quarterly legislative action update: marcellus and utica shale region

Quarterly legislative action update: Marcellus and Utica shale region Norton Rose Fulbright US LLP –2nd Quarter 2016 - Private and confidential

Quarterly legislative action update: Marcellus and Utica shale region

Norton Rose Fulbright US LLP 2nd Quarter 2016 2

Our Norton Rose Fulbright Pittsburgh-Southpointe practice tracks legislative activity that we believe may impact oil and gas development within the Marcellus and Utica shale regions (Pennsylvania, West Virginia and Ohio).

This Update contains all of the relevant legislative activity occurring in Pennsylvania, West Virginia, and Ohio through July 29, 2016.

New legislative activity occurring after publication of this Update will be posted to Norton Rose Fulbright’s Hydraulic Fracking Blog as soon as it is available. The next issue of this Quarterly Update will be published in October 2016 and will contain all of the legislative activity occurring through the third quarter of 2016, highlighting changes occurring during that quarter.

Summary of Activity Since Previous Update

Pennsylvania – Existing Bills Acted Upon:

• PA House Bill 1325 – Amendments to Second Class Township Code Regarding Storm Water Facilities

• PA House Bill 1391 – Amendments to Oil and Gas Lease Act

• PA House Bill 1704 – Amendments to Engineer, Land Surveyor and Geologist Registration Law

• PA Senate Bill 279 – Pennsylvania Grade Crude Development Advisory Council Act

• PA Senate Bill 307 – Provides for independent counsel for the Environmental Quality Board

• PA Senate Bill 1195 – Amendment to Pennsylvania Greenhouse Gas Regulation Implementation Act

Pennsylvania – New Bills Introduced:

• PA House Bill 1605 – Amendment to Oil & Gas Conservation Act

• PA House Bill 2103 – Natural Gas Severance Tax

• PA House Bill 2114 – Pennsylvania Water Resource Act

• PA House Bill 2165 – Natural Gas Severance Tax

• PA House Bill 2223 – Waste Disposal Fees to Support Environmental Programs

• PA House Bill 2249 – Amendment to Safe Drinking Water Act

• PA Senate Bill 1273 – Amendment to Unconventional Well Report Act

• PA Senate Bill 1325 – Erosion and Sediment Control Act

• PA Senate Bill 1327 – Amendment to Air Pollution Control Act

• PA Senate Resolution 385 – Environmental Law and Regulation Review

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Norton Rose Fulbright US LLP 2nd Quarter 2016

Contents1 Pennsylvania legislative action updates ............................................................... 1

House .................................................................................................................................................... 1

PA House Bill 33 – Amendments to Municipalities Planning Code ................................................1 PA House Bill 48 – Water Well Standards (see also PA House Bill 81 – identical

when introduced) ...............................................................................................................1 PA House Bill 67 – Amends Dormant Oil and Gas Act regarding abandonment of

mineral interest ..................................................................................................................2 PA House Bill 70 – Amends Dormant Oil and Gas Act regarding unknown owner

trusts ..................................................................................................................................3 PA House Bill 81 – Water Well Standards (see also PA House Bill 48 – identical

when introduced) ...............................................................................................................4 PA House Bill 82 – Amends Oil & Gas Act to impose natural gas severance tax ..........................4 PA House Bill 151 – Recreational land offset for pipeline construction ..........................................4 PA House Bill 167 – Permits issued by the Department of Environmental Protection

supersedes local ordinances .............................................................................................5 PA House Bill 252 – Marcellus Shale Health Registry Act .............................................................5 PA House Bill 343 – Forest Reserves Municipal Financial Relief Law ...........................................5 PA House Bill 371 – Amendments to Underground Utility Line Protection Law to

require use of domestic steel .....................................................................................6 PA House Bill 445 – Amendments to Underground Utility Line Protection Law (PA

One Call) ............................................................................................................................6 PA House Bill 500 – Natural Gas Severance Tax ..........................................................................7 PA House Bill 507 – Pennsylvania Disposal Well Act ....................................................................7 PA House Bill 522 – Telephone reporting of violations of oil and gas laws ....................................7 PA House Bill 523 – Amends Oil and Gas Act to require notice by newspaper

publication of application for well permit ..........................................................................8 PA House Bill 524 – Well Operation Response Team Act .............................................................8 PA House Bill 526 – Natural Gas Severance Tax ..........................................................................8 PA House Bill 528 – Natural Gas Severance Tax with proceeds to LIHEAP program ..................8 PA House Bill 621 – Format of documents recording lease assignments ......................................9 PA House Bill 716 – Severance Tax Exemption for Manufacturing Purpose .................................9 PA House Bill 737 – Water Obstruction and Encroachment Permits .............................................9 PA House Bill 818 – Landowner notice of certain permit applications ........................................ 10 PA House Bill 855 – Amendments to Gas & Hazardous Liquids Pipelines Act ........................... 11 PA House Bill 1097 – Water Well Insurance Fund ...................................................................... 11 PA House Bill 1099 – Provides for independent counsel for the Environmental

Quality Board .................................................................................................................. 12 PA House Bill 1142 – Natural Gas Severance Tax ..................................................................... 12 PA House Bill 1253 – Professional licensure of engineers, land surveyors, and

geologists ........................................................................................................................ 13 PA House Bill 1292 – Hydraulic fracturing chemical disclosure requirements ............................ 13 PA House Bill 1321 – Natural Gas Severance Tax ..................................................................... 14

1 Clicking on entries in this Table of Contents will take you directly to the summary of that legislation. Further, each summary contains hyperlinks to third party websites with further relevant information. An explanation of the third party websites associated with the hyperlinks is found at the beginning of each state section.



PA House Bill 1325 – Amendments to Second Class Township Code Regarding Storm Water Facilities ..................................................................................................... 14

PA House Bill 1327 – Amendments to Fiscal Code .................................................................... 15 PA House Bill 1363 – Natural Gas Severance Tax ..................................................................... 17 PA House Bill 1391 – Amendments to Oil and Gas Lease Act ................................................... 17 PA House Bill 1394 – Amendments to Borough Code Regarding Storm Water

Facilities .......................................................................................................................... 18 PA House Bill 1517 – Natural Gas Vehicle Development Program extension ............................ 18 PA House Bill 1536 – Natural Gas Severance Tax ..................................................................... 19 PA House Bill 1570 – Education Reinvestment Act .................................................................... 19 PA House Bill 1605 – Amendment to Oil & Gas Conservation Act ............................................. 19 PA House Bill 1661 – Amendments to First Class Township Code Regarding Storm

Water Facilities ............................................................................................................... 20 PA House Bill 1704 – Amendments to Engineer, Land Surveyor and Geologist

Registration Law ............................................................................................................. 21 PA House Bill 1731 – Keystone Energy Enhancement Act ......................................................... 21 PA House Bill 1743 – Natural Gas Severance Tax ..................................................................... 22 PA House Bill 1825 – Acid Mine Drainage .................................................................................. 23 PA House Bill 1846 – Amendment to Oil & Gas Act .................................................................... 23 PA House Bill 2030 – Amendment to Pennsylvania Climate Change Act ................................... 23 PA House Bill 2103 – Natural Gas Severance Tax ..................................................................... 24 PA House Bill 2114 – Pennsylvania Water Resource Act ........................................................... 24 PA House Bill 2165 – Natural Gas Severance Tax ..................................................................... 25 PA House Bill 2223 – Waste Disposal Fees to Support Environmental Programs ..................... 25 PA House Bill 2249 – Amendment to Safe Drinking Water Act ................................................... 26 PA House Resolution 316 – Study to Expand Availability of Natural Gas in

Pennsylvania ................................................................................................................... 26 PA House Resolution 388 – Accounting of Marcellus Legacy Fund ........................................... 26

Concurrent resolution ....................................................................................................................... 27

PA Concurrent Resolution – Disapproving the Environmental Protection Standards at Oil & Gas Well Sites Regulations Submitted by the Environmental Quality Board............................................................................................................................... 27

Senate .................................................................................................................................................. 27

PA Senate Bill 53 – Amends Oil and Gas Act related to lease disclosure and indemnification ................................................................................................................ 27

PA Senate Bill 64 – Distribution of impact fee ............................................................................. 27 PA Senate Bill 116 – Natural Gas Severance Tax ...................................................................... 28 PA Senate Bill 145 – Amends Oil and Gas Act to mandate Pugh Clause .................................. 28 PA Senate Bill 147 – Amendments to Oil & Gas Lease Act ........................................................ 29 PA Senate Bill 148 – Natural Gas Lease Anti-Retaliation Act ..................................................... 29 PA Senate Bill 257 – Private water supply testing and public disclosure of results .................... 30 PA Senate Bill 279 – Pennsylvania Grade Crude Development Advisory Council Act ............... 31 PA Senate Bill 307 – Provides for independent counsel for the Environmental Quality

Board............................................................................................................................... 32 PA Senate Bill 313 – Unconventional Oil and Gas Unit Conservation and Integration

Act ................................................................................................................................... 33 PA Senate Bill 347 – Protection of water supplies ...................................................................... 33 PA Senate Bill 348 – Leasing of state forest lands ...................................................................... 34 PA Senate Bill 367 – PA One Call System Applicability to Gathering Lines ............................... 34 PA Senate Bill 375 – Marcellus Shale Health Advisory Panel ..................................................... 35



PA Senate Bill 380 – Disease and Cancer Cluster Coordination Act .......................................... 35 PA Senate Bill 395 – Education for Extraction Tax ..................................................................... 36 PA Senate Bill 413 – Amendments to Sections of Pennsylvania Consolidated

Statutes Concerning Administrative Law & Procedure ................................................... 36 PA Senate Bill 415 – Natural Gas Severance Tax ...................................................................... 37 PA Senate Bill 417 – Amendment to Oil and Gas Act to require use of steel made in

United States .................................................................................................................. 37 PA Senate Bill 418 – Amendment to Underground Utility Line Protection Law ........................... 37 PA Senate Bill 419 – Amendment to Oil and Gas Act to require publication of country

of origin of steel products ................................................................................................ 38 PA Senate Bill 455 – Amendment to Solid Waste Management Act ........................................... 38 PA Senate Bill 519 – Natural Gas Severance Tax ...................................................................... 38 PA Senate Bill 551 – Physician Hydraulic Fracturing Chemical Disclosure ................................ 39 PA Senate Bill 557 – Pipeline Impact Fee ................................................................................... 39 PA Senate Bill 561 – Amendments to Gas and Hazardous Liquids Pipelines Act ...................... 40 PA Senate Bill 571 – Amends Safe Drinking Water Act .............................................................. 40 PA Senate Bill 572 – Amends Municipalities Planning Code ...................................................... 41 PA Senate Bill 653 – Water Well Construction Standards .......................................................... 41 PA Senate Bill 655 – Amendments to Fiscal Code ..................................................................... 41 PA Senate Bill 801 – Publication of Permits by DEP ................................................................... 42 PA Senate Bill 802 – Notification of pipeline construction ........................................................... 43 PA Senate Bill 803 – Protection of Act 43 farmland .................................................................... 43 PA Senate Bill 804 – Amends Gas and Hazardous Liquids Pipelines Act .................................. 44 PA Senate Bill 845 – Licensing of Soil Scientists ........................................................................ 44 PA Senate Bill 875 – Treated Mine Water Act ............................................................................. 45 PA Senate Bill 886 – Affordable Energy Development Zones Act .............................................. 45 PA Senate Bill 905 – Local Taxation of Natural Gas Pipelines ................................................... 46 PA Senate Bill 953 – Natural Gas Infrastructure Expansion and Access Act ............................. 46 PA Senate Bill 992 – Amendment to Water Rights Law .............................................................. 47 PA Senate Bill 993 – Amendment to Delaware River Basin Compact ........................................ 47 PA Senate Bill 994 – Amendment to Susquehanna River Basin Compact Law ......................... 48 PA Senate Bill 1011 – Rulemaking Prohibition Related to Conventional Oil and Gas

Wells ............................................................................................................................... 48 PA Senate Bill 1044 – Rural Pennsylvania Pipeline Safety Act .................................................. 49 PA Senate Bill 1092 – Permit Tracking and Notification Law ...................................................... 49 PA Senate Bill 1145 – Amendment to Oil & Gas Conservation Law ........................................... 50 PA Senate Bill 1195 – Amendment to Pennsylvania Greenhouse Gas Regulation

Implementation Act ......................................................................................................... 50 PA Senate Bill 1273 – Amendment to Unconventional Well Report Act ..................................... 50 PA Senate Bill 1325 – Erosion and Sediment Control Act .......................................................... 51 PA Senate Bill 1327 – Amendment to Air Pollution Control Act .................................................. 51 PA Senate Resolution 247 – Crude by Rail Shipments ............................................................... 52 PA Senate Resolution 277 – Compliance with Clean Power Plan .............................................. 52 PA Senate Resolution 385 – Environmental Law and Regulation Review .................................. 52

West Virginia legislative action updates ............................................................. 53

House .................................................................................................................................................. 53

WV House Bill 2062 – Proposes § 22C-13-1 to create Legislative Oversight Commission on Energy Workers Safety (“Commission”) ............................................... 53



WV House Bill 2080 – Amends Severance & Business Privilege Tax Act (“Tax”) to reallocate up to $30 million of natural gas and oil severance tax revenues to the counties where the gas or oil originated from ........................................................... 54

WV House Bill 2269 – Bars Department of Environmental Protection, Department of Health and Human Resources, Division of Natural Resources and Department of Commerce from proposing or promulgating rules which are more stringent than corresponding federal laws or regulations ...................................... 55

WV House Bill 2407 – Proposes §11-13A-5b to reallocate and dedicate 3% of oil and gas severance tax revenues to the counties and municipalities from where the gas was taken ........................................................................................................... 55

WV House Bill 2585 – Requires leaseholders to notify the mineral interest owners when there is an assignment of the lease ..................................................................... 56

WV House Bill 2707 – Proposes §36-3-8a to require natural gas lessors to provide surface owners the ability to purchase gas from those wells ......................................... 56

WV House Bill 2890 – Creating a procedure to quiet title to abandoned mineral interests by serving notice on a mineral interest owner and filing an affidavit with the county clerk within 60 days ............................................................................... 56

WV House Bill 2975 – Mandating that tax assessor value oil and gas interest based on amount of oil or gas actually produced ...................................................................... 58

WV House Bill 2977 – Amends § 5A-11-3 to mandate that rents and royalties from mineral leases under state rivers and streams be expended for road paving and maintenance ............................................................................................................ 58

WV House Bill 3013 – Amends Natural Gas Horizontal Well Act to increase limit of disturbance of a well site to 1500 feet from an occupied structure and establishes air, noise, and dust monitoring requirements. ............................................. 59

Senate .................................................................................................................................................. 60

WV Senate Bill 564 – Authorizing Shallow Gas Well Review Board to grant waivers of minimum distance requirements for shallow wells to encourage multi-well pads ................................................................................................................................ 60

Ohio legislative action updates ............................................................................ 61

House .................................................................................................................................................. 61

OH House Bill 8 – Oil and gas-unit operation/valuing reserves-method ..................................... 61 OH House Bill 83 – Oil or gas well owner-royalty statement to holder of royalty

interest ............................................................................................................................ 61 OH House Bill 522 - Oil and gas wells-local approval/conversion-injection wells ....................... 62

Senate .................................................................................................................................................. 62

OH Senate Bill 46 – Lake Erie – ban on oil & gas development ................................................. 62 OH Senate Bill 47 – Brine – prohibit land application and injection/well conversion-

prohibit ............................................................................................................................ 63 OH Senate Bill 120 – Oil and Gas law – revise enforcement ...................................................... 63 OH Senate Bill 166 – Horizontal wells-emergency response plans ............................................ 64

Contacts ................................................................................................................. 65

1



Pennsylvania legislative action updates2 House

PA House Bill 33 – Amendments to Municipalities Planning Code

Sponsor: Glenn Grell (Republican – part of Cumberland County [outside Harrisburg])

Overview: Amends Municipalities Planning Code (“MPC”) to allow governing body to appoint up to three residents of the municipality to serve as alternate members of the Planning Commission.

