RULES AND REGULATIONS
Title 25--ENVIRONMENTAL PROTECTION
ENVIRONMENTAL QUALITY BOARD
[25 PA. CODE CH. 78]
Oil and Gas Wells
[31 Pa.B. 1736] The Environmental Quality Board (Board) by this order amends Chapter 78 (relating to oil and gas wells). Amendments are needed to reflect the statutory amendment of act of May 15, 1998 (P. L. 358, No. 57) (Act 57), which eliminated the bonding requirement for oil and gas wells drilled prior to April 18, 1985. These amendments also clarify several sections, including brine spill reporting, notification requirements, permit requirements, disposal options and requirements for drilling through a gas storage reservoir.
This order was adopted by the Board at its meeting of January 16, 2001.
A. Effective Date
These amendments will go into effect upon publication in the Pennsylvania Bulletin as final-form rulemaking.
B. Contact Persons
For further information, contact James Erb, Director of the Bureau of Oil and Gas Management, P. O. Box 8765, Rachel Carson State Office Building, Harrisburg, PA 17105-8765, (717) 772-2199, or Scott Perry, Assistant Counsel, Bureau of Regulatory Counsel, P. O. Box 8464, Rachel Carson State Office Building, Harrisburg, PA 17105-8464, (717) 787-7060. Persons with a disability may use the AT&T Relay Service by calling (800) 654-5984 (TDD users) or (800) 654-5988 (voice users). This proposal is available electronically through the Department of Environmental Protection's (Department) website (http://www.dep.state.pa.us).
C. Statutory Authority
The final rulemaking is adopted under the authority of sections 601--604 of the Oil and Gas Act (act) (58 P. S. §§ 601.601--601.604), which directs the Board to adopt regulations to implement the provisions of the act; section 5(b)(1) of The Clean Streams Law (CSL) (35 P. S. § 691.5(b)(1)), which grants the Department the power and duty to formulate, adopt, promulgate and repeal rules and regulations necessary to implement the provisions of the CSL; section 304 of the CSL (35 P. S. § 691.304), which grants the Department the power to adopt, prescribe and enforce rules and regulations as may be necessary for the protection of the purity of the waters of this Commonwealth, or parts thereof, and to purify those now polluted, and to assure the proper and practical operation and maintenance of treatment works approved by the Department; section 402(a) of the CSL (35 P. S. § 691.402(a)), which grants the Department the authority to require by rules and regulations that activities be conducted under a permit or other conditions established by the Department whenever the Department finds that the activity creates a danger of pollution of the waters of this Commonwealth, or that regulation is necessary to avoid pollution; section 105(a) of the Solid Waste Management Act (SWMA) (35 P. S. § 6018.105(a)), which grants the Board the power and duty to adopt the rules and regulations of the Department to carry out the provisions of the SWMA; and sections 1901-A, 1917-A, 1920-A, 30 and 31 of The Administrative Code of 1929 (71 P. S. §§ 510-1, 510-17, 510-20, 510-103 and 510-104).
D. Background of the Amendments
The final-form rulemaking is required to update the current regulations to reflect the legislated changes in Act 57, regarding bonding for wells drilled prior to April 18, 1985. It incorporates recommendations received during the Oil and Gas Customer Needs Project regarding standardizing the use of pits, clarifying terms, organization of the sections of the regulations, and the placement of design criteria in the regulations. It also includes an additional recommendation regarding notification requirements for de minimis brine spill reporting. The Oil and Gas Technical Advisory Board suggested additional precautions regarding notification requirements to coal owners and gas storage operators as well as advance notice of procedures when drilling is proposed in relation to gas storage operations.
E. Summary of the Amendments and Changes to the Proposed Rulemaking
This section describes the substantive changes in the proposed rulemaking and those made at final-form rulemaking based on public comment.
Section 78.1. Definitions.
The amendments add a definition for ''reportable release of brine.'' This change provides clarification as to the quantity of spilled brine that must be reported. This definition is added in conjunction with § 78.66 (relating to reporting releases).
Section 78.17. Permit renewal.
The amendments add affected coal owners and gas storage operators to the persons who shall be notified when an operator requests a permit renewal. This change provides consistency with other sections of the regulations that allow coal owners and gas storage operators the opportunity for notification and objection of well permits. The final version was changed to clarify that notice shall be given to gas storage operators where the permit renewal is for a proposed well location without an underground gas storage reservoir or the reservoir protective area.
