Frequently Asked Questions
90% of Texans support well cleanup.
72% of Texans agree the oil industry should pay the costs.
If you believe that oil companies should be paying for the clean-up of their wells and facilities, you are not alone. Recent public opinion research (and here) in Texas and other oil-producing states shows a broad-based support approaching 90% for requiring clean-up, and a strong super-majority of 72% support for requiring the oil industry to pay the costs. Support remained strong despite the costs involved, and respondents increased support when they understood the benefits of training and jobs for local communities.
The following are answers to high level questions. Head to Research for more information.
WELL STATUS AND SIGNIFICANCE
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“Idle” means that the well is not actively in use, and the Railroad Commission of Texas (RRC) defines “inactive” as not actively used for the last 12 months. “Orphaned” wells are inactive (or previously plugged) wells that have become the responsibility of the state because the oil and gas company has gone bankrupt or is no longer financially capable of meeting the responsibility to plug and clean-up the wells.
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The RRC maintains the official list of orphaned wells, and it uses two criteria: 1) wells have not been active for at least 12 months, and 2) the operator’s license to operate (Form P-5 with RRC) has not been valid for at least 12 months.
As long as the P-5 form for the operator’s license is renewed, its wells are not regarded as orphans regardless of how many of their wells are inactive. Sometimes oil and gas companies cease to exist by filing bankruptcy, but often companies merely dissolve and disappear without sufficient assets to require a formal bankruptcy in court. In other cases, a previously-plugged or very old well joins the list of orphans because it is discovered to exist or starts to leak after the previously responsible party has dissolved.
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No. A well can still be producing oil or gas and be at high risk of being orphaned.
Many low-producing wells generate only enough revenue to cover day-to-day operating expenses, and in some cases may continue to operate while losing money.
Inactive wells and wells operating at a loss are liabilities to their owner offset by the possibility of a future change in circumstances. But a producing well can become a net burden on the company if the future cost of plugging and clean-up exceeds all of the expected future profits of operations.
Many oil companies own only low-producing and idle wells.
Older, poorly-maintained wells can present many of the same risks associated with orphaned wells even while still producing, including leaks, equipment failures, surface contamination, and long-term plugging liabilities.
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Texans in every corner of the state risk bearing the financial cost of plugging and cleaning up after the operator reaps the profits and walks away.
Old, unplugged wells create a range of problems for landowners and communities. More than just an eyesore, wells and the equipment around them can limit how land is used and affect property values. They may release harmful gases, including methane, hydrogen sulfide, and volatile organic compounds. They can also release oil or saltwater at the surface — occasionally as geysers or sinkholes — contaminating soil, surface water, and groundwater. Those living closest to these wells face the greatest risk.
The costs fall on Texans more broadly. Most orphaned well plugging is paid for through industry fees deposited into the Oil and Gas Regulation and Cleanup Fund, but that funding has not kept pace. In 2025 the Legislature appropriated an additional $100 million for the Railroad Commission's State Managed Plugging Program — the largest one-time infusion in the program's history — and Texas has been awarded more than $250 million in federal cleanup grants. Even so, the backlog of orphaned wells continues to grow. Looking forward, the RRC has announced that it will again seek another $100 million from the General Fund to plug wells.
Unless more is done to address this problem, Texas taxpayers will ultimately be on the hook to plug the inactive and low-producing wells their operators leave behind.
Risks and environmental impacts
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It depends.
Inactive wells do affect land use and value, but they may or may not be actively causing other problems. The threats to wells vary a good deal, and so does the ability of wells to withstand those threats. In all cases, however, the risk of failure increases over time.
Most wells have “mechanical integrity,” meaning that the reservoir fluids are physically constrained to the inside of the well’s metal casing and equipment. However, the metal and cement used to create that integrity can both decay.
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Some clues are obvious, but more consequential failures cannot be identified by observing the surface.
Leaks from the equipment into the air or onto the surface are obvious, and gas migrating through the soil to the surface can sometimes be identified as distressed, dead or absent vegetation. But fluid flows below the surface are not visible at the surface.
Higher risk of failure or consequences of failure are created by elevated pressure or fluid levels inside the wellbore, which can be measured simply from the surface by those with the right and the training to do it safely. But the movement of gases and fluids below the surface–particularly through or into fresh water zones–cannot be determined from surface observations.
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Some risk factors are known, but well failures remain unpredictable.
The stresses and threats of failure vary widely across areas based on things like the humidity of the air, the corrosivity of the oil and groundwater, the nature of zones drilled through, the nature of fluids produced, and operations conducted on the wells. [See Research for more information]
The quality of well design and construction affects how resistant wells are to these stresses. The resistance to failure tends to correlate to the oil companies responsible for drilling the wells and the service companies they hired to do the work.
The risk of failure increases with time as stress and deterioration accumulate.
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Yes, but not often.
