Subject: Title 58 - OIL AND GAS
From: <Saved by Windows Internet Explorer 7>
Date: Wed, 21 Mar 2012 07:53:23 -0400

OIL AND GAS

Title 58

58cc

TABLE
OF CONTENTS

TITLE
58

OIL
AND GAS

PART
I.  (RESERVED)

PART
II.  OVERSIGHT AND DEVELOPMENT

Chapter
23.  Unconventional Gas Well Fee

§
2301.  Definitions.

§
2302.  Unconventional gas well fee.

§
2303.  Administration.

§
2304.  Well information.

§
2305.  Duties of department.

§
2306.  (Reserved).

§
2307.  Commission.

§
2308.  Enforcement.

§
2309.  Enforcement orders.

§
2310.  Administrative penalties.

§
2311.  (Reserved).

§
2312.  Recordkeeping.

§
2313.  Examinations.

§
2314.  Distribution of fee.

§
2315.  Statewide initiatives.

§
2316.  Small business participation.

§
2317.  Applicability.

§
2318.  Expiration.

Chapter
25.  Oil and Gas Lease Fund

§
2501.  Definitions.

§
2502.  (Reserved).

§
2503.  (Reserved).

§
2504.  Appropriation of money.

§
2505.  Funds.

Chapter
27.  Natural Gas Energy Development Program

§
2701.  Definitions.

§
2702.  Assistance.

§
2703.  Program.

§
2704.  Expiration.

PART
III.  UTILIZATION

Chapter
31.  (Reserved)

Chapter
32.  Development

Subchapter
A.  Preliminary Provisions

§
3201.  Scope of chapter.

§
3202.  Declaration of purpose of chapter.

§
3203.  Definitions.

Subchapter
B.  General Requirements

§
3211.  Well permits.

§
3212.  Permit objections.

§
3212.1. Comments by municipalities and storage operators.

§
3213.  Well registration and identification.

§
3214.  Inactive status.

§
3215.  Well location restrictions.

§
3216.  Well site restoration.

§
3217.  Protection of fresh groundwater and casing
requirements.

§
3218.  Protection of water supplies.

§
3218.1. Notification to public drinking water systems.

§
3218.2. Containment for unconventional wells.

§
3218.3. Transportation records regarding wastewater fluids.

§
3218.4. Corrosion control requirements.

§
3218.5. Gathering lines.

§
3219.  Use of safety devices.

§
3219.1. Well control emergency response.

§
3220.  Plugging requirements.

§
3221.  Alternative methods.

§
3222.  Well reporting requirements.

§
3222.1. Hydraulic fracturing chemical disclosure requirements.

§
3223.  Notification and effect of well transfer.

§
3224.  Coal operator responsibilities.

§
3225.  Bonding.

§
3226.  Oil and Gas Technical Advisory Board.

§
3227.  Air contaminant emissions.

Subchapter
C.  Underground Gas Storage

§
3231.  Reporting requirements for gas storage operations.

§
3232.  Reporting requirements for coal mining operations.

§
3233.  General gas storage reservoir operations.

§
3234.  Gas storage reservoir operations in coal areas.

§
3235.  Inspection of facilities and records.

§
3236.  Reliance on maps and burden of proof.

§
3237.  Exemptions and prohibitions.

Subchapter
D.  Eminent Domain

§
3241.  Appropriation of interest in real property.

Subchapter
E.  Enforcement and Remedies

§
3251.  Conferences.

§
3252.  Public nuisances.

§
3253.  Enforcement orders.

§
3254.  Restraining violations.

§
3254.1. Well control emergency response cost recovery.

§
3255.  Penalties.

§
3256.  Civil penalties.

§
3257.  Existing rights and remedies preserved and cumulative
remedies authorized.

§
3258.  Inspection and production of materials, witnesses,
depositions and rights of entry.

§
3259.  Unlawful conduct.

§
3260.  Collection of fines and penalties.

§
3261.  Third party liability.

§
3262.  Inspection reports.

Subchapter
F.  Miscellaneous Provisions

§
3271.  Well plugging funds.

§
3272.  (Reserved).

§
3273.  Effect on department authority.

§
3273.1. Relationship to solid waste and surface mining.

§
3274.  Regulations.

Chapter
33.  Local Ordinances Relating to Oil and Gas Operations

§
3301.  Definitions.

§
3302.  Oil and gas operations regulated pursuant to Chapter
32.

§
3303.  Oil and gas operations regulated by environmental
acts.

§
3304.  Uniformity of local ordinances.

§
3305.  Commission.

§
3306.  Civil actions.

§
3307.  Attorney fees and costs.

§
3308.  Ineligibility.

§
3309.  Applicability.

Chapter
35.  Responsibility for Fee

§
3501.  Declaration of policy.

§
3502.  Prohibition.

§
3503.  Existing agreements.

§
3504.  Future agreements.

58c2301h

TITLE
58

OIL
AND GAS

Part

I.
(Reserved)

II.
Oversight and Development

III.
Utilization

Enactment.
Unless otherwise noted, the provisions of Title 58 were added February 14,
2012, P.L.87, No.13, effective in 60 days.

Special
Provisions in Appendix.  See sections 2, 6, 7 and 8 of Act 13 of 2012
in the appendix to this title for special provisions relating to fiscal year
2011-2012 appropriation,  legislative intent, Department of Transportation
statement of policy and pipeline placement for natural gas.

PART I

(Reserved)

Enactment.
Part I was added February 14, 2012, P.L.83, No.13, effective in 60
days.

PART II

OVERSIGHT
AND DEVELOPMENT

Enactment.
Part II was added February 14, 2012, P.L.83, No.13, effective in 60
days.

Chapter

23.
Unconventional Gas Well Fee

25.
Oil and Gas Lease Fund

27.
Natural Gas Energy Development Program

CHAPTER 23

UNCONVENTIONAL
GAS WELL FEE

Sec.

2301.
Definitions.

2302.
Unconventional gas well fee.

2303.
Administration.

2304.
Well information.

2305.
Duties of department.

2306.
(Reserved).

2307.
Commission.

2308.
Enforcement.

2309.
Enforcement orders.

2310.
Administrative penalties.

2311.
(Reserved).

2312.
Recordkeeping.

2313.
Examinations.

2314.
Distribution of fee.

2315.
Statewide initiatives.

2316.
Small business participation.

2317.
Applicability.

2318.
Expiration.

Enactment.
Chapter 23 was added February 14, 2012, P.L.83, No.13, effective
immediately.

Special
Provisions in Appendix.  See section 5 of Act 13 of 2012 in the
appendix to this title for special provisions relating to application of
law.

Cross
References.  Chapter 23 is referred to in sections 2703, 3308, 3502 of
this title.

58c2301s

§
2301.  Definitions.

The
following words and phrases when used in this chapter shall have the meanings
given to them in this section unless the context clearly indicates
otherwise:

"Average
annual price of natural gas."  The arithmetic mean of the New York
Mercantile Exchange (NYMEX) settled price for the near-month contract, as
reported by the Wall Street Journal for the last trading day of each month of a
calendar year for the 12-month period ending December 31.

"Company."
An entity doing business within this Commonwealth and subject to tax under
Article III, IV or VI of the act of March 4, 1971 (P.L.6, No.2), known as the
Tax Reform Code of 1971.

"Commission."
The Pennsylvania Public Utility Commission.

"Department."
The Department of Environmental Protection of the Commonwealth.

"Eligible
applicant."  Any of the following:

(1)
A  county, municipality, council of governments, watershed
organization, institution of higher education or nonprofit organization.

(2)
An authorized organization as defined in 27 Pa.C.S. § 6103 (relating to
definitions).

(3)
A company, other than a producer.

"Fee."
The unconventional gas well fee imposed under section 2302 (relating to
unconventional gas well fee).

"Fund."
The Unconventional Gas Well Fund.

"Highway
mileage."  The number of miles of public roads and streets most
recently certified by the Department of Transportation as eligible for
distribution of liquid fuels funds under the act of June 1, 1956 (1955 P.L.1944,
No.655), referred to as the Liquid Fuels Tax Municipal Allocation Law.

"Municipality."
A borough, city, town or township.

"Natural
gas."  A fossil fuel consisting of a mixture of hydrocarbon gases,
primarily methane, and possibly including ethane, propane, butane, pentane,
carbon dioxide, oxygen, nitrogen and hydrogen sulfide and other gas species. The
term includes natural gas from oil fields known as associated gas or casing head
gas, natural gas fields known as nonassociated gas, coal beds, shale beds and
other formations. The term does not include coal bed methane.

"Number
of spud unconventional gas wells."  The most recent numerical count of
spud unconventional gas wells on the inventory maintained and provided to the
commission by the department as of the last day of each month.

"Population."
As follows:

(1)
Population of the Commonwealth and population of a county shall be
determined using the United States Census Bureau's most recently released Annual
Estimates of the Resident Population for Counties of Pennsylvania.

(2)
Population of a municipality shall be determined using the United States
Census Bureau's most recently released Annual Estimates for the Resident
Population for Incorporated Places in Pennsylvania.

(3)
Population of municipalities not included in the report referenced under
paragraph (2) shall be determined using the United States Census Bureau's most
recently released Annual Estimates of the Resident Population for Minor Civil
Divisions in Pennsylvania.

"Producer."
A person or its subsidiary, affiliate or holding company that holds a
permit or other authorization to engage in the business of severing natural gas
for sale, profit or commercial use from an unconventional gas well in this
Commonwealth. The term shall not include a producer that severs natural gas from
a site used to store natural gas that did not originate from the site.

"Spud."
The actual start of drilling of an unconventional gas well.

"Stripper
well."  An unconventional gas well incapable of producing more than
90,000 cubic feet of gas per day during any calendar month, including production
from all zones and multilateral well bores at a single well, without regard to
whether the production is separately metered.

"Unconventional
formation."  A geological shale formation existing below the base of
the Elk Sandstone or its geologic equivalent stratigraphic interval where
natural gas generally cannot be produced at economic flow rates or in economic
volumes except by vertical or horizontal well bores stimulated by hydraulic
fracture treatments or by using multilateral well bores or other techniques to
expose more of the formation to the well bore.

"Unconventional
gas well."  A bore hole drilled or being drilled for the purpose of or
to be used for the production of natural gas from an unconventional
formation.

"Vertical
gas well."  An unconventional gas well which utilizes hydraulic
fracture treatment through a single vertical well bore and produces natural gas
in quantities greater than that of a stripper well.

58c2302s

§
2302.  Unconventional gas well fee.

(a)
General rule.--The governing body of a county that has a spud
unconventional gas well located within its borders may elect whether to impose a
fee on unconventional gas wells that have been spud in the county.

(a.1)
Passage of ordinance.--Within 60 days after the effective date of this
section, the governing body of a county under subsection (a) may adopt an
ordinance to impose an unconventional gas well fee. The governing body of a
county must notify the commission and give public notice of its intent to adopt
the ordinance.

(a.2)
County ordinance.--The ordinance imposing a fee under subsection (a.1)
shall be clear and in language that is readily understandable by a layperson and
shall be in the following form:

The
county of (insert name) hereby imposes an unconventional gas well fee on each
unconventional gas well spud in this county.

(a.3)
Prohibition.--

(1)
A county subject to this section, in which the governing body does not
adopt an ordinance imposing an unconventional gas well fee within 60 days of the
effective date of this section, shall be prohibited from receiving funds under
sections 2314(d)(1) (relating to distribution of fee) and 2315(a.1)(3) and (5)
(relating to Statewide initiatives).

(2)
The prohibition on receiving funds shall remain in effect until the county
adopts an ordinance imposing an unconventional gas well fee. The prohibition
shall expire and funds may be received for the calendar year following the
adoption of an ordinance imposing the fee under this section.

(a.4)
Alternate imposition.--

(1)
If the governing body of a county does not impose an unconventional gas
well fee under subsection (a), the municipalities in the county may compel the
imposition of an unconventional gas well fee on each unconventional gas well
spud in the county by adopting resolutions under paragraphs (2), (3) and
(4).

(2)
Following 60 days but not more than 120 days after the effective date of
this section, if the governing bodies of at least half of the municipalities
located in a county or municipalities representing at least 50% of the
population of the county adopt resolutions to impose unconventional gas well
fees on all unconventional gas wells spud in the county, the fee shall take
effect. If a resolution is adopted, a copy of the resolution shall be
transmitted to the governing body of the county and the commission. The
governing body of a municipality that is located in more than one county shall
transmit a copy of a resolution adopted under this paragraph to the governing
body of each county in which the municipality is located.

(3)
The transmittal of resolutions by governing bodies under paragraph (2)
shall constitute an imposition of the fee in that county. The population of a
municipality that is located in more than one county shall be determined
separately for each county on the basis of the municipality's population within
each county.

(4)
Resolutions adopted under this subsection must be framed in the following
form:

The
(insert name) in the county of (insert name) hereby resolves to have the county
impose an unconventional gas well fee on each unconventional gas well spud in
the county.

(5)
A municipality which is located in a county that does not adopt an
ordinance imposing an unconventional gas well fee and which does not adopt a
resolution under paragraphs (2), (3) and (4) shall be prohibited from receiving
funds under section 2314(d).

(b)
Components.--The fee adopted under subsection (a), (a.1) or (a.4) is
imposed on every producer and shall apply to unconventional gas wells spud in
this Commonwealth regardless of when spudding occurred. Unconventional gas wells
spud before  the fee is imposed shall be considered to be spud in the
calendar year prior to the imposition of the fee for purposes of determining the
fee under this subsection. Prior to adjustment under subsection (c), the fee for
each unconventional gas well shall be determined as follows:

(1)
Year one:

(i)
If the average annual price of natural gas is not more than $2.25, the fee
shall be $40,000 for the calendar year in which the unconventional gas well is
spud.

(ii)
If the average annual price of natural gas is  greater than $2.25 and
less than $3.00, the fee shall be $45,000 for the calendar year in which the
unconventional gas well is spud.

(iii)
If the average annual price of natural gas is  greater than $2.99 and
less than $5.00, the fee shall be $50,000 for the calendar year in which the
unconventional gas well is spud.

(iv)
If the average annual price of natural gas is  greater than $4.99 and
less than $6.00, the fee shall be $55,000 for the calendar year in which the
unconventional gas well is spud.

(v)
If the average annual price of natural gas is   more than $5.99,
the fee shall be $60,000 for the calendar year in which the unconventional gas
well is spud.

(2)
Year two:

(i)
If the average annual price of natural gas is not more than $2.25, the fee
shall be $30,000 for the calendar year following the year in which the
unconventional gas well is spud.

(ii)
If the average annual price of natural gas is  greater than $2.25 and
less than $3.00, the fee shall be $35,000 for the calendar year following the
year in which the unconventional gas well is spud.

(iii)
If the average annual price of natural gas is  greater than $2.99 and
less than $5.00, the fee shall be $40,000 for the calendar year following the
year in which the unconventional gas well is spud.

(iv)
If the average annual price of natural gas is  greater than $4.99 and
less than $6.00, the fee shall be $45,000 for the calendar year following the
year in which the unconventional gas well is spud.

(v)
If the average annual price of natural gas is  more than $5.99, the
fee shall be $55,000 for the calendar year following the year in which the
unconventional gas well is spud.

(3)
Year three:

(i)
If the average annual price of natural gas is not more than $2.25, the fee
shall be $25,000 for the second calendar year following the year in which the
unconventional gas well is spud.

(ii)
If the average annual price of natural gas is  greater than $2.25 and
less than $3.00, the fee shall be $30,000 for the second calendar year following
the year in which the unconventional gas well is spud.

(iii)
If the average annual price of natural gas is  greater than $2.99 and
less than $5.00, the fee shall be $30,000 for the second calendar year following
the year in which the unconventional gas well is spud.

(iv)
If the average annual price of natural gas is  greater than $4.99 and
less than $6.00, the fee shall be $40,000 for the second calendar year following
the year in which the unconventional gas well is spud.

(v)
If the average annual price of natural gas is more than $5.99, the fee
shall be $50,000 for the second calendar year following the year in which the
unconventional gas well is spud.

(4)
Years 4, 5, 6, 7, 8, 9 and 10:

(i)
If the average annual price of natural gas is not more than $2.25, the fee
shall be $10,000 for the third through ninth calendar years following the year
in which the unconventional gas well is spud.

(ii)
If the average annual price of natural gas is  greater than $2.25 and
less than $3.00, the fee shall be $15,000 for the third through ninth calendar
years following the year in which the unconventional gas well is spud.

(iii)
If the average annual price of natural gas is  greater than $2.99,
the fee shall be $20,000 for the third through ninth calendar years following
the year in which the unconventional gas well is spud.

(5)
Years 11, 12, 13, 14 and 15:

(i)
If the average annual price of natural gas is less than $3.00, the fee
shall be $5,000 for the 10th through 14th calendar years following the year in
which the unconventional well is spud.

(ii)
If the average annual price of natural gas is greater than $2.99, the fee
shall be $10,000 for the 10th through 14th calendar years following the year in
which the unconventional well is spud.

(6)
For purposes of this subsection, the fee shall be determined using the
average annual price of natural gas for the calendar year in which the fee is
imposed.

(b.1)
Nonproducing unconventional gas wells.--If a spud unconventional gas
well begins paying the fee imposed under this section and is subsequently capped
or does not produce natural gas in quantities greater than that of a stripper
well within two years after paying the initial fee, then the fee shall be
suspended:

(1)
The fee shall be reinstated for a calendar year during which the
unconventional gas well produces natural gas in quantities greater than that of
a stripper well.

(2)
Each calendar year during which a fee is suspended shall not be considered
a calendar year following spud for purposes of determining the amount of the fee
under subsection (b).

(c)
Annual adjustment.--Beginning January 1, 2013, the commission shall
annually adjust the fee amounts under subsection (b) to reflect any upward
changes in the Consumer Price Index for all Urban Consumers for the
Pennsylvania, New Jersey, Delaware and Maryland area in the preceding 12 months
and shall immediately submit the adjusted fee amount to the Legislative
Reference Bureau for publication as a notice in the Pennsylvania Bulletin. The
fee shall be adjusted by multiplying the annual fee amount by any percentage
increase to the Consumer Price Index for all Urban Consumers for the
Pennsylvania, New Jersey, Delaware and Maryland area, rounded to the nearest
$100. The resultant product shall be added to the fee amount, and the sum shall
become the new annual fee amount under subsection (b). The annual adjustment
under this subsection shall take effect if the total number of unconventional
gas wells spud in the adjustment year exceeds the total number of unconventional
gas wells spud in the prior year.

(d)
Restimulated unconventional gas wells.--

(1)
An unconventional gas well which after restimulation qualifies as a
stripper well shall not be subject to this subsection.

(2)
The year in which the restimulation occurs shall be considered the first
year of spudding for purposes of imposing the fee under this section if:

(i)
a producer restimulates a previously stimulated unconventional gas well
following the tenth year after being spud by:

(A)
hydraulic fracture treatments;

(B)
using additional multilateral well bores;

(C)
drilling deeper into an unconventional formation; or

(D)
other techniques to expose more of the formation to the well bore; and

(ii)
the restimulation results in a substantial increase in production.

(3)
As used in this subsection, the term "substantial increase in production"
means an increase in production amounting to more than 90,000 cubic feet of gas
per day during a calendar month.

(e)
Cessation.--Payments of the fee shall cease upon certification to the
department by the producer that the unconventional gas well has ceased
production and has been plugged according to the regulations established by the
department.

(f)
Vertical unconventional gas well fee.--The fee for a vertical
unconventional gas well shall be 20% of the fee established in subsections (b)
and (c), except that the fee under subsection (b)(5) shall not apply.

58c2302v

Cross
References.  Section 2302 is referred to in sections 2301, 2305, 2308,
2314  of this title.

58c2303s

§
2303.  Administration.

(a)
Fee due date.--

(1)
Except as provided under paragraph (2), the fee imposed under this chapter
shall be due by April 1, 2013, and each April 1 thereafter. The fee shall become
delinquent if not remitted to the commission on the reporting date.

(2)
For wells spud before January 1, 2012, a fee imposed under this chapter
shall be due by September 1, 2012.

(b)
Report.--By September 1, 2012, and April 1 of each year thereafter,
each producer shall submit payment of the fee to the commission and a report on
a form prescribed by the commission for the previous calendar year. The report
shall include the following:

(1)
The number of spud unconventional gas wells of a producer in each
municipality within each county that has imposed a fee under this chapter.

(2)
The date that each unconventional gas well identified under paragraph (1)
was spud or ceased the production of natural gas.

(c)
Costs of commission.--

(1)
The commission may impose an annual administrative charge not to exceed
$50 per spud unconventional gas well on each producer, to be paid with the
submission under subsection (a), to pay for the actual costs of the commission
to administer and enforce this chapter.

(2)
Within 30 days of the effective date of this subsection, the commission
shall estimate its expenditures through June 30, 2012, that will be directly
attributable to the administration and enforcement of this chapter. The
commission shall subtract the amount of the administrative charges imposed under
paragraph (1) and assess any remaining balance on all producers subject to the
administrative charge in proportion to the number of wells owned by each
producer. Producers shall pay the assessments within 30 days of receipt of
notice from the commission. The amount of the assessment may be challenged by a
producer consistent with 66 Pa.C.S. § 510(c), (d) and (e) (relating to
assessment for regulatory expenses upon public utilities). Any collections that
exceed any of the following shall be used to offset the administrative charges
or other funds received for fiscal year 2012-2013:

(i)
The budget amount approved by the General Assembly and the Governor for
administration and enforcement of this chapter and Chapter 33 (relating to local
ordinances relating to oil and gas operations).

(ii)
The actual expenditures directly attributable to the administration and
enforcement of this chapter and Chapter 33.

(3)
By June 30, 2012, and each June 30 thereafter, the commission shall
estimate its expenditures for the next fiscal year that will be directly
attributable to the administration and enforcement of this chapter. After
subtracting any annual administrative charges imposed under paragraph (1),
amounts received by the commission under section 2314(c.1)(2) (relating to
distribution of fee) and any amounts collected during the prior fiscal year that
exceeded actual expenditures directly attributable to the administration and
enforcement of this chapter, the commission shall assess the remaining balance
on all producers subject to the unconventional gas well fee in proportion to the
number of wells owned by each producer. Producers shall pay the assessments
within 30 days of the receipt of notice from the commission. The amount of the
assessment may be challenged by a producer consistent with 66 Pa.C.S. § 510(c),
(d) and (e). Any collections that exceed any of the following shall be used to
offset administrative charges or assessments for the next fiscal year:

(i)
The budget amount approved by the General Assembly and the Governor for
administration and enforcement of this chapter and Chapter 33.

(ii)
Actual expenditures directly attributable to the administration and
enforcement of this chapter and Chapter 33.

58c2303v

Cross
References.  Section 2303 is referred to in sections 2307, 3211
of this title.

58c2304s

§
2304.  Well information.

(a)
List.--Within 14 days of the effective date of this section, the
department shall provide the commission and, upon request, a county, with a list
of all spud unconventional gas wells from the department. The department shall
update the list and provide it to the commission on a monthly basis.

(b)
Updates.--A producer subject to the fee shall notify the commission of
the following within 30 days after a calendar month in which the change
occurs:

(1)
The spudding of an unconventional gas well.

(1.1)
The initiation of production at an unconventional gas well.

(2)
The removal of an unconventional gas well from production.

58c2305s

§
2305.  Duties of department.

(a)
Confirmation of payment.--Prior to issuing a permit to drill an
unconventional gas well in this Commonwealth, the department shall determine
whether the producer has paid all fees owed for an existing unconventional gas
well under section 2302 (relating to unconventional gas well fee).

(b)
Prohibition.--The department shall not issue a permit to drill an
unconventional gas well until all unconventional gas well fees owed under
section 2302 that are not in dispute have been paid to the commission.

(c)
Payment of fees.--The commission shall provide the department with
information necessary to determine that the producer has paid all unconventional
gas well fees owed for an unconventional gas well under section 2302.

58c2306s

§
2306.  (Reserved).

58c2307s

§
2307.  Commission.

(a)
Powers.--The commission shall have the authority to make all inquiries
and determinations necessary to calculate and collect the fee, administrative
charges or assessments imposed under this chapter, including, if applicable,
interest and penalties.

(b)
Notice.--If the commission determines that the unconventional gas well
fee has not been paid in full, it may issue a notice of the amount due and
demand for payment and shall set forth the basis for the determination.

(c)
Address.--Notice of failure to pay the correct fee shall be sent to
the producer via certified mail.

(d)
Time period.--Except as set forth in subsection (e), the commission
may challenge the amount of a fee paid within three years after the date the
report under section 2303(b) (relating to administration) is filed.

(e)
Intent.--If no report is filed or a producer files a false or
fraudulent report with the intent to evade the fee, an assessment of the amount
owed may be made at any time.

58c2307v

Cross
References.  Section 2307 is referred to in section 2308 of this
title.

58c2308s

§
2308.  Enforcement.

(a)
Assessment.--The commission shall assess interest on any delinquent
fee at the rate determined under section 2307(a) (relating to commission).

(b)
Penalty.--In addition to the assessed interest under subsection (a),
if a producer fails to make timely payment of the fee, there shall be added to
the amount of the fee due a penalty of 5% of the amount of the fee if failure to
file a timely payment is for not more than one month, with an additional 5%
penalty for each additional month, or fraction of a month, during which the
failure continues, not to exceed 25% in the aggregate.

(c)
Timely payment.--If the commission determines that a producer has not
made a timely payment of the fee, the commission shall send written notice of
the amount of the deficiency to the producer within 30 days from the date of
determining the deficiency. The commission shall notify the department of a
producer that has failed to pay the fee for any unconventional gas well under
section 2302 (relating to unconventional gas well fee). If the producer does not
have a pending appeal related to payment of the fee in process, the department
shall suspend the permit for that well until the fee has been paid.

(d)
Remedies.--The remedies provided under this chapter are in addition to
any other remedies provided by law or in equity.

(e)
Lien.--Fines, fees, interest and penalties shall be collectible as
authorized by law for the collection of debts. If the producer liable to pay an
amount neglects or refuses to pay the amount after demand, the amount, together
with costs, shall be a judgment in favor of the Commonwealth upon the property
of the producer, but only after the judgment has been entered, docketed and
recorded by the prothonotary of the county where the property is situated. The
Commonwealth shall transmit to the prothonotaries of the respective counties
certified copies of the judgments. Each prothonotary shall enter, docket and
record the record in the prothonotary's office and index each judgment, without
requiring the payment of costs as a condition precedent to the entry of the
judgment.

58c2309s

§
2309.  Enforcement orders.

(a)
Issuance.--The commission may issue an order as necessary to enforce
this chapter. An order issued under this section shall take effect upon notice,
unless the order specifies otherwise. A person aggrieved by an order under this
section may appeal to Commonwealth Court under 42 Pa.C.S. § 763 (relating to
direct appeals from government agencies).

(b)
Compliance.--A producer has the duty to comply with an order issued
under subsection (a). If a producer fails to proceed diligently to comply with
an order within the time required, the producer shall be guilty of contempt and
shall be punished by the court in an appropriate manner. The commission shall
apply to Commonwealth Court, which shall have jurisdiction over matters relating
to contempt.

58c2310s

§
2310.  Administrative penalties.

(a)
Civil penalties.--In addition to any other proceeding authorized by
law, the commission may assess a civil penalty not to exceed $2,500 per
violation upon a producer for the violation of this chapter. In determining the
amount of the penalty, the commission shall consider the willfulness of the
violation and other relevant factors.

(b)
Separate offense.--Each violation for each separate day and each
violation of this chapter shall constitute a separate offense.

(c)
Limitation of actions.--Notwithstanding any limitation in 42 Pa.C.S.
Ch. 55 Subch. B (relating to civil actions and proceedings), an action under
this section must be brought within three years of the violation.

(d)
Procedure.--A penalty under this chapter is subject to 66 Pa.C.S. Ch.
3 Subch. B (relating to investigations and hearings).

