[46 Pa.B. 6431]
[Saturday, October 8, 2016]

[Continued from previous Web Page]

Reporting and remediation of spills and releases (§ 78a.66)

 Section 78a.66 establishes a reporting and remediation process for spills and releases that occur at well sites including a requirement to follow the procedures established under Act 2. Prior to this final-form rulemaking, the Department addressed spills through the policy ''Addressing Spills and Releases at Oil & Gas Well Sites or Access Roads'' which included allowances for use of an alternative process. This final-form rulemaking eliminates use of the alternative process. The Department received significant public comment on this section from oil and gas operators indicating that the Act 2 process increases the cost of remediation by three to four times the alternative process. Commentators also noted an individual cast in which they asserted that the remediation should have only cost $10,000 but was expected to cost $250,000 due to the Act 2 process. Commentators did not provide any specific details to fully explain the estimated costs. Commentators also argued that the timelines established for completing various steps of a spill remediation are inappropriate and overly burdensome for the oil and gas industry.

 The Department does not agree with the cost estimates. The cleanup process established under § 78a.66 includes the steps necessary to ensure that spills are appropriately remediated. To the extent that operators are remediating spills, they should generally be conducting the steps outlined by the Act 2 process. To the extent that operators are not conducting the steps outlined by the Act 2 process, the Department asserts that they may not be properly remediating spills. Therefore, since operators should already be conducting the required steps, the only new requirement under this final-form rulemaking is that operators shall follow the Act 2 process in accordance with the required timelines. Since operators are required to remediate spills, the Department does not believe that the timelines established under this section represent a new cost; as commentators have noted, postponement of a cost is not an avoidance of the cost. The Department does not believe that a requirement to follow the Act 2 process represents any significant burden on the oil and gas industry.

 The total cost of this provision is dependent upon the total number of spills or releases that shall be reported and remediated. It is not possible for the Department to predict the number of spills or releases that will occur at well sites. Therefore, the Department is unable to provide a specific cost estimate for this provision; however, the Department does not believe that this provision represents any significant new cost to the oil and gas industry.

Borrow pits (§ 78a.67)

 Section 78a.67(b) requires the registration of the location of existing borrow pits by December 7, 2016, and registration of new borrow pits before there are built. This will be done electronically through the Department's web site. There were a few comments from operators that this would be burdensome on industry. The Department does not believe that the requirement to register the location of existing borrow pits with the Department represents a significant burden on the industry and has not assigned a cost to this requirement.

 Section 78a.67(a) requires an oil and gas operator who owns or controls a borrow pit that does not require a permit under the NSMCRA under the exemption in section 3273.1(b) of the 2012 Oil and Gas Act to operate, maintain and reclaim the borrow pit in accordance with the performance standards in Chapter 77, Subchapter I and in accordance with Chapter 102.

 The exemption in section 3273.1(b) of the 2012 Oil and Gas Act was taken verbatim from the 1984 Oil and Gas Act. This section seeks to provide clarity for implementation of those requirements; therefore, the Department has not assigned a new cost to this requirement.

 The total estimated cost of these provisions is $0.

Gathering lines (§ 78a.68(a)—(f))

 This section establishes common sense environmental controls for construction of oil and gas gathering lines. These requirements are intended to help ensure that operators maintain compliance with The Clean Streams Law and Chapters 102 and 105 when constructing gathering lines. The Department believes that most operators already comply with the bulk of these requirements and will not have to make any significant changes to their operations. The cost of these provisions is dependent on the number of linear miles of pipeline installed and the terrain in which the pipeline is installed. The Department does not have sufficient data to produce an estimated cost of these provisions but since most operators should already be in compliance with the bulk of these common sense environmental controls, the Department does not believe that this section will result in any significant burden to the oil and gas industry.

Corrosion control for gathering lines (§ 78a.68(g))

 This final-form rulemaking requires that all buried metallic gathering pipelines shall be installed and placed in operation in accordance with 49 CFR Part 192, Subpart I or Part 195, Subpart H. Some comments received questioned the Department's statutory authority to incorporate Federal standards for pipelines into the rulemaking. Section 3218.4(a) of the 2012 Oil and Gas Act provides that ''[a]ll buried metallic pipelines shall be installed and placed in operation in accordance with 49 CFR Pt. 192 Subpt. I (relating to requirements for corrosion control).'' Section 78a.68(g) reflects this requirement. The incorporation of 49 CFR Part 195, Subpart H is included because it also outlines standards for protecting pipelines against corrosion, specifically steel pipelines transporting hazardous liquids such as condensate from natural gas operations. The reference to 49 CFR Part 195, Subpart H is consistent with the intent of section 3218.4(a) of the 2012 Oil and Gas Act to set forth standards for the installation and placement of metallic pipelines, including related corrosion control requirements. Since this provision is a statutory requirement, the Department has not assigned a new cost.

 The total new cost of this provision is $0.

HDD (§ 78a.68a)

 This section establishes common sense environmental controls for conducting HDD. These requirements are intended to help ensure that operators maintain compliance with The Clean Streams Law and Chapters 102 and 105 when conducting HDD. The Department believes that most operators already comply with the bulk of these requirements and will not have to make any significant changes to their operations. The cost of these provisions is dependent on the number of horizontal directional bores completed and the terrain in which the bores are completed. The Department does not have sufficient data to produce an estimated cost of these provisions but since most operators should already be in compliance with the bulk of these common sense environmental controls, the Department does not believe that this section will result in any significant burden to the oil and gas industry.

Well development pipelines for oil and gas operations (§ 78a.68b)

 Subsections (a) and (d)—(n) establish common sense environmental controls for constructing and operating well development pipelines. These requirements are intended to help ensure that operators maintain compliance with The Clean Streams Law and Chapters 102 and 105 when constructing and operating well development pipelines. The Department believes that most operators already comply with the bulk of these requirements and will not have to make any significant changes to their operations. The cost of these provisions is dependent on the number of well development pipelines constructed and utilized and the terrain in which the well development pipelines are constructed. The Department does not have sufficient data to produce an estimated cost of these provisions but since most operators should already be in compliance with the bulk of these common sense environmental controls, the Department does not believe that this section will result in any significant burden to the oil and gas industry.

Prohibition of buried well development pipeline (§ 78a.68b(b) and (c))

 One specific requirement in this section is the requirement that well development pipelines that carry fluid other than fresh ground water, surface water, water from water purveyors or water from Department approved sources shall be installed aboveground except when crossing pathways, roadways, railways, water courses or water bodies. This section also limits the use well development pipelines to a time period of 1 year. Operators expressed significant concerns about these provisions because many operators maintain a network of buried pipelines that fit the definition of well development pipelines. Commentators did not provide any cost estimates to the Department for this provision.

 The cost of these provisions is dependent on the number of pipelines that are impacted. The Department does not have sufficient data to make a detailed cost estimate but notes that the costs could be substantial.

WMPs (§ 78a.69)

 This final-form rulemaking implements requirements in section 3211(m) of the 2012 Oil and Gas Act which requires anyone who withdraws or uses water from water sources within this Commonwealth for drilling or hydraulic fracture stimulation of any natural gas well completed in an unconventional gas formation to do so in accordance with an approved WMP.

 Since this section implements existing statutory requirements, it does not represent a new cost to the oil and gas industry.

 The total new cost of this provision is $0.

Monthly waste reporting requirements (§ 78a.121)

 This final-form rulemaking includes a requirement for unconventional operators to report waste production to the Department on a monthly basis. This is different from the existing requirement to report once every 6 months. The Department received significant comment on this requirement from operators indicating that it is costly and overly burdensome. Commentators estimated that waste reporting will take 20—30 hours on average regardless of the length of the reporting period. The new cost associated with this provision is the difference in the current cost to report and the new cost to report. The Department assumes a labor rate of $30/hour to do the reporting.

 The current cost is between $1,200 and $1,800 per year for each operator.

 20 hours × $30/hour × 2 reports/year = $1,200

 30 hours × $30/hour × 2 reports/year = $1,800

 The new cost is between $7,200 and $10,800 per year for each operator.

 20 hours × $30/hour × 12 reports/year = $7,200

 30 hours × $30/hour × 12 reports/year = $10,800

 The total new cost is between $6,000 and $9,000 per year for each operator.

 $7,200 − $1,200 = $6,000

 $10,800 − $1,800 = $9,000

 The total cost of this new requirement is equal to the average new cost per operator times the number of operators.

 73 operators × $6,000 = $438,000

 73 operators × $9,000 = $657,000

 Therefore, the total estimated annual cost of this provision is estimated to be between $438,000 and $657,000.

 The estimated initial cost of this provision on unconventional operators is between $41.358 million and $73.463 million; the estimated annual cost of this provision on unconventional operators is between $5,895,500 and $31,149,664.

 The Department provided a summary table of estimated costs in Appendix A of the Regulatory Analysis Form.

Unconventional operators savings

Assumptions

 It is estimated that there will be approximately 2,600 unconventional wells permitted each year for the next 3 years.

 Based on Department data, approximately 1 out of every 2 permitted wells gets drilled, or approximately 1,300 wells per year.

 The Department assumes there are an average of three unconventional wells per well site. In the future, it is estimated that less well sites will be built as there could be as many as 12 unconventional wells per well pad.

 The cost analysis for this final-form rulemaking must be factored on a well site basis, not on a per well basis. Many of the processes proposed for regulation in this final-form rulemaking include activities integral to the operation of several wells and even several well pads.

 2,600 wells permitted × 50% of wells drilled = 1,300 wells drilled each year

 1,300 wells drilled each year ÷ 3 wells per well site = 434 well sites built each year

Savings estimates

Electronic submission of well permits (§ 78a.15(a))

 This final-form rulemaking requires applicants to submit well permit applications electronically through the Department's web site. This will achieve greater efficiency and time management on the Department's end and will also save operators in postage.

 2,600 permits × $5 postage savings = $13,000

 The total savings of this provision is estimated to be $13,000.

Electronic submission of water surveys as one package (§ 78a.52(d))

 An operator may submit a copy of all sample results taken as part of a survey to the Department by electronic means. Currently, operators submit each individual's sample by mail as it is completed. This subsection will save the operator postage cost and will help the Department gain efficiencies by having all samples for one well site area submitted as a whole. The Department estimates that on average, each unconventional well site will fall within the 2,500-foot range (as specified by Act 13) of approximately ten properties.

 434 well sites × 10 properties (avg.) × $5 postage savings = $21,700

 The total savings of this provision is estimated to be $21,700.

