act-1955-0-225•Pennsylvania Act 1955-225 — GAS OPERATIONS WELL-DRILLING PETROLEUM AND COAL MINING ACT - REPEALED
Pennsylvania Act 1955-225 — GAS OPERATIONS WELL-DRILLING PETROLEUM AND COAL MINING ACT - REPEALED
act-1955-0-2251955 Pa. Act 225Law
Act text part 1
GAS OPERATIONS WELL-DRILLING PETROLEUM AND COAL MINING ACT - REPEALED
Act of Nov. 30, 1955, P.L. 756, No. 225 Cl. 52
AN ACT
Relating to coal mining, well operations and the underground
storage of gas, except in storage reservoirs excavated in
rock formations specifically for storage purposes, the safety
of personnel and facilities employed therein, and the
protection of the people residing in the area and their
property rights; prescribing the rights and duties of well
operators, before, during, and after the drilling of wells
for the production, extraction or storage of any gas,
petroleum or other liquid; regulating the underground storage
of gas under workable coal seams; prescribing the rights and
duties of owners and operators of coal mines in relation to
wells and underground storage areas; granting certain
corporations a limited right of eminent domain to appropriate
interests in real property for surface and sub-surface
operations in connection with the underground storage of gas;
creating the Oil and Gas Division of the Department of Mines
and defining its personnel, powers and duties; providing for
hearings and the procedures to be followed therein and
imposing duties upon the courts and providing methods for the
enforcement of the provisions of this act and imposing
penalties. (Title amended Mar. 3, 1970, P.L.81, No.38)
Compiler's Note: Section 6(a) of Act 48 of 1981, which
provided for the fixing of fees charged by administrative
agencies, provided that Act 225 is repealed insofar as it
establishes a set fee for any activity inconsistent with
the fees set forth in Act 48.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
ARTICLE I
PRELIMINARY PROVISIONS
Section 101. Short Title.--This act shall be known as the
"Gas Operations Well-Drilling Petroleum and Coal Mining Act."
Section 102. Definitions.--As used in this act:
(1) "Coal mine" means those operations in a coal seam which
include the excavated and abandoned portions as well as the
places actually being worked, also all underground workings and
shafts, slopes, tunnels and other ways and openings and all such
shafts, slopes, tunnels and other openings in the course of
being sunk or driven, together with all roads and facilities
connected with them below the surface.
(2) "Operating coal mine" means (i) a coal mine which is
producing coal or has been in production of coal at any time
during the twelve months immediately preceding the date its
status is put in question under this act and any worked out or
abandoned coal mine connected underground with or contiguous to
such operating coal mine as herein defined and (ii) any coal
mine to be established or reestablished as an operating coal
mine in the future pursuant to subsection (c) of section 303 of
this act.
(3) "Outside coal boundaries" when used in conjunction with
the term "operating coal mine," means the boundaries of the coal
acreage assigned to such coal mine and which can be practically
and reasonably expected to be mined through such coal mine.
(4) "Workable coal seam" means (i) a coal seam in fact being
mined in the area in question under this act by underground
methods or (ii) one which in the judgment of the division can be
and that it is reasonable to be expected will be mined by
underground methods.
(5) "Coal operator" means any person as herein defined who
proposes to or does operate a coal mine either as owner or
lessee.
(6) "Well" when used in this act means a bore hole drilled
or being drilled for the purpose of or to be used for producing,
extracting or injecting any gas, petroleum or other liquid but
excluding bore holes drilled to produce potable water to be used
as such.
(7) "Division" means the Oil and Gas Division of the
Department of Mines.
(8) "Owner" means any person as herein defined who owns,
manages, operates, leases, controls or possesses any well or
coal property.
(9) "Well operator" means any person as herein defined who
proposes to or does locate, drill, operate, plug, recondition or
abandon any well as herein defined; in cases where a well is
used in connection with the underground storage of gas, the term
"well operator" shall also mean a "storage operator" as
hereinafter defined.
(10) "Gas" means any natural, manufactured or by-product gas
or any mixture thereof.
(11) "Storage reservoir" means that portion of any
subterranean sand or rock stratum or strata into which gas is or
may be injected for the purpose of storage or for the purpose of
testing whether said stratum is suitable for storage.
(12) "Plat" means a map, drawing or print accurately drawn
to scale showing the proposed or existing location of a well or
wells as herein defined.
(13) "Casing" means a string or strings of pipe commonly
placed in wells drilled for natural gas or petroleum.
(14) "Bridge" means an obstruction placed in a well at any
specified depth.
(15) "Cement" or "cement grout" means hydraulic cement
properly mixed with water only.
(16) "Linear foot" means a unit of measurement in a straight
line on a horizontal plane.
(17) "Oil" means the same as the word "petroleum."
(18) "Person" means any individual, association, partnership
or corporation.
(19) "Reservoir protective area" means all of that area
outside of and surrounding the storage reservoir boundary but
within two thousand linear feet thereof.
(20) "Retreat mining" means the removal of such coal
pillars, ribs and stumps as remain after the development mining
has been completed in that section of a coal mine.
(21) "Pillar" means a solid block of coal surrounded by
either active mine workings or a mined out area.
(22) "Inactivate" means to shut off all flow of gas from a
well by means of a temporary plug or other suitable device or by
injecting aquagel or other such equally non-porous material into
the well.
(23) "Storage operator" means any person, as herein defined,
who proposes to or does operate a storage reservoir either as
owner or lessee.
(24) "Completion of a well" shall mean 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 the
well is abandoned. ((24) added July 31, 1968, P.L.881, No.265)
Section 103. Exclusions From Effect of Act.--Nothing
contained in this act shall apply to storage of gas or liquids
in storage reservoirs excavated in rock formations specifically
for storage purposes.
Section 104. Declaration of Public Policy.--The provisions
of this act shall be liberally construed to effect the safety of
personnel and facilities employed in the underground storage of
gas and the protection of the people residing in the area where
such gas is stored and their property rights.
(104 added Mar. 3, 1970, P.L.81, No.38)
ARTICLE II
DRILLING AND PLUGGING
Section 201. Well Operator's Responsibility Before and
During Drilling.--(a) Before drilling any well, the well
operator shall have a plat prepared by a competent engineer or
surveyor (on a form to be furnished by the division) showing the
political subdivision and county in which the tract of land upon
which the well to be drilled is located, the name of the lessor
or landowner, the name of the owner or operator of all known
underlying workable coal seams, if any, the acreage in the tract
to be drilled, the proposed location of the well determined by
survey, the courses and distances of such location from two or
more permanent points or landmarks on said tract, the proposed
angle and direction of such well, if the well is to be deviated
substantially from a vertical course and the number or other
identification to be given the well, indicating the workable
coal seams, if any, underlying said tract which are to be cased
off in accordance with section 204 of this act and shall
forward, by registered mail, copies of the plat to the division
and the division shall in turn forward, by registered mail, a
copy of said plat to the owner and lessee, if any, of such coal
and every coal operator, operating in any of said seams of coal,
who has the right to file objections under section 202 and who
has mapped the same and filed his maps with the Department of
Mines as required by law. If the well operator submits to the
division written approval of the proposed well location by the
coal operator or owner, if any, of the coal underlying the
proposed well location and no objections are raised by the
division within ten days or if no such approval has been
submitted and no objections are made to such proposed well
location within ten days from receipt of such notice by the coal
operator or owner, if any, or by the division, the same shall be
filed and become a permanent record of such location, subject to
inspection at any time by any interested person, and the
division shall forthwith issue a drilling permit to the well
operator and the well operator may proceed with the drilling of
the well at the exact location shown on the plat: Provided,
however, That in non-coal 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. The
remaining wells of the project shall be shown on the plat with
courses and distances from the first well plainly marked. Prior
to drilling each of the additional project wells, the well
operator shall notify the division of his intention, and a
permit will be issued forthwith.
(b) It shall be the duty of the well operator to keep a
driller's log of such well. Such log shall show the character,
thickness and depth of the formations passed through or
encountered in the drilling of such well and show the depth at
which all gas, oil and water were encountered. The log shall
show whether the well is productive of gas, oil or water, the
volume or quantity thereof and the initial rock pressure of such
well which has been taken for a period of not less than forty-
eight hours. A copy of this log shall be furnished to the
division within thirty days after the completion of the well and
it shall be kept on file by the division.
(c) Drilling permits issued for wells covered by this act
shall expire one year after issuance unless operations for
drilling the well are commenced within such period and
prosecuted with due diligence. Nothing in this subsection shall
be construed to rescind the provisions pertaining to drilling
permits contained in the act of July 25, 1961 (P.L.825), known
as the "Oil and Gas Conservation Law."
(201 amended July 31, 1968, P.L.881, No.265)
Section 202. Drilling Permit, Agreed Location of Wells,
Docket of Proceedings.--(a) In case any well location referred
to in subsection (a) of section 201 is made so that the well
when drilled will penetrate anywhere within the outside coal
boundaries of any operating coal mine or coal mine already
projected and platted but not yet being operated or within one
thousand linear feet beyond such boundaries and the well when
drilled or the pillar of coal about the well will, in the
opinion of the coal owner or operator, unduly interfere with or
endanger such mine, then the coal owner or operator affected
shall have the right to file objections in accordance with
subsection (h) of section 501 to such proposed location within
ten days of the receipt by the coal operator of the plat
provided for in subsection (a) of section 201. An alternative
location at which the proposed well could be drilled to overcome
such objections shall, if possible, be indicated. If no such
objections to the proposed location are filed or if none are
raised by the division within ten 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
division and no objections are raised by the division within ten
days, the division shall forthwith issue to the well operator a
drilling permit authorizing the well operator to drill at such
location.
(b) If any objections are filed by any coal operator or
owner or are made by the division, the division shall fix a time
and place for a conference in accordance with section 502 not
more than ten days from the date of the service of such
objections on the well operator at which conference the well
operator and such coal operators or owners as are present or
represented shall consider the objections and attempt to agree
upon a location. If they fail to agree upon a location, the
division shall direct that a hearing be held within five days of
such conference in accordance with section 502 and, after such
hearing, shall, by an appropriate order, determine a location on
such tract of land as near to the original location as possible
where, in the judgment of the division, the well can be safely
drilled without unduly interfering with or endangering such
mine. Such new location as agreed upon by said parties or as
determined by the division shall be indicated on the plat on
file with the division and shall become a permanent record,
whereupon the division shall promptly issue a drilling permit
authorizing the well operator to drill at the location agreed
upon by the parties or as determined by the division.
