THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL INTRODUCED BY PAYTON, BRIGGS AND GOODMAN, SEPTEMBER 22, 2010

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PRINTER'S NO. 0 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL No. Session of 0 INTRODUCED BY PAYTON, BRIGGS AND GOODMAN, SEPTEMBER, 0 REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, SEPTEMBER, 0 AN ACT 1 1 1 1 1 1 1 1 Providing for a Statewide moratorium on natural gas drilling in the Marcellus Shale; and establishing the Marcellus Well Drilling Study Commission. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Short title. This act shall be known and may be cited as the Statewide Marcellus Shale Natural Gas Drilling Moratorium Act. Section. Definitions. The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Commission." The Marcellus Well Drilling Study Commission. "Department." The Department of Environmental Protection of the Commonwealth. "Marcellus well." A well from which gas from the Marcellus Shale formation, as determined by the United States Geological Survey, is or is intended to be extracted, including wells on

1 1 1 1 1 1 1 1 0 1 0 Commonwealth and non-commonwealth land. Section. Moratorium. (a) Establishment.--Notwithstanding any other provision of law, a moratorium is established during which no Marcellus wells may be drilled, including Marcellus wells that have received a permit from the department, but drilling has not begun. (b) Expiration.--The moratorium in subsection (a) shall expire three years after the effective date of this act. Section. Marcellus Well Drilling Study Commission. (a) Establishment.--There is established the Marcellus Well Drilling Study Commission. (b) Purpose.--The purpose of the commission shall be to study and analyze the environmental, social and economic impacts of Marcellus well drilling in this Commonwealth and recommend changes to the Commonwealth's statutory and regulatory framework to ensure the protection of the public and the environment as well as successful promotion of the natural gas industry. Section. Report. (a) Report.--The commission shall provide a comprehensive report of the study. The report shall thoroughly investigate the impact of Marcellus well drilling in this Commonwealth and make recommendations on improvements to Pennsylvania's law and regulations to ensure the protection of the public and the environment as well as the successful promotion of the natural gas industry. The recommendations should include, but not be limited to, guidance on all of the following: (1) Laws and regulations for the protection of rivers, streams and groundwater from drilling activities, including protecting drinking water, and managing wastewater, storm water run-off and spills. 00HBPN0 - -

1 1 1 1 1 1 1 1 0 1 0 () Air quality laws and regulations. () The disclosure and consequences of specific chemicals used by the drilling industry, including amounts used at each well site. The drilling industry must submit proof that contamination of drinking water will not occur as a result of the chemicals used. () The appropriate permitting processes, drilling and well inspections, staffing levels and other administrative responsibilities of the department. () How to handle liability and bonding at all well sites in the event of drilling disasters that pose an environmental risk, especially in remote areas. () The impact on the State labor market and on how to encourage job opportunities and procurement for Pennsylvania businesses. () The financial impact to host communities, such as inadequate trucking routes and transport of contaminated water which is produced due to the type of drilling and fracturing method. () Property rights of both those leasing land and those adjacent to leased land. () The cumulative impact of existing and likely proposed drilling in Pennsylvania's Marcellus Shale, including an analysis on water quality and contamination, air quality, the amount of drilling fluids emitted to the environment, road damage and other effects of truck traffic, land use, habitat and human health. () The effects on the social fabric, including, but not limited to: (i) Tourism. 00HBPN0 - -

1 1 1 1 1 1 1 1 0 1 0 (ii) Recreation. (iii) Hunting. (iv) Fishing. (v) Community aesthetics. (vi) Quality of life. (b) Presentation.--The commission shall present the report to the Governor, the chairman and minority chairman of the Environmental Resources and Energy Committee of the Senate and the chairman and minority chairman of the Environmental Resources and Energy Committee of the House of Representatives nine months after the effective date of this act. Section. Composition of the commission. (a) Members.--The commission shall consist of the following members: (1) One member appointed by the Governor. () One member appointed by the President pro tempore of the Senate. () One member appointed by the Minority Leader of the Senate. () One member appointed by the Speaker of the House of Representatives. () One member appointed by the Minority Leader of the House of Representatives. () The Secretary of Environmental Protection. () The Secretary of Conservation and Natural Resources. (b) Chairperson.--The Secretary of Environmental Protection shall act as chair of the commission. (c) Staffing.--The Commonwealth shall, through the department, provide reasonable and necessary clerical, research and administrative support and may contract for research, 00HBPN0 - -

1 1 1 1 1 1 1 1 0 1 analysis and editorial work in support of the commission as necessary. (d) Submission of members.--the Governor and responsible legislative members shall make appointments to the commission within 1 days of the effective date of this act. Section. Public meetings. The commission shall conduct at least six public hearings in different geographic areas of this Commonwealth. All meetings, except for organizational meetings and planning sessions, shall be conducted as open meetings under Pa.C.S. Ch. (relating to open meetings). The initial organizational meeting shall take place no later than 0 days after the effective date of this act. Section. Cooperation by State agencies. The department shall serve as the administrative support agency of the commission and shall provide facilities, personnel assistance, information and services necessary to fulfill the mission of the commission. All other Commonwealth agencies are directed to cooperate with and assist the commission in fulfilling its duties and responsibilities. Section. Effective date. This act shall take effect immediately. 00HBPN0 - -