HOUSE AMENDED
PRIOR PRINTER'S NOS. 1908, 1984, 2227 PRINTER'S NO. 2427
No. 1330 Session of 2008
INTRODUCED BY D. WHITE, WOZNIAK, KASUNIC, REGOLA, BROWNE,
GREENLEAF, ORIE, MUSTO, ROBBINS, M. WHITE, STOUT, MADIGAN,
BAKER AND FERLO, APRIL 3, 2008
AS REPORTED FROM COMMITTEE ON ENVIRONMENTAL RESOURCES AND
ENERGY, HOUSE OF REPRESENTATIVES, AS AMENDED,
SEPTEMBER 23, 2008
AN ACT
1 Establishing the Coal Methane Review Board to resolve disputes
2 between property owners over the location of coal bed methane
3 wells and access roads; PRESERVING THE USES AND VALUE OF <--
4 SURFACE LANDS OF THIS COMMONWEALTH FROM DAMAGE TO THE LANDS
5 FROM COAL BED METHANE EXTRACTION OR PRODUCTION; REQUIRING
6 DISCLOSURE STATEMENTS AS TO THE IMPACTS ON SURFACE LANDS OF
7 PROPOSED COAL BED METHANE GAS WELLS AND RELATED FACILITIES TO
8 BE PROVIDED TO LANDOWNERS AND TENANTS; PROVIDING FOR THE
9 JURISDICTION OF COURTS IN THE ENFORCEMENT THEREOF; REGULATING
10 THE INSTALLATION AND OPERATION OF COAL BED METHANE GAS WELLS
11 AND RELATED FACILITIES; REGULATING THE IMPACT OF THE
12 INSTALLATION OF COAL BED METHANE GAS WELLS AND RELATED
13 FACILITIES ON SURFACE LANDS AND WATERS; PLACING
14 RESPONSIBILITIES ON LANDOWNERS AND OCCUPIERS; AND IMPOSING
15 DUTIES UPON THE DEPARTMENT OF ENVIRONMENTAL PROTECTION.
16 The General Assembly of the Commonwealth of Pennsylvania
17 hereby enacts as follows:
18 Section 1. Short title.
19 This act shall be known and may be cited as the Coal Bed
20 Methane Well Dispute Resolution AND GAS DRILLING RIGHTS Act. <--
21 Section 2. Definitions.
22 The following words and phrases when used in this act shall
1 have the meanings given to them in this section unless the
2 context clearly indicates otherwise:
3 "Alternative dispute resolution." The procedure for dispute <--
4 resolution provided in this act.
5 "Board." The Coal Bed Methane Review Board established in
6 section 4.
7 "Coal bed methane." Gas which can be produced from a coal <--
8 seam, a mined-out area or a gob well.
9 "Coal bed methane well." A hole or well which is sunk,
10 drilled, bored or dug into the earth for the production of coal
11 bed methane from a coal seam, a mined-out area or a gob well for
12 consumption or sale. The term includes a horizontal borehole.
13 The term does not include any of the following:
14 (1) A shaft, hole or well which is sunk, drilled, bored
15 or dug into the earth for core drilling or production of coal
16 or water.
17 (2) A borehole drilled or being drilled for the purpose
18 of or to be used for degasifying coal seams if a condition in
19 one of the following subparagraphs is met:
20 (i) The borehole is:
21 (A) Used to vent methane to the outside
22 atmosphere from an operating coal mine.
23 (B) Regulated as part of the mining permit under
24 the act of June 22, 1937 (P.L.1987, No.394), known as
25 The Clean Streams Law, and the act of May 31, 1945
26 (P.L.1198, No.418), known as the Surface Mining
27 Conservation and Reclamation Act.
28 (C) Drilled by the operator of the operating
29 coal mine for the purpose of increased safety.
30 (ii) The borehole is used to vent methane to the
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1 outside atmosphere under a federally funded or
2 Commonwealth-funded abandoned mine reclamation project.
3 (3) A well or borehole drilled in a coal seam from
4 within an underground coal mine for the production of coal
5 bed methane. This paragraph includes a well or borehole
6 connected to a well or borehole which is sunk, drilled or dug
7 from the surface.
8 "Department." The Department of Environmental Protection of
9 the Commonwealth.
10 "Permit." A well permit issued pursuant to the act of
11 December 19, 1984 (P.L.1140, No.223), known as the Oil and Gas
12 Act.
13 "Secretary." The Secretary of Environmental Protection of
14 the Commonwealth.
15 "Surface owner." A person who owns any of the following
16 interests in the surface upon which a coal bed methane well or
17 associated access road may be constructed:
18 (1) A fee interest.
19 (2) An interest for life.
20 (3) A remainder interest.
21 The term does not include:
22 (1) The Federal or State government or any agency or
23 political subdivision thereof.
24 (2) A person who is entitled to royalties for removal or
25 recovery of coal bed methane.
26 (3) A person who owns a lease, easement, right-of-way,
27 license, privilege or other similar interest in the surface.
28 "Well operator." A person who has filed or who is required
29 to file for a permit under the act of December 19, 1984
30 (P.L.1140, No.223), known as the Oil and Gas Act.
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1 Section 3. Legislative purpose and intent.
2 It is the purpose of this act to establish an alternative
3 procedure to court action for consideration and resolution of
4 objections to the location of certain coal bed methane wells or
5 roads associated with those wells to be constructed on surface
6 lands and to modify the procedure for review of permit
7 applications to the extent necessary to allow for the procedure
8 for alternative dispute resolution.
9 "COAL BED METHANE GAS." ANY FLUID, EITHER COMBUSTIBLE OR <--
10 NONCOMBUSTIBLE, WHICH IS PRODUCED IN A NATURAL STATE FROM COAL
11 SEAMS WITHIN THE EARTH AND WHICH MAINTAINS A GASEOUS OR RARIFIED
12 STATE AT STANDARD TEMPERATURE OF 60 DEGREES FAHRENHEIT AND
13 PRESSURE 14.7 PSIA, ANY BY-PRODUCT GAS OR ANY MIXTURE OF GASES.
14 "COAL BED METHANE GAS OPERATIONS" OR "OPERATIONS." ANY
15 ACTIVITIES AFFECTING LAND OR WATER SOURCES, NO MATTER HOW
16 SLIGHT, THAT ARE ASSOCIATED WITH COAL BED METHANE GAS
17 EXPLORATION OR PRODUCTION, INCLUDING, BUT NOT LIMITED TO, THE
18 CONSTRUCTION, INSTALLATION, MAINTENANCE OR REMOVAL OF COAL BED
19 METHANE GAS WELLS. THE CONSTRUCTION, INSTALLATION, MAINTENANCE
20 OR REMOVAL OF PIPELINES AND EQUIPMENT FOR COAL BED METHANE GAS
21 OR WATER, INSTALLATION, MAINTENANCE AND REMOVAL OF ALL ACCESS OR
22 SERVICE ROADS, INSTALLATION, MAINTENANCE OR REMOVAL OF COAL BED
23 METHANE GAS PRODUCTION OR STORAGE EQUIPMENT AND FACILITIES,
24 REWORK OF COAL BED METHANE GAS WELLS, PLUGGING OF COAL BED
25 METHANE GAS WELLS, ACTIONS TAKEN TO RECLAIM WELL SITES AND ROAD
26 AND PIPELINE RIGHTS-OF-WAY.
27 "DEPARTMENT." THE DEPARTMENT OF ENVIRONMENTAL PROTECTION OF
28 THE COMMONWEALTH.
29 "PERSON." ANY NATURAL PERSON, ASSOCIATION, PARTNERSHIP,
30 CORPORATION, POLITICAL SUBDIVISION OR AGENCY OF THE FEDERAL OR
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1 STATE GOVERNMENT OR OTHER LEGAL ENTITY.
