WASHINGTON - The Department of the Interior announced Jan. 31 that it is providing $1.15B in funding to states for the creation of jobs cleaning up orphaned oil and gas (O&G) wells across the country. This is a key initiative of President Biden’s Bipartisan Infrastructure Law, which allocated a total of $4.7B to create a new program to address orphan wells. The historic investments to clean up the hazardous sites will create good-paying, union jobs, catalyze economic growth and revitalization, and reduce dangerous methane leaks. Plugging orphaned wells will also help advance the goals of the U.S. Methane Emissions Reduction Action Plan, Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization, which focuses on spurring economic revitalization in the energy communities. States with documented orphaned wells were submitted to a Notice of Intent (NOI) indicating interest in applying for clean-up and/or closure grants of those sites. DOI will allocate to Louisiana $47,396,249 in Phase 1 formula funding and initial grants to plug and restore orphaned O&G wells. Louisiana is expected to receive a total of $111,449,520 in funding from the IIJA for orphan wells. (Mississippi Phase 1: $26.77M; Mississippi estimated total: $31.83M; Alabama Phase1: $25.436; Alabama Estimated Total: $25.681M). In coming weeks, the DOI will release detailed guidance for these grants. The law also provides for a separate $250M for remediation of orphan wells on federal land, which will be implemented through the Bureau of Land Management. (Source: Department of Interior 01/31/22) Biden Administration Announces $1.15 Billion for States to Create Jobs Cleaning Up Orphaned Oil and Gas Wells | U.S. Department of the Interior
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