Section 78.53. Erosion and sediment control.
The amendment references the best management practices for oil and gas well operators as part of the technical guidance found in the Oil and Gas Operators Manual. The title of the section is changed for consistency. The final version requires well operators to design and implement best management practices.
Section 78.56. Pits and tanks for temporary containment.
The amendment changes subsection (a) to recognize additional operations that may result in the discharge of pollutional substances, and includes additional pollutional substances that must be contained. This section eliminates the permitting requirement for recompletion, servicing, and plugging pits, which are temporary in nature.
The amendment changes subsection (a)(4) to include drill cuttings from below the casing seat as a substance that must be considered when an operator is installing, constructing or maintaining the temporary pit.
The amendment adds subsection (a)(4)(v) to clarify the maintenance requirement for pit liners.
Subsection (d) is amended to include pits used during servicing and plugging. At final rulemaking, the word ''restored'' was replaced with ''removed or filled.''
Section 78.59. Pits used during servicing and plugging.
The amendment deletes this section because the changes to § 78.56 (relating to pits and tanks for temporary containment) regulate the same pits.
Section 78.60. Discharge requirements.
The amendment changes subsection (b)(5) to clarify that discharge of tophole water may include accumulated precipitation, and that tophole water is more appropriately characterized as the discharge.
Section 78.61. Disposal of drill cuttings.
The amendment changes subsections (a)--(c) to add a leading description to each subsection.
The amendment adds subsection (b)(8) and amend subsection (a) to clarify that free liquid fraction must be disposed of in accordance with the proper discharge requirements. Subsection (b)(8) is added for consistency with subsection (a).
Sections 78.62 and 78.63. Disposal of residual waste--pits; and disposal of residual waste--land application.
The amendments change §§ 78.62(a)(3) and 78.63(a)(3) to reflect the legislative changes that Act 57 created. Act 57 eliminated the bonding requirement for onsite disposal of residual wastes at oil and gas wells drilled prior to April 18, 1985. Clarifying language was added to these sections at final rulemaking to specify that the requirements apply to wells drilled on or after April 18, 1985.
Section 78.66. Reporting releases.
The amendment adds this section to clarify when a brine spill must be reported to the Department. This section also details the notification requirements for such a brine release. The title has been changed in the final version, and minor word changes were made in subsections (a) and (c).
Section 78.75. Alternative methods.
The amendment changes subsections (c) and (d) to clarify who is to be notified when an alternate method of casing, plugging or equipping a well is proposed by the well operator. The amendment includes all potentially impacted parties, such as coal owners and gas storage operators. This amendment includes these owners and operators as individuals who may evaluate the impact the alternate method may have on their interests.
Section 78.76. Drilling within a gas storage reservoir area.
The amendment changes subsection (a) to clarify that when a well operator proposes to drill within a gas storage area or reservoir protective area, the Department and the gas storage operator are to receive copies of the drilling proposal to allow them the opportunity to evaluate the impact on gas storage operations. Subsection (b) clarifies that the storage operator may object to the drilling, casing, and cementing plan or location of the proposed well. Subsection (c) is deleted here and moved to new § 78.87(a)(4) (relating to cementing procedures).
Section 78.78. Pillar permit applications.
The amendment adds subsection (a) to recognize the Department's use of the most current coal pillar study when considering a coal pillar permit application. The most recent coal pillar study was developed in 1957 and is still valid. Several other states also use this study in determining pillar adequacy.
The amendment adds subsection (b) to allow coal mine operators the opportunity to propose alternative adequate methods for developing a coal pillar. The final version references the applicable study in subsection (a).
Sections 78.81 and 78.87. General provisions, and gas storage reservoir protective casing; and cementing procedures.
The amendments relocate and modify § 78.81(d) as new § 78.87 to improve clarity of the regulation.
Specific changes from § 78.81 to § 78.87 are:
1) Section 78.87(a)(1) requires well operators to use drilling procedures capable of controlling anticipated gas flows and pressures when drilling from the surface to 200 feet above a gas storage reservoir or gas storage horizon. Deleted § 78.81 required these procedures ''at all times.''
2) Language deleted in § 78.81(d)(2) that provided for mutual agreement between well operators and gas storage operators concerning well casing has not been included in § 78.87. This language has been modified and is included in § 78.76 (relating to drilling within a gas storage reservoir area).
