As the legal landscape shifts to address climate change, new legal frameworks are coming into existence. Last year, the Department of Interior (DOI) revised an estimate which showed a significant increase in the number of orphaned or abandoned wells throughout the United States, documenting 130,000 – up from less than half its previous count.
The bipartisan 2021 Infrastructure Investment and Jobs Act (IIJA) has since taken substantial steps towards rectifying this issue. The Act contains the largest investment to this date to tackle the problem, earmarking $4.7 billion specifically to plug orphaned wells. The funds will also be utilized to cap associated methane emissions, an implication of the continued existence of these wells that poses its own environmental hazards.
This funding is not only a significant move towards mitigating climate change, but also underscores the increased scrutiny faced by the oil and gas industry to meet stringent government regulations and adhere to environmentally conscious practices.
More detailed information regarding this new federal funding and the legal implications for those in the industry can be found in the article linked here.