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Millions of Americans live near abandoned, toxic oil and gas wells. What does the government plan to do about it?

Stephen Foulger, of the Utah Department of Environmental Quality, inspects an oil pump site.
Stephen Foulger, an environmental scientist with the Utah Department of Environmental Quality, uses a Flir gas detection camera during an inspection of an oil pump site near Roosevelt on Wednesday, Dec. 1, 2021.
 Scott G Winterton, Deseret News Purchase Photo

Millions of Americans live near an abandoned oil or gas well — 9 million live within just one mile.

Long forgotten by energy companies who packed up once they’re no longer viable or went bankrupt, “orphaned wells” spew toxic methane gas and pose a serious public health risk.

A new program spearheaded by the Bureau of Land Management and bolstered by the $1.2 trillion infrastructure package is aimed at plugging those forgotten wells, which are found in over half of the nation’s states.

The package sets aside almost $5 billion for plugging wells, tracking methane emissions and land remediation. As of Thursday 26 states, including Utah, have issued a notice of intent to apply for a formula grant, one of three grants states can request under the program.

The money will be allocated based on how many wells a state has. An additional grant of up to $25 million and a performance grant that will require states to apply annually are also available.

The program is being touted as an economic boost, and stakeholders say workers will be in demand to plug the wells, remediate the land and remove old infrastructure.

What are orphaned wells and how many are in the U.S.?

The numbers are disputed, and some groups say there are close to 215,000 orphaned wells across the country, while the latest estimate from the U.S. Department of the Interior is 130,000 — twice as many as the department estimated in 2019.

…click on the above link to read the rest of the article…

Who pays for the care of “orphaned” oil and gas wells? You do

Who pays for the care of “orphaned” oil and gas wells? You do

When oil and gas wells end their useful life, one of two things happens: 1) They are plugged and capped to prevent further flows or 2) they are simply abandoned.

When they fall into the second category, they are called “orphaned” wells and they become the responsibility of the government to secure. But that’s if the government actually knows about them. Records of well placements are not always so carefully maintained and can get lost during bankruptcies and changes in ownership or due to sheer carelessness. As a result, there appear to be far more abandoned wells than the orphaned ones that governments know about.

Since I last wrote about this problem in 2012, there has been a huge wave of drilling in Texas, North Dakota, New Mexico and Colorado as the so-called shale revolution unleashed billions of barrels of previously inaccessible oil and trillions of cubic feet of natural gas on the world. Now that drillers in the shale fields have fallen on hard times, many wells are idle and at risk of being abandoned.

Companies are required to post bonds to pay for the plugging and capping of wells by the state if the companies fail to plug and cap them. However, these bonds are entirely inadequate. According to Grist, in Texas the bonds covered just 16 percent of the costs incurred by the state in 2015. In New Mexico the number was 18 percent.

The pattern here is a familiar one. The profits of oil and gas production get privatized and the costs—in this case, environmental and health costs—get socialized, that is, members of the public get saddled with the costs either through clean-up or damage to health and property

…click on the above link to read the rest of the article…

 

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