Two-year permit renewal term (§ 78a.17)

 This final-form rulemaking allows well permit renewals to be issued for 2 years instead of limiting the renewal term to 1 year. This represents a savings for operators that renew permits because the cost of well permit fees is reduced. The savings associated with this provision is dependent on the number of well permits that get renewed on an annual basis. Based on Department well permit data, unconventional well operators obtain well permit renewals at the following rates.

 One renewal = 6.3% of permits

 Two renewals = 0.7% of permits

 Three or more renewals = 0.3% of permits

 Since the first renewal will be issued for a period of 2 years, the cost to renew permits for the second time is eliminated by this final-form rulemaking. Well permits fees for unconventional wells are either $4,200 for vertical wells or $5,000 for nonvertical wells.

 0.7% × 2,600 × $4,200 = $76,440

 0.7% × 2,600 × $5,000 = $91,000

 Therefore, the total savings of this provision is estimated to be between $76,440 and $91,000.

Well site restoration extension (§ 78a.65(c)(2))

 When initially proposed, the Department estimated that well site restoration extensions would provide a savings of $21.7 million. Upon further evaluation, since the well site restoration extension provisions are established by the 2012 Oil and Gas Act, any savings that may be realized by this provision are based on statutory provisions and not this final-form rulemaking.

 The total savings of this provision is estimated to be $0.

 The estimated savings of this regulation on unconventional operators is approximately $125,700.

Pipeline/midstream companies savings

Assumptions

 There are approximately 100 HDD operations annually.

 These operations use approximately 25,000 gallons of drilling fluids to conduct HDD operations.

 100 × 25,000 = 2,500,000 gallons per year for disposal

 Disposal costs = 12¢ per gallon

Recycling and onsite application of gathering line HDD fluid discharges and returns (§ 78.68a(k))

 2,500,000 gallons × 12¢ = $300,000

 The estimated savings of this regulation on pipeline operators and midstream companies is $300,000 annually.

 The total savings for the entire regulated community is estimated to be between $76,440 and $477,100.

Local government costs and savings

 The Department does not anticipate that there will be significant costs or saving to local governments. The public resource impact screening provisions in § 78a.15(f)(2) may impose a cost on local governments. In accordance with § 78a.15(f), unconventional operators are required to provide public resource agencies information about the location of a proposed well, including identifying the public resource, describing the public resource's function and uses, and describing any mitigation measures. The public resource agency then has the option to provide written comments to the Department on a pending well permit application related to the functions and uses of the public resource and the measure, if any, needed to avoid, minimize or otherwise mitigate probable harmful impacts. To the extent that a local governmental entity manages public resources listed in § 78a.15(f)(1), there may be cost associated with conducting a review of information submitted and preparing written comments to the Department. Any cost would be voluntary as this is not a requirement of this final-form rulemaking.

State government costs and savings

 There are costs to the Department that will be incurred as a result of the implementation of this final-form rulemaking. Increased field inspections and formal reviews are anticipated. More importantly however, there are provisions in this final-form rulemaking that will streamline the Department's operations that are anticipated to balance out any increased workload requirements. The following are measures included in this final-form rulemaking with the goal of increasing Department efficiency:

 • Electronic permitting will ensure that permits are submitted in a consistent format that prompts correct and complete permit applications prior to their submittal. Electronic permitting will eliminate incomplete application submittals, eliminate paper communications and increase Department complement efficiency. It will also allow for improved transparency in the Department's permitting operations.

 • Upon request, require operators to directly provide the Fish and Boat Commission and landowners a copy of the site-specific PPC plan, instead of having them go through a Right-to-Know Law request, will save the Department staff time of obtaining them on their behalf.

 • Electronic notification prior to the start of pipeline HDD and liner installation so the Department's staff can schedule inspections accordingly.

 • Allow for the approval for aboveground modular storage systems, which, once approved, will be posted on the Department's web site for all users. This will eliminate duplication of work.

 • Allow for the one-time approval for pipeline HDD additives which, once approved, will be posted on Department's web site as preapproved. This will eliminate duplication of work.

 • Allow for the one-time approval of onsite waste processing facilities. This will eliminate duplication of work.

Compliance assistance plan

 The Department has worked extensively with representatives from the regulated community and leaders from several industry organizations have attended the advisory committee meetings when the final-form regulations were discussed. Therefore, the requirements in this final-form rulemaking are well known.

 The Department plans to schedule training sessions for the regulated community to address the new regulatory requirements when this final-form rulemaking is finalized. Additionally, Department field staff are the first points of contact for technical assistance and will be able to provide guidance to the regulated community through technical information and direct field-level assistance.

Paperwork requirements

 This final-form rulemaking includes new planning, reporting and recordkeeping requirements. However, operators have many different options for their surface operations, therefore not all of the requirements will be applicable all of the time. To minimize the burden of these requirements, the Department has requested electronic submission of most planning, reporting and recordkeeping required in this final-form rulemaking. The Department notes that some reporting and notification requirements are part of the existing regulations but this final-form rulemaking requires electronic submission, so not all of the following items below new reporting requirements (for example, permit application requirements in § 78a.15). The Department also notes that lists of preapproved structures or methods will be maintained on the Department's web site and operators utilizing those preapproved items will avoid the need to meet these reporting requirements and use these forms. For example, once a processing method is approved under § 78a.58(g), the operator may use that processing method at other well sites with only notice to the Department rather than another request for approval.

 The additional reporting requirements are as follows:

 • If an operator wants to use survey results to preserve its defenses under section 3218(d)(1)(i) or (2)(i) of the 2012 Oil and Gas Well Act, submission of predrill well sampling data to the Department. § 78a.52(d) (relating to predrilling or prealteration survey) at least 10 days prior to the start of drilling

 • If an owner or operator chooses to dispose of drill cuttings on the well site, they will be required to notify the Department 3 business days prior and provide notice of disposal to the surface landowner with the location of the disposal site within 10 business days of the completion of the disposal. § 78a.61(e)

 • An operator of a borrow pit shall register the location of the borrow pit. § 78a.67(b)

 • If an operator is using a borrow pit that does not fall under the permitting requirements of the NSMCRA, they will be required to register the location of the borrow pit with the Department. § 78a.67(b)

 • Submission to the Department of an area of review report inclusive of a monitoring plan. § 78a.52a(c)

 • If an operator wishes to use an alternate temporary storage practice, the operator shall submit a request for approval to the Department. § 78a.56(b)

 • If modular aboveground storage structures are to be installed, a 3-business-day notice to the Department is required. § 78a.56(a)(4)

 • Operators are required to submit a list to the Department of the well sites where underground or partially buried storage tanks are located. § 78a.57(e)

 • Notice of planned use of previously approved or new processing method 3 business days prior to initiation. § 78a.58(d) and (g)

 • The Department shall be notified electronically 24 hours prior to all HDD activities. § 78a.68a(c)

 • The Department shall be notified of any water supply complaints during HDD. § 78a.68a(j)

 • The Department shall be notified of any loss or discharge of HDD fluid during HDD activities. § 78a.68a(i)

 • Proof of consultation with the Pennsylvania Natural Heritage Program regarding PNDI and the Pennsylvania Historical and Museum Commission regarding historical/archaeological sites shall be provided to the Department. § 78a.69(c) (relating to water management plans)

 • Proof of notification of a proposed withdrawal has been provided to municipalities and counties where water source will be located. § 78a.69(c)

 • An operator of an existing freshwater impoundment shall provide electronic notification of the impoundment's GPS coordinates to the township and county in which the impoundment is located. § 78a.59b(b)

 • If an operator uses an open pit for storage of production fluids, it shall report the activity to the Department. § 78a.57(a)

 • The operator shall notify the Department within 3 business days of the deficiencies found during the monthly inspection of tanks. § 78a.57(i)

 • Surface restoration plan. § 78a.65(b)

 • The operator shall demonstrate proof of compliance with § 102.8(l) and (m) or provide a licensed professional certification of complete site restoration to approximate original contours and return to preconstruction stormwater runoff rate, volume and quality in accordance with § 102.8(g). § 78a.65(b) and (b)(6)

 • If a well site is constructed and the well is not drilled, the well site shall be restored within 9 months after the expiration of the well permit unless the Department approves an extension for reasons of adverse weather or lack of essential fuel, equipment or labor. § 78a.65(a)(3)

 • An application for a well permit shall be submitted electronically to the Department through its web site and contain enough information to enable the Department to evaluate the application. § 78a.15(a)

 • An operator of a planned unconventional well which will be stimulated using hydraulic fracturing shall develop and submit to the Department an area of review monitoring plan. § 78a.52a(c)(3)

 • An operator that constructed a well development impoundment prior to October 8, 2016, shall register the location of the well development impoundment by December 7, 2016, to the Department, through the Department's web site, with electronic notification of the GPS coordinates, township and county where the well development impoundment is located. § 78a.59b(c)

 • An operator that constructed a well development impoundment prior to October 8, 2016, shall provide to the Department certification as to whether the impoundment meets the requirements. Any impoundment that does not meet the requirements shale be upgraded to meet the requirements. § 78a.59b(b)

 • An operator who plans to close a well development impoundment shall submit electronically to the Department a well development impoundment closure plan. § 78a.59c(a)

 • An operator seeking to manage waste on a well site in any manner other than provided in §§ 78a.56—78a.63 shall submit a request electronically to the Department describing the alternate management practice. § 78a.63a (relating to alternative waste management)

 • A water purveyor withdrawing water from waters of the Commonwealth shall submit to the Department daily withdrawal volumes on a quarterly basis, in stream flow measurements or other water source purchases, or both. § 78a.69(c)(3)

 The regulated community will need new reporting forms with this final-form rulemaking. The Department will make forms and guidance documents available prior to adoption of this final-form rulemaking. The additional forms required are as follows:

 • Consideration of Public Resources Form. § 78a.15(f)(3)

 • Landowner Questionnaire & Instructions. § 78a.52a(b)(3)

 • Survey Plat & Instructions. § 78a.52a(c)(1)

 • Proof of Operator Notification Form & Instructions. § 78a.73(c)

 • Stimulation Communication Notification Form and Instructions. § 78a.73(c)

 • Form/questionnaire to submit to landowners for location of oil and gas wells. § 78a.52a(b)(3)

 • Monthly Tank Inspection Form. § 78a.57(i)

 • Form to request to process wastewater and drill cuttings. § 78a.58(a) and (e)

 • Freshwater Impoundment Registration Form. § 78a.59b(c)

 • Land owner request to waive restoration requirement. § 78a.59b(g)

 • Mine Influenced Water Storage in a Freshwater Impoundment Form (must include parameters that demonstrate that water stored will not cause pollution). § 78a.59b(h)

 • Extension of Drilling or Production Period Request Forms. § 78a.65(c)(1)

 • Well Site Restoration Extension Request Form. § 78a.65(d)(3)

 • Written Consent of Landowner Restoration. § 78a.65(d)(4)

 • Post Drilling Restoration Report. § 78a.65(e)

 • Post Plugging Restoration Report. § 78a.65(f)

 • Landowner Consent Forms. § 78a.65(g)

 • Material Staging Area Setback Waiver Form. § 78a.68a(e)

 • Water Management Plan Approval Request Form. § 78a.69(c)

 • Request for modification approval of a Water Management Plan. § 78a.69(c)

Landowner notification

 Section 78a.52(g) requires unconventional operators to notify landowners that if their water supply becomes impacted and they have refused to allow the operator to perform a predrilling survey of their water supply, the presumption of liability provided by the 2012 Oil and Gas Act will not apply. This provision is needed because this notice is required under section 3218(e.1) of the 2012 Oil and Gas Act. This was a new requirement added in the 2012 Oil and Gas Act.