Alternate members of Planning Commission appointed pursuant to this bill may participate fully in event of absence or recusal of any absent member.

Current Status:

Approved unanimously by the House Appropriations Committee on March 30, 2015. Passed unanimously by the House of Representatives on March 30, 2015. Reported unanimously out of the Senate Committee on Local Government on July 14, 2015. Passed unanimously by the Senate on September 28, 2015. Signed into law by Governor Tom Wolf as Act 42 on October 7, 2015.

PA House Bill 48 – Water Well Standards (see also PA House Bill 81 – identical when introduced)

Sponsor: Robert W. Godshall (Republican – part of Montgomery County [outside Philadelphia]; Chair of Consumer Affairs Committee)

Overview: Establishes Chapter 33 of Title 27, setting forth private water well construction standards, including powers and duties of Department of Environmental Protection and penalties for noncompliance.

2 This summary contains hyperlinks to third party websites containing further relevant information. Clicking on the bill number will take you to the main bill information page at the General Assembly’s website, from which you can navigate to the bill text and legislative history. Where applicable, clicking on “Printer’s Number” will take you to the amended version of the bill. Clicking on the sponsor’s name will take you to the member information page on the General Assembly’s website, which includes biographical, district, and committee assignment information.

http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2015&sind=0&body=H&type=B&bn=33

http://www.legis.state.pa.us/cfdocs/legis/home/member_information/house_bio.cfm?id=1021

http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=H&type=B&bn=0048


http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2015&sessInd=0&billBody=H&billTyp=B&billNbr=0048&pn=0042

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“Construction” section states that Chapter shall not be construed to allow: • the Department of Conservation of Natural Resources to require a permit for

construction/decommissioning of water wells; or • the Commonwealth or any municipality, agency, department, or division thereof

to “meter, charge, tax or otherwise impose a fee for the usage of private water wells in this Commonwealth.”

Amendments: Printer’s Number 1884: Requires the Environmental Quality Board (“EQB”) to promulgate standards for well construction and decommissioning that are consistent with those recommended by the American National Standards Institute or National Ground Water Association, removing discretion given under previous version allowing for “similar” standards as the EQB “deems necessary.”

Current Status:

Referred to the House Committee on Consumer Affairs on January 21, 2015. Reported unanimously out of the House Committee on Consumer Affairs on June 24, 2015. Reported unanimously out of the House Rules Committee on July 21, 2015.

*PA House Bill 48 is a reintroduction of PA House Bill 343 from the 2013-2014 session of the Pennsylvania General Assembly.

PA House Bill 67 – Amends Dormant Oil and Gas Act regarding abandonment of mineral interest


Overview: In instances where the mineral estate (including oil and gas) has been severed from the surface estate, an interest in oil or gas shall be deemed abandoned after twenty years in the absence of:

• A permit to drill an oil or gas well;

• Actual production of oil or gas from the land or from lands pooled/unitized with the interest; or

• Use of interest in underground gas storage operations.

An interest deemed to be abandoned shall vest in the owner of the surface estate as of the date of the abandonment.

• Surface owner must file with recorder of deeds written notice of claim of vested interest in abandoned subsurface mineral estate rights.




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An interest shall not be deemed abandoned if the owner records a claim of interest prior to the latest of the following:

• Twenty years after the last sale, lease, mortgage, or transfer of record of the interest; or

• Twenty years after the last issuance of a drilling permit, actual production of oil or gas from the interest or from lands pooled/unitized with the interest, or use of the interest in underground gas storage operations.

The recorded claim of interest operates to preserve the interest for twenty years, and may be preserved indefinitely by recording written notices pursuant to the act.

Bill does not indicate that twenty-year period begins to run from date of enactment, but could include time period before enactment as well.

Current Status:

Referred to House Committee on Environmental Resources and Energy on January 21, 2015.


PA House Bill 70 – Amends Dormant Oil and Gas Act regarding unknown owner trusts


Overview: Allows owner of interest in oil and gas rights underlying a tract of land to petition court to set up a trust in favor of unknown owner(s) of the oil and gas rights underlying the tract.

Requires petitioner to have made a diligent effort to locate the unknown owner(s).

Petitioner must show that creation of the trust is likely to result in the commercial development of subsurface properties.

Adds definitions for “Bonus” and “Correlative rights.”

Current Status:

Referred to House Committee on Environmental Resources and Energy on January 21, 2015.




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PA House Bill 81 – Water Well Standards (see also PA House Bill 48 – identical when introduced)

Sponsor: Kate Harper (Republican – part of Montgomery County [outside Philadelphia]; Chair of Local Government Committee)

Overview: Establishes Chapter 33 of Title 27, setting forth private water well construction standards, including powers and duties of Department of Environmental Protection and penalties for noncompliance.

“Construction” section states that Chapter shall not be construed to allow: • the Department of Conservation of Natural Resources to require a permit for

construction/decommissioning of water wells; or

• the Commonwealth or any municipality, agency, department, or division thereof to “meter, charge, tax or otherwise impose a fee for the usage of private water wells in this Commonwealth.”

Current Status:

Referred to the House Committee on Environmental Resources and Energy on January 21, 2015.


PA House Bill 82 – Amends Oil & Gas Act to impose natural gas severance tax

Sponsor: Kate Harper (Republican – part of Montgomery County [outside Philadelphia]; Chair of Local Government Committee)

Overview: Extensive severance tax bill, with rate of “3.5% of the gross value of units severed at the wellhead during a reporting period.”

Current impact fee structure would remain unchanged and would be in addition to the new severance tax.

Current Status:


PA House Bill 151 – Recreational land offset for pipeline construction

Sponsor: W. Curtis Thomas (Democrat – Philadelphia)

Overview: Pipeline operator that purchases or obtains an easement over public land, agricultural-easement land, or permanently preserved land for a new or expanded pipeline must purchase or grant an easement for an equivalent section of land within the county for public active or passive recreational use.

Pipeline operator must ensure that post-construction storm water runoff does not exceed pre-construction volume and rate.








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Current Status:

Referred to House Committee on Consumer Affairs on February 4, 2015.

*PA House Bill 151 is a reintroduction of PA Senate Bill 506 from the 2013-2014 session of the Pennsylvania General Assembly.

PA House Bill 167 – Permits issued by the Department of Environmental Protection supersedes local ordinances

Sponsor: Seth Grove (Republican – part of York County [south-central Pennsylvania])

Overview: Amends Administrative Code to provide that a permit issued by the Department of Environmental Protection (“DEP”) shall supersede all local ordinances and enactments purporting to establish standards for natural resources and environmental protection that conflict with the DEP’s regulatory oversight.

Current Status:



PA House Bill 252 – Marcellus Shale Health Registry Act

Sponsor: Karen Boback (Republican – Wyoming County and parts of Lackawanna and Luzerne Counties [northeast Pennsylvania])

Overview: Establishes a “health registry” for the collection of health-related data associated with unconventional gas well drilling, consisting of data collected and provided by health care practitioners.

Requires health care practitioners to report to Department of Health any “health concerns” that “may be associated with unconventional gas well operations.”

Current Status:

Referred to House Committee on Health on February 3, 2015.

PA House Bill 343 – Forest Reserves Municipal Financial Relief Law

Sponsor: Martin T. Causer (Republican – Cameron, Potter and part of McKean Counties [northern tier of Pennsylvania]; member of Environmental Resources & Energy Committee)

Overview: Requires 20% of all revenue received by any state agency, except the Game Commission and the Fish and Boat Commission, through the sale of timber or through oil and gas leases and royalties, to be deposited into the Forest Reserves Municipal Relief Fund (“Fund”).







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State treasurer distributes money in Fund to counties, school districts, and municipalities based on relative number of acres in each county, school district, or municipality as certified by the Secretary of Conservation and Natural Resources under Section 2(a) of Forest Reserves Municipal Financial Relief Law.

All money in Fund must be distributed on or before September 1 of each year.

Current Status:

Referred to House Committee on Environmental Resources and Energy on February 5, 2015.

PA House Bill 371 – Amendments to Underground Utility Line Protection Law to require use of domestic steel

Sponsor: Frank Burns (Democrat – part of Cambria County [central Pennsylvania])

Overview: Requires that any construction, alteration, repair, or maintenance of natural gas gathering lines that requires use of steel products only use steel products made in the United States.

Current Status:


PA House Bill 445 – Amendments to Underground Utility Line Protection Law (PA One Call)

Sponsor: Matthew Baker (Republican – Tioga County and part of Bradford County [northeast Pennsylvania])

Overview: Adds several definitions; new defined term “conventional oil and gas well” specifically excludes horizontal, hydraulically stimulated well bores below the Elk Group or its stratigraphic equivalent (the Marcellus and Utica Shales lie below the Elk Group); “well pad” is also a newly defined term.

Excludes “crude oil or natural gas production and gathering lines or facilities associated with conventional oil and gas well[s]” from definition of “‘line’ or ‘facility’” as used in act.

Amends certain recordkeeping and reporting requirements applicable to all industries.

Provides for annual fee assessed to users of One Call System; amount of fee is not specified in bill.

Establishes a “Damage Prevention Committee” and provides that one of the members of the committee will be a representative of the natural gas or petroleum pipeline industry; committee shall review reports of violations of act, issue warnings, and make informal determinations of administrative penalties.

Establishes Underground Utility Line Protection Fund.

Current Status:






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PA House Bill 500 – Natural Gas Severance Tax

Sponsor: Madeleine Dean (Democrat – part of Montgomery County [outside Philadelphia])

Overview: Extensive severance tax bill, with rate of “3.5% of the gross value of units severed at the wellhead during a reporting period, plus 3.5¢ per unit severed.”

Repeals sunset provision of Oil & Gas Act that would have terminated the impact fee upon passage of a severance tax, allowing imposition of both an impact fee and severance tax.

Current Status:

Referred to the House Committee on Environmental Resources and Energy on March 4, 2015.

PA House Bill 507 – Pennsylvania Disposal Well Act

Sponsor: Matt Gabler (Republican – Elk County and part of Clearfield County [northern Pennsylvania])

Overview: Provides for 1,000 foot setback, measured horizontally from the vertical well bore, for disposal wells.

Defines “disposal well” as a “permitted well that is: (1) drilled or altered to inject brines and other fluids associated with the production of oil and natural gas for disposal; or (2) classified as a Class II well and regulated under 40 CFR Pt. 144 (relating to underground injection control program).”

Current Status:


PA House Bill 522 – Telephone reporting of violations of oil and gas laws

Sponsor: Scott Conklin (Democrat – part of Centre County [central Pennsylvania])

Overview: Requires Department of Environmental Protection to establish toll-free, 24-hour telephone number maintained exclusively for the reporting of suspected violations of laws related to oil and gas.

Current Status:









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PA House Bill 523 – Amends Oil and Gas Act to require notice by newspaper publication of application for well permit


Overview: Requires applicant for well permit to publish in newspaper of general circulation in locality where well is to be located notice of filing of application, once per week, for four consecutive weeks.

Current Status:


PA House Bill 524 – Well Operation Response Team Act


Overview: Directs Secretary of Labor and Industry to promulgate rules requiring that operators “make available a certified response team” that can respond to an emergency at well site; “emergency” is not defined.

Promulgated rules also include additional training and reporting requirements imposed on operators.

Current Status:




Overview: Extensive severance tax bill, with rate of “5¢ per unit severed at the wellhead.”

Prohibits deduction of severance fee from royalty paid to mineral interest holder.

Does not address current impact fee, presumably leaving intact 58 Pa. Cons. Stat. § 2318 that would sunset the impact fee upon imposition of a severance tax.

Current Status:


PA House Bill 528 – Natural Gas Severance Tax with proceeds to LIHEAP program


Overview: Extensive severance tax bill, with rate of “10¢ per unit severed at the wellhead.”

First $300 million raised under tax to be allocated to Low-Income Home Energy Assistance Program, with any remaining amounts to be allocated to property tax or rent rebate under Taxpayer Relief Act.







http://www.legis.state.pa.us/cfdocs/legis/LI/consCheck.cfm?txtType=HTM&ttl=58&div=0&chpt=23&sctn=18&subsctn=0




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Repeals 58 Pa. Cons. Stat. § 2318 so that impact fee does not expire upon passage of severance tax.

Current Status:


PA House Bill 621 – Format of documents recording lease assignments

Sponsor: Sandra Major (Republican – parts of Susquehanna and Wayne Counties [northeast Pennsylvania])

Overview: Requires that documents presented for recordation that contain or reference multiple leases include an addendum containing (1) the names of the lessor(s), (2) the prior recording information for the leasehold interest, and (3) the property with which each lease is associated.

Allows recorder of deeds to refuse, and his/her sole discretion, to record documents incorporating by reference or exhibit more than fifty (50) leases.

Current Status:

Unanimously passed by House of Representatives on May 13, 2015.

Referred to Senate Committee on Environmental Resources and Energy on May 28, 2015.

PA House Bill 716 – Severance Tax Exemption for Manufacturing Purpose

Sponsor: Mike Carroll (Democrat – parts of Lackawanna and Luzerne Counties [northeast Pennsylvania])

Overview: Prohibits imposition of a tax on natural gas that is: (1) “sold and delivered by a producer at or near the producing site for the

processing or manufacture of tangible personal property” or (2) “provided free of charge to the surface owner of the land from which the

natural gas is severed.”

