Building a world of
resilient communities.

MAIN LIST

 

Taxpayers May Be Liable for Oil Cleanup

Bonds posted by companies with federal oil and gas leases cover only a small fraction of the projected costs of plugging wells and restoring land once the fuel is extracted, leaving taxpayers with the potential for huge cleanup bills, an Associated Press analysis of federal records shows.

The Bureau of Land Management has collected just $132 million in bonds from oil and gas companies responsible for more than 100,000 wells on federal lands. The government estimates it costs between $2,500 and $75,000 to cap each well and restore the surface area.

In the past five years, the BLM has spent $2.2 million to clean up 167 wells where operators defaulted on their bonds.

At that average rate of $13,066 per well, the shortfall between the bonds and the actual cleanup costs could leave taxpayers with as much as a $1 billion potential liability if companies reneged on their cleanup responsibilities, the AP analysis found.

The Bush administration this fall quietly shelved an eight-year effort to increase the minimum bond requirements for oil and gas drilling on federal lands.

[See original article for complete text.]

Editorial Notes: Another hidden subsidy to the oil industry. -BA

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Start your own projects. See our RESOURCES page.
Make connections via our GROUPS page.
Help build resilience. DONATE NOW.

 

This is a community site and the discussion is moderated. The rules in brief: no personal abuse and no climate denial. Complete Guidelines.


Peak Oil Notes - Mar 5

A midweek update. Oil prices have been volatile this week as traders attempt …

The Paradox of Oil: The Cheaper it is, the More it Costs

While the exact timing of the current fall in prices may have come as a …

Stranded Assets in Oil and Gas a Reality

Though climate change will no doubt prove to be one aspect of stranded …

IEA report: US shale oil growth practically zero in 2017

US growth is seen to decline to a meagre 160 kb/d by 2017. That is plausible …

Richard Heinberg on Our Renewable Future

Richard Heinberg discusses our renewable future and how to get there.

Peak Oil Review - Mar 2

A weekly roundup of peak oil news, including: -Oil and the global economy …

Oil Prices Don’t Change Because of Rig Count

Oil prices don’t change based on weekly rig count reports. Yet every …