Orphan or Abandoned Well Plugging Program (OAWP)

The Orphan or Abandoned Well Plugging Program (OAWP), administered by the Pennsylvania Department of Community & Economic Development (DCED) through the Commonwealth Financing Authority (CFA), is a targeted state initiative created under Act 13 of 2012. This act established the Marcellus Legacy Fund to address the environmental, health, and safety concerns associated with Pennsylvania's legacy of oil and gas development. Since 1859, the state has hosted hundreds of thousands of oil and gas wells, many of which are now orphaned or abandoned. Left untreated, these wells pose significant risks, including methane emissions, groundwater contamination, and other hazardous environmental impacts. The OAWP provides funding to municipalities, nonprofit organizations, higher education institutions, and other eligible entities to clean out and properly plug these wells, mitigating potential dangers and supporting broader environmental conservation goals. The program’s core objective is to finance well plugging and associated site restoration activities. Eligible projects include plugging of orphan and abandoned wells, construction of stray gas mitigation systems, and well venting infrastructure. Funds can also be used for site preparation and restoration, engineering and inspection costs, permit fees, and administrative expenses related to project delivery. However, certain costs, such as those associated with public relations, litigation, or application preparation, are explicitly ineligible. Grant funding is limited to a maximum of $1,000,000 per project, and applicants are required to provide evidence of landowner cooperation in the form of easements and rights-of-way as a substitute for cost sharing. The application process for OAWP is facilitated through Pennsylvania’s online Single Application for Assistance portal at grants.pa.gov. Applications are accepted annually between February 1 and May 31. A $100 non-refundable application fee is required and must be paid electronically prior to final submission. Applications must include supplemental documentation, such as a project narrative with maps and impact assessments, a detailed construction cost estimate, engineering drawings, permit lists, and proof of right-of-way agreements. Public-sector applicants must also submit a formal resolution from their governing body authorizing the application. Project proposals are reviewed by the CFA based on their cost efficiency, strategic importance, and projected environmental and public health impacts. The grant agreement is issued upon approval, with funds released in installments at minimum 30-day intervals. A licensed professional engineer or geologist must certify expenses against approved plans. Invoices, daily activity logs, and canceled checks or equivalent payment records are required to validate expenditures. Recipients must also comply with prevailing wage regulations, maintain thorough documentation, and uphold the state’s nondiscrimination clauses in all grant-funded activities. This program is recurring on an annual basis, with the current application window open from February 1, 2026, through May 31, 2026. The next cycle is expected to open in February 2027. For technical assistance or additional program guidance, applicants can contact the Office of Business Finance and Workforce Development – CFA Programs Division at (717) 787-6245 or email [email protected]. The program guidelines and additional resources can be accessed via the DCED website at dced.pa.gov. Through continued support of responsible well plugging and site restoration, the OAWP helps reduce environmental hazards while contributing to Pennsylvania’s long-term ecological resilience.

Ensure project scope is clearly defined and supported by data; Provide complete engineering and permit documentation; Secure easement agreements prior to submission.