During a recent Senate Appropriations Committee hearing, Senator Gene Yaw voiced concerns about the rising costs associated with well-plugging in Pennsylvania. The budget review of the Pennsylvania Department of Environmental Protection (DEP) revealed a significant increase in expenses since federal funding became involved under the Inflation Reduction Act.
Senator Yaw highlighted a discrepancy, noting that DEP previously paid $6,285 per well using state funds, but this cost surged to $100,000 per well with additional federal support. “That’s a significant difference in the number of wells that could be plugged,” Yaw stated. “I get the feeling we’re wasting an awful lot of money. With 27,000 wells out there, we have to figure out a way to do this quickly and efficiently and I’m not sure that’s happening.”
Concerns were also raised about the department’s bidding process and large well packages potentially discouraging U.S.-based well-plugging companies from operating in Pennsylvania.
Act 96 of 2022 established a sustainable plan for capping orphaned oil and gas wells through grants, targeting abandoned wells unlikely to be addressed by existing programs. However, no wells have been plugged under this program in three years.
Acting Secretary Jessica Shirley responded that her department has reviewed applications and approved all but one; they are now awaiting approval from the U.S. Department of Interior.
The hearing also covered permitting reform, grid reliability, and improvements to local water quality within the Chesapeake Bay Watershed. The Senate Appropriations Committee will continue reviewing Governor Shapiro’s spending plan until March 6.
For further updates on state-related issues, constituents can visit Senator Yaw’s website or follow him on social media platforms Facebook and X @SenatorGeneYaw.
