Congressman Kelly Armstrong (R-ND) and Congresswoman Lizzie Fletcher (D-TX) introduced the Revive Economic Growth and Reclaim Orphaned Wells (REGROW) Act of 2021, a bipartisan bill to clean up orphaned oil and gas wells and provide thousands of job in the oil and gas industry.
“North Dakota has long been at the forefront of responsibly developing our oil and gas resources, and excels at reclaiming orphaned wells,” said Congressman Armstrong. “With more than fifty thousand abandoned oil and gas wells in the United States, cleaning them up is not only the right thing to do, but it will create and retain tens of thousands of jobs for workers in the oil and gas sector across the country. I am grateful to work with Congresswoman Fletcher in this bipartisan effort.”
“Orphaned wells can harm our environment and create public health risks for neighboring communities. I am glad to partner with Congressman Armstrong to introduce bipartisan legislation that addresses these problems,” said Congresswoman Fletcher. “The REGROW Act will not only help protect our environment, but it will also create jobs for oilfield workers in Texas and across the country, which is especially important now, after the downturn brought on by COVID-19.”
Across the country, there are more than 50,000 “orphaned” oil and gas wells without a party responsible for cleaning them up. Found mostly on state and private land but also federal and tribal lands, these orphaned wells can leak methane, contaminate groundwater, and create safety risks.
The REGROW Act provides:
- $4.275 billion for orphaned well cleanup on state and private lands
- $400 million for orphaned well cleanup on public and Tribal lands
- $32 million for related research, development, and implementation
Companion legislation was introduced in the Senate by U.S. Senators Ben Ray Luján (D-NM) and Kevin Cramer (R-ND).
The REGROW Act is endorsed by energy and environmental groups such as the Environmental Defense Fund (EDF), Independent Petroleum Association of America (IPAA), The North Dakota Petroleum Council, Interstate Oil and Gas Compact Commission (IOGCC), and the National Wildlife Federation (NWF).
“The introduction of the REGROW Act in the House is an important demonstration of bipartisanship that supports local economic development and addresses environmental hazards. EDF applauds Representatives Fletcher and Armstrong for introducing this bill and appreciates the variety of legislative solutions on the table to create jobs and protect local communities from air, water and climate pollution by addressing the orphan wells crisis in America. More than 100,000 oil and gas workers have lost their jobs in the past year and this effort will put people back to work while creating a healthier environment,” said Elizabeth Gore, Senior Vice President, Political Affairs, Environmental Defense Fund. “This bill will ensure every documented orphan well in the U.S. is plugged. It will also help identify and catalogue the hundreds of thousands of other improperly abandoned wells across the country. And it will ensure that when wells are plugged, they are plugged properly. This is an important piece of the overarching reforms – including reforms to bonding and other policies that prevent wells from becoming orphaned in the future – needed to reduce the environmental impact of the oil and gas industry.”
“We appreciate Congressman Armstrong’s work to introduce the REGROW Act,” said Ron Ness, President of the North Dakota Petroleum Council. “North Dakota saw great success in 2020 with the use of CARES Act funding to plug and reclaim abandoned wells. In a very tough year, it provided work for our oilfield employees and kept them off unemployment, while working toward the important goal of addressing the abandoned wells in our state. Expanding this model would provide great benefits to states with abandoned wells, providing assistance to address reclamation needs while also putting people to work. We applaud Congressman Armstrong’s work on this important issue and look forward to seeing this bill move through Congress.”
“As a state regulator responsible for plugging and reclaiming orphan wells, I appreciate Congressman Armstrong’s sponsorship of the REGROW Act to provide a federal support for states like North Dakota to address a growing nationwide concern, to keep thousands of skilled workers on the job and off unemployment, and to incentivize states to review their regulations and seek solutions to prevent the orphan well problem from growing,” said Lynn Helms, Director of the North Dakota Department of Minerals Resources.
“The Independent Petroleum Association of America (IPAA) supports actions to address orphan wells. States have been acting to plug these wells for decades. The REGROW Act would provide additional funds for these state programs and aid their initiatives and the workers who undertake these efforts during the difficult fiscal times caused by the COVID-19 pandemic. IPAA urges Congress to take swift action on this legislation. We applaud the leadership of Reps. Armstrong and Fletcher in working with all interested parties on this legislation that will help address this important issue in a reasonable and thoughtful manner,” said Barry Russell, President & CEO of IPAA.
The full text of the bill can be found here.
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Sponsors, Music and Other Show Notes
Studio Sponsor: The Industrial Forest
The Industrial Forest is a network of environmentally minded and socially conscious businesses that are using industrial innovations to build a network of sustainable forests across the United States.
Weekly Sponsor: Korwell Energy
Korwell Energy is an industry leading designer, ASME code manufacturer, and remanufacturer of production equipment for oil and gas producers, throughout the Rocky Mountain Region.
They retain both an ASME U and R stamp. Their 28,000 sq ft of manufacturing shop with overhead cranes create a safe and productive environment for their team who collectively have over 75+ years of experience in manufacturing of ASME Oil and Gas production equipment.
Korwell prides themselves on outstanding customer service, expertise, and cutting-edge technology to partner with customers to maximize their individual production goals and help comply with ever changing regulations.
Weekly Sponsor: MineralTracker
MineralTracker is the only mineral management software that allows mineral owners to compare actual royalty payments to expected payments based on well performance and a proprietary, Bakken-specific reservoir model built by MineralTracker’s petroleum engineers.
MineralTracker was formed in Watford City, North Dakota, and is a subsidiary of First International Bank & Trust, a family-owned bank also based in Watford City.
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