Friday, November 22, 2024

DEP So Far In 2024: 6,907 Violations Issued To Owners Of Conventional Oil & Gas Wells - 153% More Than In 2021; 830 Violations For Abandoning Their Wells -- Exceeding All Of 2023

As of November 15, the Department of Environmental Protection issued owners of conventional oil and gas wells
6,907 violations for violating state laws and regulations, exceeding the 6,860 violations issued in all of 2023.  And, there are five+ weeks left in 2024.

These included 830 violations for abandoning and not plugging their wells, again exceeding the 512 abandoned well violations issued in all of 2023 to conventional well owners.  Read more here.

And these trends are not encouraging.

DEP’s 2022 Oil and Gas Annual Report said 5,416 notices of violation were issued to conventional operators in 2022 and 4,514 violations in 2021 and in 2015, DEP issued just 1,024 violations to conventional operators. Read more here.

The violations so far in 2024 are 153% above the total in 2021-- just three years ago.

Despite the dramatic increase in violations issued, DEP has only seen an increase in noncompliance, confirming yet again its conclusion that the conventional oil and gas industry has a culture where non-compliance is an “acceptable norm.”  Read more here

Abandoning wells to avoid the financial responsibility for plugging them and ignoring orders and violations from DEP is rampant in the industry as well.

Paper Is Flying

DEP has stepped up its game in issuing violations as noted above, but these actions are not denting the tsunami of conventional well owner noncompliance that is building higher and higher every year.

Just this year on abandoned wells DEP increased its enforcement actions--

-- D & B Gas Production LLC was issued violations for abandoning 110 conventional wells [Read more here]

-- Median Resource Development Co LLC was issued violations for abandoning 101 conventional wells [Read more here]

-- John B. Best for 30 conventional wells [Read more here] following up on 64 violations for abandoned wells issued in 2023 [Read more here]

-- Quaker State Corp [Pennzoil Brand] abandoned 12,505 conventional wells when they left the state and DEP has been working with a consultant-- Arcadis.us-- this year to try to locate some of those wells.  [Read more here]

-- Stonehaven Energy MGT Co LLC was sent notices of violation for well abandonment that were “return to sender.”  The company owns 727 conventional wells.  [Read more here]

Failing Behind

DEP is spending $45 million dollars (or so) in federal and state taxpayer funds to plug wells abandoned by conventional well owners-- 270 as of October 23.  Read more here

DEP was just approved to get $75 million more in federal taxpayer funding.

Even with what DEP has often said is a 50 year project to plug abandoned wells left behind by conventional well owners, Pennsylvania is still falling behind as hundreds more wells are abandoned every year.

What’s The Next Step?

The multi-billion dollar question for taxpayers who have to foot this well plugging bill instead of the conventional industry is-- what are the next steps to reverse this culture of noncompliance in the conventional oil and gas well industry?

Stronger Laws Needed

The Senate and House have repeatedly failed to pass any meaningful change to law to stem this tide of this noncompliance and in fact have actively blocked any changes in financial assurance and bonding to have conventional well owners take responsibility for plugging their wells.  Read more here.

In November 2023, Gov. Shapiro made sharp comments about the need for stronger laws to deal with the ‘corporate greed’ that lets conventional oil and gas well owners get away with abandoning wells for too long.  Read more here.

“A company that rolled into town with big promises, then rolled right back out as soon as the money dried up, leaving the local community left to hold the bag, to clean up the mess that they left behind. 

“Today, Pennsylvania is now facing the consequences of this corporate greed, of this legacy, of an industry that made a buck off of our natural resources and got away with abandoning gas wells without properly plugging them. 

“It's estimated that there are more than 350,000 wells like this one across our Commonwealth, orphaned and abandoned.

“We are fighting back against this legacy of corporate greed I mentioned before, of an industry that just simply got away with abandoning wells for far too long. 

“My administration is holding companies that walk away from unplugged wells accountable. 

“I've directed the Department of Environmental Protection to take any and all necessary enforcement actions against these companies to be able to recover what we can from them to support this important work.

“We will aggressively pursue these operators that abandon their responsibilities and do our best to make sure they pay what they owe. 

“Taxpayers shouldn't have to foot the bill just because a company thought it could get away with cutting corners, whether that's taxpayers at the federal level or state level. 

“It should be the corporate greedy folks who are held accountable, not the taxpayers.”

In response to a question from the media at that same event in November 2023, Gov. Shapiro said this on the need for stronger state environmental laws--

“I'd like to see our state laws be much stronger when it comes to being able to tackle pollution and contamination left behind by greedy executives.

“Look, I was Attorney General for six years prior to being governor, I haven't met too many greedy corporate executives who are happy to pay up, but I'm pretty damn dogged. 

“We will go after them and we will hold them accountable to the fullest extent of the law.

“You are correct in identifying the fact that our laws could be strengthened, that the dollars required when industry comes in for bonding and what have you, should be increased and we need to do a better job going forward in Pennsylvania to hold polluters accountable and to make sure that that imbalance that exists between the power of corporations and the power of the people gets rebalanced. 

