PRINTER'S NO. 320
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.364
Session of
2025
INTRODUCED BY VITALI, SAMUELSON, BRENNAN, PIELLI, HOHENSTEIN,
HILL-EVANS, CIRESI, CEPEDA-FREYTIZ, FREEMAN AND STEELE,
JANUARY 27, 2025
REFERRED TO COMMITTEE ON ENVIRONMENTAL AND NATURAL RESOURCE
PROTECTION, JANUARY 27, 2025
AN ACT
Amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated
Statutes, in development, further providing for bonding.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 3225(a)(1) introductory paragraph and
(iii) and (2) of Title 58 of the Pennsylvania Consolidated
Statutes are amended to read:
ยง 3225. Bonding.
(a) General rule.--The following shall apply:
(1) Except as provided in subsection (d), upon filing an
application for a well permit and before continuing to
operate an oil or gas well, the owner or operator of the well
shall file with the department a bond covering the well and
well site on a form to be prescribed and furnished by the
department. A bond filed with an application for a well
permit shall be payable to the Commonwealth and conditioned
upon the operator's faithful performance of all drilling,
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17 water supply replacement, restoration and plugging
requirements of this chapter. A bond for a well in existence
on April 18, 1985, shall be payable to the Commonwealth and
conditioned upon the operator's faithful performance of all
water supply replacement, restoration and plugging
requirements of this chapter. The amount of the bond required
shall be in the following amounts and [ amounts under
subparagraphs (i) and (ii) ] may be adjusted by the
Environmental Quality Board every two years to reflect the
projected costs to the Commonwealth of plugging the well:
* * *
(iii) For a well other than an unconventional well,
$2,500 per well. [For 10 years following the effective
date of this subparagraph, the Environmental Quality
Board and the department shall have no authority to
adjust the amount under this subparagraph. ]
(2) The following apply:
(i) Except as provided under subparagraph (ii), in
lieu of individual bonds for each well, an owner or
operator may file a blanket bond for the applicable
amount under paragraph (1)(i) or (ii), on a form prepared
by the department, covering all of its wells in this
Commonwealth, as enumerated on the bond form.
(ii) As follows:
(A) An operator may file a blanket bond of
$25,000 for all of the operator's wells in this
Commonwealth that are not unconventional wells.
[(B) For every new well that is not an
unconventional well drilled after six months after
the effective date of this subsection, the bond
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30 amount for that operator shall increase by $1,000.
(C) The total blanket bond for an operator's
wells that are not unconventional wells shall not
exceed $100,000.
(D) The blanket bond increase of $1,000 shall be
waived by the department for a new well drilled under
this subsection if the operator provides evidence to
the department that the operator has plugged an
orphan well at the operator's own expense for which
the operator was not the responsible party within the
previous 365 days that the operator has not yet
received credit for under this subsection by the
department.
(E) For 10 years following the effective date of
this clause, the bond amounts for wells that are not
unconventional wells may only be revised by the
General Assembly. The Environmental Quality Board and
the department shall have no authority to adjust bond
amounts related to wells that are not unconventional
wells during that time period. ]
(F) The department shall conduct a study of its
experience in implementing this section, report its
findings to the Governor and the General Assembly and
make recommendations for program amendments within 12
months of the effective date of this clause. The
report shall contain information relating to:
(I) the cost to the Commonwealth to plug
orphan and improperly abandoned wells;
(II) evaluation of industry trends relating
to compliance with plugging and reclamation
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30 requirements under existing law;
(III) evaluation of the effectiveness of
existing enforcement authority in avoiding
improper abandonment, including civil penalty
authority and forfeiting oil and gas well bonds;
(IV) the system for reviewing operators'
requests for regulatory inactive status approval
and permit transfers and what impact approving
those actions under current requirements have on
future improper abandonment of active wells;
(V) the number of identified orphan and
improperly abandoned wells eligible for plugging;
(VI) any recommendation on effective
alternative financial assurance mechanisms,
including, but not limited to, increased bond
amounts for conventional oil and gas wells; and
(VII) the potential applicability of the
mechanisms to oil and gas wells drilled prior to
April 18, 1985.
* * *
Section 2. This act shall take effect in 60 days.
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