Source: United States Senator Kevin Cramer (R-ND)
BISMARCK, N.D. – U.S. Senator Kevin Cramer (R-ND), member of the Senate Environment and Public Works Committee, announced today the North Dakota Department of Mineral Resources was awarded $25,000,000 to plug and remediate orphaned wells. The money comes from Senator Cramer’s Revive Economic Growth and Reclaim Orphaned Wells (REGROW) Act of 2021, which was included in the bipartisan infrastructure law.
“North Dakota was proactive in dealing with orphaned wells remediation and now, through the bipartisan infrastructure law, more dollars are coming to our state to enhance the program. The REGROW Act provides oilfield job opportunities, cleans up environmental hazards, and brings land back into productive use. While this funding should have been distributed over three months ago I’m pleased to see it happen and will continue to work with Interior and states to ensure our Congressional intent is met,” said Senator Cramer.
Overall, the U.S. Department of the Interior awarded an initial $560 million from the Bipartisan Infrastructure Law to 24 states to begin work to plug, cap, and reclaim orphaned oil and gas wells. This money will help create or retain tens of thousands of jobs for workers in the oil and gas sector to properly clean up and retire abandoned oil and gas wells which currently do not have a party responsible for them.
Background
Senators Cramer and Ben Ray Luján (D-NM) introduced the REGROW Act in April. Through hearings and media opportunities, the senators worked to advance their bill by gaining support from their colleagues in the Senate and House of Representatives and from governors across the country. They secured the bill’s inclusion in the Energy Infrastructure Act, which the Senate Energy and Natural Resources Committee advanced with bipartisan support. The REGROW Act then became part of the Infrastructure Investment and Jobs Act which was signed into law in November 2021.
The REGROW Act provides:
- $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.
Across the country, there are over 92,000 documented abandoned oil and gas wells with no responsible party for cleanup, known as “orphaned” wells. Found mostly on state and private land but also federal and tribal lands, these orphaned wells can leak methane, contaminate groundwater, and create safety risks. Even before the economic repercussions of the COVID-19 pandemic, federal agencies and states responsible for plugging and reclaiming these wells had limited funding for cleanup. During 2020, global energy oversupply combined with decreased demand due to the pandemic caused major job losses in the energy sector.
North Dakota
Orphaned wells, 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 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. Learn more here.
Additional Resources
- Click here for additional quotes supporting the REGROW Act from energy and environmental leaders.
- Click here for a one-page summary of the bill.
- Click here for legislative text.