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119-hr-10721119th Congress

Stop Orphaned Wells Act

Sponsored By: Representative Ansari, Yassamin [D-AZ-3]

Introduced

Summary

Hold operators financially responsible for cleanup. This bill replaces blanket bonds with project- and operator-specific financial assurances, raises minimum bonding, and adds fitness-to-operate and strict transfer controls to reduce orphaned wells and taxpayer liability.

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  • Operators and lessees face tougher bonding and oversight. They must post project- or operator-specific assurances with minimums of $200,000 per surface‑disturbing activity or $650,000 per operator within a State, and the Secretary can raise amounts based on risk.
  • Communities and the environment gain stronger protections and tracking. The bill targets at least 140,000 documented orphaned well sites and requires public inventories, reporting, and tighter rules to cut risks from the more than 15,000 wells BLM estimates on Federal land.
  • Transfers, buyers, and investors meet stricter tests before taking on leases. Transfers need Secretary approval, fitness certification, financial disclosures, and can be denied for bankruptcy, lack of an investment‑grade rating, or poor debt ratios.

*Authorizes $30.0 million annually for FY2028–2032 to carry out disclosure and enforcement provisions.*

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 1 costs, 3 mixed.

New operator fitness certification

If enacted, the Secretary would bar issuing, extending, or approving transfers of Federal oil or gas leases, permits, or rights to a party unless that party is certified as fit to operate. Certification would check past safety and environmental compliance, financial solvency, and capacity to pay decommissioning costs. Certification would be checked each year. The Secretary could suspend certification, halt authorizations, impose fines, and require extra financial assurance equal to expected cleanup costs. The Secretary must issue or revise rules within one year; the approval restriction would begin when those rules are issued or revised.

Public reports and funding for oversight

If enacted, the Secretary would report to Congress within one year after issuing fitness rules and then annually. Reports would list persons holding active or inactive Federal oil and gas authorizations who failed to meet standards, identify which standards were missed for each authorization, and describe enforcement actions. The bill would authorize $30 million for each of fiscal years 2028 through 2032 to carry out these disclosure and enforcement duties. Congress would still need to appropriate the money.

Tighter rules for inactive wells

If enacted, the Secretary would issue rules to reduce idled, temporarily abandoned, and shut-in Federal wells. Operators would need approval to keep a well temporarily abandoned for over 30 days and would get one-year designations that can be renewed. Within 4 years after temporary abandonment, operators would need to reclaim the well, resume production or use it for injection/disposal, or submit a detailed plan and timeline. For shut-in wells, operators would verify mechanical integrity within 3 years and then within 4 years either permanently abandon, restart, or submit a beneficial-use plan. The Secretary could grant a single one-year delay if verifiable progress is shown.

Higher bonds and bonding triggers

If enacted, operators would need stronger financial assurance before starting surface-disturbing activities on Federal leases. Minimums would be $200,000 per such activity on an individual lease and $650,000 for all an operator’s leases in a State. Nationwide blanket bonds would be phased out and must be replaced within one year. If an operator’s idled wells reach at least 50% of its wells, the Secretary would require a full liability bond covering estimated reclamation and remediation costs for all its operations. The Secretary would review assurance at least every five years and before transfers and could require higher amounts and inflation adjustments.

Stricter lease transfers and liability rules

If enacted, a leaseholder could not transfer a covered Federal lease without prior Secretary approval. Transfer applications would need detailed financial risk assessments, inventories of leases and wells, and enforcement histories. The Secretary would post proposed transfers and allow at least 30 days for public comment, then decide within 90 days and notify the leaseholder within 5 days. The Secretary must deny transfers where the proposed lessee has bankruptcy filings, lacks investment-grade credit (unless guaranteed), lacks a safe five-year operations record, or is a subsidiary with a debt-to-equity ratio of 2:1 or more without a parent guarantee. Conditional approvals can require extra bonding. The Secretary would also issue rules so assignors remain responsible for obligations that accrued before an approved transfer, including plugging wells, removing facilities, and compensatory royalties.

Sponsors & CoSponsors

Sponsor

Ansari, Yassamin [D-AZ-3]

AZ • D

Cosponsors

  • Rep. Huffman, Jared [D-CA-2]

    CA • D

    Sponsored 10/5/2026

  • Rep. Grijalva, Adelita S. [D-AZ-7]

    AZ • D

    Sponsored 10/5/2026

  • Rep. Min, Dave [D-CA-47]

    CA • D

    Sponsored 10/5/2026

  • Rep. Simon, Lateefah [D-CA-12]

    CA • D

    Sponsored 10/5/2026

  • Rep. Brownley, Julia [D-CA-26]

    CA • D

    Sponsored 10/5/2026

  • Rep. Neguse, Joe [D-CO-2]

    CO • D

    Sponsored 10/13/2026

Roll Call Votes

No roll call votes available for this bill.

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