58c2311s

§
2311.  (Reserved).

58c2312s

§
2312.  Recordkeeping.

A
producer liable for the fee under this chapter shall keep records, make reports
and comply with regulations of the commission. The commission may require a
producer to make reports, render statements or keep records as the commission
deems sufficient to determine liability for the fee.

58c2313s

§
2313.  Examinations.

(a)
Access.--The commission or its authorized agents or representatives
shall:

(1)
Have access to the relevant books, papers and records of any producer in
order to verify the accuracy and completeness of a report filed or fee paid
under this chapter.

(2)
Require the preservation of all relevant books, papers and records for an
appropriate period not to exceed three years from the end of the calendar year
to which the records relate.

(3)
Examine any employee of a producer under oath concerning the severing of
natural gas subject to a fee or any matter relating to the enforcement of this
chapter.

(4)
Compel the production of relevant books, papers and records and the
attendance of all individuals who the commission believes to have knowledge of
relevant matters in accordance with 66 Pa.C.S. (relating to public
utilities).

(b)
Unauthorized disclosure.--Any information obtained by the commission
as a result of any report, examination, investigation or hearing under this
chapter shall be confidential and shall not be disclosed, except for official
purposes, in accordance with judicial order or as otherwise provided by law. A
commissioner or an employee of the commission who without authorization divulges
confidential information shall be subject to disciplinary action by the
commission.

58c2314s

§
2314.  Distribution of fee.

(a)
Establishment.--There is established a fund in the State Treasury to
be known as the Unconventional Gas Well Fund to be administered by the
commission.

(b)
Deposit.--All fees imposed and collected under this chapter shall be
deposited into the fund and are hereby appropriated for the purpose set forth in
this section.

(c)
Conservation districts.--

(1)
From fees collected for 2011, $2,500,000 from the fund shall be
distributed to county conservation districts.

(2)
From fees collected for 2012, $5,000,000 from the fund shall be
distributed to county conservation districts.

(3)
From fees collected for 2013, and each year thereafter, $7,500,000 from
the fund shall be distributed to county conservation districts.

(4)
Beginning July 1, 2014, each July 1 thereafter, the amount distributed
under paragraph (3) shall be increased by any percentage increase in the
Consumer Price Index for All Urban Consumers for the most recent 12-month period
for which figures have been officially reported by the Bureau of Labor
Statistics immediately prior to July 1.

(5)
Funds under paragraphs (1), (2) and (3) shall be distributed in accordance
with the following:

(i)
One-half shall be distributed by dividing the amount equally among
conservation districts for any use consistent with the act of May 15, 1945
(P.L.547, No.217), known as the Conservation District Law.

(ii)
One-half shall be distributed by the State Conservation Commission in a
manner consistent with the Conservation District Law and the provisions of the
State Conservation Commission's Conservation District Fund Allocation
Program-Statement of Policy under 25 Pa. Code Ch. 83 Subch. B (relating to
Conservation District Fund Allocation Program-Statement of Policy).

(c.1)
Additional distributions.--From fees collected under this chapter and
deposited in the fund for 2011 and each year thereafter:

(1)
One million dollars shall be distributed to the Pennsylvania Fish and Boat
Commission for costs relating to the review of applications for permits to drill
unconventional gas wells.

(2)
One million dollars shall be distributed to the commission for costs to
administer this chapter and Chapter 33 (relating to local ordinances relating to
oil and gas operations).

(3)
Six million dollars to the department for the administration of this act
and the enforcement of acts relating to clean air and clean water.

(4)
Seven hundred fifty thousand dollars to the Pennsylvania Emergency
Management Agency for emergency response planning, training and coordination
related to natural gas production from unconventional gas wells.

(5)
Seven hundred fifty thousand dollars to the Office of State Fire
Commissioner for the development, delivery and sustainment of training and grant
programs for first responders and the acquisition of specialized equipment for
response to emergencies relating to natural gas production from unconventional
gas wells.

(6)
One million dollars to the Department of Transportation for rail freight
assistance.

(c.2)
Natural gas energy development.--Following distributions from the fund
under subsections (c) and (c.1), the following amounts shall be deposited into
the Marcellus Legacy Fund for distribution to the department for the Natural Gas
Energy Development Program under Chapter 27 (relating to Natural Gas Energy
Development Program):

(1)
For 2011, $10,000,000.

(2)
For 2012, $7,500,000.

(3)
For 2013, $2,500,000.

(c.3)
Report.--All agencies or organizations receiving funds under
subsections (c), (c.1) and (c.2) shall submit a report by December 31, 2012, and
December 31 of each year thereafter to the Secretary of the Budget and the
Appropriations Committee of the Senate and the Appropriations Committee of the
House of Representatives. The report shall include an itemization and
explanation of the use of all funds received under subsections (c), (c.1) and
(c.2).

(d)
Distribution.--Except as provided in section 2302(a.3) and (a.4)
(relating to unconventional gas well fee), following fee distribution under
subsections (c), (c.1) and (c.2), from fees collected for 2011 and each year
thereafter, 60% of the revenue remaining in the fund from fees collected for the
prior year are hereby appropriated to counties and municipalities for purposes
authorized under subsection (g). Counties and municipalities are encouraged,
where appropriate, to jointly fund projects that cross jurisdictional lines. The
commission, after making a disbursement under subsection (f), shall distribute
the remaining funds appropriated as follows within three months after the date
the fee is due:

(1)
Except as provided in section 2302(a.3), 36% shall be distributed to
counties in which spud unconventional gas wells are located. The amount for each
county to which funds will be distributed shall be determined using a formula
that divides the number of spud unconventional gas wells in the county by the
number of spud unconventional gas wells in this Commonwealth and multiplies the
resulting percentage by the amount available for distribution under this
paragraph.

(2)
Except as provided in section 2302(a.4), 37% shall be distributed to
municipalities in which spud unconventional gas wells are located. The amount
for each municipality to which funds will be distributed shall be determined
using a formula that divides the number of spud unconventional gas wells in the
municipality by the number of spud unconventional gas wells in this Commonwealth
and multiplies the resulting percentage by the amount available for distribution
under this paragraph.

(3)
Except as provided in section 2302(a.4), 27% shall be distributed to
municipalities located in a county in which spud unconventional gas wells are
located. The amount available for distribution in each county shall be
determined by dividing the number of spud unconventional gas wells in the county
by the number of spud unconventional gas wells in this Commonwealth and
multiplying the resulting percentage by the amount available for distribution
under this paragraph. The resulting amount available for distribution in each
county in which spud unconventional gas wells are located shall be distributed
to each municipality in the county to which funds will be distributed as
follows:

(i)
Except as provided in section 2302(a.4), 50% of the amount available under
this paragraph shall be distributed to municipalities in which spud
unconventional gas wells are located and to municipalities that are either
contiguous with a municipality in which spud unconventional gas wells are
located or are located within five linear miles of a spud unconventional gas
well. The distribution shall be made as follows:

(A)
One-half shall be distributed to each municipality using a formula that
divides the population of the eligible municipality within the county by the
total population of all eligible municipalities within the county and multiplies
the resulting percentage by the amount allocated to the county under this
subparagraph.

(B)
One-half shall be distributed to each municipality using a formula that
divides the highway mileage of the eligible municipality within the county by
the total highway mileage of all eligible municipalities within the county and
multiplies the resulting percentage by the amount allocated to the county under
this subparagraph.

(ii)
Except as provided in section 2302(a.4), 50% of the amount available under
this paragraph shall be distributed to each municipality in the county
regardless of whether an unconventional gas well is located in the municipality
as follows:

(A)
One-half shall be distributed to each municipality using a formula that
divides the population of the municipality within the county by the total
population of the county and multiplies the resulting percentage by the amount
allocated to the county under this subparagraph.

(B)
One-half shall be distributed to each municipality using a formula that
divides the highway mileage of the municipality within the county by the total
highway mileage of the county and multiplies the resulting percentage by the
amount allocated to the county under this subparagraph.

(e)
Restriction.--The amount allocated to each municipality under
subsection (d) shall not exceed the greater of $500,000 or 50% of the total
budget for the prior fiscal year beginning with the 2010 budget year and
continuing every year thereafter, adjusted to reflect any upward changes in the
Consumer Price Index for all Urban Consumers for the Pennsylvania, New Jersey,
Delaware and Maryland area in the preceding 12 months. Any remaining money shall
be retained by the commission and deposited in the Housing Affordability and
Rehabilitation Enhancement Fund for the uses specified under subsection (f).

(f)
Housing Affordability and Rehabilitation Enhancement Fund.--

(1)
From fees collected for 2011, $2,500,000 from the fund shall be
distributed to the Housing Affordability and Rehabilitation Enhancement Fund
under the act of November 23, 2010 (P.L.1035, No.105), entitled "An act amending
the act of December 3, 1959 (P.L.1688, No.621), entitled, as amended, 'An act to
promote the health, safety and welfare of the people of the Commonwealth by
broadening the market for housing for persons and families of low and moderate
income and alleviating shortages thereof, and by assisting in the provision of
housing for elderly persons through the creation of the Pennsylvania Housing
Finance Agency as a public corporation and government instrumentality; providing
for the organization, membership and administration of the agency, prescribing
its general powers and duties and the manner in which its funds are kept and
audited, empowering the agency to make housing loans to qualified mortgagors
upon the security of insured and uninsured mortgages, defining qualified
mortgagors and providing for priorities among tenants in certain instances,
prescribing interest rates and other terms of housing loans, permitting the
agency to acquire real or personal property, permitting the agency to make
agreements with financial institutions and Federal agencies, providing for the
purchase by persons of low and moderate income of housing units, and approving
the sale of housing units, permitting the agency to sell housing loans,
providing for the promulgation of regulations and forms by the agency,
prescribing penalties for furnishing false information, empowering the agency to
borrow money upon its own credit by the issuance and sale of bonds and notes and
by giving security therefor, permitting the refunding, redemption and purchase
of such obligations by the agency, prescribing remedies of holders of such bonds
and notes, exempting bonds and notes of the agency, the income therefrom, and
the income and revenues of the agency from taxation, except transfer, death and
gift taxes; making such bonds and notes legal investments for certain purposes;
and indicating how the act shall become effective,' providing for the
Pennsylvania Housing Affordability and Rehabilitation Enhancement Program; and
establishing the Housing Affordability and Rehabilitation Enhancement Fund."
From fees collected for 2012, and each year thereafter, $5,000,000 shall be
annually distributed to the Housing Affordability and Rehabilitation Enhancement
Fund.

(2)
Funds under paragraph (1) shall be used for the following purposes:

(i)
To provide support to projects in a county in which producing
unconventional gas wells are located that increase availability of quality,
safe, affordable housing for low-income and moderate-income individuals or
families, persons with disabilities or elderly persons.

(ii)
To provide rental assistance in a county in which producing unconventional
gas wells are located to persons or families whose household income does not
exceed the area median income.

(3)
No less than 50% of the funds available under this subsection shall be
used in fifth, sixth, seventh and eighth class counties.

(g)
Use of funds.--A county or municipality receiving funds under
subsection (d) shall use the funds received only for the following purposes
associated with natural gas production from unconventional gas wells within the
county or municipality:

(1)
Construction, reconstruction, maintenance and repair of roadways, bridges
and public infrastructure.

(2)
Water, storm water and sewer systems, including construction,
reconstruction, maintenance and repair.

(3)
Emergency preparedness and public safety, including law enforcement and
fire services, hazardous material response, 911, equipment acquisition and other
services.

(4)
Environmental programs, including trails, parks and recreation, open
space, flood plain management, conservation districts and agricultural
preservation.

(5)
Preservation and reclamation of surface and subsurface waters and water
supplies.

(6)
Tax reductions, including homestead exclusions.

(7)
Projects to increase the availability of safe and affordable housing to
residents.

(8)
Records management, geographic information systems and information
technology.

(9)
The delivery of social services.

(10)
Judicial services.

(11)
For deposit into the county or municipality's capital reserve fund if the
funds are used solely for a purpose set forth in this subsection.

(12)
Career and technical centers for training of workers in the oil and gas
industry.

(13)
Local or regional planning initiatives under the act of July 31, 1968
(P.L.805, No.247), known as the Pennsylvania Municipalities Planning Code.

(h)
Reporting.--

(1)
The commission shall submit an annual report on all funds in the fund. The
report shall include a detailed listing of all deposits and expenditures of the
fund and be submitted to the chairman and the minority chairman of the
Appropriations Committee of the Senate, the chairman and the minority chairman
of the Environmental Resources and Energy Committee of the Senate, the chairman
and the minority chairman of the Appropriations Committee of the House of
Representatives and the chairman and the minority chairman of the Environmental
Resources and Energy Committee of the House of Representatives. The report shall
be submitted by December 30, 2012, and by September 30 of each year
thereafter.

(2)
All counties and municipalities receiving funds from the fund under this
section shall submit information to the commission on a form prepared by the
commission that sets forth the amount and use of the funds received in the prior
calendar year. The form shall set forth that the funds received were committed
to a specific project or use as authorized in this section. The reports shall be
published annually on the county or municipality's publicly accessible Internet
website.

(i)
Availability of funds.--Distribution of funds under this section and
section 2315 (relating to Statewide initiatives) are contingent on availability
of funds in the fund. If sufficient funds are not available, the commission
shall disburse funds on a pro rata basis.

58c2314v

Cross
References.  Section 2314 is referred to in sections 2302, 2303, 2315,
2702 of this title.

58c2315s

§
2315.  Statewide initiatives.

(a)
Establishment.--There is established in the State Treasury a fund to
be known as the Marcellus Legacy Fund.

(a.1)
Deposit and distribution.--Following distribution under section
2314(c), (c.1) and (c.2) (relating to distribution of fee) from fees collected
for 2011 and each year thereafter, 40% of the remaining revenue in the fund
shall be deposited into the Marcellus Legacy Fund and appropriated to the
commission and distributed within three months after the date the fee is due as
follows:

(1)
Twenty percent to the Commonwealth Financing Authority for grants to
eligible applicants for the following:

(i)
Acid mines: damage, abatement and cleanup and mine reclamation, with
priority given to projects which recycle and treat water for use in drilling
operations.

(ii)
Orphan or abandoned oil and gas well plugging.

(iii)
Complying with the act of January 24, 1966 (1965 P.L.1535, No.537), known
as the Pennsylvania Sewage Facilities Act.

(iv)
Planning acquisition, development, rehabilitation and repair of greenways,
recreational trails, open space, parks and beautification projects.

(v)
Programs to establish baseline water quality data on private water
supplies.

(vi)
Watershed programs and related projects.

(vii)
Up to 25% of funds distributed to the Commonwealth Financing Authority
under this paragraph may be utilized for flood control projects.

(2)
Ten percent to the Environmental Stewardship Fund.

(3)
Twenty-five percent to the Highway Bridge Improvement Restricted Account
in the Motor License Fund to counties to be distributed to fund the cost of the
replacement or repair of locally owned at-risk deteriorated bridges. Funds shall
be distributed to counties proportionately based on the population of the county
as follows:

(i)
In each county, the distribution shall be according to the following
formula:

(A)
Divide:

(I)
the total population of the county; by

(II)
the total population of the Commonwealth;

(B)
Express the quotient under clause (A) as a percentage.

(C)
Multiply:

(I)
the percentage under clause (B); by

(II)
the amount of money to be distributed under this paragraph.

(ii)
Each county shall receive a minimum of $40,000 to the extent funds are
available.

(iii)
The Department of Transportation shall release money under this paragraph
upon approval of a plan submitted by a county or municipality to repair an
at-risk deteriorated bridge. The plan must include funding for replacement or
repair.

(iv)
A county of the first or second class may submit a plan to use its funds
under this paragraph for at-risk deteriorated bridges owned by a public
transportation authority.

(4)
Twenty-five percent for water and sewer projects. Fifty percent of the
amount distributed under this paragraph shall be transmitted to the Pennsylvania
Infrastructure Investment Authority to be used in accordance with the act of
March 1, 1988 (P.L.82, No.16), known as the Pennsylvania Infrastructure
Investment Authority Act. Fifty percent of the amount distributed under this
paragraph shall be distributed to the H2O PA program to be used by the
Commonwealth Financing Authority in accordance with section 301 of the act of
July 9, 2008 (P.L.908, No.63), known as the H2O PA Act. The prohibition on
grants for projects located in a city or county of the first or second class
under section 301 of the H2O PA Act shall not apply to funds distributed to the
H2O PA Program under this paragraph.

(5)
Fifteen percent for the planning, acquisition, development, rehabilitation
and repair of greenways, recreational trails, open space, natural areas,
community conservation and beautification projects, community and heritage parks
and water resource management. Funds may be used to acquire lands for
recreational or conservation purposes and land damaged or prone to drainage by
storms or flooding. Funds shall be distributed to counties proportionately based
on the population of the county as follows:

(i)
In each county, the distribution shall be according to the following
formula:

(A)
Divide:

(I)
the total population of the county; by

(II)
the total population of the Commonwealth.

(B)
Express the quotient under clause (A) as a percentage.

(C)
Multiply:

(I)
the percentage under clause (B); by

(II)
the amount of funds available under this paragraph.

(ii)
Each county shall receive a minimum of $25,000 to the extent funds are
available.

(6)
Five percent for distribution as follows:

(i)
From fees collected in 2011, 2012 and 2013, to the Department of Community
and Economic Development for projects to provide for the planning, development,
remodeling, remediation and construction of projects relating to oil, natural
gas or other chemical substances. Projects under this subparagraph may include
blending facilities to liquefy or refine natural gas or  to convert natural
gas to ethane, propane or other substances; facilities to refine oil; or
facilities to refine or process oil, heating oil, jet fuel or any other chemical
substance. Following 2014, funds not utilized by the Department of Community and
Economic Development under this subparagraph shall be deposited in the Hazardous
Sites Cleanup Fund.

(ii)
After 2013, to the Hazardous Sites Cleanup Fund.

(b)
Restriction on use of proceeds.--

(1)
Funds distributed under subsection (a.1) shall not be used for the purpose
of public relations, outreach not directly related to project implementation,
communications, lobbying or litigation.

(2)
Funds distributed under subsection (a.1) may not be used by an authorized
organization as defined in 27 Pa.C.S. § 6103 (relating to definitions) for land
acquisition unless the authorized organization has obtained the written consent
of the county and municipality in which the land is situated.

(c)
Coordination.--The department and the Department of Conservation and
Natural Resources shall review applications for funding as requested by the
Commonwealth Financing Authority and provide recommendations on priority of
projects and project approval.

58c2315v

Cross
References.  Section 2315 is referred to in sections 2302, 2314 of this
title.

58c2316s

§
2316.  Small business participation.

(a)
Requirement.--Producers shall provide maximum practicable contracting
opportunities for diverse small businesses, including minority-owned business
enterprises, women-owned business enterprises and veteran-owned businesses.

(b)
Duties.--Producers shall do all of the following:

(1)
Maintain a policy prohibiting discrimination in employment and contracting
based on gender, race, creed or color.

(2)
Use the database available on the Internet website of the Department of
General Services to identify certified diverse small businesses, including
minority-owned business enterprises, women-owned business enterprises and
veteran-owned businesses, as potential contractors, subcontractors and suppliers
for opportunities related to unconventional natural gas extraction.

(3)
Respond to the survey under subsection (c) within 90 days.

(c)
Survey.--Within one year of the effective date of this section, the
Department of General Services shall send all producers a survey to report the
producers' efforts to provide maximum practicable contracting opportunities
related to unconventional natural gas extraction for diverse, small business
participation.

(d)
Reports.--The Department of General Services shall compile the results
and submit an annual report to the State Government Committee of the Senate and
the State Government Committee of the House of Representatives on the
utilization of diverse small business participation related to unconventional
natural gas extraction. The report shall be submitted no later than 150 days
after the Department of General Services disseminated the survey to
producers.

(e)
Definition.--As used in this section, the term "diverse small
business" means minority-owned business, women-owned business and veteran-owned
business as determined by the Department of General Services.

58c2317s

§
2317.  Applicability.

The
provisions of this chapter shall not negate or limit the responsibilities of any
producer under this title, 74 Pa.C.S (relating to transportation) or 75 Pa.C.S.
(relating to vehicles).

58c2318s

§
2318.  Expiration.

(a)
Notice.--The Secretary of the Commonwealth shall, upon the imposition
of a severance tax on unconventional gas wells in this Commonwealth, submit for
publication in the Pennsylvania Bulletin notice of the imposition.

(b)
Date.--This chapter shall expire on the date of the publication of the
notice under subsection (a).

58c2501h

CHAPTER 25

OIL
AND GAS LEASE FUND

Sec.

2501.
Definitions.

2502.
(Reserved).

2503.
(Reserved).

2504.
Appropriation of money.

2505.
Funds.

Enactment.
Chapter 25 was added February 14, 2012, P.L.83, No.13, effective in 60
days.

58c2501s

§
2501.  Definitions.

The
following words and phrases when used in this chapter shall have the meanings
given to them in this section unless the context clearly indicates
otherwise:

"Department."
The Department of Conservation and Natural Resources of the
Commonwealth.

58c2502s

§
2502.  (Reserved).

58c2503s

§
2503.  (Reserved).

58c2504s

§
2504.  Appropriation of money.

Money
in the Oil and Gas Lease Fund is specifically appropriated as provided in this
chapter.

58c2505s

§
2505.  Funds.

(a)
Priority.--Funds appropriated from the Oil and Gas Lease Fund to the
department under the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal
Code, or other appropriation act shall be distributed prior to allocations under
subsection (b).

(b)
Allocations.--Money in the Oil and Gas Lease Fund shall be allocated
on an annual basis as follows:

(1)
The following amounts shall be transferred from the Oil and Gas Lease Fund
to the Marcellus Legacy Fund for distribution to the Environmental Stewardship
Fund:

(i)
For 2013, $20,000,000.

(ii)
For 2014 and each year thereafter, $35,000,000.

(2)
The following amounts shall be transferred from the Oil and Gas Lease Fund
to the Marcellus Legacy Fund for distribution to the Hazardous Sites Cleanup
Fund:

(i)
For 2015, $5,000,000.

(ii)
For 2016 and each year thereafter, $15,000,000.

58c2701h

CHAPTER 27

NATURAL
GAS ENERGY

DEVELOPMENT
PROGRAM

Sec.

2701.
Definitions.

2702.
Assistance.

2703.
Program.

2704.
Expiration.

Enactment.
Chapter 27 was added February 14, 2012, P.L.83, No.13, effective in 60
days.

Cross
References.  Chapter 27 is referred to in section 2314 of this
title.

58c2701s

§
2701.  Definitions.

The
following words and phrases when used in this chapter shall have the meanings
given to them in this section unless the context clearly indicates
otherwise:

"Bi-fuel
vehicle."  A motor vehicle equipped to be propelled in part by
compressed natural gas fuel and in part by diesel or gasoline fuel.

"Company."
An entity doing business in this Commonwealth which is subject to tax
under Article III, IV or VI of the act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971.

"Dedicated
compressed natural gas vehicle."  A motor vehicle that is produced by
an original equipment manufacturer and operates on 100% compressed natural gas
fuel.

"Dedicated
liquefied natural gas vehicle."  A motor vehicle that is produced by an
original equipment manufacturer and operates on 90% or more liquefied natural
gas fuel and 10% or less on gasoline or diesel fuel.

"Department."
The Department of Environmental Protection of the Commonwealth.

"Eligible
applicant."  Any of the following:

(1)
A Commonwealth authority.

(2)
A municipal authority.

(3)
The Pennsylvania Turnpike Commission.

(4)
A local transportation organization.

(5)
A nonprofit entity.

(6)
A State-owned or State-related university.

(7)
A company.

"Eligible
vehicles."  The following shall constitute an eligible vehicle under
this chapter:

(1)
Dedicated compressed natural gas vehicles that are fleet vehicles and have
a gross vehicle weight rating of at least 14,000 pounds.

(2)
Dedicated liquefied natural gas vehicles that are fleet vehicles and have
a gross vehicle weight rating of at least 14,000 pounds.

(3)
Bi-fuel vehicles that are fleet vehicles.

"Fleet
vehicle."  A vehicle registered to an eligible applicant.

"Incremental
purchase cost."  The excess cost of a dedicated compressed natural gas
vehicle, a dedicated liquefied natural gas vehicle or a bi-fuel vehicle, over
the price for a gasoline or diesel fuel motor vehicle of a similar model. The
term includes the cost to retrofit a vehicle to operate as a dedicated
compressed natural gas vehicle, a dedicated liquefied natural gas vehicle or a
bi-fuel vehicle.

"Local
transportation organization."  Any of the following:

(1)
A political subdivision.

(2)
A public transportation authority, port authority or redevelopment
authority, which is:

(i)
organized under:

(A)
the laws of this Commonwealth; or

(B)
an interstate compact; or

(ii)
empowered to render, contract to render or assist in rendering
transportation services in a limited area in this Commonwealth even though it
may also render or assist in rendering transportation service in adjacent
states.

(3)
A nonprofit entity which directly or indirectly provides public
transportation service.

(4)
A nonprofit entity of public transportation providers operating within
this Commonwealth.

"Original
equipment manufacturer" or "OEM."  The entity which originally
manufactures the natural gas engine or the vehicle for sale.

"Start
date."  The date on which an eligible applicant first places in
service, through purchase or contract, a new or retrofitted new natural gas
vehicle.

58c2702s

§
2702.  Assistance.

(a)
Funding.--Grants under this chapter shall be made from amounts
deposited in the Marcellus Legacy Fund under section 2314(c.2) (relating to
distribution of fee).

(b)
Grants.--

(1)
For fiscal year 2012-2013, the total amount of grants approved under this
chapter may not exceed $10,000,000. Of that amount, $5,000,000 shall be
allocated exclusively for local transportation organizations. If the total
amount allocated to either the group of applications exclusive of local
transportation organizations or the group of local transportation organization
applicants is not approved in fiscal year 2012-2013, the unused portion shall be
made available under paragraph (2).

(2)
For fiscal year 2013-2014:

(i)
The total amount of grants approved under this chapter may not exceed the
sum of:

(A)
$7,500,000; and

(B)
any unused portion available under paragraph (1).

(ii)
Of the amount under subparagraph (i), 50% shall be allocated exclusively
for local transportation organizations.

(iii)
If the total amount allocated to either the group of applications
exclusive of local transportation organizations or the group of local
transportation organization applicants is not approved in fiscal year 2013-2014,
the unused portion shall be made available under paragraph (3).

(3)
For fiscal year 2014-2015, the total amount of grants approved under this
chapter may not exceed the sum of:

(i)
$2,500,000; and

(ii)
any unused portion available under paragraph (2).

58c2703s

§
2703.  Program.

(a)
Establishment and purpose.--The Natural Gas Energy Development Program
is established. The purpose of the program is to fund projects under this
chapter.

(b)
Eligible projects.--Funds transferred to the department under Chapter
23 (relating to unconventional gas well fee) shall be utilized for competitive
grants to eligible applicants for eligible projects as provided in this
subsection. In order to be eligible to receive a grant, an eligible applicant
must provide or demonstrate all of the following to the department:

(1)
A plan to convert five or more fleet vehicles into eligible vehicles or
purchase five or more eligible vehicles. The plan must be financially viable
within four years of the start date and must include the construction and
utilization of a natural gas fueling station in this Commonwealth or the
utilization of an existing natural gas fueling station.

(2)
A statement of the projected usage of natural gas stated in gasoline or
diesel gallon equivalents accompanied by the methodology utilized and how the
project will increase use of domestic natural gas in this Commonwealth.

(3)
The cost of the project.

(4)
The source and amount of any funds to be contributed by the eligible
applicant.

(5)
The intent to maintain operations in this Commonwealth for a period of not
less than six years from the start date.

(6)
That all of the eligible vehicles purchased with the grant will be
registered in this Commonwealth.

(7)
The utilization of Federal funds on the project to the extent that Federal
funds are available.

(8)
Whether or not the project includes the utilization of a natural gas
fueling facility that is accessible to the public.