The final version clarifies that the protective area is the gas storage protective area.
Sections 78.91--78.93. General provisions; wells in coal areas--surface or coal protective casing is cemented; and wells in coal areas--surface or coal protective casing anchored with a packer or cement.
The amendments delete the word ''expanding'' from these three sections. The word ''expanding'' was used as an adjective to describe ''cement.'' Cement expands upon curing; therefore, the use of the adjective is not necessary.
Section 78.302. Requirement to file a bond.
The amendment revises this section to reflect the legislative change of Act 57, which eliminated the bonding requirement for oil and gas wells drilled prior to April 18, 1985.
Section 78.303. Form, terms and conditions of the bond.
The amendment deletes susbsections (a)(3) and (e)(3) to reflect the legislative changes of Act 57.
Section 78.309. Phased deposit of collateral.
The amendment revises susbsection (a)(1) to reflect the legislative changes of Act 57. The amendment states that an operator who has a phased deposit of collateral bond in effect as of the date of Act 57 (November 26, 1997) may maintain that bond. Due to the elimination of the bonding requirement for oil and gas wells drilled prior to April 18, 1985, operators can no longer qualify for a new phased deposit of collateral bond.
The amendment changes susbsection (a)(1) to provide that all of the operator's wells are included in the number of wells considered for the purpose of calculating an operator's annual deposit amount. This amendment reflects the legislative changes of Act 57.
The amendment deletes subsection (b)(1)(ii) because it only applied to pre-act wells. This amendment reflects the legislative changes of Act 57.
Section 78.310. Replacement of existing bond.
The amendment changes this section to delete the fee-in-lieu of bond option because new fee-in-lieu of bonding is not allowed. This amendment reflects the legislative changes of Act 57.
Section 78.901. Definitions
The amendment deletes this section because the only definition listed is for the Natural Gas Policy Act, a Federal program no longer delegated to the Department.
Section 78.903. Frequency of inspections.
The amendments delete paragraph (17) in accordance with the Department's operation under the act, and not the Federal Natural Gas Policy Act. The Federal program was discontinued.
F. Summary of Comments and Responses on the Proposed Rulemaking
The Board approved the proposed rulemaking on April 18, 2000, and it was published at 30 Pa.B. 3065 (June 17, 2000), with provision for a 30-day public comment period that closed on July 17, 2000. Comments were received from a total of five commentators and the Independent Regulatory Review Commission (IRRC).
The majority of comments suggested clarifying language, which was incorporated in the final-form regulations. Several commentators had opposing views regarding the anticipated drilling date and drilling plan notification requirements for drilling through gas storage reservoirs. Comments suggesting that gas storage operators be given the authority to reject a well operator's drilling plan were not included in the final-form rulemaking. This ability to effectively veto the Department's permitting authority goes beyond the statutory provisions of the act. Comments suggesting that well operators be excluded from providing notice to gas storage operators were also not included in the final-form rulemaking. Providing notice of the anticipated drilling date and the drilling plan is important because pressure in a storage reservoir fluctuates from low pressures in the summer to high pressures in fall and winter. Thus, the date drilling is to occur impacts how an operator must plan. The changes to § 78.76 ensure that the storage reservoir is protected by allowing a storage operator to confirm that the well operator's drilling plan adequately provides for the anticipated storage reservoir pressures.
G. Benefits, Costs and Compliance
Executive Order 1996-1 requires a cost/benefit analysis of the final-form regulations.
Benefits
These amendments are needed to reduce unnecessary permitting and reporting requirements, standardize the use of pits, clarify terms, organize the sections of the regulation, and provide information as to where to find design criteria. The amendments include notification requirements for de minimis brine spill reporting. The Oil and Gas Technical Advisory Board suggested additional precautions regarding notification requirements to coal owners and gas storage operators as well as advance notice of procedures when drilling is proposed in relation to gas storage operations. The amendments also reflect the legislative changes of Act 57. The oil and gas industry and the Department should realize savings in the form of reduced time and costs due to decreased permitting and reporting requirements and improved regulation clarity. The provision regarding elimination of the permit requirement for temporary pits will affect operators with active drilling or plugging programs. The renewal notification requirements will benefit coal owners and gas storage operators. The spill reporting provision will benefit about 2,000 operators with active wells as well as reduce the Department's staff time to address reported de minimis spills.
