GOP bill threatens taxpayers with cleanup costs for abandoned oil wells

Republicans advance legislation that could leave taxpayers footing the bill for Big Oil's mess.

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Amid growing concerns that taxpayers may bear the financial burden of cleaning up abandoned oil and gas wells on federal lands, Republican members of the U.S. House Natural Resources Committee have advanced controversial legislation. At the center of this heated debate is Rep. Lauren Boebert’s Restoring American Energy Dominance Act (H.R. 6009), which has ignited criticism from environmental advocates and ignited discussions about the potential costs that could fall on the shoulders of taxpayers.

Rep. Lauren Boebert’s proposed legislation, H.R. 6009, seeks a significant overhaul of federal regulations that govern oil and gas leasing, development, and production on federal lands. The linchpin of this bill revolves around the bonding requirements imposed on oil and gas companies operating on these lands. Public Citizen, a prominent advocate for consumer rights, has taken a firm stance against this legislation, arguing that it could place the responsibility for cleaning up after the industry squarely on the shoulders of taxpayers.

Public Citizen’s Alan Zibel warns, “Corporations awarded a lease to drill on federal land must post a bond. If the leasing corporation abandons an exploration site, goes bankrupt, or fails to plug a well securely, the posted bond covers the cost of doing so.”

A pivotal aspect of this legislation revolves around the bonding requirements for drilling activities on federal land. These bonds serve as financial security measures, intended to cover the costs associated with well cleanup in the event that companies abandon their operations. Public Citizen has estimated a staggering potential cost to taxpayers, ranging from a minimum of $2.9 billion to an alarming $17.7 billion should the bill become law. This underscores the pressing need to reevaluate and update bonding requirements to shield taxpayers from the financial burden of environmental remediation.

The influence exerted by the fossil fuel industry over lawmakers backing this legislation is a matter of grave concern. Several Republican committee members have received substantial campaign contributions from the oil and gas sector throughout their political careers. For instance, Rep. Garret Graves, a leading proponent of the bill, has accumulated campaign contributions totaling $850,945. Committee Chair Bruce Westerman follows closely with $416,575 in campaign funds from the industry. Even Rep. Lauren Boebert, in her second term, has amassed $121,150 in campaign contributions from the fossil fuel industry. This raises significant questions about the extent of the industry’s sway over legislative decisions.

Rep. Boebert has contended that smaller oil and gas companies may struggle to shoulder the updated royalties and bonds proposed by the bill. While this argument seeks to portray the legislation as a lifeline for smaller producers, the reality is more complex. Smaller companies are frequently associated with abandoning “orphaned wells” and declaring bankruptcy when market conditions decline or wells cease to be economically viable. This troubling trend ultimately leaves taxpayers saddled with the financial burden of well cleanup.

The Biden administration has embarked on a path of reforming the federal oil and gas leasing program and enhancing regulations to foster environmental responsibility. These efforts have gained traction in light of record industry profits and mounting environmental concerns. The need to update rules, which have remained largely unaltered since the 1920s, is deemed a critical step to ensure equitable returns on public resources and to hold the industry accountable for environmental damages.

The potential ramifications of Rep. Boebert’s legislation are profound. It threatens to shift an unjust financial burden onto taxpayers while enabling the oil and gas industry to evade accountability for environmental cleanup. At a time when the industry is reaping substantial profits, the call for transparency, accountability, and responsible regulations has grown increasingly urgent. The American public should not be compelled to subsidize the fossil fuel industry’s operational costs, particularly when it leaves behind environmental hazards that threaten our collective well-being.


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Alexandra Jacobo is a dedicated progressive writer, activist, and mother with a deep-rooted passion for social justice and political engagement. Her journey into political activism began in 2011 at Zuccotti Park, where she supported the Occupy movement by distributing blankets to occupiers, marking the start of her earnest commitment to progressive causes. Driven by a desire to educate and inspire, Alexandra focuses her writing on a range of progressive issues, aiming to foster positive change both domestically and internationally. Her work is characterized by a strong commitment to community empowerment and a belief in the power of informed public action. As a mother, Alexandra brings a unique and personal perspective to her activism, understanding the importance of shaping a better world for future generations. Her writing not only highlights the challenges we face but also champions the potential for collective action to create a more equitable and sustainable world.