2022 Oil and Gas Annual Report

The mission of the Pennsylvania Department of Environmental Protection (DEP) is to protect Pennsylvania’s air, land and water from pollution and provide for the health and safety of its citizens through a cleaner environment. We work as partners with individuals, organizations, governments and businesses to prevent pollution and restore our natural resources. This report highlights permitting, inspection and compliance efforts as well as presents trends in Pennsylvania's oil and gas industry. For more detailed information, visit the  DEP Oil and Gas Program website .

Disclaimer: If problems are encountered while viewing content, please try opening the report using another web browser. The information contained in this report is based on the data contained in DEP information systems at the time of preparation of this report, including, but not limited to, DEP's enterprise-wide permitting and compliance database called eFACTS (Environment Facility Application Compliance Tracking System). As some data contained in these systems are self-reported by operators and other permittees, data in this report reflects the information and data as reported to DEP. The eFACTS permitting and compliance database is a dynamic database that is regularly and continuously updated by DEP.

The DEP Office of Oil and Gas Management has recently maintained a staff of 190 professionals who are dedicated to operating a world class oil and gas regulatory program.  As a result of the passage of the federal Infrastructure Investment and Jobs Act, federal monies were made available to pay for staff that administer this program. A variety of staff are required to implement this new program including, oil and gas inspectors, water quality inspectors, geologists, compliance specialists, administrative staff and managers.  In total, the Department is authorized to add up to 41 positions to its complement to effectively administer and implement this new program. The Office of Oil and Gas Management began to hire additional staff in 2022, but it is phasing in additional staff as workload increases and the federal funding is received to support these new positions.

The Office of Oil and Gas Management includes the Bureau of District Oil and Gas Operations that is comprised of three district offices and two permitting divisions.  The Bureau of Oil and Gas Planning and Program Management is located in DEP’s central office and is responsible for administrative, policy and regulatory development functions. 

 A map of the various DEP oil and gas offices and contact information is available on the DEP website .

To report any cases of suspected water contamination that may be associated with the development of oil and gas resources or any other environmental complaint, call the DEP’s statewide environmental hotline at: 1-866-255-5158.

To report an environmental emergency to DEP, click on the button below, and call the appropriate regional emergency contact number.  

• This represents the first decrease in year-over-year natural gas production volumes since unconventional operations commenced in Pennsylvania.
• Pennsylvania remains the second largest producer of natural gas in the nation (Texas produces the most).

• The 2012 Oil and Gas Act requires conventional and unconventional operators to report production of oil, natural gas and wastes.
• The Unconventional Well Report Act of October 2014 amended the 2012 Oil and Gas Act to require operators of unconventional wells to submit to DEP natural gas production reports on a monthly basis.  Prior to this, operators of unconventional wells were only required to submit a report on resource production to DEP semi-annually. Unconventional operators must report their production 45 days after the end of the month of production. 
• The Unconventional Well Report Act did not affect the frequency of production reporting for operators of conventional wells.  Conventional well operators continue to report production data to DEP on an annual basis. DEP accepts production data from conventional operators for the prior calendar year starting January 1, but not later than February 15 of the following calendar year.
•  Interactive Production Report: Query production information related to natural gas, condensate, oil and waste for each permitted well .

Prior to drilling a well, an operator must first submit the proper permit applications to DEP for review and approval.

Different types of permits and authorizations are related to oil and gas activities including, but not limited to:

•  Erosion and Sedimentation Permit & Erosion and Sedimentation Control General Permit  – To construct a well site.
•  Well Drilling Permit  – To drill and operate a well.
•  Water Obstruction and Encroachment Permit  – To build bridges, roads and pipelines that cross or encroach on waterways.

The tables below reflect the average number of calendar days to issue oil and gas drilling permits and erosion and sediment control general permits from calendar year 2016 through 2022.

DEP inspects oil and gas well sites to ensure they are constructed and operated in accordance with approved permits. DEP’s goal is to inspect new wells at the beginning, middle, and end of construction and development.

In response to the actions taken by the Department of Environmental Protection and all state agencies under the Governor’s jurisdiction to reduce the spread of the novel coronavirus during 2020, adjustments were made to inspection protocols and the frequency of inspections at oil and gas sites. In order to protect the health and safety of DEP inspection personnel and the regulated community, DEP focused its inspection priorities on emergency response situations and responses to public complaints in early 2020. DEP inspectors also focused on administrative-related inspections during 2020 that could be conducted with reduced health and safety risks to its inspectors as a result of COVID. Over the course of 2020, as DEP inspectors became more proficient in conducting inspections under the revised COVID inspection protocols, the inspection efficiency improved and the number of inspections conducted in each quarter of 2020 increased.  The total number of compliance inspections conducted in 2022 are the highest number compliance inspection at oil and gas sites conducted by DEP in a single year since 2008.   

