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S5630119th CongressWALLET

Stop Orphaned Wells Act

Sponsored By: Senator Bennet, Michael F. [D-CO]

Introduced

Summary

Moves cleanup costs from taxpayers to oil and gas operators by strengthening bond rules, adding predecessor liability and transfer approvals, and requiring operator fitness certifications for activity on Federal land. The bill would tighten rules for idled, temporarily abandoned, and shut-in wells and publish an annual public database of those wells.

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  • Communities near wells: clearer oversight and a public database of idled, temporarily abandoned, and shut-in wells aim to improve transparency and public safety.
  • Operators and buyers: higher financial-assurance minimums ($200,000 per lease and $650,000 aggregate per operator in a State), replacement of nationwide bonds on a 1–3 year schedule, a 50% idled-well threshold triggering full liability bonds, and strict transfer-approval checks including credit and compliance history.
  • Federal land managers and taxpayers: establishes predecessor liability until transfers are approved and would require certification that operators are fit to operate; it also authorizes funding for oversight activities.

*Would authorize $30.0 million annually for FY2028–2032 for compliance oversight, totaling $150.0 million in authorized spending over five years.*

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 0 costs, 4 mixed.

Funding for federal oversight

If enacted, the bill would authorize $30 million each year for fiscal years 2028 through 2032 for the Secretary to carry out compliance oversight, data compilation, and related implementation. This is an authorization, so Congress would still need to appropriate the money. The funds would support federal administration and enforcement rather than direct household payments.

Rules for shut-in and abandoned wells

If enacted, operators would have to verify a shut-in well’s mechanical integrity and ability to produce within three years of shut-in. Within four years after shut-in they would have to plug the well, restart production, begin injection/disposal, or submit a detailed plan and timeline for beneficial use; a one-year delay could be granted for a legitimate future use. Wells out of service for more than 30 days could be designated temporarily abandoned for one year with renewals; within four years operators would have to reclaim, resume production, start injection/disposal, or submit a plan, with limited one-year delays for verifiable future uses.

Stricter bonding and financial assurance

If enacted, the bill would require financial assurance before starting surface-disturbing work on Federal oil and gas leases. Minimums would be at least $200,000 per lease and $650,000 per operator per State, with the Secretary able to set higher amounts and require full liability bonds if half or more of an operator’s wells are idled. Nationwide bonds would be banned and must be replaced on a one-to-three year schedule. The Secretary would adjust minimums for inflation at least annually and review assurances at least every five years and before transfers.

Public lists and idle-well database

If enacted, the Secretary would keep a public list of people and companies who failed to meet standards for Federal oil and gas leases. The list would show which standards each holder failed to meet and enforcement actions. The Secretary would also publish an annual public database of idled, temporarily abandoned, and shut-in wells under Federal authority, with the first update due within one year after regulations and yearly updates after that.

Lease limits for noncompliant operators

If enacted, the Secretary would be barred from issuing a lease or approving a lease transfer to an operator or related entity while the Secretary finds it materially failed to meet reclamation or other standards on another lease. The restriction would also cover subsidiaries, affiliates, and persons under common control with the operator and would last while the finding applies.

Predecessor liability for lease transfers

If enacted, the Secretary would issue rules within 60 days making lessees and sublessees responsible for plugging wells and removing facilities until a transfer is approved. After the Secretary approves an assignment or transfer, the prior holder would still be liable for obligations that accrued before approval, including compensatory royalties, plugging wells, and removing pre-transfer facilities.

Sponsors & CoSponsors

Sponsor

Bennet, Michael F. [D-CO]

CO • D

Cosponsors

  • Sen. Padilla, Alex [D-CA]

    CA • D

    Sponsored 9/30/2026

  • Sen. Hickenlooper, John W. [D-CO]

    CO • D

    Sponsored 9/30/2026

  • Sen. Schiff, Adam B. [D-CA]

    CA • D

    Sponsored 9/30/2026

  • Sen. Luján, Ben Ray [D-NM]

    NM • D

    Sponsored 9/30/2026

Roll Call Votes

No roll call votes available for this bill.

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