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PA Oil & Gas Weekly Compliance Dashboard - April 27 to May 3 - Hunting Abandoned Quaker State Wells; Conventional Well Dumpster Fire; Multiple Water Withdrawal Violations

From April 27 to May 3, DEP’s Oil and Gas Compliance Database shows oil and gas inspectors filed 727 inspection entries and caught up with posting reports from the week before.

So far this year-- as of April 26--

-- NOVs Issued In Last Week: 44 conventional, 9 unconventional

-- Year To Date - NOVs Issued: 3,080 conventional and 363 unconventional

-- Enforcements 2024: 186 conventional and 50 unconventional

-- Inspections Last Week: 330 conventional and 347 unconventional

-- Year To Date - Inspections: 5,439 conventional and 8,301 unconventional

-- Wells Drilled Last Week: 1 conventional and 0 unconventional

-- Year To Date Wells Drilled: 40 conventional and 112 unconventional

Act 13 Impact Fee Revenue

DEP’s Latest Oil & Gas Workload Report (April 26) Shows ZERO Shale Gas Wells Drilled In That Week

This slow pace of adding shale gas wells-- along with very low natural gas prices-- will have a significant, negative impact on Act 13 impact fee revenue.

Revenue from the 2023 Act 13 impact was already down 25%-- $105 million-- from the year before. Read more here.

The fee is not based on gas production, but rather a per shale gas well fee. Conventional well owners do not pay this fee.

Conventional Wells Abandoned By Quaker State

On April 29, 2024, DEP inspected a series of 12 conventional wells owned by Quaker State Corp in Irwin Township, Venango County. The wells included Surrena 1, 7, 8, 10, 11, 20, 21, 25, 27, 28, 31, and 32.

DEP’s inspection reports [Surrena 27 - example] said the inspector was onsite with James Samuels of Arcadis consulting who was attempting to locate wells abandoned by Quaker State Corp.

The inspector noted-- “After the wells were drilled the property was strip mined and reclaimed, subsequently the wells have been covered over with fill dirt.”

“No signs of a well were observed at supplied coordinates. No definite well was located. Well remains abandoned.”

DEP’s eFACTS database has Quaker State Corp [Pennzoil brand] owning 12,505 conventional wells, most in “inactive” status, which means they aren’t producing, but they are not plugged either. Inactive status is on the road to abandonment.

DEP Confrims Conventional Well Abandoned Status

On May 1 to 3, 2024, DEP did a number of inspections to confirm conventional abandoned well status with Unknown owners in-

-- Butler County, Lancaster Township: Brennen 2 - venting gas

-- Erie County, Millcreek Township: 2818 W. Lake Road

-- Erie County, Girard Township: 7820 Cole Springs Rd. - venting gas in creek

EQT Fails To Plug Shale Gas Well For Nearly 4 Years

On May 1, 2024, DEP did a follow-up inspection of the Lohr 12H shale gas well owned by Rice Drilling B LLC [now EQT] in Somerset Township, Washington County and found it was still abandoned and not plugged.

DEP originally issued the violation for abandonment on October 27, 2020. In 2020, EQT responded to the violation by saying “they intended to add this well to its plugging program.”

DEP’s inspection report said EQT responded to a DEP on May 2, 2024 saying “they added the well to their plugging schedule for 2025.”

443 Conventional, 2 Shale Gas Abandoned Well Violations In 2024

So far in 2024, DEP issued 443 new or continued violations to conventional oil and gas well owners and 2 shale gas well owners for abandoning wells and not plugging wells.

Not counting Quaker State/Pennzoil’s nearing abandoned 12,505 conventional wells… yet.

Dumpster Fire At Conventional Well Site

On April 18, 2024, DEP did an inspection of the East Side 85 conventional well in the City of Warren, Warren County owned by John D. Branch in response to a reported fire at the well site.

The fire was in a large dumpster being used for drill cuttings. The dumpster was rigged with a gas burner used to dry out the drill cuttings with a roof structure made of wood framing and a plastic liner.

This was the material that caught fire, according to DEP.

DEP’s inspection report said the company was going to rebuild the roof with metal framing and roof material.

No violations were included in the report. There was no impact on the adjacent wells or evidence of a spill or leak of wastewater, according to DEP.

Conventional Drill Cuttings Disposed In Unlined Pit

On April 29, 2024, DEP inspected conventional well Lot 437 33 in Sheffield Township, Warren County owned by R & N Resources LLC and found drill cuttings “directed into an unlined pit.”.

The well was recently drilled and shut in and the site had been seeded and mulched.

DEP’s inspection report had no violations.

Conventional Well Gas Migration/Venting Gas

On April 24, 2024, DEP did a follow-up inspection on the LTV2 conventional gas well owned by Questa Petro Co. in Rostraver Township, Westmoreland County and found it was still venting gas in a manner that produced a hazard to public health and safety.

The original violation for venting was issued on February 26, 2024. The owner failed to take any action to clear the violation.

DEP’s inspection report also includes violations for failure to submit production and waste generation and well integrity reports.

The owner is-- again-- requested to submit a written report by May 24, 2024 on how this well will be brought into compliance.

On April 29, 2024, DEP inspected the James Burns 3074 gas well in Rose Township, Jefferson County owned by Diversified Prod LLC as a result of a complaint of gas contaminating a private water supply.

DEP found gas continued to be detected in the soil on the outside of the well-bore and in slam bar holes made by the inspector.

