|
The cost of cleaning up oil and gas wells on national public land could be more than $17 billion, according to a new report from Public Citizen. The report found that drillers have only secured bonds for one to six percent of the potential total cleanup cost, leaving taxpayers exposed for the rest if oil companies go bankrupt.
The Biden administration is in the process of finalizing rules that would increase the bonding rates required to drill on public lands, to more fully cover the cost of cleaning up abandoned wells.
In its report, Public Citizen looked at more than 89,000 active wells on public land. Based on reclamation costs between $35,000 and $200,000 per well, the full cost of cleanup would be between $2.9 billion and $17.7 billion. Based on the average bond posted by oil companies in a 2019 Government Accountability Office report, existing bonds could cover as little as one percent of that under the highest-cost scenario.
“The boom-and-bust nature of the oil and gas industry puts taxpayers at higher risk for well cleanup,” said Alan Zibel, research director at Public Citizen. “When prices fall for oil and gas, bad actors have an economic incentive to just walk away from their wells, leaving taxpayers in the lurch.”
Wyoming lawmakers see big bucks at Grand Teton
One day before the Wyoming land board meets to consider auctioning off 640 acres of state trust land inside Grand Teton National Park, state lawmakers are considering raising the price tag for a sale to the National Park Service. WyoFile reports legislators are ready to propose a direct sale of $100 million, nearly $40 million more than the parcel's appraised value.
The state board of land commissioners will meet tomorrow morning to consider a recommendation to hold a public auction for the land starting at $80 million. KHOL Community Radio reports a majority of the board is leaning towards delaying the auction, giving the legislature time to arrange a sale to the Park Service.
|
It’s not just about land. It’s about our identity within, it’s about our future generations. And right now, Alaska is thawing four times faster than the rest of the world, and we are seeing drastic changes, and drilling is the last thing that we need there.”
