Diversified may be most responsible for plugging abandoned Pa. wells
Tuesday, August 28, 2018
Alabama-based Diversified Gas & Oil PLC may bear most of the responsibility for plugging abandoned oil and gas wells across Pennsylvania, all because of its business model, according to the Pittsburgh Post-Gazette.
Acquiring smaller companies and their old and gas wells, Diversified finds itself in the unique position of owning a plethora of unproductive wells — nearly all those ordered to be plugged by the state Department of Environmental Protection on July 25.
The company is following a strategy of keeping the conventional wells active as long as possible without drilling new ones — counting on its volume and efficiency to allow it to profit on the fuel production that others have abandoned.
However, the Pennsylvania DEP is cracking down on this business model, worried the cost for plugging its mass amounts of idle wells may overwhelm the company and fall on the state.
Learn more: Pittsburgh Post-Gazette > Too big to fail: How one gas company can leave a mark on Pennsylvania
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