Oil and Gas at Your Door? (2005 Edition) - Earthworks

Oil and Gas Development and Impacts
Reclamation activities typically include: removal of all well-related equipment; re-grading of
roads and other surfaces; removal of trash and debris; road closures; closure and remediation
of pits and contaminated soils; and site revegetation. While this stage appears at the end of the
development process, there are interim reclamation activities that can and often must be performed
by operators at other stages of development. An example of interim or “annual” reclamation
requirements can be found in the Vermejo Park Ranch Mineral Extraction Agreement in
Chapter III.
SITE ABANDONMENT—ISSUES AND IMPACTS
Orphaned and Idle Wells
Surface owners should be aware that as a well becomes less and less profitable, some larger
companies will sell these wells to smaller companies. Eventually, these wells may become the
responsibility of the state, for example, if the smaller company does not have the funding to
properly plug the wells and reclaim the site. If a company goes bankrupt and has no assets
available to be used for proper well abandonment the well is considered to be an orphan well. 142
The term orphan well also applies to the situation where the operator is unknown (e.g., in the
case of wells drilled in the early part of the century).
Idle wells are wells that have ceased production but have not been plugged. In most states,
wells require regulatory approval to be idle. 143 Most states allow some period of time of inactivity
(usually six months to one year) without approval. When this initial time has elapsed, states
may require a statement of the operator’s intentions, which may include extensive geological
and engineering information and a schedule for returning the well to production. 144 Also, a state
may require periodical mechanical integrity tests to ensure that the well does not pose a threat
to the environment. 145
• In 1995, there were 134,000 wells in the U.S. that had stopped production yet had neither
been plugged nor received government approval to be idle. 146
• Orphan wells and idle wells that do not have government approval may present a groundwater
contamination hazard. With many of these wells, the integrity of the casing is not
known, and so there is a possibility that reservoir fluids or gases are contaminating or will
contaminate nearby fresh water aquifers. Not all wells will cause contamination, but until
the wells are evaluated, the risk that they pose is unknown.
• Most oil- and gas-producing states have a program for addressing orphan wells, which
includes: prioritizing wells (because states do not have the funding to assess and properly
plug all orphan wells); programs to plug dangerous orphan wells; and clean up of any contamination
that may have already occurred.
• There is no guarantee that a state will have adequate funding to properly plug and reclaim
orphan sites; leaving the surface owner with concerns about long-term risk of contamination.
See “Bankrupt companies walk away from oil wells in Texas,” Chapter II.
• One source of information that can help inform state regulators of the risks posed by
orphan or idle wells comes from area of review (AOR) studies that are required for the
approval of new underground injection wells. Under this requirement, the operator of the
new well must study all active, idle and abandoned wells within an area (often a ¼ mile
radius) to determine whether they pose a risk of contamination. 147
Improperly Plugged and Abandoned Wells
• Improperly completed and abandoned wells may allow contaminants such as pesticides to
be transferred from the surface to groundwater.
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