HB 962 — An Act amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes, in development, further providing for bonding.

PRIOR PRINTER'S NO.

948 THEPRINTER'S GENERALNO. ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

9621299 2023THE INTRODUCEDGENERAL BYASSEMBLY VITALI,OF BRENNAN,PENNSYLVANIA MADDEN,HOUSE PIELLI,BILL RABB,Session SAMUELSON, SANCHEZ, FREEMAN, HOHENSTEIN, HILL-EVANS, KHAN, CIRESI, STEELE AND FIEDLER, APRIL 19, 2023 REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, APRIL 19, 2023 AN ACT Amending Title 58 (Oil and Gas) of theNo. Pennsylvania Consolidated Statutes, in development, further providing for bonding.

962 2023 INTRODUCED BY VITALI, BRENNAN, MADDEN, PIELLI, RABB, SAMUELSON, SANCHEZ, FREEMAN, HOHENSTEIN, HILL-EVANS, KHAN, CIRESI, STEELE, FIEDLER AND KRAJEWSKI, APRIL 19, 2023 AS REPORTED FROM COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, HOUSE OF REPRESENTATIVES, AS AMENDED, MAY 23, 2023 AN ACT Amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated Statutes, in development, further providing for bonding.

Section 3225(a)(1), (2) and (2.1) of Title 58 of <-- the Pennsylvania Consolidated Statutes, amended or added July 19, 2022 (P.L.1622, No.96), are amended to read:

SECTION 1.

SECTION 3225(A)(1) INTRODUCTORY PARAGRAPH AND <-- (III) AND (2) OF TITLE 58 OF THE PENNSYLVANIA CONSOLIDATED STATUTES, AMENDED JULY 19, 2022 (P.L.1622, NO.96), ARE AMENDED TO READ:

The amount of the bond required shall be in the following amounts and amounts[amounts under <-- subparagraphs (i) and (ii)(ii)] may be adjusted by the <-- Environmental Quality Board every two years to reflect the projected costs to the Commonwealth of plugging the well:

(i) For [unconventional] wells with a total well <-- bore length less than 6,000 feet:

(D) For operating more than 250 wells, $100,000 plus $4,000 per well for each well in excess of 250 wells, but no bond may be required under this clause 20230HB0962PN1299 - 2 - in excess of $250,000.

(A) For operating up to 25 wells, $10,000 per 20230HB0962PN0948 - 2 - well, but no bond may be required under this clause in excess of $140,000.

* * * <-- [(iii) For a well other than an unconventional well, <-- $2,500 per well.

For[For 10 years following the effective <-- date of this subparagraph, the Environmental Quality Board and the department shall have no authority to adjust the amount under this subparagraph.] (2) [The following apply:

<-- (i) Except as provided under subparagraph (ii), in] <-- In lieu of individual bonds for each well, an owner or operator may file a blanket bond for the applicable amount under paragraph (1)(i) or (ii), on a form prepared by the department, covering all of its wells in this 20230HB0962PN1299 - 3 - Commonwealth, as enumerated on the bond form.

<-- (A) An operator may file a blanket bond of $25,000 for all of the operator's wells in this Commonwealth that are not unconventional wells.

20230HB0962PN0948[(B) - 3 - (B) For every new well that is not an <-- unconventional well drilled after six months after the effective date of this subsection, the bond amount for that operator shall increase by $1,000.

The Environmental Quality Board and the department shall have no authority to adjust bond amounts related to wells that are not unconventional wells during that time period.period.] <-- (2.1) Notwithstanding any other provision of this <-- section, section 1934-A of the act of April 9, 1929 (P.L.177, 20230HB0962PN1299 - 4 - No.175), known as The Administrative Code of 1929, shall continue to apply to a well drilled prior to April 18, 1985.] (F) THE DEPARTMENT SHALL CONDUCT A STUDY OF ITS <-- EXPERIENCE IN IMPLEMENTING THIS SECTION, REPORT ITS FINDINGS TO THE GOVERNOR AND THE GENERAL ASSEMBLY AND MAKE RECOMMENDATIONS FOR PROGRAM AMENDMENTS WITHIN 12 MONTHS OF THE EFFECTIVE DATE OF THIS CLAUSE.

(2.1)THE NotwithstandingREPORT anySHALL otherCONTAIN provisionINFORMATION ofRELATING thisTO: section, section 1934-A of the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929, shall continue to apply to a well drilled prior to April 18, 1985.] * * * Section 2.

(I) THE COST TO THE COMMONWEALTH TO PLUG ORPHAN AND IMPROPERLY ABANDONED WELLS;

(II) EVALUATION OF INDUSTRY TRENDS RELATING TO COMPLIANCE WITH PLUGGING AND RECLAMATION REQUIREMENTS UNDER EXISTING LAW;

(III) EVALUATION OF THE EFFECTIVENESS OF EXISTING ENFORCEMENT AUTHORITY IN AVOIDING IMPROPER ABANDONMENT, INCLUDING CIVIL PENALTY AUTHORITY AND FORFEITING OIL AND GAS WELL BONDS;

(IV) THE SYSTEM FOR REVIEWING OPERATORS' REQUESTS FOR REGULATORY INACTIVE STATUS APPROVAL AND PERMIT TRANSFERS AND WHAT IMPACT APPROVING THOSE ACTIONS UNDER CURRENT REQUIREMENTS HAVE ON FUTURE IMPROPER ABANDONMENT OF ACTIVE WELLS;

(V) THE NUMBER OF IDENTIFIED ORPHAN AND IMPROPERLY ABANDONED WELLS ELIGIBLE FOR PLUGGING;

(VI) ANY RECOMMENDATION ON EFFECTIVE ALTERNATIVE FINANCIAL ASSURANCE MECHANISMS, INCLUDING, BUT NOT LIMITED TO, INCREASED BOND AMOUNTS FOR CONVENTIONAL OIL AND GAS WELLS;

AND (VII) THE POTENTIAL APPLICABILITY OF THE MECHANISMS TO OIL AND GAS WELLS DRILLED PRIOR TO 20230HB0962PN1299 - 5 - APRIL 18, 1985.

* * * Section 2.

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