DEP: Conventional Oil & Gas Operators Will Not Be Eligible For New Methane Reduction Well Plugging Grants If They Are Not In Compliance With State Law, Regulations

The Department of Environmental Protection posted a notice on its website announcing conventional oil and gas well operators will not be eligible for new methane reduction well plugging grants if they are not in compliance with state law and regulations.

“To be eligible for this funding, an operator must be in compliance with statutory and regulatory requirements, including those related to the submission of well production, waste, and mechanical integrity assessment reports to DEP. 

“Additionally, failure to submit these reports subject operators to enforcement by DEP that includes civil penalty liability. 

“If you are interested in obtaining this funding and are currently not in compliance with these requirements, you should submit this information to DEP as soon as possible.”

“The federal Inflation Reduction Act (IRA) provides new authorities under Section 136 of the Clean Air Act to reduce methane emissions from the petroleum and natural gas sector through the creation of the Methane Emissions Reduction Program (MERP). 

“Nationwide, MERP will provide more than $1 billion in financial funding for grants and other activities to reduce methane.

“The Pennsylvania Department of Environmental Protection (DEP) will be receiving more than $44 million of this funding. 

“Part of Pennsylvania’s funding will be used to provide grants to conventional well operators to plug marginal conventional wells in their inventory. 

“A marginal conventional well (MCW) is defined as a conventional vertical or slightly deviated oil and/or natural gas well with a known operator, producing less than or equal to 15 barrels of oil equivalent per day (BOED) and/or 90 thousand cubic feet (Mcf) gas per day (1 BOE = 6 Mcf) over the prior 12 month period. 

“Most conventional wells, for which production data has been reported to the DEP, meet the definition of an MCW.”

Submitting Annual Reports

Operators can find information regarding the production, waste, and mechanical integrity assessment report submission process and requirements on DEP’s website (Electronic Submission Guides). 

Home use well operators can satisfy all three reporting requirements through the submission of a single form for each well (8000-FM-OOGM0001).

Visit DEP’s Methane Emission Reduction Program webpage for more information.  Questions should be directed to RA-epOilandGas@pa.gov. 

For more information on environmental programs in Pennsylvania, visit DEP’s website, Report Emergencies, Submit Environmental Complaints; Click Here to sign up for DEP’s newsletter; sign up for DEP’s eNotice; visit DEP’s Blog,  Like DEP on Facebook, Follow DEP on Twitter and visit DEP’s YouTube Channel.

PA Oil & Gas Industry Public Notice Dashboards:

-- PA Oil & Gas Weekly Compliance Dashboard - March 9 to 15  - Home Explosion; 140 More Abandoned Conventional Wells; Methane In Water Supply; Porcupine Causes Wastewater Spill  [PaEN]

-- PA Oil & Gas Industrial Facilities: Permit Notices, Opportunities To Comment - March 16 [PaEN]

-- DEP Posted 76  Pages Of Permit-Related Notices In March 16 PA Bulletin  [PaEN] 

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-- DEP: Conventional Oil & Gas Operators Will Not Be Eligible For New Methane Reduction Well Plugging Grants If They Are Not In Compliance With State Law, Regulations  [PaEN]

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[Posted: March 13, 2024]  PA Environment Digest