.L.1987, No.394), known as The Clean Streams Law, the act of |
10 | July 7, 1980 (P.L.380, No.97), known as the Solid Waste |
11 | Management Act, any other statute administered by the department |
12 | or a rule or regulation. The right of the department to revoke a |
13 | permit or registration under this subsection shall not be |
14 | effective until a final administrative determination has been |
15 | made of the violation and no appeal is pending in which a stay |
16 | has been granted. A suspension order of the department shall |
17 | automatically terminate if the violation upon which it is based |
18 | is corrected by the operator to bring the well into compliance |
19 | with this chapter. |
20 | (c) Written notice.--Prior to suspension or revocation of a |
21 | well permit or registration, the department shall serve written |
22 | notice on the well operator or its agent, stating specifically |
23 | the statutory provision, rule, regulation or other reason relied |
24 | upon, along with factual circumstances surrounding the alleged |
25 | violation. The well operator shall have 15 days to request a |
26 | conference with the department to show cause why action should |
27 | not be taken. Upon receipt of a request, the department shall |
28 | hold a conference and render a decision within 15 days after the |
29 | conference. The department shall provide written notice of the |
30 | decision to the well operator or its agent, which shall become |
|
1 | effective upon receipt. If the decision is to suspend or revoke |
2 | the permit or registration, the department may order the |
3 | operator to cap the well. |
4 | (d) Immediate orders.--An order of the department requiring |
5 | immediate cessation of drilling operations shall be effective |
6 | only if authorized by the secretary or by the Executive Deputy |
7 | Secretary for Environmental Protection. |
8 | (e) Grievances.--A person aggrieved by a department order |
9 | issued under this section shall have the right, within 30 days |
10 | of receipt of the notice, to appeal to the Environmental Hearing |
11 | Board. |
12 | (f) Inspection reports.--The department shall post |
13 | inspection reports on its publicly accessible Internet website. |
14 | The inspection reports shall include: |
15 | (1) The nature and description of violations. |
16 | (2) The operator's written response to the violation, if |
17 | available. |
18 | (3) The status of the violation. |
19 | (4) The remedial steps taken by the operator or the |
20 | department to address the violation. |
21 | § 3254. Restraining violations. |
22 | (a) General rule.--In addition to any other remedy provided |
23 | in this chapter, the department may institute a suit in equity |
24 | in the name of the Commonwealth for an injunction to restrain a |
25 | violation of this chapter or rules, regulations, standards or |
26 | orders adopted or issued under this chapter and to restrain the |
27 | maintenance or threat of a public nuisance. Upon motion of the |
28 | Commonwealth, the court shall issue a prohibitory or mandatory |
29 | preliminary injunction if it finds that the defendant is |
30 | engaging in unlawful conduct, as defined by this chapter, or |
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1 | conduct causing immediate and irreparable harm to the public. |
2 | The Commonwealth shall not be required to furnish bond or other |
3 | security in connection with the proceeding. In addition to an |
4 | injunction, the court in equity may level civil penalties as |
5 | specified in section 3256 (relating to civil penalties). |
6 | (b) District attorney.--In addition to other remedies in |
7 | this chapter, upon relation of the district attorney of a county |
8 | affected, or upon relation of the solicitor of a municipality |
9 | affected, an action in equity may be brought in a court of |
10 | competent jurisdiction for an injunction to restrain a violation |
11 | of this chapter or rules and regulations promulgated under this |
12 | chapter or to restrain a public nuisance or detriment to health. |
13 | (c) Concurrent penalties.--Penalties and remedies under this |
14 | chapter shall be deemed concurrent. Existence or exercise of one |
15 | remedy shall not prevent the department from exercising another |
16 | remedy at law or in equity. |
17 | (d) Jurisdiction.--Actions under this section may be filed |
