Well-Plugging Programs Continue Progress

In 2024, well plugging reached new heights in terms of both funding and numbers of wells plugged. And despite uncertainty about federal funding and oversight, 2025 could be another productive year. A report to Congress by the Orphan Wells Program Office showed that more than $1 billion in funding had been distributed to states, Tribal governments and federal programs in the Department of the Interior and Department of Agriculture during the fiscal year. The report also identified more than 9,600 wells that have been plugged throughout the country, reducing annual methane emissions by around 155,000 metric tons.

The Federal Orphaned Wells Program Office distributed funding to the U.S. Forest Service, Bureau of Land Management, National Parks Service, Bureau of Safety and Environmental Enforcement, and Fish and Wildlife Service. These agencies plugged nearly 200 wells on federal lands, including national parks and wildlife refuges during fiscal year 2024.

While federal plugging efforts made progress, the largest gains have been from state orphaned well programs. One of the biggest successes has been Kansas, which has plugged almost all of the state’s 2,553 identified orphan wells since 2023. In mid March, Pennsylvania plugged its 300th well since 2023 and has an additional 14 wells slated for plugging later this year. As of March 2025, Oklahoma has plugged more than 40 wells while Utah has plugged 64. Texas is also continuing its streak of success with about 650 wells plugged using state funds as of March 1 and 64 plugged with Phase 1 Formula Grant money in fiscal year 2025. Texas also hit a milestone with the U.S. Department of the Interior Office of the Inspector General finding that the state’s orphan well program met all goals and requirements for expending its Initial Grant funds.

Future in Flux: Uncertainty Over Funding and Implementation

The Infrastructure Investment and Jobs Act of 2021 provides more than $4.6 billion for plugging, remediation and restoration, with nearly $4.3 billion of that earmarked for state well plugging programs. State orphaned well programs received grants totaling more than $1 billion between October 2023 and the end of November 2024. This included $565 million in Initial Grants and a Phase 1 Formula Grant of $79.67 million being awarded to Texas in early 2024. Under the IIJA, states are eligible for additional Formula Grant and Performance Grant funding.

In the last days of the Biden administration, DOI delivered millions of dollars to orphan well programs and released updated guidance for accessing funds and applying for grants. However, since the start of the Trump administration in January 2025, federal funding for orphan wells has been uncertain. Early executive orders from the Trump administration led to confusion and uncertainty. Executive order 14154, titled Unleashing American Energy, called for a review of agency actions that could burden energy development. The order set a 90-day deadline for reviewing programs. At the same time, DOI removed mentions of the orphan well grants from their website.

The orders prompted legal challenges by several states and federal judges in February. More recently, a group of members of the U.S. House of Representatives sent a letter to Interior Secretary Doug Burgum requesting clarification on orphan well programs and a restart of grant disbursement. The pause and uncertainty has affected state orphan well programs that have made use of grant funds and caused work to stop, potentially slowing progress.

What Lies Ahead: Doing More with Less

Federal funding and oversight for orphan wells will likely be a battleground in the near future. Grant funding has helped drive rapid plugging success over the past few years, so states may need to come up with other means to fund their efforts.

Once the dust settles around federal funding and rules around orphan wells there will still be miles to go before the country’s orphan well problem can be considered solved. While Kansas has plugged almost all of its orphan wells, other states have many thousands remaining and the number of wells could grow as crews find undocumented wells.

Plugging these wells will take a tremendous amount of money. For example, the Oklahoma Corporation Commission estimates it would take more than $574 million to plug remaining wells in the state. Bond payments and taxes on oil and gas production, including a so-called Environmental Liability Tax are possible sources of additional revenue. States may need to start implementing taxes and fees and update bonding rules to increase funding for orphan well programs. However, states will need to consider how such changes would affect smaller producers as too great of a burden could lead to bankruptcies and increase the number of wells the state is responsible for.

Regardless of where funding comes from, plugging orphan wells remains expensive and often difficult. As efforts to address orphan wells continues, orphan well programs, oil and gas producers, and plugging companies will want to find more effective and less costly methods. Wells with unwanted gas and/or fluid migration are often some of the most expensive to decommission and can drive up per-well plugging costs with just a few failed remediation attempts. Our Deep Penetrating Annular Surface (DPAS™) BioSqueeze^® is a rigless solution to restore barrier integrity and eliminate fluid/gas migration without expensive downhole interventions, expediting abandonment and keeping costs low.