N.Y. gets $25M in federal money to plug orphan oil and gas wells

New York State will use $25 million in federal funding to plug, cap, and reclaim orphaned oil and gas wells in upstate New York.

U.S. Senate Majority Leader Charles Schumer (D–N.Y.) on Aug. 29 announced $25 million in federal money through the U.S. Department of Interior to bolster New York State’s efforts in this matter, his office said. 

New York has nearly 7,000 of these abandoned sites from the fossil-fuel industry, concentrated heavily in the Southern Tier, Central New York, the Finger Lakes, and Western New York, per Schumer’s office. They can leak methane and other pollutants, posing a “serious safety hazard and further fueling climate change.”

“Upstate New York, from the Southern Tier and Central New York to Western New York and the Finger Lakes, has been plagued by orphaned oil and gas wells for decades creating hidden hazards that can pollute our backyards, drinking water sources, and communities. Now, thanks to the Bipartisan Infrastructure and Jobs Law that I championed, Upstate New York will receive $25 million in desperately-needed funding to confront these long-standing environmental challenges and plug hundreds of these wells,” Schumer said. 

In a separate news release on the same topic, Gov. Kathy Hochul said that by locating, assessing, and plugging these decades-old oil and gas wells, New York is making major contributions toward reducing air pollution that significantly contributes to climate change by preventing them from leaking methane into the environment. 

Schumer’s office cites the New York State Department of Environmental Conservation (DEC) as indicating most of these orphaned oil and gas wells across the state were drilled in the late 1800s to early 1900s. The time period was prior to the establishment of modern environmental protections. As a result, the wells lack “comprehensive documentation and may present threats to public safety and the environment,” Schumer’s office said. 

The highest number of orphaned wells are located in Allegany County. 

If left unplugged, orphaned wells can leak methane — a more potent greenhouse gas than CO2 — and other toxic contaminants into the environment and ground and surface waters. The funding will go directly to helping to boost the ongoing work to “plug, cap, and reclaim these orphaned wells and keep our communities safe.” 

Schumer’s office went on to say that New York is already involved in locating and plugging these wells. 

In 2020, the DEC and the New York State Energy Research and Development Authority (or NYSERDA) launched a new program using drone and magnetometer technology to map abandoned oil and gas wells. 

The U.S. Environmental Protection Agency estimates that methane emissions from these abandoned wells are equivalent to more than 6 million tons of carbon dioxide (CO2) into the atmosphere each year. 

The Infrastructure Investment & Jobs Act provided $4.7 billion to plug, remediate, and reclaim orphaned wells via grants to states and new federal programs to tackle legacy pollution. As of 2021, there were more than 129,000 orphaned wells that have been identified across the U.S. This number is expected to grow as more are found using funding from the infrastructure law. 

The funding announced Aug. 29 is part of an overall $1.15 billion in phase-one awards announced from the Department of Interior for states to plug and remediate orphaned wells, with more formula funding expected in the coming months.