18 | in the appropriate court of common pleas or in Commonwealth |
19 | Court, and those courts are hereby granted jurisdiction to hear |
20 | actions under this section. |
21 | § 3255. Penalties. |
22 | (a) General violation.--A person violating a provision of |
23 | this chapter commits a summary offense and, upon conviction, |
24 | shall be sentenced to pay a fine of not more than $1,000 or to |
25 | imprisonment of not more than 90 days, or both. Each day during |
26 | which the violation continues is a separate and distinct |
27 | offense. |
28 | (b) Willful violation.--A person willfully violating a |
29 | provision of this chapter or an order of the department issued |
30 | under this chapter commits a misdemeanor and, upon conviction, |
|
1 | shall be sentenced to pay a fine of not more than $5,000 or to |
2 | imprisonment of not more than one year, or both. Each day during |
3 | which the violation continues is a separate and distinct |
4 | offense. |
5 | (c) Authority.--The department may institute a prosecution |
6 | against any person or municipality for a violation of this |
7 | chapter. |
8 | § 3256. Civil penalties. |
9 | In addition to other remedies available at law or in equity |
10 | for a violation of this chapter, a rule or regulation of the |
11 | department or a departmental order or a permit condition, the |
12 | department, after a hearing, may assess a civil penalty |
13 | regardless of whether the violation was willful. The penalty |
14 | shall not exceed $25,000 plus $1,000 for each day during which |
15 | the violation continues, or in the case of a violation arising |
16 | from the construction, alteration or operation of an |
17 | unconventional well, $75,000 plus $5,000 for each day during |
18 | which the violation continues. In determining the amount, the |
19 | department shall consider willfulness of the violation, damage |
20 | or injury to natural resources of this Commonwealth or their |
21 | uses, endangerment of safety of others, the cost of remedying |
22 | the harm, savings resulting to the violator as a result of the |
23 | violation and any other relevant factor. The penalty shall be |
24 | payable to the Commonwealth and collectible in any manner |
25 | provided at law for collection of debts. If a violator neglects |
26 | or refuses to pay the penalty after demand, the amount, together |
27 | with interest and costs that may accrue, shall become a lien in |
28 | favor of the Commonwealth on the real and personal property of |
29 | the violator, but only after the lien has been entered and |
30 | docketed of record by the prothonotary of the county where the |
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1 | property is situated. The department may at any time transmit to |
2 | the prothonotaries of the various counties certified copies of |
3 | all liens. It shall be the duty of each prothonotary to enter |
4 | and docket the liens of record in the prothonotary's office and |
5 | index them as judgments are indexed, without requiring payment |
6 | of costs as a condition precedent to entry. |
7 | § 3257. Existing rights and remedies preserved and cumulative |
8 | remedies authorized. |
9 | Nothing in this chapter estops the Commonwealth or a district |
10 | attorney from proceeding in a court of law or in equity to abate |
11 | pollution forbidden under this chapter or a nuisance under |
12 | existing law. It is hereby declared to be the purpose of this |
13 | chapter to provide additional and cumulative remedies to control |
14 | activities related to drilling for, or production of, oil and |
15 | gas in this Commonwealth, and nothing contained in this chapter |
16 | abridges or alters rights of action or remedies existing, or |
17 | which existed previously, in equity or under common or statutory |
18 | law, criminal or civil. Neither this chapter, the grant of a |
19 | permit under this chapter nor an act done by virtue of this |
20 | chapter estops the Commonwealth, in exercising rights under |
21 | common or decisional law or in equity, from suppressing a |
22 | nuisance, abating pollution or enforcing common law or statutory |
23 | rights. No court of this Commonwealth with jurisdiction to abate |
24 | public or private nuisances shall be deprived of jurisdiction in |
25 | an action to abate a private or public nuisance instituted by |
26 | any person on grounds that the nuisance constitutes air or water |