“That's something I've focused on throughout my whole career, and I'm going to continue to do that work as governor.”  Read more here.

Resource Links - Conventional Well Noncompliance:

-- DEP Issued Record 6,860 Notices Of Violation To Conventional Oil & Gas Operators In 2023-- Nearly 52% More Than In 2021; ‘Culture Of Non-Compliance’ Continues  [PaEN] 

-- DEP Imposed $422,365 In Penalties On 14 Conventional Oil & Gas Well Operators In 2023 For Abandoning Wells, Spills, Venting Gas; 93 Operators Cited For Abandoning 271 Wells  [PaEN]

-- 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’ [PaEN - 12.29.22]

-- Gov. Shapiro: We Need Stronger Laws To Deal With The ‘Corporate Greed’ That Let Oil & Gas Operators Get Away With Abandoning Wells For Far Too Long [PaEN - 10.19.23]

-- PUC Approves Emergency Order Appointing Aqua Pennsylvania Temporary Operator For 6 Rhodes Estate Water Companies As Fallout Continues From Conventional Oil Well Wastewater Spill In Venango County  [10.30.24]

-- The Derrick - Randy Bartley: Priority To Plug Old Conventional Oil, Gas Wells Deepens For DEP  [PDF of Article]  [11.26.24]

-- The Derrick - Randy Bartley: Plugging A Problem Abandoned Conventional Gas Well  [PDF of Article]  [11.25.24]

-- Democrats On House Environmental Committee Report Out Bill To Help Prevent The Routine Abandonment Of 561 Conventional Oil/Gas Wells A Year  [PaEN -5.23.23]

-- House Hearing: Let’s Work Together To Make Conventional Oil & Gas Industry Practices Cleaner, Respect Property Rights, Protect Taxpayers And Prevent New Abandoned Wells  [PaEN - 4.24.23]

-- House Committee Reports Out Bills To Ban Road Dumping Conventional Oil & Gas Wastewater; Prohibit Use Of PFAS 'Forever Chemicals’ In Consumer Products  [PaEN - 6.11.24] 

-- House Hearing: Shapiro Administration Supports Bill Banning Road Dumping Oil & Gas Wastewater, Prohibiting Its Use As Coproduct Under Residual Waste Regulations  [PaEN - 6.10.24] 

-- House Hearing: Penn State Expert Says ‘Pennsylvania Should Ban Road Spreading Of Oil & Gas Wastewater;’  Contaminants Exceed Health, Environmental Standards  [PaEN - 6.10.24]

-- House Hearing: Penn State Center For Dirt & Gravel Road Studies Says Road Spreading Oil & Gas Wastewater Is Not An Effective Dust Suppressant, Does Not Meet Environmental Testing Standards  [PaEN - 6.10.24]

-- House Hearing: A First-Hand Account Of How Repeated, Unlimited Road Dumping Of Oil & Gas Drilling Wastewater Is Tearing Apart Dirt Roads And Creating Multiple Environmental Hazards  [PaEN - 6.10.24] 

-- House Hearing: Protect PT - Road Dumping Oil & Gas Wastewater ‘Is Disproportionately Responsible For Negative Impacts On Human Health,’ Especially From Radioactive Radium  [PaEN - 6.10.24]

-- House Hearing: On Road Dumping Oil & Gas Wastewater - ‘We Studied This For Nearly 30 Years And The Conclusions Are The Same - The Wastewater Contains Harmful Contaminants’  [PaEN - 6.10.24] 

-- Illegal Wastewater Dumping Continues, Even On Mothers Day, Conventional Oil & Gas Well Owners’ Campaign Of Intimidation Of Senate Witness; Now Dumping Before It Rains, On Paved Roads [PaEN - 5.14.24] 

-- Two Months: Road Dumping Conventional Oil & Gas Wastewater Continues To Surround The Home Of A Senate Witness Who Opposes The Illegal Practice  [PaEN - 5.7.24]

-- Witness At Senate Hearing On Oil & Gas Wastewater Road Dumping Reports Her Home  Has Been Surrounded By Dumping; Dumping Again On The Upswing In 2024  [PaEN - 4.25.24]]

-- Senate Hearing: The Case For An Immediate, Total Ban On Road Dumping Conventional Oil & Gas Wastewater  [PaEN - 4.17.24]

-- Senate Hearing: Penn State Expert: ‘No More Research That Needs To Be Done’ To Justify A Ban On Road Dumping Conventional Oil & Gas Wastewater  [PaEN - 4.17.24] 

-- Senate Hearing: First-Hand Account Of Health, Environmental Impacts From Road Dumping Conventional Oil & Gas Wastewater - ‘Inhaling Oil & Gas Wastewater 24-Hours A Day’  [PaEN - 4.17.24]

-- Senate Hearing: 3.5 Million Gallons Of Conventional Oil & Gas Wastewater Dumped On PA Public Roads Since DEP’s ‘Moratorium’ On Dumping Started 6 Years Ago  [PaEN - 4.17.24]

