Plugging and abandonment (P&A) projects are critical for environmental protection, regulatory compliance, and safeguarding the property value of oil and gas wells. Yet, the costs associated with these projects can be substantial, often leaving landowners and operators wondering how to move forward.
That's where state and federal funding programs come in, making it easier and more affordable to tackle these essential projects.
Understanding P&A Projects
A P&A project involves safely sealing oil and gas wells that are no longer productive or economically viable. This process includes filling the wellbore with cement, cutting the casing below ground, and restoring the site to its original condition.
This procedure is critical because it guarantees:
- Environmental protection: Prevents leaks of methane and contaminants into soil or groundwater.
- Regulatory compliance: Helps avoid fines or legal issues with state and federal agencies.
- Land value: Restores usability and market value to affected land.
However, all this comes at a cost that well owners or landowners have traditionally borne. Today, state and federal programs are stepping in to help cover these costs, especially in regions with a legacy of oil and gas development.
Funding Options by State
Fortunately, several well-designed funding programs are available for landowners and well operators across the Appalachian Basin:
Ohio's Landowner Pass-Through Program (LOPTP)
Ohio’s LOPTP offers a direct path for landowners to have their wells on their property plugged without incurring out-of-pocket expenses.
- Who’s eligible? Landowners with a qualifying orphan well on their property.
- How it works: Landowners apply through the Ohio Department of Natural Resources (ODNR), select a certified contractor (like Plants & Goodwin), and the ODNR reimburses the contractor upon project completion.
- Why it matters: This program enables landowners to take the lead while avoiding financial burden. If approved, the ODNR covers all eligible costs.
Pennsylvania's Methane Emissions Reduction Program (MERP)
The federal Inflation Reduction Act funds Pennsylvania’s MERP, targeting the reduction of emissions by plugging marginal wells:
- Who’s eligible? Operators and landowners of marginal conventional wells (those producing fewer than 15 barrels of oil equivalent per day).
- Funding: Up to $20,000 per well, with a maximum of $420,000 per applicant per round.
- Status: Applications are currently closed, but the next opening will be in the Fall of 2025. You can find information on the following rounds on the program's website.
West Virginia's Methane Emissions Reduction Program (MERP)
West Virginia is currently rolling out its version of MERP, also supported by federal funds:
- Who’s eligible? Landowners and operators of marginal conventional wells.
- How it works: The final application process is still under development, but public meetings and feedback sessions are ongoing.
- Funding priorities: Wells with high methane emissions or located near disadvantaged communities.
How to Secure Funding for Your P&A Project
If you have a well to plug, here’s how to get started in a funding program:
- Identify Your Well’s Status: Determine if your well qualifies as orphaned or marginal. This will dictate which programs you’re eligible for.
- Research Available Programs: Review the requirements for funding options in your state to determine which programs are eligible for your needs. Some programs are exclusive to landowners, while others are also open to operators.
- Gather Documentation: Collect well records, proof of ownership, and any required environmental or production data as needed.
- Submit Your Application: Complete and submit your application through the appropriate state agency. For Ohio, landowners apply directly; in Pennsylvania and West Virginia, operators may coordinate with state officials.
- Select a Qualified Contractor: Choose an experienced plugging contractor, such as Plants & Goodwin, to ensure compliance and maximize your funding benefits.
- Complete the Project: Once approved, work with your contractor to safely and efficiently plug your well, ensuring compliance with all relevant regulatory and environmental standards.
Why Work with a Professional Plugging Contractor?
Thanks to new funding programs in Ohio, Pennsylvania, and West Virginia, landowners and operators now have more options than ever to fund their P&A. However, state agencies are selective about who performs well plugging work, and for good reason. Poorly done jobs can cause more harm than good. That’s where experience matters.
Plants & Goodwin has been a trusted name in plugging and abandonment for more than 50 years. With a focus on regulatory compliance, environmental responsibility, and project efficiency, we've helped landowners, operators, and state agencies manage P&A projects across the Appalachian Basin.
Contact us today for expert guidance on securing funding and managing your P&A project from start to finish. Our team is here to help you restore your land, protect your community, and navigate the funding landscape with confidence.