Department notifications

 To enhance the Department's field staff inspection efficiency, this final-form rulemaking requires operators to notify the Department prior to oil and gas construction activities, such as building a well pad or installing a pit liner. These provisions allow the Department to effectively manage its resources and ensure timely inspections.

 Three-day notifications are required for the following:

 • Prior to disposal of drill cuttings on unconventional well sites. § 78a.61

 • Prior to conducting onsite processing on unconventional well sites. § 78a.58

 • Prior to utilizing modular aboveground storage structures on unconventional well sites. § 78a.56

 • After noticing deficiencies in tanks during monthly inspections on unconventional well sites. § 78a.57(h)

24-hour notice for HDD

 In § 78a.68a(c), persons conducting HDD activities associated with pipeline construction relating to unconventional oil and gas operations shall electronically notify the Department through its web site at least 24 hours prior to beginning of any HDD activities, including conventional boring, beneath any body of water or watercourse. This provision is needed because it will allow the Department to conduct HDD inspections as the HDD is occurring.

 Additionally, in § 78a.68a(j), any water supply complaints received by the responsible party for HDD shall be reported to the Department within 24 hours through the Department's web site. This requirement will ensure that the Department conducts a timely water supply investigation upon receipt of a water supply complaint to the responsible party.

 Electronic filing requirements throughout this final-form rulemaking are needed because electronic filing allows the Department to:

 • More efficiently track well development and operations from beginning to end, enabling inspectors to focus on field inspections of the hundreds of thousands of wells in this Commonwealth rather than the review and management of paper submissions.

 • Provide the public easy access to data through the Department's web site.

 • Develop business rules to ensure that the data submitted is complete and accurate, thereby reducing the workload for both the Department and operators in returning and addressing deficient submissions.

 • Have a complete picture regarding well development/operations to more efficiently determine compliance. For example, when reviewing production data, Department staff needs to have permit, Well Record, Completion Report and additional information readily available to help determine the validity of the production/waste data. Currently, paper files need to be retrieved, sometimes from other offices, to obtain this information.

 In the proposed rulemaking, the well permit and nearly all approvals, reports and notifications required by the proposed rulemaking had to be made to the Department electronically. The Department determined that moving to all electronic filing is appropriate and necessary for the Department to fulfill its mission. Therefore, this final-form rulemaking retains the concept of mandatory electronic submissions to the Department.

 The Department also received comments questioning the Department's ability to implement these requirements, as they will require a substantial increase in IT development and support staff than is currently required to support the Oil and Gas Program. The Department currently has a number of online electronic reporting applications for the submission of information pertaining to oil and gas wells. These applications are accessed through the Department's GreenPort enterprise portal. The Department acknowledges that the online electronic reporting functionality with respect to oil and gas operations will need to be expanded. The Department strives to develop applications that are user friendly for both external users and Department staff. The Department will continue in this effort by releasing enhancements to existing applications based upon user feedback. Operators will not be expected to submit information electronically if the Department has not yet developed an electronic portal to accept the information. The Department acknowledges that backup provisions will need to be in place for those situations during which the electronic portal is down.

H. Pollution Prevention

 The Pollution Prevention Act of 1990 (42 U.S.C.A. §§ 13101—13109) established a National policy that promotes pollution prevention as the preferred means for achieving state environmental protection goals. The Department encourages pollution prevention, which is the reduction or elimination of pollution at its source, through the substitution of environmentally friendly materials, more efficient use of raw materials and the incorporation of energy efficiency strategies. Pollution prevention practices can provide greater environmental protection with greater efficiency because they can result in significant cost savings to facilities that permanently achieve or move beyond compliance.

 The Department notes that section 3211(m)(2)(iv) of the 2012 Oil and Gas Act requires unconventional operators to ''include a reuse plan for fluids that will be used to hydraulically fracture wells'' as part of the operator's Department-approved WMP. The unconventional oil and gas industry has been extremely effective in utilizing wastewater from one well to hydraulically fracture the next well, achieving almost a 90% recycling rate annually over the past several years. The requirements in this final-form rulemaking are intended to encourage these efforts while maintaining appropriate and reasonable environmental protections in place.

I. Sunset Review

 This final-form rulemaking will be reviewed in accordance with the sunset review schedule published by the Department to determine whether it effectively fulfills the goals for which it was intended.

J. Regulatory Review

 On December 4, 2013, the Department submitted the proposed rulemaking approved by the Board to the Bureau for publication in the Pennsylvania Bulletin for a 60-day public comment period. On the same date, as required under section 5(a) of the Regulatory Review Act (71 P.S. § 745.5(a)), the Department submitted the proposed rulemaking and a Regulatory Analysis Form to IRRC and the Chairpersons of the House and Senate Environmental Resources and Energy Committees for review and comment. Notice of the proposed rulemaking was published at 43 Pa.B. 7377. The public comment period was subsequently extended for another 30 days until March 14, 2014, through a notice published at 44 Pa.B. 648.

 On March 3, 2016, the Department submitted the pre-Act 52 final-form regulations approved by the Board, the responses to all comments received during the public comment period and a Regulatory Analysis Form to IRRC and the House and Senate Environmental Resources and Energy Committees as required under section 5.1(a) of the Regulatory Review Act (71 P.S. § 745.5a(a)). The pre-Act 52 final-form regulations were prepared based on consideration of all comments received from IRRC, the House and Senate Environmental Resources and Energy Committees, and the public.

 On April 12, 2016, the House and Senate Environmental Resources and Energy Committees voted to disapprove the pre-Act 52 final-form regulations and notified IRRC and the Board as required under section 5.1(j.2) of the Regulatory Review Act. On April 21, 2016, IRRC held a public meeting to consider the pre-Act 52 final-form regulations and approved it in a 3-2 vote.

 On May 3, 2016, the House Environmental Resources and Energy Committee voted to report a concurrent resolution to disapprove the pre-Act 52 final-form regulations approved by IRRC to the General Assembly under section 7(d) of the Regulatory Review Act (71 P.S. § 745.7(d)). The concurrent resolution was not passed by the General Assembly within 30 calendar days or 10 legislative days from the reporting of the concurrent resolution, and the Board may therefore promulgate the pre-Act 52 final-form regulations.

 On June 23, 2016, Act 52 was enacted abrogating the pre-Act 52 final-form regulations ''insofar as such regulations pertain to conventional oil and gas wells.''

 The Department delivered the pre-Act 52 final-form regulations to the Office of Attorney General for form and legality review on June 27, 2016. In accordance with the Regulatory Review Act and the Commonwealth Attorneys Act, the Office of Attorney General directed the Department to make changes to the pre-Act 52 final-form regulations to comply with Act 52. On July 26, 2016, the Department resubmitted this final-form rulemaking to the Office of Attorney General for review.

 In accordance with the Office of Attorney General's direction, the Department removed all amendments or additions to Chapter 78 regarding conventional oil and gas wells and retained the deletions and modifications in Chapter 78 that related solely to the unconventional wells. This revised final-form rulemaking also contains clarifications and corrections to respond to other issues identified by the Office of Attorney General, including the addition of § 78a.2 to clarify that Chapter 78a supersedes Chapter 78 for unconventional wells to avoid any potential conflict between the requirements in Chapter 78 and Chapter 78a regarding unconventional wells. Later on July 26, 2016, the Office of Attorney General approved this revised final-form rulemaking for form and legality under the Commonwealth Attorneys Act. The regulations in Annex A are the revised final-form rulemaking as approved by the Office of Attorney General. This preamble was revised to reflect the final-form rulemaking as approved by the Office of Attorney General in conformance with Act 52.

 The Joint Committee on Documents met on August 18, 2016, and voted to direct the Bureau to publish this final-form rulemaking.

K. 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 thereunder, 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) This final-form rulemaking does not enlarge the purpose of the proposed rulemaking published at 43 Pa.B. 7377.

 (4) These regulations are necessary and appropriate for administration and enforcement of the authorizing acts identified in Section C of this preamble.

L. Order

 The Board, acting under the authorizing statutes, orders that:

 (a) The regulations of the Department, 25 Pa. Code, are amended by amending §§ 78.1, 78.19, 78.55, 78.72 and 78.121 and by adding §§ 78a.1, 78a.2, 78a.11—78a.19, 78a.21—78a.33, 78a.51, 78a.52, 78a.52a, 78a.53—78a.58, 78a.59a, 78a.59b, 78a.59c, 78a.60—78a.63, 78a.63a, 78a.64, 78a.64a, 78a.65—78a.68, 78a.68a, 78a.68b, 78a.69, 78a.70, 78a.70a, 78a.71—78a.75, 78a.75a, 78a.76—78a.78, 78a.81—78a.83, 78a.83a, 78a.83b, 78a.83c, 78a.84—78a.89, 78a.91—78a.98, 78a.101—78a.105, 78a.111, 78a.121—78a.124, 78a.301—78a.308 and 78a.310—78a.314 to read as set forth in Annex A.

