A bill calling for more funding by the oil and gas industry to help plug gas wells that are no longer in production won approval Thursday in the Senate Energy Committee.
HB1370 by Rep. Brad Boles and Sen. Grant Green would increase funds from the state’s Gross Production Tax on gas well production to be used toward plugging of wells. Since the funding would come from the GPT, it would not involve any more state expenditures.
“It would increase the formula from $2.5 million to about $20 million,” explained Sen. Green during the Energy Committee hearing.
“We need to reduce a significant number of abandoned or orphan wells which totals about 18,000,” added the senator who said the increased formula adjustment would perhaps increase plugging from 100 a year to a thousand.
Shut-in wells are still owned by the operator and no longer produce natural gas. After several years, they can be added to the list of abandoned wells and be eligible for state plugging efforts. In many cases, wells are considered abandoned after the operators go bankrupt or are no longer in business.
“I plan on coming after the bad actors next session,” promised Green during questioning about the measure.
The Senator called the bill an effort to clean the state up and “keep moving foward.” He added the number of abandoned wells is “growing—and we need to get a handle on it.”
He said it would not only be a benefit for the state of Oklahoma but to the oil and gas industry as well.
The final vote in support of the measure was 10-0.
AYES: 10
Boren Dossett Green Jett
Kern McIntosh Murdock Rader
Thompson Woods
NAYS: 0
