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1 1 (June 15, 2022)

handle is hein.crs/govehom0001 and id is 1 raw text is: Congressional Research Service Informing the Iegitive debate since 1914 June 15, 2022 The Federal Role in Orphan Oil and Gas Well Reclamation Production of oil and gas in the United States began in the late 19th century and continues to contribute to meeting U.S. fuel and petrochemical demands. Over time, federal and state requirements were put in place to manage such aspects of oil and gas development as siting, safety, emissions, and reclamation. Prior to federal and state regulations, many oil and gas wells were orphaned, or left unreclaimed. In many cases, particularly for early oil and gas development, little is known about the status, location, and depth of those wells. Additionally, more recent oil and gas wells, operating subject to federal or state regulation, could become orphaned if a well operator is unwilling or financially unable to complete reclamation of a well site that has ceased production operations. The federal role in reclaiming orphan oil and gas wells has been limited to wells located on federal lands. In the 117th Congress, the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58) expanded the federal role in reclaiming orphan oil and gas wells by increasing funding for the federal reclamation program and establishing a grant program to assist state and tribal orphan well programs. This In Focus discusses the federal and state roles in permitting wells, background of orphan oil and gas wells, potential environmental impacts, and related provisions in the IIJA. Federal and State Roles in Permitting Oil and Gas Wells The scope of regulations that govern oil and gas well operations may vary from one operation to another depending on the applicability of federal, state, or local regulations to specific activities, and the regulatory jurisdiction in which an operation is located. Congress has not authorized nationwide federal requirements for permitting and reclaiming oil and gas wells. Under current law, the federal role for permitting oil and gas wells or reclaiming orphan wells is generally limited to those on federal lands. The Bureau of Land Management (BLM) of the U.S. Department of the Interior (DOI) is the principal permitting agency for oil and gas production operations on federal onshore lands pursuant to the Mineral Leasing Act of 1920, as amended, and certain other authorities. The scope of reclamation of oil and gas wells in the regulations includes plugging and capping the well, as well as reclaiming any equipment and land disturbances at the site resulting from the production operations. On nonfederal lands, a state or tribe would be primarily responsible for permitting oil and gas wells or reclaiming orphan wells within their respective jurisdictions under their own laws, regulations, and programs. Compliance with federal and state regulatory requirements is enforced mostly through permits. Performing oil and gas operations without the requisite permits is unlawful and may be subject to enforcement by federal or state regulators, depending on their respective jurisdictions. There is no singular permit issued at the federal or state level that governs all aspects of an oil and gas operation. Other permits also may be required to ensure compliance with other requirements that govern particular facets of an operation, such as air quality and water quality permits. On federal lands, oil and gas operators are required to provide a surface use plan prior to construction at the site to identify how the site will be disturbed and reclaimed, as part of the permit issued by BLM. Federal requirements for oil and gas well sites may include capping the well, the removal and disposal of equipment and wastes, the regrading and contouring of the site, and revegetation of the well pad and related disturbed lands. As part of a federal permit, BLM requires an operator to provide a bond, or financial assurance, which could be forfeited to BLM to complete the reclamation if the operator does not complete the reclamation requirements. In the event that the bond is not sufficient, the ability of BLM to complete the site reclamation would depend on its federal land management authorities and funding. On nonfederal lands, state or tribal reclamation and bonding requirements may vary or be similar in scope and purpose to federal requirements, depending on their respective laws and regulations. Orphaned Wels Background In general, oil and gas wells may become orphaned under two differing sets of circumstances, depending on whether the well operated prior to federal or state regulation. First, operators of oil and gas wells may have left these sites abandoned or unreclaimed years or decades prior to the development of federal or state permitting and reclamation requirements. Wells that operated prior to regulation sometimes are referred to as legacy wells. As of 2016, the U.S. Environmental Protection Agency (EPA) estimated the total national inventory of orphan oil and gas wells was 3.11 million, but EPA noted other researchers have estimated that the inventory of orphan wells ranged between 2.1 million to 3.0 million at that time. Although EPA has estimated the national inventory of orphan oil and gas wells, the actual number, geographic location, and condition of each well and well site may not be fully understood. Because of the lack of information collected prior to regulation, federal and state agencies have faced challenges in estimating the numbers, locations, and conditions of these legacy orphan wells within their respective jurisdictions. For more recent operations subject to federal or state regulation, an oil and gas well could become orphaned if a well operator does not complete the site reclamation following production operations. In those instances, completing the well site reclamation may become the responsibility of the federal or state regulatory authority

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