Oil and Gas Well Drilling and Production in Pennsylvania … This problem is especially acute in Pennsylvania because of the history of oil and gas … Fact Sheet Commonwealth of Pennsylvania • Department of Environmental Protection Oil and Gas Well Drilling and Production in Pennsylvania Pennsylvania has the proud heritage of being the first place in the world where a commercially successful well was drilled for oil production. Edwin Drake drilled the first well in 1859 in Venango County, …

REGULATION With passage of The Oil and Gas Act in 1984 ( 58 P.S. §601.101 et seq.), Pennsylvania modernized environmental controls and resource management for development of crude oil and natural gas. Like previous laws, this Act required that all new wells be permitted by the Commonwealth before drilling. In addition, it required registration of any existing well not previously permitted, and established bonding requirements for wells. The Department of Environmental Protection’s Oil and Gas Management Program develops and enforces regulations for the bonding, permitting, and registration of wells; environmental requirements for drilling operations, waste disposal, cementing and casing of wells; and proper plugging of wells upon abandonment. The Commonwealth does not get involved in the regulation of production or wellhead sales, and does not tax production or the value of oil and gas properties. Some county governments assess taxes on (projected revenues from) oil and gas property. PERMITTING To drill a new oil or gas well in Pennsylvania, the operator must post a bond and get a well permit from the Department of Environmental Protection (DEP). In the permit application, the applicant must show the location, proximity to coal seams, distances from surface waters and water supplies. Technical staff in DEP’s Regional Offices review the permit application to determine whether the proposed well would cause environmental impacts, conflict with coal mine operations, or well spacing requirements. An oil and gas operator who plans to drill a group of wells that will disturb five or more acres over the life of the project, must apply to DEP for a separate permit for storm water management. This “disturbed area” includes well sites and associated roads, pipelines, and storage areas to be constructed. The affected surface landowner and coal deep-mine operator have the opportunity to file an objection about the location of the well. If DEP’s permitting staff find that no adverse impacts would result, the operator will receive a permit to drill the well. Commonwealth of Pennsylvania Department of Environmental Protection www.depweb.state.pa.us 5500-FS-DEP2018 Rev. 4/2009 OIL AND GAS WELL BONDS Wells drilled in Pennsylvania after April 17, 1985, must be bonded. The bond is a financial incentive to ensure that the operator will adequately perform the drilling operations, address any water supply problems the drilling activity may cause, reclaim the well site, and properly plug the well upon abandonment. The bond amount for a single well is $2,500; a blanket bond to cover any number of wells is $25,000. MONITORING DEP Field Operations staff inspect well sites to ensure that the operator sites and drills the well according to the permit and applicable laws. DEP staff also investigate complaints where an oil or gas well or drilling activity may be causing environmental or public safety concerns, especially when contamination of a drinking water supply is suspected.

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