The U.S. Department of the Interior (DOI) has unveiled the first Phase 1 formula grant of 2024, an $80 million allocation expected to be part of a series of annual grants totaling nearly $320 million for Texas. The state will be mandated to monitor methane emissions from sealed orphaned wells, assess water impacts in ground and surface water, and conduct clean-up operations for wells located near low-income and Tribal communities.
Orphaned wells are defined as oil and gas wells that have been drilled and subsequently abandoned once they become unproductive. According to the DOI, there are between 800,000 to one million such wells that were drilled before regulations were implemented requiring operators to seal wells that have run dry. These orphaned wells, which no longer produce oil or gas or serve their intended purpose, fall under the jurisdiction of state, federal and tribal governments.
Interior Secretary Deb Haaland stated: "President Biden’s Investing in America agenda is creating jobs and revitalizing local economies while cleaning up harmful legacy pollution sites throughout the country. I’ve seen many of these toxic sites firsthand, including abandoned wells outside Houston that were actively leaking oil and needed to be urgently addressed. With this historic funding, Texas can continue the progress it has made plugging wells over the last year. These investments are good for our climate, for the health of our communities, and for American workers."
Under the provisions of the Bipartisan Infrastructure Law (BIL), a sum of $16 billion is set aside for sealing orphaned wells and reclaiming deserted mine sites. The aim is to make these areas safer for local communities. According to information on the DOI’s web page on legacy pollution, the BIL includes $4.7 billion specifically for sealing orphaned wells and remediating and restoring orphan well sites.
The DOI also highlighted that since August 2022, Texas has sealed 730 orphaned wells within its borders after receiving $25 million from the BIL for this purpose. The press release announcing the latest funding allocation noted that efforts to address legacy pollution across the United States are estimated to have supported 7,213 jobs and contributed more than $900 million over the last two fiscal years.
The Orphaned Wells Program Office, established in January 2023, is tasked with ensuring that funding recipients are held accountable as they execute their plans for cleaning up orphaned wells.
