Louisiana’s Department of Conservation and Energy has selected Houston-based Garner Environmental Services and Lafayette-based Lemoine Disaster Recovery to lead the first phase of a major effort to plug and clean up orphaned oil and gas wells in north Louisiana, The Center Square reports.
Supported by at least $30 million in federal funding, the program will focus on the Monroe and Shreveport districts, which contain more than 4,200 of the state’s roughly 6,400 documented orphaned wells. Many were abandoned after oil and gas market downturns, including the 2014-2016 supply glut and the 2020 pandemic-related collapse in demand.
State officials say past bonding and oversight requirements were insufficient to prevent companies from leaving wells behind, a problem highlighted by recent reports by the Louisiana Legislative Auditor’s office. In response, the state created the Natural Resources Trust Authority to require stronger financial assurances from active operators and transferred oversight of the cleanup program to the Department of Conservation and Energy.
Because northern wells cost about $46,000 to plug compared with roughly $94,000 in south Louisiana, the federal funding will target the north while state-generated restoration funds continue supporting southern cleanup efforts.
Garner and Lemoine will each manage at least $15 million in work, with the overall effort expected to take three to five years. Officials also expect the program to create work for Louisiana oil field service companies, which may serve as subcontractors. The department has encouraged contractors to prioritize in-state firms, while industry representatives have expressed willingness to work with regulators on the new requirements.
The Center Square has the full story.
