Michigan is on track to finally close the last 447 abandoned oil and gas wells scattered across the lower peninsula – thanks to a $25 million infusion from the federal government.
“Through this boost in funding, we hope to do 25 years’ worth of work in the next few years,” Adam Wygant, director of the oil and gas division at Michigan Department of Environment, Great Lakes, and Energy (EGLE) told MLive.com.
Oil and gas companies have operated in Michigan since the 1920s. Over the past century, more than 800 dormant oil and gas wells in Michigan’s lower peninsula were improperly sealed or abandoned by companies that failed or simply disappeared. When no corporate owner can be located, the state and private landowners are left to clean up the mess.
If not properly closed, these orphaned wells can leak into the groundwater and soil – posing a serious threat to Michigan’s public health. Wells can also release methane gas which is 25 times more potent than carbon dioxide in trapping heat in the environment.
Michigan started capping orphan wells in 1994, relying on a mix of revenue from an industry tax and state funds. With EGLE plugging an average of five to ten wells each year, it took 30 years to fix about half of the identified orphan wells in Michigan. At that pace, the project was expected to take another three decades to finish.
State officials say the major cash infusion now makes it possible to cap the remaining wells 8 times faster. EGLE plugged some 200 wells in 2023 and hopes to cap all remaining wells this year.
The $25 million comes from President Biden’s infrastructure law, which aims to improve and update infrastructure including aging roads and bridges and improving broadband access in urban and rural communities across the country.
How It Works
The state kept records on well locations and was able to identify many orphan wells through record searches; some wells are discovered by the landowner. Since the orphan well program was launched in 1994, state officials have catalogued abandoned wells and prioritized plugging those wells that are the biggest threat first.
Program officials hire contractors to plug the wells and work with landowners to manage the process. Plugging a well involves sealing it, therefore securing it from potential leaks and uncontrolled venting of gases. The process runs between two weeks and two months, depending on the condition of the well and surrounding property. The average process costs around $75,000 but can run as high as $350,000 for emergency cases. In some cases, the department must also dismantle old equipment or surrounding buildings.
“This additional federal infrastructure money allows us to hire two new staff dedicated to the orphan well program and permanently plug these wells at a rate eight times faster than before, restoring the land for future use,” he said.
EGLE launched a website for Michiganders to track progress of the cleanup.
Three key points:
- Michigan received $25 million from the federal government to quickly clean up 447 abandoned oil and gas wells, which are harmful to the environment. This money will help complete 25 years of work in just a few years.
- These old wells are dangerous because they can leak and harm the ground and air. Michigan started fixing them in 1994, but progress was slow.. With this new funding, they fixed 200 wells in 2023 and plan to finish the remaining sites this year.
- The funding was included as part of President Biden’s infrastructure law.. Fixing each well costs between $75,000 and $350,000.
