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2017 Summary & Trends - Oil, Gas and Solution Mining

Division of Mineral Resources Annual Report

The New York State Oil, Gas and Mineral Resources 2017 Annual Report (PDF) (4.67 MB) provides an overview of the oil and gas industry in NY, including permits and well completions, production, state land leasing, underground gas storage, solution mining, and well plugging activities. It also provides an overview of the mining industry and mined land reclamation in NY, including mine types and permits, geographic occurrence, owner types, trends, acreage statistics, reclamation, financial security, and enforcement.

Production, Market Value and Economic Impact

New York State natural gas production in 2017 was 11.8 billion cubic feet (bcf), down approximately 13% from the previous year. Trenton-Black River production declined approximately 25% to 3.2 bcf, accounting for about 27% of 2017 gas production. Gas production from the Medina decreased by more than 5% to 5.6 bcf. Oil production decreased approximately 3% from the previous year to 214,821 barrels (bbls) in 2017.

The oil and gas produced in New York State in 2017 is valued at an estimated $46.2 million. Approximately $1.4 million was generated for local government taxes, and nearly $5.8 million was generated in royalties for landowners.

Wells

In 2017, New York well operators reported 14,543 wells (all regulated well types). Most of these wells were drilled to explore for and/or produce oil or natural gas. Other regulated well types reported in the 2017 total include underground gas storage, solution salt mining, geothermal, brine disposal, monitoring, and stratigraphic. The total number of wells completed decreased 34.6% from the previous year to 34 in 2017.

In 2017, a total of 211 operators reported 2,876 wells with no (zero) production for the entire year. This is in addition to over 4,000 orphaned and unplugged wells in DEC's records.

At the end of 2017, New York held $20.49 million in financial security to guarantee well plugging and site reclamation.

Regulatory Activity

In 2017, the DEC's Division of Mineral Resources (DMN) issued 51 drilling permits, and operators plugged 69 wells in accordance with DMN-issued plugging permits. In addition, 109 orphaned wells were plugged by DMN and the U.S. Environmental Protection Agency. Total drilled depth of the wells for the year was approximately 67,309 feet (or 12.75 miles).

No compulsory integration hearings were conducted in 2017.

Division of Mineral Resources' Oil and Gas staff traveled 69,948 miles to perform 3,864 inspections in 2017. Staff inspect well sites:

  • during permit application review;
  • during drilling and plugging work, with emphasis on cementing operations;
  • to ensure regulatory requirements are followed and that violations, if any, are remediated;
  • during production and prior to ownership transfers to ensure compliance;
  • to score abandoned wells to assess relative threat to the environment and public safety in support of well plugging initiatives;
  • to ensure that reclamation meets requirements; and
  • to investigate complaints.

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