The Biden administration is offering federal assistance to certain states for the closure of low-producing oil and gas wells. Funding comes from the Inflation Reduction Act’s $350 million program called the Mitigating Emissions from Marginal Conventional Wells.
The grant opened up in August, as announced by the Environmental Protection Agency and the Department of Energy. The program was designed to “help monitor and reduce methane emissions, one of the biggest drivers of climate change, from the oil and gas sector and for environmental restoration of well sites.”
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Last week, Wyoming opted not to pursue federal funding from the program, with Gov. Mark Gordon (R-WY) stating he believes the offer undermines the state’s oil and gas industry and its importance to the economy.
“This approach — concocted by DC bureaucrats — shows a complete disregard for the importance of this industry to Wyoming’s economy,” Gordon said in a press release on Oct. 2. “These are wells that have, and will continue to produce, significant amounts of oil; provide jobs through hundreds of small businesses; and generate revenues for schools, the state and local government.”
The funds are intended to target oil and gas wells that are not operating or produce less than 15 barrels of oil per day. The program was open to 30 states that sought assistance with measuring methane emissions, permanent plugging, and the repair of conventional wells on non-federal lands. The deadline to apply for the grant has passed, and it’s unclear which specific states put in an application.
Last year, the EPA issued a supplemental proposal seeking to lower emissions from oil and natural gas facilities, which are among the nation’s highest sources of methane. The agency estimates, under this proposal, they can reduce methane emissions by 87% relative to 2005 levels by 2030.
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U.S. oil industry groups have pushed back on the Biden-backed plan, expressing concerns that the plan gives too much power to environmental groups. The American Petroleum Institute wrote to the EPA that the proposal lacks transparency and accuracy by giving too much authority to third parties.
The Washington Examiner reached out to the Department of Energy’s National Energy Technology Laboratory for comment.
