Committee backs bill to restore DEP authority on plugging bonds for conventional wells

The House Environmental Committee voted to report House Bill 364 to the full House. The bill would restore to the Department of Environmental Protection and the Environmental Quality Board the authority to adjust required surety and bond amounts for conventional gas wells, reversing a change made in 2022 that fixed a $2,500 bond minimum and limited regulatory adjustment for 10 years.

Committee members described a gap between the current $2,500 surety on many conventional wells and published estimates of plugging costs. Committee staff cited DEP data showing that, since 2022, roughly 1,154 wells that were active at the start of 2022 are now listed as abandoned, while roughly 308 wells have been plugged in the same period. Sponsors said small bonding amounts can encourage operators to walk away from liabilities; the bill would allow DEP and the Environmental Quality Board (EQB) to increase bonding levels for new conventional wells so operators bear more of the plugging cost.

Opponents warned that sharply higher bonding requirements could push small drilling firms out of business and lead to more abandonment. A committee member said federal funding is available for plugging work and argued that government programs could be used more efficiently. One member cited examples from recent hearings: a nonprofit seeking support to plug two wells was quoted a combined $170,000 by an applicant, while private contractors in the oil field estimated plugging costs in some cases at $10,000 to $20,000. Committee debate repeatedly distinguished legacy abandoned wells from wells that have been active in recent years; sponsors said the bill applies to future wells and restores regulatory flexibility for bonding going forward. The committee recorded sufficient yes votes to report the bill to the House as a whole.