Orphan or Abandoned Well Plugging Grant Program

The Orphan or Abandoned Well Plugging Program (OAWPP) is administered by the Commonwealth Financing Authority (CFA) of Pennsylvania through the Department of Community and Economic Development (DCED). It is established under Act 13 of 2012, which created the Marcellus Legacy Fund to address the environmental and safety risks associated with orphaned or abandoned oil and gas wells throughout the state. Pennsylvania is home to hundreds of thousands of wells drilled since 1859, many of which have been left unsealed and pose significant threats to public health, safety, and the environment. The program offers financial support to qualified applicants for projects that involve the cleaning, replugging, and proper sealing of these wells. Eligible activities include construction of stray gas mitigation systems, replugging pre-Act improperly sealed wells, cleaning and plugging operations, rig mobilization and demobilization, site preparation and restoration, engineering and inspection services, installation of security measures, and payment of permit fees. Administrative costs directly related to managing the grant are also allowed, with a cap at 2% of the total award. Construction contingencies are capped at 5%, and engineering costs are limited to 10% of the grant amount. The maximum award for a single project is $1,000,000. Eligible applicants include municipalities (e.g., counties, cities, boroughs, townships), councils of governments, authorized organizations such as 501(c)(3) nonprofits, institutions of higher education, watershed organizations, and for-profit businesses (excluding natural gas producers). These entities must demonstrate a compelling need, provide technical documentation, and ensure project feasibility and regulatory compliance. The required supplemental materials include a project description, site maps, historical context, well data sheets, cost estimates, construction drawings, lists of required permits, evidence of access and rights-of-way, and relevant organizational experience. Applications for funding are accepted annually between February 1 and May 31. Applicants must submit their materials electronically through the DCED’s Single Application for Assistance system. A $100 non-refundable application fee applies. Applications are evaluated by the CFA based on factors such as strategic importance, cost-effectiveness, and overall impact. Selected applicants will receive a grant agreement and commitment letter, which must be signed and returned within 45 days to finalize the award. The program emphasizes compliance with applicable federal and state laws, including the Pennsylvania Prevailing Wage Act, nondiscrimination laws, and transparency in financial reporting. Grantees are required to maintain daily activity logs, make documentation available for audit, and submit verification of expenditures. Projects must not begin prior to receiving approval or the grant will be deemed ineligible. Once underway, disbursements are made on at least a 30-day cycle, and a licensed Pennsylvania engineer or geologist must certify costs incurred. This is a recurring program with an annual cycle, designed to provide sustained support to tackle Pennsylvania’s legacy of unsealed wells. The initiative also opens the possibility for liability relief under the Good Samaritan Act, allowing more actors to engage in environmental restoration without fear of legal repercussions.

Do not begin work prior to grant approval. Ensure easement documentation is complete and submitted with application.