Louisiana to receive up to $111M to create jobs to clean up orphaned oil and gas wells
The U.S. Department of the Interior (USDOI) today announced the first round of funding in a $4.7 billion initiative to clean up orphaned oil and gas wells across America and Louisiana is eventually set to receive up to $47.3 million in the deal.
WASHINGTON (KLFY) -- The U.S. Department of the Interior (USDOI) today announced the first round of funding in a $4.7 billion initiative to clean up orphaned oil and gas wells across America, and Louisiana is eventually set to receive up to $111.4 million in the deal.
The funding, available in phases, will start with just over $47 million in the first phase, with Sen. Bill Cassidy announcing a total of $111.4 million through the life of the program.
The USDOI said the first $1.15 billion in grant funding is now available to create jobs to clean up orphaned wells as part of the Bipartisan Infrastructure Law. The USDOI reports that millions of Americans across the country live within a mile of an orphaned oil and/or gas well. According to NOLA.com, there are currently an estimated 4,605 orphan wells in Louisiana that have yet to be plugged and restored.
“I’ve heard from communities across Louisiana about the environmental and safety hazards of orphan wells,” said Cassidy. “This funding from the Bipartisan Infrastructure Package will create jobs, help state officials address these wells and make Louisiana a cleaner place to live. In addition, the land around these wells can be repurposed and lead to an economic boost.”
"Orphaned wells are polluting backyards, recreation areas, and public spaces across the country," stated USDOI officials in a press release. "The historic investments to clean up these hazardous sites will create good-paying, union jobs, catalyze economic growth and revitalization, and reduce dangerous methane leaks."
The money for the project will be available in phases, with $25 million available to each state in initial funding. Total funding is dependent on job losses in each state from March 2020 through November 2021; the number of documented orphaned oil and gas wells in each state; and the estimated cost of cleaning up orphaned wells in each state.
“President Biden’s Bipartisan Infrastructure Law is enabling us to confront the legacy pollution and long-standing environmental injustices that for too long have plagued underrepresented communities,” said USDOI Secretary Deb Haaland. “We must act with urgency to address the more than one hundred thousand documented orphaned wells across the country and leave no community behind. This is good for our climate, for the health our communities, and for American workers.”
In the coming weeks, the USDOI said it will release detailed guidance for states to apply for the initial grants. The funding will allow state officials to begin building out plugging programs, remediating high-priority wells, and collecting additional data regarding the number of orphaned wells in each state.