 View the Compliance Report 

DEP is committed to working with oil and gas operators to ensure well sites operate in compliance with all applicable laws and regulations. DEP routinely provides compliance assistance through outreach and training opportunities. This graph depicts violations at conventional and unconventional wells sites and linear project sites such as pipelines. The graph also includes violations that are related to well site and administrative issues such as failure to meet reporting requirements.

The large number of well site and administrative violations that appear in the graph below for calendar year 2015 are a result of a compliance initiative conducted by DEP.  In the fall of 2015, the Office of Oil and Gas Management conducted an enhanced inspection and enforcement initiative that focused on administrative violations related to the failure of operators to submit annual production data and well integrity reports.

DEP’s compliance and enforcement tracking database (eFACTS) was updated in 2017 to record an ongoing violation that is not otherwise corrected prior to a subsequent inspection as a separate violation. Therefore, DEP now has the ability to record multiple violations for the same incident if it is not corrected in a timely manner.

Beginning in March 2018, DEP sent NOVs to operators who failed to review and certify their Emergency Response Plans (ERPs). Compliance rates for the annual review of the ERPs increased from 80 percent to a compliance rate of over 95 percent. Also, in 2018, Administrative and Well Site violations increased due to more frequent inspections at linear project sites such as pipeline development projects. The number of violations cited at linear project sites continued to increase through 2019 and 2020.

As a result of COVID during 2020, DEP inspectors were unable to conduct as many field inspections at active well sites; therefore, it focused on inspections at well sites such as pipelines and completed well sites where human interaction was minimized and administrative inspections.  This resulted in a significant increase in the number of observed erosion and sedimentation violations and well-plugging related violations than in prior years.  DEP inspectors observed a higher number of administrative violations such as the failure of operators to submit annual production and well integrity reports.

•  To view all well violations from 2022, click here .
•  To view a summary of all well violations from 2022 click here .

The following table lists total fines and penalties collected over the past five fiscal years:

Note: On January 3, 2020, DEP announced that it issued a $30.6 million civil penalty to ETC Northeast Pipeline for violations related to the 2018 Revolution Pipeline explosion and fire.  This penalty is one of the largest civil penalties collected in a single settlement.  $25.6 million was deposited into the Oil and Gas Well Plugging Fund, $3 million was deposited into the Clean Water Fund and $2 million was allocated for a DEP-approved community environmental project (CEP) that benefits Pennsylvania’s environment and the Waters of the Commonwealth. Specifically, this CEP removes a high-hazard dam and stabilizes and restores a section of the Traverse Creek in Raccoon Creek State Park.

Oil and gas operators drilled a total of 790 oil and gas wells in Pennsylvania in 2022. These wells included 574 unconventional gas wells and 216 conventional wells.

DEP developed an  interactive GIS mapping tool  that can be used to identify oil and gas wells that are located in Pennsylvania. In addition to specific well locations, this tool provides other information including production data, inspection results and compliance actions taken by DEP, and more. To learn about this tool, check out the  video tutorial  and begin using this  interactive map  today.

A typical conventional oil and gas well uses about 20,000 – 50,000 gallons of hydraulic fracturing fluid to produce oil and gas. A typical unconventional gas well uses about 15-20 million gallons of hydraulic fracturing fluid to produce natural gas. Hydraulic fracturing fluid is comprised mostly of water with a small amount of chemicals to help lubricate and to prevent mold and scale from building up in the well bore. Fluids that return to the surface after the hydraulic fracturing process are generally called produced fluids.

In 2022, about 88 percent of all produced fluids was recycled and/or reused in the production/hydraulic fracturing of other natural gas wells.

If produced fluids are unable to be reused to hydraulically fracture other wells, they are typically disposed in Class II Underground Injection Control disposal wells. In 2022, about 9 percent of produced fluids were disposed in Class II UIC disposal wells.

The remaining 3 percent of produced fluids was stored for ultimate reuse or disposal.

A Class II Underground Injection Control disposal well is used to dispose of produced fluids.  Currently, there are 14 active permitted Class II Underground Injection Control disposal wells in Pennsylvania.  The U.S. Environmental Protection Agency is responsible for reviewing and approving Class II Underground Injection Control disposal well permit applications in Pennsylvania; however, DEP also conducts a review of these permit applications to ensure state regulatory requirements are met prior to issuing a permit for well usage.