Current Status:


PA House Bill 737 – Water Obstruction and Encroachment Permits

Sponsor: Michael K. Hanna (Democrat – Clinton County and part of Centre County [north-central Pennsylvania])

Overview: Permit fee under 25 Pa. Code Ch. 105 (related to dam safety and waterway management) for a “de minimis impact project” shall be $100.00.








http://www.pacode.com/secure/data/025/chapter105/chap105toc.html

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Defines “de minimis impact project” as “the construction, maintenance, testing, repair, rehabilitation or replacement of water obstructions and encroachments that create a disturbance that affects an area not larger than 1/20 of an acre located within a floodway.”

Current Status:


PA House Bill 818 – Landowner notice of certain permit applications

Sponsor: W. Curtis Thomas (Democrat – Philadelphia)

Overview: Requires all applicants for permits under the “Air Pollution Control Act,” the “Dam Safety and Encroachments Act,” the “Clean Streams Law,” as well as applicants for water allocation permits pursuant to the Act of June 24, 1939 (P.L. 842, No. 365), to provide certain information to landowners in the “area of concern”

The “area of concern” is defined as an “area where all of the following apply”: (1) “An area affected by a radius of one-half mile from the center of a proposed

permit activity or, where an activity is not centralized, an area extending one-half mile beyond the boundary of the proposed activity;

(2) An area where one or more impacts of the type for which the Department of Environmental Protection [“DEP”] is authorized to analyze are anticipated; and

(3) An area where one or more impacts that are not included under clause (2), such as noise, vibration or odor, are reasonably anticipated to arise from the proposed permitted activity.”

The applicant must provide landowners within the “area of concern” written notice of the date of publication of the permit application in the Pennsylvania Bulletin and information addressing submission of public comments related thereto, as well as the date, location, and time of any hearing scheduled by the DEP regarding the application, provided at least five (5) days prior to the hearing date.

In addition, the applicant must give landowners within the “area of concern” written notice of:

(1) A description of the type of permit application submitted to the DEP; (2) A brief description of the activity planned for the project under the permit

application; (3) A statement that the project under the application is anticipated to have one

or more impacts on the landowners; and (4) A brief description of the anticipated impact or impacts.

Requires DEP to post each permit application on its website in its entirety.



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Current Status:

Referred to House Committee on Environmental Resources and Energy on March 23, 2015.

PA House Bill 855 – Amendments to Gas & Hazardous Liquids Pipelines Act


Overview: Transfers authority over pipeline safety inspections from Public Utility Commission to Department of Environmental Protection (“DEP”).

Specifies civil penalty of up to $1,000 per day for violations of Act by pipeline operator.

Directs DEP to submit a certification to United States Department of Transportation (“USDOT”) to authorize the DEP to enforce federal pipeline safety laws regarding intrastate pipelines within Pennsylvania.

Directs DEP to make an agreement with USDOT to authorize DEP to enforce federal pipeline safety laws regarding interstate pipelines within Pennsylvania.

Current Status:

Referred to House Committee on Consumer Affairs on April 14, 2015.

PA House Bill 1097 – Water Well Insurance Fund

Sponsor: Peter J. Daley (Democrat - parts of Fayette and Washington Counties [south of Pittsburgh])

Overview: Establishes the Water Well Insurance Board (“Board”) and Water Well Insurance Fund.

Water well owners may apply to “become a subscriber to the fund for the purpose of insuring the water well against damages from intrusion or contamination.”

Premium rates are set by the Board.

The term “contamination” is not defined in the bill.

Maximum payout under an insurance policy is capped at “replacement cost of the insured well or the maximum amount of coverage established by the fund, whichever is less.”

Bill expressly states that it “shall not be construed to relieve any person, partnership, or corporation otherwise liable from any liability for damages sustained.”

Current Status:

Referred to House Committee on Environmental Resources and Energy on May 4, 2015.





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PA House Bill 1099 – Provides for independent counsel for the Environmental Quality Board

Sponsor: John Maher (Republican – parts of Allegheny and Washington Counties [outside Pittsburgh])

Overview: Requires the Department of Environmental Protection to appoint independent counsel for the benefit of the Environmental Quality Board (“EQB”).

Independent counsel shall assist EQB on all matters, “including, but not limited to, the review of rulemaking petitions submitted to the [EQB], the drafting and development of amendments to proposed and final rulemaking and advice relating to procedural matters.”

Provides that discussions between independent counsel and EQB are privileged.

Amendments: Printer’s Number 1755: Changes scope of privilege; as amended, bill would provide that “[a]ll communication between the independent counsel and a board member shall be subject to the attorney-client privilege consistent with the rules of professional conduct.”

Current Status:

Printer’s Number 1755 passed by House of Representatives (160-28) on June 10, 2015.

Referred to Senate Committee on Environmental Resources and Energy on June 12, 2015.


Sponsor: Margo L. Davidson (Democrat – part of Delaware County [outside Philadelphia])

Overview: Extensive natural gas severance tax bill imposing a tax of (1) “[f]our and seven tenths cents for each unit of natural gas severed measured at the wellhead meter,” (2) “[f]ive percent of the average market price … of each unit of the dry natural gas derived from the natural gas severed,” and (3) “[f]ive percent of the gross value of the natural gas liquids derived from the natural gas severed as shown by the gross proceeds derived from the sale by the producer.”

Sets a price floor of $2.97 per unit for purposes of calculating tax.

Prohibits producer from making the tax an obligation of the landowner or leaseholder.

Requires every producer to obtain a license from the Department of Revenue (“Department”) “before severing natural gas from this Commonwealth.”

Imposes criminal penalties for severing gas without a license from the Department.

Does not repeal or alter the Impact Fee, meaning that both the Impact Fee and the Severance Tax are payable by producers.

Alters distribution scheme for Impact Fee revenue.






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Current Status:

Referred to the House Committee on Environmental Resources and Energy on May 12, 2015.

PA House Bill 1253 – Professional licensure of engineers, land surveyors, and geologists

Sponsor: Mark Mustio (Republican – part of Allegheny County [outside Pittsburgh])

Overview: Removes certain exemptions to the professional licensure requirement for engineers, land surveyors, and geologists.

Specifically, the following exemptions from licensure have been eliminated: • The practice of engineering, land surveying or geology, not exceeding thirty days

in the aggregate in one calendar year, by a nonresident not having a place of business in this Commonwealth;

• The practice of engineering, land surveying or geology by any person or by any employee of any copartnership, association or corporation upon property owned by such person or such copartnership, association or corporation; and

• The practice of engineering, land surveying or geology work by a manufacturing, mining, communications common carrier, research and development or other industrial corporation or by employees of such corporation, provided such work is in connection with or incidental to products of, or non-engineering services rendered by, such corporation or its affiliates.

Current Status:

Referred to House Committee on Professional Licensure on May 28, 2015.

PA House Bill 1292 – Hydraulic fracturing chemical disclosure requirements

Sponsor: Dan Frankel (Democrat – Pittsburgh)

Overview: Amends Oil and Gas Act to clarify obligations of health professionals with respect to disclosure of trade secrets and/or confidential proprietary information.

Prohibits health professional from disseminating trade secret and/or confidential proprietary information except in following instances:

• Disclosure relates to diagnosis or treatment of a patient and is provided to a person whose knowledge the health professional deems important to the diagnosis or treatment of the patient;

• The disclosure occurs during procurement of payment for services rendered or planned;

• The disclosure is provided to a public health official or is intended to further public health; or

• The disclosure is used for the study of any chemical involved.





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Removes ability of vendor, service provider, or operator to request a statement of need and a confidentiality agreement from health professional.

Current Status:

Referred to House Committee on Environmental Resources and Energy on June 5, 2015.


Sponsor: Gene DiGiorlamo (Republican – part of Bucks County [outside Philadelphia])

Overview: Extensive natural gas severance tax bill imposing a tax of (1) “[f]our and nine-tenths percent of the gross value of the dry natural gas derived from the natural gas severed as shown by the gross proceeds derived from the sale by the producer,” and (2) “[f]our and nine-tenths percent of the gross value of the natural gas liquids derived from the natural gas severed as shown by the gross proceeds derived from the sale by the producer.”







Current Status:

Referred to the House Committee on Environmental Resources and Energy on June 11, 2015.

PA House Bill 1325 – Amendments to Second Class Township Code Regarding Storm Water Facilities


Overview: Allows Board of Supervisors to enact and enforce ordinances to govern and regulate the planning, management, implementation, construction, and maintenance of storm water facilities. Allows township to assess fees based in whole or in part on the characteristics of the subject property.

Amendments: Printer’s Number 2554: Changes provision relating to fees by specifically defining classes of properties which may be assessed a fee. Provides that fee must be used for purposes of funding the construction, maintenance, and operation of storm water management facilities, systems, and management plans.






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Printer’s Number 2611: Removes language referring to Storm Water Management Act as basis for assessing fees.

Printer’s Number 3164: Adds provision limiting fees assessed to “the amount necessary to meet the minimum requirements of the Federal Water Pollution Control Act (62 Stat. 1155, 33 U.S.C. § 1251, et seq.), and federal or state laws governing the implementation of the Federal Water Pollution Control Act, for the construction, maintenance and operation of storm water management facilities, systems and management plans, as specified in 40 CFR 122.26.”

Current Status:

Printer’s Number 2611 passed by House of Representatives (150-47) on December 9, 2015. Printer’s Number 3164 passed by the Senate (48 to 1) on June 15, 2016. Printer’s Number 3164 passed by House of Representatives (136 to 59) on June 21, 2016. Printer’s Number 3164 signed into law by Governor Tom Wolf as Act 62 on July 1, 2016.

PA House Bill 1327 – Amendments to Fiscal Code

Sponsor: Michael Peifer (Republican – parts of Pike and Wayne Counties [northeast Pennsylvania])

Overview: Original bill (Printer’s Number 1788) was unrelated to oil and gas

Amendments: House Bill 1327 became the vehicle to implement provisions of General Fund budget, most of which are unrelated to oil and gas development or regulation. Provisions relevant to oil and gas development in each of the bill’s subsequent amended versions are listed below:

Printer’s Number 2650: Natural Gas Infrastructure Development Fund (“Fund”)

• Establishes the Fund in the state treasury. • Reallocates $12 million from the Alternative Energy Investment Act to the Fund

for the provision of grants to the following to obtain access to natural gas: hospitals, businesses, economic development organizations, municipalities, counties, and school districts.


http://www.legis.state.pa.us/cfdocs/legis/PN/Public/btCheck.cfm?txtType=HTM&sessYr=2015&sessInd=0&billBody=H&billTyp=B&billNbr=1325&pn=3164





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Submission of State Plan for Green House Gas Regulation • Increases from 100 to 180 days the period for the General Assembly to review

the plan developed by the Department of Environmental Protection (“Department”) prior to submission to the United States Environmental Protection Agency (“EPA”) under the EPA’s Clean Power Plan.

• Provides procedure in event General Assembly fails to approve plan proposed by Department.

Rulemaking Prohibition Related to Conventional Oil and Gas Wells • Amends Fiscal Code to prohibit Environmental Quality Board (“EQB”) from

adopting or promulgating (i) a revision of 25 Pa. Code Ch. 78 (relating to oil and gas wells) applicable to the operation of conventional oil and gas wells or (ii) a regulation applicable to the operation of conventional oil or gas wells.

• Declares any rulemaking procedure concerning conventional oil and gas wells published after November 30, 2013, to be invalid and abrogated.

• Permits EQB to conduct future rulemaking concerning conventional oil and gas wells so long as the rulemaking is accompanied by the submission of a regulatory analysis form prepared following the effective date of the bill.

• This topic also is addressed by PA Senate Bill 1011.

Printer’s Number 2694: Removes provisions in Printer’s Number 2650 related to oil and gas development.

Printer’s Number 2697: Reinserts provisions in Printer’s Number 2650 related to oil and gas development as originally proposed.

Printer’s Number 2711: No changes related to oil and gas development.

Current Status:

Printer’s Number 1788 passed unanimously by House of Representatives on November 17, 2015. Printer’s Number 2650 reported out of Senate Appropriations Committee (25 to 1) on December 9, 2015. Printer’s Number 2650 passed by Senate (48 to 2) on December 10, 2015. Printer’s Number 2694 reported out of House Rules Committee (18 to 15) on December 21, 2015. Printer’s Number 2697 reported out of House Rules Committee on December 22, 2015. Printer’s Number 2711 reported out of House Rules Committee on January 11, 2016. Printer’s Number 2711 passed by House of Representatives (111 to 81) on January 12, 2016. Printer’s Number 2711 referred to Senate Committee on Rules and Executive Nominations on January 19, 2016.



http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=HTM&sessYr=2015&sessInd=0&billBody=H&billTyp=B&billNbr=1327&pn=2711

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Sponsor: Gene DiGiorlamo (Republican – part of Bucks County [outside Philadelphia])

Overview: Extensive natural gas severance tax bill imposing a tax of (1) “[t]hree and two-tenths percent of the gross value of the dry natural gas derived from the natural gas severed as shown by the gross proceeds derived from the sale by the producer,” and (2) “[t]hree and two-tenths percent of the gross value of the natural gas liquids derived from the natural gas severed as shown by the gross proceeds derived from the sale by the producer.”

Does not set a price floor.

Allows Impact Fee to expire.





Current Status:

Referred to House Committee on Environmental Resources and Energy on June 29, 2015.

PA House Bill 1391 – Amendments to Oil and Gas Lease Act

Sponsor: Garth D. Everett (Republican – parts of Lycoming and Union counties [northern Pennsylvania])

Overview: Adds definitions for “lessee,” “lessor,” “operator,” “production unit,” “royalty,” “royalty payment,” “unconventional formation,” and “unconventional gas well.”

Requires that the minimum royalty payment to a lessor shall not be less than one-eighth of the price received by operator.

Prohibits deductions for “any” costs that would reduce royalty below one-eighth.

Applies to existing and future leases.

Provides civil remedy for failure to pay minimum royalty, including an award of attorney fees and treble damages if operator was notified by lessor of deficient payments and failed to cure within 60 days.

Current Status:

Reported out of the House Committee on Environmental Resources and Energy (20 to 7) on June 27, 2016. Referred to the House Rules Committee on June 27, 2016.





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PA House Bill 1394 – Amendments to Borough Code Regarding Storm Water Facilities


Overview: Allows borough to enact and enforce ordinances to govern and regulate the planning, management, implementation, construction, and maintenance of storm water facilities.

Allows borough to assess fees based in whole or in part on the characteristics of the subject property.


Printer’s Number 2612: Removes language referring to Storm Water Management Act as basis for assessing fees.


Printer’s Number 3306: Makes identical amendments to Third Class City Code.

