Orphaned Well Cleanup and Jobs Act of 2021

Orphaned Well Cleanup and Jobs Act of 2021

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.