Should bonds be used to fix Pa.’s abandoned well problem?
Friday, May 5, 2023
Arguments exist both for and against implementing higher bonds for conventional oil and gas well operators in Pennsylvania to reflect the actual cost of plugging a well, according to Farm and Dairy.
On one side of the debate, environmental groups are advocating for higher bonding amounts because they believe it will alleviate the taxpayers’ burden of plugging abandoned wells and give operators the incentive to plug wells at the end of their profitable lifespan.
On the other side of the debate, the Pennsylvania Department of Environmental Protection is still working to streamline the process of bond forfeiture to make it a more viable enforcement option. Additionally, industry advocates believe raising bonds would unduly burden smaller operators, which make up most of Pennsylvania’s conventional industry — more than 5,000 of the state’s 5,850 conventional operators own less than 10 wells.
Learn more: Farm and Dairy > Are higher bonds the way to fix the abandoned oil and gas well problem?
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