Most produced fluids that are not reused in Pennsylvania are transported to neighboring states, such as Ohio and/or West Virginia, where they are disposed of in Class II Underground Injection Control disposal wells.

As a precautionary measure, DEP has determined that its technical permit review will consider developing permit conditions to address the mechanical integrity of the injection well and the potential for seismic events that could occur as a result of the disposal of produced fluids in Class II UIC disposal wells.  Permit conditions to address the need for seismic monitoring are developed on a case-by-case basis depending on the nature of the proposed site. The current statewide seismic monitoring network in Pennsylvania consists of 42 permanent seismic monitors (plus 7 portable seismic stations located at two UIC well sites).  An additional 32 permanent seismic stations are located in adjacent states in close proximity to Pennsylvania’s border.

 To view additional details about the 14 Class II Underground Injection Control disposal wells in DEP’s interactive Oil and Gas Mapping Tool, click here . Then click on “Conventional Wells,” “Waste Disposal” and “Active” in the three Oil and Gas Well Layers on the left side of the screen. To view the attributes of each well, click the “Identify” tool (symbolized by the "i" in the black circle). Then click on desired well.

• The following Class II disposal UIC well in Pennsylvania is in regulatory inactive status.

Most natural gas is consumed as a fuel source to heat homes and businesses; therefore, the highest demand for natural gas peaks during the winter months. To meet this demand, natural gas that is produced during the summer months must be stored in underground storage fields for withdrawal and use during the winter heating season.   Underground storage fields  are depleted natural geologic formations that once contained oil, natural gas or other hydrocarbons; and are usually located 2,000 to 8,000 feet below the ground surface. There are currently 48 active underground gas storage fields in Pennsylvania.  There are five additional underground gas storage fields that are not actively being used to store natural gas. Underground storage fields have been regulated in Pennsylvania since 1955 and the laws governing this practice were amended by the 1984 Oil and Gas Act; and again, by the 2012 Oil and Gas Act.

As a result of the oil and gas drilling booms during the mid-nineteenth and early twentieth centuries, thousands of oil and gas wells were drilled in Pennsylvania. Since the first oil well was drilled in Pennsylvania more than 160 years ago, many wells have been abandoned by their owners without notifying DEP or other state agencies. DEP estimates there are about 200,000 abandoned oil and gas wells in Pennsylvania that remain unaccounted for. These legacy orphan and abandoned wells can lead to pollution and/or pose public safety risks if not properly plugged.

To date, the Department has documented approximately 27,000  orphan and abandoned wells  located on state or private land.  The estimated cost to plug these wells is about $1.8 billion. Before 2022, there has been limited state funding to plug and remediate orphan and abandoned oil and gas wells in Pennsylvania. The Pennsylvania Oil and Gas Act created two special funds called the Abandoned Well Plugging Fund and the Orphan Well Plugging Fund. The Orphan and Abandoned Well Plugging Funds receive revenue from a nominal permit surcharge authorized by the 2012 Oil and Gas Act ($150 per oil well permit and $250 per gas well permit). 58 Pa.C.S. § 3271. These permit surcharges are grossly insufficient to cover the cost of properly plugging all orphan and abandoned wells that currently exist in Pennsylvania and they have been used primarily to pay for plugging orphan and abandoned wells in emergency situations where potential human health or environmental contamination is of concern. 

A watershed event occurred in late 2021 when President Biden signed the Bipartisan Infrastructure Law, also known as the Infrastructure Investment and Jobs Act (IIJA), on November 15, 2021.  The Act makes $4.7 billion available over the next decade for plugging orphaned oil and gas wells and remediating and restoring well sites on federal lands, tribal lands, state-owned lands, and privately owned lands. The U.S. Department of the Interior (DOI) is the lead federal implementing agency and the Interstate Oil and Gas Compact Commission (of which PA DEP is a member) represents and advocates for member states as this new program is being implemented and rolled out. 

Specifically, the entire $4.7 billion is allocated as follows:

• $4.275 billion for grants to states:
  • $775 million for Initial Grants
  • $2 billion for Formula Grants
  • $1.5 billion for Performance Grants
• $250 million for activities on federal lands.
• $150 million for Tribal grants.
• $30 million to the Secretary of Energy to conduct research and development activities related to undocumented orphaned wells and for mitigating the environmental risks of undocumented orphaned wells.
• $2 million to the Interstate Oil and Gas Compact Commission (IOGCC) to help carry out activities in the Act.

