by Dan Peacock, Integral Corp. and Josh Sandberg, Well Done Foundation
Environmental hazards and liabilities are persistent challenges in redeveloping former industrial properties, and abandoned/orphaned gas or oil wells can make redevelopment particularly difficult. Across the United States, hundreds of thousands or more of these wells complicate land use and property values. The Interstate Oil & Gas Compact Commission 2021 Idle and Orphan Oil and Gas Wells report1, which covered 32 states and 5 Canadian provinces, states: “As of December 31, 2020, the states reported a total of 1,619,071 wells drilled and not plugged, and the provinces reported a total of 372,697.” In parts of central and western Pennsylvania and New York State, where oil and gas production has occurred for more than 150 years, thousands of abandoned wells may pose potential risks and restrict future use. These legacy wells and associated infrastructure constrain remediation and sustainable redevelopment projects, making state and federal investment a critical catalyst. Funding from the Infrastructure Investment and Jobs Act (IIJA), administered through the U.S. Department of the Interior’s Orphaned Wells Program Office, is helping transform these complicated and burdened properties and turn them into redevelopment and community opportunities.
Oil and Gas Development in Pennsylvania and New York
Oil and gas production began in western Pennsylvania in 18592, and the first documented natural gas well was developed in western New York as early as 1821. Although oil and gas production has fluctuated over time, industry growth and evolution has continued, and thousands of wells (if not hundreds of thousands) have been drilled across these regions. More recently, horizontal drilling and hydraulic fracturing have fueled a boom in Marcellus Shale gas development in northern and western Pennsylvania (a fracking ban remains in effect in New York3). Abandoned or improperly decommissioned wells and infrastructure can adversely affect communities by serving as conduits for the migration of methane, other hydrocarbons, and brine into aquifers, the land surface, and the atmosphere. The resulting impacts may include diminished groundwater quality, explosive hazards, and significant greenhouse gas emissions. The U.S. Environmental Protection Agency estimates abandoned wells emit approximately 275,000 tons of methane annually4,5.
Well Plugging and Decommissioning
Plugging old gas and oil wells can be a complex and costly process6. Typically, it involves determining location and inventory, evaluating the condition of the well and facilities, removing obstructions, and installing cement and mechanical barriers to permanently seal the borehole and prevent the migration of gas, oil, or contaminated water. Ideally, the seals are verified through testing and inspection, remaining equipment is removed and the site is restored to protect groundwater and support future land use. However, approved plugging methods may vary from operator to operator and are generally not consistent from state to state, and deviations to procedures are not consistently or systematically recorded.
Well Plugging and Abandonment: Work before the Plug
Well plugging and abandonment are far more involved than simply setting a rig over a well and sealing it with grout. Before work can begin, the well must first be located and verified, including confirmation of its registration status and available records. Landowner access agreements must be secured, and the project area must be evaluated for environmental permitting requirements associated with wetlands, streams, stream crossings, historic preservation sites, and sensitive resources.
After appropriate permits are secured, erosion and sedimentation control requirements must also be addressed before ground disturbance occurs. Access must then be established. Planning the access road route, securing rights-of-way, and constructing or improving the road can be costly. Many orphan wells have been abandoned for decades and are located in overgrown areas with no usable well pad. If this is the case, a new well pad must be constructed and can require clearing, grading, stabilization, and equipment access.
Regulatory notifications and approvals must be completed, and qualified contractors must be procured before mobilization. All of these steps can require substantial time and money before field mobilization.
Once rigged up, the well should ideally be cleaned out to its original total depth. This may require removing old rods, tubing, casing, or other debris that has been placed down the well. A thorough cleanout provides the best opportunity to understand the wellbore and properly execute the plugging program. Only after the well has been adequately cleaned out can the cementing process proceed toward surface.
In summary, proper well plugging requires significant planning, permitting, access, construction, and preparation before plugging even begins—and both the pre-work and downhole work can be costly.
Due Diligence
Potential buyers of property in Pennsylvania and New York can add a few steps to their due diligence process to check for the presence of abandoned/orphaned gas or oil wells.
