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Orphan or Abandoned Well Plugging Program (OAWP)

Grants to Pennsylvania Organizations, Agencies, and
IHEs for Projects to Close Unused and Abandoned Wells

Agency Type:

State

Funding Source:

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Pennsylvania Department of Community and Economic Development (DCED)

Deadline Date:

07/31/20

Description:

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Grants to Pennsylvania organizations, government agencies, for-profits, and institutions of higher education for projects to close unused and abandoned oil and gas wells that may cause safety, health or environmental issues. Funding may be used for site preparation, construction, necessary safety measures, and other related costs.

Act 13 of 2012 establishes the Marcellus Legacy Fund and allocates funds to the Commonwealth Financing Authority for funding orphan or abandoned well plugging projects using the Orphan or Abandoned Well Plugging Program (OAWP). Pennsylvania has hundreds of thousands of oil and gas wells drilled since 1859. This program provides a mechanism to plug abandoned and orphaned wells that have the potential to cause health, safety or environmental concerns.

Eligible projects include the cleaning out and plugging of abandoned and orphan oil and gas wells; stray gas mitigation systems; and well venting projects.

Funds may be used by the applicant to pay for any of the following project costs:

  1. Construction of a stray gas mitigation system (which typically includes a methane vent stack and/or ventilation system); replugging improperly plugged and abandoned pre-Act wells; cleaning out and plugging abandoned oil and gas wells. Construction contingencies are limited to 5% of actual construction costs.
  2. Site preparation and site restoration costs.
  3. Plugging rig mobilization and demobilization costs.
  4. Installation of security measures, if needed.
  5. Engineering/inspection costs. Maximum of 10% of the grant award.
  6. Permit fees.
  7. Costs to secure appropriate bonds and insurance.
  8. Administrative costs of the applicant necessary to administer the grant. Administrative costs will include advertising, legal, and audit costs as well as documented staff expenses. Administrative costs shall not exceed 2% of the grant. 

GrantWatch ID#:

GrantWatch ID#: 142699

Estimated Size of Grant:

Grants shall not exceed a total of $1,000,000 for any project.

Additional Eligibility Criteria:

Any of the following entities may apply for a grant under the Orphan or Abandoned Well Plugging Program (OAWP):

1. Municipality – Any county, city, borough, incorporated town, township or home rule municipality.

2. Councils of Governments – An entity organized by units of local government under an intergovernmental agreement, which provides cooperative planning, coordination and technical assistance to its member governments on issues of mutual concern that cross jurisdictional lines, and which does not act under the direction and control of any single member government.

3. Authorized Organization – An entity involved in research, restoration, rehabilitation, planning, acquisition, development, education or other activities, which furthers the protection, enhancement, conservation, preservation or enjoyment of this commonwealth's environmental, conservation, recreation or similar resources. The organization must be a tax-exempt institution under section 501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c) (3)) and registered with the Bureau of Charitable Organizations or an educational institution involved in these authorized activities or a municipal authority.

4. Institution of Higher Education – An entity that is an accredited university, college, seminary college, community college or two-year college.

5. Watershed Organization – An entity recognized by the PA Department of Conservation and Natural Resources or the PA Department of Environmental Protection that was established to promote local watershed conservation efforts in an identified watershed.

6. For Profit Businesses – other than “producers” of natural gas as defined in Act 13.

Ineligible costs include but are not limited to public relations, outreach, communications, lobbying, litigation, fees for securing other financing, interest on borrowed funds, application preparation fees and other costs incurred prior to the approval of grant funds.

Pre-Application Information:

Due to the coronavirus (COVID-19) outbreak, the Commonwealth Financing Authority has extended the deadline for Act 13 submissions to July 31, 2020.

The applicant shall obtain the services of a professional engineer or geologist licensed in Pennsylvania who will certify to the Authority during construction that the expenses were incurred and were in accordance with the plans approved by the Authority. The Authority will release funds to the applicant at not less than 30-day intervals.

To be eligible for reimbursement, project costs must be incurred within the time frame established by the grant agreement.

The Commonwealth Financing Authority charges a $100 non-refundable application fee for Orphan or Abandoned Well Plugging Program applications. The application fee must be paid electronically by credit or debit card or electronic check through our secure, third-party vendor.

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

Application: https://www.esa.dced.state.pa.us/Login.aspx

PA Department of Community and Economic Development
Office of Business Financing – CFA Programs Division
Orphan or Abandoned Well Plugging Program
Commonwealth Keystone Building
400 North Street, 4th Floor
Harrisburg, PA 17120-0225

Telephone: (717) 787-6245
Fax (717) 772-3581
E-mail: ra-dcedsitedvpt@pa.gov

URL for Full Text (RFP):

Geographic Focus:

USA: Pennsylvania

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