(c) Within one hundred and twenty days after the
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 and file the
results of the survey with the division and forward, by
registered mail, a copy to the well operator.
(d) No well shall be drilled except in accordance with a
permit issued under this section. ((d) amended July 31, 1968,
P.L.881, No.265)
(e) ((e) repealed July 31, 1968, P.L.881, No.265)
Section 203. Coal Operator's Responsibility Upon Approaching
Wells Already Drilled or Located.--(a) Hereafter, at any time
prior to removing any coal or other underground material or
extending the workings in any coal mine within five hundred feet
of any oil or gas well of which the coal operator has knowledge,
or any approved well location of which the coal operator has
knowledge, the coal operator shall forward, by registered mail,
to or file with the well operator and the division a copy of
such relevant part of its maps and plans which it is presently
required by law to prepare and file with the Department of
Mines, showing the pillar which the coal operator proposes to
leave in place around each oil or gas well in the projected
workings. Following the filing of said maps and plans, the coal
operator may proceed with his mining operations in the manner
projected on said maps and plans but he shall not remove any
coal or cut any passageway within one hundred fifty feet of any
such well or approved well location until a permit has been
issued as hereinafter provided. If, in the opinion of the well
operator or the division, such plan indicates that the pillar
proposed to be left around any such well or approved well
location is insufficient in size, then the well operator
affected shall attempt to agree with the coal operator upon a
suitable pillar, subject to the approval of the division but,
failing to agree, such well operator may, within ten days from
receipt by them of such plan, file objections in accordance with
subsection (h) of section 501 to such proposed plan, indicating
the size of the pillar to be left with respect to each such
well. If no objections are filed within said ten day period or
if none are raised by the division, the division shall forthwith
issue a permit to the coal operator reciting the filing of said
maps or plans, that no objections have been made thereto and
that the pillar proposed to be left for each such well is
approved in the manner as projected.
(b) If any objections are filed by such well operator or are
raised by the division, the division shall direct that a
conference be held in accordance with section 502 within ten
days of the filing of such objections. At such conference the
coal operator and the person who has filed such objections shall
attempt to agree upon a proposed plan, showing the pillar to be
left around each well, which will satisfy such objections and be
approved by the division and, if such plan is agreed upon, the
division shall forthwith issue to the coal operator a permit
reciting the filing of said plan and that the pillar to be left
for each such well is approved as agreed upon. If no such plan
showing the pillar to be left with respect to each well can be
agreed upon at such conference, the division shall direct that a
hearing be held within five days after such conference in
accordance with section 502 and, after such hearing, shall, in
accordance with the standards set forth in this section and by
an appropriate order, determine the pillar to be left with
respect to each such well. In any proceeding under this section,
the division shall follow as nearly as is possible the original
plan filed by the coal operator. The division shall not require
the coal operator to leave a pillar in excess of one hundred
feet in radius, except that, if it is established that unusual
conditions exist requiring the leaving of a larger pillar, the
division may require a pillar up to but not exceeding one
hundred fifty feet in radius. The pillar to be left with respect
to each well as determined by the division shall be shown on the
maps or plans on file with the division as provided in
subsection (a) of this section and the division shall thereupon
issue to the coal operator a permit approving the pillar to be
left for each such well.
(c) Whenever a permit shall have been issued by the division
under this section approving or requiring a certain plan for the
leaving of a pillar of a specified size in the projected
workings and it shall thereafter be demonstrated by further
mining operations in the area that such a pillar is insufficient
in size, the well operator shall, subject to the approval of the
division, attempt to agree with the coal operator upon a
suitable pillar but, failing to agree, such well operator or
operators may file a petition with the division to review such
plan and, following the procedure hereinabove in this section
prescribed, the division may, by an appropriate order,
determine, subject to the limitations set forth in this section,
a different plan showing the pillar to be left thereafter with
respect to each such well and an amended permit shall thereupon
be issued approving the pillar to be left for each such well.
(d) Application may be made at any time to the division by
the coal operator to leave a pillar of less size than that shown
on the plan filed by him or approved or determined by the
division pursuant to the provisions of this section. If any such
application is filed, the division may, following the procedure
hereinbefore in this section prescribed, by an appropriate
order, determine a different plan showing a pillar of less size
with respect to any or all wells covered by such application and
an amended permit shall thereupon be issued approving the pillar
to be left with respect to each such well.
(e) No coal operator shall, without the written approval of
the division after notice and opportunity for hearing as
prescribed in this section, remove any coal or cut any
passageway so as to leave a pillar of less size with respect to
any oil or gas well than shown on a permit or amended permit
issued under this section.
(f) Nothing in this act shall be construed to require a well
operator to pay for any coal pillar required by the act to be
left around any well drilled prior to the effective date of this
act. Nothing contained in this act, which may require a coal
operator to leave a pillar of coal of a certain size around a
well drilled after the effective date of this act, shall in any
way affect (1) any right which the coal operator would have had
prior to the effective date of this act to obtain payment for
such coal nor (2) any duty or right which the well operator,
storage operator or land owner may have had prior to the
effective date of this act to pay for or not to pay for such
coal.
Section 204. Method of Casing Through Coal Seams.--(a) When
a well is drilled at a location where the coal has been removed
from only one seam, the hole shall be drilled at least thirty
feet below the coal seam and of a sufficient size to permit the
placing of a steel pipe liner not less than ten inches in
diameter and of at least one-quarter inch wall thickness. The
liner shall extend from a point not less than twenty-five feet
below the coal seam to a point not less than twenty-five feet
above it. The bottom end of the liner shall be fastened and
sealed to the casing and the casing shall be centrally located
within the liner, the casing and liner to be run and cemented
when the well is drilled at least thirty feet but not more than
fifty feet below the coal seam. The annular space between said
casing and liner shall be filled with bentonitic mud, cement or
such nonporous material as the division may approve pursuant to
an application filed under section 207. The casing shall be
raised at least ten feet off the bottom of the hole and cement
shall be placed in the well through the casing to a depth of at
least twenty feet. After the cement has been placed, the casing
shall be lowered to the bottom of the hole. In each case, where
cement is used to set such liners or casing strings, sufficient
time shall be allowed for the proper setting of the cement
before drilling is resumed. The casing string shall be equipped
with either an approved packer or casing shoe. A liner may be
run and cemented as a separate string of pipe: Provided,
however, That the liner is run and cemented when the well is
drilled at least thirty feet but not more than fifty feet below
the coal seam; or such alternate method of protecting the coal
seam may be employed as the division may approve pursuant to an
application filed under section 207. Such representative of the
division as the deputy secretary shall have designated and the
coal operator shall be given at least seventy-two hours notice
by the well operator when the work described above is to be
done. ((a) amended July 31, 1968, P.L.881, No.265)
(b) When a well is drilled at a location where the coal has
been removed from two or more seams, such liner shall extend not
less than twenty-five feet below the lowest seam penetrated and
shall extend to a point not less than twenty-five feet above the
highest such seam. In such multiple coal seams in a location
from which the coal has been removed, the liner may be run and
cemented as a separate string of pipe: Provided, however, That
the liner shall be run and cemented when the well is drilled at
least thirty feet and not more than fifty feet below the lowest
coal seam; or such alternate method of protecting the coal seams
may be employed as the division may approve pursuant to an
application filed under section 207. Such representative of the
division as the deputy secretary shall have designated and the
coal operator shall be given at least seventy-two hours notice
by the well operator when the casing is to be cemented through
the coal seam. ((b) amended July 31, 1968, P.L.881, No.265)
(c) A well penetrating one or more workable coal seams in a
location from which the coal has not been removed shall be
drilled to such depth and of such size as will permit the
placing of casing and packers in the hole at such points and in
such manner as will exclude all oil or gas from the coal seam,
except such as may be found naturally in the coal seam itself.
Each string of casing run in the hole shall be provided with a
steel casing, shoe collar, packer or other suitable device
firmly fixed on the bottom of such string of casing. The outer
string of casing run through any workable coal seam shall be of
at least one-quarter inch wall thickness and shall be seated at
least thirty feet below such coal seam or, if run through more
than one workable coal seam, then at least thirty feet below the
lowest of such coal seams, in at least twenty feet of cement,
bentonitic mud or nonporous material or by such alternate method
as the division may approve pursuant to an application filed
under section 207 and such casing string shall extend to the
surface. The space behind the largest diameter casing extending
through a workable coal seam or seams shall be filled to the
extent possible to the surface with cement, bentonitic mud or
such nonporous material or by such alternate method as the
division may approve pursuant to an application filed under
section 207. Such representative of the division as the deputy
secretary shall have designated and the coal operator or owner
shall be given at least seventy-two hours notice by the well
operator when the well is to be cased through such coal seam.
((c) amended July 31, 1968, P.L.881, No.265)
(d) In the event that gas is found beneath a workable coal
seam before the size of the hole has been reduced, a packer
shall be placed below such coal seam and above the gas horizon
and the gas by this means shall be diverted to the inside of the
adjacent string of casing through perforations made in such
casing and through it shall be passed to the surface without
contact with the coal seam. Should oil or gas be formed between
two workable seams of coal in a hole of the same diameter, from
seam to seam, two packers shall be placed with perforations in
the casing between them permitting the gas to pass to the
surface inside the adjacent casing or the gas may be sealed off
by cement or by some other method approved by the division
pursuant to an application filed under section 207. In either of
the cases here specified, the strings of casing shall extend
from their seats to the top of the well.
(e) In the event that a well becomes commercially productive
of natural gas or petroleum, all coal-protecting strings of
casing shall remain in place during the life of the well and
until such well is properly plugged. The annular space between
the various strings of casing adjacent to workable seams of coal
shall be kept open, except as provided in subsection (d) of this
section, and the top ends of all such strings shall be provided
with casing heads or such other suitable devices as will permit
the passage of gas into the air or into a pipeline and prevent
the obstructing or filling of such annular spaces with dirt or
debris.
