Act 96 of 2022 includes provisions to increase the conventional oil and gas well blanket bond amount by $1,000 per new well annually.
The $1,000.00 blanket bond increase can be waived for a new well drilled if an operator provides evidence to DEP 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.
The program was included in Act 96 as an incentive for conventional well operators to plug orphan wells, rather than have taxpayers pay for the plugging.
On January 30, 2024, DEP did an inspection and approved Cameron Energy’s applications to use three conventional wells it plugged as part of the Act 96 program to qualify for a Blanket Bond increase waiver.
The wells-- Lot 396 396 Orphan 19, 20, and 21-- were located in Sheffield Township, Warren County and had no known operator. DEP inspection report [Orphan 20 example]
On February 1, 2024, DEP did an inspection and disapproved the use of conventional Lot 396 396 Orphan well 14 as part of the Act 96 Blanket Bond Waiver.
The request by Cameron Energy was denied because the plugged well was actively leaking crude oil and it was plugged in August of 2022, outside the one-year required timeframe.
The well is located in Sheffield Township, Warren County. [DEP inspection report]
PA Oil & Gas Industry Public Notice Dashboards:
-- Just 14 Days: PA Oil & Gas Weekly Compliance Dashboard - Jan. 27 to Feb. 9 - More Abandoned Conventional, Shale Gas Wells; Spills, Venting Gas, Contaminated Water Supplies [PaEN]
-- PA Oil & Gas Industrial Facilities: Permit Notices, Opportunities To Comment - February 10 [PaEN]
-- DEP Posted 74 Pages Of Permit-Related Notices In February 10 PA Bulletin [PaEN]
Related Articles This Week:
-- DEP Begins Emergency Project To Plug Abandoned Conventional Gas Wells In Scott Twp., Allegheny County; DEP Tried To Get Well Operators To Stop The Leaks For Nearly 9 Years [PaEN]
-- Guest Essay: DEP Ignored Abandoned Wells During Oil & Gas Wastewater Injection Well Permitting Process - By Laurie Barr, Save Our Streams PA [PaEN]
-- DEP OKs Cameron Energy Applications For Plugging 3 Orphan Conventional Wells Under Blanket Bond Increase Waiver Program; Denied 1 Plugged Well Leaking Crude Oil [PaEN]
-- PA Utility Law Project, Public Citizen Host Feb. 16 Webinar Exploring The Impact Of LNG Natural Gas Exports On Pennsylvania Families [PaEN]
-- Environmental Hearing Board Narrows, But Allows Protect PT Appeal Of Shale Gas Well Permit Renewals In Westmoreland County To Move Forward [PaEN]
-- Liberty Twp., Citizens Group Appeal EHB Decision On Permit For Tri-County Landfill In Mercer County Over Threats Posed By Birds, Radioactive Oil & Gas Waste [PaEN]
-- PJM Reports Natural Gas Power Plants Were Over Half The Forced Outages During Winter Storm Gerri In January; Special Procedures Used For Gas Generators Raised Questions About Market Impacts [PaEN]
NewsClips:
-- Philadelphia Medicine Magazine: Pitt Drops A Bombshell - The PA Health And Environment Studies On Fracking - By Dr. Ned Ketyer, Physicians for Social Responsibility Pennsylvania
-- Physicians For Social Responsibility Pennsylvania: Fact Sheet On Deal Between Gov. Shapiro, CNX Natural Gas Driller Allows Voluntary Self-Regulation Of A Fracking Company
-- Inside Climate News: In His First Year As Governor, Josh Shapiro Forged Alliances With The Natural Gas Industry, Angering Environmentalists Who Support Him
-- Inside Climate News: Q&A: New Rules In PA Require Drillers To Disclose Toxic Chemicals Used In Fracking
-- TribLive: Environmentalists, Natural Gas Drillers’ Group Divided On Transparency On Fracking Fluid Disclosures
-- The Energy Age Blog: PA DEP Begins Emergency Project To Plug Abandoned Conventional Gas Wells [Video From Plugging Site]
-- TribLive: Penn Township Board Will Visit Proposed Hyperion [Olympus Energy] Natural Gas Compressor Site
-- Inquirer - Will Bunch: Democracy Dies When PA Pols Tell Their Own Voters To Drop Dead On Fracking [Proposed LNG Plant In Chester, Delaware County]
-- Markets Insider: New Study Questions LNG Natural Gas As A ‘Bridge Fuel’ In Decarbonization
-- Forbes Guest Essay: US Natural Gas Prices Could Spike 14% Without Biden’s Pause On New LNG Export Terminal Permits Costing Consumers $18 Billion
-- Environmental Integrity Project: Biden’s Pause In New Permits For LNG Natural Gas Facilities Won’t Slow The Flow Of US Natural Gas Abroad
-- Daily Herald - Salena Zito: Democrats Say Biden’s Pause On New LNG Natural Gas Export Facilities Is Like ‘Throwing A Match In A Bale Of Hay’ [PA included]
-- Bradford Era: Feb. 10 Town Hall In Cyclone, McKean County To Discuss Appeal Of Catalyst Energy, Inc. Oil & Gas Wastewater Injection Well Permit
[Posted: February 11, 2024] PA Environment Digest
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