U.S. House Panel Divided Over Proposed Regulation of Abandoned Gas and Oil Wells


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Nicole Welle | April 19, 2021

Members of the Energy and Mineral Resources Subcommittee agreed to cap abandoned gas and oil wells, but the two parties disagreed on the federal government’s role in regulating the project.

The U.S. House subcommittee met last week to discuss a bill that would authorize $8 billion over 10 years to clean up gas and oil wells abandoned by defunct companies. The bill falls under President Biden’s new infrastructure and jobs plan, and it aims to reduce greenhouse gas emissions while creating jobs for oil and gas workers displaced by the transition to renewable energy, according to an Iowa Capital Dispatch article.

While subcommittee members agreed on the need to clean up the wells, Republican leaders took issue with a section of the bill that would require states to increase regulations to receive federal funding. The provision would increase bond rates for gas and oil companies to help cover cleanup costs if they were to go bankrupt.

Rep. Pete Stauber of Minnesota, the subcommittee’s ranking Republican, called the provision “another attempt at destroying the industry.” However, conservationists believe it would protect wells from being abandoned in the future and reduce the number of wells emitting harmful pollutants.

“Even after society transitions away from fossil fuels, abandoned and orphan wells may be emitting methane and impacting our water, air and ecosystem for many years, decades and possibly centuries,” said Mary Kang, an assistant professor of civil engineering at McGill University.