The Orphaned Well Cleanup and Jobs Act: Mitigating Unintentional Impacts of Abandoned Wells7/15/2021 The Orphaned Well Cleanup and Jobs Act was introduced in the House on April 8, 2021 by Representative Teresa Leger Fernandez [D-NM-3] on behalf of herself and Representatives Raul Grijalva [D-AZ-3], Alan Lowenthal [D-CA-47], Kathy Castor [D-FL-14] and Michael Doyle [D-PA-8]. The Bill passed the Committee on Natural Resources on May 26, 2021 on a 22-17 vote. It may be sent to other House committees prior to receiving a vote on the House floor.
THE BILL: H.R.2415 “Communities suffer when oil and gas companies abandon their drilling sites and don’t clean them up. We know that oil and gas development has broad environmental impacts and public health impacts. It’s imperative that we do everything possible to limit the risk and damage done by this development.” --House Committee on Natural Resources Chair Raúl Grijalva What does the Bill do? This Bill has two primary goals: 1) to provide the necessary funding to plug leaks, and cleanup abandoned (orphaned) oil and gas wells on state, private, public and tribal lands, and 2) to strengthen regulations in order to prevent wells from being abandoned in the future by establishing a fee on idle wells. The Bill will define standardized protocols for identifying, characterizing and inventorying orphaned wells, including those that are currently undocumented. This will help establish a prioritized ranking for funding allocation to plug the wells, remediate and reclaim the well pads and access roads, and restore the surrounding soil and native species. Additionally, there will be efforts to identify parties responsible for orphaned wells, so that they can provide reimbursement for expenditures. Specifically, the Bill allocates $7.25 billion for well cleanup and remediation on state and private lands, $400 million for public lands, and $300 million for tribal lands, and $50 million for research and development. Funding will be allocated according to priority, and can be used to plug leaking wells, remediate and reclaim polluted areas surrounding the wells, seek information about those responsible for abandoning the wells, support research for tracking emissions and contamination from the leaks, and reduce effects on environmental justice communities. It will be required that steel, iron and other materials used to plug and reclaim leaky oil and gas wells be made in the United States. Financial assurance instruments, such as bonding, are included in the Mineral Leasing Act and are used to make sure that any land leased for surface-distributing (oil and gas) activities are properly cleaned up, reclaimed, and restored before abandonment or stopping of operations. In this Bill, the minimum federal land oil and gas bonding amounts would increase substantially to help prevent well abandonment in the future. Why was it proposed? Wells do not produce infinite amounts of oil and gas. When a well is no longer producing economically relevant quantities of oil and gas, it is typically abandoned. In 2018 the EPA reported 3.2 million abandoned wells in the US (1), but because the wells have been abandoned over time and plugging regulations are insufficient, the map of those leaking is incomplete. Orphaned wells threaten both the environment and the community, leaking significant amounts of oil, contaminated fluids and natural gases including methane. These leaks can contaminate groundwater, release toxic air pollutants such as radioactive materials and metals, and create safety risks for communities (2)--disproportionately so for rural, tribal and communities of color. Additionally, abandoned wells have no liable owner, leaving remediation costs to the impacted communities. It is estimated to cost between hundreds of millions to billions of dollars to plug high-priority orphaned wells (2), which becomes a massive burden. According to the Interstate Oil and Gas Compact Commission (IOGCC), as of 2018, 63,000 orphaned wells had already been addressed and plugged (3). However, the IOGCC also reported 56,600 documented orphaned wells, and 194,400 idle wells out of the 1.6 million unplugged wells in the United States (3). It is important to note though, that many abandoned wells have not been sufficiently plugged, and there are likely many undocumented well that are continuing to leak (3). As a result there is a clear need for standardized practices for identifying orphaned wells that have been insufficiently plugged and for standardizing plugging practices. Benefits This Bill addresses environmental issues and stimulates rural economies by creating jobs and cleaning sites while also taking the financial burden off of the impacted communities and states. It also helps to hold companies accountable for their actions, making sure that sites are not causing unintentional harm after the company vacates the site. Locating, monitoring and plugging orphaned wells averts costly impacts and reduces risks to the environment and human health. Specifically, this Bill would avoid the release and loss of greenhouse gases such as methane to the atmosphere, which would help to directly address the climate crisis. Unlike other efforts to reduce greenhouse gases, like building solar farms or developing electric vehicles, plugging wells does not require new technology or expensive raw materials. It would also help to reduce levels of underground migration of oil leaks and migration into surrounding areas. Challenges The regulations associated with this Bill could be costly and may be a bigger burden on smaller oil companies. As a result these companies may go out of business, claim bankruptcy and avoid responsibility for their sites, which could ultimately result in more abandoned wells. The Bill does not mention who would then be responsible for paying these bonds and fees if the companies responsible go out of business. The Bill language extends beyond plugging leaky wells, and includes identifying responsible parties and remediating polluted areas surrounding the wells, supporting research for tracking emissions and contamination from the leaks, and reducing effects on environmental justice communities. Rather than seeking to determine potentially responsible parties to the extent such information can be ascertained and making efforts to obtain reimbursement for expenses to the extent practicable, the Bill language should be stronger to ensure that the Secretary of Interior, whomever this may be, cannot judge for themselves the extents of seeking how practicable it is to obtain reimbursement. The Bill also does not mention the requirements for what remediating a well looks like, or the extent to which the surrounding environment must be reclaimed. A major issue with underground contamination is that it can migrate across property lines, which can leave questions about who is responsible for the remediation efforts on the other side of the line. “The reality of Congress” (what the outlook of this bill looks like) This Bill has a 18% chance of being enacted into law (govtrack.com). However, all current supporters are Democrats. How Republicans see it: There is bipartisan support for cleaning up orphaned wells, however, some Republicans see this Bill as part of a “crusade” against the oil and gas industry. Increased bond requirements that are not directly related to plugging wells and remediation are taxing for the oil and gas industry, which does not align with the Republican platform to avoid hindering energy productivity. How Democrats see it: The Bill aligns well with the Democratic party platform, and specifically it is part of a broader effort to reduce oil and gas production to shift towards low carbon energy initiatives. Want to advocate? Does this Bill resonate with you? Do you want to see it become a law? Have concerns or thoughts you would like to discuss? This Bill currently has 25 co-sponsors in the House. The Representatives are: Raul M. Grijalva [D-AZ-3], Alan S. Lowenthal [D-CA-47], Kathy Castor [D-FL-14], Michael F. Doyle [D-PA-18], Matt Cartwright [D-PA-8], Diana DeGette [D-CO-1], Steve Cohen [D-TN-9], Nanette Diaz Barragan [D-CA-44], Nydia M. Velazquez [D-NY-7], Eleanor Holmes Norton [D-DC-At Large], Rashida Tlaib [D-MI-13], Adriano Espaillat [D-NY-13], Darren Soto [D-FL-9], Jared Huffman [D-CA-2], Earl Blumenauer [D-OR-3], Grace F. Napolitano [D-CA-32], Peter Welch [D-VT-At Large], Mike Levin [D-CA-49], Deborah K. Ross [D-NC-2], Jesus G. "Chuy" Garcia [D-IL-4], Katie Porter [D-CA-45], Mark Pocan [D-WI-2], Albio Sires [D-NJ-8], Mondaire Jones [D-NY-17], John A.Yarmuth [D-KY-3] Do you see your Congresspeople listed above? If not, you can email your policymakers by finding their emails at https://www.congress.gov/members?searchResultViewType=expanded or call their offices to voice your thoughts. Remember to use our Resources page for more information and guidance when reaching out! Footnotes
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