Report: Require high bonds to avoid well costs
GRAND JUNCTION, Colo. (AP) — A recent report suggests regulators should consider raising required levels of bonding for oil and gas development to help assure funding is available to plug wells and reclaim pads when that responsibility falls to the state.
The Grand Junction Daily Sentinel says Colorado Oil and Gas Conservation Commission staff prepared the report following meetings with a technical working group including industry, environmental, local government and other representatives.
It was completed to comply with an order by Gov. John Hickenlooper in response to a growing problem in the state with what are often called “orphan” or “orphaned” wells. These are wells for which a company is unable or unwilling to plug the well, or no owner or operator can be found.
The recommendations were made in anticipation of the oil and gas commission considering new bond rules next year based on Hickenlooper’s order.
Information from: The Daily Sentinel, http://www.gjsentinel.com