(c)
Guidelines.--Funds under this section shall be used in accordance with
guidelines adopted by the department. The guidelines shall do all of the
following:

(1)
Restrict each grant for an eligible vehicle to cover no more than 50% of
the incremental purchase cost.

(2)
Limit the amount of the grant so that it shall not exceed $25,000 for each
fleet vehicle.

(3)
In the case of grants awarded for eligible vehicles which are bi-fuel
vehicles, provide for annual reporting to the department by the eligible
applicant demonstrating the usage of compressed natural gas for a period not to
exceed four years after the start date.

(4)
Require each eligible vehicle for which a grant is awarded to comply with
all Federal and State safety requirements, including rules and regulations
promulgated by the Environmental Protection Agency.

(d)
Application.--An applicant shall submit an application including
supporting information as required by the department.

(e)
Project review.--The department shall review and prepare an assessment
of each application and determine which projects will best utilize and promote
the use of domestically produced natural gas in this Commonwealth.

(f)
Administrative costs.--No more than 1% of the funds appropriated to
the department shall be used for administrative costs.

(g)
Report.--The department shall provide a report to the chairman and
minority chairman of the Appropriations Committee of the Senate and the chairman
and minority chairman of the Appropriations Committee of the House of
Representatives by October 1, 2013, and each October 1 thereafter. The report
shall be maintained on the department's official Internet website and shall
include:

(1)
A list of all grants approved during the previous fiscal year, including
the amount of the grant and a description of each approved project.

(2)
The estimated domestic energy benefits to date for all projects receiving
funding during the fiscal year and the method used to determine estimated
benefits.

58c2704s

§
2704.  Expiration.

This
chapter shall expire December 31, 2016.

58c3101h

PART III

UTILIZATION

Enactment.
Part III was added February 14, 2012, P.L.83, No.13, effective in 60
days.

Chapter

31.
(Reserved)

32.
Development

33.
Local Ordinances Relating to Oil and Gas Operation

35.
Responsibility for Fee

CHAPTER 31

(Reserved)

Enactment.
Chapter 31 (Reserved) was added February 14, 2012, P.L.83, No.13,
effective in 60 days.

58c3201h

CHAPTER 32

DEVELOPMENT

Subchapter

A.
Preliminary Provisions

B.
General Requirements

C.
Underground Gas Storage

D.
Eminent Domain

E.
Enforcement and Remedies

F.
Miscellaneous Provisions

Enactment.
Chapter 25 was added February 14, 2012, P.L.83, No.13, effective in 60
days.

Special
Provisions in Appendix.  See section 4 of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

Cross
References.  Chapter 32 is referred to in sections 3302, 3304, 3305,
3306, 3307, 3308 of this title.

SUBCHAPTER A.

PRELIMINARY
PROVISIONS

Sec.

3201.
Scope of chapter.

3202.
Declaration of purpose of chapter.

3203.
Definitions.

58c3201s

§
3201.  Scope of chapter.

This
chapter relates to oil and gas.

58c3202s

§
3202.  Declaration of purpose of chapter.

The
purposes of this chapter are to:

(1)
Permit optimal development of oil and gas resources of this Commonwealth
consistent with protection of the health, safety, environment and property of
Pennsylvania citizens.

(2)
Protect the safety of personnel and facilities employed in coal mining or
exploration, development, storage and production of natural gas or oil.

(3)
Protect the safety and property rights of persons residing in areas where
mining, exploration, development, storage or production occurs.

(4)
Protect the natural resources, environmental rights and values secured by
the Constitution of Pennsylvania.

58c3203s

§
3203.  Definitions.

The
following words and phrases when used in this chapter shall have the meanings
given to them in this section unless the context clearly indicates
otherwise:

"Abandoned
well."  Any of the following:

(1)
A well:

(i)
that has not been used to produce, extract or inject any gas, petroleum or
other liquid within the preceding 12 months;

(ii)
for which equipment necessary for production, extraction or injection has
been removed; or

(iii)
considered dry and not equipped for production within 60 days after
drilling, redrilling or deepening.

(2)
The term does not include wells granted inactive status.

"Additive."
A hydraulic fracturing chemical.

"Alteration."
An operation which changes the physical characteristics of a well bore,
including stimulation or removing, repairing or changing the casing. For the
purpose of this chapter only, the term does not include:

(1)
Repairing or replacing of the casing if the activity does not affect the
depth or diameter of the well bore, the use or purpose of the well does not
change and the activity complies with regulations promulgated under this
chapter, except that this exclusion does not apply:

(i)
to production casings in coal areas when the production casings are also
the coal protection casings; or

(ii)
when the method of repairing or replacing the casing would affect the coal
protection casing.

(2)
Stimulation of a well.

"Board."
The Oil and Gas Technical Advisory Board.

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

"Building."
An occupied structure with walls and roof within which persons live or
customarily work.

"Casing."
A string or strings of pipe commonly placed in wells drilled for natural
gas or petroleum.

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

(1)
Hydraulic cement properly mixed with water only.

(2)
A mixture of materials adequate for bonding or sealing of well bores as
approved by regulations promulgated under this chapter.

"Chemical."
Any element, chemical compound or mixture of elements or compounds that
has its own specific name or identity, such as a chemical abstract service
number.

"Chemical
Disclosure Registry."  The chemical registry Internet website developed
by the Ground Water Protection Council and the Interstate Oil and Gas Compact
Commission or their successor organizations.

"Chemical
family."  A group of chemicals that share similar chemical properties
and have a common general name.

"Coal
mine."  Any of the following:

(1)
Operations in a coal seam, including excavated portions, abandoned
portions and places actually being worked.

(2)
Underground workings and shafts, slopes, tunnels and other ways and
openings, including those which are in the course of being sunk or driven, along
with all roads and facilities connected with them below the surface.

"Coal
operator."  A person that operates or proposes to operate a coal mine
as an owner or lessee.

"Completion
of a well."  The date after treatment, if any, that the well is
properly equipped for production of oil or gas, or, if the well is dry, the date
that the well is abandoned.

"Department."
The Department of Environmental Protection of the Commonwealth.

"Drilling."
The drilling or redrilling of a well or the deepening of an existing
well.

"Fresh
groundwater."  Water in that portion of the generally recognized
hydrologic cycle which occupies the pore spaces and fractures of saturated
subsurface materials.

"Gas."
Any of the following:

(1)
A fluid, combustible or noncombustible, which is produced in a natural
state from the earth and maintains a gaseous or rarified state at standard
temperature of 60 degrees Fahrenheit and pressure 14.7 PSIA.

(2)
Any manufactured gas, by-product gas or mixture of gases or natural gas
liquids.

"Health
professional."  A physician, physician assistant, nurse practitioner,
registered nurse or emergency medical technician licensed by the
Commonwealth.

"Hydraulic
fracturing chemical."  Any chemical substance or combination of
substances, including any chemicals and proppants, that is intentionally added
to a base fluid for purposes of preparing a stimulation fluid for use in
hydraulic fracturing.

"Inactivate."
To shut off the vertical movement of gas in a gas storage well by means of
a temporary plug or other suitable device or by injecting bentonitic mud or
other equally nonporous material into the well.

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

"Natural
gas liquids."  Hydrocarbons in natural gas which are separated from the
gas as liquids through the process of absorption, condensation, adsorption or
other methods in gas processing of cycling plants.

"Oil."
Hydrocarbons in liquid form at standard temperature of 60 degrees
Fahrenheit and pressure 14.7 PSIA, also referred to as petroleum.

"Operating
coal mine."  Any of the following:

(1)
An underground coal mine which is producing coal or has been in production
of coal at any time during the 12 months immediately preceding the date its
status is put in question, including contiguous worked-out or abandoned coal
mines to which it is connected underground.

(2)
An underground coal mine to be established or reestablished under
paragraph (1).

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

"Operator."
A well operator.

"Orphan
well."  A well abandoned prior to April 18, 1985, that has not been
affected or operated by the present owner or operator and from which the present
owner, operator or lessee has received no economic benefit other than as a
landowner or recipient of a royalty interest from the well.

"Outside
coal boundaries."  When used in conjunction with the term "operating
coal mine," the boundaries of the coal acreage assigned to the coal mine under
an underground mine permit issued by the Department of Environmental
Protection.

"Owner."
A person who owns, manages, leases, controls or possesses a well or coal
property. The term does not apply to orphan wells, except where the Department
of Environmental Protection determines a prior owner or operator benefited from
the well as provided in section 3220(a) (relating to plugging requirements).

"Person."
An individual, association, partnership, corporation, political
subdivision or agency of the Federal Government, State government or other legal
entity.

"Petroleum."
Hydrocarbons in liquid form at standard temperature of 60 degrees
Fahrenheit and pressure 14.7 PSIA, also referred to as oil.

"Pillar."
A solid block of coal surrounded by either active mine workings or a
mined-out area.

"Plat."
A map, drawing or print accurately drawn to scale showing the proposed or
existing location of a well or wells.

"Reservoir
protective area."  The area surrounding a storage reservoir boundary,
but within 2,000 linear feet of the storage reservoir boundary, unless an
alternate area has been designated by the Department of Environmental
Protection, which is deemed reasonably necessary to afford protection to the
reservoir, under a conference held in accordance with section 3251 (relating to
conferences).

"Retreat
mining."  Removal of coal pillars, ribs and stumps remaining after
development mining has been completed in that section of a coal mine.

"Secretary."
The Secretary of Environmental Protection of the Commonwealth.

"Storage
operator."  A person who operates or proposes to operate a storage
reservoir as an owner or lessee.

"Storage
reservoir."  That portion of a subsurface geological stratum into which
gas is or may be injected for storage purposes or to test suitability of the
stratum for storage.

"Unconventional
formation."  A geological shale formation existing below the base of
the Elk Sandstone or its geologic equivalent stratigraphic interval where
natural gas generally cannot be produced at economic flow rates or in economic
volumes except by vertical or horizontal well bores stimulated by hydraulic
fracture treatments or by using multilateral well bores or other techniques to
expose more of the formation to the well bore.

"Unconventional
well."  A bore hole drilled or being drilled for the purpose of or to
be used for the production of natural gas from an unconventional formation.

"Water
management plan."  A plan associated with drilling or completing a well
in an unconventional formation that demonstrates that the withdrawal and use of
water sources protects those sources as required by law and protects public
health, safety and welfare.

"Water
purveyor."  Any of the following:

(1)
The owner or operator of a public water system as defined in section 3 of
the act of May 1, 1984 (P.L.206, No.43), known as the Pennsylvania Safe Drinking
Water Act.

(2)
Any person subject to the act of June 24, 1939 (P.L.842, No.365), referred
to as the Water Rights Law.

"Water
source."

(1)
Any of the following:

(i)
Waters of this Commonwealth.

(ii)
A source of water supply used by a water purveyor.

(iii)
Mine pools and discharges.

(iv)
Any other waters that are used for drilling or completing a well in an
unconventional formation.

(2)
The term does not include flowback or production waters or other
fluids:

(i)
which are used for drilling or completing a well in an unconventional
formation; and

(ii)
which do not discharge into waters of this Commonwealth.

"Well."
A bore hole drilled or being drilled for the purpose of or to be used for
producing, extracting or injecting gas, petroleum or another liquid related to
oil or gas production or storage, including brine disposal, but excluding a bore
hole drilled to produce potable water. The term does not include a bore hole
drilled or being drilled for the purpose of or to be used for:

(1)
Systems of monitoring, producing or extracting gas from solid waste
disposal facilities, if the bore hole is a well subject to the act of July 7,
1980 (P.L.380, No.97), known as the Solid Waste Management Act, which does not
penetrate a workable coal seam.

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

(i)
used to vent methane to the outside atmosphere from an operating coal
mine; regulated as part of the mining permit under the act of June 22, 1937
(P.L.1987, No.394), known as The Clean Streams Law, and the act of May 31, 1945
(P.L.1198, No.418), known as the Surface Mining Conservation and Reclamation
Act; and drilled by the operator of the operating coal mine for the purpose of
increased safety; or

(ii)
used to vent methane to the outside atmosphere under a federally funded or
State-funded abandoned mine reclamation project.

"Well
control emergency."  An incident during drilling, operation, workover
or completion that, as determined by the Department of Environmental Protection,
poses a threat to public health, welfare or safety, including a loss of
circulation fluids, kick, casing failure, blowout, fire and explosion.

"Well
control specialist."  Any person trained to respond to a well control
emergency with a current certification from a well control course accredited by
the International Association of Drilling Contractors or other organization
approved by the Department of Environmental Protection.

"Well
operator."  Any of the following:

(1)
The person designated as operator or well operator on the permit
application or well registration.

(2)
If a permit or well registration was not issued, a person who locates,
drills, operates, alters or plugs a well or reconditions a well with the purpose
of production from the well.

(3)
If a well is used in connection with underground storage of gas, a storage
operator.

"Wetland."
Areas inundated or saturated by surface water or groundwater at a
frequency and duration sufficient to support,  and which normally support,
a prevalence of vegetation typically adapted for life in saturated soil
conditions, including swamps, marshes, bogs and similar areas.

"Workable
coal seams."  A coal seam which:

(1)
is actually being mined in the area in question under this chapter by
underground methods; or

(2)
in the judgment of the Department of Environmental Protection, can
reasonably be expected to be mined by underground methods.

58c3211h

SUBCHAPTER B

GENERAL
REQUIREMENTS

Sec.

3211.
Well permits.

3212.
Permit objections.

3212.1.
Comments by municipalities and storage operators.

3213.
Well registration and identification.

3214.
Inactive status.

3215.
Well location restrictions.

3216.
Well site restoration.

3217.
Protection of fresh groundwater and casing requirements.

3218.
Protection of water supplies.

3218.1.
Notification to public drinking water systems.

3218.2.
Containment for unconventional wells.

3218.3.
Transportation records regarding wastewater fluids.

3218.4.
Corrosion control requirements.

3218.5.
Gathering lines.

3219.
Use of safety devices.

3219.1.
Well control emergency response.

3220.
Plugging requirements.

3221.
Alternative methods.

3222.
Well reporting requirements.

3222.1.
Hydraulic fracturing chemical disclosure requirements.

3223.
Notification and effect of well transfer.

3224.
Coal operator responsibilities.

3225.
Bonding.

3226.
Oil and Gas Technical Advisory Board.

3227.
Air contaminant emissions.

Cross
References.  Subchapter B is referred to in sections 3212, 3212.1,
3215, 3218, 3222, 3234, 3258, 3271, 3273.1 of this title.

58c3211s

§
3211.  Well permits.

(a)
Permit required.--No person shall drill or alter a well, except for
alterations which satisfy the requirements of subsection (j), without having
first obtained a well permit under subsections (b), (c), (d) and (e), or operate
an abandoned or orphan well unless in compliance with subsection (l). A copy of
the permit shall be kept at the well site during preparation and construction of
the well site or access road during drilling or alteration of the well. No
person shall be required to obtain a permit to redrill a nonproducing well if
the redrilling:

(1)
has been evaluated and approved as part of an order from the department
authorizing cleaning out and plugging or replugging a nonproducing well under
section 13(c) of the act of December 18, 1984 (P.L.1069, No.214), known as the
Coal and Gas Resource Coordination Act; and

(2)
is incidental to a plugging or replugging operation and the well is
plugged within 15 days of redrilling.

(b)
Plat.--

(1)
The permit application shall be accompanied by a plat prepared by a
competent engineer or a competent surveyor, on forms furnished by the
department, showing the political subdivision and county in which the tract of
land upon which the well to be drilled, operated or altered is located; a list
of municipalities adjacent to the well site; the name of the surface landowner
of record and lessor; the name of all surface landowners and water purveyors
whose water supplies are within 1,000 feet of the proposed well location or, in
the case of an unconventional well, within 3,000 feet from the vertical well
bore; the name of the owner of record or operator of all known underlying
workable coal seams; the acreage in the tract to be drilled; the proposed
location of the well determined by survey, courses and distances of the location
from two or more permanent identifiable points or landmarks on the tract
boundary corners; the proposed angle and direction of the well if the well is to
be deviated substantially from a vertical course; the number or other
identification to be given the well; the workable coal seams underlying the
tract of land upon which the well is to be drilled or altered and which shall be
cased off under section 3217 (relating to protection of fresh groundwater and
casing requirements); and any other information needed by the department to
administer this chapter.

(2)
The applicant shall forward by certified mail a copy of the plat to the
surface landowner; the municipality in which the tract of land upon which the
well to be drilled is located; each municipality within 3,000 feet of the
proposed unconventional vertical well bore; the municipalities adjacent to the
well; all surface landowners and water purveyors, whose water supplies are
within 1,000 feet of the proposed well location or, in the case of an
unconventional well, within 3,000 feet of the proposed unconventional vertical
well bore; storage operators within 3,000 feet of the proposed unconventional
vertical well bore; the owner and lessee of any coal seams; and each coal
operator required to be identified on the well permit application.

(b.1)
Notification.--The applicant shall submit proof of notification with
the well permit application. Notification of surface owners shall be performed
by sending notice to those persons to whom the tax notices for the surface
property are sent, as indicated in the assessment books in the county in which
the property is located. Notification of surface landowners or water purveyors
shall be on forms, and in a manner prescribed by the department, sufficient to
identify the rights afforded those persons under section 3218 (relating to
protection of water supplies) and to advise them of the advantages of taking
their own predrilling or prealteration survey.

(b.2)
Approval.--If the applicant submits to the department written approval
of the proposed well location by the surface landowner and the coal operator,
lessee or owner of any coal underlying the proposed well location and no
objections are raised by the department within 15 days of filing, or if no
approval has been submitted and no objections are made to the proposed well
location within 15 days from receipt of notice by the department, the surface
landowner or any coal operator, lessee or owner, the written approval shall be
filed and become a permanent record of the well location, subject to inspection
at any time by any interested person. The application form to operate an
abandoned or orphan well shall provide notification to the applicant of its
responsibilities to plug the well upon abandonment.

(c)
Applicants.--If the applicant for a well permit is a corporation,
partnership or person that is not a resident of this Commonwealth, the applicant
shall designate the name and address of an agent for the operator who shall be
the attorney-in-fact for the operator and who shall be a resident of this
Commonwealth upon whom notices, orders or other communications issued under this
chapter may be served and upon whom process may be served. Each well operator
required to designate an agent under this section shall, within five days after
termination of the designation, notify the department of the termination and
designate a new agent.

(d)
Permit fee.--Each application for a well permit shall be accompanied
by a permit fee, established by the Environmental Quality Board, which bears a
reasonable relationship to the cost of administering this chapter.

(e)
Issuance of permit.--The department shall issue a permit within 45
days of submission of a permit application unless the department denies the
permit application for one or more of the reasons set forth in subsection (e.1),
except that the department shall have the right to extend the period for 15 days
for cause shown upon notification to the applicant of the reasons for the
extension. The department may impose permit terms and conditions necessary to
assure compliance with this chapter or other laws administered by the
department.

(e.1)
Denial of permit.--The department may deny a permit for any of the
following reasons:

(1)
The well site for which a permit is requested is in violation of any of
this chapter or issuance of the permit would result in a violation of this
chapter or other applicable law.

(2)
The permit application is incomplete.

(3)
Unresolved objections to the well location by the coal mine owner or
operator remain.

(4)
The requirements of section 3225 (relating to bonding) have not been
met.

(5)
The department finds that the applicant, or any parent or subsidiary
corporation of the applicant, is in continuing violation of this chapter, any
other statute administered by the department, any regulation promulgated under
this chapter or a statute administered by the department or any plan approval,
permit or order of the department, unless the violation is being corrected to
the satisfaction of the department. The right of the department to deny a permit
under this paragraph shall not take effect until the department has taken a
final action on the violations and:

(i)
the applicant has not appealed the final action in accordance with the act
of July 13, 1988 (P.L.530, No.94), known as the Environmental Hearing Board Act;
or

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

(6)
The applicant failed to pay the fee or file a report under section 2303(c)
(relating to administration), unless an appeal is pending. The commission shall
notify the department of any applicant who has failed to pay the fee or file a
report and who does not have an appeal pending.

(f)
Drilling.--

(1)
Upon issuance of a permit, the well operator may drill, operate or alter
at the exact location shown on the plat after providing the department, the
surface landowner and the local political subdivision in which the well is to be
located 24 hours' notice of the date that drilling will commence. Notification
to the department must be provided electronically. If there is a break in
drilling of 30 days or more, the well operator shall notify the department at
least 24 hours prior to the resumption of drilling.

(2)
The unconventional well operator shall provide the department 24 hours'
notice prior to cementing all casing strings, conducting pressure tests of the
production casing, stimulation and abandoning or plugging an unconventional
well.

(3)
In noncoal areas where more than one well is to be drilled as part of the
same development project, only the first well of the project need be located by
survey. Remaining wells of the project shall be shown on the plat in a manner
prescribed by regulation.

(4)
Prior to drilling each additional project well, the well operator shall
notify the department and provide reasonable notice of the date on which
drilling will commence.

(5)
Whenever, before or during the drilling of a well not within the
boundaries of an operating coal mine, the well operator encounters conditions of
a nature which renders drilling of the bore hole or a portion thereof
impossible, or more hazardous than usual, the well operator, upon verbal notice
to the department, may immediately plug all or part of the bore hole, if
drilling has occurred, and commence a new bore hole not more than 50 feet from
the old bore hole if the location of the new bore hole does not violate section
3215 (relating to well location restrictions) and, in the case of a well subject
to act of July 25, 1961 (P.L.825, No.359), known as the Oil and Gas Conservation
Law, if the new location complies with existing laws, regulations and spacing
orders and the new bore hole is at least 330 feet from the nearest lease
boundary.

(6)
Within ten days of commencement of the new bore hole, the well operator
shall file with the department a written notice of intention to plug, a well
record, a completion report, a plugging certificate for the original bore hole
and an amended plat for the new bore hole.

(7)
The well operator shall forward a copy of the amended plat to the surface
landowner identified on the well permit application within ten days of
commencement of the new well bore.

(g)
Posting.--The well permit number and operator's name, address and
telephone number shall be conspicuously posted at the drilling site during site
preparation, including the construction of access roads, construction of the
well site and during drilling, operating or alteration of the well.

(h)
Labeling.--The well operator shall install the permit number issued by
the department in a legible, visible and permanent manner on the well upon
completion.

(i)
Expiration.--Well permits issued for drilling wells under this chapter
shall expire one year after issuance unless operations for drilling the well are
commenced within the period and pursued with due diligence or unless the permit
is renewed in accordance with regulations of the department. If drilling is
commenced during the one-year period, the well permit shall remain in force
until the well is plugged in accordance with section 3220 (relating to plugging
requirements) or the permit is revoked. A drilling permit issued prior to April
18, 1985, for a well which is an operating well on April 18, 1985, shall remain
in force as a well permit until the well is plugged in accordance with section
3220.

(j)
Exceptions.--The Environmental Quality Board may establish by
regulation certain categories of alterations of permitted or registered wells
for which permitting requirements of this section shall not apply. A well
operator or owner who proposes to conduct the alteration activity shall first
obtain a permit or registration modification from the department. The
Environmental Quality Board shall promulgate regulations as to the requirements
for modifications.

(k)
No transfer permitted.--No permit issued under this section or
registration issued under section 3213 (relating to well registration and
identification) may be transferred without prior approval of the department. A
request for approval of a transfer shall be on the forms, and in the manner,
prescribed by the department. The department shall approve or deny a transfer
request within 45 days of receipt of a complete and accurate application. The
department may deny a request only for reasons set forth in subsection (e.1)(4)
and (5). Approval of a transfer request shall permanently transfer
responsibility to plug the well under section 3220 to the recipient of the
transferred permit or registration.

(l)
Regulations.--The Environmental Quality Board may establish by
regulation requirements for the permitting and operation of abandoned or orphan
wells. A person who proposes to conduct abandoned or orphan well operations
shall first obtain a permit to operate an abandoned or orphan well.

(m)
Water management.--The following shall apply to water management:

(1)
No person may withdraw or use water from water sources within this
Commonwealth for the drilling or hydraulic fracture stimulation of any natural
gas well completed in an unconventional gas formation, whether on or off of the
land where the gas well is located, except in accordance with a water management
plan approved by the department.

(2)
The department shall review and approve water management plans based upon
a determination that the proposed withdrawal, when operated in accordance with
the proposed withdrawal operating conditions set forth in the plan, including
conditions relating to quantity, withdrawal rate and timing and any passby flow
conditions, will:

(i)
not adversely affect the quantity or quality of water available to other
users of the same water sources;

(ii)
protect and maintain the designated and existing uses of water
sources;

(iii)
not cause adverse impact to water quality in the watershed considered as a
whole; and

(iv)
include a reuse plan for fluids that will be used to hydraulically
fracture wells.

(3)
As to criteria:

(i)
The criteria under paragraph (2) shall be presumed to be achieved if the
proposed water withdrawal has been approved by and is operated in accordance
with conditions established by the Susquehanna River Basin Commission, the
Delaware River Basin Commission or the Great Lakes Commission, as
applicable.

(ii)
Notwithstanding subparagraph (i), the department may establish additional
requirements as necessary to comply with the laws of this Commonwealth.

(4)
In addition to the requirements under paragraphs (1), (2) and (3),
compliance with a department-approved water management plan shall be a condition
of any permit issued under this chapter for the drilling or hydraulic fracture
stimulation of any natural gas well completed in an unconventional formation and
shall be deemed to satisfy the laws of this Commonwealth.

58c3211v

Special
Provisions in Appendix.  See section 4(3)(ii) of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

Cross
References.  Section 3211 is referred to in sections 3212, 3212.1,
3215, 3218, 3222, 3224, 3258, 3271, 3273.1 of this title.

58c3212s

§
3212.  Permit objections.

(a)
General rule.--If a well referred to in section 3211(b) (relating to
well permits) will be located on a tract whose surface is owned by a person
other than the well operator, the surface landowner affected shall be notified
of the intent to drill and may file objections, in accordance with section 3251
(relating to conferences), based on the assertion that the well location
violates section 3215 (relating to well location restrictions) or that
information in the application is untrue in any material respect, within 15 days
of the receipt by the surface owner of the plat under section 3211(b). Receipt
of notice by the surface owner shall be presumed to have occurred 15 days from
the date of the certified mailing when the well operator submits a copy of the
certified mail receipt sent to the surface owner and an affidavit certifying
that the address of the surface owner to which notice was sent is the same as
the address listed in the assessment books in the county where the property is
located. If no objection is filed or none is raised by the department within 15
days after receipt of the plat by the surface landowner or if written approval
by the surface landowner is filed with the department and no objection is raised
by the department within 15 days of filing, the department shall proceed to
issue or deny the permit.

(b)
Special circumstances.--If a well referred to in section 3211(b) will
penetrate within the outside coal boundaries of an operating coal mine or a coal
mine already projected and platted but not yet being operated, or within 1,000
linear feet beyond those boundaries, and, in the opinion of the coal owner or
operator, the well or a pillar of coal about the well will unduly interfere with
or endanger the mine, the coal owner or operator affected may file objections
under section 3251 to the proposed location within 15 days of the receipt by the
coal operator of the plat under section 3211(b). If possible, an alternative
location at which the proposed well could be drilled to overcome the objections
shall be indicated. If no objection to the proposed location is filed or if none
is raised by the department within 15 days after receipt of the plat by the coal
operator or owner or if written approval by the coal operator or owner of the
location is filed with the department and no objection is raised by the
department within 15 days of filing, the department shall proceed to issue or
deny the permit.

(c)
Procedure upon objection.--If an objection is filed by a coal operator
or owner or made by the department, the department shall fix a time and place
for a conference under section 3251 not more than ten days from the date of
service of the objection to allow the parties to consider the objection and
attempt to agree on a location. If they fail to agree, the department, by an
appropriate order, shall determine a location on the tract of land as near to
the original location as possible where, in the judgment of the department, the
well can be safely drilled without unduly interfering with or endangering the
mine as defined in subsection (b). The new location agreed upon by the parties
or determined by the department shall be indicated on the plat on file with the
department and become a permanent record upon which the department shall proceed
to issue or deny the permit.