2 "RECLAIM." TO RESTORE ANY PORTION OF LAND AFFECTED BY COAL
3 BED METHANE GAS OPERATIONS TO THE SAME OR SUBSTANTIALLY SIMILAR
4 CONDITION THAT EXISTED PRIOR TO COAL BED METHANE GAS OPERATIONS,
5 OR AS OTHERWISE AGREED TO IN A MEMORIALIZED AGREEMENT BETWEEN
6 THE OPERATOR AND THE LAND OWNER OR TENANTS.
7 "SURFACE." THE UPPERMOST PORTION OF THE EARTH'S CRUST,
8 INCLUDING THE LAND AND AQUATIC FEATURES.
9 "SURFACE OWNER." A PERSON WHO HOLDS LEGAL OR EQUITABLE TITLE
10 TO THE SURFACE OF A PARCEL OF REAL PROPERTY.
11 "SURFACE USE AND COMPENSATION AGREEMENT." AN AGREEMENT,
12 WRITTEN, SIGNED AND NOTARIZED, BETWEEN A SURFACE OWNER AND AN
13 OPERATOR STIPULATING THE LOCATION OF PROPOSED COAL BED METHANE
14 GAS WELLS, ACCESS ROADS AND ANY OTHER USES OF THE SURFACE DURING
15 COAL BED METHANE GAS EXPLORATION AND PRODUCTION. A COAL BED
16 METHANE GAS OPERATION LEASE AGREEMENT ENTERED INTO BY A SURFACE
17 OWNER AND AN OPERATOR, WHICH PAYS THE SURFACE OWNER AT LEAST A
18 ONE-EIGHTH ROYALTY ON COAL BED METHANE GAS EXTRACTED FROM AREAS
19 UNDER THE SURFACE OF THE SURFACE OWNER'S REAL PROPERTY, SHALL BE
20 DEEMED A SURFACE USE AND COMPENSATION AGREEMENT FOR THE PURPOSES
21 OF THIS ACT.
22 "TENANT." A PERSON WHO OCCUPIES A PARCEL OF REAL PROPERTY
23 BELONGING TO THE SURFACE OWNER IN SUBORDINATION TO THE SURFACE
24 OWNER'S TITLE AND WITH THE OWNER'S ASSENT, EXPRESS OR IMPLIED.
25 "WATER SOURCES." ANY AND ALL RIVERS, STREAMS, CREEKS,
26 RIVULETS, IMPOUNDMENTS, DITCHES, WATERCOURSES, STORM SEWERS,
27 LAKES, DAMMED WATER, PONDS, SPRINGS OR ALL OTHER BODIES OF
28 SURFACE WATER, OR PARTS THEREOF, WHETHER NATURAL OR ARTIFICIAL,
29 WITHIN OR ON THE BOUNDARIES OF THE SURFACE OWNER.
30 "WELL." A BORE HOLE DRILLED OR BEING DRILLED FOR THE PURPOSE
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1 OF, OR TO BE USED FOR, PRODUCING, EXTRACTING OR INJECTING ANY
2 COAL BED METHANE GAS OR OTHER LIQUID RELATED TO COAL BED METHANE
3 GAS PRODUCTION OR STORAGE, INCLUDING BRINE DISPOSAL, BUT
4 EXCLUDING BORE HOLES DRILLED TO PRODUCE POTABLE WATER TO BE USED
5 AS SUCH. THE TERM DOES NOT INCLUDE A BORE HOLE DRILLED OR BEING
6 DRILLED FOR THE PURPOSE OF, OR TO BE USED FOR, SYSTEMS OF
7 MONITORING, PRODUCING OR EXTRACTING GAS FROM SOLID WASTE
8 DISPOSAL FACILITIES, AS LONG AS THE WELLS ARE SUBJECT TO THE ACT
9 OF JULY 7, 1980 (P.L.380, NO.97), KNOWN AS THE SOLID WASTE
10 MANAGEMENT ACT, AND DO NOT PENETRATE A COAL SEAM. THE TERM ALSO
11 DOES NOT INCLUDE A BORE HOLE DRILLED OR BEING DRILLED FOR THE
12 PURPOSE OF, OR TO BE USED FOR, DEGASIFYING COAL SEAMS IF THE
13 FOLLOWING CONDITIONS ARE SATISFIED:
14 (1) (I) THE BORE HOLE IS USED TO VENT COAL BED METHANE
15 TO THE OUTSIDE ATMOSPHERE FROM AN OPERATING COAL MINE AND
16 THE COAL BED METHANE IS NOT THEN COLLECTED AND USED FOR
17 ANY COMMERCIAL PURPOSE;
18 (II) THE BORE HOLE IS REGULATED AS PART OF THE
19 MINING PERMIT PURSUANT TO THE ACT OF JUNE 22, 1937
20 (P.L.1987, NO.394), KNOWN AS THE CLEAN STREAMS LAW, AND
21 THE ACT OF MAY 31, 1945 (P.L.1198, NO.418), KNOWN AS THE
22 SURFACE MINING CONSERVATION AND RECLAMATION ACT; AND
23 (III) THE BORE HOLE IS DRILLED BY THE OPERATOR OF
24 THE OPERATING COAL MINE FOR THE PURPOSE OF INCREASED
25 SAFETY; OR
26 (2) THE BORE HOLE IS USED TO VENT COAL BED METHANE TO
27 THE OUTSIDE ATMOSPHERE PURSUANT TO A FEDERAL OR STATE-FUNDED
28 ABANDONED MINE RECLAMATION PROJECT.
29 "WELL OPERATOR" OR "OPERATOR." THE PERSON DESIGNATED AS THE
30 WELL OPERATOR OR OPERATOR ON THE PERMIT APPLICATION OR WELL
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1 REGISTRATION. WHERE A PERMIT OR REGISTRATION WAS NOT ISSUED, THE
2 TERM SHALL MEAN ANY PERSON WHO OWNS, MANAGES, LEASES, CONTROLS
3 OR POSSESSES ANY COAL BED METHANE GAS WELL OR ANY PERSON WHO
4 LOCATES, DRILLS, OPERATES, ALTERS OR PLUGS ANY COAL BED METHANE
5 WELL OR RECONDITIONS ANY SUCH WELL WITH THE PURPOSE OF
6 PRODUCTION THEREFROM. IN CASES WHERE A WELL IS USED IN
7 CONNECTION WITH THE UNDERGROUND STORAGE OF COAL BED METHANE GAS,
8 THE TERM ALSO MEANS A "STORAGE OPERATOR."
9 SECTION 3. APPLICABILITY.
10 THE PROTECTIONS OF THIS ACT SHALL APPLY TO ALL SURFACE LANDS
11 WITHIN THIS COMMONWEALTH, WHETHER PUBLICLY OR PRIVATELY OWNED,
12 AND THE LEASEHOLD INTERESTS OF TENANTS ON ANY SUCH LANDS TO THE
13 EXTENT ANY DAMAGE OR ANY DIMINUTION IN VALUE TO THE TENANT'S
14 LEASEHOLD IMPROVEMENTS RESULT FROM OIL OR GAS OPERATIONS.
15 Section 4. Coal Bed Methane Review Board.
16 (a) Establishment.--There is established the Coal Bed
17 Methane Review Board.
18 (b) Members.--The following shall apply:
19 (1) The board shall consist of the following members:
20 (i) One member appointed by the Governor from a list
21 of three individuals submitted by the Pennsylvania Farm
22 Bureau.
23 (ii) One member appointed by the Governor from a
24 list of three individuals prepared jointly by the
25 Pennsylvania Oil and Gas Association, the Independent Oil
26 and Gas Association of Pennsylvania and the Pennsylvania
27 Coal Association.
28 (iii) One member appointed by the Governor who is an
29 individual with expertise in petroleum geology or
30 petroleum engineering with at least three years of
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1 experience in practice in Pennsylvania who is appointed
2 from a list of three individuals prepared jointly by the
3 deans of the College of Agricultural Sciences and the
4 College of Earth and Mineral Sciences of the Pennsylvania
5 State University.
6 (2) The lists required by paragraph (1) shall be
7 submitted to the Governor within 30 days of the effective
8 date of this section, and the Governor's appointments shall
9 be made within 90 days of the effective date of this section.
