RULES AND REGULATIONS
Title 25--ENVIRONMENTAL PROTECTION
ENVIRONMENTAL QUALITY BOARD
[25 PA. CODE CHS. 78--80]
Oil and Gas
[28 Pa.B. 1234] The Environmental Quality Board (Board) by this order amends Chapters 78--80 (relating to oil and gas wells; oil and gas conservation; and gas well classification). The amendments to Chapter 78 simplify notification and reporting requirements, clarify requirements for the discharge to land surface of tophole water, and clarify surface casing and cementing procedures. The amendment to Chapter 79 provides consistency with the requirements of Chapter 78. Chapter 80 is deleted since the gas well classification program under the Federal Natural Gas Policy Act of 1978 has been terminated.
This order was adopted by the Board at its meeting of December 16, 1997.
A. Effective Date
These amendments will go into effect upon publication in the Pennsylvania Bulletin as final rulemaking.
B. Contact Persons
For further information contact James E. Erb, Director, Bureau of Oil and Gas Management, P. O. Box 8765, Rachel Carson State Office Building, Harrisburg, PA 17105-8765, (717) 772-2199, or Kurt Klapkowski, Assistant Counsel, Bureau of Regulatory Counsel, P. O. Box 8464, Rachel Carson State Office Building, Harrisburg, PA 17105-8464, (717) 787-7060. Persons with a disability may use the AT&T Relay Service by calling (800) 654-5984 (TDD users) or (800) 654-5988 (voice users). This final rulemaking is available electronically through the Department of Environmental Protection's (Department) Web site (http://www.dep.state.pa.us).
C. Statutory Authority
The final rulemaking is being made under the authority of section 604 of the Oil and Gas Act (58 P. S. § 601.104), which directs the Board to adopt regulations; section 5 of the Oil and Gas Conservation Law (58 P. S. § 405), which authorizes the Department to promulgate and enforce rules and regulations to effectuate the purposes and intent of that act; section 105 of the Solid Waste Management Act (35 P. S. § 6018.105), which requires the Board to adopt rules and regulations; section 5 of The Clean Streams Law (35 P. S. § 691.5), which authorizes the Department to adopt rules and regulations; and section 1920-A of The Administrative Code of 1929 (71 P. S. § 510-20) which authorizes the Board to adopt regulations necessary for the Department to perform its work.
D. Background and Purpose
This final rulemaking is a result of the Department's Regulatory Basics Initiative. The Regulatory Basics Initiative was announced in August 1995 as an overall review of the Department's regulations and policies. The Department solicited public comments in August of 1995 by giving the regulated community, local governments, environmental interests and the general public the opportunity to identify specific regulations and guidance which were either more stringent than Federal standards, served as barriers to innovation, were obsolete or unnecessary, which imposed costs beyond reasonable environmental benefits, or served as barriers to adopting new environmental technologies, recycling and pollution prevention.
In February, 1996, the Governor executed Executive Order 1996-1 Regulatory Review and Promulgation establishing standards for the development and promulgation of regulations. This final rulemaking meets the requirements of Executive Order 1996-1.
As a result of the request for public comments under the Regulatory Basics Initiative, six commentators submitted 40 comments on the proposed amendments pertaining to the Oil and Gas Program. The Department prepared a comment and response document responding to all comments received. Those comments, plus internal staff review of the regulations, resulted in proposed amendments which were approved by the Board as proposed rulemaking on March 18, 1997.
The proposed rulemaking was published in the Pennsylvania Bulletin for public comment on May 3, 1997. The public comment period concluded on June 2, 1997. As discussed in more detail in Section E to this Preamble, the Board received one comment from two commentators. There were no public meetings or hearings.
This final rulemaking has been reviewed by the Oil and Gas Technical Advisory Board (Board) at its July 14, 1997, meeting. The Board developed a written report containing comments at that meeting. That report was presented to the Board as part of the final regulatory package.