Section 205. Notice of Intention to Plug a Well and Filing
of Plugging Certificate.--(a) Prior to the abandonment of any
well in an area underlain by a workable coal seam, the well
operator shall notify the coal operator and the owner of all
known workable coal seams to whom notices are required to be
given under section 201 and such representative of the division
as the deputy secretary shall have designated, of his intention
to plug and abandon any such well and submit a plat (on a form
to be furnished by the division) showing the location of the
well and fixing the time at which the work of plugging will be
commenced, which time shall be not less than seventy-two hours
after the time when such notice is received, in order that their
representatives may be present at the plugging of the well. Such
notice may be waived by the division and said coal operator or
owner and either of them may likewise waive his right to be
present but such waiver shall be in writing and a copy thereof
attached to notice of abandonment, filed with the division under
this section. Whether or not such representatives appear, the
well operator may, if he has fully complied with the
requirements of this section, proceed, at the time fixed, to
plug the well in the manner hereinafter described. When such
plugging has been completed, a certificate shall be prepared (on
a form to be furnished by the division) by two experienced and
qualified men who participated in the work setting forth the
time and manner in which the well was plugged. One copy of this
certificate shall be mailed to each coal operator or owner to
whom notice was given by registered mail and another copy shall
be mailed to the division.
(b) Prior to the abandonment of any well in an area not
underlain by a workable coal seam, the well operator shall
notify the division or such representative of the division as
the deputy secretary shall have designated of his intention to
plug and abandon any such well and submit a plat (on a form to
be furnished by the division) showing the location of the well
and fixing the time at which the work of plugging will be
commenced, which time shall not be less than seventy-two hours
nor more than thirty days after the time of mailing such notice,
in order that the division representative may be present at the
plugging of the well. Such notice or waiting period may be
verbally waived by the division or its representative: Provided,
however, That in non-coal areas where more than one well has
been drilled as part of the same development project, and these
wells are now to be plugged, it is required that the district
oil and gas representative be given seventy-two hours notice
prior to plugging the first well of such project subject to
waiver of notice described herein. In the plugging of subsequent
wells on this project it shall be the responsibility of the
division representative to learn when this work is to be
continued. Whether or not such division representative appears,
the well operator may, if he has fully complied with the
requirements of this section, proceed at the time fixed to plug
the well in the manner hereinafter described. When such plugging
has been completed a certificate shall be prepared, (on a form
to be furnished by the division) by two experienced and
qualified men who participated in the work, setting forth the
time and manner in which the well was plugged. A copy of this
certificate shall be mailed to the division.
(205 amended July 31, 1968, P.L.881, No.265)
Compiler's Note: Section 9(b) of Act 173 of 1978 provided
that section 205 is repealed insofar as it is
inconsistent with 1 Pa.C.S. § 2301(d) (relating to
equality of rights based on sex)..
Section 206. Plugging and Pulling Casing.--(a) Upon
abandoning or ceasing to operate any well in an area not
underlain by a workable coal seam, the owner or operator thereof
shall plug the same in the following manner.
The well shall be filled with sand pumpings, mud or other
equally nonporous material as the division may approve pursuant
to an application filed under section 207, from the bottom of
the well to a point twenty feet above the top of the lowest
stratum bearing or having borne oil, gas or water or a permanent
bridge shall be anchored thirty feet below the lowest stratum
bearing or having borne oil, gas or water and from such bridge
the well shall be filled with sand pumpings, mud or other
equally nonporous material as the division may approve pursuant
to an application filed under section 207, to a point twenty
feet above such stratum. At this point there shall be placed a
plug of cement or other equally nonporous material to a depth of
at least twenty feet which will completely seal the hole. A
sufficient lapse of time shall be allowed after the introduction
of the cement or other material for it to set properly before
proceeding. Between this sealing plug and a point twenty feet
above the next higher stratum bearing or having borne oil, gas
or water, the hole shall be either filled or bridged and filled
in the manner just described and at such point there shall be
placed another similar plug of cement or other equally nonporous
material to a depth of at least twenty feet which will
completely seal the hole. In like manner the hole shall be
filled and plugged or bridged, filled and plugged with reference
to each of the strata bearing or having borne oil, gas or water.
Whenever such strata are not widely separated and are free from
water, they may be grouped and treated as a single horizon and
the aforesaid filling and plugging may be performed as though
there were but one horizon. After plugging all strata bearing or
having borne oil, gas or water, as aforesaid, a bridge shall be
anchored approximately thirty feet below the water string of
casing and there shall be placed another similar plug of cement
or other equally nonporous material to a depth of at least ten
feet, which will completely seal the hole, after which said
casing may be drawn. A final plug shall be anchored
approximately ten feet below the bottom of the largest casing in
the well and, from this point to the surface, the well shall be
filled with sand pumpings, mud or other equally nonporous
material.
(b) In an area not underlain by a workable coal seam when it
is desired to pull the casing in any well, the well may be
produced through tubing placed on a packer and, after cement has
been poured on the packer to a depth of not less than twenty
feet and the annular space outside of the tubing and above the
cement plug is filled with cement, aquagel or other equally
nonporous material or such alternate method as the division may
approve pursuant to an application filed under section 207, up
to the bottom of the smallest water string of casing, then the
casing or casings may be pulled.
Upon the abandonment of such well, a plug or bridge shall be
placed in the tubing at a point near the depth at which the
packer was set and cement placed on top of said plug or bridge
to a depth of not less than thirty feet. After the tubing has
been parted above the plug and pulled, a bridge shall then be
set at a depth of not less than thirty feet from the surface and
the hole completely filled from that point to the surface with
sand pumpings, mud or other suitable material. With the approval
of the division pursuant to an application filed under section
207, some other equally effective method of pulling casing or
plugging may be used.
(c) Upon abandoning or ceasing to operate any well which
passes through a workable coal seam, the owner or operator of
said well shall plug the same in the following manner.
The well shall be filled with sand pumpings or such nonporous
material as the division may approve pursuant to an application
filed under section 207, to the top of the lowest stratum
bearing or having borne oil, gas or water and, at such point, a
suitable type of plug approved by the division shall be placed.
The space above the plug shall be filled for at least twenty
feet with cement or such nonporous material as the division may
approve, pursuant to an application filed under section 207. A
sufficient lapse of time shall be allowed after the introduction
of the cement or other material for it to set properly before
proceeding. All other formations encountered in the well which
bear or have borne oil, gas or water shall be plugged and filled
in the same manner. A final plug shall be anchored approximately
ten feet below the bottom of the smallest coal protecting string
of casing but not less than forty feet below the lowest workable
coal seam and the hole above filled with approximately twenty
feet of rock or gravel. After the inside casing has been drawn,
there shall be placed on top of the rock or gravel above the
final plug a vent pipe at least two inches in diameter with a
bell fitting or other suitable device to carry any free gas into
the vent pipe. The vent pipe shall extend above the surface at
least six feet and shall be fitted at the top with a tee and two
street ells, or similar devices, to prevent debris from entering
the vent pipe. The space surrounding the vent pipe and
immediately above the bell fitting or other device shall be
filled with a maximum of five feet of sand pumpings or fine
gravel and, then, the space from this point shall be filled with
cement to a point not less than twenty-five feet above the
highest workable coal seam. From this point to the surface, the
space around the vent pipe shall be filled with sand pumpings or
other equally nonporous material. In a storage reservoir subject
to section 304, the vent pipe shall be maintained in good repair
by the storage operator. If approved by the division pursuant to
an application filed under section 207, an alternative method of
plugging and venting may be employed.
((c) amended July 31, 1968, P.L.881, No.265)
(d) Upon abandoning or ceasing to operate any well pursuant
to this section where any of the strata bearing or having borne
oil, gas or water in a well has been shot, thereby creating
cavities which cannot be readily filled in the manner above
described, the well operator shall use either of the following
methods unless he has approval of the division pursuant to an
application filed under section 207 to use an alternative
method:
(1) Should the stratum which has been shot be the lowest one
in the well, there shall be placed at the nearest suitable point
but not less than twenty feet above the stratum, a plug of
cement or other equally nonporous material, to a depth of at
least twenty feet, which will completely seal the hole. A
sufficient lapse of time shall be allowed after the introduction
of the cement or other material for it to set properly before
proceeding. In the event, however, that the shooting has been
done above one or more strata bearing or having borne oil, gas
or water in the well, plugging in the manner specified shall be
done at the nearest suitable points to not less than twenty feet
below and not less than twenty feet above the stratum shot. From
a point immediately above the above mentioned plug, the well
shall be plugged in accordance with subsection (a), (b) or (c)
of this section, whichever is applicable.
(2) When such cavity shall be in the lowest stratum bearing
or having borne oil, gas or water in the well, a liner shall be
placed which shall extend from not less than twenty feet above
to a solid bottom in the stratum in which the shooting has been
done. In the event, however, that the shooting has been done
above one or more strata bearing or having borne oil, gas or
water in the well, the liner shall be so placed that it will
extend not less than twenty feet above nor less than twenty feet
below the stratum in which shooting has been done. Following the
placing of the liner in the manner here specified, it shall be
completely filled with sand pumpings, mud or other equally
nonporous material as the division may approve pursuant to an
application filed under section 207. From a point immediately
above the top of said liner, the well shall be plugged in
accordance with subsection (a), (b) or (c) of the section,
whichever is applicable.
Section 207. Alternative Method.--(a) Whenever provision is
made in this act by reference to this section for using an
alternative method or material in carrying out any obligation
imposed by the act, the person seeking the authority to use such
alternative method or material shall file an application with
the division, describing such proposed alternative method or
material in reasonable detail. Notice of filing of any such
application shall be given by registered mail to any coal
operator or operators affected. Any such coal operator may,
within ten days following such notice, file objections to such
proposed alternative method or material. If no objections are
filed within said ten day period or if none is raised by the
division, the division shall forthwith issue a permit approving
such proposed alternative method or material.