Current Status:

Printer’s Number 2612 reported by House of Representatives (152-45) on December 9, 2015. Printer’s Number 3306 reported out of the Senate Committee on Local Government (10 to 1) on May 10, 2016.

PA House Bill 1517 – Natural Gas Vehicle Development Program extension

Sponsor: Tedd C. Nesbit (Republican – parts of Butler and Mercer Counties [north of Pittsburgh])

Overview: Extends Natural Gas Vehicle Development Program for three years (through 2017-2018 fiscal year) at an annual amount of $10,000,000.

Current Status:

Referred to the House Committee on Environmental Resources and Energy on September 8, 2015.









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Sponsor: Scott A. Petri (Republican – part of Bucks County [outside Philadelphia])

Overview: Extensive severance tax bill, with rate of “5% upon the market value of natural gas sold during a reporting period.”

Provides for a credit against the severance tax of “50% of the rate imposed in subsection (b) [imposing the 5% tax] upon the market value of natural gas sold and severed … through a marginal gas well”, which is defined as “[a]n unconventional gas well incapable of producing more than 4,500,000 cubic feet of gas per month during a calendar month …”

Does not address current impact fee, presumably leaving intact 58 Pa. Cons. Stat. § 2318 that would sunset the impact fee upon imposition of a severance tax.

Current Status:


PA House Bill 1605 – Amendment to Oil & Gas Conservation Act

Sponsor: R. Lee James (Republican – Venango County and part of Butler County [western Pennsylvania])

Overview: Extensive fiscal code bill by which the state implements the annual budget.

PA House Bill 1570 – Education Reinvestment Act

Sponsor: Seth Grove (Republican – part of York County [south-central Pennsylvania])

Overview: Establishes a program for the leasing of subsurface rights under state forest and park land for oil and gas development from horizontal drilling originating from well sites outside state forest or park property.

Directs that funds collected through the leasing program are to be distributed to school districts in the state according to formula provided in bill.

Current Status:










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The following provisions are relevant to oil and gas development: • Provides that the Oil & Gas Conservation Law shall not apply to or affect any

well or wells which to not penetrate the Onondaga Horizon, or in those areas in which the Onondaga Horizon is nearer to the surface than 3,800 feet, any well or wells which to not exceed a depth of 3,800 feet or any well or wells that unintentionally penetrate the Onondaga Horizon and do not intentionally produce oil or gas from the Onondaga Horizon.

• Redirects $39 million from the Environmental Stewardship Fund and other special funds to the General Fund.

• Transfers $12 million from CFA High Performance Green Buildings Program to the CFA Natural Gas Infrastructure Development Program.

• Limits transfers from Marcellus Legacy Fund to Environmental Stewardship Fund and Hazardous Sites Cleanup Fund.

Current Status:

Printer’s Number 3730 passed by Senate (45 to 5) on July 13, 2016. Printer’s Number 3730 passed by House of Representatives (124-66) on July 13, 2016. Printer’s Number 3730 signed into law by Governor Tom Wolf as Act 85 on July 13, 2016.

PA House Bill 1661 – Amendments to First Class Township Code Regarding Storm Water Facilities


Overview: Allows township to plan, design, construct, assemble, install, and alter facilities, including, but not limited to, inlets, outlets, systems of piping, diversion terraces, grass waterways, energy dissipaters, storm water retention devices, and natural or artificial infiltration areas, to manage surface water runoff.

Allows township to purchase or acquire by eminent domain all or part of any existing system or facility for management of surface water runoff.

Requires township to comply with Storm Water Management Act and any watershed storm water management plan approved by the Department of Environmental Protection (“Department”).


Printer’s Number 2765: Minor edit to remove reference to Storm Water Management Act in section concerning fee assessment.





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Current Status:

Printer’s Number 2557 reported unanimously out of the House Committee on Local Government on November 18, 2015. Printer’s Number 2765 passed by House of Representatives (164 to 25) on January 27, 2016. Printer’s Number 3166 reported out of the Senate Committee on Local Government (10 to 1) on April 12, 2016

PA House Bill 1704 – Amendments to Engineer, Land Surveyor and Geologist Registration Law


Overview: Provides for use of current term “Engineer Intern” for predecessor title of “Engineer-in-Training.”

Allows for distance learning to complete continuing professional competency requirements so long as course relates to professional practice and units awarded are verifiable and measurable by actual hours of instruction.

Amendments: Printer’s Number 2972: Minor typographical changes.

Current Status:

Printer’s Number 2972 reported unanimously out of the House Committee on Professional Licensure on March 16, 2016. Printer’s Number 2972 reported unanimously out of the House Appropriations Committee on May 18, 2016. Printer’s Number 2972 passed by House (187 to 3) on May 18, 2016. Printer’s Number 2972 referred to Senate Committee on Consumer Protection and Professional Licensure on May 26, 2016.

PA House Bill 1731 – Keystone Energy Enhancement Act

Sponsor: Mike Turzai (Republican, Speaker of the House – part of Allegheny Count [Pittsburgh])

Overview: Establishes Keystone Energy Authority (“KEA”) and provides for appointment of members thereto.







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Provides that purpose of KEA is to “further[] the development of manufacturing business, petrochemical business and other downstream business opportunities through the increased use of natural gas produced in this Commonwealth. The [KEA] shall work to increase job creation and capital investments in manufacturing, petrochemical and other downstream businesses in this Commonwealth.”

Directs KEA to cooperate with industrial development agencies, local authorities, and the Department of Community and Economic Development, Department of Environmental Protection, Department of Revenue, Public Utility Commission, and other agencies.

Directs KEA to facilitate the proliferation of transmission and distribution pipelines for the transportation of natural gas and natural gas liquids by identifying corridors for safe and efficient transmission and distribution pipelines and coordinating with regulatory agencies.

Provides for establishment by KEA of no more than twenty (20) Keystone Energy Enhancement Zones (“Zones”), each not to exceed 500 acres, comprised of “deteriorated property.”

Individuals and businesses within a Zone are entitled to tax exemptions, deductions, abatements, or credits as provided in Act.

Provides that individuals, businesses, or political subdivisions may apply to have a property designated as a Zone, but must include in the application a detailed strategic plan as described in the Act.

Extensive description of tax benefits for qualified businesses, including job creation tax credit of up to $1,250 per job after 2020.

Establishes Keystone Energy Enhancement Fund.

Current Status:

Referred to House Committee on Commerce on December 3, 2015.


Sponsor: James R. Santora (Republican – part of Delaware County [outside Philadelphia])

Overview: Extensive severance tax bill, with rate of “4% of the gross value of units severed at the wellhead during a reporting period.”


Current Status:

Referred to the House Committee on Environmental Resources and Energy on December 6, 2015.



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PA House Bill 1825 – Acid Mine Drainage

Sponsor: Tommy Sankey (Republican – parts of Cambria and Clearfield Counties [central Pennsylvania])

Overview: Amends Land Recycling and Environmental Remediation Standards Act (commonly known as Act 2) to add definitions and to add Chapter 8 regarding “Beneficial Use of Abandoned Mine Drainage.”

Provides immunity to “landowner, person or water pollution abatement operator who provides equipment, funding, materials or services for a water pollution abatement project for beneficial use.”

Requires that party seeking immunity must submit water pollution abatement plan to Department of Environmental Protection for approval, and requires Department to review and approve plan if it is likely to improve water quality of mine drainage or mine pool and is not likely to exacerbate water pollution.

Current Status:


PA House Bill 1846 – Amendment to Oil & Gas Act

Sponsor: Scott A. Petri (Republican – part of Bucks County [outside Philadelphia])

Overview: Requires an operator seeking to use the Pennsylvania Turnpike’s right-of-way for gas transmission lines to have a valid fee agreement with the Pennsylvania Turnpike Commission.

Requires Pennsylvania Turnpike Commission to promulgate regulations relating to the commercial use of the Pennsylvania Turnpike’s right-of-way for gas transmission lines.

Current Status:


PA House Bill 2030 – Amendment to Pennsylvania Climate Change Act

Sponsor: Steven J. Santarsiero (Democrat – part of Bucks County [outside Philadelphia])

Overview: Amends Pennsylvania Climate Change Act (“Act”) to require that the action plan mandated under Section 7 of the Act, “when combined with existing efforts in this Commonwealth to reduce [greenhouse gas] emissions, will cumulatively result in a total [greenhouse gas] emissions reduction of 50% lower than 2005 levels no later than December 31, 2030.”







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Action plan mandated under Section 7 of the Act must: provide a schedule of economically feasible benchmarks for greenhouse gas emissions reduction goals; recommend to the governor any administrative changes necessary to increase collaboration between Department of Environmental Protection (“Department”) and other state agencies; identify actions that the Department may take and incentives that Department may utilize without legislative action by the General Assembly that will achieve goals.

Current Status:



Sponsor: P. Michael Sturla (Democrat – part of Lancaster County [south central Pennsylvania])

Overview: Extensive severance tax bill, with rate varying based upon market price of natural gas: • 4% when market price of gas is between $0 and $0.99 per mcf; • 5% when market price of gas is between $1.00 and $1.99 per mcf; • 6% when market price of gas is between $2.00 and $2.99 per mcf; • 7% when market price of gas is between $3.00 and $3.99 per mcf; • 8% when market price of gas is between $4.00 and $4.99 per mcf; • 9% when market price of gas is above $5.00 per mcf.

Current impact fee would remain, but credit against severance tax would be given for amounts paid as a result of impact fee.

Current Status:

Referred to House Committee on Energy and Natural Resources on May 25, 2016.

PA House Bill 2114 – Pennsylvania Water Resource Act

Sponsor: P. Michael Sturla (Democrat – part of Lancaster County [south central Pennsylvania])

Overview: Requires extraordinary water users to register with the Department of Environmental Protection (“DEP”) and provide information on the water to be withdrawn, including source, amount, and destination.

Implements a fee of $0.0001/gallon for water withdrawals over 10,000 gallons returned to the water source, and $0.001/gallon for water withdrawals over 10,000 gallons that is “consumed.”

Defines “Extraordinary water user” as a person that withdraws more than 10,000 gallons of water a day from the waters of the Commonwealth “for the purpose of for-profit business.”





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Establishes a “Water Use Fund” from which appropriations are made to the DEP, Department of Conservation and Natural Resources, and the Pennsylvania Fish & Boat Commission.

Authorizes a referendum on the issue of whether “to incur an indebtedness of up to $3,000,000,000 … for the issuance of bonds for the maintenance and protection of watersheds, water resources, the furthering of water conservation and other water-related environmental initiatives.”

Current Status:

Referred to House Committee on Consumer Affairs on June 27, 2016.


Sponsor: Stephen McCarter (Democrat – part of Montgomery County [outside Philadelphia])


Current impact fee would remain.

Current Status:


PA House Bill 2223 – Waste Disposal Fees to Support Environmental Programs

Sponsor: Michael K. Hanna (Democrat – Clarion County and part of Centre County [central Pennsylvania])

Overview: Creates additional waste disposal fees to be paid by operators of landfills for purpose of continuing to fund Environmental Stewardship Fund.

Removes annual appropriation of $35,000,000 from the Oil & Gas Lease Fund to the Marcellus Legacy Fund for distribution to the Environmental Stewardship Fund.

Bill sponsor states, in sponsorship memorandum, that “[w]ithout new revenue, Environmental Stewardship Fund programs could be reduced due to declining revenues in the Oil and Gas Lease Fund, which provides annual funding to the Environmental Stewardship Fund and the Hazardous Sites Cleanup Fund.”

Current Status:






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PA House Bill 2249 – Amendment to Safe Drinking Water Act

Sponsor: David H. Zimmerman (Republican – part of Lancaster County [south-central Pennsylvania])

Overview: Amends definition of “public water system” to specifically exempt “a facility that both is owned by a church, association of churches or other religious order, body or institution which qualifies for exemption from taxation … and relies upon a privately owned water well for its drinking water supply.”

Current Status:

Referred to House Committee on Environmental Resources and Energy on July 10, 2016.

PA House Resolution 316 – Study to Expand Availability of Natural Gas in Pennsylvania

Sponsor: Kevin J. Schreiber (Democrat – part of York County [south-central Pennsylvania])

Overview: Directs the Legislative Budget and Finance Committee (“Committee”) to conduct a study on the issue of expanding the availability of natural gas to Pennsylvania homes, businesses, nonprofit organizations and units of government.

Specifically directs the committee to consider whether there is a need for particular types of infrastructure to address gaps in the availability of natural gas service.

Current Status:

Referred to House Committee on Environmental Resources and Energy on May 5, 2015.

PA House Resolution 388 – Accounting of Marcellus Legacy Fund

Sponsor: Kate Harper (Republican – part of Montgomery County [outside Philadelphia])

Overview: Directs House Legislative Budget & Finance Committee to report on expenditures and distributions made from the Marcellus Legacy Fund, which receives 40% of the revenue collected under the Commonwealth’s Unconventional Gas Well Fund.

Current Status:




http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=H&type=R&bn=0316


http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=H&type=R&bn=0388


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Concurrent resolution

PA Concurrent Resolution – Disapproving the Environmental Protection Standards at Oil & Gas Well Sites Regulations Submitted by the Environmental Quality Board

Overview: Pursuant to Section 7(d) of the Regulatory Review Act, disapproves of the action by the Independent Regulatory Review Commission, on April 21, 2016, to approve the “Environmental Protection Standards at Oil & Gas Well Sites” Regulations concerning Chapter 78 of the Pennsylvania Code.

Current Status:

Reported (19 to 8) out of House Committee on Environmental Resources and Energy on May 3, 2016.

Senate

PA Senate Bill 53 – Amends Oil and Gas Act related to lease disclosure and indemnification

Sponsor: Stewart J. Greenleaf (Republican – parts of Bucks and Montgomery Counties [outside Philadelphia])

Overview: Requires operator, prior to executing an oil and gas lease, to disclose to lessor that lessor may be liable to other landowners for damages resulting from drilling.

Requires an oil and gas lease to contain an indemnification provision that holds landowner harmless from any and all liability, including environmental liability, arising out of operator’s operations pursuant to the lease.

Current Status:

Referred to the Senate Committee on Environmental Resources and Energy on January 14, 2015.

*PA Senate Bill 53 is a reintroduction of PA Senate Bill 154 from the 2013-2014 session of the Pennsylvania General Assembly.

PA Senate Bill 64 – Distribution of impact fee


Overview: Appropriates $3 million per year from revenue received from the impact fee to be directed to the Department of Health in order to:

• conduct research to determine whether health services are adequate in regions where unconventional gas operations occur and

• conduct research on effects of air quality in regions where unconventional gas operations occur.