Compliance Costs
Operators proposing to drill a well in a gas storage area will have to provide the storage well operator the details of how the operator intends to construct the well. There will be fewer than 20 occurrences each year. This particular amendment will impose minimal additional compliance costs on the Department and the regulated community; however, these costs are likely to be offset by the overall savings of time and costs that are described in the Benefits section of this Preamble.
Compliance Assistance Plan
The technical guidance for the coal pillar permit criteria is made available on the Department website. The best management practices for erosion and sedimentation control is made available in the Oil and Gas Operators Manual. Both of these documents are available from the contact persons listed in Section B of this Preamble.
Paperwork Requirements
These amendments will reduce certain paperwork required for brine spill reporting and eliminate permits for certain pits.
H. Sunset Review
These regulations will be reviewed in accordance with the sunset review schedule published by the Department to determine whether the regulations effectively fulfill the goals for which they were intended.
I. Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on May 31, 2000, the Department submitted a copy of the notice of proposed rulemaking at 30 Pa.B. 3065, to IRRC and the Chairpersons of the House and Senate Environmental Resources and Energy Committees.
Under section 5(c) of the Regulatory Review Act, the Department also provided IRRC and the Committees with copies of the comments received, as well as other documentation. In preparing these final-form regulations, the Department has considered all comments received from IRRC and the public. The Committees did not provide comments on the proposed rulemaking.
Under section 5.1(d) of the Regulatory Review Act (71 P. S. § 745.5a(d)) these final-form regulations were deemed approved by the House and Senate Committees on February 26, 2001. IRRC met on March 8, 2001, and approved the amendments in accordance with section 5.1(e) of the Regulatory Review Act.
J. Findings
The Board finds that:
(1) Public notice of proposed rulemaking was given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and regulations promulgated in 1 Pa. Code §§ 7.1 and 7.2.
(2) A public comment period was provided as required by law, and all comments were considered.
(3) These final-form regulations do not enlarge the purpose of the proposal published at 30 Pa.B. 3065.
(4) These final-form regulations are necessary and appropriate for administration and enforcement of the authorizing acts identified in Section C of this Preamble.
K. Order
The Board, acting under the authorizing statutes, orders that:
(a) The regulations of the Department, 25 Pa. Code Chapter 78, are amended by amending §§ 78.1, 78.60, 78.75, 78.76, 78.81, 78.91--78.93, 78.302, 78.303, 78.310 and 78.903 and deleting §§ 78.59 and 78.901 to read as set forth at 30 Pa.B. 3065; and by amending §§ 78.17, 78.53, 78.56, 78.61--78.63 and 78.309 and adding §§ 78.66, 78.78 and 78.87 to read as set forth in Annex A, with ellipses referring to the existing text of the regulations.
(b) The Chairperson of the Board shall submit this order, 30 Pa.B. 3065 and Annex A to the Office of General Counsel and the Office of Attorney General for approval and review as to legality and form, as required by law.
(c) The Chairperson shall submit this order, 30 Pa.B. 3065 and Annex A to IRRC and the Senate and House Environmental Resources and Energy Committees as required by the Regulatory Review Act.
(d) The Chairperson of the Board shall certify this order, 30 Pa.B. 3065 and Annex A and deposit them with the Legislative Reference Bureau, as required by law.
(e) This order shall take effect immediately upon publication in the Pennsylvania Bulletin.
JAMES M. SEIF,
Chairperson(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 31 Pa.B. 1647 (March 24, 2001).)
Fiscal Note: Fiscal Note 7-353 remains valid for the final adoption of the subject regulations.
Annex A
TITLE 25. ENVIRONMENTAL PROTECTION
PART I. DEPARTMENT OF ENVIRONMENTAL PROTECTION
Subpart C. PROTECTION OF NATURAL RESOURCES
ARTICLE I. LAND RESOURCES
CHAPTER 78. OIL AND GAS WELLS
Subchapter B. PERMITS, TRANSFERS AND OBJECTIONS
PERMITS AND TRANSFERS § 78.17. Permit renewal.
