Cabot Ordered To Plug Wells In Pa. Pollution Probe

By Jocelyn Allison (April 16, 2010, 2:22 PM EDT) -- Cabot Oil & Gas Corp. has agreed to pay $240,000 and close three of its wells in northeastern Pennsylvania in a settlement with state environmental authorities over migrating gas that has allegedly contaminated the area's drinking water.

The Pennsylvania Department of Environmental Protection issued a consent order Thursday requiring the company to close the wells within the next 40 days and install permanent treatment systems in 14 homes in Susquehanna County.

The homes, located about 30 miles northwest of Scranton, Pa., have drinking water supplies contaminated with methane, which authorities believe is coming from wells Cabot has drilled as part of...

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