DEP originally issued violations for the leaking gas well on March 7, 2024 recommending the owner either repair or plug the well.

DEP’s inspection report continued violations and noted DEP is waiting for a formal written plan and response from the owner which is due May 6.

Conventional Owner Failed To Respond Spill Violations For 5+ Years

On April 30, 2024, DEP did a follow-up inspection at the Buhl Farm 1 conventional well in Economy Borough, Beaver County owned by Edward W. Benko and found nothing was done to clean up multiple spills at the site since the last inspection on January 12.

The original spill violations were issued on July 18, 2018-- nearly 6 years ago-- with no action by the well owner.

DEP’s inspection report requested the owner-- again-- to submit a written report by May 14, 2024 on how the well will be brought into compliance..

Leaks, Inadequate Shale Gas Wastewater Containment

On April 26, 2024, DEP inspected the Corbett Shale Gas Well pad in Derry Township, Westmoreland County owned by XPR Resources LLC and found the wastewater storage tanks were “heavily rusted” and other equipment was not within secondary containment.

A wood pallet was floating in water near the wastewater tanks and tall vegetation was growing in secondary containment.

DEP’s inspection report contained multiple violations for these infractions and for insufficient secondary containment holding capacity.

The owner of the three shale gas wells on this pad was requested to submit a written report by May 17, 2024 on how the wells will be brought into compliance.

On April 30, 2024, DEP did an inspection of the Drape James Shale Gas Well Pad in Frazer Township, Allegheny County owned by Range Resources Appalachia, LLC in response to a spill notification from the company.

DEP found multiple areas impacted by drilling mud spills, most likely multiple leaks from secondary containment.

he company wanted to wait at least two weeks to look for the leaks after drilling equipment was removed, according to DEP.

In response, DEP said, "The Department recommends the Operator promptly remediate the release and promptly find and repair any holes or tears in the secondary containment to prevent any further releases."

DEP’s inspection report included multiple violations for the spills and requested the operator to submit a written report by May 14, 2024 on how the well pad will be brought into compliance.

2024 Land Recycling/Brownfield Cleanups

So far in 2024, DEP received or acted on 114 Act 2 Land Recycling notices related to oil and gas facility site cleanups. Read more here.

Failed To Address Pipeline/Shale Gas Pad E&S Violations

On April 30, 2024, DEP did a follow-up inspection of the Anomaly Digs Pipeline construction site in Union Township, Clearfield County owned by Enterprise TE Prod Pipeline Co. LLC and found there was no progress in addressing erosion and sedimentation control failures.

DEP was joined at the site by representatives of Enterprise to discuss how the company would address violations issued on April 19.

The company disagreed with DEP that certain features were water courses and noted there was frequent ATV/UTV use of the pipeline right-of-way.

DEP’s inspection report continued the previous violations and added a new violation for failure to obtain a permit prior to maintaining or modifying a water course.

DEP is awaiting the owner’s response to the original violations.

On April 30, 2024, DEP did follow-up inspections of four shale gas well pads in Beaver County owned by Geopetro LLC and found none of the erosion and sedimentation violations issued from January through March have been addressed.

The well pads include--

-- Berovich Bea Pad, Industry Borough with violations since January 31, 2024

-- David Burdick Pad, Ohioville Borough with violations since March 25, 2024

-- Ferrebee BEA well site Ohioville Borough with violations since January 31, 2024

-- Fedorchak Pad, Ohioville Borough with violations since February 21, 2024.

The inspection reports do not include follow-up actions for the well owner.

Shale Gas Drillers Exceeding Water Withdrawal Limits

DEP issued violations to Apex Energy, LLC, Appalachian Water Services, CNX Gas Company, LLC, Greylock Production, LLC, INR Operating, LLC, Keystone Gas Solutions and Olympus Energy, LLC for violations related to water withdrawals used in shale gas drilling in Allegheny, Fayette, Washington and Westmoreland counties. Here are the details--

On May 3, 2024, DEP issued a notice of violation to CNX Gas Company, LLC for exceeding its allowable water withdrawals or failing to report water withdrawals at multiple sites in Allegheny, Washington and Westmoreland counties for more than 57 dates in 2020 through 2023.

The water sources included--

-- PA American Water Meter Vault on Rt. 980 in North Fayette Township, Allegheny County

-- Southern Findlay Twp. Municipal Authority Tap in Findlay Township Allegheny County

-- Washington Reservoir #4 in North Franklin Township, Washington County

-- Westmoreland Authority’s Beaver Run Reservoir in Bell & Washington Townships, Westmoreland County

The notice gives the company 10 business days to respond to the violations.

On May 3, 2024, DEP issued a notice of violation to the Apex Energy LLC shale gas drilling company for exceeding its allowable water withdrawals from two water sources in Westmoreland County.

Apex exceeded water withdrawal limits from Little Sewickley Creek in Hempfield Township on 40 days between 2020 through 2023.

Apex had one day where it exceeded water withdrawal limits from the Municipal Water Authority of Westmoreland County also in Hempfield Township in 2022.

The notice gives the company 10 business days to respond to the violations.

On May 3, 2024, DEP issued a notice of violation to Appalachian Water Services for exceeding allowable water withdrawals from the Monongahela River at Masontown Borough, Fayette County between 2020 through 2023.

The notice said Appalachian failed to monitor passby rates and report use for 17 days in 2020 and reported 10 days of exceedances.