An operator may request a 1-year renewal of a well permit. The request shall be accompanied by a permit fee, the surcharge required in section 601 of the act (58 P. S. § 601.601), and an affidavit affirming that the information on the original application is still accurate and complete, that the well location restrictions are still met and that the surface owners, coal owners and operators, gas storage operators, where the permit renewal is for a proposed well location within an underground gas storage reservoir or the reservoir protective area, and water supply owners within 1,000 feet have been notified of this request for renewal. The request shall be received by the Department at least 15 calendar days prior to the expiration of the original permit.
Subchapter C. ENVIRONMENTAL PROTECTION PERFORMANCE STANDARDS § 78.53. Erosion and sediment control.
During and after earthmoving or soil disturbing activities, including the activities related to siting, drilling, completing, producing, servicing and plugging the well, constructing, utilizing and restoring the access road and restoring the site, the operator shall design, implement and maintain best management practices in accordance with Chapter 102 (relating to erosion and sediment control) and an erosion and sediment control plan prepared under that chapter. Best management practices for oil and gas well operations are listed in the Oil And Gas Operators Manual, Commonwealth of Pennsylvania, Department of Environmental Protection, Guidance No. 550-0300-001 (April 1997), as amended and updated.
§ 78.56. Pits and tanks for temporary containment.
(a) Except as provided in §§ 78.60(b) and 78.61(b) (relating to discharge requirements; and disposal of drill cuttings), the operator shall contain pollutional substances and wastes from the drilling, altering, completing, recompleting, servicing and plugging the well, including brines, drill cuttings, drilling muds, oils, stimulation fluids, well treatment and servicing fluids, plugging and drilling fluids other than gases in a pit, tank or series of pits and tanks. The operator shall install or construct and maintain the pit, tank or series of pits and tanks in accordance with the following requirements:
(1) The pit, tank or series of pits and tanks shall be constructed and maintained with sufficient capacity to contain all pollutional substances and wastes which are used or produced during drilling, altering, completing and plugging the well.
(2) A pit shall be designed, constructed and maintained so that at least 2 feet of freeboard remain at all times. If open tanks are used, the tanks shall be maintained so that at least 2 feet of freeboard remain at all times unless the tank is provided with an overflow system to a standby tank or pit with sufficient volume to contain all excess fluid or waste. If an open standby tank is used, it shall be maintained with 2 feet of freeboard. If this subsection is violated, the operator immediately shall take the necessary measures to ensure the structural stability of the pit or tank, prevent spills and restore the 2 feet of freeboard.
(3) Pits and tanks shall be designed, constructed and maintained to be structurally sound and reasonably protected from unauthorized acts of third parties.
(4) A pit or tank that contains drill cuttings from below the casing seat, pollutional substances, wastes or fluids other than tophole water, fresh water and uncontaminated drill cuttings shall be impermeable and comply with the following:
(i) The pits shall be constructed with a synthetic flexible liner with a coefficient of permeability of no greater than 1 x 10-7 cm/sec and with sufficient strength and thickness to maintain the integrity of the liner. The liner shall be designed, constructed and maintained so that the physical and chemical characteristics of the liner are not adversely affected by the waste and the liner is resistant to physical, chemical and other failure during transportation, handling, installation and use. Adjoining sections of liners shall be sealed together to prevent leakage in accordance with the manufacturer's directions. If the operator seeks to use a liner material other than a synthetic flexible liner, the operator shall submit a plan identifying the type and thickness of the material and the installation procedures to be used, and shall obtain approval of the plan by the Department before proceeding.
(ii) The pit shall be constructed so that the liner subbase is smooth, uniform and free from debris, rock and other material that may puncture, tear, cut or otherwise cause the liner to fail. The liner subbase and subgrade shall be capable of bearing the weight of the material above the liner without settling that may affect the integrity of the liner. If the pit bottom or sides consist of rock, shale or other materials that may cause the liner to fail, a subbase of at least 6 inches of soil, sand or smooth gravel, or sufficient amount of an equivalent material, shall be installed over the area as the subbase for the liner.
(iii) The bottom of the pit shall be at least 20 inches above the seasonal high groundwater table, unless the operator obtains approval under subsection (b) for a pit that exists only during dry times of the year and is located above groundwater.
(iv) If a liner becomes torn or otherwise loses its integrity, the pit shall be managed to prevent the pit contents from leaking from the pit. If repair of the liner or construction of another temporary pit is not practical or possible, the pit contents shall be removed and disposed at an approved waste disposal facility or disposed on the well site in accordance with § 78.61, § 78.62 or § 78.63 (relating to disposal of residual waste--pits; and disposal of residual waste--land application).