 (Editor's Note: The provisions added in the new Chapter 78a were initially proposed as amendments to Chapter 78 in the proposed rulemaking published at 43 Pa.B. 7377. In response to comments and Act 126, the pre-Act 52 final-form rulemaking was separated into two chapters. The proposed rescission of §§ 78.2 and 78.309, proposed addition of §§ 78.52a, 78.59a, 78.59b, 78.59c, 78.64a, 78.67, 78.68, 78.68a, 78.68b, 78.69, 78.70 and 78.70a and proposed amendments to §§ 78.13, 78.15, 78.17, 78.18, 78.21, 78.25, 78.28, 78.51—78.53, 78.56—78.58, 78.60—78.66, 78.73, 78.75, 78.76, 78.87, 78.91, 78.101, 78.103, 78.105, 78.122, 78.123, 78.301, 78.302, 78.306, 78.308, 78.310 and 78.402—78.404 have been withdrawn by the Board.)

 (b) The Chairperson of the Board shall submit this order and Annex A to the Office of General Counsel and the Office of Attorney General for review and approval as to legality and form, as required by law.

 (c) The Chairperson of the Board shall submit this order and Annex A to IRRC and the House and Senate Environmental Resources and Energy Committees as required by the Regulatory Review Act.

 (d) The Chairperson of the Board shall certify this order and Annex A and deposit them with the Bureau as required by law.

 (e) This order shall take effect immediately upon publication in the Pennsylvania Bulletin.

PATRICK McDONNELL, 
Acting Chairperson

 (Editor's Note: See 46 Pa.B. 6392 (October 8, 2016) for a notice relating to this final-form rulemaking.)

 (Editor's Note: See 46 Pa.B. 2384 (May 7, 2016) for IRRC's approval order.)

 Fiscal Note: Fiscal Note 7-484 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 A. GENERAL PROVISIONS

§ 78.1. Definitions.

 The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise, or as otherwise provided in this chapter:

 Act—The Oil and Gas Act (58 P.S. §§ 601.101—601.605).

 Attainable bottom—The depth, approved by the Department, which can be achieved after a reasonable effort is expended to clean out to the total depth.

 Casing seat—The depth to which casing is set.

 Cement—A mixture of materials for bonding or sealing that attains a 7-day maximum permeability of 0.01 millidarcies and a 24-hour compressive strength of at least 500 psi in accordance with applicable standards and specifications.

 Cement job log—A written record that documents the actual procedures and specifications of the cementing operation.

 Certified laboratory—A laboratory accredited by the Department under Chapter 252 (relating to environmental laboratory accreditation).

 Coal area—An area that is underlain by a workable coal seam.

 Coal protective casing—A string of pipe which is installed in the well for the purpose of coal segregation and protection. In some instances the coal protective casing and the surface casing may be the same.

 Conductor pipe—A short string of large-diameter casing used to stabilize the top of the wellbore in shallow unconsolidated formations.

 Conventional formation—A formation that is not an unconventional formation.

 Conventional well—

 (i) A bore hole drilled or being drilled for the purpose of or to be used for construction of a well regulated under 58 Pa.C.S. §§ 3201—3274 (relating to development) that is not an unconventional well, irrespective of technology or design.

 (ii) The term includes, but is not limited to:

 (A) Wells drilled to produce oil.

 (B) Wells drilled to produce natural gas from formations other than shale formations.

 (C) Wells drilled to produce natural gas from shale formations located above the base of the Elk Group or its stratigraphic equivalent.

 (D) Wells drilled to produce natural gas from shale formations located below the base of the Elk Group where natural gas can be produced at economic flow rates or in economic volumes without the use of vertical or nonvertical well bores stimulated by hydraulic fracture treatments or multilateral well bores or other techniques to expose more of the formation to the well bore.

 (E) Irrespective of formation, wells drilled for collateral purposes, such as monitoring, geologic logging, secondary and tertiary recovery or disposal injection.

 Deepest fresh groundwater—The deepest fresh groundwater bearing formation penetrated by the wellbore as determined from drillers logs from the well or from other wells in the area surrounding the well or from historical records of the normal surface casing seat depths in the area surrounding the well, whichever is deeper.

 Drill cuttings—Rock cuttings and related mineral residues generated during the drilling of an oil or gas well.

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

 Gas storage field—A gas storage reservoir and all of the gas storage wells connected to the gas storage reservoir.

 Gas storage reservoir—The portion of a subsurface geologic formation or rock strata used for or being tested for storage of natural gas that:

 (i) Has sufficient porosity and permeability to allow gas to be injected or withdrawn, or both.

 (ii) Is bounded by strata of insufficient porosity or permeability, or both, to allow gas movement out of the reservoir.

 (iii) Contains or will contain injected gas geologically or by pressure control.

 Gas storage well—A well located and used in a gas storage reservoir for injection or withdrawal purposes, or an observation well.

 Gel—A slurry of clay or other equivalent material and water at a ratio of not more than 7 barrels of water to each 100 pounds of clay or other equivalent matter.

 Intermediate casing—A string of casing set after the surface casing and before production casing, not to include coal protection casing, that is used in the wellbore to isolate, stabilize or provide well control.

 L.E.L.—Lower explosive limit.

 Noncementing material—A mixture of very fine to coarse grained nonbonding materials, including unwashed crushed rock, drill cuttings, earthen mud or other equivalent material approved by the Department.

 Noncoal area—An area that is not underlain by a workable coal seam.

 Nonporous material—Nontoxic earthen mud, drill cuttings, fire clay, gel, cement or equivalent materials approved by the Department that will equally retard the movement of fluids.

 Observation well—A well used to monitor the operational integrity and conditions in a gas storage reservoir, the reservoir protective area or strata above or below the gas storage horizon.

 Owner—A person who owns, manages, leases, controls or possesses a well or coal property. For purposes of sections 203(a)(4) and (5) and 210 of the act (58 P.S. §§ 601.203(a)(4) and (5) and 601.210), the term does not include those owners or possessors of surface real property on which the abandoned well is located who did not participate or incur costs in the drilling or extraction operation of the abandoned well and had no right of control over the drilling or extraction operation of the abandoned well. The term does not apply to orphan wells except where the Department determines a prior owner or operator benefited from the well as provided in section 210(a) of the act.

 Perimeter area—An area that begins at the outside coal boundaries of an operating coal mine and extends within 1,000 feet beyond those boundaries or an area within 1,000 feet beyond the mine permit boundaries of a coal mine already projected and permitted but not yet being operated.

 Permanently cemented—Surface casing or coal protective casing that is cemented until cement is circulated to the surface or is cemented with a calculated volume of cement necessary to fill the theoretical annular space plus 20% excess.

 Private water supply—A water supply that is not a public water supply.

 Production casing—A string of pipe other than surface casing and coal protective casing which is run for the purpose of confining or conducting hydrocarbons and associated fluids from one or more producing horizons to the surface.

 Public water supply—A water system that is subject to the Pennsylvania Safe Drinking Water Act (35 P.S. §§ 721.1—721.17).

 Reportable release of brine—Spilling, leaking, emitting, discharging, escaping or disposing of one of the following:

 (i) More than 5 gallons of brine within a 24-hour period on or into the ground at the well site where the total dissolved solids concentration of the brine is equal or greater than 10,000 mg/l.

 (ii) More than 15 gallons of brine within a 24-hour period on or into the ground at the well site where the total dissolved solids concentration of the brine is less than 10,000 mg/l.

 Retrievable—When used in conjunction with surface casing, coal protective casing or production casing, the casing that can be removed after exerting a prudent effort to pull the casing while applying a pulling force at least equal to the casing weight plus 5,000 pounds or 120% of the casing weight, whichever is greater.

 Seasonal high groundwater table—The saturated condition in the soil profile during certain periods of the year. The condition can be caused by a slowly permeable layer within the soil profile and is commonly indicated by the presence of soil mottling.

 Sheen—An iridescent appearance on the surface of the water.

 Soil mottling—Irregular marked spots in the soil profile that vary in color, size and number.

 Surface casing—A string or strings of casing used to isolate the wellbore from fresh groundwater and to prevent the escape or migration of gas, oil or other fluids from the wellbore into fresh groundwater. The surface casing is also commonly referred to as the water string or water casing.

 Tophole water—Water that is brought to the surface while drilling through the strata containing fresh groundwater and water that is fresh groundwater or water that is from a body of surface water. Tophole water may contain drill cuttings typical of the formation being penetrated but may not be polluted or contaminated by additives, brine, oil or man induced conditions.

 Total depth—The depth to which the well was originally drilled, subsequently drilled or the depth to which it was plugged back in a manner approved by the Department.

 Tour—A workshift in drilling of a well.

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

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

 Water protection depth—The depth to a point 50 feet below the surface casing seat.

 Water purveyor—The owner or operator of a public water supply.

 Water supply—A supply of water for human consumption or use, or for agricultural, commercial, industrial or other legitimate beneficial uses.

 Well operator or operator—The person designated as the well operator or operator on the permit application or well registration. If a permit or registration was not issued, the term means a person who locates, drills, operates, alters or plugs a well or reconditions a well with the purpose of production therefrom. In cases where a well is used in connection with the underground storage of gas, the term also means a storage operator.

 Well site—The area occupied by the equipment or facilities necessary for or incidental to the drilling, production or plugging of a well.

 Workable coal seam—One of the following:

 (i) A coal seam in fact being mined in the area in question under the act and this chapter by underground methods.

 (ii) A coal seam which, in the judgment of the Department, reasonably can be expected to be mined by underground methods.

Subchapter B. PERMITS, TRANSFERS AND OBJECTIONS

PERMITS AND TRANSFERS

§ 78.19. Permit application fee schedule.

 (a) An applicant shall pay a permit application fee according to the following schedule:

Conventional Wells
Total Well Bore Length in Feet	Total Fee
0 to 2,000	$250
2,001 to 2,500	$300
2,501 to 3,000	$350
3,001 to 3,500	$400
3,501 to 4,000	$450
4,001 to 4,500	$500
4,501 to 5,000	$550
5,001 to 5,500	$650
5,501 to 6,000	$750
6,001 to 6,500	$850
6,501 to 7,000	$950
7,001 to 7,500	$1,050
7,501 to 8,000	$1,150
8,001 to 8,500	$1,250
8,501 to 9,000	$1,350
9,001 to 9,500	$1,450
9,501 to 10,000	$1,550
10,001 to 10,500	$1,650
10,501 to 11,000	$1,750
11,001 to 11,500	$1,850
11,501 to 12,000	$1,950

 (b) An applicant for a conventional well exceeding 12,000 feet in total well bore length shall pay a permit application fee of $1,950 + $100 for every 500 feet the well bore extends over 12,000 feet. Fees shall be rounded to the nearest 500-foot interval under this subsection.

