The Biden administration is planning to invest $660 million to clean up orphaned natural gas and oil wells, with most of the funds earmarked for the energy producing states of Ohio, Pennsylvania and Texas.
The goal is for the states to receive “economic growth and revitalization,” Department of Interior (DOI) officials said. The program would help to “reduce harmful methane leaks, which is one of the major drivers of the climate crisis, and reduce environmental and public health risks to surface water and groundwater resources critical to U.S. communities and ecosystems.”
Funds would come from the Bipartisan Infrastructure Law. The legislation provided $4.7 billion for well cleanups.
“Millions of Americans live within a mile of an orphaned oil and gas well,” DOI officials noted. “Orphaned wells are polluting backyards, recreation areas, farmland and public spaces in urban, rural and suburban areas. Methane leaking from many of these unplugged wells is a serious safety hazard and is a significant cause of climate change.”
Texas, the epicenter of the nation’s energy development, is eligible to receive the most funding, with $79.7 million earmarked for the state. As of August 2021, there were 7,061 orphaned wells in Texas, according to the Railroad Commision of Texas.
Pennsylvania, home to a large portion of the natural gas-rich Marcellus Shale, is set to receive the second highest amount of funding to clean up wells with $76.4 million budgeted. The state has an estimated 8,840 documented orphaned wells, according to the Environmental Defense Fund (EDF).
Ohio, which shares part of the Marcellus and Utica shales, would share about $57.8 million of the cleanup funds. Ohio had about 891 documented orphaned wells, according to EDF.
Across the Lower 48, there are an estimated 2.3-4 million orphaned gas and oil wells, some of which may leak methane. Wells that leak emissions or threaten water resources are among the drivers behind the program.
The American Petroleum Institute’s (API) Holly Hopkins, vice president of upstream policy, told NGI that the nation’s energy industry “is taking action every day to address the permanent closure of oil and natural gas wells and the remediation of well sites in accordance with applicable federal and state laws.”
API, a leading advocate for U.S. oil and gas development, plans to “continue to work with state regulators and industry partners to promote safety, sustainability and environmental stewardship, and help ensure that American energy is produced responsibly from start to finish.”
To receive funding to clean up the orphaned wells, states would be required to measure the methane emissions from orphaned wells and screen for groundwater and surface water impacts, according to DOI. The states also must “factor into their prioritization methods polluting wells in nearby communities of color, low-income communities, and Tribal and Indigenous communities.”
A prominent issue when it comes to plugging orphaned wells is the cost. A peer review by researchers at Resources for the Future (RFF), found that it is 9% more expensive to plug natural gas wells than oil wells.
The median cost for plugging wells is about $20,000, but this is without restoring the surface, RFF researchers noted.
“Plugging and reclaiming the surface around the well, which may be done for aesthetic, environmental, or job creation reasons, increases the median cost to $76,000,” according to the RFF analysis.
Last August, the Biden administration initially invested $560 million for the well cleanup program. The initial funds allowed states “to plug and remediate over 2,800 wells on state and private lands so far,” according to DOI. Additional funding is expected to be available soon for the 26 eligible states.