(v) If the liner drops below the 2 feet of freeboard, the pit shall be managed to prevent the pit contents from leaking from the pit and the 2 feet of lined freeboard shall be restored.
(b) The operator may request to use practices other than those specified in subsection (a) which provide equivalent or superior protection by submitting a request to the Department for approval. The request shall be made on forms provided by the Department.
(c) Disposal of uncontaminated drill cuttings in a pit or by land application shall comply with § 78.61. A pit used for the disposal of residual waste, including contaminated drill cuttings, shall comply with § 78.62. Disposal of residual waste, including contaminated drill cuttings, by land application shall comply with § 78.63.
(d) Unless a permit under The Clean Streams Law (35 P. S. §§ 691.1--691.1001) or approval under § 78.57 or § 78.58 (relating to control, storage and disposal of production fluids; and existing pits used for the control, storage and disposal of production fluids) has been obtained for the pit, the owner or operator shall remove or fill the pit within 9 months after completion of drilling, or in accordance with the extension granted by the Department under section 206(g) of the act (58 P. S. § 601.206(g)). Pits used during servicing, plugging and recompleting the well shall be removed or filled within 90 days of construction.
§ 78.61. Disposal of drill cuttings.
(a) Drill cuttings from above the casing seat--pits. The owner or operator may dispose of drill cuttings from above the casing seat determined in accordance with § 78.83(b) (relating to surface and coal protective casing and cementing procedures) in a pit at the well site if the owner or operator satisfies the following requirements:
(1) The drill cuttings are generated from the well at the well site.
(2) The drill cuttings are not contaminated with pollutional material, including brines, drilling muds, stimulation fluids, well servicing fluids, oil, production fluids or drilling fluids other than tophole water, fresh water or gases.
(3) The disposal area is not within 100 feet of a stream, body of water or wetland unless approved as part of a waiver granted by the Department under section 205(b) of the act (58 P. S. § 601.205(b)).
(4) The disposal area is not within 200 feet of a water supply.
(5) The pit is designed, constructed and maintained to be structurally sound.
(6) The free liquid fraction of the waste shall be removed and disposed under § 78.60 (relating to discharge requirements).
(7) The pit shall be backfilled to the ground surface and graded to promote runoff with no depression that would accumulate or pond water on the surface. The stability of the backfilled pit shall be compatible with the adjacent land.
(8) The surface of the backfilled pit area shall be revegetated to stabilize the soil surface and comply with § 78.53 (relating to erosion and sedimentation control). The revegetation shall establish a diverse, effective, permanent, vegetative cover which is capable of self-regeneration and plant succession. Where vegetation would interfere with the intended use of the surface of the landowner, the surface shall be stabilized against erosion.
(b) Drill cuttings from above the casing seat--land application. The owner or operator may dispose of drill cuttings from above the casing seat determined in accordance with § 78.83(b) by land application at the well site if the owner or operator satisfies the following requirements:
(1) The drill cuttings are generated from the well at the well site.
(2) The drill cuttings are not contaminated with pollutional material, including brines, drilling muds, stimulation fluids, well servicing fluids, oil, production fluids or drilling fluids other than tophole water, fresh water or gases.
(3) The disposal area is not within 100 feet of a stream, body of water or wetland unless approved as part of a waiver granted by the Department under section 205(b) of the act (58 P. S. § 601.205(b)).
(4) The disposal area is not within 200 feet of a water supply.
(5) The soils have a minimum depth from surface to bedrock of 20 inches.
(6) The drill cuttings are not spread when saturated, snow covered or frozen ground interferes with incorporation of the drill cuttings into the soil.
(7) The drill cuttings are not applied in quantities which will result in runoff or in surface water or groundwater pollution.
(8) The free liquid fraction is disposed in accordance with § 78.60.
(9) The drill cuttings are spread and incorporated into the soil.
(10) The land application area shall be revegetated to stabilize the soil surface and comply with § 78.53. The revegetation shall establish a diverse, effective permanent vegetative cover which is capable of self-regeneration and plant succession. Where vegetation would interfere with the intended use of the surface by the landowner, the surface shall be stabilized against erosion.
