NEWS RELEASE
GOVERNOR JARED POLIS
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Gov. Jared Polis and US Department of Interior Secretary Deb Haaland and state officials visited local orphaned well sites in Adams County, to highlight the benefits of Colorado’s Orphaned Well Program (OWP) that restores these sites by reducing emissions, cleaning up contamination and returning them to be used by their community. They were joined by local, state and federal representatives to discuss the program and its funding sources including Adams County Commissioner Eva Henry.
Orphaned well sites are environmental hazards that can jeopardize public health and safety. Colorado’s Orphaned Well Program works to plug, remediate, and reclaim orphaned wells and orphaned sites, and return these sites back to communities.
“It takes collaboration at every level of government to do this work, and Colorado has found a way to bring everyone to the table to prioritize health and safety, while moving toward a clean energy future. Our commission is working diligently to plug, remediate, and reclaim wells around the Colorado to protect the health and safety of our communities. This comprehensive work is an example the nation can follow, and Colorado is proud to lead the way We thank Director Gibbs, Director Murphy and Secretary Haaland for coming to Colorado to showcase the importance of this work,” said Governor Jared Polis.
“Under the Polis Administration, Colorado's Orphaned Well Program has grown into the strongest in the nation. The program has significant benefits for environmental justice communities, improving air quality, protecting public health and the environment, and removing blights on our agricultural and residential communities alike. The new federal orphaned well grant program of the Bipartisan Infrastructure Law is an amazing partnership between the Department of the Interior and the states. This funding has expanded the program's impact drastically,” said Colorado Department of Natural Resources Executive Director, Dan Gibbs.
The Bipartisan Infrastructure Law, also known as the Infrastructure Investment and Jobs Act (IIJA), directs the Secretary of the Interior to establish programs to inventory and properly close orphaned wells. The Law provides $4.7 billion for remediation and restoration activities on federal, Tribal, state and private lands. The Orphaned Well Program is part of a larger strategy to combat climate change and address legacy pollution and employment challenges in energy communities nationwide. In 2022, Colorado’s ECMC was awarded a $25 million IIJA grant to plug and abandon orphaned wells.
The Colorado Orphaned Well Program, which is a part of the Colorado Department of Natural Resources’ Energy & Carbon Management Commission (ECMC), identifies, prioritizes, and addresses oil and gas wells, locations, and production facilities for which there are no known responsible parties or for which financial assurance instruments have been claimed. If not addressed, these oil and gas locations may impair a surface owner’s farming or ranching activity or other use of the property, harm wildlife, pose risks to the environment, or present a safety hazard to the public.
“ECMC’s new strengthened financial assurance rules ensure that operators are responsible for the entire lifecycle of the well. The rules increased the operator's required financial assurance and established an Enterprise Fund to collect fees from operators to cover the cost of orphaned wells that have fallen to the state for plugging and reclamation,” said Energy & Carbon Management Commission Director Julie Murphy. “We are proud of the Orphaned Well Program work and how it has ramped up to leverage these funding sources to make a significant impact for Coloradans. It will help reduce greenhouse gas emissions, clean up sites, restore sites to be returned to their communities, and create jobs.”
The Elaine site that was visited today in Adams County, is one of the orphaned wells that is eligible for IIJA grant. It was added to the Orphaned Well program as a part of the Painted Pegasus Bond Claim Project, which includes 205 sites and 190 wells in Adams and Weld Counties. The Elaine well was drilled in 1982, and in 2022, ECMC inspected the well, ensured the well was shut in, and locked out the flowlines when it became part of the OWP. In addition to the Elaine well site, the property has another orphaned well, which is also in the Orphaned Well Program.
To learn more about the program or the Energy & Carbon Management Commission (ECMC) visit ecmc.state.co.us or the OWP Fact Sheet.
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