HARRISBURG –During a Senate Appropriations Committee hearing to examine the budget for the Pennsylvania Department of Environmental Protection (DEP), Sen. Gene Yaw (R-23) expressed concerns over the rising costs of well-plugging in Pennsylvania. Particularly, Yaw noted the sharp increase in expenses since the involvement of federal funding under the Inflation Reduction Act.
Yaw, who serves as chairman of the Senate Environmental Resources and Energy Committee, pointed to a discrepancy in well-plugging costs, explaining that with state money, DEP paid $6,285 to plug a well. However, with additional federal funding, it suddenly cost the department $100,000 per well.
“That’s a significant difference in the number of wells that could be plugged,” Yaw said. “I get the feeling we’re wasting an awful lot of money. With 27,000 wells out there, we have to figure out a way to do this quickly and efficiently and I’m not sure that’s happening.”
Yaw also raised concerns about the department’s expensive bidding process and size of well packages deterring U.S. companies that specialize in well-plugging from coming to Pennsylvania.
Act 96 of 2022, which was approved by Yaw’s committee, created a sustainable plan to cap some of Pennsylvania’s orphaned oil and gas wells through a grant program. The program targets abandoned wells unlikely to be chosen through the agency’s existing procurement-oriented program. In three years, Yaw said, there hasn’t been one well plugged under that program.
Acting Secretary Jessica Shirley said her department has done their part by reviewing the applications and approving all but one. They await approval from the U.S. Department of Interior.
During the hearing, Yaw also addressed permitting reform, grid reliability and improvements to the Chesapeake Bay Watershed through focus on local water qualities. The Senate Appropriations Committee will continue its series of hearings to closely examine Gov. Shapiro’s massive spending plan through March 6.
For more state-related news and information, constituents can visit Senator Yaw’s website at www.SenatorGeneYaw.com or follow him on Facebook and X @SenatorGeneYaw.
CONTACT:
Elizabeth Weitzel
717-787-3280