Oklahoma will receive about $78 million out of more than $1.1 billion President Biden says will be used to clean up abandoned oil and gas wells nationwide—wells that are a source of methane emissions.
Under the plan to be implemented by the Interior Department, Oklahoma’s share in the first phase would $78,168,000 but the amount could grow in later phases to $230,227,000. Oklahoma is one of 26 states that will be eligible for the cleanup funds.
Oklahoma Wells Drilled 2021
In announcing the program, the White House stated, “Plugging these wells will not only reduce methane emissions and stop dangerous pollution, but it will create good-paying, union jobs and spur economic revitalization, especially in hard-hit energy communities.”
“President Biden’s Bipartisan Infrastructure Law is enabling us to confront the legacy pollution and long-standing environmental injustices that for too long have plagued underrepresented communities,” said Interior Secretary Deb Haaland. “We must act with urgency to address the more than one hundred thousand documented orphaned wells across the country and leave no community behind. This is good for our climate, for the health of our communities, and for American workers.”
Nearly every state with documented orphaned wells submitted a Notice of Intent (NOI) indicating interest in applying for a formula grant to fund the proper closure and cleanup of orphaned wells and well sites.
The allocations for Oklahoma and the other 26 states were determined using the data provided by states from the NOIs and equally considers the following factors required by the Bipartisan Infrastructure Law: job losses in each state from March 2020 through November 2021; the number of documented orphaned oil and gas wells in each state; and the estimated cost of cleaning up orphaned wells in each state.
The funding announced this week will be available to states to identify and plug orphaned wells, remediate and reclaim lands impacted by oil and gas development activities, and remove infrastructure associated with the wells. The 26 states eligible for this funding collectively represent nearly every state with documented orphan wells in the country.
Below are some of the oil and gas producing states that will receiving funding.
| ate | Initial Grant Eligibility | Phase One Formula Eligibility | Total Phase One Eligibility | Estimated Total Formula Funding + Initial Grant Eligibility* |
|---|---|---|---|---|
| Arkansas | $25,000,000 | $1,448,000 | $26,448,000 | $30,590,000 |
| Colorado | $25,000,000 | $14,006,000 | $39,006,000 | $79,065,000 |
| Kansas | $25,000,000 | $8,722,000 | $33,722,000 | $58,667,000 |
| Louisiana | $25,000,000 | $22,396,000 | $47,396,000 | $111,450,000 |
| Missouri | $25,000,000 | $6,975,000 | $31,975,000 | $51,925,000 |
| New Mexico | $25,000,000 | $18,720,000 | $43,720,000 | $97,260,000 |
| North Dakota | $25,000,000 | $14,318,000 | $39,318,000 | $80,266,000 |
| Oklahoma | $25,000,000 | $53,168,000 | $78,168,000 | $230,227,000 |
| Texas | $25,000,000 | $82,563,000 | $107,563,000 | $343,695,000 |
| Wyoming | $25,000,000 | $10,539,000 | $35,539,000 | $65,681,000 |
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