(b) If any such objections are filed by any coal operator or
are raised by the division, the division shall direct that a
conference be held in accordance with section 502 within ten
days following the filing of such objections. At such conference
the person seeking approval of the alternative method or
material and the person who has filed such objections shall
attempt to agree on such alternative method or material or any
modifications thereof and, if such agreement is reached and
approved by the division, the division shall forthwith issue a
permit approving the alternative method or material. If no such
agreement is reached and approved, the division shall direct
that a hearing be held in accordance with section 502 hereof:
Provided, however, That if the alternative method or material
involves a new development in technology or technique, the
division may before such a hearing is held, grant such affected
parties a period not to exceed ninety days to study and evaluate
said proposed alternative method or material. Following such
hearing, if the division shall find that such proposed
alternative method or material will furnish adequate protection
to the workable coal seams, the division shall by order approve
such alternative method or material, otherwise the division
shall deny the said application.
Section 208. Oil and Gas Division Cooperation with Sanitary
Water Board.--Upon request of the Sanitary Water Board the Oil
and Gas Division shall, and upon its own initiative it may,
submit to said board recommended regulations for the control and
prevention of pollution of surface and underground waters
resulting from drilling, operation, abandonment or plugging of
oil or gas wells. The Oil and Gas Division shall report to the
Sanitary Water Board any violation of The Clean Streams Law, or
of any regulation or order of said board issued pursuant
thereto, which the division shall find in its inspections and
investigations made under the authority conferred by section 501
(g) of this act.
(208 added July 31, 1968, P.L.881, No.265)
ARTICLE III
REGULATION OF UNDERGROUND GAS STORAGE POOLS IN
CERTAIN AREAS
Section 301. Filing of Maps and Data by Persons Operating or
Proposing to Operate Gas Storage Reservoirs.--(a) Any person
who, on the effective date of this act, is injecting gas into or
storing gas in a storage reservoir which underlies or is within
three thousand linear feet of an operating coal mine which is
operating in a coal seam that extends over the storage reservoir
or the reservoir protective area, shall, within sixty days
thereafter, file with the division a copy of a map and certain
data in the form and manner provided in this subsection.
Any person who, on the effective date of this act, is
injecting gas into or storing gas in a storage reservoir which
is not at such date under or within three thousand linear feet
but is less than ten thousand linear feet from an operating coal
mine which is operating in a coal seam that extends over the
storage reservoir or the reservoir protective area, shall file
such map and data within such time in excess of sixty days as
the division may fix.
Any person who, after the effective date of this act,
proposes to inject or store gas in a storage reservoir located
as above, shall file the required map and data with the division
not less than six months prior to the starting of actual
injection or storage.
The map provided for herein shall be prepared by a competent
engineer or geologist. It shall show the stratum or strata in
which the existing or proposed storage reservoir is or is to be
located, the geographic location of the outside boundaries of
the said storage reservoir and the reservoir protective area,
the location of all known oil or gas wells which have been
drilled into or through the storage stratum within the reservoir
or within three thousand linear feet thereof, indicating which
of these wells have been or are to be cleaned out and plugged or
reconditioned for storage and also indicating the proposed
location of all additional wells which are to be drilled within
the storage reservoir or within three thousand linear feet
thereof.
The following information, 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 three thousand 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 aforesaid maps and data, such person shall
file a detailed statement of what efforts he has made to
determine (1) that the wells shown on said map are accurately
located thereon and (2) that, to the best of his knowledge, they
are all the 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. This
statement shall also include information as to whether or not
the initial injection is for testing purposes, the maximum
pressure at which injection and storage of gas is contemplated
and a detailed explanation of the methods to be used or which,
theretofore, have been used in drilling, cleaning out,
reconditioning and plugging wells in the storage reservoir or
within the reservoir protective area. The map and data required
to be filed hereunder shall be amended or supplemented semi-
annually in case any material changes have occurred: Provided,
however, That the division may require a storage operator to
amend or supplement such map or data at more frequent intervals
if material changes have occurred justifying such earlier
filing.
(b) The requirements of this section shall not apply to the
operator of an underground gas storage reservoir so long as said
reservoir is located more than ten thousand linear feet from an
operating coal mine: Provided, however, That such storage
operator shall give notice to the division of the name of each
political subdivision and county in which said operator
maintains and operates a gas storage reservoir. In those
political subdivisions and counties where both gas storage
reservoirs and coal mines are being operated, the division may
request the storage operator to furnish maps showing the
geographical location and outside boundaries of such storage
reservoirs. The division shall keep a record of such information
and shall promptly notify both the coal operator and the storage
operator if it is found that the coal mine and storage reservoir
are within ten thousand linear feet of each other.
(c) At the time of the filing of the above maps and data and
the filing of amended or supplemented maps or data, the division
shall give written notice of said filing to all persons who may
be affected under the provisions of this act by the storage
reservoir described in such maps or data. Such notices shall
contain a description of the boundaries of such 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 division, such copy shall be furnished by
the storage operator.
(d) For all purposes of this act, 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 said storage stratum: Provided,
however, That the boundaries as thus defined shall be originally
fixed or subsequently changed where based upon the number and
nature of such wells, upon the geological and production
knowledge of the storage stratum, its character, permeability
and distribution and operating experience, it is determined in a
conference or hearing under section 502 that modification should
be made.
Section 302. Filing of Maps and Data by Persons Operating
Coal Mines.--(a) Any person owning or operating a coal mine
shall, within thirty days from the effective date of this act,
file with the division a map prepared by a competent engineer,
showing the outside coal boundaries of the said operating coal
mine, the existing workings and exhausted areas and the
relationship of said boundaries to identifiable surface
properties and landmarks: Provided, however, That any operating
coal mine, which has been penetrated by a well since the
effective date of this act, shall furnish a mine map to the
division each year indicating the excavations for the preceding
year and the projections for the ensuing year. Any person who is
storing or contemplating the storage of gas in the vicinity of
such operating coal mines shall, upon written request, be
furnished a copy of the aforesaid map by the coal operator and
such person and the division shall, thereafter, be informed of
any boundary changes at the time such changes occur. The
division shall keep a record of such information and shall
promptly notify both the coal operator and the storage operator
if it is found that the coal mine and the storage reservoir are
within ten thousand linear feet of each other. ((a) amended July
31, 1968, P.L.881, No.265)
(b) Any person owning or operating any coal mine which, on
the date of the enactment of this act, is or which thereafter
comes within ten thousand linear feet of a storage reservoir,
and where the coal seam being operated extends over the storage
reservoir or the reservoir protective area, shall, within forty-
five days after he has notice from the division of such fact,
file with the division and furnish to the person operating such
storage reservoir a map in the form hereinabove provided and
showing, in addition, the existing and projected excavations and
workings of such operating coal mine for the ensuing eighteen
month period and, also, the location of any oil or gas wells of
which said coal operator has knowledge. Such person owning or
operating said coal mine shall, each six months thereafter, file
with the division and furnish to the person operating such
storage reservoir a revised map showing any additional
excavations and workings, together with the projected
excavations and workings for the then ensuing eighteen month
period, which may be within ten thousand linear feet of said
storage reservoir: Provided, however, That the division may
require a coal operator to file such revised map at more
frequent intervals if material changes have occurred justifying
such earlier filing. Such person owning or operating said coal
mine shall also file with the division and furnish the person
operating said reservoir prompt notice of any wells which have
been cut into, together with all available pertinent
information.
Section 303. Notice by Persons Operating Coal Mines.--(a)
Any person owning or operating a coal mine on the effective date
of this act and having knowledge that it overlies or is within
two thousand linear feet of a gas storage reservoir shall,
within thirty days, notify the division and the storage operator
of such fact.
(b) When any person owning or operating a coal mine
hereafter expects that within the ensuing nine months period
such coal mine will be extended to a point which will be within
two thousand linear feet of any storage reservoir, he shall
notify the division and the storage operator in writing of such
fact.
(c) Any person hereafter intending to establish or
reestablish an operating coal mine which, when established or
reestablished, will be over a storage reservoir or within two
thousand linear feet of a storage reservoir or which, upon being
established or reestablished, may, within nine months
thereafter, be expected to be within two thousand linear feet of
a storage reservoir shall notify the division and the storage
operator, in writing, before doing so and such notice shall
include the date on which it is intended the operating coal mine
will be established or reestablished.
Any person who serves such notice of an intention to
establish or reestablish an operating coal mine under this
subsection, without intending in good faith to establish or
reestablish such mine, shall be liable for continuing damages to
any storage operator injured by the serving of such improper
notice and shall be guilty of a misdemeanor under this article
and subject to the same penalties as set forth in section 504.
Section 304. Obligations to be Performed by Persons
Operating Storage Reservoirs.--(a) Any person who, on the
effective date of this act, is operating a storage reservoir
which underlies or is within two thousand linear feet of an
operating coal mine which is operating in a coal seam that
extends over the storage reservoir or the reservoir protective
area, 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 stratum in
that acreage which is within the outside coal boundaries of such
operating coal mine and which overlies the storage reservoir or
the reservoir protective area.
(2) Plug or recondition in the manner provided by subsection
(c) of section 206 and subsection (e) of this section, all known
wells (except to the extent otherwise provided in subsections
(e), (f), (g) and (h) of this section) drilled into or through
the storage stratum and which are located within that portion of
the acreage of the operating coal mine overlying the storage
reservoir or the reservoir protective area: Provided, however,
That where objection is raised as to the use of any well as a
storage well and after a conference or hearing in accordance
with section 502, it is determined, taking into account all the
circumstances and conditions that such well should not be used
as a storage well, such well shall be plugged: Provided,
however, That, if in the opinion of the storage operator the
well to which such objection has been raised may at some future
time be used as a storage well, the storage operator may
recondition and inactivate such well instead of plugging it, if
such alternative is approved by the division after taking into
account all of the circumstances and conditions.
The requirements of clause (2) of this subsection 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 said clause (2) are
reconditioned or plugged as provided in subsections (e) or (f)
of this section and in subsection (c) of section 206 so that by
the time the coal mine has reached a point within two thousand
linear feet of any such wells, they will have been reconditioned
or plugged so as to meet the requirements of said subsections
(e) or (f) and of subsection (c) of section 206.
