Pennsylvania WAS the guinea pig – in 1850. That’s when the oil and natural gas industry arrived in Pennsylvania. Since that time, more than 350,000 wells have been developed in the oil and natural gas producing regions of the commonwealth.
And while the underlying principle of exploration for and producing oil and natural gas is unchanged, the technology and science to harvest this resource has changed dramatically. To drill a Marcellus well today, you must comply with dozens upon dozens of regulations and receive all necessary permits before work can begin at any given location.
As for the portion of your question about an escrow account, a portion of the well permitting fee and a portion of the Marcellus Shale Impact fee is dedicated to the Pa. Department of Environmental Protection’s Abandoned and Orphan Well program. This is in addition to having a bond on each well.
