Orphan Oil and Gas Well Prevention Act

The Orphan Oil and Gas Well Prevention Act (SB 11) requires oil and gas operators to set aside funds or post a bond to cover plugging costs for new wells (approved after July 1, 2025) and transferred wells, preventing them from becoming "orphaned" (wells with no responsible operator to plug them). Operators must either place money in escrow with the State Treasurer or provide a bond for new wells, and previous operators remain financially liable for plugging wells if negligence caused leaks into air, groundwater, or surface environments. Producing wells must contribute specific amounts toward plugging costs - 15 cents per thousand cubic feet of gas, $1 per barrel of oil, or one cent per gallon of natural gas liquids. The law aims to prevent environmental harm from leaking wells and reduce future costs to the state for unplugged orphaned wells.