Program Background

Under the Inflation Reduction Act’s Methane Emissions Reduction Program (MERP), the Texas Commission on Environmental Quality (TCEQ) was awarded $134.1 million as part of nationwide funding incentives for oil and gas operators to reduce methane emissions from marginal conventional wells.

Using this funding, TCEQ is currently finalizing two critical plans:

• Well Prioritization – to prioritize wells for plugging
• Methane Measurement – verifies methane emission are verified before and after plugging

The TxMCW program is currently being developed, and the release of guidelines and detailed information on plugging support and funding opportunities is anticipated in January 2025.

Qualifying Wells

A qualifying well must be a marginal conventional well (MCW), defined as an onshore conventional well with a calendar-year production volume equal to or less than:

• 15 barrels of oil equivalent (BOE) per day OR

• 90 thousand cubic feet (Mcf) gas per day

For calculating qualifying equivalency, 1 BOE = 6 Mcf.

Owners and operators of qualifying MCWs in Texas may apply to receive financial assistance to plug and abandon selected wells.

Well Prioritization Plan

TCEQ’s Well Prioritization Plan lays out the TxMCW selection criteria for plugging prioritization:

• Potential MCW emissions
• Proximity to disadvantaged communities
• Potential human health and environmental impacts
• Location of MCW on Tribal lands

Methane Measurement Plan

TCEQ's Methane Measurement Plan details the framework for performing detection and measurement of MCW methane emissions, both before and after well plugging activities. All wells selected for funding in the TxMCW program are required to provide methane detection records: the plan is based on DOE's Methane Measurement Guidelines for MCWs.

Program Goals

TxMCW program goals, as presented in the October 2024 agenda for gathering feedback on the program:

• Assisting operators in identifying and permanently plugging MCWs to curtail emissions –methane (CH4), volatile organic compounds (VOCs), Hazardous Air Pollutants (HAPs) including benzene, toluene, ethylbenzene, and xylene (BTEX), hydrogen sulfide (H2S)
• Measuring MCW methane emissions pre- and post-P&A
• Supporting environmental restoration to comply with state/federal P&A standards and regulations

From Sea to Shining Sea

Nationally, a total of $350M in EPA, DOE, and NETL funding was awarded to 14 states to support significant reductions in MCW methane emissions. State agencies received conditional funding based on a state’s proportion of the “total number of low-producing conventional wells in participating states on nonfederal lands.”

• Texas (TCEQ) $134.1M
• Pennsylvania (DEP) $44.5M
• West Virginia (DEP) $37.8M
• California (SLC) $21.9M
• Ohio (DNR) $19.9M
• Illinois (DNR) $17.4M
• Louisiana (DNR) $15.7M
• New Mexico (EMNRD) $14.6M
• Kentucky (EEC) $12.9M
• Colorado (DNR) $12.6M
• New York (NYSDEC) $8.1M
• Michigan (EGLE) $5.0M
• Utah (DEQ) $2.7M
• Virginia (DOE) $2.6M

As part of the MERP, EPA and DOE will provide technical assistance to states, industry, and other partners in implementing cost-effective MCW monitoring and methane emissions reductions.

Rigless Methane Mitigation

For operators looking to reduce emissions at the wellhead, BioSqueeze provides the most effective and economical solution for eliminating annular pressure and gas migration. Utilizing DPAS™ we are able to treat leaks riglessly, healing cement +800’ from the point of injection at surface.