On May 12, 2022, DEP submitted a grant application package to DOI to receive $25 million dollars via the Initial Grant portion of this funding. The $25 million threshold represents the maximum dollar amount that a state can apply for. On October 1, 2022, the Department was awarded the full $25 million to address the plugging of about 227 orphan and abandoned wells across Pennsylvania. The federal grant agreement allows DEP to use ten percent of this funding (i.e., $2.5 million) to reimburse the Department for administrative costs associated with implementing this new program. 

DEP published 13 separate Invitations to Bid in the commonwealth’s electronic bid solicitation tool called “Bid Express” ( www.bidexpress.com ) and has awarded and obligated the full Initial Grant funding. This approach allowed many small businesses across Pennsylvania to bid on these projects.

On December 23, 2021, the Department submitted a Notice of Intent (NOI) to the DOI to apply for a Formula Grant. On January 31, 2022, the Department of Interior announced the amount of funding that states are eligible to apply for in Phase One, which includes the $25 million in Initial Grant funding and a quarter of the total Formula Grant money. These allocations were determined using the data provided by states as reflected in the NOIs and equally considers the following criteria: 1. job losses in each state from March 2020 through November 2021; 2. the number of documented orphaned oil and gas wells in each state; and 3. the estimated cost of cleaning up orphaned wells in each state.  

The DOI announced that Pennsylvania is eligible to receive $76,406,474 in the first phase of the Formula Grant.  When adding the amount of Formula Grant funding to the Initial Grant dollars, this results in a total of $330,625,896 that Pennsylvania is currently projected to receive.  Pennsylvania will receive the second largest amount of Initial Grant and Formula Grant funding in the nation. The DOI will begin accepting Formula Grant applications in 2023.

The final category of IIJA Funding is the Performance Grants and it is divided into two types of grants. First, is the Regulatory Improvement Grant that is comprised of two $20 million allocations for a total of $40 million. The Regulatory Improvement Grant will be awarded based on a state’s ability to demonstrate improvements in well plugging and financial assurance regulations over the past 10 years. The second Performance Grant is a Matching Grant of up to $30 million over a maximum of 10 years matching every dollar Pennsylvania spends annually in excess of average annual plugging expenditures from 2010-2019. The DOI has not yet developed draft guidance related to the Performance Grants.

Given the history of limited funding that has been available to the Department to address orphan and abandoned wells in Pennsylvania, this federal program represents a rare opportunity for the infusion of federal dollars to help Pennsylvania plug a historic number of documented orphan and abandoned wells. 

• 190 Employees (Note: DEP was authorized to add up to 41 new positions to implement the Infrastructure Investment and Jobs Act)

• Central Office – Bureau of O&G Planning and Program Mgmt. - Harrisburg
• Eastern District Oil and Gas Office – Williamsport
• Northwest District Oil and Gas Office – Meadville
• Southwest District Oil and Gas Office – Pittsburgh

Fees, Fines/Penalties and Impact Fee Revenue

• Well Drilling Permit Fees: $10,056,694 (FY2021-22)
• Orphaned/Abandoned Permit Fees: $240,361 (FY2021-22)
• Penalties Deposited to Well Plugging Fund:   $1,769,498 (FY2020-21)
• Impact Fees: $6 million annually 

• 7.5 trillion cubic feet

• 11,516

• 75.7 billion cubic feet

• 65,598

•  986,089 Barrels

• 21,348

• Unconventional Drilling Permit: 748
• Conventional Drilling Permit: 296
• Authorizations: 835
• Stream Crossing & Encroachment (Individual Permits): 407*
• Stream Crossing & Encroachment (General Permits): 2,625*
• Erosion and Sediment Control General Permit (Expedited): 19*
• Erosion and Sediment Control General Permit (Standard): 203*

• Unconventional Inspections: 21,895
• Conventional Inspections: 13,029
• Well Site/Administrative Inspections : 4,724
• Total Inspections: 39,648

• Unconventional: 1,360
• Conventional: 5,416
• Well Site/Administrative: 1,234
• Total Violations: 8,010

• Unconventional: 574
• Conventional: 216
• Total Wells Drilled: 790
• Unconventional (total on record): 13,894
• Conventional (total on record): 216,081

• 14

• ~ 200,000

• 26,908

• 3,443

Unless otherwise specified, all information is reported for calendar year 2022. 

*This includes “new” permits only. Does not include permit renewals, amendments, transfers, etc.