trending Market Intelligence /marketintelligence/en/news-insights/trending/3AZeV2kBdWTEOz7U_PHi6A2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Pa. agency orders Diversified units to plug abandoned wells, pay $7M surety bond

Essential Energy Insights - June 11, 2020

Webinar Replay

Deep Dive on Oil & Gas for Financial Institutions

Essential Energy Insights - May 28, 2020

Essential Energy Insights - May 14, 2020


Pa. agency orders Diversified units to plug abandoned wells, pay $7M surety bond

Diversified Gas & Oil PLC subsidiaries Diversified Gas & Oil Corp., Diversified Oil & Gas LLC and Alliance Petroleum Co. LLC reached a settlement with a Pennsylvania environmental regulator over oil and gas well plugging violations in 23 counties in the state.

The companies agreed with the Pennsylvania Department of Environmental Protection, or DEP, to plug or restore its nonproducing or abandoned wells in the counties within the next 15 years, according to a March 11 news release. The company has an option to restart production on the wells, as long as it maintains minimum production levels. The agreement may be extended for another five years, with additional bonding of $30,000 per well plugged during the extension.

"This agreement is a win for the commonwealth because it ensures that over 1,400 oil and gas wells are properly maintained or plugged and that these operators, not Pennsylvania citizens, bear the full cost of operating or plugging them," DEP Secretary Patrick McDonnell said.

Diversified agreed to a $7 million surety bond to cover plugging costs if the companies fail to meet their obligations. They are also required to pay an additional $20,000 to $30,000 bond for every abandoned or producing well acquired in the future. Compared to blanket bonding of $25,000 required by law to cover all of a conventional oil and gas operator's wells, amounting to about $2 per well, the DEP's agreement better reflects actual plugging costs that start at around $20,000 per well.

In July 2018, the DEP also ordered Diversified unit Alliance Petroleum Corp., XTO Energy Inc. and CNX Gas Co. LLC to plug 1,058 abandoned oil and gas wells across the state to comply with the Pennsylvania Oil and Gas Act. Abandoned wells are defined as wells that have "not been used to produce, extract or inject any gas, petroleum or other liquid within the preceding 12 months."