Interior Department Streamlines Oil Well Cleanup Grants to Boost State Control and Cut Red Tape

US Department of the Interior

WASHINGTON, D.C. — The U.S. Department of the Interior has announced significant updates to its orphaned oil and gas well cleanup programs, aiming to accelerate state-led efforts by reducing bureaucratic hurdles and expanding local discretion.

The revised guidance affects two major federal grant initiatives: the $780 million Orphaned Wells State Matching Grant Program and the $1.93 billion Orphaned Wells State Formula Grant Program. These updates are designed to give states more flexibility in addressing orphaned wells—abandoned sites that pose environmental and safety risks, particularly through methane leakage.

Key changes include eliminating non-statutory requirements, such as mandatory methane measurements before and after well plugging, and removing the Department’s post-award environmental review process. The reforms also reaffirm state authority to determine which wells qualify for remediation.

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“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 policy shift aligns with the Trump administration’s broader agenda to reduce regulatory burdens, strengthen American energy independence, and streamline federal oversight. According to the Department, the move supports job creation, improves public safety, and accelerates environmental remediation in affected communities.

The Department will also assist states in revising current grants to reflect the new guidance, reinforcing its commitment to local leadership in energy and environmental policy.

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