 (c) If, when drilled, the total well bore length of the conventional well exceeds the length specified in the permit application due to target formation being deeper than anticipated at the time of application submittal, the operator shall pay the difference between the amount paid as part of the permit application and the amount required under subsections (a) and (b).

 (d) An applicant for a conventional well with a well bore length of 1,500 feet or less for home use shall pay a permit application fee of $200.

 (e) At least every 3 years, the Department will provide the EQB with an evaluation of the fees in this chapter and recommend regulatory changes to the EQB to address any disparity between the program income generated by the fees and the Department's cost of administering the program with the objective of ensuring fees meet all program costs and programs are self-sustaining.

Subchapter C. ENVIRONMENTAL PROTECTION PERFORMANCE STANDARDS

§ 78.55. Control and disposal planning.

 (a) Preparation and implementation of plan. Prior to generation of waste, the well operator shall prepare and implement a plan under § 91.34 (relating to activities utilizing pollutants) for the control and disposal of fluids, residual waste and drill cuttings, including tophole water, brines, drilling fluids, additives, drilling muds, stimulation fluids, well servicing fluids, oil, production fluids and drill cuttings from the drilling, alteration, production, plugging or other activity associated with oil and gas wells.

 (b) Requirements. The plan must identify the control and disposal methods and practices utilized by the well operator and be consistent with the act, The Clean Streams Law (35 P.S. §§ 691.1—691.1001), the Solid Waste Management Act (35 P.S. §§ 6018.101—6018.1003) and §§ 78.54, 78.56—78.58 and 78.60—78.63. The plan must also include a pressure barrier policy that identifies barriers to be used during identified operations.

 (c) Revisions. The operator shall revise the plan prior to implementing a change to the practices identified in the plan.

 (d) Copies. A copy of the plan shall be provided to the Department upon request and shall be available at the site during drilling and completion activities for review.

 (e) Emergency contacts. A list of emergency contact phone numbers for the area in which the well site is located must be included in the plan and be prominently displayed at the well site during drilling, completion or alteration activities.

Subchapter D. WELL DRILLING, OPERATION AND PLUGGING

GENERAL

§ 78.72. Use of safety devices—blow-out prevention equipment.

 (a) The operator shall use blow-out prevention equipment after setting casing with a competent casing seat in the following circumstances:

 (1) When drilling out solid core hydraulic fracturing plugs to complete a well.

 (2) When well head pressures or natural open flows are anticipated at the well site that may result in a loss of well control.

 (3) When the operator is drilling in an area where there is no prior knowledge of the pressures or natural open flows to be encountered.

 (4) On wells regulated by the Oil and Gas Conservation Law (58 P.S. §§ 401—419).

 (5) When drilling within 200 feet of a building.

 (b) Blow-out prevention equipment used must be in good working condition at all times.

 (c) Controls for the blow-out preventer shall be accessible to allow actuation of the equipment. Additional controls for a blow-out preventer with a pressure rating of greater than 3,000 psi, not associated with the rig hydraulic system, shall be located at least 50 feet away from the drilling rig so that the blow-out preventer can be actuated if control of the well is lost.

 (d) The operator shall use pipe fittings, valves and unions placed on or connected to the blow-out prevention systems that have a working pressure capability that exceeds the anticipated pressures.

 (e) The operator shall conduct a complete test of the ram type blow-out preventer and related equipment for both pressure and ram operation before placing it in service on the well. The operator shall test the annular type blow-out preventer in accordance with the manufacturer's published instructions, or the instructions of a professional engineer, prior to the device being placed in service. Blow-out prevention equipment that fails the test may not be used until it is repaired and passes the test.

 (f) When the equipment is in service, the operator shall visually inspect blow-out prevention equipment during each tour of drilling operation and during actual drilling operations test the pipe rams for closure daily and the blind rams for closure on each round trip. When more than one round trip is made in a day, one daily closure test for blind rams is sufficient. Testing shall be conducted in accordance with American Petroleum Institute publication API RP53, ''API Recommended Practice for Blowout Prevention Equipment Systems for Drilling Wells,'' or other procedure approved by the Department. The operator shall record the results of the inspection and closure test in the drillers log before the end of the tour. If blow-out prevention equipment is not in good working order, drilling shall cease when cessation of drilling can be accomplished safely and not resume until the blow-out prevention equipment is repaired or replaced and retested.

 (g) All lines, valves and fittings between the closing unit and the blow-out preventer stack must be flame resistant and have a rated working pressure that meets or exceeds the requirements of the blow-out preventer system.

 (h) When a blowout preventer is installed or required under subsection (a), there shall be present on the well site an individual with a current certification from a well control course accredited by the International Association of Drilling Contractors or other organization approved by the Department. The certification shall be available for review at the well site. The Department will maintain a list of approved accrediting organizations on its web site.

 (i) Well drilling and completion operations requiring pressure barriers, as identified by the operator under § 78.55(b) (relating to control and disposal plan), shall employ at least two mechanical pressure barriers between the open producing formation and the atmosphere that are capable of being tested. The mechanical pressure barriers shall be tested according to manufacturer specifications prior to operation. If during the course of operations the operator only has one functioning barrier, operations must cease until additional barriers are added and tested or the redundant barrier is repaired and tested. Stripper rubber or a stripper head may not be considered a barrier.

 (j) The minimum amount of intermediate casing that is cemented to the surface to which blow-out prevention equipment may be attached, shall be in accordance with the following:

Proposed Total Vertical Depth (in feet)	Minimum Cemented Casing Required (in feet of casing cemented)
Up to 5,000	400
5,001 to 5,500	500
5,501 to 6,000	600
6,001 to 6,500	700
6,501 to 7,000	800
7,001 to 8,000	1,000
8,001 to 9,000	1,200
9,001 to 10,000	1,400
Deeper than 10,000	1,800

 (k) Upon completion of the drilling operations at a well, the operator shall install and utilize equipment, such as a shut-off valve of sufficient rating to contain anticipated pressure, lubricator or similar device, as may be necessary to enable the well to be effectively shut-in while logging and servicing the well and after completion of the well.

Subchapter E. WELL REPORTING

§ 78.121. Production reporting.

 (a) The well operator shall submit an annual production and status report for each permitted or registered well on an individual basis, on or before February 15 of each year. When the production data is not available to the operator on a well basis, the operator shall report production on the most well-specific basis available. The annual production report must include information on the amount and type of waste produced and the method of waste disposal or reuse. Waste information submitted to the Department in accordance with this subsection is deemed to satisfy the residual waste biennial reporting requirements of § 287.52 (relating to biennial report).

 (b) The production report shall be submitted electronically to the Department through its web site.

CHAPTER 78a. UNCONVENTIONAL WELLS

Subch.

A.	GENERAL PROVISIONS
B.	PERMITS, TRANSFERS AND OBJECTIONS
C.	ENVIRONMENTAL PROTECTION PERFORMANCE STANDARDS
D.	WELL DRILLING, OPERATION AND PLUGGING
E.	WELL REPORTING
G.	BONDING REQUIREMENTS

Subchapter A. GENERAL PROVISIONS

Sec.

78a.1.	Definitions.
78a.2.	Applicability.

§ 78a.1. Definitions.

 The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise, or as otherwise provided in this chapter:

 ABACT—Antidegradation best available combination of technologies—The term as defined in § 102.1 (relating to definitions).

 Abandoned water well—

 (i) A water well that is no longer equipped in such a manner as to be able to draw groundwater.

 (ii) The term includes a water well where the pump, piping or electrical components have been disconnected or removed or when its use on a regular or prescribed basis has been discontinued.

 (iii) The term does not include a water well that is not currently used, but is equipped or otherwise properly maintained in such a manner as to be able to draw groundwater as an alternative, backup or supplemental water supply.

 Accredited laboratory—A laboratory accredited by the Department under Chapter 252 (relating to environmental laboratory accreditation).

 Act—58 Pa.C.S. §§ 3201—3274 (relating to development).

 Act 2—The Land Recycling and Environmental Remediation Standards Act (35 P.S. §§ 6026.101—6026.908).

 Anti-icing—Brine applied directly to a paved road prior to a precipitation event.

 Approximate original conditions—Reclamation of the land affected to preconstruction contours so that it closely resembles the general surface configuration of the land prior to construction activities and blends into and complements the drainage pattern of the surrounding terrain, and can support the land uses that existed prior to the applicable oil and gas operations to the extent practicable.

 Attainable bottom—The depth, approved by the Department, which can be achieved after a reasonable effort is expended to clean out to the total depth.

 Barrel—A unit of volume equal to 42 US liquid gallons.

 Body of water—The term as defined in § 105.1 (relating to definitions).

 Borrow pit—An area of earth disturbance activity where rock, stone, gravel, sand, soil or similar material is excavated for construction of well sites, access roads or facilities that are related to oil and gas development.

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

 Casing seat—The depth to which casing is set.

 Cement—A mixture of materials for bonding or sealing that attains a 7-day maximum permeability of 0.01 millidarcies and a 24-hour compressive strength of at least 500 psi in accordance with applicable standards and specifications.

 Cement job log—A written record that documents the actual procedures and specifications of the cementing operation.

 Centralized impoundment—A facility authorized by a Permit for a Centralized Impoundment Dam for Oil and Gas Operations (DEP # 8000-PM-OOGM0084).

 Certified mail—Any verifiable means of paper document delivery that confirms the receipt of the document by the intended recipient or the attempt to deliver the document to the proper address for the intended recipient.

 Coal area—An area that is underlain by a workable coal seam.

 Coal protective casing—A string of pipe which is installed in the well for the purpose of coal segregation and protection. In some instances the coal protective casing and the surface casing may be the same.

 Common areas of a school's property—An area on a school's property accessible to the general public for recreational purposes. For the purposes of this definition, a school is a facility providing elementary, secondary or postsecondary educational services.

 Condensate—A low-density, high-API gravity liquid hydrocarbon phase that generally occurs in association with natural gas. For the purposes of this definition, high-API gravity is a specific gravity scale developed by the American Petroleum Institute for measuring the relative density of various petroleum liquids, expressed in degrees.

 Conductor pipe—A short string of large-diameter casing used to stabilize the top of the wellbore in shallow unconsolidated formations.

 Deepest fresh groundwater—The deepest fresh groundwater bearing formation penetrated by the wellbore as determined from drillers logs from the well or from other wells in the area surrounding the well or from historical records of the normal surface casing seat depths in the area surrounding the well, whichever is deeper.

 De-icing—Brine applied to a paved road after a precipitation event.

