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Rep. Leger Fernández Announces Funding to Clean Up Orphaned Wells and Create Jobs in New Mexico

Today, Congresswoman Leger Fernández announced that the U.S. Department of the Interior has made $560 million available in funding to clean up orphaned wells and create jobs for New Mexico and other states. This is the first allocation of an overall $1.15 billion in phase one funding to plug and remediate orphaned wells from the Bipartisan Infrastructure Law. The infrastructure funding incorporated aspects of Leger Fernandez’ Orphan Wells and Jobs Act.   New Mexico will receive $25 million from today’s allocation.  In addition, New Mexico will have additional opportunities to apply for formula and performance-based funding opportunities in the future. 

“We fought for funding to clean up orphan wells because these wells emit methane, threaten groundwater and don’t do anyone any good.  Today’s initial funding will provide resources to plug, cap, and reclaim orphaned oil and gas wells around New Mexico. Thousands of New Mexicans live within a mile of an orphan well, and these clean up funds are an investment in their communities and health, while creating good paying jobs.said Rep. Leger Fernández. “The $4.7 billion in the Infrastructure Law to clean up orphaned wells and  invest in our rural communities is a win for our environment, a win for our metal workers, a win for our American steel manufacturers, and a win for our public health.  New Mexico’s leadership in regulating methane pollution and cracking down on companies that abandon wells will place it in a very competitive spot to receive additional funding.”

Background:

Orphaned wells are oil and gas wells that have been abandoned when their operator goes bankrupt and cannot pay to plug them and restore the area. In New Mexico there are approximately 1,700 orphaned and abandoned wells on state and private land. With the funding announced today, New Mexico plans to cap 200 high-priority wells.

Across the country, states have identified more than 129,000 orphaned wells on state and private land, though this number will grow as Bipartisan Infrastructure Law funding becomes available for further records research, more field equipment, improved well location techniques, and increased site inspections and data collection nationwide. These wells leak methane and other pollutants into the air and groundwater that pose serious public health risks to rural, Tribal, and communities of color.

The Orphaned Well 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.
  • 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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