(d)
Survey.--Within 120 days after commencement of drilling operations,
the coal operator shall accurately locate the well by a closed survey on the
same datum as the mine workings or coal boundaries are mapped, file the results
of the survey with the department and forward a copy by certified mail to the
well operator.

58c3212v

Cross
References.  Section 3212 is referred to in section  3218 of this
title.

58c3212.1s

§
3212.1.  Comments by municipalities and storage operators.

(a)
Municipalities.--The municipality where the tract of land upon which
the unconventional well to be drilled is located may submit written comments to
the department describing local conditions or circumstances which the
municipality has determined should be considered by the department in rendering
its determination on the unconventional well permit. A comment under this
subsection must be submitted to the department within 15 days of the receipt of
the plat under section 3211(b) (relating to well permits). The municipality
shall simultaneously forward a copy of its comments to the permit applicant and
all other parties entitled to a copy of the plat under section 3211(b), who may
submit a written response. A written response must be submitted to the
department within ten days of receipt of the comments of the municipality.

(a.1)
Storage operators.--A storage operator located within 3,000 feet of a
proposed unconventional vertical well bore may submit written comments to the
department describing circumstances which the storage operator has determined
should be considered by the department in rendering its determination on the
unconventional well permit. A comment under this subsection must be submitted to
the department within 15 days of the receipt of the plat under section 3211(b).
The storage operator shall simultaneously forward a copy of its comments to the
permit applicant and all other parties entitled to a copy of the plat under
section 3211(b), who may submit a written response. A written response must be
submitted to the department within ten days of receipt of the comments of the
storage operator.

(b)
Consideration by department.--Comments and responses under subsections
(a) and (a.1) may be considered by the department in accordance with section
3215(d) (relating to well location restrictions).

(c)
No extension of time period.--The process outlined in this section
shall not extend the time period for the issuance or denial of a permit beyond
the time period set forth in this chapter.

58c3212.1v

Special
Provisions in Appendix.  See section 4(3)(iii) of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

Cross
References.  Section 3212.1 is referred to in section 3215 of this
title.

58c3213s

§
3213.  Well registration and identification.

(a)
General rule.--On or before July 5, 1996, each person who owned or
operated a well in existence prior to April 18, 1985, which has not been
registered with the department and for which no drilling permit has been issued
by the department, shall register the well with the department. A well owner or
operator who registers under this subsection and a well owner or operator who
has previously registered a well under this chapter shall, on or before July 5,
1996, identify any abandoned well on property which the well owner or operator
owns or leases and request approval from the department for classification of
the well as an orphan well. Information regarding wells to be registered or
identified shall be provided on a form, or in a manner prescribed by the
department, and shall include:

(1)
The name and address of the well operator and, if the well operator is a
corporation, partnership or person nonresident of this Commonwealth, the name
and address of an agent for the operator upon whom notices, orders, process or
other communications issued under this chapter may be served.

(2)
The well name and the location of the well indicated by a point on a 7 1/2
minute United States Geological Survey topographic map or any other location
description sufficient to enable the department to locate the well on the
ground.

(3)
The approximate date of drilling and completing the well, its approximate
depth and producing horizons, well construction information and, if available,
driller's logs.

(4)
An indemnity bond, an alternative fee in lieu of bonding or other evidence
of financial security submitted by the well operator and deemed appropriate by
the department and satisfying the requirements of section 3225 (relating to
bonding). No bond, alternative fee or other evidence of financial security shall
be required for identification of an orphan well. For wells drilled prior to
January 30, 1956, which have not been bonded, the well operator shall have five
years to comply with the provisions of this paragraph.

(5)
A registration fee of $15 per well or blanket registration fee of $250 for
multiple well registration applications submitted simultaneously. The
registration fee shall be waived until July 5, 1996, and no fee shall be charged
for identification of an orphan well.

(a.1)
Orphan wells.--After July 5, 1996, a well owner, well operator or
other person discovering an abandoned well on property purchased or leased by
the well owner, well operator or other person shall identify it to the
department within 60 days of discovery and advise the department that he is
seeking classification of the well as an orphan well. No fee shall be required
for identification.

(b)
Extension.--The department may extend the one-year time period under
subsection (a) for good cause shown. The extension may not exceed a period
ending two years from April 18, 1985. The department may adopt and promulgate
guidelines designed to ensure a fair implementation of this section, recognizing
the practical difficulties of locating unpermitted wells and complying with the
reporting requirements of this chapter.

(c)
Installation of registration number.--The well operator shall install
the registration number issued by the department in a legible, conspicuous and
permanent manner on the well within 60 days of issuance.

(d)
Definition.--For purposes of subsection (a)(4) and (5), the term
"owner" does not include an owner or possessor of surface real property, on
which an abandoned well is located, who did not participate or incur costs in
and had no right of control over the drilling or extraction operation of the
abandoned well.

58c3213v

Cross
References.  Section 3213 is referred to in sections 3211, 3214, 3220,
3273.1 of this title.

58c3214s

§
3214.  Inactive status.

(a)
General rule.--Upon application, the department shall grant inactive
status for a period of five years for a permitted or registered well, if the
following requirements are met:

(1)
the condition of the well is sufficient to prevent damage to the producing
zone or contamination of fresh water or other natural resources or surface
leakage of any substance;

(2)
the condition of the well is sufficient to stop the vertical flow of
fluids or gas within the well bore and is adequate to protect freshwater
aquifers, unless the department determines the well poses a threat to the health
and safety of persons or property or to the environment;

(3)
the operator anticipates construction of a pipeline or future use of the
well for primary or enhanced recovery, gas storage, approved disposal or other
appropriate uses related to oil and gas well production; and

(4)
the applicant satisfies the bonding requirements of sections 3213
(relating to well registration and identification) and 3225 (relating to
bonding), except that the department may require additional financial security
for a well on which an alternative fee is being paid in lieu of bonding under
section 3225(d).

(b)
Monitoring.--The owner or operator of a well granted inactive status
shall be responsible for monitoring the mechanical integrity of the well to
ensure that the requirements of subsection (a)(1) and (2) are met and shall
report the same on an annual basis to the department in the manner and form
prescribed by departmental regulations.

(c)
(Reserved).

(d)
Return to active status.--A well granted inactive status under
subsection (a) shall be plugged in accordance with section 3220 (relating to
plugging requirements) or returned to active status within five years of the
date inactive status was granted, unless the owner or operator applies for an
extension of inactive status which may be granted on a year-to-year basis if the
department determines that the owner or operator has demonstrated ability to
continue meeting the requirements of this section and the owner or operator
certifies that the well will be of future use within a reasonable period of
time. An owner or operator who has been granted inactive status for a well which
is returned to active status prior to expiration of the five-year period set
forth in subsection (a) shall notify the department that the well has been
returned to active status and shall not be permitted to apply for another
automatic five-year period of inactive status for the well. The owner or
operator may make application to return the well to inactive status, and the
application may be approved on a year-to-year basis if the department determines
that the owner or operator has demonstrated an ability to continue meeting the
requirements of this section and the owner or operator certifies that the well
will be of future use within a reasonable period of time. The department shall
approve or deny an application to extend a period of inactive status or to
return a well to inactive status within 60 days of receipt of the application,
and the application shall not be unreasonably denied. If the department has not
completed its review of the application within 60 days, the inactive status
shall continue until the department has made a determination on the request. If
the department denies an application to extend the period of inactive status or
to return a well to inactive status, a well owner or operator aggrieved by the
denial shall have the right to appeal the denial to the Environmental Hearing
Board within 30 days of receipt of the denial. Upon cause shown by a well owner
or operator, the board may grant a supersedeas under section 4 of the act of
July 13, 1988 (P.L.530, No.94), known as the Environmental Hearing Board Act, so
that the well in question may retain inactive status during the period of the
appeal.

(e)
Revocation of inactive status.--The department may revoke inactive
status and order immediate plugging of a well if the well is in violation of
this chapter or rules or regulations promulgated under this chapter or if the
owner or operator demonstrates inability to perform obligations under this
chapter or becomes financially insolvent, or upon receipt by the department of
notice of bankruptcy proceedings by the permittee.

58c3215s

§
3215.  Well location restrictions.

(a)
General rule.--Wells may not be drilled within 200 feet, or, in the
case of an unconventional gas well, 500 feet, measured horizontally from the
vertical well bore to a building or water well, existing when the copy of the
plat is mailed as required by section 3211(b) (relating to well permits) without
written consent of the owner of the building or water well. Unconventional gas
wells may not be drilled within 1,000 feet measured horizontally from the
vertical well bore to any existing water well, surface water intake, reservoir
or other  water supply extraction point used by a water purveyor without
the written consent of the water purveyor. If consent is not obtained and the
distance restriction would deprive the owner of the oil and gas rights of the
right to produce or share in the oil or gas underlying the surface tract, the
well operator shall be granted a variance from the distance restriction upon
submission of a plan identifying the additional measures, facilities or
practices as prescribed by the department to be employed during well site
construction, drilling and operations. The variance shall include additional
terms and conditions required by the department to ensure safety and protection
of affected persons and property, including insurance, bonding, indemnification
and technical requirements. Notwithstanding section 3211(e), if a variance
request has been submitted, the department may extend its permit review period
for up to 15 days upon notification to the applicant of the reasons for the
extension.

(b)
Limitation.--

(1)
No well site may be prepared or well drilled within 100 feet or, in the
case of an unconventional well, 300 feet from the vertical well bore or 100 feet
from the edge of the well site, whichever is greater, measured horizontally from
any solid blue lined stream, spring or body of water as identified on the most
current 7 1/2 minute topographic quadrangle map of the United States Geological
Survey.

(2)
The edge of the disturbed area associated with any unconventional well
site must maintain a 100-foot setback from the edge of any solid blue lined
stream, spring or body of water as identified on the most current 7 1/2 minute
topographic quadrangle map of the United States Geological Survey.

(3)
No unconventional well may be drilled within 300 feet of any wetlands
greater than one acre in size, and the edge of the disturbed area of any well
site must maintain a 100-foot setback from the boundary of the wetlands.

(4)
The department shall waive the distance restrictions upon submission of a
plan identifying additional measures, facilities or practices to be employed
during well site construction, drilling and operations necessary to protect the
waters of this Commonwealth. The waiver, if granted, shall include additional
terms and conditions required by the department necessary to protect the waters
of this Commonwealth. Notwithstanding section 3211(e), if a waiver request has
been submitted, the department may extend its permit review period for up to 15
days upon notification to the applicant of the reasons for the extension.

(c)
Impact.--On making a determination on a well permit, the department
shall consider the impact of the proposed well on public resources, including,
but not limited to:

(1)
Publicly owned parks, forests, game lands and wildlife areas.

(2)
National or State scenic rivers.

(3)
National natural landmarks.

(4)
Habitats of rare and endangered flora and fauna and other critical
communities.

(5)
Historical and archaeological sites listed on the Federal or State list of
historic places.

(6)
Sources used for public drinking supplies in accordance with subsection
(b).

(d)
Consideration of municipality and storage operator comments.--The
department may consider the comments submitted under section 3212.1 (relating to
comments by municipalities and storage operators) in making a determination on a
well permit. Notwithstanding any other law, no municipality or storage operator
shall have a right of appeal or other form of review from the department's
decision.

(d.1)
Additional protective measures.--The department may establish
additional protective measures for storage of hazardous chemicals and materials
intended to be used or that have been used on an unconventional well drilling
site within 750 feet of a solid blue lined stream, spring or body of water
identified on the most current 7 1/2 minute topographic quadrangle map of the
United States Geological Survey.

(e)
Regulation criteria.--The Environmental Quality Board shall develop by
regulation criteria:

(1)
For the department to utilize for conditioning a well permit based on its
impact to the public resources identified under subsection (c) and for ensuring
optimal development of oil and gas resources and respecting property rights of
oil and gas owners.

(2)
For appeal to the Environmental Hearing Board of a permit containing
conditions imposed by the department. The regulations shall also provide that
the department has the burden of proving that the conditions were necessary to
protect against a probable harmful impact of the public resources.

(f)
Floodplains.--

(1)
No well site may be prepared or well drilled within any floodplain if the
well site will have:

(i)
a pit or impoundment containing drilling cuttings, flowback water,
produced water or hazardous materials, chemicals or wastes within the
floodplain; or

(ii)
a tank containing hazardous materials, chemicals, condensate, wastes,
flowback or produced water within the floodway.

(2)
A well site shall not be eligible for a floodplain restriction waiver if
the well site will have a tank containing condensate, flowback or produced water
within the flood fringe unless all the tanks have adequate floodproofing in
accordance with the National Flood Insurance Program standards and accepted
engineering practices.

(3)
The department may waive restrictions upon submission of a plan that shall
identify the additional measures, facilities or practices to be employed during
well site construction, drilling and operations. The waiver, if granted, shall
impose permit conditions necessary to protect the waters of this
Commonwealth.

(4)
Best practices as determined by the department to ensure the protection of
the waters of this Commonwealth must be utilized for the storage and handling of
all water, chemicals, fuels, hazardous materials or solid waste on a well site
located in a floodplain. The department may request that the well site operator
submit a plan for the storage and handling of the materials for approval by the
department and may impose conditions or amend permits to include permit
conditions as are necessary to protect the environment, public health and
safety.

(5)
Unless otherwise specified by the department, the boundary of the
floodplain shall be as indicated on maps and flood insurance studies provided by
the Federal Emergency Management Agency. In an area where no Federal Emergency
Management Agency maps or studies have defined the boundary of the 100-year
frequency floodplain, absent evidence to the contrary, the floodplain shall
extend from:

(i)
any perennial stream up to 100 feet horizontally from the top of the bank
of the perennial stream; or

(ii)
from any intermittent stream up to 50 feet horizontally from the top of
the bank of the intermittent stream.

(g)
Applicability.--

(1)
This section shall not apply to a well proposed to be drilled on an
existing well site for which at least one well permit has been issued prior to
the effective date of this section.

(2)
Nothing in this section shall alter or abridge the terms of any contract,
mortgage or other agreement entered into prior to the effective date of this
section.

58c3215v

Special
Provisions in Appendix.  See section 4(3)(iv) of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

Cross
References.  Section 3215 is referred to in section 3212, 3212.1, 3304
of this title.

58c3216s

§
3216.  Well site restoration.

(a)
General rule.--Each oil or gas well owner or operator shall restore
the land surface within the area disturbed in siting, drilling, completing and
producing the well.

(b)
Plan.--During and after earthmoving or soil disturbing activities,
including, but not limited to, activities related to siting, drilling,
completing, producing and plugging the well, erosion and sedimentation control
measures shall be implemented in accordance with an erosion and sedimentation
control plan prepared in accordance with the act of June 22, 1937 (P.L.1987,
No.394), known as The Clean Streams Law.

(c)
Pits, drilling supplies and equipment.--Within nine months after
completion of drilling of a well, the owner or operator shall restore the well
site, remove or fill all pits used to contain produced fluids or industrial
wastes and remove all drilling supplies and equipment not needed for production.
Drilling supplies and equipment not needed for production may be stored on the
well site if express written consent of the surface landowner is obtained.

(d)
Items related to production or storage.--Within nine months after
plugging a well, the owner or operator shall remove all production or storage
facilities, supplies and equipment and restore the well site.

(e)
Clean Streams Law.--Restoration activities required by this chapter or
in regulations promulgated under this chapter shall also comply with all
applicable provisions of The Clean Streams Law.

(f)
Violation of chapter.--Failure to restore the well site as required in
this chapter or regulations promulgated under this chapter constitutes a
violation of this chapter.

(g)
Extension.--

(1)
The restoration period may be extended by the department for an additional
period of time not to exceed two years upon demonstration by the well owner or
operator that:

(i)
the extension will result in less earth disturbance, increased water reuse
or more efficient development of the resources; or

(ii)
site restoration cannot be achieved due to adverse weather conditions or a
lack of essential fuel, equipment or labor.

(2)
The demonstration under paragraph (1) shall do all of the following:

(i)
Include a site restoration plan that shall provide for:

(A)
the timely removal or fill of all pits used to contain produced fluids or
industrial wastes;

(B)
the removal of all drilling supplies and equipment not needed for
production;

(C)
the stabilization of the well site that shall include interim
postconstruction storm water management best management practices; or

(D)
other measures to be employed to minimize accelerated erosion and
sedimentation in accordance with The Clean Streams Law.

(ii)
Provide for returning the portions of the site not occupied by production
facilities or equipment to approximate original contours and making them capable
of supporting the uses that existed prior to drilling the well.

(3)
The department may condition an extension under this subsection as is
necessary in accordance with The Clean Streams Law.

(h)
Definition.--As used in this section, the term "well site" means areas
occupied by all equipment or facilities necessary for or incidental to drilling,
production or plugging a well.

58c3216v

Special
Provisions in Appendix.  See section 4(3)(v) of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

58c3217s

§
3217.  Protection of fresh groundwater and casing requirements.

(a)
General rule.--To aid in protection of fresh groundwater, well
operators shall control and dispose of brines produced from the drilling,
alteration or operation of an oil or gas well in a manner consistent with the
act of June 22, 1937 (P.L.1987, No.394), known as The Clean Streams Law, or any
regulation promulgated under The Clean Streams Law.

(b)
Casing.--To prevent migration of gas or fluids into sources of fresh
groundwater and pollution or diminution of fresh groundwater, a string or
strings of casing shall be run and permanently cemented in each well drilled
through the fresh water-bearing strata to a depth and in a manner prescribed by
regulation by the department.

(c)
Procedure when coal has been removed.--If a well is drilled at a
location where coal has been removed from one or more coal seams, the well shall
be drilled and cased to prevent migration of gas or fluids into the seam from
which coal has been removed in a manner prescribed by regulation of the
department. The department and the coal operator, owner or lessee shall be given
at least 72 hours' notice prior to commencement of work protecting the mine.

(d)
Procedure when coal has not been removed.--If a well is drilled at a
location where the coal seam has not been removed, the well shall be drilled to
a depth and of a size sufficient to permit placement of casing, packers in and
vents on the hole at the points and in the manner prescribed by regulation to
exclude gas or fluids from the coal seam, except gas or fluids found naturally
in the seam itself, and to enable monitoring the integrity of the production
casing.

58c3217v

Cross
References.  Section 3217 is referred to in sections 3211, 3252 of this
title.

58c3218s

§
3218.  Protection of water supplies.

(a)
General rule.--In addition to the requirements of subsection (c.1), a
well operator who affects a public or private water supply by pollution or
diminution shall restore or replace the affected supply with an alternate source
of water adequate in quantity or quality for the purposes served by the supply.
The department shall ensure that the quality of a restored or replaced water
supply meets the standards established under the act of May 1, 1984 (P.L.206,
No.43), known as the Pennsylvania Safe Drinking Water Act, or is comparable to
the quality of the water supply before it was affected by the operator if that
water supply exceeded those standards. The Environmental Quality Board shall
promulgate regulations necessary to meet the requirements of this
subsection.

(b)
Pollution or diminution of water supply.--A landowner or water
purveyor suffering pollution or diminution of a water supply as a result of the
drilling, alteration or operation of an oil or gas well may so notify the
department and request that an investigation be conducted. Within ten days of
notification, the department shall investigate the claim and make a
determination within 45 days following notification. If the department finds
that the pollution or diminution was caused by drilling, alteration or operation
activities or if it presumes the well operator responsible for pollution under
subsection (c), the department shall issue orders to the well operator necessary
to assure compliance with subsection (a), including orders requiring temporary
replacement of a water supply where it is determined that pollution or
diminution may be of limited duration.

(b.1)
(Reserved).

(b.2)
Telephone number.--The department shall establish a single Statewide
toll-free telephone number that persons may use to report cases of water
contamination which may be associated with the development of oil and gas
resources. The Statewide toll-free telephone number shall be provided in a
conspicuous manner in the notification required under section 3211(b) (relating
to well permits) and on the department's Internet website.

(b.3)
Responses.--The department shall develop appropriate administrative
responses to calls received on the Statewide toll-free telephone number for
water contamination.

(b.4)
Website.--The department shall publish, on its Internet website, lists
of confirmed cases of subterranean water supply contamination that result from
hydraulic fracturing.

(b.5)
Facility operation qualifications.--The department shall ensure that a
facility which seeks a National Pollutant Discharge Elimination System permit
for the purposes of treating and discharging wastewater originating from oil and
gas activities into waters of this Commonwealth is operated by a competent and
qualified individual.

(c)
Presumption.--Unless rebutted by a defense established in subsection
(d), it shall be presumed that a well operator is responsible for pollution of a
water supply if:

(1)
except as set forth in paragraph (2):

(i)
the water supply is within 1,000 feet of an oil or gas well; and

(ii)
the pollution occurred within six months after completion of drilling or
alteration of the oil or gas well; or

(2)
in the case of an unconventional well:

(i)
the water supply is within 2,500 feet of the unconventional vertical well
bore; and

(ii)
the pollution occurred within 12 months of the later of completion,
drilling, stimulation or alteration of the unconventional well.

(c.1)
Requirement.--If the affected water supply is within the rebuttable
presumption area as provided in subsection (c) and the rebuttable presumption
applies, the operator shall provide a temporary water supply if the water user
is without a readily available alternative source of water. The temporary water
supply provided under this subsection shall be adequate in quantity and quality
for the purposes served by the supply.

(d)
Defenses.--To rebut the presumption established under subsection (c),
a well operator must affirmatively prove any of the following:

(1)
except as set forth in paragraph (2):

(i)
the pollution existed prior to the drilling or alteration activity as
determined by a predrilling or prealteration survey;

(ii)
the landowner or water purveyor refused to allow the operator access to
conduct a predrilling or prealteration survey;

(iii)
the water supply is not within 1,000 feet of the well;

(iv)
the pollution occurred more than six months after completion of drilling
or alteration activities; and

(v)
the pollution occurred as the result of a cause other than the drilling or
alteration activity; or

(2)
in the case of an unconventional well:

(i)
the pollution existed prior to the drilling, stimulation or alteration
activity as determined by a predrilling or prealteration survey;

(ii)
the landowner or water purveyor refused to allow the operator access to
conduct a predrilling or prealteration survey;

(iii)
the water supply is not within 2,500 feet of the unconventional vertical
well bore;

(iv)
the pollution occurred more than 12 months after completion of drilling or
alteration activities; or

(v)
the pollution occurred as the result of a cause other than the drilling or
alteration activity.

(e)
Independent certified laboratory.--An operator electing to preserve a
defense under subsection (d)(1) or (2) shall retain an independent certified
laboratory to conduct a predrilling or prealteration survey of the water supply.
A copy of survey results shall be submitted to the department and the landowner
or water purveyor in the manner prescribed by the department.

(e.1)
Notice.--An operator of an unconventional well must provide written
notice to the landowner or water purveyor indicating that the presumption
established under subsection (c) may be void if the landowner or water purveyor
refused to allow the operator access to conduct a predrilling or prealteration
survey. Proof of written notice to the landowner or water purveyor shall be
provided to the department for the operator to retain the protections under
subsection (d)(2)(ii). Proof of written notice shall be presumed if provided in
accordance with section 3212(a) (relating to permit objections).

(f)
Other remedies preserved.--Nothing in this section shall prevent a
landowner or water purveyor claiming pollution or diminution of a water supply
from seeking any other remedy at law or in equity.

58c3218v

Special
Provisions in Appendix.  See section 4(3)(vi) of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

Cross
References.  Section 3218 is referred to in sections 3211, 3252 of this
title.

58c3218.1s

§
3218.1.  Notification to public drinking water systems.

Upon
receiving notification of a spill, the department shall, after investigating the
incident, notify any public drinking water facility that could be affected by
the event that the event occurred. The notification shall contain a brief
description of the event and any expected impact on water quality.

58c3218.1v

Special
Provisions in Appendix.  See section 4(3)(vii) of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

58c3218.2s

§
3218.2.  Containment for unconventional wells.

(a)
Sites.--Unconventional well sites shall be designed and constructed to
prevent spills to the ground surface or spills off the well site. Containment
practices shall meet all of the following:

(1)
Be instituted on the well site during both drilling and hydraulic
fracturing operations.

(2)
Be sufficiently impervious and able to contain spilled material or waste
until it can be removed or treated.

(3)
Be compatible with the waste material or waste stored or used within the
containment.

(4)
Additional practices as promulgated in regulation by the Environmental
Quality Board.

(b)
Plan.--The applicant shall submit a plan to the department describing
the containment practices to be utilized and the area of the well site where
containment systems will be employed. The plan shall include a description of
the equipment to be kept onsite during drilling and hydraulic fracturing
operations to prevent a spill from leaving the well site.

(c)
Materials stored.--Containment systems shall be used wherever any of
the following are stored:

(1)
Drilling mud.

(2)
Hydraulic oil.

(3)
Diesel fuel.

(4)
Drilling mud additives.

(5)
Hydraulic fracturing additives.

(6)
Hydraulic fracturing flowback.

(d)
Capacity.--Areas where any additives, chemicals, oils or fuels are to
be stored must have sufficient containment capacity to hold the volume of the
largest container stored in the area plus 10% to allow for precipitation, unless
the container is equipped with individual secondary containment.

(e)
Definition.--As used in this section, the term "well site" means areas
occupied by all equipment or facilities necessary for or incidental to drilling,
production or plugging a well.

58c3218.2v

Special
Provisions in Appendix.  See section 4(3)(viii) of Act 13 of 2012 in
the appendix to this title for special provisions relating to continuation of
prior law.

58c3218.3s

§
3218.3.  Transportation records regarding wastewater fluids.

(a)
Requirements.--A well operator of an unconventional well that
transports wastewater fluids shall do all of the following:

(1)
Maintain records for five years, in accordance with regulations under
subsection (b) and on a form approved by the department, of the amount and
destination of the fluids transported.

(2)
Make the records under paragraph (1) available to the department upon
request.

(b)
Recordkeeping.--Recordkeeping requirements shall be determined by the
department and shall include the following:

(1)
The number of gallons of wastewater fluids produced in the drilling,
stimulation or alteration of a well.

(2)
Upon completion of the well, the name of the person or company that
transported the wastewater fluids to a disposal site or to a location other than
the well site.

(3)
Each location where wastewater fluids were disposed of or transported and
the volumes that were disposed of at the location other than the well site.

(4)
The method of disposal.

58c3218.3v

Special
Provisions in Appendix.  See section 4(3)(ix) of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

58c3218.4s

§
3218.4.  Corrosion control requirements.

(a)
Pipelines.--All buried metallic pipelines shall be installed and
placed in operation in accordance with 49 CFR Pt. 192 Subpt. I (relating to
requirements for corrosion control).

(b)
Tanks.--Permanent aboveground and underground tanks must comply with
the applicable corrosion control requirements in the department's storage tank
regulations.

(c)
Other structures.--For all other buried metallic structures, including
well casings, the Environmental Quality Board shall promulgate regulations
setting forth methods of determining the need for corrosion protection and
installing necessary corrosion protection.

(d)
Procedures.--The corrosion control procedures under subsections (a)
and (b) must be carried out by or under the direction of a person qualified in
corrosion methods.

(e)
Compliance.--An operator of a new, replaced, relocated or otherwise
changed pipeline must be in compliance with the applicable requirements of this
section by the date the pipeline goes into service.

58c3218.4v

Special
Provisions in Appendix.  See section 4(3)(x) of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

58c3218.5s

§
3218.5.  Gathering lines.

(a)
Requirement.--Owners and operators of gathering lines shall comply
with section 2(5)(i.1) of the act of December 10, 1974 (P.L.852, No.287),
referred to as the Underground Utility Line Protection Law.

(b)
Definition.--As used in this section, the term "gathering line" means
a pipeline used to transport natural gas from a production facility to a
transmission line.

58c3218.5v

Special
Provisions in Appendix.  See section 4(3)(xi) of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

58c3219s

§
3219.  Use of safety devices.

