Reps. Thompson, Carbajal introduce POWER Act

U.S. Reps. Glenn “GT” Thompson (R-PA) and Salud Carbajal (D-CA) introduced legislation last week to reclaim and restore orphaned wells.

Under the Energy Policy Act, the Plugging Orphan Wells and Environmental Restoration (POWER) Act reauthorizes the federal orphan well remediation program for five years at the cost of $50 million per year. It also provides $400 million per year for five years for environmental restoration and reclamation of orphaned wells on state, private and tribal lands.

“Nationally, there are an estimated 560,000 orphaned wells and more than 8,700 in Pennsylvania,” Thompson said. “The Commonwealth’s oil and gas sites ushered in the modern petroleum industry, which led the United States to become a global power and today, energy independent. The POWER Act will help accelerate environmental restoration while providing an economic benefit throughout oil and gas producing regions. This is good policy for both the environment and jobs in Pennsylvania.”

The legislation is supported by the Pennsylvania Grade Crude Coalition and the American Petroleum Institute (API).

“This is the right bill at the right time. The plugging of orphaned wells is a win for the environment, and it helps get displaced workers back on the job,” said David Clark, President of the Pennsylvania Grade Crude Coalition. “The timing could not be better. This legislation will save jobs while also protecting the environment through plugging this ancient classification of wells that time has forgotten. The plugging of the wells will reduce the potential of pollution of surface and subsurface waters as well as reduce fugitive methane emissions.”

API said the bill would improve environmental protection and safety.

“Safety and environmental protection are top priorities for our industry, and we operate under strict standards and practices to ensure that American energy is produced responsibly from start to finish,” Frank Macchiarola, API SVP of Policy, Economics and Regulatory Affairs, said. “Our industry is fully committed to complying with state and federal requirements for abandoned wells and reclaiming wells sites. We will continue to support new efforts like the POWER Act, which aims to help address orphaned wells, which will build upon our industry’s progress to reduce methane emissions from operations.”