Press Releases

Today, Congresswoman Teresa Leger Fernández’s (NM-03) announced that the House Natural Resources Committee passed her Orphaned Well Cleanup and Jobs Act of 2021 (H.R. 2415).

“It’s time we start holding oil and gas companies responsible for their mess. The Orphaned Well Cleanup and Jobs Act will do just what it says - clean up the orphaned wells polluting our waters and air, and create jobs in the communities that fueled the power and progress of America. I’m very pleased that my bill passed at today’s House Natural Resources Committee markup. 

“There are over 700 orphaned wells in my home state of New Mexico. Countless more are unidentified or sitting idle and at risk of becoming orphaned and abandoned with an over $8 billion gap between the bonds available to do the clean up and the cost. We cannot allow taxpayers to get left holding the bag. This bill is a critical first step toward addressing the climate crisis and investing in our rural, legacy fossil fuel communities.

“I look forward to continuing the work to get my bill enacted this Congress.” 

Background: 

Orphaned wells are oil and gas wells that have been abandoned by defunct companies that cannot pay to plug them and restore the area.  Across the country over 56,000 known “orphaned” oil and gas wells leak methane into the air and groundwater and pose serious public health risks, especially to rural, Tribal, and communities of color.

The Orphan Wells Cleanup and Jobs Act:

• Authorizes $7.25 billion in grant funding for orphaned well cleanup on state and private lands, $400 million for cleanup on public lands, and $300 million for cleanup on Tribal lands. 

• Strengthens regulatory safeguards on public lands to prevent future orphaned wells. 
• Increases minimum public land oil and gas bonding amounts to $150,0000 and $500,000 for all of an operator’s wells on an individual lease or in an entire state, respectively. 
• Requires operators pay an annual fee for idled wells on public lands.
• Allocates $50 million for related research and development to identify, characterize, and mitigate undocumented orphaned wells.
• Requires the steel, iron, and other materials used in the plugging and reclamation of oil and gas wells to be made in the United States. 

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