Any
person engaged in drilling an oil or gas well shall equip it with casings of
sufficient strength, and other safety devices as are necessary, in the manner
prescribed by regulation of the department, and shall use every effort and
endeavor effectively to prevent blowouts, explosions and fires.

58c3219v

Cross
References.  Section 3219 is referred to in section 3252 of this
title.

58c3219.1s

§
3219.1.  Well control emergency response.

(a)
Contracts.--The department may enter into contracts with well control
specialists in order to provide adequate emergency response services in the
event of a well control emergency. The department shall make available, upon
request by a county, information relating to contracts with well control
specialists.

(b)
Civil immunity.--Except as set forth in subsection (c), a well control
specialist with which the department has entered into a contract under
subsection (a) shall be immune from civil liability for actions taken in good
faith to carry out its contractual obligations.

(c)
Nonapplicability.--Subsection (b) shall not apply to damage arising
from any of the following:

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

(2)
An intentional tort.

(3)
Gross negligence.

58c3219.1v

Special
Provisions in Appendix.  See section 4(3)(xii) of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

58c3220s

§
3220.  Plugging requirements.

(a)
General rule.--Upon abandoning a well, the owner or operator shall
plug it in the manner prescribed by regulation of the department to stop
vertical flow of fluids or gas within the well bore, unless the department has
granted inactive status for the well or it has been approved by the department
as an orphan well. If the department determines that a prior owner or operator
received economic benefit, other than economic benefit derived only as a
landowner or from a royalty interest, after April 18, 1979, from an orphan well
or an unregistered well, the owner or operator shall be responsible for plugging
the well. In the case of a gas well penetrating a workable coal seam which was
drilled prior to January 30, 1956, or which was permitted after that date but
not plugged in accordance with this chapter, if the owner or operator or a coal
operator or an agent proposes to plug the well to allow mining through it, the
gas well shall be cleaned to a depth of at least 200 feet below the coal seam
through which mining is proposed and, unless impracticable, to a point 200 feet
below the deepest mineable coal seam. The gas well shall be plugged from that
depth in accordance with section 13 of the act of December 18, 1984 (P.L.1069,
No.214), known as the Coal and Gas Resource Coordination Act, and the
regulations of the department.

(b)
Areas underlain by coal.--Prior to the plugging and abandonment of a
well in an area underlain by a workable coal seam, the well operator or owner
shall notify the department and the coal operator, lessee or owner and submit a
plat, on a form to be furnished by the department, showing the location of the
well and fixing the date and time plugging will commence, which shall be not
less than three working days, nor more than 30 days, after the notice is
received, to permit representatives of the persons notified to be present at the
plugging. Notice and the right to be present may be waived by the department and
the coal operator, lessee or owner, but waiver by the coal operator, lessee or
owner shall be in writing and a copy shall be attached to the notice of
abandonment filed with the department under this section. Whether or not
representatives attend, if the well operator has fully complied with this
section, the well operator may proceed, at the time fixed, to plug the well in
the manner prescribed by regulation of the department. When plugging has been
completed, a certificate shall be prepared and signed, on a form to be furnished
by the department, by two experienced and qualified people who participated in
the work setting forth the time and manner in which the well was plugged. One
copy of the certificate shall be mailed to each coal operator, lessee or owner
to whom notice was given by certified mail and another shall be mailed to the
department.

(c)
Abandoned wells.--Prior to abandonment of a well, except an
uncompleted bore hole plugged immediately upon suspension of drilling in an area
not underlain by a workable coal seam, the well operator shall notify the
department of the intention to plug and abandon the well and submit a plat, on a
form to be furnished by the department, showing the location of the well and
fixing the date and time at which plugging will commence, which shall be not
less than three working days, nor more than 30 days, after the notice is
received, to permit a department representative to be present at the plugging.
The notice or waiting period may be verbally waived by the department. In
noncoal areas where more than one well has been drilled as part of the same
development project and the wells are now to be plugged, the department shall be
given three working days' notice prior to plugging the first well of the
project, subject to waiver of notice described in subsection (b). In the
plugging of subsequent wells, no additional notice shall be required if plugging
on the project is continuous. If plugging of subsequent wells is delayed for any
reason, notice shall be given to the department of continuation of the project.
Whether or not a representative attends, if the well operator has fully complied
with this section, the well operator may proceed, at the time fixed, to plug the
well in the manner prescribed by regulation of the department. When plugging has
been completed, a certificate shall be prepared, on a form to be furnished by
the department, by two experienced and qualified people who participated in the
work setting forth the time and manner in which the well was plugged. A copy of
the certificate shall be mailed to the department.

(d)
Wells abandoned upon completion of drilling.--If a well is to be
abandoned immediately after completion of drilling, the well operator shall give
at least 24 hours' notice by telephone, confirmed by certified mail, to the
department and to the coal operator, lessee or owner, if any, fixing the date
and time when plugging will commence. Notice and the right to be present may be
waived by the department and the coal operator, lessee or owner, if any. Whether
or not representatives of the department or coal operator, lessee or owner, if
any, attend, if the well operator has fully complied with the requirements of
this section, the well operator may proceed, at the time fixed, to plug the well
in the manner provided by regulation of the department. The well operator shall
prepare the certificate of plugging and mail copies of the same as provided in
subsection (b).

(e)
Orphan wells.--If a well is an orphan well or abandoned without
plugging or if a well is in operation but not registered under section 3213
(relating to well registration and identification), the department may enter
upon the well site and plug the well and sell equipment, casing and pipe at the
site which may have been used in production of the well in order to recover the
costs of plugging. The department shall make an effort to determine ownership of
a well which is in operation but has not been registered and provide written
notice to the owner of pending action under this subsection. If the department
cannot determine ownership within 30 days, it may proceed under this subsection.
Costs of plugging shall have priority over all liens on equipment, casing and
pipe, and the sale shall be free and clear of those liens to the extent that the
cost of plugging exceeds the sale price. If the amount obtained for casing and
pipe salvaged at the site is inadequate to pay for plugging, the owner or
operator of the abandoned or unregistered well shall be liable for the
additional costs.

(f)
Definition.--For purposes of this section, the term "owner" does not
include the owner or possessor of surface real property, on which an abandoned
well is located, who did not participate or incur costs in and had no right of
control over the drilling or extraction operation of the abandoned well.

58c3220v

Cross
References.  Section 3220 is referred to in sections  3203, 3211,
3214, 3233, 3234, 3252, 3259 of this title.

58c3221s

§
3221.  Alternative methods.

A
well operator may request permission to use a method or material other than
those required by this chapter and applicable regulations for casing, plugging
or equipping a well in an application to the department which describes the
proposed alternative in reasonable detail and indicates the manner in which it
will accomplish the goals of this chapter. Notice of filing of the application
shall be given by the well operator by certified mail to any affected coal
operators, who may, within 15 days after the notice, file objections to the
proposed alternative method or material. If no timely objections are filed or
raised by the department, the department shall determine whether to allow use of
the proposed alternative method or material.

58c3221v

Cross
References.  Section 3221 is referred to in sections  3233, 3234
of this title.

58c3222s

§
3222.  Well reporting requirements.

(a)
General rule.--Except as provided in subsection (a.1),  each well
operator shall file with the department, on a form provided by the department,
an annual report specifying the amount of production, on the most well-specific
basis available, along with the status of each well, except that in subsequent
years only changes in status must be reported. The Commonwealth may utilize
reported information in enforcement proceedings, in making designations or
determinations under section 1927-A of the act of April 9, 1929 (P.L.177,
No.175), known as The Administrative Code of 1929, or in aggregate form for
statistical purposes.

(a.1)
Unconventional wells.--Each operator of an unconventional well shall
file with the department, on a form provided by the department, a semiannual
report specifying the amount of production on the most well-specific basis
available. The initial report under this subsection shall be filed by August 15
and shall include production data from the preceding calendar year and specify
the status of each well. In subsequent reports, only changes in status must be
reported. Subsequent semiannual reports shall be filed with the department on or
before February 15 and August 15 of each year and shall include production data
from the preceding reporting period. The Commonwealth may utilize reported
information in enforcement proceedings, in making designations or determinations
under section 1927-A of The Administrative Code of 1929 or in aggregate form for
statistical purposes. Beginning November 1, 2010, the department shall make the
reports available on its publicly accessible Internet website. Costs incurred by
the department to comply with the requirements of this subsection shall be paid
out of the fees collected under section 3211(d) (relating to well permits).

(b)
Collection of data.--

(1)
Well operators shall maintain a record of each well drilled or
altered.

(2)
A record containing the information required by the department shall be
filed within 30 days after drilling of a well.

(3)
Within 30 days after completion of the well, when the well is capable of
production, a completion report containing any additional required information
shall be filed and shall be maintained by the department.

(4)
Upon request of the department, the well operator shall, within 90 days of
completion or recompletion of drilling, submit a copy of any electrical,
radioactive or other standard industry logs which have been run.

(5)
Upon request by the department within one year, the well operator shall
file a copy of drill stem test charts, formation water analysis, porosity,
permeability or fluid saturation measurements, core analysis and lithologic log
or sample description or other similar data as compiled. No information shall be
required unless the well operator had it compiled in the ordinary course of
business, and interpretation of data under this paragraph is not required to be
filed.

(b.1)
Report contents.--

(1)
The completion report shall contain the operator's stimulation record. The
stimulation record shall include all of the following:

(i)
A descriptive list of the chemical additives in the stimulation fluids,
including any acid, biocide, breaker, brine, corrosion inhibitor, crosslinker,
demulsifier, friction reducer, gel, iron control, oxygen scavenger, Ph adjusting
agent, proppant, scale inhibitor and surfactant.

(ii)
The trade name, vendor and a brief descriptor of the intended use or
function of each chemical additive in the stimulation fluid.

(iii)
A list of the chemicals intentionally added to the stimulation fluid, by
name and chemical abstract service number.

(iv)
The maximum concentration, in percent by mass, of each chemical
intentionally added to the stimulation fluid.

(v)
The total volume of the base fluid.

(vi)
A list of water sources used under the approved water management plan and
the volume of water used.

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

(viii)
The total volume of recycled water used.

(2)
The well record shall identify all of the following:

(i)
Whether methane was encountered in other than a target formation.

(ii)
The country of origin and manufacture of tubular steel products used in
the construction of the well.

(b.2)
Trade secret or confidential proprietary information.--When an
operator submits its stimulation record under subsection (b.1), the operator may
designate specific portions of the stimulation record as containing a trade
secret or confidential proprietary information. The department shall prevent
disclosure of a designated trade secret or confidential proprietary information
to the extent permitted by the act of February 14, 2008 (P.L.6, No.3), known as
the Right-to-Know Law or other applicable State law.

(c)
Drill cuttings and core samples.--Upon notification by the department
prior to commencement of drilling, the well operator shall collect any
additional data specified by the department, including representative drill
cuttings and samples from cores taken and any other geological information that
the operator reasonably can compile. Interpretation of the data is not required
to be filed.

(d)
Retention and filing.--Data required under subsection (b)(5) and drill
cuttings required under subsection (c) shall be retained by the well operator
and filed with the department no more than three years after completion of the
well. Upon request, the department shall extend the deadline up to five years
from the date of completion of the well. The department shall be entitled to
utilize information collected under this subsection in enforcement proceedings,
in making designations or determinations under section 1927-A of The
Administrative Code of 1929 and in aggregate form for statistical purposes.

58c3222v

Special
Provisions in Appendix.  See section 4(3)(xiii) of Act 13 of 2012 in
the appendix to this title for special provisions relating to continuation of
prior law.

58c3222.1s

§
3222.1.  Hydraulic fracturing chemical disclosure requirements.

(a)
Applicability.--This section applies to hydraulic fracturing of
unconventional wells performed on or after the effective date of this
section.

(b)
Required disclosures.--

(1)
Except as provided under subsection (d), a service provider who performs
any part of a hydraulic fracturing treatment and a vendor who provides hydraulic
fracturing additives directly to the operator for a hydraulic fracturing
treatment shall furnish the operator with the information required under
paragraph (2) not later than 60 days after the commencement of the hydraulic
fracturing.

(2)
Within 60 days following the conclusion of hydraulic fracturing, the
operator of the well shall complete the chemical disclosure registry form and
post the form on the chemical disclosure registry in accordance with regulations
promulgated under this chapter in a format that does not link chemicals to their
respective hydraulic fracturing additive.

(3)
If the vendor, service provider or operator claims that the specific
identity of a chemical or the concentration of a chemical, or both, are a trade
secret or confidential proprietary information, the operator of the well must
indicate that on the chemical disclosure registry form, and the vendor, service
provider or operator shall submit a signed written statement that the record
contains a trade secret or confidential proprietary information. If a chemical
is a trade secret, the operator shall include in the chemical registry
disclosure form the chemical family or similar description associated with the
chemical.

(4)
At the time of claiming that any of the following are entitled to
protection under paragraph (3), a vendor, service provider or operator shall
file a signed written statement that the record contains a trade secret or
confidential proprietary information:

(i)
A hydraulic fracturing additive.

(ii)
A chemical.

(iii)
A concentration.

(iv)
Any combination of subparagraphs (i), (ii) and (iii).

(5)
Unless the information is entitled to protection as a trade secret or
confidential proprietary information, information submitted to the department or
posted to the chemical disclosure registry shall be a public record.

(6)
By January 1, 2013, the department shall determine whether the chemical
disclosure registry allows the department and the public to search and sort
Pennsylvania chemical disclosure information by geographic area, chemical
ingredient, chemical abstract service number, time period and operator. If the
department determines that there is no reasonable assurance that the registry
will allow for searches by geographic area, chemical ingredient, chemical
abstract service number, time period and operator, at a date acceptable to the
department, the department shall investigate the feasibility of making the
information under paragraph (2) available on the department's Internet website
in a manner that will allow the department and the public to search and sort the
information by geographic area, chemical ingredient, chemical abstract service
number, time period and operator and shall report to the General Assembly
whether additional resources may be needed to implement the searches and
sorting.

(7)
A vendor shall not be responsible for any inaccuracy in information that
is provided to the vendor by a third-party manufacturer.

(8)
A service provider shall not be responsible for any inaccuracy in
information that is provided to the service provider by the vendor.

(9)
An operator shall not be responsible for any inaccuracy in information
provided to the operator by the vendor or service provider or manufacturer.

(10)
A vendor, service company or operator shall identify the specific identity
and amount of any chemicals claimed to be a trade secret or confidential
proprietary information to any health professional who requests the information
in writing if the health professional executes a confidentiality agreement and
provides a written statement of need for the information indicating all of the
following:

(i)
The information is needed for the purpose of diagnosis or treatment of an
individual.

(ii)
The individual being diagnosed or treated may have been exposed to a
hazardous chemical.

(iii)
Knowledge of information will assist in the diagnosis or treatment of an
individual.

(11)
If a health professional determines that a medical emergency exists and
the specific identity and amount of any chemicals claimed to be a trade secret
or confidential proprietary information are necessary for emergency treatment,
the vendor, service provider or operator shall immediately disclose the
information to the health professional upon a verbal acknowledgment by the
health professional that the information may not be used for purposes other than
the health needs asserted and that the health professional shall maintain the
information as confidential. The vendor, service provider or operator may
request, and the health professional shall provide upon request, a written
statement of need and a confidentiality agreement from the health professional
as soon as circumstances permit, in conformance with regulations promulgated
under this chapter.

(c)
Disclosures not required.--Notwithstanding any other provision of this
chapter, a vendor, service provider or operator shall not be required to do any
of the following:

(1)
Disclose chemicals that are not disclosed to it by the manufacturer,
vendor or service provider.

(2)
Disclose chemicals that were not intentionally added to the stimulation
fluid.

(3)
Disclose chemicals that occur incidentally or are otherwise
unintentionally present in trace amounts, may be the incidental result of a
chemical reaction or chemical process or may be constituents of naturally
occurring materials that become part of a stimulation fluid.

(d)
Trade secrets and confidential proprietary information.--

(1)
Notwithstanding any other provision of this chapter, a vendor, service
company or operator shall not be required to disclose trade secrets or
confidential proprietary information to the chemical disclosure registry.

(2)
The following shall apply:

(i)
If the specific identity of a chemical, the concentration of a chemical or
both the specific identity and concentration of a chemical are claimed to be a
trade secret or confidential proprietary information, the vendor, service
provider or operator may withhold the specific identity, the concentration, or
both the specific identity and concentration, of the chemical from the
information provided to the chemical disclosure registry.

(ii)
Nothing under this paragraph shall prohibit any of the following from
obtaining from a vendor, service provider or operator information that may be
needed to respond to a spill or release:

(A)
The department.

(B)
A public health official.

(C)
An emergency manager.

(D)
A responder to a spill, release or a complaint from a person who may have
been directly and adversely affected or aggrieved by the spill or release.

(iii)
Upon receipt of a written statement of need for the information under
subparagraph (ii), the information shall be disclosed by the vendor, service
provider or operator to the requesting official or entity authorized under
subparagraph (ii) and shall not be a public record.

(e)
Disclosure prevented.--The department shall prevent disclosure of
trade secrets or confidential proprietary information under this section
pursuant to the requirements of the Right-to-Know Law or other applicable State
law.

(f)
Well reporting.--Notwithstanding any other provision of law, nothing
in this section shall be construed to reduce or modify the disclosure
requirements for conventional well operators contained in 25 Pa. Code Ch. 78
Subch. E (relating to well reporting).

58c3222.1v

Special
Provisions in Appendix.  See section 4(3)(xiv) of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

58c3223s

§
3223.  Notification and effect of well transfer.

The
owner or operator of a well shall notify the department in writing within 30
days, in a form directed by regulation, of sale, assignment, transfer,
conveyance or exchange by or to the owner of the well. A transfer shall not
relieve the well owner or operator of an obligation accrued under this chapter,
nor shall it relieve the owner or operator of an obligation to plug the well
until the requirements of section 3225 (relating to bonding) have been met, at
which time the transferring owner or operator shall be relieved from all
obligations under this chapter, including the obligation to plug the well.

58c3223v

Cross
References.  Section 3223 is referred to in section  3225 of this
title.

58c3224s

§
3224.  Coal operator responsibilities.

(a)
General rule.--At any time prior to removing coal or other underground
materials from, or extending the workings in, a coal mine within 500 feet of an
oil or gas well of which the coal operator has knowledge, or within 500 feet of
an approved well location of which the coal operator has knowledge, the coal
operator, by certified mail, shall forward to or file with the well operator and
the department a copy of the relevant part of all maps and plans which it is
presently required by law to prepare and file with the department, showing the
pillar which the coal operator proposes to leave in place around each oil or gas
well in the projected workings. Thereafter, the coal operator may proceed with
mining operations in the manner projected on the maps and plans, but the
operator may not remove coal or cut a passageway within 150 feet of the well or
approved well location without written approval under this section. If, in the
opinion of the well operator or the department, the plan indicates that the
proposed pillar is inadequate to protect either the integrity of the well or
public health and safety, the affected well operator shall attempt to reach an
agreement with the coal operator on a suitable pillar, subject to approval of
the department. Upon failure to agree, the well operator may, within ten days
after receipt of the proposed plan under this section, file objections under
section 3251 (relating to conferences), indicating the size of the pillar to be
left as to each well. If objections are not timely filed and the department has
none, the department shall grant approval, reciting that maps and plans have
been filed, no objections have been made thereto and the pillar proposed to be
left for each well is approved in the manner as projected.

(b)
Objections.--If an objection is filed by the well operator or raised
by the department, the department shall order that a conference be held under
section 3251 within ten days of the filing of objections. At the conference, the
coal operator and the person who has objected shall attempt to agree on a
proposed plan, showing the pillar to be left around each well, which will
satisfy the objections and receive department approval. If an agreement is
reached, the department shall grant approval to the coal operator, reciting that
a plan has been filed and the pillar to be left for each well is approved
pursuant to the agreement. If an agreement is not reached on a plan showing the
pillar to be left with respect to a well, the department, by appropriate order,
shall determine the pillar to be left with respect to the well. In a proceeding
under this section, the department shall follow as nearly as is possible the
original plan filed by the coal operator. The department shall not require the
coal operator to leave a pillar in excess of 100 feet in radius, except that the
department may require a pillar of up to 150 feet in radius if the existence of
unusual conditions is established. Pillars determined by the department shall be
shown on maps or plans on file with the department as provided in subsection
(a), and the department shall approve the pillar to be left for each well.

(c)
Pillars of reduced size.--Application may be made at any time to the
department by the coal operator to leave a pillar of a size smaller than shown
on the plan approved or determined by the department under this section. If an
application is filed, the department shall:

(1)
follow the appropriate procedure under subsection (a) or (b);

(2)
by appropriate order, determine a plan involving a pillar of a smaller
size as to any well covered by the application; and

(3)
have the discretion to grant approval for the pillar to be left with
respect to each well.

(d)
Violation.--No coal operator, without written approval of the
department after notice and opportunity for a hearing under this section, shall
remove coal or cut a passageway so as to leave a pillar of smaller size, with
respect to an oil or gas well, than that approved by the department under this
chapter.

(e)
Limitation.--With regard to a coal pillar required by law to be left
around a well drilled prior to April 18, 1985, nothing in this chapter shall be
construed to:

(1)
require a well operator to pay for the coal pillar;

(2)
affect a right which a coal operator may have had prior to April 18, 1985,
to obtain payment for the coal pillar; or

(3)
affect a duty or right which a storage operator or landowner may have had
prior to April 18, 1985, to pay or not pay for the coal pillar.

(f)
Mining through plugged wells.--A coal operator who intends to mine
through a plugged oil or gas well or otherwise completely remove any pillar from
around that well shall file a plan under subsection (a) which shall be subject
to all of the provisions of this section. No coal operator may mine through a
plugged oil or gas well of which he has knowledge until written approval has
been granted by the department in accordance with this section. The Bureau of
Deep Mine Safety in the department shall have the authority to establish
conditions under which the department may approve a coal operator's plan to mine
through a plugged oil or gas well.

58c3225s

§
3225.  Bonding.

(a)
General rule.--The following shall apply:

(1)
Except as provided in subsection (d), upon filing an application for a
well permit and before continuing to operate an oil or gas well, the owner or
operator of the well shall file with the department a bond covering the well and
well site on a form to be prescribed and furnished by the department. A bond
filed with an application for a well permit shall be payable to the Commonwealth
and conditioned upon the operator's faithful performance of all drilling, water
supply replacement, restoration and plugging requirements of this chapter. A
bond for a well in existence on April 18, 1985, shall be payable to the
Commonwealth and conditioned upon the operator's faithful performance of all
water supply replacement, restoration and plugging requirements of this chapter.
The amount of the bond required shall be in the following amounts and may be
adjusted by the Environmental Quality Board every two years to reflect the
projected costs to the Commonwealth of plugging the well:

(i)
For wells with a total well bore length less than 6,000 feet:

(A)
For operating up to 50 wells, $4,000 per well, but no bond may be required
under this clause in excess of $35,000.

(B)
For operating 51 to 150 wells, $35,000 plus $4,000 per well for each well
in excess of 50 wells, but no bond may be required under this clause in excess
of $60,000.

(C)
For operating 151 to 250 wells, $60,000 plus $4,000 per well for each well
in excess of 150 wells, but no bond may be required under this clause in excess
of $100,000.

(D)
For operating more than 250 wells, $100,000 plus $4,000 per well for each
well in excess of 250 wells, but no bond may be required under this clause in
excess of $250,000.

(ii)
For wells with a total well bore length of at least 6,000 feet:

(A)
For operating up to 25 wells, $10,000 per well, but no bond may be
required under this clause in excess of $140,000.

(B)
For operating 26 to 50 wells, $140,000 plus $10,000 per well for each well
in excess of 25 wells, but no bond may be required under this clause in excess
of $290,000.

(C)
For operating 51 to 150 wells, $290,000 plus $10,000 per well for each
well in excess of 50 wells, but no bond may be required under this clause in
excess of $430,000.

(D)
For operating more than 150 wells, $430,000 plus $10,000 per well for each
well in excess of 150 wells, but no bond may be required under this clause in
excess of $600,000.

(2)
In lieu of individual bonds for each well, an owner or operator may file a
blanket bond for the applicable amount under paragraph (1), on a form prepared
by the department, covering all of its wells in this Commonwealth, as enumerated
on the bond form.

(3)
Liability under the bond shall continue until the well has been properly
plugged in accordance with this chapter and for a period of one year after
filing of the certificate of plugging with the department. Each bond shall be
executed by the operator and a corporate surety licensed to do business in this
Commonwealth and approved by the secretary. In lieu of a corporate surety, the
operator may deposit with the department:

(i)
cash;

(ii)
certificates of deposit or automatically renewable irrevocable letters of
credit, from financial institutions chartered or authorized to do business in
this Commonwealth and regulated and examined by the Commonwealth or a Federal
agency, which may be terminated at the end of a term only upon 90 days' prior
written notice by the financial institution to the permittee and the
department;

(iii)
negotiable bonds of the United States Government or the Commonwealth, the
Pennsylvania Turnpike Commission, the General State Authority, the State Public
School Building Authority or any municipality within the Commonwealth; or

(iv)
United States Treasury Bonds issued at a discount without a regular
schedule of interest payments to maturity, otherwise known as Zero Coupon Bonds,
having a maturity date of not more than ten years after the date of purchase and
at the maturity date having a value of not less than the applicable amount under
paragraph (1). The cash deposit, certificate of deposit, amount of the
irrevocable letter of credit or market value of the securities shall be equal at
least to the sum of the bond.

(4)
The secretary shall, upon receipt of a deposit of cash, letters of credit
or negotiable bonds, immediately place the same with the State Treasurer, whose
duty it shall be to receive and hold the same in the name of the Commonwealth,
in trust, for the purpose for which the deposit is made.

(5)
The State Treasurer shall at all times be responsible for custody and
safekeeping of deposits. The operator making the deposit shall be entitled from
time to time to demand and receive from the State Treasurer, on the written
order of the secretary, the whole or any portion of collateral deposited, upon
depositing with the State Treasurer, in lieu of that collateral, other
collateral of classes specified in this section having a market value at least
equal to the sum of the bond, and also to demand, receive and recover the
interest and income from the negotiable bonds as they become due and
payable.

(6)
If negotiable bonds on deposit under this subsection mature or are called,
the State Treasurer, at the request of the owner of the bonds, shall convert
them into other negotiable bonds, of classes specified in this section,
designated by the owner.

(7)
If notice of intent to terminate a letter of credit is given, the
department shall give the operator 30 days' written notice to replace the letter
of credit with other acceptable bond guarantees as provided in this section. If
the owner or operator fails to timely replace the letter of credit, the
department shall draw upon and convert the letter of credit into cash and hold
it as a collateral bond guarantee.

(b)
Release.--No bond shall be fully released until the requirements of
subsection (a) and section 3223 (relating to notification and effect of well
transfer) have been fully met. Upon release of bonds and collateral under this
section, the State Treasurer shall immediately return to the owner the specified
amount of cash or securities.

(c)
Noncompliance.--If a well owner or operator fails or refuses to comply
with subsection (a), regulations promulgated under this chapter or conditions of
a permit relating to this chapter, the department may declare the bond forfeited
and shall certify the same to the Attorney General, who shall proceed to enforce
and collect the full amount of the bond and, if the well owner or operator has
deposited cash or securities as collateral in lieu of a corporate surety, the
department shall declare the collateral forfeited and direct the State Treasurer
to pay the full amount of the funds into the Well Plugging Restricted Revenue
Account or to sell the security to the extent forfeited and pay the proceeds
into the Well Plugging Restricted Revenue Account. If a corporate surety or
financial institution fails to pay a forfeited bond promptly and in full, the
corporate surety or financial institution shall be disqualified from writing
further bonds under this chapter or any other environmental law administered by
the department. A person aggrieved by reason of forfeiting the bond or
converting collateral, as provided in this section, shall have a right to appeal
to the Environmental Hearing Board in the manner provided by law. Upon
forfeiture of a blanket bond for a violation occurring at one or more well
sites, the person whose bond is forfeited shall, within ten days of the
forfeiture, submit a replacement bond to cover all other wells of which the
person is an owner or operator. Failure to submit the replacement bond
constitutes a violation of this section as to each of the wells owned or
operated by the person.

