Across Texas, abandoned wells are erupting with chemical-infused liquid and some have created massive lakes of contaminated water. Regulators say they need more money to address the problem.
Most jurisdictions require a plugging and abandonment bond. Typically the bond amount is nominal and generally not sufficient to actually plug and abandon a well especially considering the inflation over the very long life span of some of these wells. It’s often cheaper for a company to fold and default to the bond company.
What is remarkable here is the smallness of the numbers, especially compared to the level of hype. Worry porn, indeed. Small numbers of problem wells. Small costs to address the problem. Why didn't Texas have an escrow system that taxes producing wells to generate a fund that reimburses or covers plugging costs? This situation represents regulatory stupidity far more than any large-magnitude problem.
Most jurisdictions require a plugging and abandonment bond. Typically the bond amount is nominal and generally not sufficient to actually plug and abandon a well especially considering the inflation over the very long life span of some of these wells. It’s often cheaper for a company to fold and default to the bond company.
Alberta in Canada faces a similar situation. You can find a recent report on what to do about it here: https://open.alberta.ca/dataset/c1e0fc7b-ee55-4797-b640-5a2f4657d895/resource/0fcdf8c6-86a1-4e41-97f6-65e175982423/download/em-mature-asset-strategy-2025-04.pdf
Fascinating article
What is remarkable here is the smallness of the numbers, especially compared to the level of hype. Worry porn, indeed. Small numbers of problem wells. Small costs to address the problem. Why didn't Texas have an escrow system that taxes producing wells to generate a fund that reimburses or covers plugging costs? This situation represents regulatory stupidity far more than any large-magnitude problem.