Subsurface liquids on the ground can change the nature of the soil and can percolate down through the soil into fresh groundwater. Such spills of oil and formation brine generally occur from actively producing wells or leaking storage tanks because most idle wells do not have enough pressure remaining in the formation to bring the formation liquids to the surface (only gases).
However, nearby injection of waste water increases the pressure of fluids in the geologic formations, and this increase in pressure can be enough to lift fluids to the surface. Occasionally, high-pressure formations do create dramatic failures visible at the surface such as geysers and sinkholes.
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Yes.
Natural gas escapes more readily than oil or salt water. Depleted formations often hold enough pressure to push gas to the surface wherever a path exists, usually the wellhead or surface equipment.
The main component of natural gas is methane, which is invisible and has no odor. Methane is also a powerful greenhouse gas, responsible for roughly 30% of global warming to date.
Natural gas often carries other compounds that are hazard in very small amounts. Hydrogen sulfide (H2S) is toxic at low concentrations. It smells like rotten eggs at first, but it deadens the sense of smell as concentrations increase, so odor is not a reliable warning. Benzene and other volatile organic compounds are carcinogens and are more likely to be present when you can smell crude oil.
Detection requires specialized equipment and handheld gas detectors are widely available and can be inexpensive.
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Yes, but the frequency is not clear. Improperly maintained or degraded wells that are unplugged can pollute groundwater resources by forming a pathway for contaminants from the subsurface.
Protection of groundwater has been for decades a primary justification for plugging wells. And despite the difficulties of proving a cause for contamination, there are documented instances of groundwater pollution from unplugged wells. The bigger question is the unquantifiable risk.
Groundwater quality is not universally tested, so it is not always identified. When contamination is found, the cause can be very difficult to interpret, and often the cause is never determined. Only a small volume of contaminants is enough to render large volumes of water unusable for human purposes, and remediation is often impractical. So without protections, problems may become large and irreversible before they are found. We believe that the best policy is prevention.
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Most properly plugged wells perform as intended, but there are no guarantees. Some wells experience failures years or decades after they are plugged. Unfortunately, the failure rate and causes are not well understood.
The risk of failure depends on many factors, including the age of the well, how long it sat inactive before plugging, the quality of the original well construction, and the quality of the plugging work. For landowners, the greatest concerns are often surface releases of fluids or gas, damage to agricultural operations, and uncertainty about future liabilities associated with older wells.
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Warning signs include damaged equipment, leaking fluids or gas, bubbling water, nuisance odors, and distressed or dead vegetation.
However, leaks of poisonous hydrogen sulfide cannot be seen, and they cannot be smelled at dangerous concentrations. Equipment may contain fluids, and–particularly at the wellhead–those fluids might be pressurized. We strongly encourage you not to approach wells which might be dangerous and not to touch any equipment on any wellsite.
If you suspect a problem, you can contact the oil company directly. Its name and contact information should be posted on a nearby sign that also includes the well’s name. For immediate injury or fire, always call 911.
You can also contact the RRC with concerns about spills and leaks, and the Texas Commission on Environmental Quality with concerns about air emissions and odors. And you don’t have to be the landowner to report your concerns. Anyone who suspects a well is leaking or unsafe may contact the regulatory agency in the interest of protecting public health and the environment.
You can refer to this guide for more information on how to file a complaint with the Railroad Commission.
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The request needs to be made to the responsible party. For most wells, you need to contact the name of the oil and gas company listed on the sign for the well. For orphan wells, you need to contact the RRC’s program for orphan wells, the State Managed Plugging Program.
RESPONSIBLE PARTIES
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Yes, but in practice plugging can often be delayed indefinitely.
State law requires oil and gas companies to plug and clean-up wells after they quit operating. However, companies can operate a well at a financial loss or sometimes report a low level of production without actually operating the well in order to delay the regulatory requirements.
After a well stands idle for 12 consecutive months, the operator can continue delaying plugging and clean-up by meeting modest regulatory requirements.
The Texas Legislature recently passed SB 1150 to create limits for well plugging extensions for wells inactive more than 15 years; however, it also offers new extension options that risk rendering the bill less effective
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The RRC requires specific actions and methods while other kinds of contracts may require additional measures.
First, the well must be plugged by placing cement or sometimes other barriers inside the wellbore to prevent the movement of gas and liquids. State regulations set the minimum specifications for what is placed in the hole and where. Though not specified in regulations, how the work is done significantly affects the quality of the results.
Operators must remove surface equipment, tanks, pipelines, and other infrastructure, plus known contamination to the soil must be cleaned up. However, regulations do not require them to test for contamination or to restore the surface.
Contracts such as mineral leases or surface use agreements may include provisions beyond what is required by the state. For example, oil and gas companies might also be required to restore the land to support future agricultural, recreational, or natural uses. Landowners and mineral owners should check their contracts for such provisions (and consider adding them to any new contracts).