(b) Any person operating a storage reservoir referred to in
subsection (a) of this section shall, within sixty days after
the effective date of this act, file with the division 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
subsection (a) of section 301 have been prepared and filed in
accordance with section 301.
(2) A detailed explanation of what the storage operator has
done to comply with the requirements of clauses (1) and (2) of
subsection (a) of this section and the results thereof.
(3) Such additional efforts, if any, as the storage operator
is making and intends to make to locate all oil and gas wells.
(4) Any additional wells that are to be plugged or
reconditioned to meet the requirements of clause (2) of
subsection (a) of this section.
If such statement is not filed by the storage reservoir
operator within the time specified herein, the division shall
summarily order such operator to file such statement.
(c) Within one hundred twenty days after the receipt of any
such statement, the division may and it shall, if so requested
by either the storage operator or the coal operator affected,
direct that a conference be held in accordance with section 502
to determine whether the information as filed indicates that the
requirements of section 301 and of subsection (a) of this
section have been fully complied with. At such conference, if
any person shall be of the opinion that such requirements have
not been fully complied with, the parties shall attempt to agree
on what additional things are to be done and the time within
which they are to be completed, subject to the approval of the
division to meet the said requirements.
If such agreement cannot be reached, the division shall
direct that a hearing be held in accordance with section 502. At
such hearing the division shall determine whether the
requirements of section 301 and of subsection (a) of this
section have been met and shall issue an order setting forth
such determination. If the division shall determine that any of
the said requirements have not been met, the order shall specify
in detail both the extent to which such requirements have not
been met and the things which the storage operator must do to
meet such requirements. The order shall grant to the storage
operator such time as is reasonably necessary to complete each
of the things which he is directed to do. If, in carrying out
said order, the storage operator encounters conditions which
were not known to exist at the time of the hearing and which
materially affect the validity of said order or the ability of
the storage operator to comply with the order, the storage
operator may apply for a rehearing or modification of said
order.
(d) Whenever in compliance with subsection (a) of this
section, a storage operator after the filing of the statement
provided for in subsection (b) of this section, plugs or
reconditions a well, he shall so notify the division and the
coal operator affected, in writing, setting forth such facts as
will indicate the manner in which the plugging or reconditioning
was done. Upon receipt thereof, the coal operator affected or
the division may request a conference or hearing in accordance
with section 502.
(e) In order to meet the requirements of subsection (a) of
this section, wells which are to be plugged shall be plugged in
the manner specified in subsection (c) of section 206. When a
well, located within the storage reservoir or the reservoir
protective area, has been plugged prior to the enactment of this
act and on the basis of the data information and other evidence
submitted to the division, it is determined that (1) such
plugging was done in the manner required in subsection (c) of
section 206, or in a manner approved as an alternate method in
accordance with section 207 and (2) said plugging is still
sufficiently effective to meet the requirements of this act, the
obligations imposed by subsection (a) of this section as to
plugging said well shall be considered fully satisfied.
(f) In order to meet the requirements of subsection (a) of
this section, 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 same procedure as is applicable to drilling a
new well as provided for in this act, (1) the producing casing,
(2) the largest diameter casing passing through the lowest
workable coal seam unless such casing extends at least twenty-
five feet below the bottom of such coal seam and is determined
to be in good physical condition: Provided, however, That the
storage operator may, instead of replacing the largest diameter
casing, replace the next largest casing string if such casing
string extends at least twenty-five feet below the lowest
workable coal seam and (3) such other casing strings which are
determined not to be in good physical condition. 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 aquagel or such equally nonporous
material as is approved by the division pursuant to section 207.
At least fifteen days prior to the time when a well is to be
reconditioned, the storage operator shall give notice thereof to
the coal operator or owner and to the division, setting forth in
such notice the manner in which it is planned to recondition
such well and any pertinent data known to the storage operator
which will indicate the then existing condition of such well. In
addition, the storage operator shall give the coal operator or
owner and such representative of the division as the deputy
secretary shall have designated at least seventy-two hours
notice of the time when such reconditioning is to begin. The
coal operator or owner shall have the right to file, within ten
days after the receipt of the first notice required herein,
objections to the plan of reconditioning as submitted by the
storage operator. If no such objections are filed or if none is
raised by the division, within such ten day period, the storage
operator may proceed with the reconditioning in accordance with
the plan as submitted. If any such objections are filed or are
made by the division, the division shall fix a time and place
for a conference in accordance with section 502, at which
conference the storage operator and the person who has filed
such objections shall endeavor to agree upon a plan of
reconditioning which meets the requirements herein and which
will satisfy such objections. If no plan is approved at such
conference, the division shall direct that a hearing be held in
accordance with section 502 and after such hearing shall, by an
appropriate order, determine whether the plan as submitted meets
the requirements set forth herein or what changes, if any,
should be made to meet such requirements. If, in reconditioning
a well in accordance with said plan, physical conditions are
encountered which justify or necessitate a change in said plan,
the storage operator or the coal operator may request that the
plan be changed. If said parties cannot agree upon such change,
the division shall arrange for a conference or hearing in
accordance with section 502 to determine the matter in the same
manner as set forth herein in connection with original
objections to said plan. Application may be made to the division
in the manner prescribed in section 207 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 prior to the enactment of this act, or
was so drilled and equipped previously and on the basis of the
data, information and other evidence submitted to the division,
it is determined that:
(1) Such reconditioning or previous drilling and equipping
was done in the manner required in this subsection or in a
manner approved as an alternative method in accordance with
section 207.
(2) Such reconditioning or previous drilling and equipping
is still sufficiently effective to meet the requirements of this
act, the obligations imposed by subsection (a) as to
reconditioning said well shall be considered fully satisfied.
Where a well requires emergency repairs, this subsection shall
not be construed to require the storage operator to give the
notices specified herein before making such repairs.
(g) When 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) of this section shall not
begin until such well ceases to be a producing well.
(h) When a well within a storage reservoir or the reservoir
protective area penetrates the storage stratum but does not
penetrate the coal seam being mined by an operating coal mine,
the division may, upon application of the operator of such
storage reservoir, exempt such well from the requirements of
this section. Either party affected may request a conference and
hearing with respect to the exemption of any such well in
accordance with section 502.
(i) In fulfilling the requirements of clause (2) of
subsection (a) of this section with respect to a well within the
reservoir protective area, the storage operator shall not be
required to plug or recondition such well until he has received
from the coal operator written notice that the mine workings
will, within the period stated in such notice, be within two
thousand linear feet of such well. Upon the receipt of such
notice, the storage operator shall use due diligence to complete
the plugging or reconditioning of such well in accordance with
the requirements of this section and of subsection (c) of
section 206. If the said mine workings do not, within a period
of three years after said well has been plugged, come within two
thousand linear feet of said well, the coal operator shall
reimburse the storage operator for the cost of said plugging,
provided such well is still within the reservoir protective area
as of that time.
(j) When retreat mining approaches a point where within
ninety days it is expected that such retreat work will be at the
location of the pillar surrounding an active storage well, the
coal operator shall give written notice of such approach to the
storage operator and, by agreement, said parties shall determine
whether it is necessary or advisable to inactivate effectively
said well temporarily. The well shall not be reactivated until a
reasonable period has elapsed, such reasonable period to be
determined by said parties. In the event that said parties
cannot agree upon either of the foregoing matters, such question
shall be submitted to the division for decision in accordance
with section 502. The number of wells required to be temporarily
inactivated during the retreat period shall not be such as to
materially affect the efficient operation of such storage pool.
This provision shall not preclude the temporary inactivation of
a particular well where the practical effect of inactivating
such well is to render the pool temporarily inoperative.
(k) The requirements of subsections (a), (l) and (m) of this
section shall not apply to the injection of gas into any stratum
when the sole purpose of such injection (such purpose being
herein referred to as testing) is to determine whether the said
stratum is suitable for storage purposes: Provided, however,
That such testing shall be conducted only in compliance with the
following requirements:
(1) The person testing or proposing to test shall comply
with all of the provisions and requirements of section 301 and
shall verify the statement required to be filed thereby.
(2) If any part of the proposed storage reservoir is under
or within two thousand 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
division and to the 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 division in accordance with subsection (h)
of section 501. If any such objections are filed by the coal
operator, or if the division shall have any objections, the
division shall fix a time and place for a conference in
accordance with section 502, not more than ten days from the
date of the notice to the storage operator, at which conference
the storage operator and the person who has filed such
objections shall attempt to agree, subject to the approval of
the division, on the questions involved. If such agreement
cannot be reached at such conference, the division shall direct
that a hearing be held in accordance with section 502. At such
hearing, the division shall determine and set forth in an
appropriate order, the conditions and requirements which it
shall deem necessary or advisable in order to prevent gas from
such storage reservoir from entering any operating coal mine.
The storage operator shall comply with such conditions and
requirements throughout the period of the testing operations. In
determining such conditions and requirements, the division shall
take into account the extent to which the matters referred to in
subsection (a) of this section have been performed. If, in
carrying out said order, either the storage operator or the coal
operator encounters or discovers conditions which were not known
to exist at the time of the hearing and which materially affect
said order or the ability of the storage operator to comply with
the order, either operator may apply for a rehearing or
modification of said order.
(4) Where, at any time, a proposed storage reservoir being
tested comes under or within two thousand linear feet of an
operating coal mine, either because of the extension of the
storage reservoir being tested or because of the extension or
establishment or reestablishment of the operating coal mine,
then and at the time of any such event, the requirements of this
subsection shall become applicable to such testing:
(l) Any person who, after the effective date of this act,
proposes to establish, a storage reservoir under or within two
thousand linear feet of an operating coal mine which is
operating in a coal seam that extends over the storage reservoir
or the reservoir protective area shall, prior to establishing
such reservoir in addition to complying with the requirements of
section 301 and subsection (a) of this section, file the
verified statement required by subsection (b) of this section
and fully comply with such order or orders, if any, as the
division may issue in the manner provided for under subsection
(b) or (c) of this section before beginning the operation of
such storage reservoir. After the person proposing to operate
such storage reservoir shall have complied with such
requirements and shall have thereafter begun to operate such
reservoir, he shall continue to be subject to all of the
provisions of this article.
