The U.S. Department of the Interior (DOI) recently declared that Missouri would receive assistance in evaluating almost 5,000 orphaned oil and gas wells. This financial aid is part of the Investing in America initiative.
In a continuation of its efforts to address abandoned and orphaned oil and gas wells across the country, the DOI disclosed the 25th grant from the Bipartisan Infrastructure Law on January 30. "President Biden’s Investing in America agenda is helping remedy long-standing environmental injustices by plugging and remediating orphaned oil and gas wells throughout the country. With today’s announcement, half of all U.S. states have received funding from the Biden-Harris administration to clean up legacy pollution, marking a significant milestone in our country’s efforts to restore the lands, waters, and communities scarred by past oil and gas extraction," said Deb Haaland, Secretary of the Interior.
According to an "Orphaned Oil and Gas Wells 101" document from the DOI, the first oil well was drilled in northwestern Pennsylvania in 1859. In mid-20th century, there was no requirement for well drillers to plug and clean up wells, resulting in many being left behind when they dried up or ceased production. There may be as many as a million wells that were drilled before operators were obligated to plug and reclaim them. State, federal, and tribal governments bear responsibility for these orphaned wells; they must either cover plugging costs or deal with potential risks posed by unplugged wells.
On February 9, 2022, The Columbia Missourian reported that over 10,000 oil and gas wells had been abandoned without closure. The state was then anticipated to receive $32 million to tackle issues arising from these wells. The newspaper noted that plugging a well in Missouri could cost up to $10,000 per well—a daunting figure considering the number of wells requiring attention.
In the January 30 news release, the DOI indicated that Missouri is eligible for nearly $27 million in formula grant funds, in addition to the funds announced this week and those previously obtained.
