Office of Oil and Gas Management

Home Use Gas Wells

Many Pennsylvanians have private use gas wells that produce natural gas used and wholly consumed (not commercially sold) to power and/or heat the homes, farms or other structures located on the property close to the location of that well. This type of gas well use is typically referred to asa home or consumptive use well. These wells are conventional wells that produce natural gas solely for private, personal consumption.

Even though gas produced from home use wells is not sold on the open market, these wells are still regulated under Pennsylvania’s 2012 Oil and Gas Act (58Pa.C.S. §§3201-3274) and Title 25, Chapter78 of the Pennsylvania Code. Private use of gas from a well for home, farm, or business subjects the owner or operator, as defined in 58 Pa.C.S. § 3201, to the applicable statutes and regulations implemented by DEP.

Home Use Gas Well

Whether you currently own property with a home use well or are looking to buy or sell property with a home use well, the following information has been compiled to assist you in understanding the most common questions or misconceptions regarding the requirements and responsibilities of owning/operating a home use well in Pennsylvania

Methane Emission Reduction Program (MERP)

Requirements

Well permit number (API number)
All home use wells must have a well permit or well registration to operate. Each permitted or registered well has been assigned a unique identification number established by the American Petroleum Institute (API), known as an API number. All permitted or registered wells in Pennsylvania start with the number 37, followed by the three-digit County code and then the 5-digit DEP unique identifier. The County Code and DEP Unique Identifier in combination make up the well permit/registration number in the DEP data system.

 

Code Identifier

 

A homeowner with a home use well should know their well permit/registration number or know where to find it. To find your well permit/registration number visit the link or URL below for the Oil and Gas Well Inventory Report.

Oil and Gas Inventory

Or, contact the Oil and Gas Planning and Program Management office at 717-772-2199 or RA-EP-BOGMOGRE@pa.gov for help.

What is an OGO number?
An Oil and Gas Operator number (OGO number) is a unique identification number assigned to owners and operators of oil or gas wells, including owners and operators of home use wells. To obtain an OGO number, the Operator General Information Form must be completed and sent to the DEP Oil and Gas District office where the well is located for approval. A copy of this form can be found here: Operator General Information Form-8000-FM-OOGM0099

Well Labeling
The 2012 Oil and Gas Act requires well operators to install a label on the well upon completion that is legible, visible and permanent.

 

Well Label

 

Record Keeping

The owner or operator of a home use well, whether that person applied for the initial well permit or acquired the home use well through a transfer, should keep and maintain the documents necessary for demonstrating that they are the current operator of the well. Likewise, if you sell your home/well you should keep copies of any sales documents and well transfer forms that were approved by DEP that would show that you no longer have responsibility for the well. See the Well Ownership Transfers section for more information on how to transfer a well.

Gas Production - For home use wells, the owner or operator must report gas production on a yearly basis (Jan-Dec). The volume of gas produced is reported in units as Mcf (thousand cubic feet). However, most home use wells are known not to be equipped with a meter to monitor gas production. If a home use well is not equipped with a meter to measure gas produced, and the well supplies one residence, you may estimate 100 Mcf to signify that the well has produced gas during the report year. Additional information on how to submit the Annual Production Report can be found here:

OGRE Conventional Production/Waste Reporting Guide

Waste Production - Waste production is reported on the same report with gas production. “Brine” or fluids produced by a home use well during operating, service or plugging is a regulated waste and must be managed consistent with applicable laws, including the 2012 Oil and Gas Act, the Solid Waste Management Act, 25 Pa. Code Chapter 78 (relating to oil and gas wells) and 25 Pa. Code Chapter 287 (relating to residual waste management). The annual production report must include information on the amount and type of waste produced and the method of waste disposal or reuse. It is recommended to keep record of the waste hauler name, amount of waste collected (in barrels), method of disposal, and the waste destination. Waste quantity is measured in barrels (1barrel BBL= 42 gallons).

Mechanical Integrity Assessment - The owner or operator of a home use well must conduct a mechanical integrity assessment at least once each quarter of every year to ensure compliance with the applicable well construction and operating requirements. These mechanical integrity assessments must be documented in a mechanical integrity assessment report that is submitted to DEP annually. Records of these quarterly assessments must be maintained for five years and be available for review upon request from DEP. For reporting requirements, only one of the quarterly assessments should be submitted with the annual report to DEP. For more information on conducting quarterly mechanical integrity assessments please see the Maintenance section of this webpage.

PLEASE NOTE: The above reporting requirements should be submitted electronically via the DEP Oil and Gas Reporting-Electronic (OGRE) online application. OGRE can only be accessed via a DEP GreenPort account. However, the DEP Bureau of Oil and Gas Planning and Program Management has developed a one-page reporting form titled 8000-FM-OOGM0001 Annual Production and Mechanical Integrity Assessment Conventional Wells Report – Home Use Reporting Only form. This form is exclusively for owners and operators of home use wells only and not for wells were the gas or oil is sold. The above information should be submitted in OGRE via DEP Greenport if possible; however, if a home use operator does not have access to a computer or internet, this form can be mailed or emailed to the Department.

To register for a DEP GreenPort account, visit the link below:

DEP GreenPort

DEP is authorized to inspect any oil and gas well, including home use wells. DEP may inspect your well to determine compliance with the applicable law. DEP’s inspection priorities include inspections at the time of transfer from one operator to another; or based on a complaint, spill or other environmental issue.