(c) Drill cuttings from below the casing seat. After removal of the free liquid fraction and disposal in accordance with § 78.60, drill cuttings from below the casing seat determined in accordance with § 78.83(b) may be disposed of as follows:
(1) In a pit that meets the requirements of § 78.62(a)(5)--(18) and (b) (relating to disposal of residual waste--pits).
(2) By land application in accordance with § 78.63(a)(5)--(20) and (b) (relating to disposal of residual waste--land application).
(d) The owner or operator may request to use solidifiers, dusting, unlined pits, attenuation or other alternative practices for the disposal of uncontaminated drill cuttings by submitting a request to the Department for approval. The request shall be made on forms provided by the Department and shall demonstrate that the practice provides equivalent or superior protection to the requirements of this section.
(e) A pit used for the disposal of residual waste, including contaminated drill cuttings, shall comply with § 78.62. Land application of residual waste, including contaminated drill cuttings, shall comply with § 78.63.
§ 78.62. Disposal of residual waste--pits.
(a) After the removal and disposal of the free liquid fraction of the waste under § 78.60(a) (relating to discharge requirements), the owner or operator may dispose of residual waste, including contaminated drill cuttings, in a pit at the well site if the owner or operator satisfies the following requirements:
(1) The waste is generated by the drilling or production of an oil or gas well that is located on the well site where the waste is disposed.
(2) The well is permitted under section 201 of the act (58 P. S. § 601.201) or registered under section 203 of the act (58 P. S. § 601.203).
(3) The requirements of section 215 of the act (58 P. S. § 601.215) are satisfied by filing a surety or collateral bond for wells drilled on or after April 18, 1985.
* * * * * § 78.63. Disposal of residual waste--land application.
(a) The owner or operator may dispose of residual waste, including contaminated drill cuttings, at the well site by land application of the waste if the owner or operator satisfies the following requirements:
(1) The waste is generated by the drilling or production of an oil or gas well that is located on the well side.
(2) The well is permitted under section 201 of the act (58 P. S. § 601.201) or registered under section 203 of the act (58 P. S. § 601.215).
(3) The requirements of section 215 of the act (58 P. S. § 601.215) are satisfied by filing a surety or collateral bond for wells drilled on or after April 18, 1985.
* * * * * § 78.66. Reporting releases.
(a) A release of a substance causing or threatening pollution of the waters of this Commonwealth, shall comply with the reporting and corrective action requirements of § 91.33 (relating to incidents causing or threatening pollution).
(b) If a reportable release of brine on or into the ground occurs at the well site, the owner or operator shall notify the appropriate regional office of the Department as soon as practicable, but no later than 2 hours after detecting or discovering the release.
(c) The notice required by subsection (b) shall be by telephone and describe:
(1) The name, address and telephone number of the company and person reporting the incident.
(2) The date and time of the incident or when it was detected.
(3) The location and cause of the incident.
(4) The quantity of the brine released.
(5) Available information concerning the contamination of surface water, groundwater or soil.
(6) Remedial actions planned, initiated or completed.
(d) If, because of an accident, an amount of brine less than the reportable amount as described in § 78.1 (relating to definitions), spills, leaks or escapes, that incident does not have to be reported.
(e) Upon the occurrence of any release, the owner or operator shall take necessary corrective actions to:
(1) Prevent the substance from reaching the waters of this Commonwealth.
(2) Recover or remove the substance which was released.
(3) Dispose of the substance in accordance with this subchapter or as approved by the Department.
Subsection D. WELL DRILLING,
OPERATION AND PLUGGING
GENERAL § 78.78. Pillar permit applications.
(a) The Department will use recommendations for coal pillar size and configuration set forth in the coal pillar study, listed in the Department's Coal Pillar Technical Guidance Number 550-2100-006 (October 31, 1998) and any updates or revisions, as a basis for approval or disapproval of coal pillar permit applications submitted by underground coal mine operators.
(b) Where proposed coal pillar size and configuration does not conform to the recommendations of the coal pillar study referenced in subsection (a), the underground coal mine operator may request Department approval for an alternate coal pillar size and configuration.
CASING AND CEMENTING § 78.87. Gas storage reservoir protective casing and cementing procedures.
(a) In addition to the other provisions in this subchapter, a well drilled through a gas storage reservoir or a gas storage reservoir protective area shall be drilled, cased and cemented as follows:
(1) An operator shall use drilling procedures capable of controlling anticipated gas flows and pressures when drilling from the surface to 200 feet above a gas storage reservoir or gas storage horizon.