(m) When a gas storage reservoir (1) is in operation on
effective date of this act and at any time thereafter, it is
under or within two thousand linear feet of an operating coal
mine or (2) when a gas storage reservoir is put in operation
after the effective date of this act and at any time after such
storage operations begin, it is under or within two thousand
linear feet of an operating coal mine, then and in either such
event, the storage operator shall comply with all of the
provisions of this section, except that the time for filing the
verified statement under subsection (b) shall be sixty days
after the date stated in the notice filed by the coal operator
under subsections (b) or (c) of section 303 as to when the
operating coal mine will be at a point within two thousand
linear feet of such reservoir: Provided, however, That if the
extending of the projected workings or the proposed
establishment or reestablishment of the operating coal mine is
delayed after the giving of the notice provided in subsection
(b) and (c) of section 303, the coal operator shall give notice
of such delay to the division and the division shall, upon the
request of the storage operator, extend the time for filing such
statement by the additional time which will be required to
extend or establish or reestablish such operating coal mine to a
point within two thousand linear feet of such reservoir. Such
verified statement shall also indicate that the map referred to
in subsection (a) of section 301 has been currently amended as
of the time of the filing of such statement. The person
operating any such storage reservoir shall continue to be
subject to all of the provisions of this article.
(n) If, in any proceeding under this act, the division shall
determine that any operator of a storage reservoir has failed to
carry out any lawful order of the division issued under this
act, the division shall have authority to require such storage
operator to suspend the operation of such reservoir and to
withdraw the gas therefrom until such violation is remedied. In
such an event, the gas shall be withdrawn under the following
conditions. The storage operator shall remove the maximum amount
of gas which is required by the division to be removed from the
storage reservoir that can be withdrawn in accordance with
recognized engineering and operating procedures and shall
proceed with due diligence in so far as existing facilities used
to remove gas from the reservoir will permit.
(o) In addition to initial compliance with the other
provisions of this act and any lawful orders issued thereunder,
it shall be the duty, at all times, of the person owning or
operating any storage reservoir which is subject to the
provisions of this article, to keep all wells drilled into or
through the storage stratum in such condition and to operate the
same in such manner as to prevent the escape of gas into any
coal mine therefrom and to operate and maintain such storage
reservoir and its facilities in such manner and at such
pressures as will prevent gas from escaping from such reservoir
or its facilities into any coal mine: Provided, That this duty
shall not be construed to include the inability to prevent the
escape of gas where such escape results from an act of God or an
act of any person not under the control of the storage operator
other than in connection with any well which the storage
operator has failed to locate and to make known to the division:
Provided, however, That, if any escape of gas into a coal mine
does result from an act of God or an act of any person not under
the control of the storage operator, the storage operator shall
be under the duty of taking such action thereafter as is
reasonably necessary to prevent further escape of gas into the
coal mine.
Section 305. Inspection of Facilities and Records, Reliance
on Maps, Burden of Proof.--(a) In determining whether a
particular coal mine or operating coal mine is or will be within
any distance material under this act from any storage reservoir,
the owner or operator of such coal mine and the storage operator
may rely on the most recent map of the storage reservoir or coal
mine filed by the other with the division.
(b) In any proceeding under this act where the accuracy of
any map or data filed by any person pursuant to the requirements
of this act is in issue, the person filing the same shall, at
the request of any party to such proceeding, be required to
disclose the information and method used in compiling such map
and data and such information as is available to such person
that might affect the current validity of such map or data. If
any material question is raised in such proceeding as to the
accuracy of such map or data with respect to any particular
matter or matters contained therein, the person filing such map
or data shall then have the burden of proving the accuracy of
the map or data with respect to such matter or matters.
(c) The person operating any storage reservoir affected by
the terms of this act shall, at all reasonable times, be
permitted to inspect the applicable records and facilities of
any coal mine overlying such storage reservoir or the reservoir
protective area and the person operating any such coal mine
affected by the terms of this act shall, similarly at all
reasonable times, be permitted to inspect the applicable records
and facilities of any such storage reservoir underlying any such
coal mine. In the event that either such storage operator or
coal operator shall refuse to permit any such inspection of
records or facilities, the division shall, on its own motion or
on application of the party seeking the inspection after
reasonable written notice and a hearing thereon if requested by
either of the parties affected, make an order providing for such
inspection.
Section 306. Exemptions.--(a) The provisions of this
article 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 provisions of the act of June nine,
one thousand nine hundred eleven (Pamphlet Laws 756), as
amended, do not apply as provided in section three of Article
XXVIII thereof and mines to which the provisions of the act of
June two, one thousand eight hundred ninety-one (Pamphlet Laws
176), as amended, do not apply as provided in section one of
Article I thereof.
(b) Injection of gas for storage purposes in any workable
coal seam whether or not such seam is being or has been mined,
shall be prohibited. Nothing in this article shall be construed
to prohibit the original extraction of natural gas, crude oil or
coal.
ARTICLE IV
EMINENT DOMAIN
Section 401. Appropriation of Interests in Real Property.--
(a) Any and all corporations empowered to transport, sell or
store, natural or manufactured gas, within this Commonwealth,
shall have the right, subject to the following limitations, to
appropriate interests in real property for the injection,
storage and removal from storage of natural or manufactured gas
in any stratum which is or previously has been commercially
productive of natural gas: Provided, That the right of eminent
domain shall not be exercised to acquire for the purpose of gas
storage, (1) any interest in any geological stratum within the
area of the proposed storage reservoir, unless the original
recoverable oil or gas reserves therein have been depleted or
exhausted by at least eighty per centum and unless and until the
condemnor shall have acquired the right by grant, lease or other
agreement to store gas in the said geological stratum underlying
at least seventy-five per centum of the area of the proposed
storage reservoir, or (2) any interest in any geological stratum
within the area of the proposed storage reservoir owned directly
or indirectly by a gas company or by a person engaged in the
local distribution of natural gas which interest is being used
by such gas company or by such person for present storage of gas
in the performance of service to customers within its service
area.
(b) This act shall be construed to authorize appropriation
of the stratum to be used for storage any gas reserve remaining
therein and any active or abandoned well or wells drilled into
said stratum and further to authorize the appropriation of the
right to enter upon and use the surface of lands for the purpose
of locating, reconditioning, maintaining, plugging or replugging
any active or abandoned wells or operating any wells drilled
into or through said storage stratum within the storage
reservoir boundary or within the reservoir protective area. This
act shall not be construed, however, to preclude the owner of
nonstorage strata from the drilling of wells for the purpose of
producing oil or gas from any stratum above or below the storage
stratum appropriated by such corporation, but the corporation
appropriating or holding storage rights shall have access to and
the right to inspect and examine any such drilling or completed
well and the drilling logs and all other records relating to the
drilling, equipping or operating of such well for the purpose of
determining whether the storage stratum is being adequately
protected to prevent the escape of gas stored therein. This act
shall not authorize the appropriation of any coal or coal
measure whether or not being mined or any interest therein.
(c) Any person drilling, operating, using or plugging any
well through any stratum which has been appropriated under this
act shall so drill, case, equip, operate or plug the same as to
prevent any avoidable escape of gas that may be stored in the
storage stratum. Upon failure, neglect or refusal of such person
or persons to comply with this section, the court of common
pleas of the county in which the tract of land is situated shall
have the power to compel compliance by injunction or to grant
other appropriate relief upon action brought by the corporation
storing gas in the storage stratum.
(d) Prior to any appropriation, the corporation shall
attempt to agree with the owner or owners of the interests in
real property involved as to the damage properly payable for the
property rights or interests to be appropriated in or on his,
her or their property, if such owner or owners can be found and
are sui juris. Failing to agree, the corporation shall tender to
the property owner or owners a surety bond to secure him, her or
them in the payment of damages. If the owner or owners refuse to
accept said bond or cannot be found or are not sui juris, said
bond, after reasonable notice to the property owner or owners by
advertisement or otherwise, shall then 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 and its being
filed in said court, the right of the corporation to enter upon
the enjoyment of the powers given it by this act to store gas
and to enter on the property for the purpose of locating,
reconditioning, maintaining, plugging or replugging any active
or abandoned wells or operating any wells drilled into or
through said storage stratum within the storage reservoir
boundary or within the reservoir protective area shall be
complete.
(e) Upon petition of either the property owner or owners or
the corporation exercising the right of eminent domain
hereunder, said court shall appoint three disinterested
freeholders of the county to serve as viewers to assess the
damages proper to be paid to the property owner or owners for
the rights appropriated by said corporation and shall fix a time
for their meeting of which notice shall be given to both
parties. After the viewers have filed their report with the
court, said court shall fix reasonable compensation for the
service of said viewers.
(f) Either party may appeal from the report of the viewers
within twenty days after the filing thereof with the court of
common pleas and have a jury trial and the right of appeal as in
ordinary cases.
(g) Nothing contained in this section shall relieve the
person operating a storage reservoir from the requirements of
this act.
ARTICLE V
MISCELLANEOUS PROVISIONS
Section 501. Oil and Gas Division.--(a) There is hereby
created a division of the Department of Mines to be known as the
Oil and Gas Division, which division shall have power and
authority to execute and carry out the provisions of this act in
the manner provided herein. The division shall be under the
immediate supervision of a Deputy Secretary of Mines for Oil and
Gas, who shall be appointed by the Secretary of Mines, with the
approval of the Governor, and who shall be under the supervision
and direction of the Secretary of Mines. The deputy secretary,
at the time of his appointment, shall be a person informed on
the subjects of coal mining and oil and gas production and
storage and shall receive such compensation as may be fixed by
the Secretary of the Department of Mines, with the approval of
the Governor.
(b) The deputy secretary shall serve, on behalf of the
Secretary of Mines, as hearing officer at all hearings or
conferences conducted by the division or, in his absence or
inability to act, such other qualified representative of the
division as may be designated, in writing, by the secretary or
said deputy secretary.