27 | pollution. |
28 | § 3258. Production of materials, witnesses, depositions and |
29 | rights of entry. |
30 | (a) General rule.--The department may make inspections, |
|
1 | conduct tests or sampling or examine books, papers and records |
2 | pertinent to a matter under investigation under this chapter to |
3 | determine compliance with this chapter. For this purpose, the |
4 | duly authorized agents and employees of the department may at |
5 | all reasonable times enter and examine any involved property, |
6 | facility, operation or activity. |
7 | (b) Access.--The owner, operator or other person in charge |
8 | of a property, facility, operation or activity under this |
9 | chapter, upon presentation of proper identification and purpose |
10 | for inspection by agents or employees of the department, shall |
11 | provide free and unrestricted entry and access. Upon refusal, |
12 | the agent or employee may obtain a search warrant or other |
13 | suitable order authorizing entry and inspection. It shall be |
14 | sufficient to justify issuance of a search warrant authorizing |
15 | examination and inspection if: |
16 | (1) there is probable cause to believe that the object |
17 | of the investigation is subject to regulation under this |
18 | chapter; and |
19 | (2) access, examination or inspection is necessary to |
20 | enforce the provisions of this chapter. |
21 | (c) Witnesses.--In any part of this Commonwealth, the |
22 | department may subpoena witnesses, administer oaths, examine |
23 | witnesses, take testimony and compel production of books, |
24 | records, maps, plats, papers, documents and other writings |
25 | pertinent to proceedings or investigations conducted by the |
26 | department under this chapter. Upon refusal to obey a subpoena |
27 | by any person and on application of the department, a court may |
28 | enforce a subpoena in contempt proceedings. Fees for serving a |
29 | subpoena shall be the same as those paid to sheriffs for similar |
30 | services. |
|
1 | (d) Deposition.--The department or a party to a proceeding |
2 | before the department may cause the deposition of a witness who |
3 | resides in or outside of this Commonwealth to be taken in the |
4 | manner prescribed by law for taking depositions in civil |
5 | actions. |
6 | (e) Witness fee.--Witnesses summoned before the department |
7 | shall be paid the same fees as are paid to witnesses in courts |
8 | of record of general jurisdiction. Witnesses whose depositions |
9 | are taken under this chapter, and the officers taking those |
10 | depositions, shall be entitled to the same fees as those paid |
11 | for like services in court. |
12 | (f) Purchasers.--Upon request, a purchaser of oil or gas |
13 | shall provide the department information necessary to determine |
14 | ownership of facilities from which the purchaser obtained oil or |
15 | gas. The information shall be kept confidential for a period of |
16 | five years and the department may utilize it in enforcement |
17 | proceedings. The department may request information under this |
18 | section only when a well does not comply with section 3211(h) |
19 | (relating to well permits). |
20 | § 3259. Unlawful conduct. |
21 | It shall be unlawful for any person to: |
22 | (1) Drill, alter, operate or utilize an oil or gas well |
23 | without a permit or registration from the department as |
24 | required by this chapter or in violation of rules or |
25 | regulations adopted under this chapter, orders of the |
26 | department or a term or condition of a permit issued by the |
27 | department. |
28 | (2) Conduct an activity related to drilling for, or |
29 | production of, oil and gas: |
30 | (i) contrary to this chapter, rules or regulations |
|
1 | adopted under this chapter, an order of the department or |
2 | a term or condition of a permit issued by the department; |
3 | or |
4 | (ii) in any manner as to create a public nuisance or |
5 | adversely affect public health, safety, welfare or the |
6 | environment. |
7 | (3) Refuse, obstruct, delay or threaten an agent or |
8 | employee of the department acting in the course of lawful |
9 | performance of a duty under this chapter, including, but not |
10 | limited to, entry and inspection. |
11 | (4) Attempt to obtain a permit or identify a well as an |
12 | orphan well by misrepresentation or failure to disclose all |