 Drill cuttings—Rock cuttings and related mineral residues generated during the drilling of an oil or gas well.

 Floodplain—The area inundated by the 100-year flood as identified on maps and flood insurance studies provided by the Federal Emergency Management Agency, or in the absence of these maps or studies or any evidence to the contrary, the area within 100 feet measured horizontally from the top of the bank of a perennial stream or 50 feet from the top of the bank of an intermittent stream.

 Freeboard—The vertical distance between the surface of an impounded or contained fluid and the lowest point or opening on a lined pit edge or open top storage structure.

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

 Gas storage field—A gas storage reservoir and all of the gas storage wells connected to the gas storage reservoir.

 Gas storage reservoir—The portion of a subsurface geologic formation or rock strata used for or being tested for storage of natural gas that:

 (i) Has sufficient porosity and permeability to allow gas to be injected or withdrawn, or both.

 (ii) Is bounded by strata of insufficient porosity or permeability, or both, to allow gas movement out of the reservoir.

 (iii) Contains or will contain injected gas geologically or by pressure control.

 Gas storage well—A well located and used in a gas storage reservoir for injection or withdrawal purposes, or an observation well.

 Gathering pipeline—A pipeline that transports oil, liquid hydrocarbons or natural gas from individual wells to an intrastate transmission pipeline regulated by the Pennsylvania Public Utility Commission or interstate transmission pipeline regulated by the Federal Energy Regulatory Commission.

 Gel—A slurry of clay or other equivalent material and water at a ratio of not more than seven barrels of water to each 100 pounds of clay or other equivalent matter.

 Inactive well—A well granted inactive status by the Department under section 3214 of the act (relating to inactive status) and § 78a.101 (relating to general provisions).

 Intermediate casing—A string of casing set after the surface casing and before production casing, not to include coal protection casing, that is used in the wellbore to isolate, stabilize or provide well control.

 L.E.L.—Lower explosive limit.

 Limit of disturbance—The boundary within which it is anticipated that earth disturbance activities (including installation of best management practices) will take place.

 Mine influenced water—Any of the following:

 (i) Water in a mine pool.

 (ii) Surface discharge of water caused by mining activities that pollutes or may create a threat of pollution to waters of the Commonwealth.

 (iii) A surface water polluted by mine pool water.

 (iv) A surface discharge caused by mining activities.

 Modular aboveground storage structure—An aboveground structure used to store wastewater that requires final assembly at a well site to function and which can be disassembled and moved to another well site after use.

 Noncementing material—A mixture of very fine to coarse grained nonbonding materials, including unwashed crushed rock, drill cuttings, earthen mud or other equivalent material approved by the Department.

 Noncoal area—An area that is not underlain by a workable coal seam.

 Nonporous material—Nontoxic earthen mud, drill cuttings, fire clay, gel, cement or equivalent materials approved by the Department that will equally retard the movement of fluids.

 Nonvertical unconventional well—

 (i) An unconventional well drilled intentionally to deviate from a vertical axis.

 (ii) The term includes wells drilled diagonally and wells that have horizontal bore holes.

 Observation well—A well used to monitor the operational integrity and conditions in a gas storage reservoir, the reservoir protective area, or strata above or below the gas storage horizon.

 Oil and gas operations—The term includes the following:

 (i) Well site preparation, construction, drilling, hydraulic fracturing, completion, production, operation, alteration, plugging and site restoration associated with an oil or gas well.

 (ii) Water withdrawals, residual waste processing, water and other fluid management and storage used exclusively for the development of oil and gas wells.

 (iii) Construction, installation, use, maintenance and repair of:

 (A) Oil and gas well development, gathering and transmission pipelines.

 (B) Natural gas compressor stations.

 (C) Natural gas processing plants or facilities performing equivalent functions.

 (iv) Construction, installation, use, maintenance and repair of all equipment directly associated with activities in subparagraphs (i)—(iii) to the extent that the equipment is necessarily located at or immediately adjacent to a well site, impoundment area, oil and gas pipeline, natural gas compressor station or natural gas processing plant.

 (v) Earth disturbance associated with oil and gas exploration, production, processing, or treatment operations or transmission facilities.

 Other critical communities—

 (i) Species of special concern identified on a PNDI receipt, including plant or animal species:

 (A) In a proposed status categorized as proposed endangered, proposed threatened, proposed rare or candidate.

 (B) That are classified as rare or tentatively undetermined.

 (ii) The term does not include threatened and endangered species.

 Owner—

 (i) A person who owns, manages, leases, controls or possesses a well or coal property.

 (ii) The term does not apply to orphan wells, except when the Department determines a prior owner or operator benefited from the well as provided in section 3220(a) of the act (relating to plugging requirements).

 PCSM—Post-construction stormwater management—The term as defined in § 102.1.

 PCSM plan—The term as defined in § 102.1.

 PNDI—Pennsylvania Natural Diversity Inventory—The Pennsylvania Natural Heritage Program's database containing data identifying and describing this Commonwealth's ecological information, including plant and animal species classified as threatened and endangered as well as other critical communities provided by the Department of Conservation and Natural Resources, the Fish and Boat Commission, the Game Commission and the United States Fish and Wildlife Service. The database informs the online environmental review tool. The database contains only those known occurrences of threatened and endangered species and other critical communities, and is a component of the Pennsylvania Conservation Explorer.

 PNDI receipt—The results generated by the Pennsylvania Natural Diversity Inventory Environmental Review Tool containing information regarding threatened and endangered species and other critical communities.

 PPC plan—Preparedness, Prevention and Contingency plan—A written preparedness, prevention and contingency plan.

 Perimeter area—An area that begins at the outside coal boundaries of an operating coal mine and extends within 1,000 feet beyond those boundaries or an area within 1,000 feet beyond the mine permit boundaries of a coal mine already projected and permitted but not yet being operated.

 Permanently cemented—Surface casing or coal protective casing that is cemented until cement is circulated to the surface or is cemented with a calculated volume of cement necessary to fill the theoretical annular space plus 20% excess.

 Pit—A natural topographic depression, manmade excavation or diked area formed primarily of earthen materials designed to hold fluids, semifluids or solids.

 Playground—

 (i) An outdoor area provided to the general public for recreational purposes.

 (ii) The term includes community-operated recreational facilities.

 Pre-wetting—Mixing brine with antiskid material prior to roadway application.

 Primary containment—A pit, tank, vessel, modular aboveground storage structure, temporary storage facility or other equipment designed to hold regulated substances including all piping and other appurtenant facilities located on the well site.

 Private water supply—A water supply that is not a public water supply.

 Process or processing—The term has the same meaning as ''processing'' as defined in section 103 of the Solid Waste Management Act (35 P.S. § 6018.103).

 Production casing—A string of pipe other than surface casing and coal protective casing which is run for the purpose of confining or conducting hydrocarbons and associated fluids from one or more producing horizons to the surface.

 Public resource agency—An entity responsible for managing a public resource identified in § 78a.15(d) or (f)(1) (relating to application requirements) including the Department of Conservation and Natural Resources, the Fish and Boat Commission, the Game Commission, the United States Fish and Wildlife Service, the United States National Park Service, the United States Army Corps of Engineers, the United States Forest Service, counties, municipalities and playground owners.

 Public water supply—A source of water used by a water purveyor.

 Regional groundwater table—

 (i) The fluctuating upper water level surface of an unconfined or confined aquifer where the hydrostatic pressure is equal to the ambient atmospheric pressure.

 (ii) The term does not include the perched water table or the seasonal high groundwater table.

 Regulated substance—The term as defined in section 103 of Act 2 (35 P.S. § 6026.103).

 Residual waste—The term as defined in § 287.1 (relating to definitions).

 Retrievable—When used in conjunction with surface casing, coal protective casing or production casing, the casing that can be removed after exerting a prudent effort to pull the casing while applying a pulling force at least equal to the casing weight plus 5,000 pounds or 120% of the casing weight, whichever is greater.

 Seasonal high groundwater table—The saturated condition in the soil profile during certain periods of the year. The condition can be caused by a slowly permeable layer within the soil profile and is commonly indicated by the presence of soil mottling.

 Secondary containment—A physical barrier specifically designed to minimize releases into the environment of regulated substances from primary containment or well development pipelines, to prevent comingling of incompatible released regulated substances and to minimize the area of potential contamination, to the extent practicable.

 Sheen—An iridescent appearance on the surface of the water.

 Soil mottling—Irregular marked spots in the soil profile that vary in color, size and number.

 Stormwater—Runoff from precipitation, snowmelt, surface runoff and drainage.

 Surface casing—A string or strings of casing used to isolate the wellbore from fresh groundwater and to prevent the escape or migration of gas, oil or other fluids from the wellbore into fresh groundwater. The surface casing is also commonly referred to as the water string or water casing.

 Threatened or endangered species—Those animal and plant species identified as a threatened or endangered species as determined under the Endangered Species Act of 1973 (16 U.S.C.A. §§ 1531—1544), the Wild Resource Conservation Act (32 P.S. §§ 5301—5314), 30 Pa.C.S. (relating to Fish and Boat Code) and 34 Pa.C.S. (relating to Game and Wildlife Code).

 Tophole water—Water that is brought to the surface while drilling through the strata containing fresh groundwater and water that is fresh groundwater or water that is from a body of surface water. Tophole water may contain drill cuttings typical of the formation being penetrated but may not be polluted or contaminated by additives, brine, oil or man-induced conditions.

 Total depth—The depth to which the well was originally drilled, subsequently drilled or the depth to which it was plugged back in a manner approved by the Department.

 Tour—A workshift in drilling of a well.

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

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

 Vertical unconventional well—An unconventional well with a single vertical well bore.

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

 Water protection depth—The depth to a point 50 feet below the surface casing seat.

 Water purveyor—Either of the following:

 (i) The owner or operator of a public water system as defined in section 3 of the Pennsylvania Safe Drinking Water Act (35 P.S. § 721.3).

 (ii) Any person subject to the act of June 24, 1939 (P.L. 842, No. 365) (32 P.S. §§ 631—641), known as the Water Rights Law.

 Water source—

 (i) Any of the following:

 (A) Waters of the Commonwealth.

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

 (C) Mine pools and discharges.

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

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

 (A) Which are used for drilling or completing a well in an unconventional formation.

 (B) Which do not discharge into waters of the Commonwealth.

 Water supply—A supply of water for human consumption or use, or for agricultural, commercial, industrial or other legitimate beneficial uses.

 Watercourse—The term as defined in § 105.1.