(c) The Secretary of Mines shall appoint and fix the
compensation of such additional experts, engineers, geologists,
inspectors, investigators, clerks and other employes as may be
necessary for the proper conduct of the work of the division:
Provided, That the Secretary of Mines shall appoint or retain on
a consulting basis at least one competent engineer or geologist
with a degree in engineering or geology from a recognized
institution of learning and at least one competent mining
engineer with a degree in engineering from a recognized
institution of learning and each having at least four years
practical experience in their respective fields. At all hearings
under subsection (c) of section 304, there shall be present in
addition to the person conducting said hearing at least one of
the aforesaid gas engineers or geologists and at least one of
the said coal mining engineers who shall consult with the person
conducting said hearing and make recommendations to him
respecting the matter under consideration.
(d) Except as otherwise specifically provided in this act,
the division and its employes shall be subject to all the
provisions of "The Administrative Code of 1929," approved April
nine, one thousand nine hundred twenty-nine (Pamphlet Laws 177),
its amendments and supplements, which apply generally to
administrative departments and offices.
(e) The division may review the maps and data filed under
sections 301 and 302 hereof, for the purpose of determining the
accuracy thereof. Where any material question is raised by any
interested storage operator or coal operator or owner as to the
accuracy of any such map or data, the division shall hold
hearings thereon and shall, by an appropriate order, require the
person filing such map or data to correct the same, if they are
found to be erroneous.
(f) It shall be the duty of the division to receive and keep
in a safe place for public inspection any map, data, report,
well log, notice or other writing required to be filed with it
pursuant to the provisions of this act. The division shall keep
such indices of all such information as will enable any person
using the same to readily locate such information either by the
identity of the person who filed the same, or by the person or
persons affected by such filing, or by the geographic location
of the subject matter by political subdivision. The division
shall also keep a docket for public inspection of all
proceedings in which shall be entered the dates of any notices,
the names of all persons notified and their address, the dates
of hearings, conferences and all orders, decrees, decisions,
determinations, rulings or other actions issued or taken by the
division and such docket shall constitute the record of each and
every proceeding before the division.
(g) The division shall have authority to make any
inspections and investigations of records and facilities, which
it shall deem necessary or desirable to perform its functions
under this act.
(h) Where, in any section of this act, provision is made for
the filing of objections, such objections shall be filed, in
writing, with the division by the person entitled to file the
same or by the division and shall state as definitely as is
reasonably possible the reasons for such objections. The person
filing such objections shall send a copy thereof, by registered
mail, to the person or persons affected thereby.
Section 502. Conferences, Hearings and Appeals.--(a) The
division or any person having a direct interest in the subject
matter of this act may, at any time, request that a conference
be held for the purpose of discussing and endeavoring to resolve
by mutual agreement any matter arising under the provisions of
this act. Prompt notice of any such conference shall be given by
the division to all such interested parties. At such conference
a representative of the division shall be in attendance and the
division may make such recommendations as it deems appropriate.
Any agreement reached at such conference shall be consistent
with the requirements of this act and, if approved by such
representative of the division, it shall be reduced to writing
and shall be effective, unless reviewed and rejected by the
division within ten days after the close of the conference. The
record of any such agreement approved by the division shall be
kept on file by the division with copies furnished to the
parties. Such a conference shall be held in all cases prior to
conducting any hearing under this section.
(b) All hearings before the division shall be public and
shall be conducted in accordance with such regulations and such
provisions as to reasonable notice as the division may
prescribe. Consistent with the requirements for reasonable
notice, all hearings under this act shall be held by the
division promptly. All testimony taken at such hearings shall be
under oath and shall be recorded by a reporter appointed by the
division and the parties may appear and be heard in person or by
attorney. The division may present at such hearing any evidence
which is material to the matter under consideration and which
has come to the division's attention in any investigation or
inspection made pursuant to provisions of this section.
(c) After the conclusion of hearings, the division shall
make and file its findings and order with its opinion, if any. A
copy of such order shall be served, by registered mail, upon the
person against whom it runs or his attorney and notice thereof
shall be given to the other parties to the proceedings or their
attorney.
(d) The division may, at any time after notice and after
opportunity to be heard as provided in this section, rescind or
amend any approved agreement or order made by it. Any order
rescinding or amending a prior agreement or order shall, when
served upon the person affected and after notice thereof is
given to the other parties to the proceedings, have the same
effect as is herein provided for original orders but no such
order shall affect the legality or validity of any acts done by
such person in accordance with the prior agreement or order
before receipt by such person of the notice of such change.
(e) The division shall have the power in any part of the
Commonwealth to subpoena witnesses, to administer oaths, to
examine witnesses or to take such testimony or compel the
production of such books, records, maps, plats, papers,
documents and other writings as it may deem necessary or proper
in and pertinent to any proceedings, investigation or hearing
held or had by it. In case of refusal to obey any subpoena
served upon any person, any court shall, on application of the
deputy secretary or his authorized representative, have power to
enforce such subpoenas in contempt proceedings. The fees for
serving a subpoena shall be the same as those paid sheriffs for
similar services. ((e) repealed in part Apr. 28, 1978, P.L.202,
No.53)
(f) The division or any party to proceedings before the
division may cause the deposition of witnesses, residing within
or without the Commonwealth to be taken in the manner prescribed
by law for taking depositions in civil actions.
(g) Witnesses who are summoned before the division shall be
paid the same fees as are paid to witnesses in the courts of
record of general jurisdiction. Witnesses whose depositions are
taken pursuant to the provisions of this act and the officers
taking the same shall be entitled to the same fees as are paid
for like services in such courts.
(h) No person shall be excused from testifying or from
producing any book, document, map, plat or paper in any
investigation or inquiry by or hearing before the division when
ordered to do so upon the ground that the testimony or evidence,
book, documents, map, plat, paper or other writings required may
tend to incriminate him or subject him to penalty or forfeiture,
but no person shall be prosecuted, punished or subjected to any
forfeiture or penalty for or on account of any act, transaction,
matter or thing concerning which he shall have been compelled,
under objection, to testify or produce documentary evidence:
Provided, That no person so testifying shall be exempt from
prosecution or punishment for any perjury committed by him in
his testimony.
(i) ((i) repealed Apr. 28, 1978, P.L.202, No.53)
Act text part 2
(j) ((j) repealed Apr. 28, 1978, P.L.202, No.53)
(k) ((k) repealed Apr. 28, 1978, P.L.202, No.53)
(l) ((l) repealed June 3, 1971, P.L.118, No.6 and Apr. 28,
1978, P.L.202, No.53)
(m) ((m) repealed Apr. 28, 1978, P.L.202, No.53)
(n) Whenever a coal or gas operator is to be given notice by
the division of any proceeding to be held under this section,
the division shall also send simultaneously a copy of such
notice to the collective bargaining representative of the
employes of the coal operator.
Compiler's Note: Section 508(a) of Act 223 of 1970 provided
that the jurisdiction of the courts named in section 502
is transferred to and vested in the Commonwealth Court
and provided that section 502 is repealed insofar as it
relates to the Court of Common Pleas of Dauphin County.
Compiler's Note: Section 14(a) of Act 185 of 1969 provided
that the jurisdiction of the courts named in section 502
is vested in the Commonwealth Court and provided that
section 502 is repealed insofar as it relates to the
Court of Common Pleas of Dauphin County.
Section 503. Enforcement.--(a) The division or any person
having a direct interest in the subject matter of this act may
complain, in writing, setting forth that any person is violating
or is about to violate any provisions of this act or has done or
is about to do any act, matter or thing therein prohibited or
declared to be unlawful or has failed, omitted, neglected, or
refuse or is about to fail, omit, neglect or refuse to perform
any duty enjoined upon him by this act.
Upon the filing of a complaint against any person, the
division shall cause a copy thereof to be served upon such
person, by registered mail, accompanied by a notice from the
division calling upon such person to satisfy the complaint or to
answer the same, in writing, within such reasonable time as may
be specified by the division in such notice.
If any person complained against, within the time specified
by the division, shall satisfy the complaint, the division by
order shall dismiss the complaint. If such person shall not
satisfy the complaint within the time specified and it shall
appear to the division from a consideration of the complaint and
answer or otherwise that reasonable ground exists for
investigating such complaint, it shall be the duty of the
division to direct that a hearing be held in accordance with
section 502. Following such hearing, the division shall, if it
finds that the matter alleged in the complaint is not in
violation of this act, dismiss the complaint but if the division
should find that the complaint is justified it shall by
appropriate order compel compliance with the act.
(b) Whenever the division shall be of the opinion that any
person is violating or is about to violate any provisions of
this act or has done or is about to do any act, matter or thing
therein prohibited or declared to be unlawful or has failed,
omitted, neglected or refused or is about to fail, omit, neglect
or refuse to perform any duty, enjoined upon him by this act or
has failed, omitted, neglected or refused or is about to fail,
omit, neglect or refuse to obey any lawful requirement or order
made by the division or any final judgment, order or decree made
by any court pursuant to this act, then and in every such case,
the division may institute in the Court of Common Pleas of
Dauphin County or in the court of common pleas of the county or
counties wherein the operation is situated, injunction, mandamus
or other appropriate legal proceedings to restrain such
violations of the provisions of this act or of orders of the
division and to enforce obedience therewith and such courts of
common pleas are hereby clothed with exclusive jurisdiction
throughout the Commonwealth to hear or determine all such
actions. No injunction bond shall be required to be filed in any
such proceeding. Such persons or corporations as the court may
deem necessary or proper to be joined as parties in order to
make its judgment, order or writ effective, may be joined as
parties. The final judgment in any such action or proceeding
shall either dismiss the action or proceeding or direct that the
writ of mandamus or injunction issue or be made permanent as
prayed for in the petition or in such modified or other form as
will afford appropriate relief. An appeal may be taken as in
other civil actions.
(c) The Attorney General, in addition to the exercise of the
powers and duties now conferred upon him by law, shall also,
upon request of the division or upon his own motion, proceed in
the name of the Commonwealth by mandamus, injunction or quo
warranto or other appropriate remedy, at law or in equity, to
restrain violations of the provisions of this act or of orders
of the division or the judgments, orders or decrees of any court
or to enforce obedience therewith.
