In an effort to address tens of thousands of abandoned oil and gas wells statewide, lawmakers in the Oklahoma legislature are considering a bill to increase funds to plug them.
The state uses an excise tax on oil and gas producers to cap the wells with the help of private contractors. House Bill 1370 adjusts the plugging fund with the hope of expanding it from around $2.5 million annually to up to $20 million, said state Sen. Grant Green (R-Wellston), who co-authored the bill with Rep. Brad Boles (R-Marlow).
It now heads to the Senate Appropriations Committee.
The Oklahoma Corporation Commission (OCC), which oversees abandoned wells, reported in January it had at least 20,000 known sites statewide. The wells can leak liquid into nearby water or release methane, a greenhouse gas, into the atmosphere.
“There's been a real concerted effort to clean this state up with shut-ins, abandoned, orphaned, however you want to categorize them, and I just encourage us to keep moving forward,” Green said during the meeting. “And I mean, the number just changes all the time since I've been up here. But one thing that hasn't changed, it's growing. So we need to get a handle on it.”
Although the state keeps an estimate of the wells, it’s impossible for it to have a definitive list because many of the wells are in rural areas, a spokesperson for the OCC told StateImpact earlier this year.
Another bill passed by the committee would keep the Oklahoma Energy Resources Board (OERB) funded through 2031. House Bill 1031 is authored by Rep. Gerrid Kendrix (R-Altus) and Sen. Micheal Bergstrom (R-Adair). That bill is now headed to the Senate floor.
The board restores land around plugged abandoned wells using a 1% voluntary tax on oil and gas producers. According to the OERB, at least 20,000 sites have been cleaned up using the fund. The organization also promotes pro-oil and gas education in Oklahoma classrooms through its “HomeRoom” initiative.
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