Oklahoma may receive up to $102 million in federal funding to address abandoned oil and gas wells, according to the Oklahoma Corporation Commission (OCC). The agency was previously uncertain whether it would receive more dollars from the IIJA to clean up its more than 20,000 abandoned wells.
The anticipated grant money comes with revised guidelines from the U.S. Department of the Interior meant to deregulate and accelerate well plugging.
On July 17, the department announced states are no longer required to measure methane leakage before and after plugging. It also removed review requirements related to the Endangered Species Act and the National Historic Preservation Act.
“Eliminating the non-statutory requirement for a burdensome process created by the previous Administration reflects Secretary Burgum’s priority to de-regulate and cut red tape, thus reducing the post-award burden on grant recipients, accelerating well plugging activities, and supporting the Department’s efforts to unleash American energy,” a document related to the announcement reads.
Abandoned oil and gas wells are known to emit methane, a greenhouse gas, into the atmosphere. States awarded with federal orphan well money were instructed to hire experts to complete methane measurement requirements using a portion of the awarded money.
“The previous guidelines imposed unnecessary administrative burdens and diverted critical resources away from the core mission of plugging abandoned wells," Kim David, Corporation Commission chairman, said on July 17.
A spokesperson for the Interior said the OCC is eligible for additional IIJA funding but could not comment on the status of the award.
The revised guidelines remove protections for animals and plants classified as endangered or threatened around plugging sites. The American burying beetle, red-cockaded woodpecker and several bat species are among the federally protected wildlife in Oklahoma.
The Corporation Commission received an initial payment of $25 million from the grant in 2022 and used it to plug 1,124 wells.
A former spokesperson for the OCC told StateImpact earlier this year that the number of abandoned wells is likely higher than their estimates, since many drilled decades ago are out of sight and lack documentation.
The timeline for the next round of federal funds is unclear, though the commission is “encouraged” the money will be released soon because of the new Interior guidance, according to spokesperson Trey Davis.
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