Texas regulator highlights problems in federal orphan well plugging program in testimony to Congress
(WO) – Earlier this week, Texas Railroad Commissioner Jim Wright testified before the U.S. House Committee on Natural Resources, where he spoke in favor of bipartisan legislation to provide states with more flexibility to utilize the orphan well plugging funds provided to states under the Infrastructure, Investment, and Jobs Act.
H.R. 7053, the Orphan Well Grant Flexibility Act, would provide states flexibility when it comes to methane monitoring of orphan wells through the Department of the Interior (DOI) Formula Grant program.
“The methane monitoring requirements under the DOI’s current Formula Grant increases the cost to plug these wells,” said Commissioner Wright. “For states with large orphan well populations, increasing plugging costs by 10% means that ultimately there will be 10% fewer wells plugged with these funds.”
While the legislation focuses on the cost of methane monitoring, Commissioner Wright also took the opportunity to highlight several other failures of the DOI’s Orphaned Wells Program Office, specifically the delays Texas has experienced with respect to the Endangered Species Act (ESA) and the National Historic Preservation Act (NHPA) reviews under the Formula Grant.
“The delays Texas has experienced under the Formula Grant has significantly hindered our ability to plug orphan wells utilizing federal funds,” Commissioner Wright noted.
“Texas plugged a total of approximately 730 wells with $25 million through the DOI’s Initial Grant. Unfortunately, due to the increased costs and the extensive delays and reviews required by the DOI, the number of orphan wells plugged with federal funds through the first five months of the Formula Grant is 60% lower than what was plugged during the first five months under the Initial Grant.”