13 | relevant facts. |
14 | (5) Cause abandonment of a well by removal of casing or |
15 | equipment necessary for production without plugging the well |
16 | in the manner prescribed under section 3220 (relating to |
17 | plugging requirements), except that the owner or operator of |
18 | a well may temporarily remove casing or equipment necessary |
19 | for production, but only if it is part of the normal course |
20 | of production activities. |
21 | § 3260. Collection of fines and penalties. |
22 | Fines and penalties shall be collectible in a manner provided |
23 | by law for collection of debts. If a person liable to pay a |
24 | penalty neglects or refuses to pay after demand, the amount, |
25 | together with interest and costs that may accrue, shall be a |
26 | judgment in favor of the Commonwealth on the person's property, |
27 | but only after the judgment has been entered and docketed of |
28 | record by the prothonotary of the county where the property is |
29 | situated. The department may transmit to prothonotaries of the |
30 | various counties certified copies of all judgments, and it shall |
|
1 | be the duty of each prothonotary to enter and docket them of |
2 | record in the prothonotary's office and index them as judgments |
3 | are indexed, without requiring payment of costs as a condition |
4 | precedent to entry. |
5 | § 3261. Third-party liability. |
6 | If a person other than a well operator renders a service or |
7 | product to a well or well site, that person is jointly and |
8 | severally liable with the well owner or operator for violations |
9 | of this chapter arising out of and caused by the person's |
10 | actions at the well or well site. |
11 | SUBCHAPTER F |
12 | (RESERVED) |
13 | SUBCHAPTER G |
14 | MISCELLANEOUS PROVISIONS |
15 | Sec. |
16 | 3291. Well plugging funds. |
17 | 3292. Local ordinances. |
18 | 3293. Effect on department authority. |
19 | 3294. Relationship to solid waste and surface mining. |
20 | 3295. Regulatory authority. |
21 | § 3291. Well plugging funds. |
22 | (a) Appropriation.--Fines, civil penalties and permit and |
23 | registration fees collected under this chapter are appropriated |
24 | to the department to carry out the purposes of this chapter. |
25 | (b) Surcharge.--To aid in indemnifying the Commonwealth for |
26 | the cost of plugging abandoned wells, a $50 surcharge is added |
27 | to the permit fee established by the department under section |
28 | 3211 (relating to well permits) for new wells. Money collected |
29 | as a result of the surcharge shall be paid into a restricted |
30 | revenue account in the State Treasury to be known as the |
|
1 | Abandoned Well Plugging Fund and expended by the department to |
2 | plug abandoned wells threatening the health and safety of |
3 | persons or property or pollution of waters of this Commonwealth. |
4 | (c) Orphan Well Plugging Fund.--The following shall apply: |
5 | (1) A restricted revenue account to be known as the |
6 | Orphan Well Plugging Fund is created. A $100 surcharge for |
7 | wells to be drilled for oil production and a $200 surcharge |
8 | for wells to be drilled for gas production are added to the |
9 | permit fee established by the department under section 3211 |
10 | for new wells. The surcharges shall be placed in the Orphan |
11 | Well Plugging Fund and expended by the department to plug |
12 | orphan wells. If an operator rehabilitates a well abandoned |
13 | by another operator or an orphan well, the permit fee and the |
14 | surcharge for the well shall be waived. |
15 | (2) The department shall study its experience in |
16 | implementing this section and shall report its findings to |
17 | the Governor and the General Assembly by August 1, 1992. The |
18 | report shall contain information relating to the balance of |
19 | the fund, number of wells plugged, number of identified wells |
20 | eligible for plugging and recommendations as to alternative |
21 | funding mechanisms. |
22 | (3) Expenditures by the department for plugging orphan |
23 | wells are limited to fees collected under this chapter. No |
24 | money from the General Fund shall be expended for this |
25 | purpose. |
26 | § 3292. Local ordinances. |
27 | Except with respect to ordinances adopted under the act of |
28 | July 31, 1968 (P.L.805, No.247), known as the Pennsylvania |
29 | Municipalities Planning Code, the act of October 4, 1978 |
