Source: United States Senator Kevin Cramer (R-ND)
WASHINGTON – U.S. Senators Kevin Cramer (R-ND) and Ben Ray Luján (D-NM) today highlighted the support they have received from governors for their bipartisan Revive Economic Growth and Reclaim Orphaned Wells (REGROW) Act of 2021 to clean up orphaned oil and gas wells.
“We are grateful our commonsense proposal is gaining support and hope that momentum continues,” said Senator Cramer. “As thousands of oilfield workers remain unemployed, over 56,000 oil and gas wells have been abandoned and need to be cleaned up so the land can once again be productive and environmental hazards can be avoided. The REGROW Act would address these problems by providing states, tribes, and federal agencies the resources they need to properly plug the orphaned wells. It’s a win for workers, landowners, and the environment.”
“Communities in New Mexico and all across the country are suffering from harmful methane emissions that are released by thousands of orphaned oil and gas wells,” said Senator Luján. “By passing this bipartisan legislation, Congress can help states create opportunities for oil and gas workers to get back to work while slashing harmful methane emissions. I’m thrilled that governors, including New Mexico’s Michelle Lujan Grisham, are getting behind this legislation. I’m optimistic that Chairman Manchin and Ranking Member Barrasso will work with these governors, advocates, and members of both parties to consider this effort to protect our environment and to provide Americans with good-paying jobs.”
The Western Governors Association and Interstate Oil and Gas Compact Commission (IOGCC) voiced their support for the REGROW Act and urged Senate Energy and Natural Resources Committee Chairman Joe Manchin and Ranking Member John Barrasso to back the legislation.
“Western Governors write to communicate our support for legislation to support states’ cleanup activities on abandoned and orphaned oil and gas wells and associated sites,” wrote the Western Governors Association. “Many western states are currently engaged in oil and gas well plugging and remediation activities, and this work could be significantly accelerated with federal assistance.”
“A healthy influx of well plugging projects will provide job opportunities for tens of thousands of these workers while fast-tracking environmental restoration across the country,” wrote IOGCC Member-State Governors. “This legislation supports state programs by providing an infusion of funds to plug orphaned wells and accelerate the associated environmental benefits.”
Read the letter from the Western Governors Association here and the letter from the IOGCC here.
Senators Cramer and Luján introduced the REGROW Act in April, with Representative Kelly Armstrong (R-ND) and Lizzie Fletcher (D-TX)introducing its House companion in June. If passed, the bill would provide:
- $4.275 billion for orphaned well cleanup on state and private lands;
- $400 million for orphaned well cleanup on public and tribal lands;
- $32 million for related research, development, and implementation.
It would also direct $250 million to the Interior Department to clean up orphaned wells on public lands and create a $150 million grant program within the Bureau of Indian Affairs to help tribes clean up orphaned wells.
The bill would follow North Dakota’s leadership on the issue of orphaned wells which, according to the Department of Mineral Resources, “historically have not been an issue in North Dakota” until the economic downturn caused by COVID-19, along the oil price war between Russia and Saudi Arabia last summer. In response, North Dakota’s Emergency Commission and legislative Budget Section approved authorized $66 million in CARES Act funds to plug and reclaim orphaned assets in the state. This helped put hundreds of employees back to work and returned land back to its original use. When the REGROW Act was introduced, North Dakota energy leaders offered their support for the bill and thanked Senator Cramer for his work in introducing it.