Pa. hearing on HB 364 spotlights thousands of abandoned oil and gas wells, funding and bonding debate

The House Environmental Resources & Energy Committee convened a public hearing on the abandonment of oil and gas wells and House Bill 364, hearing testimony from Department of Environmental Protection officials, academic and advocacy researchers, and industry representatives about the scale of undocumented wells and options to fund and enforce their plugging.

Committee members were told the issue matters because improperly abandoned wells can release methane and volatile organic compounds, contaminate groundwater and present explosion risks, while the cost to locate and plug wells could run into the billions. Kurt Kaplowski, head of the DEP Oil and Gas Program, told the committee the Commonwealth often acts as “the plugger of last resort” and described a mix of historic, reporting and staffing problems that leave many wells unaccounted for.

DEP testimony and outside witnesses gave several data points and proposals. Kaplowski described a recent DEP contract with Harrisburg University and Indiana University of Pennsylvania to digitize and georeference legacy maps: more than 2,800 maps processed and about 31,500 well features identified, only ~6,500 of which matched existing DEP records within 100 feet — a preliminary indication of roughly 25,000 undocumented well features uncovered by the mapping work. He told the committee that DEP’s internal analysis finds about 3,100 wells identified as abandoned since 2017 and that about two‑thirds of those have no bond coverage because of past statutory changes; Kaplowski also noted DEP had 226 oil and gas program staff in 2015 and about 190 at present and said enforcement and field inspection capacity are constrained.

Outside witnesses offered overlapping findings and proposals. Ted Boatner of the Ohio River Valley Institute cited a recent national study estimating roughly 340,000 undocumented abandoned wells in Pennsylvania and pressed for systemic funding such as a production fee or severance tax and trust‑account financial assurance for new wells. Melissa Ostroff of Earthworks described on‑the‑ground incidents—leaking wells close to homes, parks and schools—and argued that bonding reform is needed so taxpayers do not bear the cost of industry abandonment. Adam Peltz of the Environmental Defense Fund and EDF‑partnered projects presented pilot mapping work using drones and magnetometers; Peltz described an 8‑square‑mile drone survey in Clarion and McKean counties that found roughly 250 likely wellbores and said that team activities would expand to urban southwest Pennsylvania and involve community outreach and landowner incentives.

Industry testimony emphasized economic constraints and data accuracy. Tyler Martin, environmental care coordinator for Cameron Energy Company, a conventional operator, warned that a proposed $38,000 per‑well bond figure would be unaffordable for many small and medium conventional operators, saying, “We cannot afford this,” and noting his company’s estimate that increased bonding obligations under that number would total roughly $68.4 million for Cameron’s ~1,800 conventional wells. Martin said Cameron has plugged 260 wells over about 12 years and described cases where DEP data misclassifications and incomplete databases had led to flawed public claims about operator abandonment.

Former DEP secretary John Quigley, now a senior fellow at the Kleinman Center, urged a comprehensive, multi‑element response: long‑term funding (severance/production fees or other sources), broader use of detection technology, modernization of DEP’s data systems, better plugging technology and post‑plugging monitoring, and stronger enforcement and staffing. Quigley said the IIJA money already received is “a drop in the bucket” and recommended integrating new detection and monitoring tools — including airborne and satellite methane detection — with on‑the‑ground verification.

Committee members and witnesses also described federal and state funding already in play and near‑term procedural steps. Kaplowski said DEP used an initial $25 million IIJA grant to plug more than 220 wells at an average cost of about $110,000 each; DEP later received a $76 million formula grant and reported more recent contract costs nearer $69,000 per well, with specific contracts in national forest lands returning bids near $45,000 per well. Kaplowski said DEP has posted a request for proposals for well plugging contractors (open until June 26, per his testimony) to allow more flexible procurement and innovation, and that DEP is pursuing forfeiture, orders and civil penalties against nonreporting operators. Witnesses and staff discussed using matching funds and partnerships (for example with the Pennsylvania Game Commission and the U.S. Department of the Interior) to leverage federal matching for state spending.

Where testimony diverged: advocates urged higher bonding, a production fee or trust accounts to ensure industry pays; researchers emphasized large undocumented inventories and recommended national‑scale mapping and workforce development; industry representatives warned that high per‑well bond levels could drive solvent operators out of business and called for accurate DEP records and risk‑based, phased policy changes.

The hearing recorded no final vote on HB 364. Committee members and witnesses indicated next steps would include continued review of HB 364 (the bill would restore the Environmental Quality Board’s authority to set bonding levels), further briefing on DEP’s mapping and RFP work, and additional technical follow‑up on funding models, workforce training and data modernization.