30 | (P.L.851, No.166), known as the Flood Plain Management Act, and |
|
1 | the act of March 31, 1927 (P.L.98, No.69), referred to as the |
2 | Second Class City Zoning Law, local ordinances and enactments |
3 | purporting to regulate oil and gas well operations regulated by |
4 | this chapter are preempted and superseded by this chapter to the |
5 | extent the ordinances and enactments regulate the method of oil |
6 | and gas well operations. No ordinances or enactments adopted |
7 | under those acts shall impose conditions, requirements or |
8 | limitations on the method of oil and gas well operations |
9 | regulated by this chapter or attempt to accomplish the purposes |
10 | of this chapter. Nothing in this chapter shall affect the |
11 | traditional power of local government to regulate zoning and |
12 | land development of oil and gas activities as well as other |
13 | aspects, such as the time and the place of operations to protect |
14 | the health, safety and welfare of the general public through |
15 | local ordinances and enactments. |
16 | § 3293. Effect on department authority. |
17 | This chapter does not affect, limit or impair any right or |
18 | authority of the department under the act of June 22, 1937 |
19 | (P.L.1987, No.394), known as The Clean Streams Law, the act of |
20 | January 8, 1960 (1959 P.L.2119, No.787), known as the Air |
21 | Pollution Control Act, the act of November 26, 1978 (P.L.1375, |
22 | No.325), known as the Dam Safety and Encroachments Act or the |
23 | act of July 7, 1980 (P.L.380, No.97), known as the Solid Waste |
24 | Management Act. |
25 | § 3294. Relationship to solid waste and surface mining. |
26 | (a) General rule.--The obligation to obtain a permit and |
27 | post a bond under Articles III and V of the act of July 7, 1980 |
28 | (P.L.380, No.97), known as the Solid Waste Management Act, and |
29 | to provide public notice under section 1905-A(b)(1)(v) of the |
30 | act of April 9, 1929 (P.L.177, No.175), known as The |
|
1 | Administrative Code of 1929, for any pit, impoundment, method or |
2 | facility employed for the disposal, processing or storage of |
3 | residual wastes generated by the drilling of an oil or gas well |
4 | or from the production of wells which is located on the well |
5 | site, shall be considered to have been satisfied if the owner or |
6 | operator of the well meets the following conditions: |
7 | (1) the well is permitted under the requirements of |
8 | section 3211 (relating to well permits) or registered under |
9 | section 3213 (relating to well registration and |
10 | identification); |
11 | (2) the owner or operator has satisfied the financial |
12 | security requirements of section 3215 (relating to well |
13 | location restrictions) by obtaining a surety or collateral |
14 | bond for the well and well site; and |
15 | (3) the owner or operator maintains compliance with this |
16 | chapter and applicable regulations of the Environmental |
17 | Quality Board. |
18 | (b) Noncoal surface mining.--Obligations under the act of |
19 | December 19, 1984 (P.L.1093, No.219), known as the Noncoal |
20 | Surface Mining Conservation and Reclamation Act, or a rule or |
21 | regulation promulgated thereunder, for any borrow area where |
22 | minerals are extracted solely for the purpose of oil and gas |
23 | well development, including access road construction, shall be |
24 | considered to have been satisfied if the owner or operator of |
25 | the well meets the conditions imposed under subsection (a)(1) |
26 | and (2) and maintains compliance with this chapter and |
27 | applicable regulations of the Environmental Quality Board. |
28 | (c) Solid Waste Management Act.--This section does not |
29 | diminish or otherwise affect duties or obligations of an owner |
30 | or operator under the Solid Waste Management Act. This section |
|
1 | does not apply to waste classified as hazardous waste under the |
2 | Solid Waste Management Act or the Resource Conservation and |
3 | Recovery Act of 1976 (Public Law 94-580, 90 Stat. 2795, 42 |
4 | U.S.C. § 6901 et seq.). |
5 | (d) Definition.--As used in this section and sections 3216 |
6 | (relating to well site restoration) and 3225 (relating to |
7 | bonding), the term "well site" means areas occupied by all |
8 | equipment or facilities necessary for or incidental to drilling, |
