Michigan Receives $5.9MM in DOI Funding for Cleanup of Orphaned Wells

The state of Michigan has received $5.87 million in funding from the Department of the Interior (DOI) to continue work plugging, reclaiming, and restoring orphaned oil and gas wells.

This is part of a $4.7 billion provided by the Bipartisan Infrastructure Law for the DOI to plug orphaned wells, the department said in a news release.

“In August 2022, the Interior Department awarded $560 million in initial grant funding to 24 states, including $25 million to Michigan, to begin work plugging and cleaning up orphaned wells nationwide”, the DOI recalled.

Since August 2022, over 7,000 wells have been plugged across the states, 200 of which were in Michigan. This process reduced approximately 11.530 metric tons of potential methane emissions, according to the DOI.

Of the recent award to Michigan, the DOI said, “Today’s announcement is part of a second round of funding as well as the President’s broader effort to help states to create good-paying union jobs, catalyze economic growth and revitalization, and reduce harmful methane leaks”.

“President Biden’s Investing in America agenda is creating jobs and revitalizing local economies while cleaning up harmful legacy pollution sites throughout the country”, said DOI Secretary Deb Haaland. “I’ve seen many of these hazardous sites firsthand that are actively leaking oil and releasing methane gas that need to be urgently addressed. With this historic funding, Michigan can continue the progress made plugging wells over the last year. These investments are good for our climate, for the health of our communities, and for American workers”.

The DOI said Michigan will assess methane emissions from abandoned wells, prioritize cleanup near disadvantaged communities, and support President Biden's Justice40 Initiative. This initiative aims to ensure that 40 percent of the benefits from federal investments reach marginalized communities historically impacted by pollution.

Haaland in January established the Orphaned Wells Program Office to oversee the efficient use of federal investments, according to the DOI.

Nearly $150 million has been allocated to federal land managers to address orphaned wells on public lands, while around $40 million has been designated for Tribal communities to tackle wells on Tribal lands, the DOI said.

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