 Waters of the Commonwealth—The term as defined in section 1 of The Clean Streams Law (35 P.S. § 691.1).

 Well development impoundment—A facility that is:

 (i) Not regulated under § 105.3 (relating to scope).

 (ii) A natural topographic depression, manmade excavation or diked area formed primarily of earthen materials although lined with synthetic materials.

 (iii) Designed to hold surface water, fresh groundwater and other fluids approved by the Department.

 (iv) Constructed for the purpose of servicing multiple well sites.

 Well development pipelines—Pipelines used for oil and gas operations that:

 (i) Transport materials used for the drilling or hydraulic fracture stimulation, or both, of a well and the residual waste generated as a result of the activities.

 (ii) Lose functionality after the well site it serviced has been restored under § 78a.65 (related to site restoration).

 Well operator or operator—Any of the following:

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

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

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

 Well site—The area occupied by the equipment or facilities necessary for or incidental to the drilling, production or plugging of a well.

 Wellhead protection area—The term as defined in § 109.1 (relating to definitions).

 Wetland—The term as defined in § 105.1.

 Workable coal seam—Either of the following:

 (i) A coal seam in fact being mined in the area in question under the act and this chapter by underground methods.

 (ii) A coal seam which, in the judgment of the Department, reasonably can be expected to be mined by underground methods.

§ 78a.2. Applicability.

 This chapter applies to unconventional wells and supersedes any regulations in Chapter 78 (relating to oil and gas wells) applicable to unconventional wells.

Subchapter B. PERMITS, TRANSFERS AND OBJECTIONS

PERMITS AND TRANSFERS

Sec.

78a.11.	Permit requirements.
78a.12.	Compliance with permit.
78a.13.	Permit transfers.
78a.14.	Transfer of well ownership or change of address.
78a.15.	Application requirements.
78a.16.	Accelerated permit review.
78a.17.	Permit expiration and renewal.
78a.18.	Disposal and enhanced recovery well permits.
78a.19.	Permit application fee schedule.

OBJECTIONS

78a.21.	Opportunity for objections and conferences; surface landowners.
78a.22.	Objections by owner or operator of coal mine.
78a.23.	Time for filing objections by owner or operator of coal mine.
78a.24.	Information to be provided with objections by owner or operator of coal mine.
78a.25.	Conferences—general.
78a.26.	Agreement at conference.
78a.27.	Continuation of conference.
78a.28.	Final action if objections do not proceed to panel.
78a.29.	Composition of panel.
78a.30.	Jurisdiction of panel.
78a.31.	Scheduling of meeting by the panel.
78a.32.	Recommendation by the panel.
78a.33.	Effect of panel on time for permit issuance.

PERMITS AND TRANSFERS

§ 78a.11. Permit requirements.

 (a) No person may drill or alter a well unless that person has first obtained a permit from the Department.

 (b) No person may operate a well unless one of the following conditions has been met:

 (1) The person has obtained a permit under the act.

 (2) The person has registered the well under the act.

 (3) The well was in operation on April 18, 1985, under a permit that was obtained under the Gas Operations Well-Drilling Petroleum and Coal Mining Act (52 P.S. §§ 2104, 2208, 2601 and 2602) (Repealed).

§ 78a.12. Compliance with permit.

 A person may not drill, alter or operate a well except in accordance with a permit or registration issued under the act and in compliance with the terms and conditions of the permit, this chapter and the statutes under which it was promulgated. A copy of the permit shall be kept at the well site during drilling or alteration of a well.

§ 78a.13. Permit transfers.

 (a) No transfer, assignment or sale of rights granted under a permit or registration may be made without prior written approval of the Department. Permit transfers may be denied for the reasons set forth in section 3211(e.1)(4) and (5) of the act (relating to well permits).

 (b) The Department may require the transferee to fulfill the drilling, plugging, well site restoration, water supply replacement and other requirements of the act, regardless of whether the transferor started the activity and regardless of whether the transferor failed to properly perform the transferor's obligations under the act.

§ 78a.14. Transfer of well ownership or change of address.

 (a) Within 30 days after the sale, assignment, transfer, conveyance or exchange of a well, the new owner or operator shall notify the Department, in writing, of the transfer of ownership.

 (b) The notice must include the following information:

 (1) The names, addresses and telephone numbers of the former and new owner, and the agent if applicable.

 (2) The well permit or registration number.

 (3) The effective date of the transfer of ownership.

 (4) An application for a well permit transfer if there is a change in the well operator.

 (c) The permittee shall notify the Department of a change in address or name within 30 days of the change.

§ 78a.15. Application requirements.

 (a) An application for a well permit shall be submitted electronically to the Department on forms provided through its web site and contain the information required by the Department to evaluate the application.

 (b) The permit application will not be considered complete until the applicant submits a complete and accurate plat, an approvable bond or other means of complying with Subchapter G (relating to bonding requirements) and section 3225 of the act (relating to bonding), the fee in compliance with § 78a.19 (relating to permit application fee schedule), proof of the notifications required under section 3211(b.1) of the act (relating to well permits), necessary requests for variance or waivers or other documents required to be furnished by law or the Department and the information in subsections (b.1), (b.2), (c)—(f) and (h). The person named in the permit shall be the same person named in the bond or other security.

 (b.1) If the proposed limit of disturbance of the well site is within 100 feet measured horizontally from any watercourse or any high quality or exceptional value body of water or any wetland 1 acre or greater in size, the applicant shall demonstrate that the well site location will protect those watercourses or bodies of water. The applicant may rely upon other plans developed under this chapter or approved by the Department to make this demonstration, including:

 (1) An erosion and sediment control plan or permit consistent with Chapter 102 (relating to erosion and sediment control).

 (2) A water obstruction and encroachment permit issued under Chapter 105 (relating to dam safety and waterway management).

 (3) Applicable portions of the PPC plan prepared in accordance with § 78a.55(a) and (b) (relating to control and disposal planning; emergency response for unconventional wells).

 (4) Applicable portions of the emergency response plan prepared in accordance with § 78a.55(i).

 (5) Applicable portions of the site containment plan prepared in accordance with section 3218.2 of the act (relating to containment for unconventional wells).

 (b.2) For purposes of compliance with section 3215(a) of the act (relating to well location restrictions), an abandoned water well does not constitute a water well.

 (c) The applicant shall submit information identifying parent and subsidiary business corporations operating in this Commonwealth with the first application submitted after October 8, 2016, and provide any changes to this information with each subsequent application.

 (d) The well permit application must include a detailed analysis of the impact of the well, well site and access road on threatened and endangered species. This analysis must include:

 (1) A PNDI receipt.

 (2) If any potential impact is identified in the PNDI receipt to threatened or endangered species, demonstration of how the impact will be avoided or minimized and mitigated in accordance with State and Federal laws pertaining to the protection of threatened or endangered species and critical habitat. The applicant shall provide written documentation to the Department supporting this demonstration, including any avoidance/mitigation plan, clearance letter, determination or other correspondence resolving the potential species impact with the applicable public resource agency.

 (e) If an applicant seeks to locate a well on an existing well site where the applicant has obtained a permit under § 102.5 (relating to permit requirements) and complied with § 102.6(a)(2) (relating to permit applications and fees), the applicant may comply with subsections (b.1) and (d) if the permit was obtained within 2 years from the receipt of the application submitted under this section.

 (f) An applicant proposing to drill a well at a location that may impact a public resource as provided in paragraph (1) shall notify the applicable public resource agency, if any, in accordance with paragraph (2). The applicant shall also provide the information in paragraph (3) to the Department in the well permit application.

 (1) This subsection applies if the proposed limit of disturbance of the well site is located:

 (i) In or within 200 feet of a publicly owned park, forest, game land or wildlife area.

 (ii) In or within the corridor of a State or National scenic river.

 (iii) Within 200 feet of a National natural landmark.

 (iv) In a location that will impact other critical communities.

 (v) Within 200 feet of a historical or archeological site listed on the Federal or State list of historic places.

 (vi) Within 200 feet of common areas on a school's property or a playground.

 (vii) Within zones 1 or 2 of a wellhead protection area as part of a wellhead protection program approved under § 109.713 (relating to wellhead protection program).

 (viii) Within 1,000 feet of a water well, surface water intake, reservoir or other water supply extraction point used by a water purveyor.

 (2) The applicant shall notify the public resource agency responsible for managing the public resource identified in paragraph (1), if any. The applicant shall forward by certified mail a copy of the plat identifying the proposed limit of disturbance of the well site and information in paragraph (3) to the public resource agency at least 30 days prior to submitting its well permit application to the Department. The applicant shall submit proof of notification with the well permit application. From the date of notification, the public resource agency has 30 days to provide written comments to the Department and the applicant on the functions and uses of the public resource and the measures, if any, that the public resource agency recommends the Department consider to avoid, minimize or otherwise mitigate probable harmful impacts to the public resource where the well, well site and access road is located. The applicant may provide a response to the Department to the comments.

 (3) The applicant shall include the following information in the well permit application on forms provided by the Department:

 (i) An identification of the public resource.

 (ii) A description of the functions and uses of the public resource.

 (iii) A description of the measures proposed to be taken to avoid, minimize or otherwise mitigate impacts, if any.

 (4) The information required under paragraph (3) shall be limited to the discrete area of the public resource that may be affected by the well, well site and access road.

 (g) The Department will consider the following prior to conditioning a well permit based on impacts to public resources:

 (1) Compliance with all applicable statutes and regulations.

 (2) The proposed measures to avoid, minimize or otherwise mitigate the impacts to public resources.

 (3) Other measures necessary to protect against a probable harmful impact to the functions and uses of the public resource.

 (4) The comments and recommendations submitted by public resource agencies, if any, and the applicant's response, if any.

 (5) The optimal development of the gas resources and the property rights of gas owners.

 (h) An applicant proposing to drill a well that involves 1 acre to less than 5 acres of earth disturbance over the life of the project and is located in a watershed that has a designated or existing use of high quality or exceptional value under Chapter 93 (relating to water quality standards) shall submit an erosion and sediment control plan consistent with Chapter 102 with the well permit application for review and approval and shall conduct the earth disturbance in accordance with the approved erosion and sediment control plan.

§ 78a.16. Accelerated permit review.

 In cases of hardship, an operator may request an accelerated review of a well permit application. For the purposes of this section, hardship includes cases where immediate action is necessary to protect public health or safety, to control pollution or to effect other environmental or safety measures, and extraordinary circumstances beyond the control of the operator. Permits issued shall be consistent with the requirements of the act.