9 | production or plugging a well. |
10 | § 3295. Regulatory authority. |
11 | The Environmental Quality Board shall adopt regulations to |
12 | implement this chapter. |
13 | CHAPTER 33 |
14 | MODEL ORDINANCE |
15 | Sec. |
16 | 3301. Model municipal ordinance. |
17 | 3302. Local ordinance. |
18 | § 3301. Model municipal ordinance. |
19 | (a) Purposes.--The purposes of this section are as follows: |
20 | (1) To optimize the development and use of this |
21 | Commonwealth's oil and gas reserves by increasing reasonable |
22 | consistency in zoning and other municipal regulation. |
23 | (2) To foster expeditious and efficient handling of |
24 | municipal oil and gas permitting procedures. |
25 | (3) To allow municipalities to enact regulations under |
26 | the act of July 31, 1968 (P.L.805, No.247), known as the |
27 | Pennsylvania Municipalities Planning Code, and the act of |
28 | October 4, 1978 (P.L.851, No.166), known as the Flood Plain |
29 | Management Act, insofar as the regulation is authorized by |
30 | section 3302 (relating to local ordinance) and this section. |
|
1 | (b) Authority.--The commission shall develop and adopt a |
2 | model ordinance to fulfill the purposes of this section. |
3 | (c) Adoption of provisions.-- |
4 | (1) Within 120 days of the effective date of this |
5 | section, the commission shall, by majority vote, adopt a |
6 | model ordinance for counties and municipalities pertaining to |
7 | oil and gas drilling activities in accordance with the |
8 | Pennsylvania Municipalities Planning Code, as applicable, the |
9 | Flood Plain Management Act and this section. |
10 | (2) The model zoning ordinance shall do all of the |
11 | following: |
12 | (i) Authorize oil and gas development as a permitted |
13 | use by right in all zoning districts except residential |
14 | districts. The commission may develop a model zoning |
15 | ordinance that allows oil and gas development in |
16 | residential zoning districts by conditional use or |
17 | special exception with conditions dependent on the |
18 | density of existing uses within the district and the |
19 | isolation distances achievable in each residential |
20 | district. |
21 | (ii) Authorize natural gas compression stations: |
22 | (A) as a permitted use by right in all |
23 | agricultural, industrial and commercial districts; |
24 | and |
25 | (B) as a conditional use in all other zoning |
26 | districts. |
27 | (iii) Authorize natural gas processing plants: |
28 | (A) as a permitted use by right in all |
29 | industrial districts; and |
30 | (B) as a conditional use or special exception in |
|
1 | agricultural districts. |
2 | (3) The model zoning ordinance shall not do any of the |
3 | following: |
4 | (i) Impose limitations on the hours of operation on |
5 | drilling operations. |
6 | (ii) Impose limitations on noise, light, height or |
7 | security or fencing on drilling operations, natural gas |
8 | compressor stations or natural gas processing plants if |
9 | the limitations are more stringent than limitations |
10 | imposed on construction activities for other similar land |
11 | uses. The model zoning ordinance may include limitations |
12 | on noise, light, height and security and fencing for |
13 | equipment or processes which are unique to the gas |
14 | industry and which are rational, nondiscriminatory and |
15 | reasonably defensible in the particular zone where they |
16 | apply. |
17 | (iii) Have a permit review period for uses by right |
18 | that exceeds 30 days for complete and responsive |
19 | submissions. |
20 | (iv) Impose restrictions on vehicular access routes |
21 | for overweight vehicles except as authorized under: |
22 | (A) 75 Pa.C.S. (relating to vehicles); or |
23 | (B) the Pennsylvania Municipalities Planning |
24 | Code. |
25 | (v) Regulate storm water, erosion and sedimentation |
26 | control or grading where the use is subject to regulation |
27 | by the department through an Erosion and Sedimentation |
28 | Control General Permit or similar permit. |
29 | (4) Nothing in this subsection shall limit or preempt a |
30 | county or municipality from action pursuant to the act of |
|
1 | October 4, 1978 (P.L.864, No.167), known as the Storm Water |
2 | Management Act. |
3 | (d) Effect of model ordinance.--An ordinance adopted by a |
4 | county or municipality to regulate oil and gas shall not contain |
5 | more stringent standards than the model ordinance adopted by the |
