The Thorny Issue of PA’s Old Conv. Wells & Who Pays to Plug Them

According to a new article by the Pittsburgh Post-Gazette, abandoned oil and gas wells can be found "everywhere" in Pennsylvania. An influx of new federal funding gives the state Dept. of Environmental Protection (DEP) new urgency in finding and plugging them. However, it is the thorny issue of who pays or should pay when the owner is known that caught our attention. In some cases, producers (and speculators) buy leases and land, knowing that new drilling (in particular shale drilling) may one day happen on the property, but the new owners didn't sign up for the financial responsibility to plug old/existing wells on the property. Should they (instead of taxpayers) be on the hook to pay?

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