(d)
Alternatives to certain bonds.--The following shall apply:

(1)
An operator of not more than 200 wells who cannot obtain a bond for a well
drilled prior to April 18, 1985, as required under subsection (a), due to
inability to demonstrate sufficient financial resources may, in lieu of the
bond:

(i)
Submit to the department a fee in the amount of $50 per well, a blanket
fee of $500 for ten to 20 wells or a blanket fee of $1,000 for more than 20
wells, which shall be a nonrefundable fee paid each year that the operator has
not filed a bond with the department. All fees collected in lieu of a bond under
this subsection shall be used for the purposes authorized by this chapter. The
Environmental Quality Board shall have the power, by regulation, to increase the
amount of the fees established under this subsection.

(ii)
Make phased deposits of collateral to fully collateralize the bond,
subject to the following:

(A)
Payment shall be based on the number of wells owned or operated. The
operator shall make an initial deposit and make annual deposits in accordance
with the schedule in clause (B). Interest accumulated by the collateral shall
become a part of the bond until the collateral plus accumulated interest equals
the amount of the required bond. The collateral shall be deposited, in trust,
with the State Treasurer as provided in this subsection or with a bank selected
by the department which shall act as trustee for the benefit of the Commonwealth
to guarantee the operator's compliance with the drilling, water supply
replacement, restoration and plugging requirements of this chapter. The operator
shall be required to pay all costs of the trust.

(B)
An operator of up to ten existing wells who does not intend to operate
additional wells shall deposit $250 per well and shall, thereafter, annually
deposit $50 per well until the obligations of this section are fully met. An
operator of 11 to 25 wells or an operator of up to ten wells who applies for one
or more permits for additional wells shall deposit $2,000 and shall, thereafter,
annually deposit $1,150 plus $150 for each additional well to be permitted that
year until the obligations of this section are fully met. An operator of 26 to
50 wells shall deposit $3,000 and shall, thereafter, annually deposit $1,300
plus $400 for each additional well to be permitted that year until the
obligations of this section are fully met. An operator of 51 to 100 wells shall
deposit $4,000 and shall, thereafter, annually deposit $1,500 plus $400 for each
additional well to be permitted that year until the obligations of this section
are fully met. Operators of 101 to 200 wells shall deposit $8,000 and shall,
thereafter, annually deposit $1,600 plus $1,000 for each additional well to be
permitted that year until the obligations of this section are fully met.
Operators of more than 200 wells shall fully bond their wells immediately.

(C)
The department shall reduce the amount of phased collateral payments or
the period of time over which phased collateral payments shall be made on behalf
of owners or operators who, prior to August 1, 1992, have paid a fee in lieu of
bond under subparagraph (i), and who, by August 1, 1993, choose to enter the
phased collateral program under this subparagraph rather than continue to make
payments in lieu of bond. Payments made prior to August 1, 1992, in lieu of bond
shall not be credited in any other manner, and the department shall not be
required to refund the fees. The Environmental Quality Board, by regulation, may
change the annual deposits established under clause (B) if necessary to
accommodate a change in the amount of the bond required under this section.

(2)
An operator may continue to pay a fee in lieu of bond or make phased
deposits of collateral to fully collateralize the bond so long as the operator
does not miss a payment under this subsection and remains in compliance with
this chapter. If an operator misses a payment under this subsection, the
operator shall:

(i)
immediately submit the appropriate bond amount in full; or

(ii)
cease all operations and plug all wells.

(d.1)
Individuals.--The following shall apply:

(1)
An individual who is unable to obtain a bond to drill new wells due to
inability to demonstrate financial resources may meet the collateral bond
requirements of subsection (a) by making phased deposits of collateral to fully
collateralize the bond. The individual shall be limited to drilling ten new
wells per calendar year and, for each well to be drilled, deposit $500 and make
an annual deposit of 10% of the remaining bond amount for a period of ten years.
Interest accumulated shall become a part of the bond until the collateral plus
accumulated interest equals the amount of the required bond. The collateral
shall be deposited in trust with the State Treasurer under subsection (a) or
with a bank selected by the department which shall act as trustee for the
benefit of the Commonwealth to guarantee the individual's compliance with the
drilling, water supply replacement, restoration and plugging requirements of
this chapter. The individual shall pay all costs of the trust.

(2)
Individuals may continue to use phased collateral to obtain permits if
they have not missed a payment for a well drilled under this provision and
remain in compliance with this chapter. If an individual misses a payment, the
individual shall:

(i)
immediately submit the appropriate bond amount in full; or

(ii)
cease all operations and plug all wells.

(3)
For purposes of this subsection, an "individual" means a natural person
doing business under his own name.

(e)
Reservation of remedies.--All remedies for violations of this chapter,
regulations adopted under this chapter and conditions of permits are expressly
preserved. Nothing in this section shall be construed as an exclusive penalty or
remedy for violations of law. No action taken under this section shall waive or
impair any other remedy or penalty provided in law.

(f)
Change of law.--Owners or operators who have failed to meet the
requirements of this section prior to August 1, 1992, shall not be required to
make payments under this section on a retroactive basis as a condition of
obtaining a permit under this chapter, nor shall the failure be deemed a
violation of this chapter.

(g)
Definition.--As used in this section, the term "well site" means areas
occupied by all equipment or facilities necessary for or incidental to drilling,
production or plugging a well.

58c3225v

Special
Provisions in Appendix.  See section 4(3)(xv) of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

Cross
References.  Section 3225 is referred to in sections  3211, 3213,
3214, 3223, 3273.1 of this title.

58c3226s

§
3226.  Oil and Gas Technical Advisory Board.

(a)
Creation of board.--The Oil and Gas Technical Advisory Board is
created, consisting of the following members, all of whom shall be chosen by the
Governor and shall be residents of this Commonwealth:

(1)
Three individuals, each of whom shall be:

(i)
a petroleum engineer;

(ii)
a petroleum geologist; or

(iii)
an experienced driller representative of the oil and gas industry with
three years of experience in this Commonwealth.

(2)
One mining engineer from the coal industry with three years of experience
in this Commonwealth.

(3)
One geologist or petroleum engineer with three years of experience in this
Commonwealth, who shall be chosen from a list of three names submitted by the
Citizens Advisory Council to the Governor and who shall sit as a representative
of the public interest.

(b)
Reimbursement.--Board members shall not receive a salary but shall be
reimbursed for all necessary expenses incurred in the performance of their
duties.

(c)
Majority vote.--All actions of the board shall be by majority vote.
The board shall meet as called by the secretary, but not less than semiannually,
to carry out its duties under this chapter. The board shall select a chairman
and other officers deemed appropriate.

(d)
Consultation.--The department shall consult with the board in the
formulation, drafting and presentation stages of all regulations of a technical
nature promulgated under this chapter. The board shall be given a reasonable
opportunity to review and comment on all regulations of a technical nature prior
to submission to the Environmental Quality Board for initial consideration. The
written report of the board shall be presented to the Environmental Quality
Board with any regulatory proposal. The chairman of the board shall be invited
to participate in the presentation of all regulations of a technical nature
before the Environmental Quality Board to the extent allowed by procedures of
the Environmental Quality Board. Nothing herein shall preclude any member of the
board from filing a petition for rulemaking with the Environmental Quality Board
in accordance with procedures established by the Environmental Quality
Board.

58c3227s

§
3227.  Air contaminant emissions.

(a)
Natural gas operations.--An owner or operator of a facility conducting
natural gas operations in unconventional formations including development,
production, transmission and processing shall submit to the department a source
report identifying and quantifying actual air contaminant emissions from any air
contamination source. The report shall include a description of the methods used
to calculate annual emissions.

(b)
Air contamination sources.--An owner or operator of a stationary air
contamination source shall complete the reports required under this section
using forms and procedures specified by the department.

(c)
Nitrogen oxides and volatile organic compounds.--A statement under 25
Pa. Code Ch. 135 (relating to reporting of sources) for nitrogen oxides and
volatile organic compounds shall be submitted to the department according to the
schedule specified in subsection (d).

(d)
Time.--The report for 2011 actual emissions shall be submitted to the
department on a schedule established by the department. Each year after 2011,
the report shall be submitted to the department by March 1 for air contaminant
emissions during the preceding calendar year unless a different reporting
schedule is required by the Clean Air Act (69 Stat. 322, 42 U.S.C. § 7401 et
seq.) or regulations adopted under that act.

58c3227v

Special
Provisions in Appendix.  See section 4(3)(xvi) of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

58c3231h

SUBCHAPTER C

UNDERGROUND
GAS STORAGE

Sec.

3231.
Reporting requirements for gas storage operations.

3232.
Reporting requirements for coal mining operations.

3233.
General gas storage reservoir operations.

3234.
Gas storage reservoir operations in coal areas.

3235.
Inspection of facilities and records.

3236.
Reliance on maps and burden of proof.

3237.
Exemptions and prohibitions.

58c3231s

§
3231.  Reporting requirements for gas storage operations.

(a)
General duties.--The following shall apply:

(1)
A person injecting into or storing gas in a storage reservoir underlying
or within 3,000 linear feet of an operating coal mine in a coal seam that
extends over the storage reservoir or reservoir protective area shall, within 60
days, file with the department a copy of a map and certain data in the form and
manner provided in this subsection or as otherwise prescribed by regulation of
the department.

(2)
A person injecting gas into or storing gas in a storage reservoir which is
not under or within 3,000 linear feet of, but less than 10,000 linear feet from,
an operating coal mine in a coal seam that extends over the storage reservoir or
reservoir protective area shall file the map and data within 60 days or a longer
period set by departmental regulation.

(3)
A person proposing to inject or store gas in a storage reservoir located
as defined in paragraph (1) or (2) shall file the appropriate required map and
data with the department not less than six months prior to starting the actual
injection or storage.

(4)
A map required by this subsection shall be prepared by a competent
engineer or geologist, showing:

(i)
the stratum in which the existing or proposed storage reservoir is or is
proposed to be located;

(ii)
the geographic location of the outside boundaries of the storage reservoir
and reservoir protective area;

(iii)
the location of all known oil or gas wells in the reservoir or within
3,000 linear feet thereof which have been drilled into or through the storage
stratum, indicating which have been or are to be cleaned out and plugged or
reconditioned for storage along with the proposed location of all additional
wells which are to be drilled within the storage reservoir or within 3,000
linear feet thereof.

(5)
The following, if available, shall be furnished for all known oil or gas
wells which have been drilled into or through the storage stratum within the
storage reservoir or within 3,000 linear feet thereof: name of the operator,
date drilled, total depth, depth of production if the well was productive of oil
or gas, the initial rock pressure and volume, the depths at which all coal seams
were encountered and a copy of the driller's log or other similar information.
At the time of the filing of the maps and data, a statement shall be filed:

(i)
detailing efforts made to determine that the wells shown are accurately
located on the map;

(ii)
affirming that the wells shown represent, to the best of the operator's
knowledge, all oil or gas wells which have ever been drilled into or below the
storage stratum within the proposed storage reservoir or within the reservoir
protective area;

(iii)
stating whether the initial injection is for testing purposes;

(iv)
stating the maximum pressure at which injection and storage of gas is
contemplated; and

(v)
providing a detailed explanation of the methods to be used or which
previously have been used in drilling, cleaning out, reconditioning and plugging
wells in the storage reservoir or within the reservoir protective area.

(6)
The map and data required to be filed under paragraph (5) shall be amended
or supplemented semiannually if material changes occur. The department may
require a storage operator to amend or supplement the map or data at more
frequent intervals if material changes have occurred justifying the earlier
filing.

(b)
Other reporting requirements.--A person who is injecting gas into or
storing gas in a storage reservoir not at the time subject to subsection (a), by
a process other than that of secondary recovery or gas recycling, shall, within
60 days or a longer period set by departmental regulations, file maps and data
required by departmental regulation and as follows:

(1)
A person who, after April 18, 1985, proposes to inject or store gas in a
storage reservoir in an area not covered by subsection (a) by a process other
than that of secondary recovery or gas recycling shall file the required map and
data with the department not less than six months prior to the starting of
actual injection or storage.

(2)
The map shall be prepared by a competent engineer or competent geologist
and show:

(i)
the stratum in which the existing or proposed storage reservoir is or is
to be located;

(ii)
the geographic location of the outside boundaries of the storage
reservoir; and

(iii)
the location of all known oil or gas wells within the reservoir, or within
3,000 linear feet thereof, which have been drilled into or through the storage
stratum, indicating which have been or are to be cleaned out and plugged or
reconditioned for storage and the proposed location of all additional wells
which are to be drilled within the storage reservoir or within 3,000 linear feet
thereof.

(3)
The following, if available, shall be furnished for all known oil or gas
wells which have been drilled into or through the storage stratum within the
storage reservoir or within 3,000 linear feet thereof: name of the operator,
date drilled, total depth, depth of production if the well was productive of oil
or gas, the initial rock pressure and volume and a copy of the driller's log or
other similar information. At the time of the filing of the maps and data, a
statement shall be filed:

(i)
detailing efforts made to determine that the wells shown are accurately
located on the map;

(ii)
affirming that the wells shown represent, to the best of the operator's
knowledge, all oil or gas wells which have ever been drilled into or below the
storage stratum within the proposed storage reservoir;

(iii)
stating whether the initial injection is for testing purposes;

(iv)
stating the maximum pressure at which injection and storage of gas is
contemplated; and

(v)
providing a detailed explanation of the methods to be used or which
previously have been used in drilling, cleaning out, reconditioning and plugging
wells in the storage reservoir.

(4)
The map and data required to be filed under paragraph (3) shall be amended
or supplemented semiannually if material changes occur. The department may
require a storage operator to amend or supplement the map or data at more
frequent intervals if material changes have occurred justifying the earlier
filing.

(c)
Political subdivisions.--Storage operators shall give notice to the
department of the name of each political subdivision and county in which the
operator maintains and operates a gas storage reservoir.

(d)
Notice to affected persons.--At the time of the filing of maps and
data and the filing of amended or supplemental maps or data required by this
section, the person filing the information shall give written notice of the
filing to all persons who may be affected under the provisions of this chapter
by the storage reservoir described in the maps or data. Notices shall contain a
description of the boundaries of the storage reservoir. When a person operating
a coal mine or owning an interest in coal properties which are or may be
affected by the storage reservoir requests, in writing, a copy of any map or
data filed with the department, the copy shall be furnished by the storage
operator.

(e)
Outside boundaries.--For purposes of this chapter, the outside
boundaries of a storage reservoir shall be defined by the location of those
wells around the periphery of the storage reservoir which had no gas production
when drilled in the storage stratum. The boundaries shall be originally fixed or
subsequently changed if, based on the number and nature of the wells and the
geological and production knowledge of the storage stratum, its character,
permeability, distribution and operating experience, it is determined in a
conference under section 3251 (relating to conferences) that modifications
should be made.

(f)
Inapplicability of section.--The requirements of this section shall
not apply to the operator of an underground gas storage reservoir so long as the
reservoir is located more than 10,000 linear feet from an operating coal mine,
except that the storage operator shall give notice to the department of the name
of each political subdivision and county in which the operator maintains and
operates a gas storage reservoir. In political subdivisions and counties where
both gas storage reservoirs and coal mines are being operated, the department
may request the storage operator to furnish maps showing geographical locations
and outside boundaries of the storage reservoirs. The department shall keep a
record of the information and promptly notify the coal operator and the storage
operator when notified by them that the coal mine and storage reservoir are
within 10,000 linear feet of each other.

58c3231v

Cross
References.  Section 3231 is referred to in section  3234 of this
title.

58c3232s

§
3232.  Reporting requirements for coal mining operations.

(a)
General rule.--A person owning or operating a coal mine shall file
with the department a map prepared and sealed by a competent individual licensed
as a professional engineer or professional land surveyor under the provisions of
the act of May 23, 1945 (P.L.913, No.367), known as the Engineer, Land Surveyor
and Geologist Registration Law, showing the outside coal boundaries of the
operating coal mine, the existing workings and exhausted areas and the
relationship of the boundaries to identifiable surface properties and landmarks.
A person owning or operating an operating coal mine which has been penetrated by
a well shall furnish a mine map to the department each year indicating the
excavations for the preceding year and the projections for the ensuing year. The
map required by this subsection shall be furnished to a person storing or
contemplating the storage of gas in the vicinity of operating coal mines, upon
written request, by the coal operator, and the person and the department shall
thereafter be informed of any boundary changes at the time the changes occur.
The department shall keep a record of the information and promptly notify the
coal operator and storage operator when notified by them that the coal mine and
the storage reservoir are within 10,000 linear feet of each other.

(b)
Mines near certain reservoirs.--A person owning or operating any coal
mine which is or which comes within 10,000 linear feet of a storage reservoir
and where the coal seam being operated extends over the storage reservoir or
reservoir protective area shall, within 45 days after receiving notice from the
storage operator of that fact, file with the department and furnish to the
person operating the storage reservoir a map in the form required by subsection
(a) showing, in addition to the requirements of subsection (a), existing and
projected excavations and workings of the operating coal mine for the ensuing
18-month period and the location of oil or gas wells of which the coal operator
has knowledge. The person owning or operating the coal mine shall, each six
months thereafter, file with the department and furnish to the person operating
the storage reservoir a revised map showing any additional excavations and
workings, together with the projected excavations and workings for the then
ensuing 18-month period, which may be within 10,000 linear feet of the storage
reservoir. The department may require a coal operator to file revised maps at
more frequent intervals if material changes have occurred justifying earlier
filing. The person owning or operating the coal mine shall also file with the
department and furnish the person operating the reservoir prompt notice of any
wells which have been cut into, together with all available pertinent
information.

(c)
Mines near gas storage reservoirs.--A person owning or operating a
coal mine who has knowledge that it overlies or is within 2,000 linear feet of a
gas storage reservoir shall, within 30 days, notify the department and the
storage operator of that fact.

(d)
Mines projected to be near storage reservoirs.--When a person owning
or operating a coal mine expects that, within the ensuing nine-month period, the
coal mine will be extended to a point which will be within 2,000 linear feet of
any storage reservoir, the person shall notify the department and storage
operator in writing of that fact.

(e)
New mines.--A person intending to establish or reestablish an
operating coal mine which will be over a storage reservoir or within 2,000
linear feet of a storage reservoir or may, within nine months thereafter, be
expected to be within 2,000 linear feet of a storage reservoir shall immediately
notify the department and storage operator in writing. Notice shall include the
date on which the person intends to establish or reestablish the operating coal
mine.

(f)
Misdemeanor.--A person who serves notice as required by this
subsection of an intention to establish or reestablish an operating coal mine,
without intending in good faith to establish or reestablish the mine, is liable
for continuing damages to a storage operator injured by the improper notice and
commits a misdemeanor subject to the penalties of section 3255 (relating to
penalties).

58c3232v

Cross
References.  Section 3232 is referred to in section  3234 of this
title.

58c3233s

§
3233.  General gas storage reservoir operations.

(a)
General rule.--A person who operates or proposes to operate a storage
reservoir, except one filled by the secondary recovery or gas recycling process,
shall:

(1)
Use every known method which is reasonable under the circumstances for
discovering and locating all wells which have or may have been drilled into or
through the storage reservoir.

(2)
Plug or recondition, as provided in departmental regulations, all known
wells drilled into or through the storage reservoir, except to the extent
otherwise provided in subsections (b) and (c).

(b)
Wells to be plugged.--To comply with subsection (a), wells which are
to be plugged shall be plugged in the manner specified in section 3220 (relating
to plugging requirements).

(b.1)
Wells plugged prior to enactment of section.--If a well located in the
storage reservoir area has been plugged prior to April 18, 1985, and on the
basis of data, information and other evidence submitted to the department, it is
determined that the plugging was done in the manner required by section 3220 or
approved as an alternative method under section 3221 (relating to alternative
methods) and the plugging is still sufficiently effective to meet the
requirements of this chapter, the obligations under subsection (a) with regard
to plugging the well shall be considered to have been fully satisfied.

(c)
Wells to be reconditioned.--The following shall apply:

(1)
To comply with subsection (a), wells which are to be reconditioned shall,
unless the department by regulation specifies a different procedure, be cleaned
out from the surface through the storage horizon, and the producing casing and
casing strings determined not to be in good physical condition shall be replaced
with new casing, using the same procedure as is applicable to drilling a new
well under this chapter. In the case of wells to be used for gas storage, the
annular space between each string of casing and the annular space behind the
largest diameter casing to the extent possible shall be filled to the surface
with cement or bentonitic mud or a nonporous material approved by the department
under section 3221. At least 15 days prior to reconditioning, the storage
operator shall give notice to the department, setting forth in the notice the
manner in which it is planned to recondition the well and any pertinent data
known to the storage operator which will indicate the condition of the well
existing at that time. In addition, the storage operator shall give the
department at least 72 hours' notice of the time when reconditioning is to
begin. If no objections are raised by the department within ten days, the
storage operator may proceed with reconditioning in accordance with the plan as
submitted. If objections are made by the department, the department may fix a
time and place for a conference under section 3251 (relating to conferences) at
which the storage operator and department shall endeavor to agree on a plan to
satisfy the objections and meet the requirements of this section. If no
agreement is reached, the department may, by an appropriate order, determine
whether the plan, as submitted, meets the requirements of this section or what
changes, if any, are required. If, in reconditioning a well in accordance with
the plan, physical conditions are encountered which justify or necessitate a
change in the plan, the storage operator may request that the plan be changed.
If the request is denied, the department shall fix a conference under section
3251 and proceed in the same manner as with original objections. An application
may be made in the manner prescribed by section 3221 for approval of an
alternative method of reconditioning a well. If a well located within the
storage reservoir was reconditioned, or drilled and equipped, prior to April 18,
1985, the obligations imposed by subsection (a), as to reconditioning the well,
shall be considered fully satisfied if, on the basis of the data, information
and other evidence submitted to the department, it is determined that:

(i)
The conditioning or previous drilling and equipping was done in the manner
required in this subsection, in regulations promulgated under this chapter or in
a manner approved as an alternative method in accordance with section 3221.

(ii)
The reconditioning or previous drilling and equipping is still
sufficiently effective to meet the requirements of this chapter.

(2)
If a well requires emergency repairs, this chapter shall not be construed
to require the storage operator to give any notice required by this subsection
before making the repairs.

(d)
Exception.--The requirements of subsection (a) shall not apply to
injection of gas into a stratum when the sole purpose of injection, referred to
in this subsection as testing, is to determine whether the stratum is suitable
for storage purposes. Testing shall be conducted only in compliance with the
following requirements:

(1)
The person testing or proposing to test shall comply with section 3231
(relating to reporting requirements for gas storage operations) and verify the
statement required to be filed by that section.

(2)
The storage operator shall give at least six months' written notice to the
department of the fact that injection of gas for testing purposes is
proposed.

(3)
If the department has objections, the department shall fix a time and
place for a conference under section 3251, not more than ten days from the date
of notice to the storage operator, at which time the storage operator and
department shall attempt to resolve the issues presented. If an agreement cannot
be reached, the department may issue an appropriate order.

(e)
Failure to execute lawful order.--In a proceeding under this chapter,
if the department determines that an operator of a storage reservoir has failed
to carry out a lawful order issued under this chapter, the department may
require the operator to suspend operation of the reservoir and withdraw the gas
until the violation is remedied, in which case the storage operator, limited by
due diligence insofar as existing facilities utilized to remove gas from the
reservoir will permit, shall:

(1)
if possible, remove the amount required by the department to be removed;
or

(2)
in any event, remove the maximum amount which can be withdrawn in
accordance with recognized engineering and operating procedures.

(f)
Duty of storage reservoir operator.--The following shall apply:

(1)
A person owning or operating a storage reservoir subject to this chapter
shall have a duty to:

(i)
Maintain all wells drilled into or through the reservoir in a condition
and operate them in a manner sufficient to prevent the escape of gas.

(ii)
Operate and maintain the reservoir and its facilities as prescribed by
departmental regulations and at a pressure which will prevent gas from escaping,
but the pressure shall not exceed the highest rock pressure found to have
existed during the production history of the reservoir or another high pressure
limit approved by the department after holding a conference under section 3251
based on geological and production knowledge of the reservoir, its character,
permeability distribution and operating experience.

(2)
The duty under paragraph (1) shall not be construed to include inability
to prevent the escape of gas when gas escapes as a result of an act of God or a
person not under the control of the storage operator. In that instance, the
storage operator shall have a duty to take action reasonably necessary to
prevent the further escape of gas. This paragraph does not apply to a well which
the storage operator failed to locate and make known to the department.

58c3234s

§
3234.  Gas storage reservoir operations in coal areas.

(a)
General rule.--A person operating a storage reservoir which underlies
or is within 2,000 linear feet of a coal mine operating in a coal seam that
extends over the storage reservoir or the reservoir protective area shall:

(1)
Use every known reasonable method for discovering and locating all wells
which have or may have been drilled into or through the storage stratum in the
acreage lying within the outside coal boundaries of the operating coal mine
overlying the storage reservoir or the reservoir protective area.

(2)
Plug or recondition, as provided by section 3220 (relating to plugging
requirements) and subsection (e), all known wells, except to the extent provided
in subsections (e), (f), (g) and (h), drilled into or through the storage
stratum and located within the portion of the acreage of the operating coal mine
overlying the storage reservoir or the reservoir protective area. If an
objection is raised as to use of a well as a storage well and, after a
conference under section 3251 (relating to conferences), it is determined by the
department, taking into account all circumstances and conditions, that the well
should not be used as a storage well, the well shall be plugged unless, in the
opinion of the storage operator, the well may be used as a storage well in the
future, in which case, upon approval of the department after taking into account
all circumstances and conditions, the storage operator may recondition and
inactivate the well rather than plug it.

(3)
The requirements of paragraph (2) shall be deemed to have been fully
complied with if, as the operating coal mine is extended, all wells which from
time to time come within the acreage described in paragraph (2) are
reconditioned or plugged as provided in section 3220 and subsection (e) or (f)
so that, by the time the coal mine has reached a point within 2,000 linear feet
of the wells, they will have been reconditioned or plugged in accordance with
section 3220 and subsection (e) or (f).

(b)
Verified statement.--A person operating a storage reservoir referred
to in subsection (a) shall file with the department and furnish a copy to the
person operating the affected operating coal mine a verified statement setting
forth:

(1)
That the map and any supplemental maps required by section 3231(a)
(relating to reporting requirements for gas storage operations) have been
prepared and filed in accordance with section 3231.

(2)
A detailed explanation of what the storage operator has done to comply
with the requirements of subsection (a)(1) and (2) and the results of those
actions.

(3)
Such additional efforts, if any, as the storage operator is making and
intends to make to locate all wells.

(4)
Any additional wells that are to be plugged or reconditioned to meet the
requirements of subsection (a)(2).

(b.1)
Order of department.--If the statement required under subsection (b)
is not filed by the storage reservoir operator within the time specified by this
chapter or the regulations of the department, the department may order the
operator to file the statement.

(c)
Procedure.--Within 120 days after receipt of a statement required by
this section, the department may direct that a conference be held in accordance
with section 3251 to determine whether the requirements of section 3231 and
subsection (a) have been fully met. At the conference, if any person believes
the requirements have not been fully met, the parties shall attempt to agree on
additional actions to be taken and the time for completion, subject to approval
of the department. If an agreement cannot be reached, the department shall make
a determination and, if the department determines any requirements have not been
met, the department shall issue an order specifying in detail the extent to
which the requirements have not been met and the actions which the storage
operator must complete to meet the requirements. The order shall grant as much
time as is reasonably necessary to fully comply. If the storage operator
encounters conditions not known to exist at the time of issuance of the order
and which materially affect the validity of the order or the ability of the
storage operator to comply with it, the storage operator may apply for a
rehearing or modification of the order.