(d) Each remedy prescribed in this section shall be deemed
concurrent or contemporaneous with any other remedy prescribed
herein and the existence or exercise of any one such remedy
shall not prevent the exercise of any other such remedy.
Section 504. Penalties.--Any person who shall wilfully
violate any provisions of this act or any order of the Oil and
Gas Division, issued pursuant to the provisions of this act,
shall be deemed guilty of a misdemeanor and, upon conviction
thereof, shall be sentenced to pay a fine of not more than five
hundred dollars ($500), or undergo imprisonment of not more than
one year, or both. Each day's continuance of such violation
shall be a separate and distinct offense. (504 amended July 31,
1968, P.L.881, No.265)
Section 505. Effective Date.--This act shall take effect in
sixty days.
ARTICLE VI
REGULATION OF CERTAIN UNDERGROUND
GAS STORAGE POOLS
NOT COVERED BY ARTICLE III
(Art. added Mar. 3, 1970, P.L.81,
No.38)
Section 601. Filing of Maps and Data by Persons Operating or
Proposing to Operate Certain Gas Storage Reservoirs.--(a) Any
person who, on the effective date of this article, is injecting
gas into or storing gas in a storage reservoir not then subject
to Article III of this act, by a process other than that of
secondary recovery or gas recycling, shall, within such time in
excess of sixty days as the division may fix, file with the
division a copy of a map and certain data in the form and manner
provided in this subsection.
Any person who, after the effective date of this article,
proposes to inject or store gas in a storage reservoir in an
area not covered by Article III of this act, by a process other
than that of secondary recovery or gas recycling, shall file the
required map and data with the division not less than six months
prior to the starting of actual injection or storage.
The map provided for herein shall be prepared by a competent
engineer or geologist. It shall show the stratum or strata in
which the existing or proposed storage reservoir is or is to be
located, the geographic location of the outside boundaries of
the said storage reservoir, the location of all known oil or gas
wells which have been drilled into or through the storage
stratum within the reservoir or within three thousand linear
feet thereof, indicating which of these wells have been or are
to be cleaned out and plugged or reconditioned for storage and
also indicating the proposed location of all additional wells
which are to be drilled within the storage reservoir or within
three thousand linear feet thereof.
The following information, 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 three thousand 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 aforesaid maps and data, such
person shall file a detailed statement of what efforts he has
made to determine (i) that the wells shown on said map are
accurately located thereon and (ii) that, to the best of his
knowledge, they are all the oil or gas wells which have ever
been drilled into or below the storage stratum within the
proposed storage reservoir. This statement shall also include
information as to whether or not the initial injection is for
testing purposes, the maximum pressure at which injection and
storage of gas in contemplated and a detailed explanation of the
methods to be used or which, theretofore, have been used in
drilling, cleaning out, reconditioning and plugging wells in the
storage reservoir. The map and data required to be filed
hereunder shall be amended or supplemented semi-annually in case
any material changes have occurred: Provided, however, That the
division may require a storage operator to amend or supplement
such map or data at more frequent intervals if material changes
have occurred justifying such earlier filing.
(b) The storage operators shall give notice to the division
of the name of each political subdivision and county in which
said operator maintains and operates a gas storage reservoir.
(c) At the time of the filing of the above maps and data and
the filing of amended or supplemented maps or data, the storage
operator shall give written notice of said filing to such
persons as the division may require. Such notices shall contain
a description of the boundaries of such storage reservoir.
(d) For all purposes of this act, 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 said storage stratum: Provided,
however, That the boundaries as thus defined shall be originally
fixed or subsequently changed where, based (i) upon the number
and nature of such wells, and (ii) upon the geological and
production knowledge of the storage stratum, its character,
permeability and distribution, and operating experience, it is
determined in a conference or hearing under section 502 that
modification should be made.
(601 added Mar. 3, 1970, P.L.81, No.38)
Section 602. Obligations to be Performed by Persons
Operating Certain Storage Reservoirs.--(a) Any person who, on
or after the effective date of this article, is operating or
proposes to operate a storage reservoir, except one that is
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 in the manner provided in Article II
of this act all known wells (except to the extent otherwise
provided in subsections (b) and (c) of this section) drilled
into or through the storage reservoir.
(b) In order to meet the requirements of subsection (a) of
this section, wells which are to be plugged shall be plugged in
the manner specified in section 206. When a well located within
the storage reservoir area has been plugged prior to the
enactment of this act and on the basis of the data, information
and other evidence submitted to the division it is determined
that (i) such plugging was done in the manner required in
section 206 or in a manner approved as an alternative method in
accordance with section 207, and (ii) said plugging is still
sufficiently effective to meet the requirements of this act, the
obligations imposed by subsection (a) of this section as to
plugging said well shall be considered fully satisfied.
(c) In order to meet the requirements of subsection (a) of
this section, wells which are to be reconditioned shall be
cleaned out from the surface through the storage horizon and the
producing casing and such other casing strings which are
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 as provided for in this act.
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 such
nonporous material as is approved by the division pursuant to
section 207. At least fifteen days prior to the time when a well
is to be reconditioned, the storage operator shall give notice
thereof to the division, setting forth in such notice the manner
in which it is planned to recondition such well and any
pertinent data known to the storage operator which will indicate
the then existing condition of such well. In addition, the
storage operator shall give such representative of the division
as the deputy secretary shall have designated at least seventy-
two hours notice of the time when such reconditioning is to
begin. If no objections are raised by the division within ten
days, the storage operator may proceed with the reconditioning
in accordance with the plan as submitted. If any objections are
made by the division, the division shall fix a time and place
for a conference in accordance with section 502 at which
conference the storage operator and the division shall endeavor
to agree upon a plan of reconditioning which meets the
requirements herein and which will satisfy such objections. If
no plan is approved at such conference, the division shall
direct that a hearing be held in accordance with section 502 and
after such hearing shall, by an appropriate order, determine
whether the plan as submitted meets the requirements set forth
herein or what changes, if any, should be made to meet such
requirements. If, in reconditioning a well in accordance with
said plan, physical conditions are encountered which justify or
necessitate a change in said plan, the storage operator may
request that the plan be changed. If the request is denied, the
division shall arrange for a conference or hearing in accordance
with section 502 to determine the matter in the same manner as
set forth herein in connection with original objections to said
plan. Applications may be made to the division in the manner
prescribed in section 207 for approval of an alternative method
of reconditioning a well. When a well located within the storage
reservoir has been reconditioned prior to the enactment of this
article, or was so drilled and equipped previously and on the
basis of the data, information and other evidence submitted to
the division, it is determined that:
(1) Such reconditioning or previous drilling and equipping
was done in the manner required in this subsection or in a
manner approved as an alternative method in accordance with
section 207.
(2) Such reconditioning or previous drilling and equipping
is still sufficiently effective to meet the requirements of this
act, the obligations imposed by subsection (a) as to
reconditioning said well shall be considered fully satisfied.
Where a well requires emergency repairs, this subsection shall
not be construed to require the storage operator to give the
notices specified herein before making such repairs.
(d) The requirements of subsection (a) of this section shall
not apply to the injection of gas into any stratum when the sole
purpose of such injection (such purpose being herein referred to
as testing) is to determine whether the said stratum is suitable
for storage purposes: Provided, however, That such testing shall
be conducted only in compliance with the following requirements:
(1) The person testing or proposing to test shall comply
with all of the provisions and requirements of section 601 and
shall verify the statement required to be filed thereby.
(2) The storage operator shall give at least six months'
written notice to the division of the fact that injection of gas
for testing purposes is proposed.
(3) If the division shall have any objections, the division
shall fix a time and place for a conference in accordance with
section 502, not more than ten days from the date of notice to
the storage operator, at which conference the storage operator
and the division shall attempt to agree, on the questions
involved. If such agreement cannot be reached at such
conference, the division shall direct that a hearing be held in
accordance with section 502. At such hearing, the division shall
determine and set forth in an appropriate order, the conditions
and requirements which it shall deem necessary or advisable in
order to prevent gas from escaping from such storage reservoir.
The storage operator shall comply with such conditions and
requirements throughout the period of the testing operations. In
determining such conditions and requirements, the division shall
take into account the extent to which the matters referred to in
subsection (a) of this section have been performed. If, in
carrying out said order the storage operator encounters or
discovers conditions which were not known to exist at the time
of the hearing and which materially affect said order or the
ability of the storage operator to comply with the order, the
operator may apply for a rehearing or modification of said
order.
(e) If, in any proceeding under this act, the division shall
determine that any operator of a storage reservoir has failed to
carry out any lawful order of the division issued under this
act, the division shall have authority to require such storage
operator to suspend the operation of such reservoir and to
withdraw the gas therefrom until such violation is remedied. In
such an event the gas shall be withdrawn under the following
conditions: the storage operator shall remove the maximum amount
of gas which is required by the division to be removed from the
storage reservoir that can be withdrawn in accordance with
recognized engineering and operating procedures, and shall
proceed with due diligence in so far as existing facilities used
to remove gas from the reservoir will permit.
(f) In addition to initial compliance with the other
provisions of this act and any lawful orders issued thereunder,
it shall be the duty, at all times, of the person owning or
operating any storage reservoir which is subject to the
provisions of this article, to keep all wells drilled into or
through the storage reservoir in such condition and to operate
the same in such manner as to prevent the escape of gas
therefrom and to operate and maintain such storage reservoir and
its facilities in such manner and at such pressures as will
prevent gas from escaping from such reservoir or its facilities
but in no case shall such pressure exceed the highest rock
pressure found to have existed during the production history of
the reservoir, or such other higher pressure as the division may
approve after conference or hearing under section 502 based upon
geological and production knowledge of the reservoir, its
character, permeability distribution and operating experience:
Provided, That this duty shall not be construed to include the
inability to prevent the escape of gas where such escape results
from an act of God or an act of any person not under the control
of the storage operator other than in connection with any well
which the storage operator has failed to locate and to make
known to the division: Provided, however, That, if any escape of
gas does result from an act of God or an act of any person not
under the control of the storage operator, the storage operator
shall be under the duty of taking such action thereafter as is
reasonably necessary to prevent further escape of gas.
(602 added Mar. 3, 1970, P.L.81, No.38)
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