RRC Commissioners Approve FY 2018-19 Well Plugging and Site Remediation Plans

RRC to Plug Up to 3000 Orphan Wells During Biennium Texas Insider Report: AUSTIN Texas All three Texas Railroad Commissioners today approved the Railroad Commissions 2018-19 well plugging plan. Under this proposal the Commission plans to plug up to 3000 abandoned wells over the biennium. The estimated cost of the well plugging plan is $67 million which will come from fees paid by oil and gas operators into the Oil & Gas Regulation & Cleanup Fund (OGRC) and the Texas Economic Stabilization Fund (ESF). No taxpayer dollars will be used to pay for well plugging activities. This year the 85^th Texas Legislature approved allowing the Commission to use OGRC and ESF industry fees to plug wells abandoned by operators. The majority of oil and gas operators take care of their own wells plugging a total of 10325 in Fiscal Year 2017. The additional support from the Legislature will allow the Commission to substantially increase wells plugged to approximately 1500 each year of the next biennium compared to 918 abandoned wells plugged in FY17. Since the well plugging program began in 1984 36610 abandoned wells have been plugged for $272 million. Additionally Commissioners approved the RRCs site remediation sections plan to complete 259 cleanup activities at abandoned oilfield sites in FY18 using approximately $9 million from the OGRC.