Current Status:

Referred to Senate Committee on Environmental Resources and Energy on January 14, 2015.

http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2015&sind=0&body=S&type=B&bn=53

http://www.legis.state.pa.us/cfdocs/legis/home/member_information/senate_bio.cfm?id=173



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PA Senate Bill 116 – Natural Gas Severance Tax

Sponsor: James R. Brewster (Democrat – parts of Allegheny and Westmoreland Counties [outside Pittsburgh])

Overview: Extensive natural gas severance tax bill imposing a tax of (1) “[f]our and seven tenths cents for each unit of natural gas severed measured at the wellhead meter,” (2) “[f]ive percent of the average market price … of each unit of the dry natural gas derived from the natural gas severed,” and (3) “[f]ive percent of the gross value of the natural gas liquids derived from the natural gas severed as shown by the gross proceeds derived from the sale by the producer.”







Current Status:

Referred to the Senate Committee on Environmental Resources and Energy on May 14, 2015.

PA Senate Bill 145 – Amends Oil and Gas Act to mandate Pugh Clause

Sponsor: Gene Yaw (Republican – Bradford, Lycoming, Sullivan, and Union Counties and part of Susquehanna County [northern tier])

Overview: Provides that operations and production on a unit into which a leasehold has been unitized shall not maintain a lease into the secondary term for portions of the leasehold not included in the unit.

Applies only to lease interests in unconventional reservoirs, defined to include formations below the Elk Sandstone or its stratigraphic equivalent, and which can be economically produced only through the use of horizontal drilling and hydraulic fracturing.

Applies only to leases entered into on or after the passage of the bill.

Current Status:


http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=S&type=B&bn=0116




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PA Senate Bill 147 – Amendments to Oil & Gas Lease Act


Overview: Adds definitions for (i) Lessee and (ii) Lessor.

Adds “unique property identification” as one piece of information required on check stub/payment information.

Adds a section regarding information to be provided in case of a joint venture.

Adds a section allowing for inspection of records.

Adds definitions for Joint Venture. Revises the section dealing with “Accumulation of Proceeds from Production.”

Amendments: Printer’s Number 0177: Extends date by which to royalties must be paid to lessor from sixty (60) days to ninety (90) days following production. Printer’s Number 0238: Provides that information contained in records inspected by lessor may not be disclosed to any other person except an attorney or accountant employed by lessor.

Current Status:

Printer’s Number 0238 passed unanimously by the Senate on January 28, 2015. Referred to House Committee on Environmental Resources and Energy on February 2, 2015.


PA Senate Bill 148 – Natural Gas Lease Anti-Retaliation Act


Overview: Prohibits retaliation by lessee when the lessor takes a “good faith action.” “Good faith action” is defined as “A claim, demand or complaint intended to secure rights granted under a lease or to determine whether the terms of a lease are being complied with, including, but not limited to, a request for an accounting of any costs, taxes or fees allowed to be deducted from royalty payments by lessee, that is made without malice or ulterior motive and which the lessor or a party acting on the lessor's behalf reasonably believes to be valid and legally correct.”

Allows a private civil action; must be within 1 year of alleged violation.



http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2015&sessInd=0&billBody=S&billTyp=B&billNbr=0147&pn=0177




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Statutory defense to liability if lessee “proves by a preponderance of the evidence that the action by the lessee was authorized under the terms of the lease or occurred for legitimate business reasons.”

Damages available: “reasonable damages” and a “civil fine of up to $1,000 per day for each day the provisions of section 3 have been violated.” But, a court that “finds that an action has been instituted for other than a good faith action as defined in this act may order the lessor to pay reasonable damage to the lessee.”

Current Status:

Passed unanimously by the Senate on January 28, 2015. Referred to House Committee on Environmental Resources and Energy on February 2, 2015.


PA Senate Bill 257 – Private water supply testing and public disclosure of results

Sponsor: Wayne D. Fontana (Democrat - part of Allegheny County [including Pittsburgh])

Overview: Requires Department of Environmental Protection (“DEP”) to sample and test private water supplies upon request by owner.

Results of testing of private water supplies must be provided to owner and must be disclosed publicly on DEP website.

Current Status:





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PA Senate Bill 279 – Pennsylvania Grade Crude Development Advisory Council Act

Sponsor: Scott E. Hutchinson (Republican – Clarion, Forest, Venango, and parts of Butler and Warren Counties [northwest Pennsylvania]; member of the Environmental Resources & Energy Committee)

Overview: Establishes the named Council and provides for its tasks: • Study and recommend technical regulations and policies that impact the

conventional oil and gas industry; • Explore the development of a regulatory scheme for oversight and enforcement

of the conventional oil and gas industry; • Promote long-term viability of conventional oil and gas industry;; • Issue a report of findings and recommendations, within 180 days of effective

date of Act, to listed state officers; • Assist Secretary of Department of Environmental Protection (“DEP”) and provide

written comments on new DEP policy that will impact conventional oil and gas industry;

• Review and comment on all technical regulations under Oil and Gas Act; • Provide institutional support to conventional oil and gas industry; • Recommend measures to promote and develop conventional oil and gas

industry; • Develop plan to increase PA grade crude production;

• Develop joint working group with DEP to explore and develop economically

viable production water management options; and • Produce annual report of activities and recommendations.

Provides 2 duties to DEP: • Consult with Council on all policies/technical regulations promulgated under Oil

and Gas Act; • Include written comments of the Council as part of submission to Environmental

Quality Board; and • Provide technical assistance to Council to enable Council to carry out duties.

Amendments: Printer’s Number 0444: Adds Secretary of Environmental Protection to list of recipients of annual report produced by Council.




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Printer’s Number 1903: Abrogates the revisions promulgated by the Department of Environmental Protection to the Chapter 78 regulations concerning oil and gas operations as those proposes revisions relate to conventional oil and gas wells. Requires that any future rulemaking involving conventional oil and gas operations be “undertaken separately and independently of unconventional wells” and include a regulatory analysis form submitted to the Independent Regulatory Review Commission that is restricted to the subject of conventional oil and gas wells.

Current Status:

Printer’s Number 0444 passed by the Senate Committee on Appropriations on February 17, 2015. Passed unanimously by Senate on February 18, 2015. Printer’s Number 1903 reported (18 to 5) by the House Committee on Environmental Resources and Energy on June 8, 2016. Printer’s Number 1903 passed by the House of Representatives (141 to 46) on June 15, 2016. Printer’s Number 1903 passed by Senate (37 to 12) on June 15, 2016. Printer’s Number 1903 signed into law by Governor Tom Wolf as Act 52 on June 23, 2016.

*PA Senate Bill 279, as introduced, was a reintroduction of PA Senate Bill 1310 from the 2013-2014 session of the Pennsylvania General Assembly.

PA Senate Bill 307 – Provides for independent counsel for the Environmental Quality Board

Sponsor: John T. Yudichak (Democrat – Carbon County and part of Luzerne County [northeast Pennsylvania])

Overview: Requires the Department of Environmental Protection to appoint independent counsel for the benefit of the Environmental Quality Board (“EQB”).

Independent counsel shall assist EQB on all matters, “including, but not limited to, the review of rulemaking petitions submitted to the [EQB], the drafting and development of amendments to proposed and final rulemaking and advice relating to procedural matters.”

Provides that discussions between independent counsel and EQB are privileged.

Amendments: Printer’s Number 1138:

Changes scope of privilege; as amended, bill would provide that “[a]ll communication between the independent counsel and a board member shall be subject to the attorney-client privilege consistent with the rules of professional conduct.” Printer’s Number 2015: Adds provision regarding distribution of money from the State Racing Fund by the Department of Agriculture; unrelated to oil and gas development.

http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=HTM&sessYr=2015&sessInd=0&billBody=S&billTyp=B&billNbr=0279&pn=1903




http://www.legis.state.pa.us/cfdocs/legis/PN/Public/btCheck.cfm?txtType=HTM&sessYr=2015&sessInd=0&billBody=S&billTyp=B&billNbr=0307&pn=2015

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Current Status:

Passed unanimously by Senate on June 25, 2015. Printer’s Number 1138 reported (20-6) out of House Committee on Environmental Resources and Energy on June 29, 2015. Printer’s Number 2015 passed by House of Representatives (157 to 37) on July 12, 2016. Printer’s Number 2015 referred to Senate Committee on Rules and Executive Nominations on July 13, 2016.

PA Senate Bill 313 – Unconventional Oil and Gas Unit Conservation and Integration Act

Sponsor: Gene Yaw (Republican – Bradford, Lycoming, Sullivan, Union, and part of Susquehanna Counties [northeast Pennsylvania]; Chair, Senate Committee on Environmental Resources and Energy)

Overview: Applies only to unconventional reservoirs below the base of the Elk Sandstone or its stratigraphic equivalent, other than coal bed methane.

Provides for compulsory creation of drilling and production units.

Public Utility Commission (“PUC”) may, upon application, order creation of unit where applicant demonstrates that the plan for establishment of the unit will minimize surface disruption, impact to property, or other environmental impact.

PUC also may consider whether establishment of unit will permit optimal development of oil and gas resources.

Provides for rights of protest by certain defined individuals and/or entities.

Provides for 250-foot setback for laterals from boundary of unit.

Voluntary units (i.e. permitted by lease) are declared per se reasonable and subject to modification only in certain circumstances.

Repeals Oil and Gas Conservation Law.

Current Status:



PA Senate Bill 347 – Protection of water supplies

Sponsor: John T. Yudichak (Democrat – Carbon County and part of Luzerne County [Wilkes-Barre])

Overview: Amends Chapter 32 of the Oil & Gas Act to provide the following: • Provides more time for the Department of Environmental Protection (“DEP”) to

conduct an investigation into alleged pollution or diminution of water supply





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where “migration of natural gas is involved”; • Requires DEP to publish on its website “lists of probable cases of subterranean

water supply contamination that are supported by credible evidence”; • Requires DEP to inspect each unconventional well site at least once per year

after well begins production; and • Requires DEP to maintain records on generation, transportation, and disposal of

drill cuttings.

Current Status:


PA Senate Bill 348 – Leasing of state forest lands

Sponsor: John T. Yudichak (Democrat – Carbon County and part of Luzerne County [Wilkes-Barre])

Overview: Department of Conservation and Natural Resources (“DCNR”) must hold at least one public hearing prior to entering into any lease for development of natural gas underlying state forests or parks.

• Act appears to apply regardless of whether surface development actually occurs on state lands.

DCNR must “attempt to acquire” subsurface rights in order to protect state forest or park land if the land has “unique environmental, natural, historical, or cultural features” making it “especially worth of permanent preservation.”

Current Status:



PA Senate Bill 367 – PA One Call System Applicability to Gathering Lines

Sponsor: Donald C. White (Republican – Armstrong and Indiana Counties and parts of Butler and Westmoreland Counties [outside Pittsburgh])

Overview: Amends Underground Utility Line Protection Law to include natural gas gathering lines within the definition of “line” or “facility,” such that owners and operators of gathering lines must specifically comply with One Call System requests.

Current Status:

Referred to the Senate Committee on Consumer Protection and Professional Licensure on January 30, 2015.





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PA Senate Bill 375 – Marcellus Shale Health Advisory Panel

Sponsor: Joseph B. Scarnati III (Republican – Cameron, Clinton, Elk, Jefferson and McKean Counties and part of Clearfield County [northern Pennsylvania]; President Pro Tempore)

Overview: Establishes the “Health Advisory Panel on Shale Gas Extraction and Natural Gas Use.”

Provides for composition and appointment of nine-member panel, and for meetings to occur no less frequently than biannually.

Duties of the panel include: • Consult with experts involved with extraction and use of natural gas in

Pennsylvania; • Consult with Pennsylvania Department of Health (“DOH”) to review public health

data relating to areas where shale gas extraction occurs and the benefits of the use of natural gas;

• Consult with experts regarding potential public health effects from extraction and use of natural gas;

• Evaluate public health data regarding extraction and use of natural gas, as well as information on extraction techniques, in order to provide government and public with information and analysis of safe, efficient, and environmentally responsible extraction and use of natural gas; and

• Submit annual report on activities to Governor and General Assembly.

Panel sunsets in six years.

Current Status:

Recommitted to the Senate Appropriations Committee on March 3, 2015.

PA Senate Bill 380 – Disease and Cancer Cluster Coordination Act

Sponsor: John T. Yudichak (Democrat – Carbon County and part of Luzerne County [northeast Pennsylvania])

Overview: Department of Health (“DOH”), in consultation with Department of Environmental Protection (“DEP”), must develop guidelines for investigation of “suspected or potential disease or cancer clusters,” “the pollutants or toxic substances that may be associated with” the clusters, and “the potential causes of” the clusters.

The guidelines must include definitions and standardized methods for reviewing and using data.

DOH, in consultation with DEP, may establish a “disease and cancer cluster response team” under direction of DOH to conduct investigations of clusters, environmental pollutants and toxic substances associated with clusters, and potential causes of clusters.

Any person may petition DOH requesting a response team conduct an investigation.





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Provides for creation of advisory committees, made up of impacted individuals and state and local officials, in areas where investigations is being conducted.

Current Status:

Referred to Senate Committee on Public Health and Welfare on February 3, 2015.

PA Senate Bill 395 – Education for Extraction Tax

Sponsor: James R. Brewster (Democrat – parts of Allegheny and Westmoreland Counties [Pittsburgh area])

Overview: Imposes an “Extraction for Education Tax” of “5% of the gross value of the units severed at the wellhead during the reporting period.”


Allows producer subject to tax to receive a credit for impact fee paid under Chapter 23 of Oil & Gas Act so that total liability for both impact fee and “Extraction for Education Tax” is no greater than 5% of gross value at wellhead.

Establishes “Extraction for Education Fund” to be distributed to school districts across state based on “basic education formula” provided in Section 123 of Public School Code of 1949.

Current Status:

Referred to Senate Committee on Environmental Resources and Energy on February 5, 2015.

PA Senate Bill 413 – Amendments to Sections of Pennsylvania Consolidated Statutes Concerning Administrative Law & Procedure

Sponsor: Richard L. Alloway II (Republican – Adams County and parts of Cumberland, Franklin, and York Counties [southcentral Pennsylvania])

Overview: Extensively revises Pennsylvania Consolidated Statutes, Title 2, Chapter 5, Subchapter A (2 Pa. Cons. Stat. 501, et seq.) and renames Subchapter A as the Administrative Procedure Act.

Scope of revisions includes: (i) procedure for notice and opportunity to be heard; (ii) qualifications of “presiding officers” and procedure for recusal or disqualification; (iii) conduct of hearing; (iv) public access to hearing; (v) evidence at hearing; and (vi) decisions and orders; reconsideration.

Establishes new Office of Administrative Hearings (“OAH”) as an independent office of the Executive Department.

OAH shall be headed by a chief administrative law judge (“Chief ALJ”) appointed by governor with advice and consent of senate.





