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DEP Releases 2 More Bid Solicitations To Plug 43 Abandoned Conventional Gas Wells In Clarion County All At Taxpayer Expense, Industry Doesn’t Pay A Dime

On January 19, DEP released two more bid packages to plug 43 more abandoned conventional natural gas wells in Clarion County at taxpayer expense under the new federal Bipartisan Infrastructure Law well plugging program.

The conventional industry doesn’t pay a dime.

The official solicitations are made through the BidExpress.com website, like all major DEP contracts. The new packages include--

-- Clarion County: 23 abandoned natural gas wells in Farmington, Knox, and Washington Townships and Hawthorn Borough. Click Here for more information.

-- Clarion County: 20 abandoned natural gas wells in Beaver, Richland, and Licking Townships. Click Here for more information.

On January 12, DEP released bid packages to plug 38 abandoned wells at taxpayer expense--

-- Venango County: 19 abandoned natural gas wells in Sugarcreek Borough and Cranberry Township. Click Here for more information.

-- Venango County: 19 abandoned natural gas wells in Cornplanter Township. Click Here for more information.

On January 5, DEP released bid packages for 46 conventional gas wells--

-- Armstrong County: 15 abandoned conventional natural gas wells in Boggs, Cowanshannock, Valley, and Wayne Townships. Pre-bid meeting January 18. Click Here for more information.

-- Armstrong County: 17 abandoned conventional natural gas wells in Bethel, Kittanning, Manor, Gilpin, and South Buffalo Townships. Pre-bid meeting January 19. Click Here for more information.

--Washington County: 14 abandoned conventional natural gas wells in Cecil, North Franklin, Buffalo, and Canton Townships. Pre-bid meeting January 11. Click Here for more information.

On January 10, DEP Acting Secretary Ramex Ziadeh told DEP’s Citizens Advisory Council private contractors bid approximately $7.5 million to plug the first 79 abandoned conventional natural gas wells under the new federal program.

The average taxpayer cost of plugging those wells was a little over $95,000.

For more information on the federal well plugging program, visit DEP’s Oil & Gas Bipartisan Infrastructure Law Program webpage.

New Well Abandonments

DEP reports conventional oil and gas operators received 3,575 notices of violations for abandoning wells without plugging them from 2017 through 2022.

On December 29, the 2021 Oil and Gas Program Annual Report issued by DEP in December shows conventional oil and gas operators received a record 610 notices of violation for abandoning wells without plugging them and unconventional shale gas operators received 27 NOVs.

In the two prior years, DEP issued 360 NOVs in 2019 and 453 in 2020 to conventional oil and gas operators for the same offense.

DEP’s Oil & Gas Compliance Database shows DEP issued 452 notices of violation to conventional operators for abandoning wells without plugging them and 38 NOVs for the same violation to unconventional shale gas drillers.

On December 29, DEP issued a report on conventional oil and gas operator compliance saying the most frequent environmental, health and safety violation between 2017 and through 2021 was new oil and gas well abandonments. Read more here.

The report said conventional oil and gas drillers were issued 3,123 notices of violations for new well abandonments and 217 violations for failure to plug a well to stop the vertical flow of fluids or gas out of the well. Read more here.

Wells abandoned by conventional operators must all be plugged at taxpayer expense. Conventional operators don’t contribute a dime. By some estimates taxpayers are now on the hook for over $5.1 billion in conventional well plugging costs. Read more here.

The report made a series of recommendations on how to prevent new well abandonments. Read more here.

PA DEP Public Notice Dashboards:

-- Pennsylvania Oil & Gas Weekly Compliance Dashboard - Jan. 14 to 20 [PaEN]

-- PA Oil & Gas Industrial Facilities: Permit Notices/Opportunities To Comment - Jan. 21 [PaEN]

-- Susquehanna River Basin Commission Sets Feb. 2 Hearing On A 4.5 MGD Out-Of-Basin Diversion For Ironwood Natural Gas Power Plant In Lebanon County, 6 Other Natural Gas Drilling Water Uses [PaEN]

-- DEP Posted 34 Pages Of Permit-Related Notices In Jan. 21 PA Bulletin [PaEN]

PA Oil & Gas Industry Compliance Reports:

-- PA Oil & Gas Industry Has Record Year: Cost, Criminal Convictions Up; $3.1 Million In Penalties Collected; Record Number Of Violations Issued; Major Compliance Issues Uncovered; Evidence Of Health Impacts Mounts

-- DEP Report Finds: Conventional Oil & Gas Drillers Routinely Abandon Wells; Fail To Report How Millions Of Gallons Of Waste Is Disposed; And Non-Compliance Is An ‘Acceptable Norm’

Related Articles This Week:

-- Feature: 60 Years Of Fracking, 20 Years Of Shale Gas: Pennsylvania’s Oil & Gas Infrastructure Is Hiding In Plain Sight [PaEN]

-- DEP 2021 Oil & Gas Program Annual Report Shows Conventional Oil & Gas Operators Received A Record 610 Notices Of Violation For Abandoning Wells Without Plugging Them [PaEN]