E. Summary of Comments and Responses on the Proposed Rulemaking
There was only one comment submitted on the proposed amendments during the public comment period. This comment, received from the Pennsylvania Oil and Gas Association (POGAM) and the Independent Regulatory Review Commission (IRRC), related to the proposal to require a vent when plugging a well in a coal area with cement from total depth to the surface. POGAM and IRRC commented that the venting requirements are inconsistent with the general plugging requirements, and that if a well is properly cemented from total depth to the surface, downhole conditions that necessitate the installation of a vent for safety purposes are not present. Upon reconsideration and discussion with the Board, the Department concurred with the comment and retained the existing language in § 78.91(h) (relating to general provisions).
F. Benefits, Costs and Compliance
Executive Order 1996-1 requires a cost/benefit analysis of the amendments.
Benefits
The amendments will benefit oil and gas operators by reducing reporting requirements, clarifying technical requirements pertaining to casing and cementing procedures and plugging procedures, providing standards for oil spill prevention that are consistent with Federal requirements, and eliminating outdated and obsolete requirements.
Compliance Cost
The amendments impose no additional compliance costs on the oil and gas operator. The changes to the reporting requirements should decrease compliance costs to oil and gas operators by $12,500 per year. The Department's costs of administering and enforcing these requirements will not change significantly.
Paperwork Requirements
The amendments will not result in additional forms or reports. Since reports of predrilling surveys and annual monitoring reports for disposal or enhanced recovery wells will only be submitted upon request of the Department, paperwork requirements are being reduced.
G. Sunset Review
These final-form regulations will be reviewed in accordance with the sunset review schedule published by the Department to determine whether the regulations effectively fulfill the goals for which they were intended.
H. Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), the Department submitted a copy of these amendments on April 21, 1997, to IRRC and the Chairpersons of the Senate and House Environmental Resources and Energy Committees. In compliance with section 5(b.1) of the Regulatory Review Act, the Department also provided IRRC and the Committees with copies of the comments, as well as other related documents.
In preparing these final-form regulations, the Department has considered the comments received from IRRC and the public. These comments are addressed in the comment and response document and Section E of this Preamble. The Committees did not provide comments on the proposed rulemaking.
These final-form regulations were deemed approved by the House and Environmental Resources and Energy Committees on January 27, 1998. IRRC met on February 13, 1998, and deemed approved the final-form regulations in accordance with section 5(c) of the Regulatory Review Act.
I. Findings of the Board
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 at 1 Pa. Code §§ 7.1 and 7.2.
(2) A public comment period was provided as required by law, and all comments were considered.
(3) These final-form regulations do not enlarge the purpose of the proposal published at 27 Pa.B. 2126 (May 3, 1997).
(4) These final-form regulations are necessary and appropriate for administration and enforcement of the authorizing acts identified in Section C of this Preamble.
J. Order
The Board, acting under the authorizing statutes, orders that:
(a) The regulations of the Department, 25 Pa. Code. Chapters 78--80, are amended by amending §§ 78.14, 78.52, 78.60, 78.83, 78.123, 78.125 and 79.15; and by deleting §§ 80.1, 80.11, 80.12, 80.21--80.26 and 80.31--80.34 to read as set forth at 27 Pa.B. 2126.
(b) The Chairperson of the Board shall submit this order and 27 Pa.B. 2126 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 shall submit this order and 27 Pa.B. 2126 to IRRC and the Senate and House Environmental Resources and Energy Committees as required by the Regulatory Review Act.
(d) The Chairperson of the Board shall certify this order and 27 Pa.B. 2126 and deposit them with the Legislative Reference Bureau, as required by law.
(e) This order shall take effect immediately.
JAMES M. SEIF
Chairperson(Editor's Note: The proposal to amend § 78.91(h) included with the proposed amendments of the Board at 27 Pa.B. 2126 has been withdrawn.)
(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 28 Pa.B. 1185 (February 28, 1998).)
Fiscal Note: Fiscal Note 7-318 remains valid for the final adoption of the subject regulations.
[Pa.B. Doc. No. 98-372. Filed for public inspection March 6, 1998, 9:00 a.m.]
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