6 | commission. |
7 | (e) Timing.--The commission shall publish the adopted model |
8 | ordinance in the Pennsylvania Bulletin immediately after its |
9 | adoption and shall disseminate information about the model |
10 | ordinance through the Department of Community and Economic |
11 | Development, municipal associations and other means as the |
12 | commission shall deem appropriate. The costs of the notification |
13 | shall be borne by the Department of Community and Economic |
14 | Development. |
15 | (f) Miscellaneous.--The commission shall review the model |
16 | ordinance annually. Proposed amendments shall be published in |
17 | the Pennsylvania Bulletin within 30 days after their adoption. |
18 | (g) Ordinance.--(Reserved). |
19 | (h) Effective date of model ordinance.--The model ordinance |
20 | shall take effect 70 days following the commission's publication |
21 | of the ordinance in the Pennsylvania Bulletin under this |
22 | section. |
23 | § 3302. Local ordinance. |
24 | Nothing in this chapter shall impair or infringe upon the |
25 | preemption or supersedure of the regulation of gas wells under |
26 | section 602 of the act of December 19, 1984 (P.L.1140, No.223), |
27 | known as the Oil and Gas Act. |
28 | Section 2. Repeals are as follows: |
29 | (1) The General Assembly declares that the repeal under |
30 | paragraph (2) is necessary to effectuate the addition of 58 |
|
1 | Pa.C.S. Ch. 32. |
2 | (2) The act of December 19, 1984 (P.L.1140, No.223), |
3 | known as the Oil and Gas Act, is repealed. |
4 | Section 3. The addition of 58 Pa.C.S. § 3225(a)(1), (2) and |
5 | (3) and (c) shall apply to wells drilled after the effective |
6 | date of this section. |
7 | Section 4. The addition of 58 Pa.C.S. Ch. 32 is a |
8 | continuation of the act of December 19, 1984 (P.L.1140, No.223), |
9 | known as the Oil and Gas Act. The following apply: |
10 | (1) Except as otherwise provided in 58 Pa.C.S. Ch. 32, |
11 | all activities initiated under the Oil and Gas Act shall |
12 | continue and remain in full force and effect and may be |
13 | completed under 58 Pa.C.S. Ch. 32. Orders, regulations, rules |
14 | and decisions which were made under the Oil and Gas Act and |
15 | which are in effect on the effective date of section 2(2) of |
16 | this act shall remain in full force and effect until revoked, |
17 | vacated or modified under 58 Pa.C.S. Ch. 32. Contracts, |
18 | obligations and collective bargaining agreements entered into |
19 | under the Oil and Gas Act are not affected nor impaired by |
20 | the repeal of the Oil and Gas Act. |
21 | (2) Except as set forth in paragraph (3), any difference |
22 | in language between 58 Pa.C.S. Ch. 32 and the Oil and Gas Act |
23 | is intended only to conform to the style of the Pennsylvania |
24 | Consolidated Statutes and is not intended to change or affect |
25 | the legislative intent, judicial construction or |
26 | administration and implementation of the Oil and Gas Act. |
27 | (3) Paragraph (2) does not apply to the addition of the |
28 | following provisions: |
29 | (i) The following definitions in section 3203: |
30 | (A) "Unconventional formation." |
|
1 | (B) "Unconventional well." |
2 | (ii) Section 3211(a) introductory paragraph, (b), |
3 | (b.1), (b.2), (d), (e), (e.1)(5), (6) and (7), (f), (g) |
4 | and (k). |
5 | (iii) Section 3215(a), (b), (c) introductory |
6 | paragraph, (6) and (7) and (d). |
7 | (iv) Section 3218(a), (b.1), (b.2), (c), (c.1), (d) |
8 | (1), (3), (4) and (5) and (g). |
9 | (v) Section 3218.1. |
10 | (vi) Section 3218.2. |
11 | (vii) Section 3218.3. |
12 | (viii) Section 3222(a.1), (b), (b.1), (b.2) and |
13 | (b.3). |
14 | (ix) Section 3225(a)(1), (2) and (3)(iii) and (iv), |
15 | (c), (d), (d.1) and (f). |
16 | (x) Section 3253(c) and (f). |
17 | (xi) Section 3255(a) and (b). |
18 | (xii) Section 3256. |
19 | (xiii) Section 3292. |
20 | Section 5. This act shall take effect as follows: |
21 | (1) The following provisions shall take effect |
22 | immediately: |
23 | (i) This section. |
24 | (ii) The addition of 58 Pa.C.S. § 3301. |
25 | (2) Except for the addition of 58 Pa.C.S. § 3301, the |
26 | addition of 58 Pa.C.S. Ch. 33 shall take effect in 30 days. |
27 | (3) The addition of 58 Pa.C.S. § 3225 shall take effect |
28 | in 180 days. |
29 | (4) The remainder of this act shall take effect in 60 |
30 | days. |
|