In his spare time, David Levy, owner of Petrotechnologies, a company that makes specialty parts for the oil and gas industry, monitors the fossil fuel industry acrossย southwest Louisiana from the sky. He transformed his flying hobby into an act of stewardship by surveying oil and gas industryย sites to check for environmental hazards, like oil spills andย toppled storage tanks.
Following back-to-back hurricanes last year, Levy took me up with him so I could photograph the stormsโ aftermath.ย We found oil slicks from oil and gas wells scattered throughout the wetlands.
Now, Levy is focusing his flights on surveyingย orphaned well sites to document the severity of the situation.ย When regulators can no longer locate a wellโs responsibleย owner,ย or if the owner is known but bankrupt, a well is classified asย orphaned.ย Once officially classified as orphaned, the site becomes the stateโs responsibly and isย added to a list of sites that need to be plugged and cleaned up.ย
The number of orphaned wells in oil and gas producing states nationwide continues to increase, as does the amount of planet warming methane emissions leaking from them. To deal with the issue, a series of bills have been introduced to grant federal funding to states, giving them the resources to tackle the problem.ย
โI love Louisianaโs wetlands. There is no other place like it in the world,โ Levy said, a few hundred feet off the ground, the last time he took me up to photograph well sites inย Vermillion Parish,ย near the border with Texas on the Gulf Coast. ย A few seconds later after we circled a well site with toppled rusty tanks he added: “It is criminal what we areย allowing to be done to it.”
David Levy in his plane on the runway in New Iberia. Credit: Julie Dermansky Orphaned well site in the Atchafalaya Basin. Credit: Julie Dermanksy
Levy believes orphaned wells arenโt being monitored properly. And he thinks itโs disgraceful that the Louisiana legislature and the regulatorsย havenโt strengthened current rules that limit a private firmโs responsibility to plug and abandoned wells if they choose to close up shop. It has become commonplace in oil and gas producing statesย like Louisiana for wellย operators to walk away from unprofitable well sites,ย leaving it to the state to deal with the mess, and the public to pay for it.ย
There are tens of thousands of known orphaned oil and gas wells in the United States and thousands of abandoned wells that were never properly plugged that are leakingย methane and emitting other toxins that threaten the environment and contribute to global warming.ย
Mounting scientific studies have shown that methane, the main component of natural gas, is not theย bridge fuel the Obama Administration sold the nation as the fracking industryย boomed under its watch. In fact,ย methane is up to 86 times more potent than carbon dioxide in the first 20 years after entering the atmosphere.ย
Now, the Biden Administration’s infrastructure plan is poised to take actionย combatting the climate crisis by eliminating the leaking methane at orphaned well sites. Theย American Jobs Plan calls onย Congress to spend $16 billion over 10 years to reclaim orphaned wells and mines.
Following the roll out of the infrastructure plan,ย U.S. Senators Ben Ray Lujรกn (D-N.M.)ย and Kevin Cramer (R-N.D.) introduced Theย REGROW Act, which calls for nearly $5ย billion in federal funds to be given to state regulatory agencies toย clean upย orphan well sites on public, private, and tribal lands. The bill would aim to eliminate methane emissionsย and create jobs.
And on April 8, New Mexico Congresswoman Teressa Leger Fernรกndez introduced a similarย bill that includes new regulations, theย Orphaned Wells Cleanup andย Jobs Act of 2021. Her billย would authorizeย $7.725 billion toย clean up the more than 56,000 known orphanedย oil and gas wells across the country, cut methane emissions, and createย moreย stringent rules for well operators including raising the bondsย they must pay in order to reduce the taxpayerโs burden if a well operator walks away without properly cleaning up the site.ย
Duringย an April 15 hearing onย Fernรกndez’s bill,ย by theย House Committee on Natural Resources Subcommittee on Energy and Mineral Resources, there were signs ofย bipartisan support. Representatives from both parties agreed that states do not have enoughย money or resources to clean up their orphan wells and welcome federal money.
