Orphan wells

The Ohio House of Representatives unanimously passed a bill today that should make it easier to plug unused oil and gas wells in Ohio. The legislation also proposes a significant increase in the amount of funds available for doing so, from 14% to 45% of the state’s Oil and Gas Well Fund.

Under the proposed law, a landowner would be able to report an idle and orphaned well to the Chief of the Division of Oil and Gas Resources, who must inspect the well within 30 days and classify the well as distressed high priority, moderate medium priority or maintenance low priority for purposes of sealing the well or restoring the land surface at the well site. The legislation also lightens several procedures the Chief currently must follow before plugging a well, such as determining ownership and legal interests in the well, the oil and gas lease related to the well, and any equipment at the well. The Chief would not be required to search beyond 40 years to determine ownership and legal interests. Several procedures regarding the contracts entered into for restoration or plugging of a well would also change.

House Bill 225, proposed by Rep. Andy Thompson (R-Marietta) now goes to the Ohio Senate for consideration. Read more about the bill here.