Orphaned oil well dismantling receives funding boost

The U.S. Department of the Interior has announced the availability of $775 million for 21 states to clean up orphaned oil and gas well sites, and says more than $1 billion in such funding has been distributed tied to the Bipartisan Infrastructure Law passed in 2021.

The department says the cleanup projects can help eliminate methane leaks and reduce environmental and public health risks tied to surface water and groundwater resources critical to U.S. communities and ecosystems.

The cleanup projects can require the services of different types of dismantling and remediation contractors. In the U.S. West, metals recycling company Pacific Steel & Recycling has contributed to efforts to plug and dismantle orphaned wells.

The recycling company says its efforts earlier this decade in just one Montana county yielded more than 21 tons of scrap metal.

The DOI says the infrastructure law has allowed it to make the largest investment in tackling legacy pollution in U.S. history, including $4.7 billion to plug orphaned wells.

“Plugging is underway across the country, and since the enactment of the Bipartisan Infrastructure Law, states have plugged more than 8,200 orphaned wells,” the DOI says.

In the newly announced funding round, 21 states are receiving grants, with the biggest allotment of funds being more than $318 million to Texas. Other states receiving more than $100 million to plug wells are Pennsylvania ($305 million), Ohio ($231 million), Oklahoma ($205 million), California ($141 million) and West Virginia ($117 million).

“These investments are good for our climate, for the health of our communities and for American workers,” DOI Secretary Secretary Deb Haaland says. “With this third round of additional funding, states will put more people to work to clean up these toxic sites, reduce methane emissions and safeguard our environment.”

The DOI estimates that nationwide, investments through the department’s Orphaned Well Program Office have supported more than 7,200 jobs and contributed more than $900 million to the economy over the last two fiscal years.

Such wells can be found in backyards, recreation areas and community spaces across the country.

Actions that can result from the grants include measuring methane emissions from orphaned wells before they are plugged and screening for groundwater and surface water impacts caused by orphaned wells. 

The 21 recipient states have until this December to apply for a Phase 2 formula grant.