Notice2023-23146
Request for Information To Inform the Orphaned Wells Program Office's Development of Regulatory Improvement Grants Under the Bipartisan Infrastructure Law
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 20, 2023
Issuing agencies
Interior Department
Abstract
The Orphaned Wells Program Office (OWPO) invites public comment to help inform its efforts in determining how to best structure the Regulatory Improvement Grant (RIG) program, pursuant to section 40601 of the Infrastructure Investment and Jobs Act, also referred to as the Bipartisan Infrastructure Law (Act).
Full Text
<html>
<head>
<title>Federal Register, Volume 88 Issue 202 (Friday, October 20, 2023)</title>
</head>
<body><pre>
[Federal Register Volume 88, Number 202 (Friday, October 20, 2023)]
[Notices]
[Pages 72528-72530]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-23146]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Office of the Secretary
[220D2641EA; DS61830000; DEA100000.000000; DX61801; Docket No. DOI-
2023-0014]
Request for Information To Inform the Orphaned Wells Program
Office's Development of Regulatory Improvement Grants Under the
Bipartisan Infrastructure Law
AGENCY: Orphaned Wells Program Office, Department of the Interior.
ACTION: Request for information.
-----------------------------------------------------------------------
SUMMARY: The Orphaned Wells Program Office (OWPO) invites public
comment to help inform its efforts in determining how to best structure
the Regulatory Improvement Grant (RIG) program, pursuant to section
40601 of the Infrastructure Investment and Jobs Act, also referred to
as the Bipartisan Infrastructure Law (Act).
DATES: Respondents are invited to submit comment to the OWPO by
December 19, 2023.
ADDRESSES: Comments may be submitted through <a href="https://www.regulations.gov">https://www.regulations.gov</a> and will be available for public viewing and
inspection. This request can be located by typing the Docket number
DOI-2023-0014 in the <a href="http://regulations.gov">regulations.gov</a> search box. For best results, do
not copy and paste the number. Instead, type the Docket number into the
search box, including the hyphens. Comments are submitted by clicking
``Comment.''
FOR FURTHER INFORMATION CONTACT: Susan Lee, Division Chief, State
Orphaned Wells Program, OWPO, (202) 579-1907 or by email at
<a href="/cdn-cgi/l/email-protection#c7b4b2b4a6a998aba2a287aea8b4e9a3a8aee9a0a8b1"><span class="__cf_email__" data-cfemail="3a494f495b5465565f5f7a535549145e5553145d554c">[email protected]</span></a>. Or contact the OWPO by email at
<a href="/cdn-cgi/l/email-protection#18776a687079767d7c6f7d74746b5871776b367c7771367f776e"><span class="__cf_email__" data-cfemail="462934362e2728232231232a2a35062f29356822292f68212930">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: The Act is a once-in-a-generation investment
in our nation's infrastructure and economic competitiveness. The Act,
which is codified at 42 U.S.C. 15907, creates a plugging, remediation,
and restoration program within the Department of the Interior (DOI) to
address orphaned wells, well sites, associated pipelines, facilities,
infrastructure, habitats, soil remediation, tracking emissions of
methane and other gases, tracking of ground and surface water
contamination, located on Federal lands, Tribal lands, and state and
private lands.
Under the Act, states may be eligible to receive the following
types of grants awarded, administered, and overseen by the OWPO:
Initial Grants, Formula Grants, and Performance Grants. There are two
categories of Performance Grants: Matching Grants and RIGs. The Act
makes $1.5 billion available to DOI for distribution to eligible states
for Performance Grants. A state that received an Initial Grant is
eligible to apply for and receive two separate RIGs, if the state meets
one or both of the following conditions during the 10-year period that
precedes its application:
(l) The state has strengthened plugging standards and procedures
designed to ensure that wells located in the state are plugged in an
effective manner that protects groundwater and other natural resources,
public health and safety, and the environment (Plugging Standards).
(ll) The state has made improvements to state programs designed to
reduce future orphaned well burdens, such as financial assurance
reform, alternative funding mechanisms for orphaned well programs, and
reforms to programs relating to well transfer or temporary abandonment
(Program Standards).
A state may apply for and receive one RIG of up to $20 million for
each of the above Standards, meaning a state may receive up to a total
of $40 million in RIGs. RIGs are subject to available appropriations
and grant application window deadlines. All RIG funds must be obligated
by the state within five years of the effective date of the award.
On January 10, 2023, Secretary Haaland issued Order 3409, which
established the OWPO to ensure effective, accountable, and efficient
implementation of the Act. The OWPO invites public comment to inform
the
[[Page 72529]]
OWPO's efforts as to how to best structure the RIG program. This
includes information from the public regarding factors the OWPO may use
in evaluating RIG applications.
Questions
Applicable to Both RIG Criteria
1. Should a specific amount of the $1.5 billion in Performance
Grant funds be set aside for Regulatory Improvement Grants? Similarly,
should a specific amount be set aside for Plugging Standards and
Program Standards?
2. A state that receives a RIG shall reimburse the United States
the amount of the grant if, during the 10-year period beginning on the
date of receipt of the grant, the state enacts a law or regulation
that, if in effect on the date of submission of the application, would
have prevented the state from being eligible to receive the grant. What
would be the most effective and administratively prudent way to address
this requirement (e.g., an annual audit, certifications to attest to
compliance, on-site reviews, etc.)?
3. Different states may require different standards, financial
reform methodology, and policies or procedures. Is there a recommended
amount of time that the revised standards, methodologies, policies, or
procedures should be in effect prior to applying for a RIG?
