WASHINGTON, D.C. — The Department of the Interior has issued updated guidance for its State Orphaned Wells Grant Program, affecting how states access and manage billions of dollars in federal funding used to plug abandoned oil and gas wells that pose environmental and public safety risks.
The new Phase 3 guidance applies to a program overseeing approximately $4.2 billion in grants and is intended to strengthen oversight, accountability and performance requirements for participating states while allowing continued cleanup of orphaned wells on state and private lands.
Interior officials said the revised guidance is designed to improve monitoring of grant recipients and reduce the risk of fraud, waste and abuse in the administration of federal funds.
“The Phase 3 State Formula Grant Guidance improves oversight and accountability to ensure grant recipients meet performance goals, and decrease risk of fraud, waste and abuse,” Acting Assistant Secretary for Policy, Management and Budget Troy Finnegan said.
The Orphaned Wells Program Office manages funding used to plug abandoned wells that can release methane, contaminate groundwater and create safety hazards near residential areas and active energy production sites.
According to the department, the updated guidance also provides states with access to additional resources as cleanup efforts continue.
“The new guidance unlocks additional resources for states to build on their current successes,” Deputy Assistant Secretary for Policy and Environmental Management Eva Vrana said. “It means states can continue successfully plugging orphaned wells while strengthening energy infrastructure and reducing environmental risks.”
Orphaned wells are oil and gas wells that no longer have a responsible operator. Federal officials have identified them as a source of methane emissions, groundwater contamination and physical hazards in energy-producing regions.
The department said it will continue coordinating with states, Tribal governments and federal agencies to ensure remediation projects meet environmental, safety and fiscal accountability requirements.
The updated guidance is part of the federal government’s broader effort to address the nation’s inventory of abandoned oil and gas wells while supporting energy-producing communities and related employment.
More information about the program is available at www.doi.gov/orphanedwells.
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