10 (3) Upon occurrence of a vacancy, the appropriate entity
11 shall submit a new list within 30 days of the vacancy, and
12 the Governor shall make an appointment within 30 days of
13 receipt of the list.
14 (c) Terms.--The term of appointment of a board member shall
15 be three years or until a successor is duly appointed. A board
16 member may be appointed for successive terms.
17 (d) Support.--The department shall provide administrative
18 and clerical support to the board as requested.
19 (e) Purpose.--The purpose of the board shall be to consider
20 objections and attempt to reach agreement on or determine a
21 location for the coal bed methane well or access road.
22 (f) Compensation.--Members of the board shall be compensated
23 at the appropriate per diem rate based on the prevailing formula
24 administered by the Commonwealth, but not less than $150 per
25 day, plus all reasonable expenses incurred while performing
26 their official duties. Compensation shall be adjusted annually
27 by the secretary to account for inflation based on the rate of
28 inflation identified by the Consumer Price Index published by
29 the United States Department of Labor. The individual member may
30 waive his right to all or part of the compensation set forth in
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1 this subsection.
2 Section 5. Procedures. <--
3 (a) Notification.--A well operator who intends to drill a
4 coal bed methane well or construct an access road associated
5 with a coal bed methane well shall provide written notification
6 to the surface owner in the manner prescribed in section 201(b)
7 of the act of December 19, 1984 (P.L.1140, No.223), known as the
8 Oil and Gas Act. The notification shall
9 SECTION 5. DUTIES OF OPERATORS. <--
10 (A) DUTIES.--EXCEPT TO THE EXTENT OTHERWISE PROVIDED IN A
11 SURFACE USE AND COMPENSATION AGREEMENT DULY EXECUTED BY A
12 SURFACE OWNER AND AN OPERATOR, WHERE COAL BED METHANE GASES ARE
13 NOT LEASED FOR EXTRACTION FROM THE SURFACE OWNER BY THE OPERATOR
14 IN A LEASE PAYING AT LEAST A ONE-EIGHTH ROYALTY TO THE SURFACE
15 OWNER, AN OPERATOR SHALL TIMELY:
16 (1) COMPENSATE FULLY THE SURFACE OWNER FOR ALL INJURIES
17 INCURRED, INCLUDING:
18 (I) LOST INCOME OR EXPENSES INCURRED AS A RESULT OF
19 BEING UNABLE TO DEDICATE LAND OCCUPIED BY THE GAS
20 PRODUCER'S OPERATIONS, OR TO WHICH ACCESS IS PREVENTED BY
21 SUCH OPERATION, TO THE USES TO WHICH IT WAS DEDICATED
22 PRIOR TO COMMENCEMENT OF THE OPERATIONS AS MEASURED FROM
23 THE DATE THE OPERATOR FIRST ENTERS UPON THE LAND UNTIL
24 THE DATE ALL RECLAMATION IS COMPLETED.
25 (II) THE MARKET VALUE OF CROPS DESTROYED, DAMAGED OR
26 PREVENTED FROM REACHING MARKET.
27 (III) ALL DAMAGE TO A WATER SUPPLY IN USE PRIOR TO
28 THE COMMENCEMENT OF THE PERMITTED ACTIVITY.
29 (IV) THE COST OF REPAIR OR REPLACEMENT OF PERSONAL
30 OR REAL PROPERTY DAMAGES BY ACTIVITIES BY OR ON BEHALF OF
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1 THE OPERATOR.
