U.S. House Agriculture Chairman Glenn “GT” Thompson (R-PA) on Friday applauded action by the U.S. Department of the Interior (DOI) to update its guidelines for federal program grants to clean up and plug abandoned oil and gas wells.
“Pennsylvania’s oil and gas sites ushered in the modern petroleum industry, which helped lead the United States to become a global power and energy producer,” Thompson said. “Now, we must ensure these sites are properly and safely restored and I am looking forward to working with my House colleagues and the administration to plug more wells and protect more communities.”
According to the Pennsylvania Department of Environmental Protection, there are 27,230 documented abandoned and orphan oil and gas wells across the commonwealth.
“These wells, either unplugged or improperly plugged, can pose serious environmental threats to surrounding communities, such as water contamination, methane emission, and introducing pollutants to the local ecosystem,” said Thompson. “Unfortunately, the regulatory burdens placed on states has been preventing them from taking swift action to plug orphaned wells and ultimately protect their communities.”
That will change under the July 17 updated grant guidelines for states seeking federal funding to clean up and plug abandoned oil and gas wells, the congressman added.
Specifically, the revised DOI guidance updates two federal grant programs: the $780-million Orphaned Wells State Matching Grant Program and the $1.93-billion Orphaned Wells State Formula Grant Program.
“States know their land and their needs best,” said Acting Assistant Secretary of Policy, Management and Budget Tyler Hassen. “By cutting unnecessary barriers, we’re helping them clean up old wells faster, protect communities, and support energy development.”
Hassen said the revised guidance is meant to cut red tape and help states act faster by eliminating non-statutory requirements and reducing burdens on state grant recipients.
For example, the guidance removes the requirement that states conduct pre- and post- plugging methane measurement, and recognizes the discretion states have in identifying and plugging orphaned wells.
The updated guidance also eliminates the DOI’s post-award, environmental review and approval process, according to the department.
“By allowing states to use their own discretion in identifying and plugging orphaned wells,” Thompson said, “the department is optimizing its resources and delivering on President Trump’s promise to reduce federal overregulation and unleash American energy.”
Across America, orphaned wells are found in rural, urban, and agricultural areas. Circumstances such as bankruptcy and economic downturns often lead to orphaned wells, which may leak methane, harm public health, and interfere with new energy development, said the DOI.
“These changes make it easier for states to get to work,” said Eva Vrana, DOI’s deputy assistant secretary for policy and environmental management. “States can move more quickly to plug wells and reduce environmental risks.”
The department also said it will work with states to update existing grants under the new guidelines.