GOP committee leadersย warned, however, that the bill would need toย be amended before they sign off. Unhappy with the provisions toย strengthen regulations, they argued that if bondย rates go up more companies could go bankrupt creating an influx of new orphaned wells.ย
Those provisions are what make Fernรกndezโsย bill more appealing to some supporters than the REGROW Act. They argue that those companies which cannot afford to setย asideย enough money to cover plugging their wells โ effectively serving as a basic insurance policy โ are on the path toward insolvency anyway.ย
Calling for a Smarter Solution
Several well-established environmental organizations have endorsedย the REGROW Act including the Environmental Defense Fund and the National Wildlife Organization. Those groups also support Fernรกndezโs Orphaned Wells Cleanup and Jobs bill along with the Wilderness Society and Earthworks, among others. But there are also manyย environmental advocatesย who see both billsย as a Band-Aid that wonโt cover theย growing wound.ย
Someย environmental advocates are critical of any solution that gives federal money to state regulators that allowed the orphan well situation to fester in the first place.ย
In an April 25ย editorial,ย Bob Marshall,ย a Pulitzer Prize-winning Louisiana environmentalย journalist, described giving federal money to states to deal with the orphan well issueย as aย โcorrupting influence of money in our politics.โ ย He explained:ย โIt is those entities thatย make money in the oil field then cut and run when it is no longer profitable leavingย taxย payers paying for that clean up, that back politicians that stand in the way for mandatingย higher bonds who will profit.โ
Marshall hailed Megan Milliken Bivenโs โAbandoned Well Actโ (AWA)ย thatย calls for theย creation of a federal Abandoned Well Administration to oversee the initial cleanup as aย smarter solution. Biven, a Louisiana native,ย has spent close to a decade workingย for the Bureau of Ocean Energy Management before moving to Vienna, Austria, where she is a public policy professional and a writer who has spent a lot of time thinking about solutions to Americanโs methane-leaking well problem. Bivenโs AWA billย calls for realistic bondingย requirements and levee fees on theย oil and gasย industry to pay for future cleanups. Under her bill, the federal government, not the states,ย would create a new federal workforce of displaced oil and gas workers.
Oil derrick at a well site in Vermillion Parish, LA. Credit: Julie Dermansky Well site in Vermilion Parish, LA. Credit: Julie Dermansky
Though Bivenโs bill, which she introduced herself in a January 2021 Current Affairs articleย isnโt on the table, her plan is gaining attention.ย
Biven warns that the funneling of federal money to states to augment state orphan well programs will provide a temporary stimulus to a few oilfield service firms but it wonโtย stop “the hemorrhaging of oil and gas jobs.” And while plugging thousands of wells in oil and gas fields across the country would cut back harmful methane releases, itย doesn’t do enough; methane emissions, she says, must also be stopped at wells that have operators along with the wells that have been plugged.
The AWA bill calls for the creation of a workforce that deals with wells at every stage. This is because, once a well is drilled, it requires monitoring, even when itโs no longer operational. Wells sites that have been plugged and abandoned, even ifย done properly, can also end up leaking methane down the line.ย
Making clear the scope of the issue and the role of orphaned wells within it,ย Biven writes in Current Affairs: “Every single oil and gas well that has ever been drilled is at risk of leaking in the future and needs to be monitoredย and maintained in perpetuity. Oil and gas wells are forever.”
She warns of the misleading rhetoric used by those pushingย the idea that federal money can be used to stop methane releases and increase jobs for oil and gas workers.ย Biven says that “the devil is in the details. Most of the proposals shared some common features: Federal Money โ State Orphan Well/Federalย Orphan Well Program โ Private Contractor โ โPlug and Abandonmentโ work.โย
In other words, if federal money goes to the states to deal with the orphaned well problem, it will likely flow to favored contracting firms and lead to temporary jobs at best.
Well site in Luling, Texas. Credit: Julie Dermansky Permian Basin oil well with visible oil spill on Federal land in New Mexico. Credit: Julie Dermansky
“In New Mexico,โ she writes, โhigher-end estimates for a federal grant program to merely plug the identified 700 orphaned oil wells are estimated to support just 100 jobs. In Louisiana,ย plugging all of the documented orphan wells would employ 1,000 oil workers full-time for just one year. Since many of the approved firms on the OSRโs approved contractorย list participate in the stateโs Transitional Work Program, thereโs a good chance many of those workers will be incarcerated Louisianans, and, in addition to being slave labor,ย will not actually add to the stateโs employment rolls. Ohio recently increased the scale of its own orphan well program but discovered that because the government wasย exclusively reliant on private contractors, it could not find enough qualified contracting firms in Ohio to bid on jobs. So why structure it this way? Why not recruitย unemployed workers directly to work in a state program? There are certainly enough unemployed oil and gas workers to go around.”
Senior Researcher Ted Boettner, with the Ohio River Valley Institute, testified at the April 15 hearing for Fernรกndezโs orphaned wells bill, referenced Biven’s concepts.
In a report on orphaned wells and abandoned mines in Appalachia, Boettner explained that aย federal program is needed that can continuously monitor and remediate these abandoned well sites. The report points out that there โare an estimated 538,000 unplugged abandoned oil and gas wells in the Ohio River Valley states of Ohio, Pennsylvania, West Virginia, and Kentucky alone. Plugging these wells could cost upwards of $34 billion.โ
Addressing the orphan well problem nationwide will be a massive undertaking. In 2018, only 2,372 orphan wells wereย plugged in the U.S. At this rate, it would take nearly 900 years for states to plug the estimated 2 million abandoned oil and gas wells across the nation.
