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The U.S. Department of the Interior (DOI) is providing $775 million for 21 states to clean up orphaned oil and gas wells and well sites.
The resources allocated to clean up legacy pollution sites, of which over $1 billion has already been distributed, will eliminate harmful methane leaks and reduce environmental and public health risks to surface water and groundwater resources critical to U.S. communities and ecosystems, the agency said in a news release.
Through the Bipartisan Infrastructure Law, the DOI said it is delivering the largest investment in tackling legacy pollution in American history, including $4.7 billion to plug orphaned wells. The figure includes grants to states in three categories: initial grants, formula grants, and performance grants.
Since the enactment of the law, states have plugged more than 8,200 orphaned wells. Nationwide, investments through the Department’s Orphaned Well Program Office are estimated to have supported over 7,200 jobs and contributed more than $900 million to the economy over the last two fiscal years, according to the release.
Since August 2022, the DOI has awarded $565 million in initial grants to 25 states, $444 million in Phase 1 formula grants to 18 states and a $2 million performance grant to one state. The Phase 2 Formula Grant guidance that was recently released begins the start of the next application window for states to apply for an estimated $775 million in formula grant funds. The guidance encourages states to use project labor agreements and a unionized project workforce for the plugging, remediation and reclamation of wells.
The guidance also requires states to measure methane emissions from orphaned wells plugged with formula grants and screen for groundwater and surface water impacts caused by orphaned wells.
The 21 states eligible to apply for a Phase 2 formula grant have until December 13, to submit applications. Additional phases of funding will be available in the future, according to the release. Texas leads the pack in terms of its total grant formula eligibility with around $318.7 million, while Pennsylvania comes next at $306.5 million.
“President Biden’s Investing in America agenda is enabling us to confront long-standing environmental injustices by making a historic investment to plug orphaned wells throughout the country,” Secretary Deb Haaland said. “These investments are good for our climate, for the health of our communities, and for American workers. With this third round of additional funding, states will put more people to work to clean up these toxic sites, reduce methane emissions and safeguard our environment”.
In addition to providing historic funding to states, the Bipartisan Infrastructure Law allocated $250 million to clean up well sites in national parks, national forests, national wildlife refuges, and other public lands, nearly $150 million of which has been allocated over the past three years. This funding for states and federal land managers is in addition to the almost $40 million awarded to Tribal communities in September 2023, according to the release.
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The post DOI to Provide $775MM to 21 States to Plug Orphan Wells appeared first on Energy News Beat.
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