PA Oil & Gas Industry Public Notice Dashboards:

-- PA Oil & Gas Weekly Compliance Dashboard - Nov. 9 to 15 - Failed Well Pluggings; Leaking Gas Storage Area Wells; More Abandoned Conventional, Shale Gas Wells  [PaEN]

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

-- DEP Posted 60 Pages Of Permit-Related Notices In November 16 PA Bulletin  [PaEN]  

Related Articles This Week:

-- DEP Oil & Gas Advisory Board Meets Dec. 5 On Methane Emissions Reduction; Federal Plugging Program; Injection Well Primacy; Financial Assurance; Drilling & Permitting Activity Impacts On DEP Budget   [PaEN] 

-- Pine Creek Headwaters Protection Group Update: Industrial Shale Gas Development In Tioga State Forest Prioritizes Industry Profit Over Constitutional Mandate To Preserve, Protect State Forest Lands  [PaEN] 

-- Oil & Gas Wastewater Release At Bear Lake Properties Injection Well In Warren County Went Unreported For 109 Days; More Contamination Discovered Along Related Wastewater Pipeline Route  [PaEN]

-- EPA, Justice Dept., DEP Announce $5.275 Million In Penalties, Plus $1.4 Million In Abandoned Well Plugging Funding Against Shale Gas Drilling Companies-- XTO Energy, Inc., Hilcorp Energy Company For Federal, State Clean Air Act Violations  [PaEN]

-- DEP Prints Corrected Notice Inviting Comments On New Air Pollution Permit For Revolution Natural Gas Cryogenic Processing Plant In Washington County; Plant Suffered Major Explosion, Fire In 2022  [PaEN]

-- Susquehanna River Basin Commission Meets Dec. 12 On New Fee Schedule; Water Withdrawals, Including 4 Shale Gas; New General Permit For Into-Basin Diversions  [PaEN] 

-- Susquehanna River Basin Commission Approved 42 Shale Gas Well Pad Water Use General Permits In October; 274 General Permits So Far In 2024  [PaEN]

-- DEP Reduces Permit Backlog By 75%, Completely Eliminates Backlog For Oil & Gas Permits; You Can’t Blame DEP Anymore For Permit Delays  [PaEN] 

-- Guest Essay: Protecting Public Health Means Enforcing Environmental Regulations While Helping Businesses Thrive - By Jessica Shirley, Acting DEP Secretary  [PaEN]

-- Gov. Shapiro Signs Executive Order Creating PA Permit Fast Track Program; Can't Blame DEP Anymore For Delaying Projects  [PaEN]

NewsClips:

-- National Review: Northeast Pennsylvania Needs Natural Gas - New Congress, New Federal Administration Should Overturn Delaware River Basin Commission Moratorium On Shale Gas Fracking - By Jason Adams  [PDF of Article

-- Marcellus Drilling News: Bear Lake Shale Gas Wastewater Injection Well Leak Went Undiscovered For 109 Days [PDF of article]  

-- Post-Gazette - Anya Litvak: Exxon And Hilcorp Shale Gas Drillers Settle Environmental Violations With Millions In Fines And Promised Air Quality Benefits 

-- Pittsburgh Business Times: PA Environmental Groups Urge Biden To Keep Block On LNG Gas Export Projects  [PDF of Article

-- Environmental Health Project Releases 2024 Year In Review [Shale Gas Drilling Health Impacts] 

-- Erie Times Letter: A Boon? Consider The Price Pennsylvania Pays For Fracking - By Katie Jones, FracTracker Alliance, Johnstown

-- Marcellus Shale Gas Coalition: David Callahan To Retire At End Of Year; Jim Welty To Take Over As President 

-- Pittsburgh Business Times: Current, Future Marcellus Shale Gas Coalition Leaders Talk Industry [Patrick Henderson Promoted To VP]  [PDF of Article]

-- Post-Gazette - Anya Litvak: Marcellus Shale Gas Coalition Announces New Leadership In New Year

-- WHYY - Susan Phillips: Climate Activists Criticize Exclusion From Philadelphia Gas Works Budget Process, Propose New Rules

-- Utility Dive: State Ratepayer Advocates Press FERC For PJM Capacity Market Changes, Citing ‘Crushing’ Prices [Not PA’s Consumer Advocate] 

-- Reuters: US LNG Gas Exports Primed To Jump As Price In Europe Hits One-Year High 

-- Reuters: US Natural Gas Drillers To Lift 2025 Output, Reversing Year Of Cuts- US EIA

-- Bloomberg: China’s Surging LNG Gas Imports From US Threatened By Next Trade War

-- Reuters: LNG Gas Tankers Divert To Europe From Asia After Russia Halts Supplies To Austria  [11.18.24]

-- Bloomberg: LNG Gas Traders Choose To Pay Penalties For Not Shipping Gas To Germany To Chase Higher Profits In Asia  [10.1.24]

[Posted: November 22, 2024]  PA Environment Digest 

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