Bill Overview
Title: Orphaned Well Cleanup and Jobs Act of 2021
Description: This bill establishes incentives and requirements to permanently plug orphaned (i.e., abandoned) oil and gas wells and clean up pollution leaking from such wells. Specifically, the bill directs the Department of the Interior to establish grant programs to plug and clean up orphaned wells located on federal, state, tribal, and private land. Interior must also issue regulations that require each operator of an idled well on federal land to pay an annual, nonrefundable fee for each well. If the operator fails to pay the fee, then Interior may assess a civil penalty. Revenues generated from such fees must be used for activities related to cleaning up orphaned wells. Additionally, the bill requires the review of the adequacy of bonds or other financial arrangements for oil and gas development on public land leased from the federal government. Such bonds or financial arrangements are currently required to ensure developers have adequate financial resources to remediate and reclaim public land, water, or other resources after wells are abandoned or oil and gas development ceases.
Sponsors: Rep. Leger Fernandez, Teresa [D-NM-3]
Target Audience
Population: People impacted by orphaned oil and gas wells
Estimated Size: 3000000
- The primary focus of the bill is to address environmental and safety issues caused by orphaned wells, which are abandoned by previous owners or operators.
- People living near orphaned wells, which can leak pollutants, will likely experience immediate health and environmental improvements.
- The bill supports jobs in the environmental remediation sector, providing employment opportunities for workers involved in well plugging and land reclamation.
- Health benefits will accrue to local populations as the risk of groundwater and soil contamination is reduced.
- Tribal lands are included, meaning Indigenous populations may particularly benefit from the cleanup efforts related to wells on their land.
- Globally, the population will benefit from the reduction of methane emissions, a potent greenhouse gas, which are often released from orphaned wells.
Reasoning
- The population benefiting from the policy mostly includes those living in proximity to orphaned wells, where potential leakage of pollutants could adversely affect air, water, and soil quality. These issues can have direct health implications.
- The policy will likely result in a moderate increase in employment within the environmental restoration and oil well plugging sectors.
- Economic benefits could follow from improved land and environmental quality, potentially increasing property values and quality of life.
- Low-income communities are disproportionately affected by proximity to orphaned wells, hence policy implementation may offer significant improvements to their well-being.
Simulated Interviews
Rancher (West Texas)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 7/20
Statement of Opinion:
- These old wells have been a thorn in our side for years. If they actually clean them up, it'll be a lot safer for everyone around here.
- I'm hopeful this will improve the land's productivity.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 9 | 5 |
Environmental Scientist (California)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- This is a positive step; it'll create more work for us and help the environment.
- I'm eager to see substantial action being taken on the ground.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Unemployed Oilfield Worker (Pennsylvania)
Age: 52 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- If this creates jobs to plug those wells, I'll finally have some hope of getting back to work.
- The environment could really benefit around here.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Tribal Land Management Specialist (North Dakota)
Age: 27 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- Finally, there's potential that the old abandoned wells on our lands will be addressed.
- Increased federal support can help us significantly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 6 |
Retired (Oklahoma)
Age: 60 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- I worry about what those wells are leaking into the ground.
- Hopefully, the policy will bring peace of mind about health risks.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Community Organizer (Colorado)
Age: 41 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- This policy is a win for activism and the environment.
- It could be a major boost for communities who've been neglected.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Regulatory Affairs Consultant (Texas)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 2/20
Statement of Opinion:
- These regulations could make the industry more accountable, which is needed.
- There will be upfront financial costs, but it addresses future liabilities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
PhD Student in Environmental Engineering (New Mexico)
Age: 29 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- The direct handling of these wells will bring real data to my research.
- It's reassuring to see actionable policy; this could inspire further work.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Nurse (Ohio)
Age: 38 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- Health impacts are always a concern with these wells.
- Hopefully, this policy leads to better community health outcomes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Oil & Gas Industry Analyst (Alaska)
Age: 47 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 2/20
Statement of Opinion:
- Economically, this policy will shift job dynamics in the industry.
- There's potential for positive environmental and employment outcomes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Cost Estimates
Year 1: $1000000000 (Low: $900000000, High: $1200000000)
Year 2: $1100000000 (Low: $1000000000, High: $1300000000)
Year 3: $1200000000 (Low: $1100000000, High: $1400000000)
Year 5: $1300000000 (Low: $1200000000, High: $1500000000)
Year 10: $1500000000 (Low: $1400000000, High: $1700000000)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The number of orphaned wells is vast, requiring substantial resources for effective cleanup.
- Regulations and enforcement need robust implementation to ensure continued funding and compliance from oil and gas operators.
- Implementing the cleanup on diverse types of land presents varying challenges and jurisdictional issues.
- Balancing the environmental benefits with governmental costs presents a challenge for long-term policy sustainability.