Marcellus Legacy Fund Provides $225,000 for Orphan and Abandoned Well Plugging

Press Release

Governor Tom Corbett announced today that the Commonwealth Financing Authority approved $225,000 in funding to support two orphaned and abandoned well plugging projects in the state.

The funds were a part of the $28.5 million made available over the past two years to fund six Marcellus Legacy Fund programs administered by the Commonwealth Financing Authority (CFA).

"We established the Act 13 Marcellus Legacy Fund to ensure a portion of the funds collected goes back to local communities to support environmental enhancement and conservation programs," Corbett said. "The first round of funding will provide $225,000 to plug orphaned and abandoned wells that have the potential to cause health, safety or environmental concerns."

The Orphan or Abandoned Well Plugging program funds projects, which involve the cleaning out and plugging of orphaned and abandoned oil and gas wells, stray gas mitigation systems and well venting projects. The two approved orphan and abandoned well plugging projects are located in Allegheny and Washington counties.

Allegheny County Airport Authority (ACAA), Allegheny County, will receive a $78,000 grant to plug an oil well located in Findlay Township. ACAA plans on developing the site to include a total of 400,000-square-feet of office and warehouse buildings.

Charleroi Borough, Washington County, will receive a $147,000 grant to plug a gas well located in the borough. The plugging of the gas well will alleviate health and safety hazards.

In addition to the Orphan or Abandoned Well Plugging program, the CFA also approved five additional programs under the Marcellus Legacy Fund, which include Watershed Restoration and Protection, Baseline Water Quality Data, Greenways, Trails and Recreation, Flood Mitigation and Abandoned Mine Drainage Abatement and Treatment programs.

Act 13, which Corbett signed into law in 2012, authorized counties to impose an impact fee on unconventional natural gas wells.

To date, the fee has generated more than $400 million that is benefiting every Pennsylvanian. The majority of the revenues are distributed to local governments where drilling is taking place, with the remainder of the money used for statewide initiatives.

The programs are administered jointly by the Department of Community and Economic Development, the Department of Conservation and Natural Resources, and the Department of Environmental Protection, under the direction of the CFA.

For more information about the Act 13 Programs, the CFA or a complete list of approved projects, visit www.newPA.com or call 1-866-466-3972.

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