Systematic Well Retirement
As a proud member of the communities in which we operate, we embrace our commitment to those communities and the environmental ecosystems where they are located. The Appalachian Basin is the oldest natural gas producing region in the US, and the assets we manage have been a part of the communities where we operate for years, decades and, in some cases, nearly a century. We understand the potential that we have to create a positive impact through the proper care and attention of our assets throughout the economic life cycle, from acquisition to retirement.
As such, and with safety and environmental stewardship as top priorities, we designed our Safe and Systematic Well Retirement programme to permanently retire wells that have reached the end of their economic lives. Our retirement process involves a few carefully planned steps, completed by our experienced team partnered, at times, with appropriate experts and overseen by state regulators who ultimately approve the work.
About Our Process
We continually strive to design our asset retirement program as a reflection of our stewardship commitment. Each project is uniquely designed for the most efficient and effective permanent closure of the well, rather than using a generic "one size fits all" design. For every well plugged, our operations teams take into consideration a number of factors such as geography, environment and various state-level agreements that impact plugging activities.
Our Safe and Systematic Asset Retirement Program was created with strict regard to regulatory requirements and plugging agreements held with each primary operating state. In adherence to these obligations, Diversified Energy Company (DEC) retires wells using a well-specific design process, as outlined below:
Acting as Responsible Stewards
Stewardship involves environmental, social and economic considerations. The Company takes seriously its commitment to stewardship, using a systematic process to identify wells ready for retirement, including:
- Safety or environmental concerns
- State retirement lists
- Non-producing wells
- Other relevant factors
It is the desire of Diversified to return each retired well site insofar as possible to its original and natural condition. The Company works closely with landowners and regulatory authorities to meet all expectations when retiring wells, restoring well sites and reducing the environmental footprint of our operations. After restoring the well sites, Diversified also plants or funds the planting of trees on these sites as part of our ongoing environmental sustainability efforts.
For more information on our retirement program, please refer to our Sustainability Report