US government agencies establish $4.7bn orphaned well capping programme

The US Department of Energy will spearhead a $4.7 billion programme billion for orphaned well site plugging, remediation, and restoration activities.

The federal agency said the effort will be an “interagency initiative”, working with the Departments of Agriculture and Energy as well as the Environmental Protection Agency and the Interstate Oil and Gas Compact Commission.

The agencies have signed a memorandum of understanding establishing a framework for the programme’s implementation.

The new agreement requires the orphaned well programme to be formally established within 60 days. It also creates an executive group to provide oversight of the programme and a technical working group to provide input and recommendations.

US states and Native American tribes will manage their own orphan well plugging, remediation and restoration programmes.

“I have seen firsthand how the orphaned oil and gas wells left behind by extractive industries lead to hazardous pollution, water contamination, and safety hazards for our communities. The Bipartisan Infrastructure Law is poised to make critical investments to help clean up this legacy pollution – and it will take an all-of-government approach to implement the program,” said Secretary of the Interior Deb Haaland.

“I am proud to join our sister agencies in this effort, which will help advance the Administration’s goals of environmental justice by helping historically marginalised communities address the long-lasting effects of legacy pollution.”

Secretary of Energy Jennifer Granholm said the capping of unplugged oil and gas wells is a “win-win” scenario, as it helps rural economies and provides jobs for fossil fuel workers.

“The Department of Energy is proud to take part in this interagency effort … to curb the release of highly polluting methane into the atmosphere from orphaned wells,” she said.