- Search the state oil and gas well databases but be aware that there could be thousands of wells not listed in the databases.
- Review historical environmental database records for oil or gas production equipment that may have been observed or recorded.
- Look for field evidence including odors, 4-gas meter detections, distressed or dead vegetation, hissing sounds emanating from the ground, areas cleared of old growth, hunting cabins with heaters but no signs of a wood stove or fuel tank, dead zones in creeks/ponds with orange staining, 1- to 3-inch metal and/or plastic piping on the ground (noting that sizes can vary), and aboveground storage tanks in uninhabited areas.
- Perform a ground-penetrating radar scan of areas suspected of historical oil or gas production.
Funding Sources for Well Plugging
For properties with abandoned wells requiring proper plugging, funds are available to help with the cost. Act 13 of the Pennsylvania Oil and Gas Act of 2012 established the Marcellus Legacy Fund7, allocating funds to the Orphan or Abandoned Well Plugging Program (OAWP). The Commonwealth Financing Authority of Pennsylvania, which has more than 27,000 identified orphaned wells awaiting plug and abandonment8 and more than 6,000 of which are currently eligible for funding9, operates this state level incentive program, offering $40,000 (≤3,000 feet below ground surface, or bgs) to up to $70,000 (>3,000 feet bgs) per well or the cost of plugging the well, whichever is less10. The New York State Department of Environmental Conservation maintains the state’s orphan well inventory and oversees plugging operations. While only a small number of high priority New York wells using IIJA funding have been addressed, the selected wells mitigated environmental risk, preserved water resources, and provided redevelopment potential. A maximum of $1,000,000 for any IIJA OAWP project is available. However, as of fall 2025, less than half of the approximately $4.7B initial investment in IIJA OAWP has been distributed.
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[1] https://oklahoma.gov/content/dam/ok/en/iogcc/documents/publications/iogcc_idle_and_orphan_wells_2021_final_web.pdf
[2] https://www.pa.gov/agencies/dep/programs-and-services/oil-and-gas/legacy-wells
[3] https://dec.ny.gov/environmental-protection/oil-gas/high-volume-hydraulic-fracturing
[4] Boutot, J., A.S. Peltz, R. McVay, and M. Kang. 2022. Documented orphaned oil and gas wells across the United States. Environ. Sci. Technol. 56(20:14228 14236. https://pubs.acs.org/esthag/article/56/20/14228/871527/Documented-Orphaned-Oil-and-Gas-Wells-Across-the
[5] Kang, M., J. Boutot, R.C. McVay, K.A. Roberts, S. Jasechko, D. Perrone, T. Wen, G. Lackey, D. Raimi, and D.C. Digiulio. 2023. Environ. Res. Lett. 18:074012. doi: 10.1088/1748-9326/acdae7
[6] https://www.nationalacademies.org/read/29343
[7] https://dced.pa.gov/programs/orphan-abandoned-well-plugging-program-oawp/
[8] https://www.pa.gov/agencies/dep/programs-and-services/oil-and-gas/legacy-wells/infrastructure-investment-and-jobs-act-iija
[9] http://cedatareporting.pa.gov/Reportserver/Pages/ReportViewer.aspx?/Public/DEP/OG/SSRS/Abandoned_Orphan_Web
[10] https://www.pa.gov/agencies/dep/programs-and-services/oil-and-gas/legacy-wells
The Authors:
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Dan Peacock has more than 15 years of experience managing environmental, construction, and oil and gas projects, specializing in site investigations, remediation programs, and field operations. His expertise includes implementing environmental sampling and compliance programs in complex environments with significant regulatory and community engagement requirements. He has extensive experience coordinating multidisciplinary teams, managing subcontractors and stakeholders while working as Owner’s Representative for various sites, including oil and gas facilities and plug and abandonment sites.
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Josh Sandberg is COO of the Well Done Foundation and brings more than 20 years of experience supporting environmental, oil and gas, and geologic projects throughout Pennsylvania and New York States. Leveraging extensive expertise in orphan well identification, inventory development, field support, plug and abandonment, and project management, his firm helps clients successfully navigate the technical and logistical challenges associated with well locating and plugging programs.
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