2 (V) THE DIMINUTION IN VALUE OF THE SURFACE LANDS AND
3 OTHER PROPERTY, INCLUDING BOTH THE SURFACE LANDS ACTUALLY
4 DISTURBED AND ANY ADJACENT SURFACE LANDS, THE MARKET
5 VALUE OF WHICH IS DIMINISHED BY THE PRESENCE OF THE WELL
6 AND THE SURFACE DISTURBANCE AND OTHER APPURTENANCES,
7 DURING THE OPERATOR'S USE THEREOF FOR COAL BED METHANE
8 GAS PRODUCTION AND RELATED OPERATIONS.
9 (2) RECLAIM ENTIRELY THE SURFACE AFFECTED BY OIL OR GAS
10 OPERATIONS WITHIN NINE MONTHS OF THE CESSATION OF EXTRACTING
11 COAL BED METHANE GAS FROM ANY WELL ON A SURFACE OWNER'S TRACT
12 OF LAND.
13 (B) EXCEPTION.--AN OPERATOR SHALL NOT BE RESPONSIBLE FOR
14 NEGOTIATING OR ALLOCATING COMPENSATION BETWEEN THE SURFACE OWNER
15 AND ANY TENANT, EXCEPT THAT AN OPERATOR SHALL COMPENSATE FULLY
16 ANY TENANT OF THE SURFACE OWNER FOR ANY DIMINUTION IN VALUE OF
17 LEASEHOLD IMPROVEMENTS, MADE BY THE TENANT, DAMAGED AS A RESULT
18 OF THE OPERATOR'S COAL BED METHANE GAS OPERATIONS.
19 SECTION 6. NOTICE OF OPERATIONS AND SURFACE USE AND
20 COMPENSATION AGREEMENT.
21 (A) NOTICE OF PROPOSED ACTIVITY.--PRIOR TO INITIAL ENTRY
22 UPON A TRACT OF LAND FOR ACTIVITIES THAT WILL NOT DISTURB THE
23 SURFACE, INCLUDING INSPECTIONS, STAKING, SURVEYS, MEASUREMENTS
24 AND GENERAL EVALUATIONS OF PROPOSED ROUTES AND SITES FOR COAL
25 BED METHANE GAS OPERATIONS, THE OPERATOR SHALL PROVIDE AT LEAST
26 15 BUSINESS DAYS' NOTICE BY CERTIFIED MAIL TO THE SURFACE OWNER
27 OF EACH TRACT ON WHICH THE OPERATOR PROPOSES ANY SUCH ACTIVITY
28 AS WELL AS A STATEMENT CITING DEEDS, LEASES, RIGHTS-OF-WAY,
29 EASEMENTS AND OTHER RIGHTS RELATING TO THE OPERATOR'S RIGHT OF
30 ACCESS THERETO.
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1 (B) NOTICE OF APPLICATION.--PRIOR TO SUBMISSION OF ANY
2 APPLICATION FOR A PERMIT TO THE DEPARTMENT UNDER SECTION 201 OF
3 THE ACT OF DECEMBER 19, 1984 (P.L.1140, NO.223), KNOWN AS THE
4 OIL AND GAS ACT, AND NO LESS THAN 45 DAYS BEFORE FIRST ENTERING
5 THE SURFACE OF THE LAND TO CONDUCT ANY COAL BED METHANE GAS
6 OPERATIONS THEREON, AN OPERATOR SHALL, BY CERTIFIED MAIL,
7 PROVIDE THE SURFACE OWNER WITH NOTICE OF THE SCOPE AND EXTENT OF
8 ALL PLANNED OPERATIONS, THROUGH AND INCLUDING THE PLUGGING AND
9 REMOVAL OF WELLS AND THE REMOVAL OF PIPELINES, OTHER EQUIPMENT
10 AND ACCESS ROADS. COPIES OF THIS NOTICE SHALL ALSO BE SENT TO
11 SURFACE OWNERS WITHIN A HALF-MILE RADIUS OF EACH PROPOSED WELL
12 SITE. EVERY NOTICE SHALL INCLUDE ALL OF THE FOLLOWING:
13 (1) TOPOGRAPHICAL AND UNDERGROUND MAPS OF THE RELEVANT
14 AREAS, PERMITS AND ANY MATERIALS SUBMITTED BY THE OPERATOR TO
15 OBTAIN PERMITS TO ENABLE THE SURFACE OWNER TO EVALUATE THE
16 EFFECTS THAT THE OPERATIONS MIGHT HAVE ON THAT OWNER'S LANDS.
17 (2) A COPY OF THIS ACT AND A COPY OF THE OIL AND GAS
18 ACT.
19 (3) THE NAME, ADDRESS, TELEPHONE NUMBER AND, IF
20 AVAILABLE, FACSIMILE NUMBER AND ELECTRONIC MAIL ADDRESS OF
21 THE OPERATOR AND THE OPERATOR'S AUTHORIZED REPRESENTATIVE.
22 (4) INFORMATION REGARDING REQUIRED OR RECOMMENDED
23 PREDRILLING SURVEYS AND OTHER PROVISIONS RELATING TO:
24 (I) PROTECTION OF WATER SOURCES;
25 (II) WELL LOCATION RESTRICTIONS; AND
26 (III) CASING, CEMENTING AND PLUGGING PLANS FOR WELLS
27 AND PRODUCTION-RELATED HORIZONTAL BOREHOLES PURSUANT TO
28 THE OIL AND GAS ACT.
29 (5) A PROPOSED WRITTEN SURFACE USE AND COMPENSATION
30 AGREEMENT ADDRESSING, TO THE EXTENT KNOWN, THE FOLLOWING:
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1 (I) PLACEMENT, SPECIFICATIONS, MAINTENANCE AND
2 DESIGN OF WELL PADS, GATHERING PIPELINES, WATER OR BRINE
3 PIPELINES, STORAGE FACILITIES FOR WATER OR COAL BED
4 METHANE GAS, COMPRESSOR STATIONS, TRANSMISSION PIPELINES,
5 PUMP STATIONS, METER PITS AND ROADS TO BE CONSTRUCTED AND
6 ANY AND ALL OTHER FACILITIES OF EVERY TYPE TO BE
7 CONSTRUCTED AND UTILIZED EITHER TEMPORARILY OR
8 PERMANENTLY FOR OPERATIONS.
9 (II) PROPOSED FREQUENCY OF ALL INGRESS AND EGRESS
10 ACROSS OR UNDER THE SURFACE OF THE LAND FOR OPERATIONS,
11 INCLUDING PIPELINES, AND THE ROUTES FOR SAME.
12 (III) CONSTRUCTION, MAINTENANCE AND PLACEMENT OF ALL
13 PITS USED OR PLANNED FOR OPERATIONS.
14 (IV) EXTENT OF USE AND IMPOUNDMENT OF WATER ON THE
15 SURFACE OF THE LAND.
16 (V) REMOVAL AND RESTORATION OF THE SPECIES OF PLANT
17 LIFE EXISTING PRIOR TO COMMENCEMENT OF ANY OPERATIONS ON
18 AREAS TO BE IMPACTED BY THOSE OPERATIONS.
19 (VI) SURFACE WATER DRAINAGE CHANGES.
20 (VII) PLANS AND ACTIONS TO LIMIT AND EFFECTIVELY
21 CONTROL STORM WATER RUNOFF AND SEDIMENTATION AND EROSION,
22 TOPSOIL STORAGE AND ROAD STEEPNESS, SIDE SLOPE, DRAINAGE
23 STRUCTURES AND THEIR FREQUENCY.
24 (VIII) CONTROLS AND MANAGEMENT OF NOISE, WEEDS,
25 SEWAGE DISPOSAL, DUST, TRAFFIC, TRESPASS, LITTER AND ANY
26 OTHER INTERFERENCES WITH THE SURFACE OWNER'S OR TENANT'S
27 USE AND ENJOYMENT OF THE SURFACE.
28 (IX) INTERIM AND FINAL PROPOSALS TO RECLAIM THE
29 SURFACE.
30 (X) PLANS OR ACTIONS TO BE UNDERTAKEN TO MINIMIZE
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1 DAMAGES TO THE SURFACE.