(d)
Notification.--If, in complying with subsection (a), a storage
operator, after filing the statement provided for in subsection (b), plugs or
reconditions a well, the storage operator shall notify the department and the
coal operator affected, in writing, setting forth facts indicating the manner in
which the plugging or reconditioning was done. Upon receipt of the notification,
the coal operator or department may request a conference under section 3251.

(e)
Plugging wells.--In order to meet the requirements of subsection (a),
wells which are to be plugged shall be plugged in the manner specified in
regulations promulgated under section 3211 (relating to well permits). When a
well located within the storage reservoir or the reservoir protective area has
been plugged prior to April 18, 1985, and, on the basis of the data information
and other evidence submitted to the department, it is determined that the
plugging was done in the manner required by section 3220, or in a manner
approved as an alternative method in accordance with section 3221 (relating to
alternative methods), and the plugging is still sufficiently effective to meet
the requirements of this chapter, the requirements of subsection (a) as to
plugging the well shall be considered to have been fully satisfied.

(f)
Reconditioned wells.--The following shall apply:

(1)
In order to comply with subsection (a), unless the department by
regulation specifies a different procedure, wells which are to be reconditioned
shall be cleaned out from the surface through the storage horizon, and the
following casing strings shall be pulled and replaced with new casing, using the
procedure applicable to drilling a new well under this chapter:

(i)
the producing casing;

(ii)
the largest diameter casing passing through the lowest workable coal seam
unless it extends at least 25 feet below the bottom of the coal seam and is
determined to be in good physical condition, but the storage operator may,
instead of replacing the largest diameter casing, replace the next largest
casing string if the casing string extends at least 25 feet below the lowest
workable coal seam; and

(iii)
casing strings determined not to be in good physical condition.

(2)
In the case of a well to be used for gas storage, the annular space
between each string of casing and the annular space behind the largest diameter
casing, to the extent possible, shall be filled to the surface with cement or
bentonitic mud or an equally nonporous material approved by the department under
section 3221.

(3)
At least 15 days before a well is to be reconditioned, the storage
operator shall give notice to the department and the coal operator, lessee or
owner, setting forth the manner in which reconditioning is planned and pertinent
data known to the storage operator which will indicate the current condition of
the well, along with at least 72 hours' notice of the date and time when
reconditioning will begin. The coal operator, lessee or owner shall have the
right to file, within ten days after receipt of the notice, objections to the
plan of reconditioning as submitted by the storage operator. If no objections
are filed and none are raised by the department within ten days, the storage
operator may proceed with reconditioning in accordance with the plan as
submitted. If an objection is filed or made by the department, the department
shall fix a time and place for a conference under section 3251, at which
conference the storage operator and the person having objections shall attempt
to agree on a plan of reconditioning that meets the requirements of this
section. If no agreement is reached, the department shall, by an appropriate
order, determine whether the plan as submitted meets the requirements of this
section or what changes should be made to meet the requirements. If, in
reconditioning the well in accordance with the plan, physical conditions are
encountered which justify or necessitate a change in the plan, the storage
operator or coal operator may request that the plan be changed. If the parties
cannot agree on a change, the department shall arrange for a conference to
determine the matter in the same manner as set forth in connection with original
objections to the plan.

(4)
Application may be made to the department in the manner prescribed in
section 3221 for approval of an alternative method of reconditioning a well.
When a well located within the storage reservoir or the reservoir protective
area has been reconditioned or drilled and equipped prior to April 18, 1985,
and, on the basis of the data, information and other evidence submitted to the
department, the obligations imposed by subsection (a) as to reconditioning the
well shall be considered to be fully satisfied if it is determined that
reconditioning or previous drilling and equipping:

(i)
was done in the manner required in this subsection, or in regulations
promulgated hereunder, or in a manner approved as an alternative method in
accordance with section 3221; or

(ii)
is still sufficiently effective to meet the requirements of this
chapter.

(5)
If a well requires emergency repairs, this subsection shall not be
construed to require the storage operator to give the notices specified herein
before making the repairs.

(g)
Producing wells.--If a well located within the reservoir protective
area is a producing well in a stratum below the storage stratum, the obligations
imposed by subsection (a) shall not begin until the well ceases to be a
producing well.

(h)
Certain other wells.--If a well within a storage reservoir or
reservoir protective area penetrates the storage stratum but does not penetrate
the coal seam being mined by an operating coal mine, the department may, upon
application of the operator of the storage reservoir, exempt the well from the
requirements of this section. Either party affected may request a conference
under section 3251 with respect to exemption of a well covered by this
subsection.

(i)
Plugging limitation.--In fulfilling the requirements of subsection
(a)(2) with respect to a well within the reservoir protective area, the storage
operator shall not be required to plug or recondition the well until the storage
operator has received from the coal operator written notice that the mine
workings will, within the period stated in the notice, be within 2,000 linear
feet of the well. Upon the receipt of the notice, the storage operator shall use
due diligence to complete the plugging or reconditioning of the well in
accordance with the requirements of this section and section 3220. If the mine
workings do not, within a period of three years after the well has been plugged,
come within 2,000 linear feet of the well, the coal operator shall reimburse the
storage operator for the cost of plugging, provided that the well is still
within the reservoir protective area as of that time.

(j)
Retreat mining.--If retreat mining approaches a point where, within 90
days, it is expected that the retreat work will be at the location of the pillar
surrounding an active storage well, the coal operator shall give written notice
to the storage operator, and by agreement, the parties shall determine whether
it is necessary or advisable to effectively and temporarily inactivate the well.
The well shall not be reactivated until a reasonable period, determined by the
parties, has elapsed. If the parties cannot agree as required by this
subsection, the matter shall be submitted to the department for resolution. The
number of wells required to be temporarily inactivated during the retreat period
shall not be of a number that materially affects efficient operation of the
storage pool, except that this provision shall not preclude temporary
inactivation of a particular well if the practical effect of inactivating it is
to render the pool temporarily inoperative.

(k)
Exceptions.--The requirements of subsections (a), (l) and (m) shall
not apply to injection of gas into a stratum when the whole purpose of
injection, referred to in this subsection as testing, is to determine whether
the stratum is suitable for storage purposes. Testing shall be conducted only in
compliance with the following requirements:

(1)
The person testing or proposing to test shall comply with all provisions
and requirements of section 3231 and verify the statement required to be filed
by that section.

(2)
If any part of the proposed storage reservoir is under or within 2,000
linear feet of an operating coal mine which is operating in a coal seam that
extends over the proposed storage reservoir or the reservoir protective area,
the storage operator shall give at least six months' written notice to the
department and coal operator of the fact that injection of gas for testing
purposes is proposed.

(3)
The coal operator affected may at any time file objections with the
department, whereupon the department shall fix a time and place for a conference
under section 3251, not more than ten days from the date of the notice to the
storage operator. At the conference, the storage operator and the objecting
party shall attempt to agree, subject to approval of the department, on the
questions involved. If an agreement cannot be reached, the department may issue
an appropriate order.

(4)
If at any time a proposed storage reservoir being tested comes under or
within 2,000 linear feet of an operating coal mine because of extension of the
storage reservoir being tested or because of extension or establishment or
reestablishment of the operating coal mine, the requirements of this subsection
shall immediately become applicable to the testing.

(l)
Storage reservoirs near operating coal mines.--A person who proposes
to establish a storage reservoir under or within 2,000 linear feet of a coal
mine operating in a coal seam that extends over the storage reservoir or the
reservoir protective area shall, prior to establishing the reservoir, and in
addition to complying with section 3231 and subsection (a), file the verified
statement required by subsection (b) and fully comply with any order of the
department in the manner provided under subsection (b) or (c) before commencing
operation of the storage reservoir. After the person proposing to operate the
storage reservoir complies with the requirements of this subsection and
commences operations, the person shall continue to be subject to all provisions
of this chapter.

(m)
Gas storage reservoirs.--If a gas storage reservoir is in operation on
April 18, 1985, and at any time thereafter it is under or within 2,000 linear
feet of an operating coal mine, or if a gas storage reservoir is put in
operation after April 18, 1985, and at any time after storage operations begin
it is under or within 2,000 linear feet of an operating coal mine, the storage
operator shall comply with all of the provisions of this section, except
that:

(1)
the time for filing the verified statement under subsection (b) shall be
60 days after the date stated in the notice filed by the coal operator under
section 3232(d) and (e) (relating to reporting requirements for coal mining
operations);

(2)
the coal operator shall give notice of the delay to the department;

(3)
the department shall, upon the request of the storage operator, extend the
time for filing the statement by the additional time which will be required to
extend or establish or reestablish the operating coal mine to a point within
2,000 linear feet of the reservoir;

(4)
the verified statement shall also indicate that the map referred to in
section 3231(a) has been currently amended as of the time of the filing of the
statement; and

(5)
the person operating the storage reservoir shall continue to be subject to
all of the provisions of this chapter.

(n)
Failure to comply with order.--If, in any proceeding under this
chapter, the department determines that an operator of a storage reservoir has
failed to comply with a lawful order issued under this chapter, the department
may require the storage operator to suspend operation of the reservoir and
withdraw the gas from it until the violation is remedied, in which case the
storage operator, limited by due diligence insofar as existing facilities
utilized to remove gas from the reservoir will permit, shall:

(1)
if possible, remove the amount required by the department to be removed;
or

(2)
in any event, remove the maximum amount which can be withdrawn in
accordance with recognized engineering and operating procedures.

(o)
Prevention of escape of gas.--In addition to initial compliance with
other provisions of this chapter and lawful orders issued under this chapter, it
shall be the duty, at all times, of a person owning or operating a storage
reservoir subject to this chapter to keep all wells drilled into or through the
storage stratum in a condition, and operate the wells in a manner, which is
designed to prevent the escape of gas out of the storage reservoir and its
facilities, and to operate and maintain the storage reservoir and its facilities
in the manner prescribed by regulation of the department and at a pressure that
will prevent gas from escaping from the reservoir or its facilities. This duty
shall not be construed to include inability to prevent the escape of gas when
escape results from an act of God or a person not under the control of the
storage operator, except that this exception does not apply to a well which the
storage operator has failed to locate and make known to the department. If an
escape of gas results from an act of God or a person not under the control of
the storage operator, the storage operator shall be under the duty to take any
action reasonably necessary to prevent the further escape of gas out of the
storage reservoir and its facilities.

58c3235s

§
3235.  Inspection of facilities and records.

(a)
General rule.--The person operating a storage reservoir affected by
this chapter shall, at all reasonable times, be permitted to inspect applicable
records and facilities of a coal mine overlying the storage reservoir or
reservoir protective area. The person operating a coal mine affected by this
chapter shall, at all reasonable times, be permitted to inspect applicable
records and facilities of a storage reservoir underlying the coal mine.

(b)
Order.--If a storage operator or coal operator subject to subsection
(a) refuses to permit inspection of records or facilities, the department may,
on its own motion or on application of the party seeking inspection, after
reasonable written notice and a hearing if requested by an affected party, order
inspection.

58c3236s

§
3236.  Reliance on maps and burden of proof.

(a)
General rule.--In determining whether a coal mine or operating coal
mine is or will be within a particular distance from a storage reservoir which
is material under this chapter, the owner or operator of the coal mine and the
storage operator may rely on the most recent map of the storage reservoir or
coal mine filed by the other party with the department.

(b)
Accuracy.--Where accuracy of a map or data filed under this chapter is
in issue, the person that filed the map or data shall:

(1)
at the request of an objecting party, disclose the information and method
used to compile the map or data, along with any information available to the
person that might affect current validity of the map or data; and

(2)
have the burden of proving accuracy of the map or data.

58c3237s

§
3237.  Exemptions and prohibitions.

(a)
Inapplicability of chapter to certain coal mines.--This chapter shall
not apply to the following types of coal mines:

(1)
Strip mines and auger mines operating from the surface.

(2)
Mines to which the former act of June 9, 1911 (P.L.756, No.319), entitled
"An act to provide for the health and safety of persons employed in and about
the bituminous coal-mines of Pennsylvania, and for the protection and
preservation of property connected therewith," did not apply in accordance with
section 3 of that act.

(3)
Mines to which the former act of June 2, 1891 (P.L.176, No.177), entitled
"An act to provide for the health and safety of persons employed in and about
the anthracite coal mines of Pennsylvania and for the protection and
preservation of property connected therewith," did not apply in accordance with
section 32 of that act.

(b)
Workable coal seams.--Injection of gas for storage purposes in a
workable coal seam, whether or not it is being or has been mined, is
prohibited.

(b.1)
Original extraction.--Nothing in this chapter prohibits original
extraction of natural gas, crude oil or coal.

(c)
Certain rock formations.--Nothing in this chapter applies to storage
of gas or liquids in storage reservoirs excavated in rock formations
specifically for storage purposes.

58c3241h

SUBCHAPTER D

EMINENT
DOMAIN

Sec.

3241.
Appropriation of interest in real property.

58c3241s

§
3241.  Appropriation of interest in real property.

(a)
General rule.--Except as provided in this subsection, a corporation
empowered to transport, sell or store natural gas or manufactured gas in this
Commonwealth may appropriate an interest in real property located in a storage
reservoir or reservoir protective area for injection, storage and removal from
storage of natural gas or manufactured gas in a stratum which is or previously
has been commercially productive of natural gas. The right granted by this
subsection shall not be exercised to acquire any of the following for the
purpose of gas storage:

(1)
An interest in a geological stratum within the area of a proposed storage
reservoir or reservoir protective area:

(i)
unless the original recoverable oil or gas reserves in the proposed
storage reservoir have been depleted or exhausted by at least 80%; and

(ii)
until the condemnor has acquired the right, by grant, lease or other
agreement, to store gas in the geological stratum underlying at least 75% of the
area of the proposed storage reservoir.

(2)
An interest in a geological stratum within the area of a proposed storage
reservoir or reservoir protective area owned directly or indirectly by a gas
company or other person engaged in local distribution of natural gas, if the
interest to be acquired is presently being used by the gas company or other
person for storage of gas in performance of service to customers in its service
area.

(b)
Construction.--The following shall apply:

(1)
This chapter authorizes appropriation within a storage reservoir or
reservoir protective area of the following:

(i)
a stratum to be used for storage;

(ii)
any gas reserve remaining a stratum to be used for storage;

(iii)
an active or abandoned well or wells drilled into a stratum to be used for
storage; and

(iv)
the right to enter upon and use the surface of lands to:

(A)
locate, recondition, maintain, plug or replug an active or abandoned well;
or

(B)
operate a well drilled into or through a stratum to be used for
storage.

(2)
This chapter does not preclude the owner of nonstorage strata from
drilling wells to produce oil or gas from a stratum above or below the storage
stratum appropriated by another person, but a person appropriating or holding
storage rights may access, inspect and examine the drilling, the completed well,
drilling logs and other records relating to drilling, equipping or operating the
well in order to determine whether the storage stratum is being adequately
protected to prevent escape of gas stored therein.

(3)
This chapter does not authorize appropriation of a coal or coal measure,
regardless of whether it is being mined, or an interest in the coal mine or coal
measure.

(c)
Activities through appropriated strata.--A person drilling, operating,
using or plugging a well through a stratum appropriated under this chapter shall
drill, case, equip, operate or plug it in a manner designed to prevent avoidable
escape of gas that may be stored in the storage stratum. Upon violation of this
subsection, the court of common pleas of the county where the land in question
is situated may compel compliance by injunction or grant other appropriate
relief in an action brought by the person storing gas in the storage
stratum.

(d)
Prerequisites to appropriation.--Before appropriating under this
chapter, a person shall attempt to agree with owners of interests in the real
property involved as to damages payable for rights and interests to be
appropriated, if the owners can be found and are sui juris. If the parties fail
to agree, the person shall tender a surety bond to the owners to secure them in
the payment of damages. If the owners refuse to accept the bond, cannot be found
or are not sui juris, and after reasonable notice to the owners by advertisement
or otherwise, the bond shall be presented for approval to the court of common
pleas of the county in which the tract of land is situated. Upon the approval of
the bond by the court, the right of the person to appropriate in accordance with
the provisions of this chapter shall be complete.

(e)
Appointment of viewers.--Upon petition of a property owner or a person
appropriating under this chapter, the court shall:

(1)
appoint three disinterested freeholders of the county to serve as viewers
to assess damages to be paid to the property owner for the rights
appropriated;

(2)
fix a time for the parties to meet;

(3)
provide notice to the parties; and

(4)
after the viewers have filed their report, fix reasonable compensation for
the service of the viewers.

(f)
Appeal.--Within 20 days after the filing of a report by viewers
appointed under subsection (e), a party may appeal and proceed to a jury trial
as in ordinary cases.

(g)
Requirements.--Nothing in this section shall relieve a person
operating a storage reservoir from the requirements of this chapter.

58c3251h

SUBCHAPTER E

ENFORCEMENT
AND REMEDIES

Sec.

3251.
Conferences.

3252.
Public nuisances.

3253.
Enforcement orders.

3254.
Restraining violations.

3254.1.
Well control emergency response cost recovery.

3255.
Penalties.

3256.
Civil penalties.

3257.
Existing rights and remedies preserved and cumulative remedies
authorized.

3258.
Inspection and production of materials, witnesses, depositions and rights
of entry.

3259.
Unlawful conduct.

3260.
Collection of fines and penalties.

3261.
Third party liability.

3262.
Inspection reports.

58c3251s

§
3251.  Conferences.

(a)
General rule.--The department or any person having a direct interest
in a matter subject to this chapter may, at any time, request that a conference
be held to discuss and attempt to resolve by mutual agreement a matter arising
under this chapter. Unless otherwise provided, conferences shall be held within
90 days after a request is received by the department, and notice shall be given
by the department to all interested parties. A representative of the department
shall attend the conference and the department may make recommendations. An
agreement reached at a conference shall be consistent with this chapter and, if
approved by the department, it shall be reduced to writing and shall be
effective, unless reviewed and rejected by the department within ten days after
the conference. The record of an agreement approved by the department shall be
kept on file by the department and copies shall be furnished to the parties. The
scheduling of a conference shall have no effect on the department's authority to
issue orders to compel compliance with this chapter.

(b)
Notification.--When a coal operator is to be notified of a proceeding
under this section, the department simultaneously shall send a copy of the
notice to the collective bargaining representative of employees of the coal
operator.

58c3251v

Cross
References.  Section 3251 is referred to in sections  3203, 3212,
3224, 3231, 3233, 3234 of this title.

58c3252s

§
3252.  Public nuisances.

A
violation of section 3217 (relating to protection of fresh groundwater and
casing requirements), 3218 (relating to protection of water supplies), 3219
(relating to use of safety devices) or 3220 (relating to plugging requirements),
or a regulation, order, term or condition of a permit relating to any of those
sections constitutes a public nuisance.

58c3252v

Special
Provisions in Appendix.  See section 4(3)(xvii) of Act 13 of 2012 in
the appendix to this title for special provisions relating to continuation of
prior law.

58c3253s

§
3253.  Enforcement orders.

(a)
General rule.--Except as modified by subsections (b), (c) and (d), the
department may issue orders necessary to aid in enforcement of this chapter. An
order issued under this chapter shall take effect upon notice, unless the order
specifies otherwise. The power of the department to issue an order under this
chapter is in addition to any other remedy available to the department under
this chapter or under any other law.

(b)
Suspension and revocation.--

(1)
The department may suspend or revoke a well permit or well registration
for any well:

(i)
in continuing violation of any of the following:

(A)
This chapter.

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

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

(D)
Any other statute administered by the department;

and

(ii)
the likely result of a violation is an unsafe operation or environmental
damage.

(2)
A suspension order of the department shall automatically terminate if the
violation upon which it is based is corrected by the operator to the
satisfaction of the department in order to bring the well into compliance with
this chapter.

(c)
Written notice.--Prior to suspension or revocation of a well permit or
registration, the department shall serve written notice on the well operator or
its agent, stating specifically the statutory provision, regulation or other
reason relied upon, along with factual circumstances surrounding the alleged
violation. If the department suspends or revokes the permit or registration, the
department may order the operator to cap the well if the likely result of the
violation is an unsafe operation or environmental damage.

(d)
Immediate orders.--An order of the department requiring immediate
cessation of drilling operations shall be effective only if authorized by the
secretary or a designee.

(e)
Grievances.--A person aggrieved by a department order issued under
this section shall have the right, within 30 days of receipt of the notice, to
appeal to the Environmental Hearing Board.

58c3253v

Special
Provisions in Appendix.  See section 4(3)(xviii) of Act 13 of 2012 in
the appendix to this title for special provisions relating to continuation of
prior law.

58c3254s

§
3254.  Restraining violations.

(a)
General rule.--In addition to any other remedy provided in this
chapter, the department may institute a suit in equity in the name of the
Commonwealth for an injunction to restrain a violation of this chapter or rules,
regulations, standards or orders adopted or issued under this chapter and to
restrain the maintenance or threat of a public nuisance. Upon motion of the
Commonwealth, the court shall issue a prohibitory or mandatory preliminary
injunction if it finds that the defendant is engaging in unlawful conduct, as
defined by this chapter, or conduct causing immediate and irreparable harm to
the public. The Commonwealth shall not be required to furnish bond or other
security in connection with the proceeding. In addition to an injunction, the
court in equity may level civil penalties as specified in section 3256 (relating
to civil penalties).

(b)
District attorney.--In addition to other remedies in this chapter,
upon relation of the district attorney of a county affected or upon relation of
the solicitor of a municipality affected, an action in equity may be brought in
a court of competent jurisdiction for an injunction to restrain a violation of
this chapter or rules and regulations promulgated under this chapter or to
restrain a public nuisance or detriment to health.

(c)
Concurrent penalties.--Penalties and remedies under this chapter shall
be deemed concurrent. Existence or exercise of one remedy shall not prevent the
department from exercising another remedy at law or in equity.

(d)
Jurisdiction.--Actions under this section may be filed in the
appropriate court of common pleas or in Commonwealth Court, and those courts are
hereby granted jurisdiction to hear actions under this section.

58c3254.1s

§
3254.1.  Well control emergency response cost recovery.

A
person liable for a well control emergency is responsible for all response costs
incurred by the department to respond to the well control emergency. In an
action before a court of competent jurisdiction, the department may recover all
its response costs, including the cost of regaining control of the well,
controlling the perimeter of the well site, preparing water sprays, establishing
trenches or dikes to capture runoff fluids and providing the resources and
equipment needs for the incident.

58c3254.1v

Special
Provisions in Appendix.  See section 4(3)(xix) of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

58c3255s

§
3255.  Penalties.

(a)
General violation.--A person violating a provision of this chapter
commits a summary offense and, upon conviction, shall be sentenced to pay a fine
of not more than $1,000 or to imprisonment of not more than 90 days, or both.
Each day during which the violation continues is a separate and distinct
offense.

(b)
Willful violation.--A person willfully violating a provision of this
chapter or an order of the department issued under this chapter commits a
misdemeanor and, upon conviction, shall be sentenced to pay a fine of not more
than $5,000 or to imprisonment of not more than one year, or both. Each day
during which the violation continues is a separate and distinct offense.

(c)
Authority.--The department may institute a prosecution against any
person or municipality for a violation of this chapter.

58c3255v

Special
Provisions in Appendix.  See section 4(3)(xx) of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

Cross
References.  Section 3255 is referred to in section  3232 of this
title.

58c3256s

§
3256.  Civil penalties.

In
addition to other remedies available at law or in equity for a violation of this
chapter, a regulation of the department, a departmental order or a permit
condition, the department, after a hearing, may assess a civil penalty
regardless of whether the violation was willful. The penalty shall not exceed
$25,000 plus $1,000 for each day during which the violation continues or, in the
case of a violation arising from the construction, alteration or operation of an
unconventional well, $75,000 plus $5,000 for each day during which the violation
continues. In determining the amount, the department shall consider willfulness
of the violation, damage or injury to natural resources of this Commonwealth or
their uses, endangerment of safety of others, the cost of remedying the harm,
savings resulting to the violator as a result of the violation and any other
relevant factor. When the department proposes to assess a civil penalty, it
shall notify the person of the proposed amount of the penalty. The person
charged with the penalty must, within 30 days of notification, pay the proposed
penalty in full or file an appeal of the assessment with the Environmental
Hearing Board. Failure to comply with the time period under this section shall
result in a waiver of all legal rights to contest the violation or the amount of
the penalty. The civil penalty shall be payable to the Commonwealth and
collectible in any manner provided at law for collection of debts. If a violator
neglects or refuses to pay the penalty after demand, the amount, together with
interest and costs that may accrue, shall become a lien in favor of the
Commonwealth on the real and personal property of the violator, but only after
the lien has been entered and docketed of record by the prothonotary of the
county where the property is situated. The department may transmit to the
prothonotaries of the various counties certified copies of all liens. It shall
be the duty of each prothonotary to enter and docket the liens of record in the
prothonotary's office and index them as judgments are indexed, without requiring
payment of costs as a condition precedent to entry.

58c3256v

Special
Provisions in Appendix.  See section 4(3)(xxi) of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

Cross
References.  Section 3256 is referred to in section  3254 of this
title.

58c3257s

§
3257.  Existing rights and remedies preserved and cumulative remedies
authorized.

Nothing
in this chapter stops the Commonwealth or a district attorney from proceeding in
a court of law or in equity to abate pollution forbidden under this chapter or a
nuisance under existing law. It is hereby declared to be the purpose of this
chapter to provide additional and cumulative remedies to control activities
related to drilling for or production of oil and gas in this Commonwealth, and
nothing contained in this chapter abridges or alters rights of action or
remedies existing, or which existed previously, in equity or under common or
statutory law, criminal or civil. Neither this chapter, the grant of a permit
under this chapter nor an act done by virtue of this chapter stops the
Commonwealth, in exercising rights under common or decisional law or in equity,
from suppressing a nuisance, abating pollution or enforcing common law or
statutory rights. No court of this Commonwealth with jurisdiction to abate
public or private nuisances shall be deprived of jurisdiction in an action to
abate a private or public nuisance instituted by any person on grounds that the
nuisance constitutes air or water pollution.

58c3258s

§
3258.  Inspection and production of materials, witnesses, depositions and
rights of entry.

(a)
General rule.--The department may make inspections, conduct tests or
sampling or examine books, papers and records pertinent to a matter under
investigation under this chapter to determine compliance with this chapter. For
this purpose, the duly authorized agents and employees of the department may at
all reasonable times enter and examine any involved property, facility,
operation or activity.

(a.1)
Preoperation inspections.--The operator may not commence drilling
activities until the department has conducted an inspection of the
unconventional well site after the installation of erosion and sediment control
measures. The department may conduct follow-up inspections of well sites and
related activities to determine compliance with this chapter.

(b)
Access.--The owner, operator or other person in charge of a property,
facility, operation or activity under this chapter, upon presentation of proper
identification and purpose either for inspection or to remediate or otherwise
respond to a well control emergency, by agents or employees of the department,
shall provide free and unrestricted entry and access. Upon refusal, the agent or
employee may obtain a search warrant or other suitable order authorizing entry
and inspection, remediation or response. It shall be sufficient to justify
issuance of a search warrant authorizing examination and inspection if:

(1)
there is probable cause to believe that the object of the investigation is
subject to regulation under this chapter; and

(2)
access, examination or inspection is necessary to enforce the provisions
of this chapter.

(c)
Witnesses.--In any part of this Commonwealth, the department may
subpoena witnesses, administer oaths, examine witnesses, take testimony and
compel production of books, records, maps, plats, papers, documents and other
writings pertinent to proceedings or investigations conducted by the department
under this chapter. Upon refusal to obey a subpoena by any person and on
application of the department, a court may enforce a subpoena in contempt
proceedings. Fees for serving a subpoena shall be the same as those paid to
sheriffs for similar services.

(d)
Deposition.--The department or a party to a proceeding before the
department may cause the deposition of a witness who resides in or outside of
this Commonwealth to be taken in the manner prescribed by law for taking
depositions in civil actions.

