U.S. plans to allocate $775 million for orphaned well cleanup

(WO) — The Department of the Interior has issued final guidance for states on applying for the first $775 million in grant funding available this year to address orphaned oil and gas wells under President Biden’s Bipartisan Infrastructure Law.

The total funding allocated for this program amounts to $4.7 billion, aimed at mitigating environmental and safety hazards, generating good-paying union jobs, and reducing harmful methane emissions.

Orphaned wells, which are scattered across the country, pose risks to public health and the environment, affecting areas from backyards to recreational spaces.

“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 rural, Tribal and underrepresented communities,” said Secretary Deb Haaland. “The Department is acting with urgency to address the more than 100,000 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.”

The newly released guidance outlines how states can apply for initial grants of up to $25 million each. It includes details on ensuring that funded activities create jobs, protect the environment, invest in disadvantaged communities, and maintain transparency and accountability.

Additional guidance on formula and performance grants will be provided later, incorporating feedback received on the draft initial grants guidance.