(2) An operator shall use drilling procedures capable of controlling anticipated gas storage reservoir pressures and flows at all times when drilling from 200 feet above a gas storage reservoir horizon to the depth at which the gas storage protective casing will be installed. Operators shall use blow-out prevention equipment with a pressure rating in excess of the allowable maximum storage pressure for the gas storage reservoir.
(3) To protect the gas storage reservoir, an operator shall run intermediate or production casing from a point located at least 100 feet below the gas storage horizon to the surface. The operator shall cement this casing by circulating cement to a point at least 200 feet above the gas storage reservoir or gas storage horizon.
(4) When cementing casing in a well drilled through a gas storage reservoir, the operator shall insure that no gas is present in the drilling fluids in an amount that could interfere with the integrity of the cement.
(b) A request by an operator for approval from the Department to use an alternative method or material for the casing, plugging or equipping of a well drilled through a gas storage reservoir under section 211 of the act (58 P. S. § 601.211) shall be made in accordance with § 78.75 (relating to alternative methods).
Subchapter G. BONDING REQUIREMENTS § 78.309. Phased deposit of collateral.
(a) Operators.
(1) Eligibility. An operator who had a phased deposit of collateral in effect as of November 26, 1997, may maintain that bond for wells requiring bonding, for new well permits and for wells acquired by transfer.
(i) An operator may not have more than 200 wells.
(ii) Under the following schedule, an operator shall make a deposit with the Department of approved collateral prior to the issuance of a permit for a well or the transfer of a permit for a well, and shall make subsequent annual deposits and additional well payments. For the purpose of calculating the required deposit, all of the operator's wells are included in the number of wells.
Annual Per Addi- Number of Wells Deposit tional Well 1-10 with no intention to operate more than 10 $50/well N.A. 11-25 or 1-10 and applies for additional well permits $1,150 $ 150 26-50 $1,300 $ 400 51-100 $1,500 $ 400 101-200 $1,600 $1,000 (iii) An operator shall make the phased deposits of collateral as required by the bond.
(2) Termination of eligibility. An operator is no longer eligible to make phased deposits of collateral when one or more of the following occur:
(i) The operator shall fully bond the wells immediately, if an operator has more than 200 wells.
(ii) If the operator misses a phased deposit of collateral payment, the operator shall do one of the following:
(A) Immediately submit the appropriate bond amount in full.
(B) Cease all operations and plug the wells covered by the bond in accordance with the plugging requirements of section 210 of the act (58 P. S. § 601.210).
(b) Individuals.
(1) Eligibility.
(i) An individual who seeks to satisfy the collateral bond requirements of the act by submitting phased deposit of collateral under section 215(d.1) of the act (58 P. S. § 601.215(d.1)), may not drill more than ten new wells per calendar year. A well in which the individual has a financial interest is to be considered one of the wells permitted under this section. A partnership, association or corporation is not eligible for phased deposit of collateral under this subsection.
(ii) The individual shall deposit with the Department $500 per well in approved collateral prior to issuance of a new permit.
(iii) The individual shall deposit 10% of the remaining amount of bond in approved collateral in each of the next 10 years. Annual payments shall become due on the anniversary date of the issuance of the permit, unless otherwise established by the Department. Payments shall be accompanied by appropriate bond documents required by the Department.
(iv) The individual shall make the phased collateral payments as required by the bond.
(2) Termination of eligibility. If the individual misses a phased deposit of collateral payment, the individual will no longer be eligible to make phased deposits of collateral and shall do one of the following:
(i) Immediately submit the appropriate bond amount in full.
(ii) Cease operations and plug the wells covered by the bond in accordance with the plugging requirements of section 210 of the act.
(c) Interest earned. Interest earned by collateral on deposit by operators and individuals under this section shall be accumulated and become part of the bond amount until the operator completes deposit of the requisite bond amount in accordance with the schedule of deposit. Interest earned by the collateral shall be retruned to the operator or the individual upon release of the bond. Interest may not be paid for postforfeiture interest accruing during appeals and after resolution of the appeals, when the forfeiture is adjudicated, decided or settled in favor of the Commonwealth.
[Pa.B. Doc. No. 01-546. Filed for public inspection March 30, 2001, 9:00 a.m.]
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