orphaned wells
Newsletter
Credit: Jason Woodhead/Flickr
Some Oklahoma oil companies demand refunds from a fund meant to clean up orphan wells
Oklahoma’s oil industry contributes to a voluntary fund for cleaning up abandoned oil wells, but many major companies are requesting refunds, diverting millions of dollars from crucial environmental efforts.
Mark Olalde reports for ProPublica and Nick Bowlin reports for Capital & Main.
In short:
- Oklahoma oil companies pay into a voluntary fund to clean up orphan wells, but major companies like Ovintiv and Chesapeake Energy are opting out, receiving more than $11 million in refunds in the last seven years.
- Refunds have significantly reduced the funds available for well restoration, preventing cleanup of an estimated 1,500 additional orphan sites that pose environmental risks.
- Industry groups are negotiating legislative changes that might further undermine the fund, potentially leading to fewer resources for cleanup efforts across the state.
Key quote:
“Once it’s paid in, it ought to be there permanently.”
— Don Scott, Oklahoma farmer
Why this matters:
Who ultimately pays the price for the oil industry’s leftovers, and what happens when industry commitments don't match the scale of the problem? Read more: What happens if the largest owner of oil and gas wells in the US goes bankrupt?
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Photo by Delfino Barboza on Unsplash
OneNexus sees future in 'life insurance' for aging oil wells
As the oil industry cleans up by slashing emissions, Tony Sanchez said it's time for it to tackle its orphan well problem.
Photo by Zbynek Burival on Unsplash
LA Times: California will cap hundreds of orphaned oil wells, some long suspected of causing illness
California state regulators announced this week their plans to cap orphaned oil wells across the state, including wells in a South Central Los Angeles residential neighborhood near USC that caused health complaints from residents for years. Nathan Solis and Christian Martinez write for the LA Times.
In a nutshell:
The team reports that it's an effort by the state to deal once and for all with abandoned oil and gas sites, which leak methane and hazardous chemicals into the air, soil and groundwater. These so-called "orphaned" wells posed health risks for years, often in disadvantaged communities. California has identified some 5,300 abandoned wells.
Key quote:
“This list includes leaking wells with serious compliance issues that have concerned communities for years,” David Shabazian, director of the state Department of Conservation, said in a news release.
Big picture:
The U.S. Environmental Protection Agency estimates the number of abandoned wells nationwide to be in the millions, with at least 300,000 to 800,000 still undocumented, according to reporting earlier this year by The Washington Post. Many residences and other developments are built over abandoned oil and gas sites, often without the knowledge of the developer or owner.
Last year the Biden administration announced a $4.7 billion program to clean up abandoned wells across the country under the 2021 Infrastructure Investment and Jobs Act. That's likely to be a drop in the bucket: A 2020 report found it would cost more than half a billion dollars to clean up California's abandoned wells alone.
Read the full LA Times story here.
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Newsletter
Photo by Zbynek Burival on Unsplash
California will cap hundreds of orphaned oil wells, some long suspected of causing illness
California state regulators announced on Tuesday their plans to cap orphaned oil wells across the state, including wells in a South Central residential neighborhood near USC that caused health complaints from residents for years.
Newsletter
Photo by Jared Evans on Unsplash
Abandoned oil and gas wells emit carcinogens and other harmful pollutants, groundbreaking study shows
The release of cancer-causing benzene and other toxic gases from sites in Pennsylvania raises concerns about millions of other abandoned wells across the U.S.
Jeff Wallace/Flickr
Alberta will pay oil companies for cleanup. We’ve got the details
The proposed pilot oil and gas cleanup incentive program — first pitched to the government by Alberta Premier Danielle Smith when she was an industry lobbyist — has led to a barrage of criticism from banks and economists
'All for naught.' Biden orphan well plan faces trouble in Pa.
While Pennsylvania aims to plug abandoned wells with a huge influx of federal dollars, it could be looking at many more wells being added to the list.
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