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Orphaned Well Cleanup and Jobs Act of 2021
4/17/2024, 11:45 PM
Summary of Bill HR 2415
The bill proposes to allocate $4.275 billion over the next five years to fund the cleanup and remediation of orphaned wells across the country. This funding would be distributed to states and tribes to support their efforts in plugging and reclaiming orphaned wells, as well as addressing any environmental contamination caused by these wells.
In addition to the environmental benefits, the Orphaned Well Cleanup and Jobs Act of 2021 also aims to create jobs in the energy sector. By providing funding for well cleanup and remediation projects, the bill would create employment opportunities for workers in the oil and gas industry who may have been displaced due to the downturn in the market. Overall, the Orphaned Well Cleanup and Jobs Act of 2021 seeks to address the environmental and economic challenges posed by orphaned wells in the United States by providing funding for cleanup efforts and creating job opportunities in the energy sector.
Congressional Summary of HR 2415
Orphaned Well Cleanup and Jobs Act of 2021
This bill establishes incentives and requirements to permanently plug orphaned (i.e., abandoned) oil and gas wells and clean up pollution leaking from such wells.
Specifically, the bill directs the Department of the Interior to establish grant programs to plug and clean up orphaned wells located on federal, state, tribal, and private land.
Interior must also issue regulations that require each operator of an idled well on federal land to pay an annual, nonrefundable fee for each well. If the operator fails to pay the fee, then Interior may assess a civil penalty. Revenues generated from such fees must be used for activities related to cleaning up orphaned wells.
Additionally, the bill requires the review of the adequacy of bonds or other financial arrangements for oil and gas development on public land leased from the federal government. Such bonds or financial arrangements are currently required to ensure developers have adequate financial resources to remediate and reclaim public land, water, or other resources after wells are abandoned or oil and gas development ceases.
