Stop Orphaned Wells Act

Operators would have to provide financial assurances before starting work on a lease, with minimums of $200,000 for an individual lease or $650,000 for all of an operator’s leases in a state. Nationwide assurances would be barred, and higher amounts could be required based on factors such as wells, idle wells, past violations, and cleanup costs.

Operators would need approval to keep a well temporarily abandoned for more than 30 consecutive days, and would have to provide a justification and verify its mechanical integrity. The bill sets follow-up requirements for temporarily abandoned and shut-in wells, including steps to put them back to use or complete required plugging and reclamation, and requires an annual public database.

Before a covered lease could be transferred, the leaseholder would have to submit information about the proposed operator’s finances, wells, and violations. The Interior Secretary would invite at least 30 days of public comment and decide within 90 days; the bill also bars approval in specified circumstances, including lack of an investment-grade credit rating for the proposed operator and its parent company.

Before certain federal oil and gas approvals, operators would need certification based on their compliance history and financial ability to meet cleanup obligations; their compliance would be assessed annually. The bill authorizes $30,000,000 for each of fiscal years 2028 through 2032 to carry out these standards.

A former leaseholder or operator would remain responsible for obligations that arose before the Interior Secretary approved a transfer, even if those obligations were not identified at the time. The bill directs the Secretary to issue regulations on these responsibilities.