2 (XI) OPERATOR INDEMNIFICATION FOR INJURY TO PERSONS
3 OR PROPERTIES OTHER THAN THAT OF THE SURFACE OWNER WHEN
4 CAUSED BY THE OPERATIONS.
5 (XII) ALL EFFORTS AN OPERATOR WILL TAKE TO RESTRICT
6 ACCESS TO SURFACE OWNER'S LAND BY THIRD PARTIES UTILIZING
7 THE OPERATOR'S ACCESS ROADS AND RIGHTS-OF-WAY.
8 (XIII) SPECIFICATIONS FOR THE REVEGETATION OF THE
9 WELL SITE, PITS, DISPOSAL AREAS, ACCESS ROADS, PIPELINES
10 AND OTHER FACILITIES OR USES ASSOCIATED WITH THE WELL
11 WORK, ROAD SURFACES, SOIL PREPARATION, TEMPORARY SEED
12 SPECIES AND PERMANENT SEED SPECIES.
13 (XIV) PARTICULAR SPECIFICATIONS FOR MAINTENANCE AT
14 ALL TIMES OF EXISTING ROADS USED BY THE SURFACE OWNER
15 THAT THE OPERATOR PROPOSES TO UTILIZE, INCLUDING, WITHOUT
16 LIMITATION, GATING APPLIANCE SPECIFICATIONS, LOCATIONS
17 AND GATING PRACTICES.
18 (XV) AN OFFER OF COMPENSATION FOR DAMAGES TO THE
19 SURFACE BROUGHT ABOUT IN WHOLE OR IN PART BY OPERATIONS.
20 (6) A PLAT THAT SHALL SHOW THE TRACT OF LAND UPON WHICH
21 EACH WELL IS TO BE LOCATED, THE NAME OF THE SURFACE LANDOWNER
22 OF RECORD AND LESSOR, IF ANY, THE NAME OF ALL SURFACE
23 LANDOWNERS OR WATER PURVEYORS WHOSE WATER SUPPLIES ARE WITHIN
24 A HALF MILE OF THE PROPOSED WELL LOCATION, THE NAME OF THE
25 OWNER OF RECORD AND OPERATOR OF ALL KNOWN UNDERLYING WORKABLE
26 COAL SEAMS, IF ANY, THE ACREAGE IN THE TRACT TO BE DRILLED,
27 THE PROPOSED LOCATION OF EACH WELL DETERMINED BY SURVEY, THE
28 COURSES AND DISTANCES OF SUCH LOCATION FROM TWO OR MORE
29 PERMANENT IDENTIFIABLE POINTS OR LANDMARKS ON THE TRACT
30 BOUNDARY CORNERS, THE PROPOSED ANGLE AND DIRECTION OF SUCH
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1 WELL, IF THE WELL IS TO DEVIATE SUBSTANTIALLY FROM THE
2 VERTICAL COURSE, THE NUMBER OR OTHER IDENTIFICATION TO BE
3 GIVEN THE WELL, THE WORKABLE COAL SEAMS, IF ANY, UNDERLYING
4 THE TRACT OF LAND UPON WHICH THE WELL IS TO BE DRILLED OR
5 ALTERED, WHICH ARE CASED OFF IN ACCORDANCE WITH SECTION 207
6 OF THE OIL AND GAS ACT. THE PLAT SHALL ALSO INCLUDE THE
7 LOCATION OF ALL WATER SOURCES, PLACEMENT OF WELL PADS,
8 GATHERING PIPELINES, WATER PIPELINES, STORAGE FACILITIES FOR
9 OIL, GAS OR WATER, ALL COMPRESSOR STATIONS, METER PITS AND
10 PUMP STATIONS AND ROADS TO BE CONSTRUCTED FOR COAL BED
11 METHANE GAS OPERATIONS, PLACEMENT OF ALL PITS AND EQUIPMENT
12 USED OR PLANNED, USE AND IMPOUNDMENT OF WATER ON THE SURFACE
13 OF THE LAND.
14 (C) ADDRESS.--THE NOTICE REQUIRED BY THIS SECTION SHALL BE
15 SENT TO THE SURFACE OWNER AT THE ADDRESS SHOWN BY THE PROPERTY
16 TAX RECORDS AT THE TIME THE NOTICE IS GIVEN. IF THE PROPERTY TAX
17 RECORDS FOR THE COUNTY OR THE RECORDS IN THE RECORDER'S OFFICE
18 FOR THE COUNTY WHERE THE PROPERTY IS LOCATED DISCLOSE THAT THE
19 LAND'S LEGAL TITLE AND EQUITABLE TITLE ARE NOT HELD BY THE SAME
20 PERSON, NOTICE SHALL BE GIVEN TO BOTH THE HOLDER OF LEGAL TITLE
21 AND TO THE HOLDER OF EQUITABLE TITLE AT THE ADDRESSES SHOWN BY
22 THE RECORDS OF THE PROPERTY TAX RECORDS AT THE TIME THE NOTICE
23 IS GIVEN.
24 (D) OWNER'S OPTION.--UPON RECEIPT OF THE NOTICE REQUIRED BY
25 SUBSECTION (B) THE SURFACE OWNER MAY:
26 (1) ACCEPT THE PROPOSED SURFACE USE AND COMPENSATION
27 AGREEMENT WITHIN 45 DAYS OF RECEIPT; OR
28 (2) REJECT THE PROPOSED SURFACE USE AND COMPENSATION
29 AGREEMENT AND ENTER INTO A SURFACE USE AND COMPENSATION
30 AGREEMENT THAT SETS FORTH THE RIGHTS AND OBLIGATIONS OF THE
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1 PARTIES.
2 (E) PRESUMED RECEIPT.--IF CORRECTLY ADDRESSED TO THE RECORD
3 OWNER OF THE SURFACE, NOTICES TO THE SURFACE OWNERS REQUIRED BY
4 THIS ACT SHALL BE DEEMED TO HAVE BEEN RECEIVED 15 DAYS AFTER
5 MAILING BY CERTIFIED MAIL.
6 (F) WAIVER.--A SURFACE USE AND COMPENSATION AGREEMENT MAY
7 NOT WAIVE DAMAGES FOR BREACH OF THE AGREEMENT, OR FOR POLLUTION
8 OF WATER SOURCES OR SUPPLIES, FOR NEGLIGENCE OR FAILURE TO
9 PERFORM TASKS IN A WORKMANLIKE MANNER CONSISTENT WITH BEST
10 PRACTICES IN THE FIELD OF COAL BED METHANE GAS PRODUCTION OR FOR
11 UNFORESEEN DAMAGES.
12 SECTION 7. DISPUTE RESOLUTION.
13 THE NOTIFICATION UNDER SECTION 6 SHALL also include the
14 following statement on a form provided by the department in at
15 least twelve-point print:
16 Right to Participate in Alternative Dispute Resolution
17 You have the right to have your objections to the well
18 operator's proposed location of the well or of the access
19 road associated with the well heard and decided by the
20 three-member Coal Bed Methane Review Board, created under
21 the act of , 2008 (P.L. , No. ), known as
22 the Coal Bed Methane Well Dispute Resolution AND GAS <--
23 DRILLING RIGHTS Act. You may participate with or without
24 a lawyer in any conference session the board may hold to
25 hear your objections.
26 Important: To exercise this right, you must file your
27 objections in writing with the Coal Bed Methane Review
28 Board through the Department of Environmental Protection
29 at:
30 (Address)
20080S1330B2427 - 15 -
1 (City, State, Zip)
2 within fifteen (15) days of the date you received this
3 notification. Otherwise you will be considered to have
4 waived this right to resolve your objections through the
5 Coal Bed Methane Review Board. Your objection may be
6 filed in person or by certified mail.
7 (b) Filing of written objections.--A surface owner who
8 intends to invoke alternative dispute resolution shall file
9 written objections to the well operator's proposed location for
10 coal bed methane well or access road with the board within 15
11 days of the date of receipt of the written notification and plat
12 described in subsection (a). The written objections may indicate
13 an alternative location at which the proposed coal bed methane
14 well could be drilled or the access road could be located to
15 overcome the objections. If no objections are filed in the time
16 prescribed in this subsection, the department shall accept an
17 application from the operator and proceed to issue or deny the
18 permit, provided the department shall not accept a permit
19 application unless the applicant demonstrates that the
20 notification requirements of subsection (a) have been satisfied.
21 (c) Conference.--If objections are filed by a surface owner
22 pursuant to subsection (b), an employee of the department
23 responsible for receiving such objections on behalf of the board
24 shall, within two days, notify the operator and the board of the
25 objections, and the board shall fix a time and place for holding
26 the dispute resolution conference and shall notify the surface
27 owner and well operator of the time and place where the
28 conference will be held. The conference shall be scheduled to
29 commence not more than ten business days from the date of
30 service of the objections on the well operator, provided,
20080S1330B2427 - 16 -
1 however, that if the board cannot be fully convened for a
2 conference within this time, the conference shall be scheduled
3 to commence on the earliest reasonable date in which the board
4 can be fully convened, but no later than 15 business days from
5 the date of the service of the objections on the well operator.
6 For purposes of this section, the term "fully convened" shall
7 mean the participation of all three members of the board. The
8 conference shall be held at the applicable regional or district
9 office of the department closest to the tract which is the
10 subject of the objection. The board may use, and the department
11 shall provide, clerical assistance and the use of regional or
12 district offices for the board in conducting conference
13 sessions.