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Chief ALJ appoints all administrative law judges and assigns them to all administrative proceedings.

Provides for judicial review of adjudications of Commonwealth agencies.

Current Status:

Referred to the House Committee on State Government on February 12, 2015.


Sponsor: Arthur L. Haywood III (Democrat – Philadelphia and part of Montgomery County)



Current Status:

Referred to Senate Committee on Environmental Resources and Energy on April 6, 2015.

PA Senate Bill 417 – Amendment to Oil and Gas Act to require use of steel made in United States


Overview: Amends 58 Pa. Cons. Stat. § 3219 (“Use of Safety Devices”) to require use of steel products made in United States for casing and other safety devices mandated by law.

Current Status:

Referred to the Senate Committee on Environmental Resources and Energy on February 12, 2015.


PA Senate Bill 418 – Amendment to Underground Utility Line Protection Law


Overview: Requires use of steel products made in United States when constructing, reconstructing, repairing, altering, improving, or maintaining gathering lines requiring use of steel products.

Current Status:

Referred to the Senate Committee on Consumer Protection and Professional Licensure on February 12, 2015









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PA Senate Bill 419 – Amendment to Oil and Gas Act to require publication of country of origin of steel products


Overview: Amends 58 Pa. Cons. Stat. § 3222 to require Department of Environmental Protection to establish a publicly accessible website containing information about country of origin of steel products.

Steel products will only be considered to be United States steel products if “at least 75% of the cost of the articles, materials and supplies have been mined, produced or manufactured in the United States.”

Current Status:



PA Senate Bill 455 – Amendment to Solid Waste Management Act

Sponsor: John C. Rafferty, Jr. (Republican – parts of Berks, Chester, and Montgomery Counties [outside Philadelphia])

Overview: Increases criminal penalties for violation of statute related to storage, transportation, treatment, processing, or disposal of hazardous waste.

Current Status:



Sponsor: Thomas McGarrigle (Republican – parts of Chester and Delaware Counties [outside Philadelphia])

Overview: Extensive severance tax bill, with rate of “4% of the gross value of the units severed at the wellhead during a reporting period.”

Proceeds to be deposited into “Severance Tax for Education Fund.”

Current Status:









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PA Senate Bill 551 – Physician Hydraulic Fracturing Chemical Disclosure

Sponsor: Daylin Leach (Democrat – parts of Delaware and Montgomery Counties [outside Philadelphia])

Overview: Amends 58 Pa. Cons. Stat. § 3222.1 of the Oil & Gas Act to remove requirement that health professional make request for information concerning chemicals in writing.

Prohibits health professional from disseminating trade secret or confidential proprietary information except in following instances:

• Disclosure relates to diagnosis or treatment of patient and disclosure is provided to another health professional, the patient, a designee of the patient, or any other person whose knowledge the health professional deems important to the diagnosis or treatment of the patient or the prevention of future health issues;

• Disclosure occurs during procurement of payment for services rendered or planned;

• Disclosure is provided to a public health official or is intended to further public health; or

• Disclosure is used for the study of any chemical involved.

Current Status:

Referred to Senate Committee on Environmental Resources & Energy on February 25, 2015.

PA Senate Bill 557 – Pipeline Impact Fee


Overview: Adds Chapter 24 to Oil & Gas Act imposing a fee on use of natural gas gathering and transmission lines through “affected areas.”

The fee is “based on acreage of linear feet plus right-of-way width using the county average land value in an affected area.”

The fee collected under the bill is to be deposited into the newly-established Pipeline Impact Fund.

Money in the Pipeline Impact Fund is to be distributed to counties and municipalities in which the “affected area” is located.






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“Affected area” is defined a “high consequence area” as that term is defined in 49 C.F.R. § 192.903, which itself defines the term “high consequence area” by reference to 49 C.F.R. § 192.5 through measurement of distances to nearby buildings, structures, and areas.

Current Status:

Referred to the Senate Committee on Environmental Resources and Energy on March 6, 2015.

PA Senate Bill 561 – Amendments to Gas and Hazardous Liquids Pipelines Act


Overview: Replaces Public Utility Commission with the Department of Transportation (“PennDOT”) as responsible agency.

Directs PennDOT to apply for federal delegation for Commonwealth pipeline safety for purposes of enforcement of federal hazardous liquid pipeline safety requirements.

Establishes minimum duties for PennDOT in the event of delegation by federal government, including inspection, fee collection, testing of substances, and filing of reports.

Requires PennDOT to seek federal authority to adopt safety standards for interstate gas pipelines.

Current Status:

Referred to the Senate Committee on Consumer Protection and Professional Licensure on March 6, 2015.


PA Senate Bill 571 – Amends Safe Drinking Water Act

Sponsor: Charles T. McIlhinney, Jr. (Republican – part of Bucks County [outside Philadelphia])

Overview: Prohibits Department of Environmental Protection (“DEP”) from issuing permits for activity within defined distance from public or community water supplies unless applicant demonstrates that activity will not degrade the existing water quality.

• Distance varies by type of water supply.

Directs municipalities to adopt wellhead and surface water intake protection ordinances to regulate land use that could contaminate groundwater or surface water that supplies community water systems.

• Language to be included within ordinance varies by type of water supply.

Current Status:

Referred to the Senate Committee on Environmental Resources and Energy on March 2, 2015.

http://www.ecfr.gov/cgi-bin/text-idx?SID=4fe057a9cf0acb085ad99c61a48c4174&node=se49.3.192_1903&rgn=div8







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PA Senate Bill 572 – Amends Municipalities Planning Code

Sponsor: Charles T. McIlhinney, Jr. (Republican – part of Bucks County [outside Philadelphia])

Overview: Prohibits Zoning Hearing Board from intervening or otherwise becoming a party in a land use appeal.

Current Status:

Referred to the Senate Committee on Local Government on March 2, 2015.

PA Senate Bill 653 – Water Well Construction Standards

Sponsor: Patricia H. Vance (Republican – parts of Cumberland and York Counties [Harrisburg area])

Overview: Amends Title 27 (Environmental Resources) of the Pennsylvania Consolidated Statutes to include chapter providing for water well construction standards.

Requires Environmental Quality Board (“EQB”) to promulgate rules and regulations adopting construction and decommissioning standards for water wells.

Provides criminal penalties for construction of water wells not in compliance with standards adopted by EQB.

Department of Environmental Protection and Department of Conservation of Natural Resources may not require permits to construct or decommission water wells.

Counties or municipalities with water well construction standards consistent with those adopted by EQB under this chapter are exempt.

Current Status:

Referred to Senate Committee on Environmental Resources and Energy on March 23, 2015.

*PA Senate Bill 653 is substantially similar to PA Senate Bill 1461 from the 2013-2014 session of the Pennsylvania General Assembly.

PA Senate Bill 655 – Amendments to Fiscal Code

Sponsor: Patrick M. Browne (Republican – part of Lehigh County [Allentown])

Overview: As introduced, did not have impact on oil and gas development.







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Amendments: Printer’s Number 1137: Companion bill to annual state budge containing extensive amendments to fiscal code on variety of matters not generally related to oil and gas development. Prohibits adoption or promulgations by Environmental Quality Board (“EQB”) of revisions to 25 Pa. Code Ch. 78 (“Chapter 78”) relating to conventional oil and gas wells that were promulgated before effective date of bill. Declares that EQB’s Chapter 78 rulemaking related to conventional oil and gas wells “is invalid as not in compliance with the rulemaking standards of the” Regulatory Review Act. Does not address EQB’s Chapter 78 rulemaking with respect to unconventional oil and gas wells.

Current Status:

Printer’s Number 1137 reported (20-15) out of House Committee on Appropriations on June 28, 2015.

Printer’s Number 1137 passed by House (107-87) on June 29, 2015.

Printer’s Number 1137 reported (11-6) out of Senate Committee on Rules and Executive Nominations on June 30, 2015.

Printer’s Number 1137 passed by Senate (30-19) on June 30, 2015. Printer’s Number 1137 vetoed by Governor Tom Wolf on July 2, 2015.

PA Senate Bill 801 – Publication of Permits by DEP

Sponsor: Andrew E. Dinniman (Democrat – part of Chester County [outside Philadelphia])

Overview: Requires Department of Environmental Protection (“DEP”) to publish, on DEP’s website, the entirety of applications and supporting materials filed with the DEP related to the following permits:

• Air quality permits under the “Air Pollution Control Act”; • Water allocation permits under the “Water Rights Law”; • Water obstruction permits under the “Dam Safety and Encroachments Act”; • Water quality permits, except those relating to coal mining activities, under the

“Clean Streams Law”; and • Solid waste and hazardous waste permits under the “Solid Waste Management

Act.”

Current Status:

Referred to the Senate Environmental Resources and Energy Committee on May 14, 2015.




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PA Senate Bill 802 – Notification of pipeline construction


Overview: Requires notice and information to be given to landowners within a half mile from boundary of proposed activity requiring certain permits.

Permits for which notice and information must be given include: • Air quality permits under the “Air Pollution Control Act”; • Water allocation permits under the “Water Rights Law”; • Water obstruction permits under the “Dam Safety and Encroachments Act”;

and • Water quality permits, except those relating to coal mining activities, under the

“Clean Streams Law.”

Information provided in notice includes the following: • A description of the type of permit application; • Brief description of activity planned for project; • Statement that project activity is anticipated to have one or more impacts on

landowner(s); and • Brief description of anticipated impact(s).

Notice must be given within 30 days of submission of application for permit.

Current Status:


PA Senate Bill 803 – Protection of Act 43 farmland


Overview: Amends Agricultural Area Security Law to require approval by Agricultural Lands Condemnation Approval Board of pipeline projects that would involve condemnation of land used for “productive agricultural purposes” by Pennsylvania Public Utility Commission and/or Federal Energy Regulatory Commission.

Applies only to the following county classes: • First Class (Philadelphia County);

• Second Class and Second Class A (Allegheny, Bucks, Delaware, and Montgomery counties); and

• Third Class (Berks, Chester, Cumberland, Dauphin, Erie, Lackawanna, Lancaster, Lehigh, Luzerne, Northampton, Westmoreland, and York counties).





44



Information provided in notice includes the following: • A description of the type of permit application; • Brief description of activity planned for project; • Statement that project activity is anticipated to have one or more impacts on

landowner(s); and • Brief description of anticipated impact(s).

Current Status:


PA Senate Bill 804 – Amends Gas and Hazardous Liquids Pipelines Act


Overview: Pipeline operators purchasing or obtaining an easement for public land, agricultural-easement land, or permanently preserved land for new or expanded pipelines must purchase or grant an easement for an equivalent section of land within the respective county for recreational use.

Easement replacement obligation applies only to the following county classes: • First Class (Philadelphia County);

• Second Class and Second Class A (Allegheny, Bucks, Delaware, and Montgomery counties); and

• Third Class (Berks, Chester, Cumberland, Dauphin, Erie, Lackawanna, Lancaster, Lehigh, Luzerne, Northampton, Westmoreland, and York counties).

Pipeline operator engaged in construction or replacement of pipelines involving the alteration or development of land must ensure that post-construction volume and maximum rate of storm water runoff does not exceed pre-construction levels.

Current Status:


PA Senate Bill 845 – Licensing of Soil Scientists

Sponsor: Judith L. Schwank (Democrat – part of Berks County)

Overview: Requires soil scientists to be licensed and provides for qualifications for same.

Current Status:

Referred to the Senate Committee on Consumer Protection and Professional Licensure on May 20, 2015.





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PA Senate Bill 875 – Treated Mine Water Act

Sponsor: Camera Bartolotta (Greene County and parts of Beaver and Washington counties [southwestern Pennsylvania])

Overview: Provides immunity from liability to mine operators for use of treated mine water used in oil or gas well development.

Provides immunity from liability for treatment or abatement of mine drainage or mine pool water to persons who acquire treated mine water for use in oil or gas development.

Does not remove liability for unlawful spills or releases.

Treated mine water that meets the effluent limits of the NPDES permit for the source mine and is being used for oil or gas development shall not be considered a solid waste as defined by the Solid Waste Management Act.

Amendments: Printer’s Number 1187:

Adds section stating that “[t]reated mine water and mine drainage are not residual waste or solid waste for purposes of the … Solid Waste Management Act.”

Current Status:

Original bill reported (10-1) out of Senate Committee on Environmental Resources and Energy on June 22, 2015.

Original bill passed by Senate (34-15) on June 25, 2015.

Original bill reported (24-2) out of House Committee on Environmental Resources and Energy on June 29, 2015.

Printer’s Number 1187 reported out of House Committee on Appropriations (27 to 9) on September 21, 2015. Printer’s Number 1187 passed by House of Representative s (160 to 37) on September 21, 2015 Printer’s Number 1187 reported out of Senate Committee on Rules and Executive Nominations (10 to 5) on September 29, 2015. Printer’s Number 1187 passed by Senate (29-18) on September 29, 2015. Printer’s Number 1187 signed into law as Act 47 by Governor Tom Wolf on October 8, 2015.

PA Senate Bill 886 – Affordable Energy Development Zones Act

Sponsor: Scott E. Hutchinson (Republican – Clarion, Forest, Venango, and parts of Butler and Warren Counties [northwest Pennsylvania];)

Overview: Extends tax credits or exemptions to qualified businesses within an “affordable energy development zone” (“Zone[s]”) that actively perform “a trade, profession or business involving energy or manufacturing, or a related activity that uses natural gas from an unconventional formation.”






46



Zones are established by the Department of Community and Economic Development within political subdivisions in which unconventional wells are located.

Qualified businesses must (1) “use natural gas from an unconventional formation,” (2) hire and employ a minimum of 10 new full-time equivalent employees within the first three years of full operation within the Zone, and (3) invest $500,000 in new capital investment on the property within the first three full years of operation.

Tax credits and/or exemptions expire after ten years.

Current Status:

Referred to the Senate Committee on Community, Economic and Recreational Development on July 10, 2015.

PA Senate Bill 905 – Local Taxation of Natural Gas Pipelines


Overview: Allows for local taxation of a “pipeline or pipeline facility used for the transport of gas or hazardous liquids as defined” in the Gas & Hazardous Liquids Pipelines Act that are not part of a natural gas distribution company or natural gas distribution service.

Current Status:

Referred to the Senate Committee on Finance on June 29, 2015.

PA Senate Bill 953 – Natural Gas Infrastructure Expansion and Access Act


Overview: Directs the Public Utilities Commission to identify and designate corridors for construction of natural gas infrastructure extension and expansion projects to unserved or underserved areas, and to publish those corridors for bidding.

Company, person, or entity awarded the bid must construct the extension or expansion project and shall have exclusive rights within the corridor as it relates to the pipeline and any potential customers that might be served by the pipeline.