(e)
Witness fee.--Witnesses summoned before the department shall be paid
the same fees as are paid to witnesses in courts of record of general
jurisdiction. Witnesses whose depositions are taken under this chapter, and the
officers taking those depositions, shall be entitled to the same fees as those
paid for like services in court.

(f)
Purchasers.--Upon request, a purchaser of oil or gas shall provide the
department information necessary to determine ownership of facilities from which
the purchaser obtained oil or gas. The information shall be kept confidential
for a period of five years, and the department may utilize it in enforcement
proceedings. The department may request information under this section only when
a well does not comply with section 3211(h) (relating to well permits).

58c3258v

Special
Provisions in Appendix.  See section 4(3)(xxii) of Act 13 of 2012 in
the appendix to this title for special provisions relating to continuation of
prior law.

58c3259s

§
3259.  Unlawful conduct.

It
shall be unlawful for any person to:

(1)
Drill, alter, operate or utilize an oil or gas well without a permit or
registration from the department as required by this chapter or in violation of
rules or regulations adopted under this chapter, orders of the department or a
term or condition of a permit issued by the department.

(2)
Conduct an activity related to drilling for or production of oil and
gas:

(i)
contrary to this chapter, rules or regulations adopted under this chapter,
an order of the department or a term or condition of a permit issued by the
department; or

(ii)
in any manner as to create a public nuisance or adversely affect public
health, safety, welfare or the environment.

(3)
Refuse, obstruct, delay or threaten an agent or employee of the department
acting in the course of lawful performance of a duty under this chapter,
including, but not limited to, entry and inspection.

(4)
Attempt to obtain a permit or identify a well as an orphan well by
misrepresentation or failure to disclose all relevant facts.

(5)
Cause abandonment of a well by removal of casing or equipment necessary
for production without plugging the well in the manner prescribed under section
3220 (relating to plugging requirements), except that the owner or operator of a
well may temporarily remove casing or equipment necessary for production, but
only if it is part of the normal course of production activities.

58c3260s

§
3260.  Collection of fines and penalties.

Fines
and penalties shall be collectible in a manner provided by law for collection of
debts. If a person liable to pay a penalty neglects or refuses to pay after
demand, the amount, together with interest and costs that may accrue, shall be a
judgment in favor of the Commonwealth on the person's property, but only after
the judgment has been entered and docketed of record by the prothonotary of the
county where the property is situated. The department may transmit to
prothonotaries of the various counties certified copies of all judgments, and it
shall be the duty of each prothonotary to enter and docket them of record in the
prothonotary's office and index them as judgments are indexed, without requiring
payment of costs as a condition precedent to entry.

58c3261s

§
3261.  Third party liability.

If
a person other than a well operator renders a service or product to a well or
well site, that person is liable with the well owner or operator for violations
of this chapter arising out of and caused by the person's actions at the well or
well site, in accordance with State law.

58c3261v

Special
Provisions in Appendix.  See section 4(3)(xxiii) of Act 13 of 2012 in
the appendix to this title for special provisions relating to continuation of
prior law.

58c3262s

§
3262.  Inspection reports.

The
department shall post inspection reports on its publicly accessible Internet
website. The inspection reports shall include:

(1)
The nature and description of violations.

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

(3)
The status of the violation.

(4)
The remedial steps taken by the operator or the department to address the
violation.

58c3262v

Special
Provisions in Appendix.  See section 4(3)(xxiv) of Act 13 of 2012 in
the appendix to this title for special provisions relating to continuation of
prior law.

58c3271h

SUBCHAPTER F

MISCELLANEOUS
PROVISIONS

Sec.

3271.
Well plugging funds.

3272.
(Reserved).

3273.
Effect on department authority.

3273.1.
Relationship to solid waste and surface mining.

3274.
Regulations.

58c3271s

§
3271. Well plugging funds.

(a)
Appropriation.--Fines, civil penalties and permit and registration
fees collected under this chapter are appropriated to the department to carry
out the purposes of this chapter.

(b)
Surcharge.--To aid in indemnifying the Commonwealth for the cost of
plugging abandoned wells, a $50 surcharge is added to the permit fee established
by the department under section 3211 (relating to well permits) for new wells.
Money collected as a result of the surcharge shall be paid into a restricted
revenue account in the State Treasury to be known as the Abandoned Well Plugging
Fund and expended by the department to plug abandoned wells threatening the
health and safety of persons or property or pollution of waters of this
Commonwealth.

(c)
Orphan Well Plugging Fund.--The following shall apply:

(1)
A restricted revenue account to be known as the Orphan Well Plugging Fund
is created. A $100 surcharge for wells to be drilled for oil production and a
$200 surcharge for wells to be drilled for gas production are added to the
permit fee established by the department under section 3211 for new wells. The
surcharges shall be placed in the Orphan Well Plugging Fund and expended by the
department to plug orphan wells. If an operator rehabilitates a well abandoned
by another operator or an orphan well, the permit fee and the surcharge for the
well shall be waived.

(2)
The department shall study its experience in implementing this section and
shall report its findings to the Governor and the General Assembly by August 1,
1992. The report shall contain information relating to the balance of the fund,
number of wells plugged, number of identified wells eligible for plugging and
recommendations as to alternative funding mechanisms.

(3)
Expenditures by the department for plugging orphan wells are limited to
fees collected under this chapter. No money from the General Fund shall be
expended for this purpose.

58c3272s

§
3272.  (Reserved).

58c3273s

§
3273.  Effect on department authority.

This
chapter does not affect, limit or impair any right or authority of the
department under the act of June 22, 1937 (P.L.1987, No.394), known as The Clean
Streams Law; the act of January 8, 1960 (1959 P.L.2119, No.787), known as the
Air Pollution Control Act; the act of November 26, 1978 (P.L.1375, No.325),
known as the Dam Safety and Encroachments Act; or the act of July 7, 1980
(P.L.380, No.97), known as the Solid Waste Management Act.

58c3273.1s

§
3273.1.  Relationship to solid waste and surface mining.

(a)
General rule.--The obligation to obtain a permit and post a bond under
Articles III and V of the act of July 7, 1980 (P.L.380, No.97), known as the
Solid Waste Management Act, and to provide public notice under section
1905-A(b)(1)(v) of the act of April 9, 1929 (P.L.177, No.175), known as The
Administrative Code of 1929, for any pit, impoundment, method or facility
employed for the disposal, processing or storage of residual wastes generated by
the drilling of an oil or gas well or from the production of wells which is
located on the well site, shall be considered to have been satisfied if the
owner or operator of the well meets the following conditions:

(1)
the well is permitted under the requirements of section 3211 (relating to
well permits) or registered under section 3213 (relating to well registration
and identification);

(2)
the owner or operator has satisfied the financial security requirements of
section 3225 (relating to bonding) by obtaining a surety or collateral bond for
the well and well site; and

(3)
the owner or operator maintains compliance with this chapter and
applicable regulations of the Environmental Quality Board.

(b)
Noncoal surface mining.--Obligations under the act of December 19,
1984 (P.L.1093, No.219), known as the Noncoal Surface Mining Conservation and
Reclamation Act, or a   regulation promulgated under the Noncoal
Surface Mining Conservation and Reclamation Act, for any borrow area where
minerals are extracted solely for the purpose of oil and gas well development,
including access road construction, shall be considered to have been satisfied
if the owner or operator of the well meets the conditions imposed under
subsection (a)(1) and (2) and maintains compliance with this chapter and
applicable regulations of the Environmental Quality Board.

(c)
Solid Waste Management Act.--This section does not diminish or
otherwise affect duties or obligations of an owner or operator under the Solid
Waste Management Act. This section does not apply to waste classified as
hazardous waste under the Solid Waste Management Act or the Resource
Conservation and Recovery Act of 1976 (Public Law 94-580, 90 Stat. 2795, 42
U.S.C. § 6901 et seq.).

(d)
Definition.--As used in this section, the term "well site" means areas
occupied by all equipment or facilities necessary for or incidental to drilling,
production or plugging a well.

58c3274s

§
3274.  Regulations.

The
Environmental Quality Board shall promulgate regulations to implement this
chapter.

58c3301h

CHAPTER 33

LOCAL
ORDINANCES RELATING TO

OIL
AND GAS OPERATIONS

Sec.

3301.
Definitions.

3302.
Oil and gas operations regulated pursuant to Chapter 32.

3303.
Oil and gas operations regulated by environmental acts.

3304.
Uniformity of local ordinances.

3305.
Commission.

3306.
Civil actions.

3307.
Attorney fees and costs.

3308.
Ineligibility.

3309.
Applicability.

Enactment.
Chapter 33 was added February 14, 2012, P.L.83, No.13, effective in 60
days.

Special
Provisions in Appendix.  See section 4(1) of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

Cross
References.  Chapter 33 is referred to in sections 2303, 2314 of this
title.

58c3301s

§
3301.  Definitions.

The
following words and phrases when used in this chapter shall have the meanings
given to them in this section unless the context clearly indicates
otherwise:

"Building."
An occupied structure with walls and a roof within which individuals live
or customarily work.

"Commission."
The Pennsylvania Public Utility Commission.

"Environmental
acts."  All statutes enacted by the Commonwealth relating to the
protection of the environment or the protection of public health, safety and
welfare, that are administered and enforced by the department or by another
Commonwealth agency, including an independent agency, and all Federal statutes
relating to the protection of the environment, to the extent those statutes
regulate oil and gas operations.

"Local
government."  A county, city, borough, incorporated town or township of
this Commonwealth.

"Local
ordinance."  An ordinance or other enactment, including a provision of
a home rule charter, adopted by a local government that regulates oil and gas
operations.

"MPC."
The act of July 31, 1968 (P.L.805, No.247), known as the Pennsylvania
Municipalities Planning Code.

"Oil
and gas operations."  The term includes the following:

(1)
well location assessment, including seismic operations, well site
preparation, construction, drilling, hydraulic fracturing and site restoration
associated with an oil or gas well of any depth;

(2)
water and other fluid storage or impoundment areas used exclusively for
oil and gas operations;

(3)
construction, installation, use, maintenance and repair of:

(i)
oil and gas pipelines;

(ii)
natural gas compressor stations; and

(iii)
natural gas processing plants or facilities performing equivalent
functions; and

(4)
construction, installation, use, maintenance and repair of all equipment
directly associated with activities specified in paragraphs (1), (2) and (3), to
the extent that:

(i)
the equipment is necessarily located at or immediately adjacent to a well
site, impoundment area, oil and gas pipeline, natural gas compressor station or
natural gas processing plant; and

(ii)
the activities are authorized and permitted under the authority of a
Federal or Commonwealth agency.

"Permitted
use."  A use which, upon submission of written notice to and receipt of
a permit issued by a zoning officer or equivalent official, is authorized to be
conducted without restrictions other than those set forth in section 3304
(relating to uniformity of local ordinances).

58c3302s

§
3302.  Oil and gas operations regulated pursuant to Chapter 32.

Except
with respect to local ordinances adopted pursuant to the MPC and the act of
October 4, 1978 (P.L.851, No.166), known as the Flood Plain Management Act, all
local ordinances purporting to regulate oil and gas operations regulated by
Chapter 32 (relating to development) are hereby superseded. No local ordinance
adopted pursuant to the MPC or the Flood Plain Management Act shall contain
provisions which impose conditions, requirements or limitations on the same
features of oil and gas operations regulated by Chapter 32 or that accomplish
the same purposes as set forth in Chapter 32. The Commonwealth, by this section,
preempts and supersedes the regulation of oil and gas operations as provided in
this chapter.

58c3302v

Special
Provisions in Appendix.  See section 4 of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

Cross
References.  Section 3302 is referred to in section  3304 of this
title.

58c3303s

§
3303.  Oil and gas operations regulated by environmental acts.

Notwithstanding
any other law to the contrary, environmental acts are of Statewide concern and,
to the extent that they regulate oil and gas operations, occupy the entire field
of regulation, to the exclusion of all local ordinances. The Commonwealth by
this section, preempts and supersedes the local regulation of oil and gas
operations regulated by the environmental acts, as provided in this chapter.

58c3303v

Cross
References.  Section 3303 is referred to in section  3304 of this
title.

58c3304s

§
3304.  Uniformity of local ordinances.

(a)
General rule.--In addition to the restrictions contained in sections
3302 (relating to oil and gas operations regulated pursuant to Chapter 32) and
3303 (relating to oil and gas operations regulated by environmental acts), all
local ordinances regulating oil and gas operations shall allow for the
reasonable development of oil and gas resources.

(b)
Reasonable development of oil and gas resources.--In order to allow
the for the reasonable development of oil and gas resources, a local
ordinance:

(1)
Shall allow well and pipeline location assessment operations, including
seismic operations and related activities conducted in accordance with all
applicable Federal and State laws and regulations relating to the storage and
use of explosives throughout every local government.

(2)
May not impose conditions, requirements or limitations on the construction
of oil and gas operations that are more stringent than conditions, requirements
or limitations imposed on construction activities for other industrial uses
within the geographic boundaries of the local government.

(3)
May not impose conditions, requirements or limitations on the heights of
structures, screening and fencing, lighting or noise relating to permanent oil
and gas operations that are more stringent than the conditions, requirements or
limitations imposed on other industrial uses or other land development within
the particular zoning district where the oil and gas operations are situated
within the local government.

(4)
Shall have a review period for permitted uses that does not exceed 30 days
for complete submissions or that does not exceed 120 days for conditional
uses.

(5)
Shall authorize oil and gas operations, other than activities at
impoundment areas, compressor stations and processing plants, as a permitted use
in all zoning districts.

(5.1)
Notwithstanding section 3215 (relating to well location restrictions), may
prohibit, or permit only as a conditional use, wells or well sites otherwise
permitted under paragraph (5) within a residential district if the  well
site cannot be placed so that the wellhead is at least 500 feet from any
existing building. In a residential district, all of the following apply:

(i)
A well site may not be located so that the outer edge of the well pad is
closer than 300 feet from an existing building.

(ii)
Except as set forth in paragraph (5) and this paragraph, oil and gas
operations, other than the placement, use and repair of oil and gas pipelines,
water pipelines, access roads or security facilities, may not take place within
300 feet of an existing building.

(6)
Shall authorize impoundment areas used for oil and gas operations as a
permitted use in all zoning districts, provided that the edge of any impoundment
area shall not be located closer than 300 feet from an existing building.

(7)
Shall authorize natural gas compressor stations as a permitted use in
agricultural and industrial zoning districts and as a conditional use in all
other zoning districts, if the natural gas compressor building meets the
following standards:

(i)
is located 750 feet or more from the nearest existing building or 200 feet
from the nearest lot line, whichever is greater, unless waived by the owner of
the building or adjoining lot; and

(ii)
the noise level does not exceed a noise standard of 60dbA at the nearest
property line or the applicable standard imposed by Federal law, whichever is
less.

(8)
Shall authorize a natural gas processing plant as a permitted use in an
industrial zoning district and as conditional uses in agricultural zoning
districts if all of the following apply:

(i)
The natural gas processing plant building is located at the greater of at
least 750 feet from the nearest existing building or at least 200 feet from the
nearest lot line unless waived by the owner of the building or adjoining
lot.

(ii)
The noise level of the natural gas processing plant building does not
exceed a noise standard of 60dbA at the nearest property line or the applicable
standard imposed by Federal law, whichever is less.

(9)
Shall impose restrictions on vehicular access routes for overweight
vehicles only as authorized under 75 Pa.C.S. (relating to vehicles) or the
MPC.

(10)
May not impose limits or conditions on subterranean operations or hours of
operation of compressor stations and processing plants or hours of operation for
the drilling of oil and gas wells or the assembly and disassembly of drilling
rigs.

(11)
May not increase setback distances set forth in Chapter 32 (relating to
development) or this chapter. A local ordinance may impose setback distances
that are not regulated by or set forth in Chapter 32 or this chapter if the
setbacks are no more stringent than those for other industrial uses within the
geographic boundaries of the local government.

58c3304v

Cross
References.  Section 3304 is referred to in section  3301 of this
title.

58c3305s

§
3305.  Commission.

(a)
Advisory opinions to municipalities.--

(1)
A municipality may, prior to the enactment of a local ordinance, in
writing, request the commission to review a proposed local ordinance to issue an
opinion on whether it violates the MPC, this chapter or Chapter 32 (relating to
development).

(2)
Within 120 days of receiving a request under paragraph (1), the commission
shall, in writing, advise the municipality whether or not the local ordinance
violates the MPC, this chapter or Chapter 32.

(3)
An opinion under this subsection shall be advisory in nature and not
subject to appeal.

(b)
Orders.--

(1)
An owner or operator of an oil or gas operation, or a person residing
within the geographic boundaries of a local government, who is aggrieved by the
enactment or enforcement of a local ordinance may request the commission to
review the local ordinance of that local government to determine whether it
violates the MPC, this chapter or Chapter 32.

(2)
Participation in the review by the commission shall be limited to parties
specified in paragraph (1) and the municipality which enacted the local
ordinance.

(3)
Within 120 days of receiving a request under this subsection, the
commission shall issue an order to determine whether the local ordinance
violates the MPC, this chapter or Chapter 32.

(4)
An order under this subsection shall be subject to de novo review by
Commonwealth Court. A petition for review must be filed within 30 days of the
date of service of the commission's order. The order of the commission shall be
made part of the record before the court.

(c)
Exemptions.--An opinion under subsection (a) and an order under
subsection (b) shall not be subject to:

(1)
2 Pa.C.S. Ch. 5 Subch. A (relating to practice and procedure of
Commonwealth agencies);

(2)
65 Pa.C.S. Ch. 7 (relating to open meetings); or

(3)
66 Pa.C.S. Ch. 3  Subch. B (relating to investigations and
hearings).

(d)
Authority.--The commission has the following powers to carry out this
chapter:

(1)
Employ individuals.

(2)
Issue orders.

(3)
Promulgate regulations.

(4)
Until January 1, 2013, promulgate temporary regulations. Regulations under
this paragraph:

(i)
shall expire no later than two years following the effective date of this
section; and

(ii)
are exempt from:

(A)
sections 201, 202 and 203 of the act of July 31, 1968 (P.L.769, No.240),
referred to as the Commonwealth Documents Law; and

(B)
the act of June 25, 1982 (P.L.633, No.181), known as the Regulatory Review
Act.

58c3305v

Cross
References.  Section 3305 is referred to in section  3306 of this
title.

58c3306s

§
3306.  Civil actions.

The
following shall apply:

(1)
Notwithstanding any provision of 42 Pa.C.S. Ch. 85 Subch. C (relating to
actions against local parties), any person who is aggrieved by the enactment or
enforcement of a local ordinance that violates the MPC, this chapter or Chapter
32 (relating to development) may bring an action in Commonwealth Court to
invalidate the ordinance or enjoin its enforcement.

(2)
An aggrieved person may proceed under this section without first obtaining
review of the ordinance by the commission.

(3)
In an action relating to the enactment or enforcement of a local
ordinance, a determination of the commission made under section 3305(b)
(relating to commission) shall become part of the record before the court.

58c3307s

§
3307.  Attorney fees and costs.

In
an action brought under section 3306 (relating to civil actions), the court may
do any of the following:

(1)
If the court determines that the local government enacted or enforced a
local ordinance with willful or reckless disregard of the MPC, this chapter or
Chapter 32 (relating to development), it may order the local government to pay
the plaintiff reasonable attorney fees and other reasonable costs incurred by
the plaintiff in connection with the action.

(2)
If the court determines that the action brought by the plaintiff was
frivolous or was brought without substantial justification in claiming that the
local ordinance in question was contrary to the MPC, this chapter or Chapter 32,
it may order the plaintiff to pay the local government reasonable attorney fees
and other reasonable costs incurred by the local government in defending the
action.

58c3307v

Cross
References.  Section 3306 is referred to in section  3307 of this
title.

58c3308s

§
3308.  Ineligibility.

If
the commission, Commonwealth Court or the Supreme Court issues an order that a
local ordinance violates the MPC, this chapter or Chapter 32 (relating to
development), the municipality enacting or enforcing the local ordinance shall
be immediately ineligible to receive any funds collected under Chapter 23
(relating to unconventional gas well fee). The local government shall remain
ineligible to receive funds under Chapter 23 until the local government amends
or repeals its ordinance in accordance with this chapter or the order or
determination that the local ordinance is unlawful is reversed on appeal.

58c3309s

§
3309.  Applicability.

(a)
Ordinances.--This chapter shall apply to the enforcement of local
ordinances existing on the effective date of this chapter and to the enactment
or enforcement of a local ordinance enacted on or after the effective date of
this chapter.

(b)
Local governments.--A local government that has enacted a local
ordinance relating to oil and gas operations prior to the effective date of this
chapter shall have 120 days from the effective date of this chapter to review
and amend an ordinance in order to comply with this chapter.

58c3501h

CHAPTER 35

RESPONSIBILITY
FOR FEE

Sec.

§
3501.  Declaration of policy.

§
3502.  Prohibition.

§
3503.  Existing agreements.

§
3504.  Future agreements.

Enactment.
Chapter 35 was added February 14, 2012, P.L.83, No.13, effective in 60
days.

Special
Provisions in Appendix.  See section 4(1) of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

58c3501s

§
3501.  Declaration of policy.

The
General Assembly finds and declares as follows:

(1)
The enactment of this chapter is an exercise of the authority of the
Commonwealth to safeguard the vital interests of its citizens.

(2)
This chapter is intended to advance the significant and legitimate public
purpose of ensuring that entities responsible for the impacts of unconventional
oil and gas well development are solely responsible for payment of impact
fees.

58c3502s

§
3502.  Prohibition.

A
producer may not make the fee authorized under Chapter 23 (relating to
unconditional gas well fee) an obligation, indebtedness or liability of a
landowner, leaseholder or other person in possession of real property, upon
which the removal or extraction occurs.

58c3502v

Cross
References.  Section 3502 is referred to in sections 3503, 3504 of this
title.

58c3503s

§
3503.  Existing agreements.

A
provision of an agreement in existence prior to the effective date of this
section which violates section 3502 (relating to prohibition) is declared to be
illegal and contrary to public policy and shall be null and void.

58c3504s

§
3504.  Future agreements.

On
or after the effective date of this section, a provision of an agreement in
violation of section 3502 (relating to prohibition) is declared to be illegal
and contrary to public policy and shall be null and void.

58c32303v

Special
Provisions in Appendix.  See section 4(3)(i) of Act 13 of 2012 in the
appendix to this title for special provisions relating to continuation of prior
law.

58cax

APPENDIX
TO TITLE 58

OIL
AND GAS

-------

Supplementary
Provisions of Amendatory Statutes

-------

2012,
FEBRUARY 14, P.L.87, NO.13

§
2.  Fiscal year 2011-2012 appropriation.

For
fiscal year 2011-2012, $250,000 is appropriated from the General Fund to the
Pennsylvania Public Utility Commission for costs associated with implementation
of this act.

Explanatory
Note.  Act 13 added Parts I, II and III of Title 58.

§
4.  Continuation of prior law.

The
addition of 58 Pa.C.S. Ch. 32 and 58 Pa.C.S. § 3302 is a continuation of the act
of December 19, 1984 (P.L.1140, No.223), known as the Oil and Gas Act. The
following apply:

(1)
Except as otherwise provided in 58 Pa.C.S. Ch. 32 or 33, all activities
initiated under the Oil and Gas Act shall continue and remain in full force and
effect and may be completed under 58 Pa.C.S. Chs. 32 and 33. Orders,
regulations, rules and decisions which were made under the Oil and Gas Act and
which are in effect on the effective date of section 3(2) of this act shall
remain in full force and effect until revoked, vacated or modified under 58
Pa.C.S. Ch. 32 or 33. Except as provided in 58 Pa.C.S. Ch. 35, contracts,
obligations and collective bargaining agreements entered into under the Oil and
Gas Act are not affected nor impaired by the repeal of the Oil and Gas Act.

(2)
Except as set forth in paragraph (3), any difference in language between
58 Pa.C.S. Ch. 32 and the Oil and Gas Act is intended only to conform to the
style of the Pennsylvania Consolidated Statutes and is not intended to change or
affect the legislative intent, judicial construction or administration and
implementation of the Oil and Gas Act.

(3)
Paragraph (2) does not apply to the addition of the following provisions
of 58 Pa.C.S.:

(i)
Section 3203.

(ii)
Section 3211.

(iii)
Section 3212.1.

(iv)
Section 3215.

(v)
Section 3216.

(vi)
Section 3218.

(vii)
Section 3218.1.

(viii)
Section 3218.2.

(ix)
Section 3218.3.

(x)
Section 3218.4.

(xi)
Section 3218.5.

(xii)
Section 3219.1.

(xiii)
Section 3222.

(xiv)
Section 3222.1.

(xv)
Section 3225.

(xvi)
Section 3227.

(xvii)
Section 3252.

(xviii)
Section 3253.

(xix)
Section 3254.1.

(xx)
Section 3255.

(xxi)
Section 3256.

(xxii)
Section 3258.

(xxiii)
Section 3261.

(xxiv)
Section 3262.

(4)
Any difference in language between 58 Pa.C.S. § 3302 and section 602 of
the Oil and Gas Act is intended only to conform to the style of the Pennsylvania
Consolidated Statutes and is not intended to change or affect the legislative
intent, judicial construction or administration and implementation of section
602 of the Oil and Gas Act.

§
5.  Application of law.

The
addition of 58 Pa.C.S. Ch. 23 shall apply to all oil and gas deposits and oil
and gas development activities and operations subject to the jurisdiction of the
Commonwealth. With respect to oil and gas deposits on national forest lands
identified under section 17(o) of the Mineral Leasing Act (106 Stat. 3108, 30
U.S.C. § 226(o)), the application of regulations and statutes adopted by the
Commonwealth shall be the exclusive method and means by which any requirements
may be imposed on any feature, aspect or process of oil and gas operations
pertaining to the development of the deposits.

§
6.  Legislative intent.

It
is not the intent of the General Assembly to change, repeal or otherwise affect
any of the provisions of the act of December 18, 1984 (P.L.1069, No.214), known
as the Coal and Gas Resource Coordination Act, or to change, repeal or otherwise
affect any of the provisions of the act of January 26, 2011 (P.L.7, No.2),
entitled "An act amending the act of December 18, 1984 (P.L.1069, No.214),
entitled 'An act requiring coordination of coal mine and gas well operators;
authorizing Department of Environmental Resources enforcement powers; and
providing penalties,' further providing for definitions, for permits, for permit
application, for minimum distance between gas wells, for well class designation
and for coordination of gas well drilling through active coal mines; providing
for a pillar support study; and further providing for plugging gas wells
penetrating workable coal seams, for penalties and for validity of other laws,"
which amended the Coal and Gas Resource Coordination Act.

§
7.  Department of Transportation statement of policy.

Within
90 days of the effective date of this section, the Department of Transportation
shall issue a statement of policy, effective upon publication in the
Pennsylvania Bulletin, adopting an appropriate methodology to provide letters of
local determination that identify particular vehicles, routes or uses as local
in nature. The Department of Transportation may determine that hauling related
to unconventional oil and gas development is excluded from local traffic status
based on its disproportionate and qualitatively different impact upon highways
and bridges. The methodology shall allow for exemptions from 67 Pa. Code Ch. 189
(relating to hauling in excess of posted weight limit) related to at-risk
industry sectors in this Commonwealth that have experienced a 20% or more
decline in Statewide employment since 2002 or that demonstrate other evidence of
economic decline as determined by the department in consultation with the
Department of Labor and Industry. The exemptions and related requirements shall
remain in existence until December 31, 2015.

§
8.  Pipeline placement for natural gas.

The
Energy Executive of the Governor shall consult with the Department of
Environmental Protection, the Pennsylvania Public Utility Commission, State
legislators, local government organizations, natural gas industry
representatives, conservationists and other affected entities on the issue of
pipeline placement for natural gas gathering lines in this Commonwealth. The
Energy Executive of the Governor shall submit a report summarizing pipeline
placement for natural gas gathering lines and make his recommendations to the
General Assembly within one year of the effective date of this
section.