2021 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 permitees, 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 employs 190 professionals who are dedicated to operating a world class oil and gas regulatory program.  The office 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 largest volume of natural gas on record that has been produced in Pennsylvania in a single year. 
• Currently, Pennsylvania is the second largest producer of natural gas in the nation (Texas produces the most).

• This represents the largest volume of natural gas on record that has been produced in Pennsylvania in a single year.
• Currently, Pennsylvania is 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 the 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 2015 through 2021.  

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 2021 increased to about the same level as pre-COVID conditions.   

 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 have 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 2021, click here .
•  To view a summary of all well violations from 2021 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 648 oil and gas wells in Pennsylvania in 2021.  These wells included 467 unconventional gas wells drilled into the Marcellus geologic formation, 44 unconventional natural gas wells drilled into the Utica and Point Pleasant geologic formations, 7 unconventional wells were drilled in other formations, and 130 conventional oil wells were drilled.

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 2021, about 93 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 2021, about 7 percent of produced fluids were disposed in Class II UIC disposal wells.

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 of 2021, DEP located 12,313  orphan and abandoned wells  and is working diligently to identify the locations of the many remaining wells. Unfortunately, given its current resources, it will likely take DEP many years to locate and properly decommission all of Pennsylvania’s legacy wells.

• Unplugged orphan/abandoned wells = 8,870
• Plugged orphan/abandoned wells = 3,443

Data Source: eFACTS (1/2022) 

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.

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.  At current surcharge rates and per-well plugging costs, DEP will not have any material impact on reducing the number of unplugged orphan and abandoned wells in Pennsylvania for hundreds of years.

• 190 Employees

• 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: $8,574,883 (FY2020-21)
• Orphaned/Abandoned Permit Fees: $507,650 (FY2020-21)
• Penalties Deposited to Well Plugging Fund: $2,573,243 (FY2020-21)
• Impact Fees: $6 million annually 

• 7.6 trillion cubic feet

• 11,970

• 76.5 million cubic feet

• 34,558

• 729,827 Barrels

• 14,959

• Unconventional Drilling Permit: 770
• Conventional Drilling Permit: 227
• Authorizations: 611
• Stream Crossing & Encroachment (Individual Permits): 359*
• Stream Crossing & Encroachment (General Permits): 2,397*
• Erosion and Sediment Control General Permit (Expedited): 14*
• Erosion and Sediment Control General Permit (Standard): 263*

• Unconventional Inspections: 18,177
• Conventional Inspections: 11,743
• Well Site/Administrative Inspections : 4,225
• Total Inspections: 34,145

• Unconventional: 1,323
• Conventional: 4,514
• Well Site/Administrative: 2,826
• Total Violations: 8,663

• Unconventional: 518
• Conventional: 130
• Total Wells Drilled: 648
• Unconventional (total on record): 13,316
• Conventional (total on record): 201,411

• 14

• ~ 200,000

• 8,870

• 3,443

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