The Department of the Interior has updated its guidelines for states applying to federal programs aimed at cleaning up abandoned oil and gas wells. The revised guidance updates two federal grant programs, the $780 million Orphaned Wells State Matching Grant Program and the $1.93 billion Orphaned Wells State Formula Grant Program. The changes are meant to cut red tape and help states act faster.
The revised guidance eliminates non-statutory requirements and reduces burdens on State grant recipients. This includes:
- Removing the requirement that States conduct pre- and post- plugging methane measurement.
- Recognizing the discretion States have in identifying and plugging orphaned wells.
- Eliminating the Department's unnecessary post-award, environmental review and approval process.
"States know their land and their needs best," said Acting Assistant Secretary of Policy, Management and Budget Tyler Hassen. "By cutting unnecessary barriers, we're helping them clean up old wells faster, protect communities and support energy development."
The updated guidance supports the Trump administration's initiatives to prioritize strengthening American energy independence, cut burdensome regulations and restore common-sense governance. By giving states more flexibility and speeding up well-plugging efforts, the Department is helping advance the administration's goal of unleashing U.S. energy resources, protecting American jobs and reducing federal overreach.
Orphaned wells are found in rural, urban and agricultural areas across the country. Circumstances such as bankruptcy and economic downturns often lead to orphaned wells. They can leak methane, harm public health and interfere with new energy development.
"These changes make it easier for states to get to work," said Eva Vrana, Deputy Assistant Secretary for Policy and Environmental Management. "States can move more quickly to plug wells and reduce environmental risks."
The Department will also work with states to update existing grants under the new guidelines. The orphaned wells program is part of a broader effort to support domestic energy, protect the environment and cut unnecessary regulations.