Current Status:

Referred to the Senate Committee on Environmental Resources and Energy on July 16, 2015.





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PA Senate Bill 992 – Amendment to Water Rights Law


Overview: Amends Water Rights Law (Act of Jun. 24, 1939, P.L. 842, No. 365) to require Department of Conservation of Natural Resources to:

• Give due consideration of the potential impact of the withdrawal of water from a naturally occurring aquifer on private water supplies under a proposed permit;

• Provide notification to local government officials of the granting of a permit; • Give deference to an evaluation on the potential adverse impact of proposed

water withdrawal under a proposed permit that was prepared by a local water resources authority, and give a right of first refusal to the local water resources authority for conducting tests to evaluate the potential adverse impacts.

Provides that a private entity causing an existing water well within the boundaries of a naturally occurring aquifer to become dry to be responsible for establishing a new water well.

Current Status:

Referred to the Senate Committee on Environmental Resources and Energy on September 21, 2015.

PA Senate Bill 993 – Amendment to Delaware River Basin Compact


Overview: Amends Delaware River Basin Compact (Act of Jul. 7, 1961, P.L. 518, No. 268) to require Delaware River Basin Commission to:





Current Status:




http://www.legis.state.pa.us/cfdocs/Legis/LI/uconsCheck.cfm?txtType=HTM&yr=1939&sessInd=0&smthLwInd=0&act=0365.




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PA Senate Bill 994 – Amendment to Susquehanna River Basin Compact Law


Overview: Amends Susquehanna River Basin Compact Law (Act of Jul. 17, 1968, P.L. 368, No. 181) to require Susquehanna River Basin Commission to:





Current Status:


PA Senate Bill 1011 – Rulemaking Prohibition Related to Conventional Oil and Gas Wells

Sponsor: Scott E. Hutchinson (Republican – Clarion, Forest, Venango, and parts of Butler and Warren Counties [northwest Pennsylvania];)

Overview: Amends Fiscal Code to prohibit Environmental Quality Board (“EQB”) from adopting or promulgating (i) a revision of 25 Pa. Code Ch. 78 (relating to oil and gas wells) applicable to the operation of conventional oil and gas wells or (ii) a regulation applicable to the operation of conventional oil or gas wells.

Declares any rulemaking procedure concerning conventional oil and gas wells published after November 30, 2013, to be invalid and abrogated.

Permits EQB to conduct future rulemaking concerning conventional oil and gas wells so long as the rulemaking is accompanied by the submission of a regulatory analysis form prepared following the effective date of the bill.

Current Status:

Reported out of the House Committee on Environmental Resources and Energy (8 to 3) on April 12, 2016.







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PA Senate Bill 1044 – Rural Pennsylvania Pipeline Safety Act

Sponsor: Lisa Baker (Republican – Pike, Wayne, and Wyoming Counties and parts of Luzerne and Susquehanna Counties [northeast Pennsylvania])

Overview: Defines “rural pipeline operator” as “a person that owns or operates one or more gathering pipelines or pipeline facilities within” Pennsylvania.

Directs Public Utility Commission (“PUC”) to establish and maintain a registry of all rural pipeline operators. Permits the PUC to charge a registration and annual renewal fee.

Requires rural pipeline operator to disclose country of origin for all tubular steel products used in the exploration, gathering, or transportation of natural gas or hazardous liquids.

Failure to register subjects operator to civil penalties

Current Status:

Referred to the Senate Committee on Consumer Protection & Professional Licensure on October 26, 2015.

PA Senate Bill 1092 – Permit Tracking and Notification Law

Sponsor: Elder A. Vogel, Jr. (Republican – Lawrence County and parts of Beaver and Butler Counties [north of Pittsburgh])

Overview: Requires Department of Environmental Protection (“Department”) to establish and maintain a secure website for permit applicants to track the status of permit applications.

Information on Department website must include: processing time provided for each permit; dates associated with receipt, completeness review, elevated review process (if necessary), and final permit decision; an estimate of the time remaining for each incomplete phase of the approval process; and identification of the application manager and appropriate contact information for Department staff.

Department shall provide electronic notifications to permit holders 60 days before the permit’s expiration date, as well as when there are changes in the statutes or regulations that affect the permit and permit fees that affect renewal of the permit.

Current Status:

Referred to the Senate Committee on Environmental Resources and Energy on December 21, 2015.





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PA Senate Bill 1145 – Amendment to Oil & Gas Conservation Law


Overview: Exempts from the Oil & Gas Conservation Law “any well or wells that unintentionally penetrate the Onondaga horizon and do not intentionally produce oil or gas from the Onondaga horizon.”

Current Status:

Referred to Senate Committee on Environmental Resources and Energy on March 4, 2016.

PA Senate Bill 1195 – Amendment to Pennsylvania Greenhouse Gas Regulation Implementation Act

Sponsor: Donald C. White (Republican – Armstrong and Indiana Counties and parts of Butler and Westmoreland Counties [outside Pittsburgh])

Overview: Amends Pennsylvania Greenhouse Gas Regulation Implementation Act to require greater time period for legislative review and approval of state plan prior to submission to the federal Environmental Protection Agency.

Amendments: Printer’s Number 1899: Reduces from 180 to 100 calendar days the time period to submit state plan for legislative review. Other minor changes. Printer’s Number 1929: Minor typographical changes.

Current Status:

Printer’s Number 1899 passed by Senate (41 to 9) on June 8, 2016. Printer’s Number 1929 passed by House of Representatives (147 to 41) on June 15, 2016. Printer’s Number 1929 passed by Senate (38 to 11) on June 15, 2016. Printer’s Number 1929 signed into law by Governor Tom Wolf as Act 57 on June 23, 2016.

PA Senate Bill 1273 – Amendment to Unconventional Well Report Act

Sponsor: Elder A. Vogel, Jr. (Republican – Lawrence County and parts of Beaver and Butler County [north of Pittsburgh])

Overview: Adds section to Unconventional Well Report Act requiring semi-annual disclosure by operator of amount and type of waste produced by unconventional well and method and location of waste disposal or reuse.

Waste information submitted to Department of Environmental Protection in accordance with statute shall be deemed to satisfy the residual waste biennial reporting requirements of 25 Pa. Code § 287.52.









http://www.legis.state.pa.us/CFDOCS/LEGIS/LI/uconsCheck.cfm?txtType=HTM&yr=2014&sessInd=0&smthLwInd=0&act=0173.&CFID=372134987&CFTOKEN=27624054

http://www.pacode.com/secure/data/025/chapter287/s287.52.html

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Current Status:

Referred to Senate Committee on Environmental Resources and Energy on May 25, 2016.

PA Senate Bill 1325 – Erosion and Sediment Control Act

Sponsor: Camera Bartolotta (Republican – Greene County and parts of Beaver and Washington Counties [southwest Pennsylvania])

Overview: Requires a person seeking to commence a project involving oil and gas activities that will cause five acres or more of earth disturbance to apply for and obtain an erosion and sediment control permit from the Department of Environmental Protection (“DEP”) or a conservation district prior to commencing project.

Directs that permit shall be issued if application is complete and complies with 25 Pa. Code. Ch. 102.

Imposes application fee of $500 plus $100 per each disturbed acre.

Current Status:


PA Senate Bill 1327 – Amendment to Air Pollution Control Act

Sponsor: Guy Reschenthaler (Republican – parts of Allegheny and Washington Counties [outside Pittsburgh])

Overview: Amends Air Pollution Control Act to prohibit Environmental Quality Board (“Board”) from promulgating ambient air quality standards, emission or performance stands, control measures or other requirements, for methane that are more stringent than those promulgating by the United States Environmental Protection Agency (“EPA”) for new sources.

Allows the Board to incorporate by reference control techniques guidelines developed by the EPA for existing sources of methane if the Board determines that those techniques are reasonably necessary to achieve and maintain compliance with the requirements of the ozone transport region under the Clean Air Act.

Current Status:

Referred to the Senate Committee on Environmental Resources and Energy on June 20, 2016.







52



PA Senate Resolution 247 – Crude by Rail Shipments


Overview: Urges United States Department of Transportation to (i) work with tank car manufacturers and owners, crude oil shippers, and the rail industry in adopting a higher pool fire survivability standard and (ii) provide federal funds to sustain the training of emergency first responders.

Current Status:

Referred to Senate Committee on Transportation on November 20, 2015. Reported unanimously out of Senate Committee on Transportation on January 20, 2016. Adopted by the Senate on January 27, 2016.

PA Senate Resolution 277 – Compliance with Clean Power Plan

Sponsor: Patrick J. Stefano (Republican – Fayette and Somerset Counties and part of Westmoreland County [southwest Pennsylvania])

Overview: Urges the Department of Environmental Protection to request a two year extension for submitting a plan to comply with the Federal Clean Power Plan.

Directs the Legislative Budget and Finance Committee to conduct a cost compliance study of the final implantation plan prior to submission to the federal Environmental Protection Agency.

Current Status:

Reported out of the Senate Environmental Resources and Energy Committee (10 to 1) on April 12, 2016.

PA Senate Resolution 385 – Environmental Law and Regulation Review

Sponsor: Michele Brooks (Republican – Crawford and Mercer Counties and parts of Erie and Warren Counties [northwest Pennsylvania])

Overview: Directs the Joint State Government Commission to conduct a study to analyze and identify which state environmental laws and regulations are more stringent than required by federal law.

Current Status:


http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=S&type=R&bn=0247






53



West Virginia3 legislative action updates4 House

WV House Bill 2062 – Proposes § 22C-13-1 to create Legislative Oversight Commission on Energy Workers Safety (“Commission”)

Sponsor: Mike Caputo (Democrat – Marion County [northern West Virginia]; Vice Chair of Energy Committee)

Overview: Creates the Legislative Oversight Commission on Energy Workers Safety to oversee and promote worker safety.

Requires state agencies responsible for worker safety to report quarterly or as otherwise directed by a majority of the Commission on accident investigations and newly identified safety issues and their actions relating to safety issues.

Commission shall be comprised of five members nominated by the President of the Senate and five members nominated by the House of the Delegates.

DEP Office of Oil and Gas must submit quarterly reports providing information on injuries, fatalities and initiatives to revise and improve safety requirements for natural gas industry.

Commission shall study, review and examine the boards and agencies activities and make recommendations to the Legislature regarding any proposed plan, policy or rule.

Commission shall undertake a study and report its recommendations regarding the need for additional safety regulations, inspections and enforcement mechanisms to the Joint Committee on Government and Finance.

• Commission specifically should look into whether the existing safety scheme for the natural gas industry is adequate to protect natural gas workers.

3 The 2016 session of the West Virginia Legislature, which constitutionally is limited to only sixty days, ended on March 12, 2016. Bills introduced in the 2015 session that did not become law may be reintroduced in the 2016 session using the same bill number. Unless otherwise noted, the bill number for the 2016 session is identical to the bill number in the 2015 session. 4 This summary contains hyperlinks to third party websites containing further relevant information. Clicking on the bill number will take you to the main bill information page at the Legislature’s website, from which you can navigate to the bill text and legislative history. Clicking on the sponsor’s name will take you to the member information page on the Legislature’s website, which includes biographical, district, and committee assignment information.

http://www.legis.state.wv.us/Bill_Status/bills_history.cfm?INPUT=2062&year=2016&sessiontype=RS

http://www.legis.state.wv.us/House/lawmaker.cfm?member=Delegate%20Caputo

54



Current Status:

Referred to House Industry and Labor committee on January 13, 2016.

*WV House Bill 2062 is a reintroduction of WV House Bill 4382 from the 2013-2014 session of the West Virginia Legislature.

WV House Bill 2080 – Amends Severance & Business Privilege Tax Act (“Tax”) to reallocate up to $30 million of natural gas and oil severance tax revenues to the counties where the gas or oil originated from

Sponsor: Michael Ferro (Democrat – Marshall County [northern West Virginia])

Overview: Creates Natural Gas and Oil Division of Highways Reallocated Severance Tax Fund to reallocate up to $30 million annually of revenues collected via natural gas and oil severance tax.

Funds shall be distributed quarterly on a production pro rata basis to the districts where the natural gas or oil was produced. The districts then distribute the funds to the individual counties on a production pro rata basis.

• Each district must establish a Natural Gas and Oil County Reallocated Severance Tax Fund.

If more than $30 million in taxes is collected, then each district’s share shall be based on its pro rata production share of the total amount of natural gas and oil produced within the state for that year.

Districts are required to allocate the funds to secondary road projects in their respective counties.

Districts must deliver an annual written report to the Joint Committee on Government and Finance outlining the specific secondary road projects for which the funds were expended during the previous year.

The Joint Committee on Government and Finance may authorize an audit of distributed funds at any time.

Current Status:

Referred to House Roads and Transportation committee on January 13, 2016.


http://www.legis.state.wv.us/house/lawmaker.cfm?member=Delegate%20Ferro

55



WV House Bill 2269 – Bars Department of Environmental Protection, Department of Health and Human Resources, Division of Natural Resources and Department of Commerce from proposing or promulgating rules which are more stringent than corresponding federal laws or regulations

Sponsor: Ron Walters (Republican – Kanawha County)

Overview: Requires rules which are promulgated by several state agencies, including the Department of Environmental Protection and the Division of Natural Resources, to be no more stringent than corresponding federal laws or regulations.

Current Status:

Referred to House Judiciary Committee on January 13, 2016.

WV House Bill 2407 – Proposes §11-13A-5b to reallocate and dedicate 3% of oil and gas severance tax revenues to the counties and municipalities from where the gas was taken

Sponsor: Erikka Storch (Republican – Ohio County [northern tip of West Virginia])

Overview: Establishes Oil and Gas County and Municipality Reallocated Severance Tax Fund.

Distribution to be done by the State Treasurer.

Reallocates 3% (2% to the county and 1% to the municipality) of oil and gas severance tax revenues, up to $20 million annually, to the Fund for distribution to the oil and gas producing counties of origin and their respective municipalities.

Funds shall be distributed quarterly and must be used solely for economic development and infrastructure projects.

• Funds must be deposited into a specific, separate account. • Defines “economic development” and “infrastructure project.”

Counties and municipalities must submit an annual report to the WV Joint Committee detailing what projects the funds were allocated to, a detailed account of expenditures, and compliance with purpose limitation.

Amount distributed is determined by dividing total amount of funds available by total number of barrels of oil and total number of cubic feet of gas produced in West Virginia in the preceding quarter and multiplying that number by the number of cubic feet produced in the individual county/municipality during the preceding quarter.