All wells drilled after April 17th, 1985, are required to have a bond. If the well on your property was drilled after April 17, 1985, a surety or collateral bond of $2,500 per well is required. See the link below for more information about bonding requirements.

Guidelines for Submitting Oil and Gas Well Bonds

If you have additional questions about bonding requirements, please contact the DEP District Oil and Gas office that covers the county where your well is located.
 

DEP Oil & Gas Permitting Offices Map

The operator of a home use gas well must plug the well upon abandonment. An abandoned well is defined as a well that has not produced in the previous 12 months or if the equipment necessary for production has been removed.

Plugging costs can range from approximately $10,000 and upward depending on geology, well construction and integrity and total depth of the well. This expense should be considered when buying property with a well or deciding whether to accept a well for home or consumptive use from an operating company after the well’s commercial production has been depleted.

Additional information on average well plugging cost can be found below. This is an independent study and not endorsed by DEP. (Study Reveals Key Factors for Estimating Costs to Plug Abandoned Oil and Gas Wells (rff.org)) Some of the highlights in this report include:

  • The median cost of plugging a well without restoring the surface is about $20,000.
  • Plugging and reclaiming the surface around the well increases the median cost to $76,000.

Ownership and Operation

Individuals should carefully consider the advantages and disadvantages of taking ownership of a home use well before agreeing to accept the transfer of a home use well. Individuals might want to consult legal counsel or a real estate professional with experience in such transactions. If considering taking ownership of a home use gas well, here are some questions you should ask:

  • What is the well depth?
  • How is the well constructed?
  • Is this considered a coal well?
  • Does the well produce waste to be disposed?
  • What are the operation and maintenance costs?
  • What are the potential liabilities in owning a well?
  • What are the plugging requirements and costs?
  • Should I get a third-party consultant to do a well test and inspection?

When selling or buying a home with a gas well on the property, transferring gas well ownership is a separate transaction from the transfer of property ownership and must be accomplished through DEP. If bonding applies, the new well operator’s bond must be in effect before the well transfer is approved. If you are considering buying or selling a home with a gas well a DEP Well Transfer Form will be required.

DEP Well Transfer Form
Application for Transfer of Well Permit or Registration-5500-PM-OG0010

Operators of a home use well are responsible for the safe control and use of the gas. Operators are also responsible for the piping, pressure regulators, safety relief valve and automatic shutoffs needed to keep the gas flowing properly and to prevent leaks into a home or other property.

Unlike gas from a utility company, natural gas coming directly from a well may have little to no odor to alert users to the presence of a leak. It is recommended to install a natural gas or LEL (lower explosive limit) detector in your home.

When acquiring a home or other property with a gas well or installing a gas line from a well, it is essential to have a qualified professional inspect the system and perform any necessary installation or repair work. It is also recommended to have a home heating inspection conducted for natural gas service completed annually.

When acquiring a house with a gas well or installing a gas line from a well, please have a qualified professional utility contractor inspect the system and perform any installation or repair work needed.

As the owner/operator of a home use well, it is important to understand and keep in mind that you may be held personally responsible for any environmental impacts or health and safety issues associated with your home use well. For example, if water quality or other environmental issues result from a leaking home use well, the owner/operator of the home use well may be subject to an enforcement action requiring the owner/operator to address and correct any environmental impacts or health and safety concerns. Potentially, this may be an unforeseen significant cost to the home use well operator.

Some home use wells produce “brine” or other fluids generated during operation, service or plugging that needs to be collected and disposed of properly in accordance with the appliable law. For most home use owners/operators, having this wastewater hauled to a disposal site by a local hauling contractor is the best option. This wastewater is not suitable for septic systems and most sanitary sewer systems.

If a contractor is hired to haul your brine waste be sure to request a manifest (i.e., transportation document) with the amount hauled and inquire about the location of waste disposal if not noted on the manifest. This information will be necessary for annual reporting.

As an owner/operator of a home use well, you must prepare and implement a plan for the control and disposal of this wastewater. Additionally, as an owner/operator of a home use well, if there is a spill or release of this wastewater that causes or threatens pollution to the waters of the Commonwealth or a spill or release of this wastewater to the ground, you must comply with the applicable law related to reporting releases and remediation.

Home use wells require regular maintenance to ensure safe and proper operation. These maintenance items include:

  • Monitoring the wellhead and piping for corrosion
  • Painting the wellhead and piping to address corrosion
  • Monitoring pressure at the wellhead and in the pipeline
  • Replacing valves and leaking fittings
  • Monitoring and replacing any necessary equipment
  • Addressing erosion issues around the wellhead

Related to regular maintenance, home use well owners/operators must submit an annual Mechanical Integrity Assessment report which demonstrates the mechanical integrity of the home use well. This assessment includes quarterly inspections assessing production gas pressure, presence of escaping gas or other fluids, and corrosion issues. In some areas of Pennsylvania, well tender services are available to home use well owners/operators who will address the above maintenance needs of the well.

For technical questions regarding inspection components, contact the appropriate DEP District Oil and Gas Operations office that covers the county where your well is located.
 

DEP Oil & Gas District Offices Map

If you have additional questions, please contact:
PA DEP
Bureau of Oil and Gas Planning and Program Management
717-772-2199 or RA-EP-BOGMOGRE@pa.gov