§ 78a.17. Permit expiration and renewal.

 (a) A well permit expires 1 year after issuance if drilling has not started. If drilling is started within 1 year after issuance, the well permit expires unless drilling is pursued with due diligence. Due diligence for the purposes of this subsection means completion of drilling the well to total depth within 16 months of issuance. A permittee may request an extension of the 16-month expiration from the Department for good cause. This request shall be submitted electronically to the Department through its web site.

 (b) An operator may request a single 2-year renewal of an unexpired well permit. The request shall be accompanied by a permit fee, the surcharge required under section 3271 of the act (relating to well plugging funds) 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 entities required to be notified under section 3211(b)(2) of the act (relating to well permits) have been notified of this request for renewal. If new water wells or buildings are constructed that are not indicated on the plat as originally submitted, the attestation shall be updated as part of the renewal request. Any new water well or building owners shall be notified of the renewal request; however, the setbacks outlined in section 3215(a) of the act (relating to well location restrictions) do not apply provided that the original permit was issued prior to the construction of the building or water well. The request shall be received by the Department at least 15 calendar days prior to the expiration of the original permit.

§ 78a.18. Disposal and enhanced recovery well permits.

 Disposal or enhanced recovery well permits shall meet the requirements of § 78.18 (relating to disposal and enhanced recovery well permits).

§ 78a.19. Permit application fee schedule.

 (a) An applicant for an unconventional well shall pay a permit application fee according to the following:

 (1) $4,200 for a vertical unconventional well.

 (2) $5,000 for a nonvertical unconventional well.

 (b) At least every 3 years, the Department will provide the EQB with an evaluation of the fees in this chapter and recommend regulatory changes to the EQB to address any disparity between the program income generated by the fees and the Department's cost of administering the program with the objective of ensuring fees meet all program costs and programs are self-sustaining.

OBJECTIONS

§ 78a.21. Opportunity for objections and conferences; surface landowners.

 (a) The surface landowner of the tract on which the proposed well is located may object to the well location based on the assertion that the well location violates section 3215 of the act (relating to well location restrictions) or on the basis that the information in the application is untrue in a material respect, and request a conference under section 3251 of the act (relating to conferences).

 (b) The objection and request for a conference shall be filed in writing with the Department within 15 calendar days of receipt of the plat by the surface landowner. The objection must contain the following:

 (1) The name, address and telephone number of the person submitting the objection.

 (2) The name of the well operator, and the name and number of the proposed well.

 (3) A statement of the objection and a request for a conference if a conference is being requested.

§ 78a.22. Objections by owner or operator of coal mine.

 The owner or operator of an operating coal mine or a coal mine already projected and platted, but not yet being operated, may file written objections to a proposed well location with the Department if the following apply:

 (1) The well, when drilled, would penetrate within the outside coal boundaries of such a mine or within 1,000 feet beyond the boundaries.

 (2) In the opinion of the owner or operator, the well will unduly interfere with or endanger the mine or persons working in the mine.

§ 78a.23. Time for filing objections by owner or operator of coal mine.

 (a) A coal mine owner or operator who objects to a proposed gas well for financial considerations, and wishes to go before a panel with an objection over which the panel has jurisdiction, shall file objections to a proposed gas well within 10 calendar days of the receipt of the plat.

 (b) A coal mine owner or operator who does not wish to go before a panel with an objection over which the panel has jurisdiction, or who is not raising financial objections to the proposed gas well, shall file objections to a proposed well within 15 calendar days of the receipt of the plat.

§ 78a.24. Information to be provided with objections by owner or operator of coal mine.

 (a) The objections shall be filed in writing and must contain the following information, if applicable:

 (1) The name, address and telephone number of the person filing the objection, and the date on which a copy of the plat was received.

 (2) The name and address of the applicant for the well permit and the name and number of the well.

 (3) The type of well—for example, oil, gas, injection, and the like—that is the subject of the objections.

 (4) The location of the well in relation to the coal owned or operated by the objecting party.

 (5) The area through which the well will be drilled, specifically:

 (i) Whether the well will be drilled through a mining area that is projected, platted or permitted, but not yet being operated.

 (ii) Whether the well will be drilled through a perimeter area.

 (iii) Whether the well will penetrate a workable coal seam.

 (iv) Whether the well will be located above an active mine.

 (v) Whether the well will penetrate an operating mine.

 (6) A copy of the plans, maps or projections of the mining area underlying the proposed gas well showing the location of the proposed well.

 (7) Whether the owner or operator believes that the well will pose undue interference or endangerment to the mine, and the nature of the threat.

 (8) The financial impact posed by the well, to which objections may be heard by a panel under § 78a.30 (relating to jurisdiction of panel).

 (9) Whether the well will violate the act, the Coal and Gas Resource Coordination Act (58 P.S. §§ 501—518) or another applicable law administered by the Department.

 (b) The objections must include an alternate location, if possible, on the tract of the well operator that would overcome the objections or at which the interference would be minimized. The Department is not bound to consider alternate locations that are proposed after the close of the first conference.

§ 78a.25. Conferences—general.

 (a) If a timely objection to the location is filed by the coal owner or operator under §§ 78a.22—78a.24 (relating to objections by owner or operator of coal mine; time for filing objections by owner or operator of coal mine; and information to be provided with objections by owner or operator of coal mine), or if objections are made by the Department, the Department will fix a time and place for a conference within 10 calendar days from the date of service of the objections upon the well operator, unless all parties agree to an extension of time for the conference.

 (b) The Department may decide not to hold a conference if it determines that the objections are not valid or if the objection is resolved.

 (c) The Department will attempt to schedule the conference as late as possible in the 10-day period if the well is subject to the Coal and Gas Resource Coordination Act (58 P.S. §§ 501—518). The Department will not schedule a conference under section 3212 of the act (relating to permit objections) if it receives written notice that the gas well operator or the coal mine owner or operator has made a written request to convene a panel to resolve objections to the location of a gas well over which a panel has jurisdiction in accordance with §§ 78a.29—78a.33.

 (d) The conference will be governed by §§ 78a.26—78a.28 (relating to agreement at conference; continuation of conference; and final action if objections do not proceed to panel).

 (e) The Department or a person having a direct interest in the subject matter of the act may request a conference any time to attempt to resolve by mutual agreement a matter arising under the act.

§ 78a.26. Agreement at conference.

 (a) If the parties reach an agreement at the conference, and if the Department approves the location, the Department will cause the agreement to be reduced to writing.

 (b) If the Department does not reject the agreement within 10 calendar days after the agreement is reduced to writing, the agreement becomes effective.

 (c) An agreement reached at the conference shall be consistent with the requirements of the act and applicable statutes. An agreement that is not in accordance with the act, the Coal and Gas Resource Coordination Act (58 P.S. §§ 501—518) and applicable law shall be deemed to be null and void.

§ 78a.27. Continuation of conference.

 The Department may continue the conference for good cause. Good cause includes one or more of the following:

 (1) The need for supplemental data, maps or surveys.

 (2) The need to verify that the agreement or a proposed well location is consistent with the requirements of the act, the Coal and Gas Resource Coordination Act (58 P.S. §§ 501—518) and other applicable requirements.

 (3) The need for the presence of essential witnesses whose unavailability is due to good cause.

 (4) The need for further investigation into the allegations that are the basis for the objections.

 (5) Agreement by all parties that a continuance is beneficial to the resolution of the objections.

§ 78a.28. Final action if objections do not proceed to panel.

 If the panel does not have jurisdiction over the objections, under § 78a.30 (relating to jurisdiction of panel), or if the panel has jurisdiction but the parties choose not to proceed to a panel, the Department may proceed to issue or deny the permit, under sections 3211 and 3212 of the act (relating to well permits; and permit objections). No permit will be issued for a well at a location that in the opinion of the Department would endanger the safety of persons working in a coal mine.

§ 78a.29. Composition of panel.

 (a) If the gas well operator and the objecting coal owner or operator are unable to agree upon a drilling location, and the gas well is subject to the jurisdiction of a panel under § 78a.30 (relating to jurisdiction of panel), the well operator or a coal owner or operator may convene a panel.

 (b) The panel shall consist of one person selected by the objecting coal owners or operators, a second person selected by the permit applicant and a third selected by these two.

 (c) The parties shall submit their positions to the panel within such time as the panel prescribes, in accordance with section 12 of the Coal and Gas Resource Coordination Act (58 P.S. § 512).

§ 78a.30. Jurisdiction of panel.

 (a) A panel shall hear objections by the owner or operator of the coal mining area only if the proposed gas well is not subject to the Oil and Gas Conservation Law (58 P.S. §§ 401—419) and one of the following applies:

 (1) The well will be drilled through an area that is projected and permitted, but not yet being operated.

 (2) The well will be drilled through a perimeter area.

 (3) The well will penetrate a workable coal seam, and will be located above an active mine, but will not penetrate an operating mine.

 (b) The panel shall hear only objections that were filed by the owner or operator of the mining areas set forth in subsection (a).

 (c) If after a conference in accordance with § 78a.25 (relating to conferences—general), the Department has unresolved objections, the panel does not have jurisdiction to convene or to hear objections.

§ 78a.31. Scheduling of meeting by the panel.

 The panel shall convene a meeting within 10 calendar days of the panel chairperson's receipt of a written request to do so by the permit applicant or by the objecting coal owner or operator.

§ 78a.32. Recommendation by the panel.

 (a) The panel shall make its recommendation of where the proposed well should be located, based upon the financial considerations of the parties.

 (b) The panel shall make its recommendation within 10 calendar days of the close of the meeting held under § 78a.31 (relating to scheduling of meeting by the panel).

 (c) If the Department determines that the first recommended location endangers a mine or the public, it will reject the location and notify the panel to make another recommendation. The panel shall submit another recommended location to the Department within 10 calendar days of the Department's notification.

 (d) If the Department determines that the second recommended location endangers a mine or the public, the Department may designate a location where it has determined that the well will not unduly interfere with or endanger the mine or the public and issue a permit for the well at that designated location. However, if the Department has not designated such a location, and if the Department determines that a well drilled at any proposed or panel-recommended alternate location will unduly interfere with or endanger the mine or the public, it will deny the permit.

 (e) No permit will be issued for a well at a location that would, in the opinion of the Department, endanger the safety of persons working in a coal mine.

§ 78a.33. Effect of panel on time for permit issuance.

 The period of time during which the objections are being considered by a full panel will not be included in the 45-day period for the issuance or denial of a permit under section 3211(e) of the act (relating to well permits).

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