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HB 3416

New oil and Gas Well Plugging Assurance Act

2025 Regular Session Introduced by Mark Dean and 4 co-sponsors

HB 3416 - New Oil and Gas Well Plugging Assurance Act OverviewBill Number: HB 3416 Title: New Oil and Gas Well Plugging Assurance ActStatus: To House Energy and Public Works Intr

To House Energy and Public Works
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Bill Summary · HB 3416

HB 3416 - New Oil and Gas Well Plugging Assurance Act

Overview

Bill Number: HB 3416
Title: New Oil and Gas Well Plugging Assurance Act
Status: To House Energy and Public Works
Introduced: February 26, 2025

Purpose and Intent

The New Oil and Gas Well Plugging Assurance Act aims to address the growing issue of abandoned and unplugged oil and gas wells across the country. These orphaned wells pose significant environmental and public health risks, including groundwater contamination, methane emissions, and safety hazards. The bill seeks to establish a comprehensive program to ensure the proper plugging and reclamation of these wells, protecting communities and the environment.

Key Provisions

  • Requires oil and gas operators to post bonds or other financial assurances to cover the full cost of plugging and reclaiming their wells at the end of production
  • Establishes a national registry of all active, inactive, and abandoned oil and gas wells, to be maintained by the Department of Energy
  • Creates a federal grant program to provide funding for states and tribes to plug and reclaim orphaned wells on public and private lands
  • Mandates regular inspections of active and inactive wells to identify those in need of plugging
  • Imposes stricter penalties and enforcement mechanisms for operators who fail to properly plug and reclaim their wells

Affected Parties and Impacts

  • Oil and gas companies will be required to provide increased financial assurances for well plugging, which may impact their operations and profitability
  • State and tribal governments will benefit from federal grant funding to address the backlog of orphaned wells in their jurisdictions
  • Landowners and communities near abandoned wells will see reduced environmental and safety risks as more wells are properly plugged and reclaimed
  • The general public will benefit from improved groundwater quality, reduced methane emissions, and enhanced public safety in areas with orphaned wells

Procedural and Timeline Considerations

The New Oil and Gas Well Plugging Assurance Act has been introduced in the House of Representatives and is currently under consideration by the House Energy and Public Works Committee. If passed by the House, the bill will then move to the Senate for further review and potential amendments before a final vote. If enacted, the provisions of the bill would be implemented over a multi-year period, with the financial assurance requirements and well registry taking effect within 2 years, and the grant program and inspection requirements phased in over the following 5 years.

Compiled from official sources — confirm details with the bill’s official record.

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