RRC Showcases Speedy Work Utilizing Federal Funds for Multiple Environmental Protection Projects

The U.S Secretary of the Interior Deb Haaland and members of the Houston Congressional delegation got a first-hand look at the agency’s substantial work and expertise in plugging orphaned oil and gas wells during a visit with RRC staff in Houston.

The Commission intervenes to plug wells when an operator has gone out of business, and collects on the operator’s financial assurance, then seeks reimbursement through legal proceedings. Most operators fulfill their obligations and responsibly plug their wells to prevent leaks and protect the environment after a well has stopped production. 88% of wells plugged were plugged by operators in 2022.

Texas was the first state in the country to begin plugging orphaned oil and gas wells using an initial grant from the federal Infrastructure Investment and Jobs Act last October. The federal grant has been used to plug over 500 wells thus far.

The federal funds supplement the RRC’s annual well plugging through the State Managed Plugging Program.

The commission has submitted comments on draft guidance for formula grants that was issued by the Department of the Interior. Since the next set of federal well plugging funds will come from these grants, the RRC is concerned the draft requirements place administrative burdens that surpass the legislation that authorizes funding. There’s also concern about a proposed phased approach to releasing formula funds, as opposed to releasing the total amount at one time.

“Among all oil and gas producing states, we’re a leader in addressing orphan wells, and the Legislature has passed several measures to create incentives to reduce orphan wells in Texas,” said Wei Wang, RRC Executive Director. “We’ve built great momentum using federal funds to plug wells, and we urged Secretary Haaland to help us keep the momentum. Less than two percent of oil and gas wells in the state are orphaned, and getting the formula funds quickly will help us proceed without unnecessary interruptions.”

In the meeting staff also highlighted yet another first-in-the-nation project using other federal grants from the Department of the Interior. RRC’s Abandoned Mine Land Program received funds from the Investment and Jobs Act and completed a reclamation project in Bastrop, making it the first project in the nation completed with those funds.

The agency’s comments on the draft formula grant guidance for orphaned well plugging can be found on the RRC website.