WASHINGTON, D.C. – U.S. Senators Peter Welch (D-Vt.), Jeff Merkley (D-Ore.), Ron Wyden (D-Ore.), and Ed Markey (D-Mass.) partnered with U.S. Representative Katie Porter (D-CA-47) to introduce the Plug Offshore Wells Act, bicameral legislation that would direct the U.S. Department of the Interior (DOI) to submit an annual, publicly available report to Congress on the status of decommissioning offshore oil and gas wells, platforms, and pipelines. The legislation, introduced this week, aims to address the growing threat of abandoned offshore oil and gas infrastructure to marine ecosystems and the environment as a result of climate change and extreme weather events. It would also reduce financial burdens on taxpayers by increasing oversight of Big Oil companies and hold them accountable for the full terms of their offshore oil leases.
“Big Oil’s failure to decommission thousands of abandoned offshore oil and gas wells is not only costly to American taxpayers, but harmful to our environment. As climate change worsens and extreme weather hurts communities across the country, it’s crucial that we ensure Big Oil companies are following through on their promises to decommission abandoned offshore infrastructure,” said Senator Welch. “Our bill will hold Big Oil accountable, save taxpayer dollars, and help protect our marine ecosystems.”
“Orphaned wells are an environmental catastrophe waiting to explode. They pose the possibility of massive damage to the ocean by leaking oil and gas and must be addressed quickly,” said Senator Merkley.
“Neglected oil wells off our coasts are a ticking time bomb that threaten our coastal communities and environment in Oregon and nationwide,” said Senator Wyden. “It’s unacceptable that Big Oil has dodged responsibility to clean up drilling sites and pollution. This legislation will provide the data needed to hold Big Oil accountable and protect the public as well as our waterways and marine life.”
“Safely decommissioning abandoned offshore oil and gas infrastructure should be a no-brainer. But Big Oil consistently and unsurprisingly puts their profits above safety — leaving taxpayers to foot their bill for plugging thousands of abandoned wells and dealing with their toxic pollutants. To hold industry accountable, we need public disclosures of the status of well decommissioning efforts. Congress must use the tools at its disposal to stop oil companies from saddling everyday Americans with their cleanup costs instead of cleaning up their own messes,” said Senator Markey.
“Big Oil is required by law to decommission and plug unused offshore wells, but their tactics to delay and divert responsibility have left thousands of wells and platforms overdue for clean-up, threatening our waters,” said Representative Porter. “Delays in cleaning up old wells can make drilling infrastructure more vulnerable to damage and deterioration, which can topple platforms, cause oil spills, and make decommissioning even more expensive and dangerous. Our bill would help safeguard our environment—and taxpayer dollars—by boosting oversight and accountability for polluters.”
Idle and abandoned offshore oil and gas infrastructure increase the chance of oil leaks and pose environmental risks to marine ecosystems, especially as hurricanes and tropical storms in the Gulf of Mexico are increasing in strength and frequency. According to a recent study by the U.S. Government Accountability Office (GAO), over 2,700 wells and 500 platforms in the Gulf of Mexico are overdue for decommissioning. In the same study, GAO found that the Bureau of Safety and Environmental Enforcement and the Bureau of Ocean Energy Management (BOEM), which are responsible for enforcing decommissioning deadlines, are unable to effectively enforce decommissioning obligations and financial assurance requirements. GAO has recommended steps Congress can take to address the current backlog of overdue decommissioning requirements, including instituting new reporting requirements from DOI to Congress on the status of decommissioning.
Current delays and defaults in decommissioning offshore oil and gas infrastructure also leave American taxpayers responsible for covering costs of decommissioning abandoned platforms and wells, an expensive and lengthy process. As of June 2023, BOEM holds only $3.5 million in supplemental bonds to cover $40-$70 billion in estimated decommissioning costs, leaving a large gap of potential taxpayer funding needed to cover any defaults on commitments due to corporate negligence. As the U.S. moves towards clean energy and as more offshore infrastructure goes offline, this figure may increase.
The Plug Offshore Wells Act is supported by the Center for Biological Diversity, Earthjustice, Natural Resources Defense Council, Oceana, Ocean Conservancy, Ocean Defense Initiative, and the Surfrider Foundation.
“The federal government needs to be much more transparent about the massive amount of oil and gas drilling infrastructure abandoned in the ocean, and this bill will help shine a light on this problem,” said Mark Patronella, Attorney at the Center for Biological Diversity. “Hundreds of idle oil platforms and thousands of miles of deserted pipelines already litter our oceans. We first have to understand the scope of the issue to ensure that oil and gas companies clean up their messes as required.”
“It is unacceptable that Big Oil has repeatedly failed to fulfill its obligation to clean up drilling sites, leaving behind a mess of abandoned wells and platforms that pollute our ocean and climate,” said Becca Loomis, Attorney at Natural Resources Defense Council (NRDC). “The Plug Offshore Wells Act will help hold oil CEOs accountable for cleaning up after themselves.”
“Pollution from deadly and destructive offshore drilling can poison generations when oil and gas companies are not held accountable for cleaning up their mess,” said Joseph Gordon, Campaign Director, Oceana. “The law clearly states that Big Oil must pay for the full cost of decommissioning their dirty infrastructure, but in the Gulf of Mexico these companies are let off the hook nearly every time. There are enough abandoned pipelines in our waters to more than circle the planet, and an estimated 14,000 wells currently sit uncapped. Our communities, wildlife, and – ultimately – taxpayers are left to pay the price for this negligence. We need to hold polluters accountable for the true cost of their destruction, and the Plug Offshore Wells Act is an important step in that direction.”
“For too long, the oil and gas industry has cheated the system, benefitting from a lack of public awareness that they’ve created a junkyard in our ocean. The industry has failed to clean up their unused and end-of-life wells, platforms and pipelines–which remain in the ocean long after they’ve stopped drilling,” said Rachael DeWitt, Senior Manager of Government Relations, Ocean Conservancy. “With thousands of wells abandoned in U.S. waters already, the problem will only get worse if more offshore oil drilling in the Gulf of Mexico takes place, as the incoming Administration has proposed. Now is the time to set up the right systems to hold oil and gas operators accountable for cleaning up their mess, and to protect the ocean and marine life from these deteriorating structures. We are grateful for Senator Welch’s leadership on this issue and urge Congress to pass this common-sense legislation.”
“The Plug Offshore Wells Act would bring some much-needed accountability to enforcing the oil and gas industry’s decommissioning obligations in our ocean. While much work lies ahead to ensure that industry, not taxpayers, pay for cleaning up abandoned wells and platforms, this is a critical step forward in the enormous challenge of transitioning to a future where the ocean is a source of climate solutions, not climate problems,” said Sarah Guy, Executive Director, Ocean Defense Initiative.
“Abandoned oil and gas infrastructure, including offshore wells and platforms, pose an increasing risk to the health and safety of our communities and environment. They also highlight the failure of numerous oil and gas companies to follow the law and responsibly decommission such infrastructure in a timely manner. Surfrider Foundation strongly endorses the Plug Offshore Wells Act and appreciates the leadership of Senator Welch in introducing this bill. We call on Congress to pass this important legislation into law,” said Pete Stauffer, Ocean Protection Manager, Surfrider Foundation.
Learn more about the Plug Offshore Wells Act.
Read the full text of the bill.
###