The Department of the Interior has announced updates to its guidelines for states applying to federal programs focused on cleaning up abandoned oil and gas wells. These changes aim to streamline processes and expedite state actions.
The revised guidance affects two federal grant programs: the $780 million Orphaned Wells State Matching Grant Program and the $1.93 billion Orphaned Wells State Formula Grant Program. The new guidelines remove non-statutory requirements, thereby reducing the burden on state grant recipients. Key changes include removing the need for states to conduct pre- and post-plugging methane measurements, recognizing state discretion in identifying orphaned wells, and eliminating unnecessary post-award environmental reviews by the Department.
"States know their land and their needs best," said Acting Assistant Secretary of Policy, Management, and Budget Tyler Hassen. "By cutting unnecessary barriers, we’re helping them clean up old wells faster, protect communities, and support energy development."
These updates align with initiatives from the Trump administration to strengthen American energy independence by reducing regulations and promoting governance that makes sense. By offering more flexibility to states and accelerating well-plugging efforts, the Department supports goals of boosting U.S. energy resources, safeguarding jobs, and minimizing federal intervention.
Orphaned wells are present in various regions across the country due to circumstances like bankruptcy or economic downturns. They pose risks such as methane leakage which can harm public health and obstruct new energy developments.
“These changes make it easier for states to get to work,” stated Eva Vrana, Deputy Assistant Secretary for Policy and Environmental Management. “States can move more quickly to plug wells and reduce environmental risks.”
The Department plans to collaborate with states on updating existing grants under these new guidelines as part of a broader strategy aimed at supporting domestic energy initiatives while protecting the environment.