14 (d) Proceedings.--At the conference the well operator and
15 surface owner or owners as are present or represented shall
16 consider the objections and attempt to agree upon a location for
17 the coal bed methane well or access road. The board may hold
18 more than one conference session. The conference shall be
19 completed within ten business days of the date that the
20 conference is originally commenced. However, the board, in its
21 sole discretion, may extend the time for completion of the
22 conference by an additional five business days, and the parties
23 to the conference may extend the time for completion of the
24 conference to a date mutually agreed upon. Any agreement reached
25 at the conference shall be consistent with the requirements of
26 the Oil and Gas Act and shall be reduced to writing by the board
27 and submitted to the department within ten business days of the
28 date that the conference is completed. Upon receipt of notice
29 that the board's conference resulted in a mutual agreement
30 between the operator and the surface owner, the department shall
20080S1330B2427 - 17 -
1 accept an application with a plat showing the agreed-upon
2 location of the well from the operator and shall proceed to
3 issue or deny the permit. If the parties to the conference
4 before the board fail to agree upon a location of the coal bed
5 methane well or access road or if only the party requesting
6 review participates in the conference, the board shall make a
7 determination in writing establishing a location of the coal bed
8 methane well or access road that, in the judgment of the
9 majority of the board, will cause only those surface impairments
10 that are reasonably necessary for purposes of extracting the
11 underlying coal bed methane. Issuance of the written
12 determination shall be made within ten business days of the date
13 of completion of the conference and shall be served on the date
14 of issuance by certified mail upon the surface owner, the well
15 operator and the department. Failure by the board to issue a <--
16 written determination within the prescribed period of ten
17 business days shall be deemed a final determination by the board
18 to affirm the location of the well or access road proposed by
19 the well operator. Within 15 business days of the date of
20 completion of the conference, the board shall issue a written
21 statement setting forth findings of fact and reasons in support
22 of its determination and shall serve copies of the written
23 statement by certified mail upon the surface owner, the well
24 operator and the department. Failure by the board to issue the
25 written statement of findings of fact and reasons in support of
26 its determination within the prescribed period of 15 business
27 days shall not preclude an aggrieved person from exercising the
28 right of appeal to a court of common pleas as provided under
29 subsection (f). If no appeal of the board's determination is
30 filed under subsection (f), the department shall accept an
20080S1330B2427 - 18 -
1 application with a plat showing the location of the well as
2 determined by the board from the operator and shall proceed to
3 issue or deny the permit.
4 (e) Determination.--Any determination by the board, made
5 pursuant to subsection (d), shall be binding on the department.
6 The board's determination shall not limit or otherwise affect
7 the department's regulatory authority under the Oil and Gas Act,
8 the act of June 22, 1937 (P.L.1987, No.394), known as The Clean
9 Streams Law, or any other applicable law administered by the
10 department.
11 (f) Appeal.--Any person aggrieved by a determination of the
12 board issued under subsection (d) shall have the right, within
13 15 days of receipt of the written or final determination, to
14 appeal the determination to the court of common pleas in the
15 judicial district in which the affected property is located. A
16 copy of the appeal shall be served upon all the parties to the
17 conference. The board or the department shall not be a party to
18 the appeal. The court shall hold a hearing on the appeal within
19 30 days of filing of the appeal and shall render its decision in
20 the appeal within 60 days of filing of the appeal. In any
21 appeal, the only issue to be determined by the court is whether
22 the location of the disputed well or access road, as the case
23 may be, determined by the board, will cause only those surface
24 impairments that are reasonably necessary for purposes of
25 extracting the underlying coal bed methane. If the court agrees
26 that the board's determination meets this standard, it shall
27 affirm the board's determination. If the court determines that
28 the board's determination does not meet this standard, it shall
29 issue an order indicating the location of the disputed well or
30 access road, as the case may be, that, in the opinion of the
20080S1330B2427 - 19 -
1 court, will cause only those surface impairments that are
2 reasonably necessary for purposes of extracting the underlying
3 coal bed methane. Upon issuance of an order by the court, the
4 department shall accept an application from the operator and
5 shall proceed to issue or deny the permit.
6 Section 6. Ordinances and resolutions superseded. <--
7 This act supersedes the ordinances and resolutions of
8 political subdivisions dealing with material regulated by this
9 act.
10 Section 7. Enforcement actions.
11 The provisions of this act shall not be construed to affect,
12 limit or impair any enforcement action taken by the department
13 under the act of December 19, 1984 (P.L.1140, No.223), known as
14 the Oil and Gas Act.
15 Section 8. Other remedies.
16 Nothing in this act precludes a person from seeking other
17 remedies allowed by statute, common law, deed or contract, nor
18 does this act diminish or alter rights previously established or
19 granted by statute, common law, deed or contract.
20 Section 9. Notification.
21 The department shall publish a notice in the Pennsylvania
22 Bulletin when all initial members of the board established in
23 section 4 have been appointed.
24 Section 10. Effective date.
25 This act shall take effect as follows:
26 (1) Section 5 shall take effect upon publication of the
27 initial notice under section 9.
28 (2) The remainder of this act shall take effect
29 immediately.
