Pennsylvania One Call System Proposed Amendments Would Include Class 1 Production And Gathering Lines For Certain Marcellus Shale Wells
June 30, 2014
Legislation has been passed by the Pennsylvania House of Representatives that would, among other things, require owners and operators of class 1 natural gas production and gathering lines associated with Marcellus Shale wells using hydraulic fracture or similar treatments to register (and map) their production and gathering lines with Pennsylvania’s One Call System (which is a communication system in which excavators can call (toll-free) to locate underground lines and infrastructure).
The current law, which was first established in 1974 (Act 287 of 1974), contains an exemption applicable to all gas production and gathering lines. Right now, that exemption tracks federal safety laws. Simply put, if a gathering line is subject to federal pipeline safety laws, it should be registered with Pennsylvania’s One Call System. If the line is not subject to the safety laws, it is not currently required to be registered.
The proposed legislation (House Bill 1607, Printer Number 3861[1]) would limit the exemption to production and gathering lines associated with a “conventional oil and gas well.”[2] It defines the term “conventional oil and gas well” as follows:[3] “Conventional oil and gas well” means a bore hole drilled for the purpose of producing oil or gas from a conventional formation. Irrespective of technology or design, the term includes any of the following:
(1) A well drilled to produce oil.
(2) A well drilled to produce natural gas from formations other than shale formations.
(3) A well drilled to produce natural gas from shale formations located above the base of the Elk Group or its stratigraphic equivalent.
(4) A well drilled to produce natural gas from shale formations located below the base of the Elk Group where natural gas can be produced at economic flow rates or in economic volumes without the use of vertical or nonvertical well bores stimulated by hydraulic fracture treatments or by using multilateral well bores or other techniques to expose more of the formation to the well bore.
(5) Irrespective of formation, a well drilled for collateral purposes, such as monitoring, geologic logging, secondary and tertiary recovery or disposal injection. (emphasis added).
The “Elk Group” refers to a stack of sand formations found above the Marcellus Shale in the western part of Pennsylvania. Part 4 of the definition would only exempt a Marcellus Shale well if that well is not using hydraulic fracture or similar treatments. So, if this legislation is finally enacted, Marcellus Shale wells using hydraulic fracture or similar treatments must comply with the Underground Utility Line Protection Law (Act 287 of 1974), commonly known as the PA One Call law.
The proposed legislation must still be considered by the Senate. Once passed in final form by both the House and the Senate, the legislation will be sent to the Governor for his consideration. The Governor, after referring the bill to the Attorney General to certify its legality and constitutionality, can either sign, veto, or take no action on the legislation.
[1] https://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2013&sind=0&body=H&type=B&BN=1607.
[2] House Bill 1607, at Section 1 (definition of “line” or “facility”).
[3] House Bill 1607, at Section 1 (definition of “conventional oil and gas well”).