Pa. reaches settlement on abandoned wells

The Pennsylvania Department of Environmental Protection (DEP) has announced a settlement with Diversified Gas & Oil Corp. and Diversified Oil & Gas, (collectively referred to as Diversified) and Alliance Petroleum Co LLC (Alliance) over well-plugging violations in 23 Pennsylvania counties. “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,” said DEP Secretary Patrick McDonnell.Diversified and Alliance have agreed to a $7 million surety bond for the wells covered by this settlement, plus an additional $20,000 to $30,000 bond for each abandoned or non-producing oil and gas well acquired in the future.