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2018 Summary & Trends - Oil, Gas and Solution Mining

Division of Mineral Resources Annual Report

The New York State Oil, Gas and Mineral Resources 2018 Annual Report (PDF) 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 2018 was 10.6 billion cubic feet (bcf), down approximately 10% from the previous year. Trenton-Black River production declined approximately 19% to 2.6 bcf, accounting for about 25% of 2018 gas production. Gas production from the Medina decreased by nearly 10% to 5.6 bcf, accounting for nearly 53% of 2018 gas production. Oil production increased approximately 5% from the previous year to 224,717 barrels (bbls) in 2018.

The oil and gas produced in New York State in 2018 is valued at an estimated $48.0 million. Approximately $1.4 million was generated for local government taxes, and nearly $6.0 million was generated in royalties for landowners.

Wells

In 2018, New York well operators reported 14,312 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 2018 total include underground gas storage, solution salt mining, geothermal, brine disposal, monitoring, and stratigraphic. The total number of wells completed increased 129% from the previous year to 78 in 2018.

In 2018, a total of 190 operators reported 2,969 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 2018, New York held $19.86 million in financial security to guarantee well plugging and site reclamation.

Regulatory Activity

In 2018, the DEC's Division of Mineral Resources (DMN or Division) issued 91 drilling permits, and operators plugged 99 wells in accordance with DMN-issued plugging permits. In addition, 46 abandoned wells were plugged by DMN and the U.S. Environmental Protection Agency (USEPA or EPA). Total drilled depth of the wells for the year was approximately 132,121 feet (or 25 miles).

No compulsory integration hearings were conducted in 2018.

Division of Mineral Resources' Oil and Gas staff traveled 93,983 miles to perform 4,788 inspections in 2018. 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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