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Across the U.S., federal and state-funded programs are addressing orphan wells and marginal conventional wells (MCWs) that pose risks to land, water, groundwater and air quality. Estimates suggest there are as many as three million orphaned and undocumented wells nationwide, and nearly a million MCWs. Orphan wells are abandoned wells that can have histories that date back many decades. MCWs can also be older wells but they are owned and operated. MCWs may be underperforming wells that are idle or wells that simply produce very low volumes of oil and gas.

Plugging orphan and MCWs is one aspect of the overall closure process of well locations. Effective remediation requires comprehensive site evaluation, a detailed closure plan and post-restoration monitoring to ensure long-term stability.

The Risks of Leaving Wells Unplugged

When left unaddressed, orphan wells and certain MCWs can create environmental, operation and safety risks:

• Surface Leaks & Groundwater Contamination – Without a reliable seal, gas and fluids can migrate into groundwater-producing zones and affect drinking water. Fluids and gas can migrate to the surface and affect the soil and ground surface.
• Structural Failure & Site Instability – Many old wells have deteriorated, with casing integrity issues, in addition to inadequate plugging materials or the absence of plugging materials. As materials degrade, casing failures can lead to unintended interactions with other producing formations including those containing groundwater and those containing oil and gas.
• Impact on Future Production and Development – Unmapped and improperly plugged wells can interfere with new and existing energy production. Before drilling, companies must often locate and address orphan wells to avoid costly delays, regulatory challenges and operational disruptions. These wells also interfere with potential land development projects.

Beyond environmental and safety concerns, failing to remediate orphan and deserving MCWs carries significant financial risks. Unplugged well sites [generally] represent unproductive land areas for landowners and developers and liabilities for states with respect to methane and other harmful gas emissions, impacts to groundwater, surface water, the land, biological receptors and historic sites. In contrast, sustained investment in well closure generates economic benefits, including job creation, industry stability, environmental benefits and reduced impacts on existing oil and gas-producing formations.

Well Program Sustainability

Without a broader strategy that includes sustained federal and state funding support, wells will not get the attention they need soon enough. The oil and gas well grant programs of the Infrastructure Investment and Jobs Act/Bipartisan Infrastructure Law (IIJA/BIL) and the Inflation Reduction Act (IRA) have provided additional funding to states that are typically underfunded for this work. With this additional funding, state oil and gas programs have been uplifted, hundreds of well sites have been closed and private sector jobs have been expanded to meet the demand. However, the lasting success of these programs depends on sustained existing funding and expanded funding, in addition to workforce investment and policies that support these programs.

A well closure program is only as effective as its long-term strategy. With continued commitment from policymakers and industry leaders, orphan well and MCW programs can turn liabilities into assets — protecting our natural resources and supporting future development opportunities.

 

Learn more about Atlas’ orphan, idle, abandoned and marginal well program management.