30 SECTION 8. ENTRY WITHOUT SURFACE USE COMPENSATION AGREEMENT. <--
20080S1330B2427 - 20 -
1 (A) FILING OF APPLICATION.--IF, AFTER 45 DAYS FROM THE DATE
2 ON WHICH A SURFACE OWNER RECEIVES NOTICE PURSUANT TO SECTION
3 6(B), NO SURFACE USE AND COMPENSATION AGREEMENT HAS BEEN
4 EXECUTED BY THE OPERATOR AND SURFACE OWNER, THE OPERATOR MAY
5 FILE APPLICATIONS FOR PERMITS WITH THE DEPARTMENT FOR THE COAL
6 BED METHANE GAS WELLS AND RELATED FACILITIES PROPOSED TO BE
7 LOCATED ON THE SURFACE OWNER'S PROPERTY AFTER DEPOSITING A
8 SURETY, BOND, LETTER OF CREDIT FROM A BANKING INSTITUTION OR
9 CERTIFICATE OF DEPOSIT WITH A PENNSYLVANIA SURETY COMPANY OR
10 FINANCIAL INSTITUTION FOR THE BENEFIT OF A SURFACE OWNER IN THE
11 AMOUNT EQUAL TO 120% OF THE OPERATOR'S BEST COMPENSATION OFFER
12 AS TO EACH COAL BED METHANE GAS PRODUCTION FACILITY'S LOCATION
13 OR AT LEAST $25,000 PER PRODUCTION FACILITY'S LOCATION. THE
14 SURETY BOND LETTER, LETTER OF CREDIT, CASH OR CERTIFICATE OF
15 DEPOSIT SHALL ONLY BE RELEASED BY THE SURETY COMPANY OR
16 FINANCIAL INSTITUTION BACK TO THE OPERATOR IF:
17 (1) THE SURFACE OWNER PROVIDES AN AFFIDAVIT THAT
18 COMPENSATION FOR USE OF OR DAMAGES TO HIS LAND HAVE BEEN PAID
19 IN FULL TO HIM;
20 (2) THE SURFACE OWNER AND THE OPERATOR HAVE EXECUTED A
21 SURFACE USE AND COMPENSATION AGREEMENT OR OTHERWISE AGREED
22 THAT THE SURETY SHOULD BE RELEASED;
23 (3) THERE HAS BEEN A FINAL RESOLUTION OF THE JUDICIAL
24 APPEAL IN ANY ACTION FOR DAMAGES BROUGHT BY THE SURFACE OWNER
25 AND ANY AWARDED DAMAGES HAVE BEEN PAID; OR
26 (4) ALL COAL BED METHANE GAS WELLS ON THE SURFACE
27 OWNER'S LAND HAVE BEEN PLUGGED AND ABANDONED IN ACCORDANCE
28 WITH LAW, ALL PRODUCTION AND SUPPORT FACILITIES HAVE BEEN
29 REMOVED AND THE OPERATOR HAS NOT CONDUCTED OIL OR GAS
30 OPERATIONS ON THE SURFACE OWNER'S PROPERTY FOR A PERIOD OF
20080S1330B2427 - 21 -
1 FOUR YEARS.
2 (B) BLANKET SURETY BOND.--WHEN A COAL BED METHANE GAS WELL
3 OPERATOR PROPOSES TO OPERATE MORE THAN ONE COAL BED METHANE GAS
4 WELL, INSTEAD OF POSTING THE BOND REQUIRED IN SUBSECTION (A),
5 THAT OPERATOR MAY AT THE OPERATOR'S ELECTION POST A BLANKET
6 SURETY BOND, LETTER OF CREDIT FROM A BANKING INSTITUTION OR A
7 CERTIFICATE OF DEPOSIT WITH A PENNSYLVANIA SURETY COMPANY OR
8 FINANCIAL INSTITUTION IN THE SUM OF $500,000 SUBJECT TO THE
9 FOLLOWING CRITERIA:
10 (1) THE SURETY COMPANY OR FINANCIAL INSTITUTION SHALL
11 HOLD THE CORPORATE SURETY BOND, LETTER OF CREDIT OR
12 CERTIFICATE OF DEPOSIT FOR THE BENEFIT OF THE SURFACE OWNER
13 AND SHALL ENSURE THAT SUCH SECURITY IS IN A FORM READILY
14 PAYABLE TO A SURFACE OWNER AWARDED DAMAGES IN AN ACTION
15 BROUGHT PURSUANT TO THIS ACT;
16 (2) THE BOND, LETTER OF CREDIT, CASH OR CERTIFICATE OF
17 DEPOSIT SHALL REMAIN IN FULL FORCE AND EFFECT AS LONG AS THE
18 OPERATOR CONTINUES COAL BED METHANE GAS OPERATIONS IN THIS
19 COMMONWEALTH;
20 (3) THE BOND, LETTER OF CREDIT, CASH OR CERTIFICATE OF
21 DEPOSIT SHALL NOT BE RELEASED UNTIL SIX YEARS AFTER THE
22 OPERATOR HAS DEPOSITED WITH THE SURETY COMPANY OR FINANCIAL
23 INSTITUTION A CERTIFIED STATEMENT FROM THE DEPARTMENT THAT,
24 ACCORDING TO ITS RECORDS, THE OPERATOR IS NOT AN OPERATOR OF
25 RECORD OF ANY WELL IN THIS COMMONWEALTH AND DOES NOT HOLD ANY
26 OUTSTANDING PERMITS TO DRILL COAL BED METHANE GAS WELLS
27 WITHIN THIS COMMONWEALTH; AND
28 (4) IN THE EVENT THAT, PURSUANT TO A JUDGMENT, ALL OR A
29 PORTION OF THE BOND, LETTER OF CREDIT OR CERTIFICATE OF
30 DEPOSIT HAS BEEN USED TO PAY A SURFACE OWNER, THE OPERATOR
20080S1330B2427 - 22 -
1 SHALL IMMEDIATELY POST ADDITIONAL SECURITY SO THAT THE TOTAL
2 AMOUNT POSTED EQUALS $500,000 AND, IF THE OPERATOR DOES NOT
3 POST THE ADDITIONAL SECURITY, THE SURETY OR FINANCIAL
4 INSTITUTION SHALL PUBLISH NOTICE TO THE EFFECT IN A PAPER OF
5 GENERAL CIRCULATION IN EACH COUNTY OF THE STATE IN WHICH COAL
6 BED METHANE GAS IS PRODUCED AND THE DEPARTMENT IS PROHIBITED
7 FROM ISSUING PERMITS TO ANY OPERATOR POSTING A BLANKET SURETY
8 BOND, LETTER OF CREDIT FROM A BANKING INSTITUTION OR
9 CERTIFICATE OF DEPOSIT UNDER SUBSECTION (B) WHERE THE
10 OPERATOR SHALL LET THE AMOUNT OF SECURITY FALL BELOW
11 $500,000.
12 SECTION 9. RESTRICTION ON ISSUANCE OF PERMITS FOR WELLS.
13 THE DEPARTMENT SHALL NOT ISSUE NEW PERMITS OR RENEW EXISTING
14 PERMITS FOR COAL BED METHANE GAS WELLS WHERE THE OPERATOR
15 THEREOF IS NOT COMPLYING WITH THE TERMS OF THIS ACT, BUT MAY DO
16 SO ONCE SUCH AN OPERATOR DEMONSTRATES TO THE DEPARTMENT THAT THE
17 OPERATOR IS AGAIN IN COMPLIANCE WITH THIS ACT.
18 SECTION 10. DAMAGES.
19 (A) CIVIL ACTION.--ANY PERSON HAVING AN INTEREST WHICH IS OR
20 MAY BE ADVERSELY AFFECTED BY ANY VIOLATIONS OF THE PROVISIONS OF
21 THIS ACT MAY COMMENCE A CIVIL ACTION EITHER TO COMPEL COMPLIANCE
22 WITH THE TERMS OF THIS ACT OR TO SEEK DAMAGES FOR ANY INJURY TO
23 THE PROPERTY OF THAT PERSON RESULTING FROM SUCH A BREACH OF THE
24 PROVISIONS OF THIS ACT OR BOTH. ANY OTHER PROVISION OF THE LAW
25 TO THE CONTRARY NOTWITHSTANDING, THE COURTS OF COMMON PLEAS
26 SHALL HAVE JURISDICTION OVER AND VENUE IN SUCH ACTIONS AS SET
27 FORTH IN THE PENNSYLVANIA RULES OF CIVIL PROCEDURE CONCERNING
28 ACTIONS IN ASSUMPSIT.
29 (B) FEES AND COSTS.--IN AN ACTION BROUGHT TO ENFORCE THE
30 PROVISIONS OF THIS ACT OR THE TERMS OF A SURFACE USE AND
20080S1330B2427 - 23 -
1 COMPENSATION AGREEMENT TO THIS ACT, IF A COURT FINDS THAT
2 COMPENSATION IS OWED UNDER SECTION 5, THE COURT MAY ALSO AWARD
3 THE PREVAILING PARTY ATTORNEY FEES AND COSTS IF:
4 (1) THE OPERATOR CONDUCTED OPERATIONS WITHOUT PROVIDING
5 NOTICE AS REQUIRED BY SECTION 6(B);
6 (2) THE OPERATOR CONDUCTED OPERATIONS WITHOUT A SURFACE
7 USE AND COMPENSATION AGREEMENT AND BEFORE EITHER DEPOSITING
8 OR MAINTAINING A BOND OR OTHER SURETY AS REQUIRED BY SECTION
9 8;
