U.S. Interior Updates Guidelines to Accelerate Plugging of Orphaned Oil and Gas Wells

The U.S. Interior Department on July 17 announced that it has revised its procedures for states applying to federal programs intended at cleaning up abandoned oil and gas wells. The updated guidance modifies two grant programs—the $1.93 billion Orphaned Wells State Formula Grant Program and $780 million Orphaned Wells State Matching Grant Program. The revisions aim to streamline processes and enable states to respond more quickly.

The updated guidance removes non-statutory requirements and eases the administrative burden on state grant recipients. Some of the key changes include: eliminating the mandate for states to conduct methane measurements before and after well plugging, affirming states’ discretion in recognizing and plugging orphaned wells and removing the department’s redundant post-award environmental assessment and approval procedure.

Orphaned wells have the potential to negatively impact public health and safety by polluting groundwater and drinking water sources, leaking toxic chemicals, emitting dangerous pollutants, and damaging wildlife. Methane, a key driver of climate change, is more than 25 times as potent as carbon dioxide at trapping heat in the atmosphere.

The revised guidance aligns with the Trump administration’s priorities to enhance U.S. energy independence and reduce regulatory burdens. By increasing state flexibility and accelerating well-plugging initiatives, the department is assisting in furthering the administration’s objectives of expanding U.S. energy development, safeguarding jobs, and limiting federal overreach.

The orphaned wells program is a key component of a wider initiative to strengthen domestic energy production, safeguard the environment, and eliminate unnecessary regulations. The department will collaborate with states to revise existing grants in accordance with the updated  guidelines.