ASHLAND — A state agency is in line to receive hundreds of millions of dollars over the next decade or so aimed at plugging the thousands of abandoned oil and gas wells across Ohio.
The Ohio Department of Natural Resource’s Division of Oil and Gas conducted a video conference call with reporters Feb. 23 to announce it’s in line to receive up to $326 million from the federal infrastructure bill passed in November.
The $1 trillion Infrastructure Investment and Jobs Act allocates $4.7 billion for the plugging, remediation and restoration of orphaned well sites.
An orphan well is an oil and gas well that has no registered owner, said Eric Vendel, chief of ODNR’s division of oil and gas.
“Often these wells exist for years without anyone knowing or harm to people in the environment,” Vendel said. “But orphan wells could pose a … threat if not properly plugged.”
Since its 1976 creation, Ohio’s orphan well program has identified thousands scattered across the state. There are currently 1,053 wells in the program, and Vendel said another 19,662 are under review for further classification.
The division has ramped up efforts to plug wells in the last five years, using a mix of state funds and money available through Ohio’s severance tax on oil and gas well production.
In 2021, the program plugged 181 orphan wells, which grew from 100 in 2020 and 76 in 2019, according to numbers provided by ODNR.
But the federal money isn’t just for plugging orphan wells.
The money can also be used to identify and classify existing orphan wells, measuring and tracking emissions of gases and water contamination, remediating soil near orphan wells and identifying and addressing any disproportionate burden of adverse effects on communities of color, low-income, tribal and indigenous, ONDR officials said.
Vendel called the federal funds unprecedented and an exciting opportunity.
Still, the injection of federal funds might not cover the cost to plug all of Ohio’s orphan wells, Vendel said.
“We’re going to do the best we can with what we have,” he said.
Ashland County has 621 documented orphan wells, however, the majority of them have not yet been classified, per state law, as an orphan well. More than 500 of them are currently classified as “historical production” wells.
The division is reviewing documents available for these wells in order to classify them as orphan wells or something different, said Adam Schroeder ODNR’s public information officer.
The division has, however, identified 40 orphan wells in Ashland County, with another 25 pending that classification. Another 41 are of unknown status and three have been classified as “location unknown,” according to ODNR records.
There are 31 documented orphan wells in Richland County, with only four classified as orphan wells.
In Knox County, there are 483 documented, with 13 classified as orphan wells.
What’s next
Officials said the division will continue to work to classify orphan wells, as well as continue to search for them.
The division expects to receive an initial grant of $25 million by summer or fall. Formula and performance grants will then be available for the next 14 years, said Jason Simmerman, an engineer for the orphan well program.
Officials encouraged construction firms with experience in plugging wells to consider participating in the plugging program.
“Opportunities exist for businesses of all sizes and in many areas of expertise to participate in this program,” Vendel said.
Officials also encouraged residents to reach out to the division of oil and gas if they suspect any orphan wells on their property by emailing orphanwellprogram@dnr.ohio.gov or call 330-308-0007.