4. What metrics or factors should the OWPO use for measuring and
evaluating the improvements a state makes to its plugging standards or
procedures (Plugging Standard RIG) and actions a state may take to
reduce future orphaned well burdens (Program Standard RIG)? How can the
OWPO ensure for the public that actions states take will achieve the
intended purposes?
5. Should a RIG be an all-or-nothing grant, whereby an applying
state either receives the full $20 million or nothing based on a
threshold criteria? Or, should a RIG award be some portion of $20
million based on how the state's application scores on a series of
factors?
6. What are the best practices pertaining to effective methods,
policies, plugging approaches, or actions a state may use to avoid
future issues or address past issues with failed partial plugging of
wells (e.g., oil and gas wells partially plugged and converted to water
wells)?
Applicable to Plugging Standards RIGs
1. What should be considered as ``standards and procedures'' when
evaluating grant applications and awarding RIG grants (e.g., laws or
regulations, taxes or tax incentives, utilization of public funds, and
fees or assessments, state personnel and staffing)?
2. What factors or elements should be considered in evaluating
whether a standard or procedure is intended to ensure that orphaned
wells are plugged ``in an effective manner''? Should specific factors
or elements be weighed more heavily than others? Are there best
practices for determining effective well plugging?
3. Is there a specific regulatory entity (i.e., Federal agency,
state agency, Tribal agency, non-United States jurisdictions) that has
performed the best in ensuring oil or gas wells are properly plugged
and abandoned, and that the associated surface has been restored?
4. What are the standards and procedures used by the above specific
entity that were most effective in ensuring that oil or gas wells were
properly plugged and abandoned, and that the associated surface has
been restored?
5. What elements or factors should be considered in determining
whether an entity has plugged a well effectively? Similarly, what
elements or factors should be considered in determining whether the
associated surface has been restored? Do standards or best practices
exist? If so, what are they?
6. Are there any particular standards or procedures, or lack of
addressing certain aspects in standards or procedures, that should
disqualify a state from receiving a Plugging Standards RIG? If so, what
are they and why?
7. What is the best approach for identifying the ways in which a
state's plugging standards and processes have been strengthened to
achieve proper plugging and abandoning of oil and gas wells? What is
the best approach for measuring or quantifying the ways in which a
state's previous standards and processes were adequate or inadequate?
8. What factors or elements should be considered when evaluating
whether a standard or procedure will affect each of the following: (1)
groundwater; (2) public health and safety; and (3) natural resources or
the environment?
9. Should the evaluation of a state's application be based on a
criteria that focuses on the text and structure of the state's plugging
standards and procedures that are specifically identified in the
application, or should an approach be taken whereby an applicant state
is free to implement any standards or procedures, and take any
resulting action, so long as the state can demonstrate how its actions
will protect groundwater and other natural resources, public health and
safety, and the environment? If the later approach is taken, how might
a state demonstrate effectiveness in protection of groundwater, natural
resources, public health and safety and the environment?
10. Are there any other thoughts, innovative approaches, or
comments pertaining to the administration of the RIG program?
Applicable to Program Standards RIGs
1. What changes to state programs designed to reduce orphaned well
burdens should be considered in evaluating a state's Program Standards
RIG application? Should the improvements include changes to
procurement, budgeting, staffing, or other actions of state governance?
2. What factors, elements, or benchmarks should be used to evaluate
a state's financial assurance reforms? Is there a state or other entity
that has the best financial assurance requirements to reduce the
orphaning of wells?
3. What factors, elements, or benchmarks should be used to evaluate
a state's alternative funding mechanisms for orphaned well programs? Is
there a state or other entity that has strong alternative funding
mechanisms for orphaned well programs?
4. What factors, elements, or benchmarks should be used to evaluate
a state's reforms to programs relating to well transfer or temporary
abandonment? Is there a state or other entity that has strong programs
related to well-transfer or temporary abandonment?
5. What state actions are likely to increase future orphaned well
burdens on the state, and why? How should those actions be reversed?
6. Should the evaluation of a state's application be based on
criteria that focuses on the text and structure of the programs
identified in the application, or should an approach be taken whereby
an applicant state is free to implement any programs it sees fit, so
long as the state can show how its programs are designed to reduce
future orphaned well burdens?
7. What are the most effective methods or best practices a state
may use to compel companies to properly plug and abandon wells at the
end of their useful life? Are there states or other entities that are
currently implementing those?
8. What are effective methods or best practices a state may use to
prevent a company from transferring its liability for plugging and
reclamation to another party that may become financially insolvent, or
will otherwise be unable to properly plug and abandon a well?
[[Page 72530]]
9. What types of state enforcement actions, policies, and
procedures have been found to result in timely well plugging and how
might they be applicable in evaluating a RIG application?
10. Is joint and several liability an effective means to prevent
taxpayers from eventually paying for plugging and reclaiming orphaned
wells, and how could or should joint and several liability be
incorporated into Program Standards? Similarly, is an assignor's
retention of well-plugging liability an effective means to prevent a
State's taxpayers from being liable, in the future, for plugging
orphaned wells? Why or why not? And if so, how could or should
retention of assignor liability be incorporated into Program Standards?
11. Are financial strength tests an effective method to gauge
whether operators will likely meet plugging, remediation, and
decommissioning requirements? If so, are there specific criteria a
state should incorporate into its financial strength tests?
12. How should idle wells and a state's approach to managing idle
wells be factored into the development and administration of Program
Standards for RIGs?
13. Are there any other thoughts or comments that should considered
pertaining to the administration of the RIG program?
Kimbra Davis,
U.S. Department of the Interior, Director Orphaned Wells Program
Office.
[FR Doc. 2023-23146 Filed 10-19-23; 8:45 am]
BILLING CODE 4334-63-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on October 20, 2023.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.