Sharon Wilson, the Texas coordinator of Earthworks, is against any solution that includes giving money to state regulatory agencies to fix the countryโs orphaned well problem. Asked if thatโs the way to go, she says “Hell,ย No.โ
Measuring Methane Emissions
Wilson uses an optical gas imaging (OGI) camera, which makes otherwise invisible emissions visible, to identify methane leaks at oil and gas industry sites. For theย last few years, Wilson has been focused on documenting methane releases in the Permian Basin, one of America’s most productive oil fields. On one of her trips that I joined in earlyย 2020 before the pandemic spread, she foundย fugitive emissions at almost every site we visited; that includes active and orphaned wells.ย
She submits reports detailing her findings to the state regulators. While on occasion regulatory actions were taken by regulators as result of her work,ย she finds that mostย of the sites where she identifies leaking methane continue to spew emissions.
While regulators are aware that many sites are leaking methane, the emissions arenโt acutely measured in Texas and other oil and gas producing states, she points out. That is why report after report about methane emissionsย from wells reveal the number of estimated emissions is greater than the figures the EPA has been using, which are based on figures provided by the oil and gasย companies themselves.ย
A 2018 report organized by the Environmental Defense Fund, found that the U.S. oil and gas supply chain is leaking roughly 60 percent more methane than reported inย previous Environmental Protection Agency (EPA) estimates. And a new study by McGill University found “that annual methane emissions from abandonedย oil and gas (AOG) wells in Canada and the U.S. have been greatly underestimated โ by as much as 150% in Canada, and by 20% in the U.S. Indeed, the research suggests thatย methane gas emissions from AOG wells are currently the 10th and 11th largest sources of anthropogenic methane emission in the US and Canada, respectively.โ
Theย McGill report explains the difficulty in estimating overall methane emissions from AOG wells due to a lack of information about both the quantities of methane gasย being emitted annually from AOG wells and the number of AOG wells themselves.
“Regulators in Texas have proven that they are incapable of fixing this problem,โ Wilson said which is why she also supports Bivenโs AWA bill.
Levy, who has spent 30 years working in Louisianaโs oil and gas industry is another fan of Bivenโs bill. While he supports the federal government stepping in to fix the orphanedย bill problem, he says that leaving it to the regulators that allowed the mess to happen under their watch โ and which he sees regularly from his plane โ makes no sense.
Like Wilson, Levy sees state regulatorsโ lack of will to act over methane emissions as a big problem. “It points to total regulatory capture,โ he said.ย
“Not nearly enough is being done to identifyย methane leaks at oil and gas well site,โ Levy said. And while the actual methane being leaked is invisible to theย naked eye, he can still identify sites that need attention and where methane leaks are highly probable.
โExpendableโ Planetย
The Environmental Protection Agencyโsย Clean Air Act leaves methane pollution from oil and gas wells largely unregulated. So it is not surprising oil and gas producing state like Louisiana arenโt focused on identifyingย methane leaks.ย
The Louisiana Department of Environmental Quality (LDEQ), the agency responsible for air quality, has no role in identifying releases from oil and gas wells, according toย Gregory Langley,ย LDEQย spokesperson.ย “DEQ relies onย DNR (the Department of Natural Resource) to inform DEQ of fugitive emissions from oil and gasย wells,โ Langley said in an email.ย
The Department of Natural Resource (DNR)ย doesn’t have anย opticalย gas imaging (OGI) camera,ย a tool used by the oil and gas industry that would detect leaking methane. Instead, its agents rely on eyes and ears to find methane leaks, according toย Patrick Courreges, communications directorย atย DNR. ย When inspecting oil and gas well sites, agents listen forย detectable noises and any signs of bubbling to identify possible methane leaks. ย
โOil and gas regulation does not exist in any meaningful way. It’s so implausible and shocking that I think most people just short out when confronted with the facts,โ Bivenย wrote in an email. If the EPAย introduces national inspection, enforcement, and penalty standards, states would at least have a chance to tackle the leaking methane issue, says Biven. Butย she points out that even if the Fernandez bill passes,ย “without physical inspections, with appropriate tools to measure methane at the wellhead, and actual enforcementย powers ensconced in law to force compliance โ it’s just paper.โ
Regardless of the rules,ย Levy believes that while society transitions to renewable energy, it is possible for the fossil fuel industryย to operate in a much cleaner way than what he is seeing. He plans to continueย documenting orphaned wells site and posting what he finds on social media so people can see what is going on in Louisianaโs oil fields.ย
“There is no need to leak so much methane, or to have sites scattered throughout the landscape that are a danger to people and the environment.โ Levy said. “But greed knows no bounds these days โ it is as if this planet is expendable.”
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