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Costs vary widely. The Railroad Commission's State Managed Plugging Program has averaged roughly $25,000 to $47,000 per well in recent years, depending on depth and site conditions. Individual wells range from around $10,000 for a shallow, straightforward plugging to well over $100,000 for a deep or complicated one.
Plugging the wellbore is only part of the job. Removing surface equipment and materials typically adds thousands to tens of thousands of dollars per site. Remediating pollution, where it is needed, can cost several times the plugging itself. A national study in Environmental Science & Technology found a median cost of about $76,000 per well nationally.
Expected costs increase with the inflation of oilfield services, and the contingency costs increase as wellbores age and decay.
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Yes, but they don’t cover much.
Texas requires companies to post financial assurance, often called a bond, as an intended guarantee that wells will be plugged if the company fails to do it.
However, the required bond amounts have not been consistently updated; now they are a fraction of the cost of plugging the well. Companies with more than 100 wells can provide a single blanket bond of $250,000 covering the entire group of wells. For a company with 500 wells, that bond would cover $500 per well against a plugging cost that is typically tens of thousands of dollars. Research by Commission Shift found that bonds cover clean up costs for less than 3% of Texas’ unplugged wells.
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Item For over a hundred years, state law has required oil companies to plug and clean up their wells. Still, since 1984, the state of Texas has already taken over responsibility for and plugged nearly 50,000 wells in addition to its remaining backlog of about 12,000 wells. This brochure from the RRC highlights its successes as one of the oldest and largest orphaned well programs in the country.
Historically, plugging was paid for using dedicated funds collected from the oil industry. The fee for a new drilling permit was earmarked for clean-up rather than used for other operations of the agency. In fiscal year 2025, the total cost of the state plugging and clean-up programs reached $88 million. Still, the need out has outstrip available dedicated funds.
Under a 2022 law, Texas has already received $254 million dollars from the federal funds, and federal programs may grant another $120 million to Texas.
The RRC requested $100 million from the state’s General Fund in 2024 and obtained the funds in 2025.,
At that time, the program had a backlog of nearly 9,000 orphaned wells. Today, despite the fastest pace of plugging in its history, the backlog has grown to over 12,000 wells. In September 2026, one of the RRC Commissioners testified to the state legislature that it would be requesting another $100 million.
By our estimation using historical records of plugging and clean-up costs, the current backlog of orphaned wells will cost over $1.2 billion to plug and clean up, and the population of at-risk wells represents tens of billions of dollars of unsecured liability. description
About Idle Wells
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A well may be idled for a few months to perform routine maintenance. Keeping a well idle for many months may indicate the well costs more to operate than the value of the oil or gas it is producing based on current commodity prices.
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Yes, but it's uncommon, and it becomes less likely the longer a well sits.
EDF's analysis of Texas wells found that only about 23% of inactive wells return to production after five years of inactivity. After 15 years, only about 6% do. When a well does come back, the incremental production is almost always small compared to what it produced before — and that incremental amount shrinks the longer the well has been idle.
This tracks with how operators behave. Companies keep wells producing when there is money to be made, so a well left inactive is usually one without a clear path to profit. Operators may hold onto it anyway, betting that prices will rise, that new technology will improve the economics, or that the lease will become valuable later. But that is a hope, not a plan.
Meanwhile, companies face a strong financial disincentive to clean up the well or release the lease back to the mineral owners. Some produce wells intermittently — or report production without sales — to avoid challenges from the regulator or the mineral owner while keeping the well essentially idle.
Balancing the possibility of future value against the growing risks and costs of prolonged inactivity is one of the central questions facing Texas.
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Until the 1980s, wells were required to be plugged or reactivated within 12 months. Following the price collapse of 1986, the RRC changed the regulations to allow wells to stand idle as long as they pass a test of mechanical integrity every five years.
In 2025, the Texas Legislature passed SB 1150, which takes a modest step toward limiting the time a well can stand idle: Wells can only be inactive for 15 years unless they are less than 25 years old or unless the RRC grants an extension. (To make your voice heard as the RRC considers how to grant exceptions, you can reach out to us on the Contact Us page or submit your comment directly to the RRC.)
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The oil industry is exploring several alternative uses for non-productive wellbores — geothermal heat and power, underground storage of carbon dioxide or hydrogen, and mineral extraction from brine, among others. The outlook is limited.
Most of these remain in the research or pilot phase, and none has reached commercial viability at scale. Even if one does, no single technology would work in all or even most wells. Each has its own requirements for depth, temperature, geology, well condition, and proximity to infrastructure or demand — and at best, each would fit a fraction of the unplugged wells in Texas.
Meanwhile, wellbores continue to age and corrode while operators wait for a possibility that may never arrive. An older, degraded well is a poorer candidate for reuse and a more expensive one to plug. And repurposing does not remove the obligation: at the end of any alternative use, the well still has to be properly decommissioned. It defers the cost rather than eliminating it.