Current Status:

Referred to House Energy Committee on January 13, 2016.


http://www.legis.state.wv.us/house/lawmaker.cfm?member=Delegate%20Walters


http://www.legis.state.wv.us/House/lawmaker.cfm?member=Delegate%20Storch

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WV House Bill 2585 – Requires leaseholders to notify the mineral interest owners when there is an assignment of the lease

Sponsor: Anna Border-Sheppard (Republican – Wirt County and part of Wood County [northwestern West Virginia])

Overview: Requires leaseholder to notify the owners of the mineral interests when there is an assignment of the lease to another party.

Current Status:

Referred to House Judiciary Committee on January 13, 2016.

WV House Bill 2707 – Proposes §36-3-8a to require natural gas lessors to provide surface owners the ability to purchase gas from those wells

Sponsor: Jeff Eldridge (Democrat – parts of Lincoln, Putnam, Boone, and Logan Counties [southwestern West Virginia]; member of Energy Committee)

Overview: Requires natural gas lessors to permit surface owner on whose property the well is drilled to purchase gas from that well at the market rate in addition to any free gas which the landowner is entitled to.

Lessor also is required to give same option to surface owners on whose properties a natural gas pipeline crosses.

Current Status:


WV House Bill 2890 – Creating a procedure to quiet title to abandoned mineral interests by serving notice on a mineral interest owner and filing an affidavit with the county clerk within 60 days

Sponsor: Pat McGeehan (Republican; Hancock County and part of Brooke County [eastern West Virginia])

Overview: Defines “claim” as any affidavit or other information filed with the county clerk to assert a mineral interest.

Allows abandoned mineral interests to vest in the surface owner if surface owner: (i) serves notice of intent to declare the interest abandoned to each interest holder via certified mail; (ii) files an affidavit of abandonment with the county clerk at least 30, but not later than 60 days after notice is served; and (iii) if no response is filed by the interest owner, surface owner shall file a notice of failure to file.


http://www.legis.state.wv.us/house/lawmaker.cfm?member=Delegate%20Border-Sheppard


http://www.legis.state.wv.us/House/lawmaker.cfm?member=Delegate%20Eldridge


http://www.legis.state.wv.us/house/lawmaker.cfm?member=Delegate%20McGeehan

57



In order to vest in surface owner, mineral interest may not be: • in coal or in mining or other rights pertinent to or exercisable in connection with

an interest in coal; o If mineral interest includes both coal and other minerals, the non-coal

interests may be deemed abandoned and may vest in surface owner. • held by the United States, the state of West Virginia, or any political subdivision

or agency of either the United States or West Virginia; or • Within the past 20 years preceding the date notice is served on the mineral

interest owner: o Mineral interest was not have been the subject of a title transaction that

was filed or recorded in the county clerk’s office; o There has not been actual production or withdrawal of minerals pursuant to

a lease which the mineral interests are subject to; o The mineral interest has not have been used in underground storage

operations; o No drilling or mining permit has been issued to the interest holder; o No claim to preserve the mineral interest has been filed; o No separately listed tax parcel number has been created for the interest in

the county assessor’s tax list.

The mineral interest owner may preserve their interest from being deemed abandoned by recording a claim within 60 days of being served with surface owner’s notice of intent to deem the interest abandoned that:

• States the nature of the interest claimed and any recording information upon which the claim is based;

• Describes the property and any related covenants; • States that the interest holder does not abandon their rights.

A claim of preservation preserves the rights of all holders in the mineral interest.

Anyone who holds an interest in underground storage operations may preserve all interest holder’s rights by a single claim that defines the boundaries of the storage field or pool and its formations, without describing each separate interest claimed.

Current Status:


58



WV House Bill 2975 – Mandating that tax assessor value oil and gas interest based on amount of oil or gas actually produced


Overview: Mandates that the tax assessment of an oil and gas interest be based on the amount of oil or gas actually produced during that year.

Current Status:


WV House Bill 2977 – Amends § 5A-11-3 to mandate that rents and royalties from mineral leases under state rivers and streams be expended for road paving and maintenance


Overview: Mandates that all rents, royalties and other payments from mineral leases covering public lands acquired or managed by the Division of Natural Resources be retained by the Division of Natural Resources.

All rents and royalties from mineral leases entered into on or after July 1, 2015, covering state rivers or streams shall be deposited into the State Road Fund to be expended for road maintenance.

• All rents and royalties from leases entered prior to July 1, 2015 shall be retained by Division of Natural Resources.

All payments, other than rents and royalties, from leases covering state streams or rivers shall be retained by Division of Natural Resources.

All rents, royalties and other payments from land sales, exchanges and mineral rights leasing for public lands owned, managed, or controlled by the Adjutant General’s Department will be retained by the Adjutant General.

Current Status:

Referred to House Finance Committee on January 13, 2016.



http://www.legis.state.wv.us/Bill_Status/Bills_history.cfm?input=2977&year=2015&sessiontype=RS&btype=bill


59



WV House Bill 3013 – Amends Natural Gas Horizontal Well Act to increase limit of disturbance of a well site to 1500 feet from an occupied structure and establishes air, noise, and dust monitoring requirements.

Sponsor: Barbara Evans Fleischauer (Democrat – part of Monongalia County [outside Morgantown])

Overview: Adds additional requirement that well work permit applicants must serve their application, erosion and sediment control plan on the occupants of any residential structure located on the property where the well work will be performed.

Increases limit of disturbance from 625 feet to 1500 feet from any occupied dwelling structure.

Requires operators to establish continuous real-time monitoring of air, noise, dust and particulates at the residence or other point of impact that is closest to the well work.

Establishes noise, dust, air and light levels as follows:

• Noise levels during site construction may not exceed 70 dBA average an hour

• Noise levels at all other times may not exceed 55 dBA at any time

• Dust levels may not exceed the national ambient air quality level for a 24 hour period and there may be no visible dust on residences or crops

• Air levels must comply with risk levels set by Agency for Toxic Substances and Disease Registry of the Centers for Disease Control and Prevention

• No light from artificial illumination, flares or other sources shall shine directly on any residence or livestock or structure containing livestock.

Operators must establish continuous real-time monitoring of air, noise, dust and particulates at the residence or other point of impact that is closest to the well work. All levels must be continuously available upon request to all persons within 1500 feet of the disturbance area.

Surface owners may file claim within 2 years after the developer files notice that final reclamation of the well site is commencing.

Current Status:



http://www.legis.state.wv.us/house/lawmaker.cfm?member=Delegate%20Fleischauer

60



Senate

WV Senate Bill 564 – Authorizing Shallow Gas Well Review Board to grant waivers of minimum distance requirements for shallow wells to encourage multi-well pads

Sponsor: Greg Boso (Republican – Nicholas, Pendleton, Pocahontas, Randolph, Upshur, and Webster Counties and part of Grant County [eastern West Virginia])

Overview: Amends § 22C-9-4 to provide: that the Oil & Gas Conservation Commission may not regulate or establish minimum well setback or spacing between deep wells operated by the same operator; that the Commission may not require spacing of more than eight hundred feet between horizontal wells operated by different operators or require a well setback of more than four hundred feet from a unit boundary that divides operators.

Current Status:

Referred to Senate Energy, Industry and Mining Committee on February 10, 2016.


http://www.legis.state.wv.us/Senate1/lawmaker.cfm?member=Senator%20Boso

61



Ohio legislative action updates5 House

OH House Bill 8 – Oil and gas-unit operation/valuing reserves-method

Sponsor: Robert Hagan (Democrat – Youngstown)

Overview: Amends sections 1509.28 and 5713.051 of the Revised Code to revise provisions in the Oil and Gas Law governing unit operations.

Requires that any rules that the Chief adopts pursuant to section 1509.28 must either: (i) establish a prehearing publication notice requirement of more than three publications in a newspaper of daily general circulation in the county or counties in which the proposed unit is to be located; or (ii) require the last date of publication of such prehearing notice to occur not more than five days prior to the hearing.

Requires unit operations of land for which the Department of Transportation owns the mineral rights.

Specifies that the discounted cash flow formula used to value certain producing oil and gas reserves for property tax purposes is the only method for valuing all oil and gas reserves.

Current Status:

Referred to the Energy and Natural Resources Committee on February 10, 2015. Passed unanimously by House of Representatives on March 18, 2015. Referred to Senate on March 18, 2015.

OH House Bill 83 – Oil or gas well owner-royalty statement to holder of royalty interest

Sponsor: Jack Cera (Democrat – Belmont County)

Overview: Amends sections 1509.30 and 1509.99 of the Revised Code to require the owner of an oil or gas well to provide a royalty statement to the holder of the royalty interest when the owner makes a payment to the holder.

5 This summary contains hyperlinks to third party websites containing further relevant information. Clicking on the bill number will take you to the main bill information page at the General Assembly’s website, including the text of the bill. Clicking on the sponsor’s name will take you to the sponsor’s official website. Clicking on “Current Status” will take you to the bill’s legislative history at the General Assembly’s website.

https://www.legislature.ohio.gov/legislation/legislation-summary?id=GA131-HB-8

http://www.ohiohouse.gov/robert-f-hagan

https://www.legislature.ohio.gov/legislation/legislation-status?id=GA131-HB-8



http://www.ohiohouse.gov/jack-cera

62



The royalty statement must include, among other things, the following information: (i) volume of gas or oil for which the holder is being paid; (ii) price per thousands of cubic feet or per barrel of oil paid to the holder for such gas or oil; (iii) amount of state severance and any other production taxes paid on the holder’s interest; (iv) any other deductions from or adjustments on the holder’s interest; and (v) the net value of total sales of oil and gas produced from the lese, property, or well after deductions during the applicable payment period.

Under existing law, the holder of a royalty interest may request the owner to report to him, no more frequently than the payment period in his contract with the owner.

Sets certain penalties for reckless violation of the act, ranging from one hundred dollars to one thousand dollars for a first offense and two hundred to two thousand dollars per subsequent offense.

Current Status:

Referred to the Energy and Natural Resources Committee on March 4, 2015.

OH House Bill 522 - Oil and gas wells-local approval/conversion-injection wells

Sponsor: Debbie Phillips (Democrat – Athens County [southeast Ohio])

Overview: Amends Ohio Revised Code to: (i) prohibit injection of brine and other waste substances except in Class I injection wells; (ii) prohibit conversion of oil and gas wells; (iii) require municipal or township approval prior to the issuance of an oil or gas well permit; and (iv) levy a fee on the injection of brine and other waste substances into a Class I injection well.

Current Status:

Referred to the House Energy & Natural Resources Committee on April 26, 2016.

Senate

OH Senate Bill 46 – Lake Erie – ban on oil & gas development

Sponsor: Michael Skindell (Democrat – Cleveland)

Overview: Prohibits the Director of Natural Resources from issuing any permit or making any lease to take or removal oil or gas from and under the bed of Lake Erie.

Currently, the Director of Natural Resources, with the approval of the Director of Environmental Protection, the Attorney General, and the Governor, and subject to certain requirements, can issue permits and make leases for oil and gas development under Lake Erie.

Current Status:

Referred to the Senate Committee on Energy and Natural Resources on February 18, 2015.




http://www.ohiohouse.gov/debbie-phillips



https://www.legislature.ohio.gov/legislation/legislation-summary?id=GA131-SB-46

http://www.ohiosenate.gov/skindell

https://www.legislature.ohio.gov/legislation/legislation-status?id=GA131-SB-46

63



*OH Senate Bill 46 is a reintroduction of OH Senate Bill 87 from the 2013-2014 session of the Ohio General Assembly.

OH Senate Bill 47 – Brine – prohibit land application and injection/well conversion-prohibit

Sponsor: Michael Skindell (Democrat – Cleveland)

Overview: Prohibits the disposal of brine by deep well injection, by land application, or in surface or ground water.

Prohibits the conversion of a well to a use other than its original purpose (currently, can do so without a permit).

Eliminates current law which sets the Safe Drinking Water Act as the ceiling for rules, orders, and terms and conditions of permits (unless exceeding that ceiling is “essential to ensure that underground sources of drinking water will not be endangered”).

Eliminates the current law that allows for brine from Mississippian wells to be discharged directly into Ohio waters.

Prohibits brine transport within the state unless registration with and obtain certificate from Chief.

Sets certain penalties for violations of the act which range from one hundred dollar to twenty thousand dollars and/or imprisonment, depending on the provision violated, the intent of the violator, and the number of previous violations.

Current Status:

Referred to the Energy and Natural Resources Committee on February 18, 2015.

OH Senate Bill 120 – Oil and Gas law – revise enforcement

Sponsor: Joe Schiavoni (Democrat – Columbiana and Mahoning Counties [Youngstown area])

Overview: Amends sections 1509.33 and 1509.99 and enacts section 1509.051 of the Revised Code to revise enforcement of the Oil and Gas Law related to the storage, recycling, treatment, processing, and disposal of brine.

Requires the chief of the division of oil and gas resources management to revoke the permit(s), and deny any future permit applications, of any person who knowingly violates section 1509.22.

Amends the Oil and Gas Law to find persons who knowingly violate division (A) or (D) of section 1509.22 (dealing with disposal of brine and other fluids) guilty of a felony.


http://www.ohiosenate.gov/skindell




http://www.ohiosenate.gov/schiavoni

64



Allows courts to require persons who knowingly violate division (A) or (D) of section 1509.22 to reimburse the state agency for any response costs that it incurred in responding to the violation.

Removes the current exception that no person shall be subject to both a civil penalty and a criminal penalty for a single violation of section 1509.99.

Current Status:

Referred to the Energy and Natural Resources Committee on March 10, 2015.

OH Senate Bill 166 – Horizontal wells-emergency response plans

Sponsor: Lou Gentile (Democrat – 30th Senate District [southeast Ohio])

Overview: Requires owners of horizontal wells to develop and implement emergency response plans in order to respond to emergencies at the surface location of their wells that threaten public health or safety.

The plan must establish response actions to be taken during the following: (i) construction of the well pad; (ii) drilling; (iii) well stimulation; (iv) production; (v) plugging; and (vi) restoration of the surface location.

The plan must describe the actions to be taken by the owner’s employees at the well to respond to the following events: (i) a fire; (ii) a medical emergency; (iii) an explosion or similar event; (iv) a spill; and (v) a security breach or other security event.

The plan must describe the actions to be taken by the owner’s employees at the well to respond to the following events: (i) a fire; (ii) a medical emergency; (iii) an explosion or similar event; (iv) a spill; and (v) a security breach or other security event.

An owner of two or more horizontal wells may develop a base plan for use at the surface locations of all of the owner’s horizontal wells or a site-specific plan for each well location.

The chief of the division of oil and gas resources management is required to assess a civil penalty against any person who has violated or is violating the Bill. The fine is one thousand dollars for the first week and an additional five hundred dollars for each subsequent week the person is in violation of the Bill.

Current Status:

Referred to the Senate Committee on Energy and Natural Resources on May 27, 2015.




http://www.ohiosenate.gov/gentile



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quarterly legislative action update: marcellus and utica shale region

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