Expediting Abandonment: Less Red Tape

H.R. 7053, the Orphan Well Grant Flexibility Act, could accelerate plugging of abandoned oil and gas wells across Pennsylvania and nationally. Removal of methane measurement requirements for grant eligibility would boost well plugging through reductions in pre- and post-plugging burdens.

U.S. Reps. Glenn Thompson and Chris Deluzio, both of Pennsylvania, introduced the bill to amend federal restrictions in Section 349 of the Energy Policy Act of 2005.

Pennsylvania has an estimated 27,000 documented orphaned wells. Nationally, there may be ~120,000 documented orphaned wells and between 310,000 and 800,000 undocumented orphan wells, based on Interstate Oil and Gas Compact Commission (IOGCC) data.

The Orphan Well Grant Flexibility Act legislation is intended to facilitate disbursement of the $4.7 billion allocated for orphaned well cleanup under the 2021 Infrastructure Investment and Jobs Act.

H.R. 7053 Summary: Flex & Analyze

The Orphan Well Grant Flexibility Act of 2024 would amend the Energy Policy Act of 2005 on plugging and remediation of orphaned wells. The bill calls for:

• Flexibility in Methane Emission Measurement: States are not required to measure methane emissions before plugging orphaned wells as a condition for grant eligibility. States may use estimates derived from pre- or post-plugging monitoring data, but this is optional.
• Community Impact: The study must be initiated within 180 days of the bill's enactment – focus on areas with a high number of reclaimed sites to examine economic development, housing trends, and benefits such as water quality

• National Academies Study: Mandates a study by the National Academies (Sciences, Engineering, and Medicine) on community impact of the orphan well grant program.

• Inputs: Input from at least one state in each US region – Northeast, Southwest, West, Southeast, and Midwest

• Consultation: Consultation with HUD to determine how plugging & remediation activities affect economic development and housing trends, and how plugging location data may be valuable to HUD, the IOGCC, or other agencies

• Report: Submission to Congress within 18 months after the last grant awarded under section 349 of Energy Policy Act of 2005

• Funding: Study conducted using existing funds available to Secretary of the Interior

Impact: More Plugging, Better Understanding

Removal of mandatory methane measurement requirement would simplify the grant application process for states, potentially turbocharging the plugging and remediation of orphaned wells. While the National Academies study will evaluate socio-economic impacts and overall costs/benefits of the orphan well grant program, informing future strategies for addressing orphaned wells.

H.R. 7053 strives to balance environmental concerns with the technical practicalities of orphaned well remediation by expediting the grant process and accelerating methane emissions reductions through measurement and reporting flexibility, permitting states to regulate data collection and manage well emissions.

Permanent P&A: Reducing Costs

With state plugging programs in full swing with goals to decommission more wells than ever before it is imperative to ensure wells are plugged efficiently and effectively. While most wells can be plugged at a predictable and relatively low cost, a significant subset of wells require rework that can drag on for months, racking up costs and derailing entire programs. Fortunately, new technology provides a solution to eliminate rework and get back on track.

BioSqueeze provides a proven solution for eliminating annular leaks/gas migration (the most prevalent cause for rework) that is over 4x more effective than the industry standard. With both surface and downhole treatment options and technologies capable of healing a wide range of barrier defects, BioSqueeze delivers efficient remediation to keep plugging on pace.