More than 350,000 oil and gas wells have been drilled in Pennsylvania since the first commercial oil well was developed in 1859 by Colonel Drake in Titusville. Oil and gas exploration is regulated under the state's oil and gas laws (Oil and Gas Act, Coal and Gas Resource Coordination Act, and Oil and Gas Conservation Law), and the environmental protection laws that include the Clean Streams Law, the Dam Safety and Encroachments Act, the Solid Waste Management Act, and the Water Resources Planning Act.

Well Drilling Activities

DEP's Bureau of Oil and Gas Management regulates the safe exploration, development, and recovery of Marcellus Shale natural gas reservoirs in a manner that will protect the commonwealth's natural resources and the environment.

To drill a new Marcellus Shale natural gas well in Pennsylvania, the operator must obtain a well permit from the Department of Environmental Protection and post a bond. The bond is a financial incentive to ensure that the operator will adequately perform the drilling operations, address any water supply problems the drilling activity may cause, reclaim the well site, and properly plug the well upon abandonment. The bond amount for a single well is $2,500; a blanket bond to cover any number of wells is $25,000.

In the Marcellus Shale natural gas well permit application, the applicant must show the location of the well, proximity to coal seams, and distances from surface waters and water supplies. Technical staff in DEP's regional offices review the permit application to determine whether the proposed well would cause environmental impacts, conflict with coal mine operations, or exceed well spacing requirements. Operators must submit reports on well completion, waste management, annual production and well plugging.

Pennsylvania law requires drillers to case and cement Marcellus Shale natural gas wells through all fresh water aquifers before drilling through deeper zones known to contain oil or gas. This casing and cement protects groundwater from the fluids and natural gas that will be contained inside the well, and keeps water from the surface and other geologic strata from mixing with and contaminating groundwater.

Disruption of water quality or flow in water wells from drilling activities is often rare and generally. However, if problems persist, state law requires drilling operators to replace or restore water supplies affected by drilling. If you are not satisfied with the drilling company's response, a complaint can be filed with the nearest DEP regional office. DEP will investigate complaints within 10 days and issue orders as necessary to replace or restore the water supply.

Well operators are required to report production from Marcellus Shale gas wells annually and state agencies must keep this information confidential for a period of five years, except for enforcement proceedings, as provided in The Oil and Gas Act.

Once a well is no longer producing, the operator must plug the well and restore the site within nine months of plugging the well.

Many landowners and municipalities are interested in receiving notice of well permit applications. DEP has a no-cost subscription service called ENotice that notifies land owners and municipalities with an email when a well permit application is received. This system enables land owners and municipalities to receive notice of a permit application at the same time that DEP receives the application. ENotice can be accessed through DEP's website: www.depweb.state.pa.us.

Earth Disturbance Activities

Marcellus Shale natural gas well construction involves extensive earth disturbance including roads, drilling pads and pipelines that can speed erosion. Drilling pads may range in size from three to four acres for the deeper Marcellus Shale natural gas wells, a larger portion of disturbed earth than more conventional shallow natural gas well pads.

Various regulations, implemented through DEP and the Pennsylvania County Conservation Districts, are in place to protect surface water and groundwater from erosion and sedimentation due to earth disturbances.

Erosion and sediment control plan requirements under state law apply to any earth disturbance activities, including Marcellus Shale natural gas drilling (Pa Code Chapter 102). Erosion and sediment plans require gas companies to use preventative measures (referred to as Best Management Practices or BMPs) to restore the site and vegetation within nine months of well completion by planting grass, trees or crop plots.

For all Marcellus Shale natural gas drilling, the operator must use the proper BMPs to control erosion, sedimentation, and stormwater, and develop an erosion and sediment control plan. The BMPs must minimize point source discharges to surface waters, preserve the integrity of stream channels, and protect the quality of the receiving waterway.

For Marcellus Shale natural gas drilling activities that disturb more than five acres at one time, a notice of intent for authorization for the erosion and sediment control general permit must be completed. The notice of intent and the erosion and sediment control plan must be submitted to DEP or an authorized county conservation district for review and approval.

Water Use and Waste Water Disposal Activities

Large volumes of water are required to complete a Marcellus Shale natural gas well, and large volumes of waste water are generated as part of the drilling process. This wastewater is considered industrial wastewater and is a residual waste in the commonwealth. DEP, in cooperation with the Susquehanna and Delaware River basin commissions, has created additional permit guidelines for drilling in the Marcellus Shale formation to create consistent rules for water withdrawal, usage, treatment and disposal in all areas of the state, and to ensure that the water quality and uses of waters of the commonwealth are not threatened by drilling operations.

As part of the permit application process, drilling companies must identify where they plan to obtain and store the water used in their drilling operations. When applying for a permit, drillers must specify the sources and location of fresh water and the anticipated impacts of water withdrawals on water resources, and obtain approval from the appropriate river basin commission. Pits or impoundments with an embankment used to temporarily store water for drilling activities must meet DEP standards for construction and may also require a DEP dam permit.

Drilling companies must also identify where the produced wastewater will be stored, treated and disposed. Pits or impoundments with an embankment for temporarily storing drilling wastes must meet DEP standards for construction (e.g., synthetic liners) and may also require a DEP dam permit.

Waste water (fluids) must be reused and recycled, or collected and treated at an authorized waste water treatment facility. DEP approval is required before the receiving treatment facility can accept the wastewater for processing and/or disposal.