10 (3) THE OPERATOR CONDUCTED OPERATIONS OUTSIDE THE SCOPE
11 OF A SURFACE USE AND COMPENSATION AGREEMENT AND, WHEN
12 ENTERING INTO THE AGREEMENT, KNEW OR SHOULD HAVE KNOWN THAT
13 THE OPERATIONS WOULD BE CONDUCTED OUTSIDE THE SCOPE OF THE
14 AGREEMENT; OR
15 (4) THE SURFACE OWNER FAILED TO EXERCISE GOOD FAITH IN
16 COMPLYING WITH THE PROVISIONS OF THIS ACT OR THE TERMS OF A
17 SURFACE USE AND COMPENSATION AGREEMENT.
18 SECTION 11. PROTECTION OF WATER SUPPLIES.
19 (A) OPERATOR.--ANY COAL BED METHANE GAS WELL OPERATOR WHO
20 AFFECTS A PUBLIC OR PRIVATE WATER SUPPLY BY POLLUTION OR
21 DIMINUTION SHALL RESTORE OR REPLACE THE AFFECTED SUPPLY WITH AN
22 ALTERNATE SOURCE OF WATER ADEQUATE IN QUANTITY OR QUALITY FOR
23 THE PURPOSES SERVED BY THE SUPPLY.
24 (B) OWNER OR PURVEYOR.--ANY LANDOWNER OR WATER PURVEYOR
25 SUFFERING POLLUTION OR DIMINUTION OF A WATER SUPPLY AS A RESULT
26 OF THE DRILLING, ALTERATION OR OPERATION OF A COAL BED METHANE
27 GAS WELL MAY SO NOTIFY THE DEPARTMENT AND REQUEST THAT AN
28 INVESTIGATION BE CONDUCTED. WITHIN TEN DAYS OF SUCH
29 NOTIFICATION, THE DEPARTMENT SHALL INVESTIGATE ANY SUCH CLAIM
30 AND SHALL, WITHIN 45 DAYS FOLLOWING NOTIFICATION, MAKE A
20080S1330B2427 - 24 -
1 DETERMINATION. IF THE DEPARTMENT FINDS THAT THE POLLUTION OR
2 DIMINUTION WAS CAUSED BY THE DRILLING, ALTERATION OR OPERATION
3 ACTIVITIES OR IF IT PRESUMES THE WELL OPERATOR RESPONSIBLE FOR
4 POLLUTION PURSUANT TO SUBSECTION (C), THEN IT SHALL ISSUE SUCH
5 ORDERS TO THE WELL OPERATOR AS ARE NECESSARY TO ASSURE
6 COMPLIANCE WITH SUBSECTION (A). SUCH ORDERS MAY INCLUDE ORDERS
7 REQUIRING THE TEMPORARY REPLACEMENT OF A WATER SUPPLY WHERE IT
8 IS DETERMINED THAT THE POLLUTION OR DIMINUTION MAY BE OF LIMITED
9 DURATION.
10 (C) PRESUMPTION.--UNLESS REBUTTED BY ONE OF THE FIVE
11 DEFENSES ESTABLISHED IN SUBSECTION (D), IT SHALL BE PRESUMED
12 THAT A WELL OPERATOR IS RESPONSIBLE FOR THE POLLUTION OF A WATER
13 SUPPLY THAT IS WITHIN 1,000 FEET OF THE COAL BED METHANE GAS
14 WELL WHERE THE POLLUTION OCCURRED WITHIN SIX MONTHS AFTER THE
15 COMPLETION OF DRILLING OR ALTERATION OF SUCH WELL.
16 (D) REBUTTING PRESUMPTION.--IN ORDER TO REBUT THE
17 PRESUMPTION OF LIABILITY ESTABLISHED IN SUBSECTION (C), THE WELL
18 OPERATOR MUST AFFIRMATIVELY PROVE ONE OF THE FOLLOWING FIVE
19 DEFENSES:
20 (1) THE POLLUTION EXISTED PRIOR TO THE DRILLING OR
21 ALTERATION ACTIVITY AS DETERMINED BY A PREDRILLING OR
22 PREALTERATION SURVEY.
23 (2) THE LANDOWNER OR WATER PURVEYOR REFUSED TO ALLOW THE
24 OPERATOR ACCESS TO CONDUCT A PREDRILLING OR PREALTERATION
25 SURVEY.
26 (3) THE WATER SUPPLY IS NOT WITHIN 1,000 FEET OF THE
27 WELL.
28 (4) THE POLLUTION OCCURRED MORE THAN SIX MONTHS AFTER
29 COMPLETION OF DRILLING OR ALTERATION ACTIVITIES.
30 (5) THE POLLUTION OCCURRED AS THE RESULT OF SOME CAUSE
20080S1330B2427 - 25 -
1 OTHER THAN THE DRILLING OR ALTERATION ACTIVITY.
2 (E) CERTIFIED LABORATORY.--ANY OPERATOR ELECTING TO PRESERVE
3 ITS DEFENSES UNDER SUBSECTION (D)(1) OR (2) SHALL RETAIN THE
4 SERVICES OF AN INDEPENDENT CERTIFIED LABORATORY TO CONDUCT THE
5 PREDRILLING OR PREALTERATION SURVEY OF WATER SUPPLIES. A COPY OF
6 THE RESULTS OF ANY SUCH SURVEY SHALL BE SUBMITTED TO THE
7 DEPARTMENT AND THE LANDOWNER OR WATER PURVEYOR IN A MANNER
8 PRESCRIBED BY THE DEPARTMENT.
9 (F) OTHER REMEDIES.--NOTHING IN THIS ACT SHALL PREVENT ANY
10 LANDOWNER OR WATER PURVEYOR WHO CLAIMS POLLUTION OR DIMINUTION
11 OF A WATER SUPPLY FROM SEEKING ANY OTHER REMEDY THAT MAY BE
12 PROVIDED AT LAW OR IN EQUITY.
13 SECTION 12. REMEDIES NOT EXCLUSIVE.
14 THE REMEDIES PROVIDED BY THIS ACT ARE NOT EXCLUSIVE AND DO
15 NOT PRECLUDE A PERSON FROM UTILIZING ANY OTHER REMEDIES ALLOWED
16 BY STATUTE, COMMON LAW, DEED OR CONTRACT.
17 SECTION 13. EMERGENCY SITUATIONS.
18 NOTWITHSTANDING ANY PROVISIONS OF THIS ACT TO THE CONTRARY,
19 NO NOTICE, SURFACE USE AND COMPENSATION AGREEMENT OR BOND SHALL
20 BE REQUIRED IN EMERGENCY SITUATIONS WITH REGARD TO ANY
21 ACTIVITIES WHICH THE DEPARTMENT SHALL ORDER A SURFACE OWNER OR
22 TENANT TO ALLOW THE OPERATOR OR OTHERS TO UNDERTAKE TO PROTECT
23 THE PUBLIC HEALTH AND SAFETY OR THE ENVIRONMENT.
24 SECTION 14. LOCAL REGULATION.
25 NOTHING CONTAINED IN THIS ACT SHALL BE CONSTRUED TO LIMIT OR
26 PREVENT CITIES OF ANY CLASS, TOWNSHIPS OF EITHER CLASS OR
27 BOROUGHS FROM ADOPTING LOCAL ORDINANCES LIMITING HOW AND WHERE
28 COAL BED METHANE WELLS AND THEIR ATTENDANT FACILITIES MAY BE
29 INSTALLED, PURSUANT TO THEIR GOVERNMENTAL POWERS TO PROTECT THE
30 HEALTH, SAFETY AND WELFARE OF LANDOWNERS AND RESIDENTS OF SUCH A
20080S1330B2427 - 26 -
1 MUNICIPALITY OR TO MINIMIZE DAMAGE TO LANDS LOCATED THEREIN.
2 SECTION 15. SEVERABILITY.
3 THE PROVISIONS OF THIS ACT ARE SEVERABLE. IF ANY PROVISION OF
4 THIS ACT OR ITS APPLICATION TO ANY PERSON OR CIRCUMSTANCE IS
5 HELD INVALID, THE INVALIDITY SHALL NOT AFFECT OTHER PROVISIONS
6 OR APPLICATIONS OF THIS ACT WHICH CAN BE GIVEN EFFECT WITHOUT
7 THE INVALID PROVISION OR APPLICATION.
8 SECTION 16. EFFECTIVE DATE.
9 THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
D1L58SFL/20080S1330B2427 - 27 -