A subset of the Methane Emissions Reduction Program under the Inflation Reduction Act
The U.S. Environmental Protection Agency (EPA) and Department of Energy (DOE) awarded the Utah Department of Environmental Quality’s (DEQ) Division of Air Quality (DAQ) $2.7 million to reduce ethane emissions from marginal (low-producing) oil and gas wells in the Uinta Basin. Grant funds are available to permanently plug and abandon marginal conventional wells (MCWs) on non-federal land. The grant program will open in late 2024 and run through September 2028, and provide incentives to voluntarily plug and abandon wells that operate on non-federal land and produce 15 barrels of oil per day or less. The program will include funding for environmental site restoration as well as monitoring to verify methane is no longer being emitted.
DAQ scientists estimate MCWs in the Uinta Basin produce an average of 48.88 tons of methane per year (CH4/yr). A reduction in approximately 831 tons CH4/yr is expected at the conclusion of the grant program. Reducing emissions from these sources is an important step in addressing the Uinta Basin’s unique air quality challenges.
Who can apply?
All oil and gas producers with marginal conventional wells on non-federal and non-tribal land are encouraged to apply. Eligible wells must be on non-federal and non-tribal land, unless a tribal entity with ownership of an eligible well and/or mineral rights consents to participation.
How?
Utah’s $2.7 million must be used in Uintah or Duchesne counties.
DAQ is working on a solicitation for a third-party contractor who is qualified to complete the required work (e.g. measure, monitor, plug, and restore) that will prioritize utilizing local businesses and labor.
Measuring and monitoring of each well that is selected through the application process will occur to determine award priority level.
DAQ anticipates the plugging and abandoning of a minimum 17 wells; the number of wells will be dependent on closure costs and potentially required cost-share. Estimates are based on an average project cost of $150,000.
DAQ may include cost-share requirements.
When?
A competitive application period is expected to be posted to this webpage in late Summer 2024. Sign up for our mailing list to be notified upon opening.
Grant recipients will have until September 30, 2028, to complete all project activities.
Requirements?
The funding is solely for the purpose of permanently plugging and abandoning wells that are considered “marginal” by definition and produce less than or equal to 15 barrels of oil per day, measuring and monitoring methane emissions pre- and post-plugging, and environmental restoration of the well site.
Applicant must:
- Be a well owner/operator in Uintah or Duchesne county, Utah
- Apply to the Marginal Conventional Well Closure Grant Program and be awarded prior to any work being performed
- Work with the DAQ-approved contractor to perform all required project activities
Eligible well must:
- Be considered “marginal” by definition and produce less than or equal to 15 barrels of oil per day
- Be on non-federal and non-tribal land, unless a tribal entity with ownership of an eligible well and/or mineral rights consents to participation
All work must be completed by September 30, 2028.
Frequently Asked Questions
When does this grant open?
DAQ expects to open a competitive application period late Summer 2024.
When does this grant close?
September 30, 2028.
Where do I apply?
Access to the application will be posted on this webpage when it opens. Sign up for our mailing list to be notified.
Can I apply for multiple well closures?
Yes.
How much grant funding will I receive?
Cost-share amounts are still to be determined. DAQ will update this page with eligible funding amounts soon.
When do I receive the grant funding?
Reimbursement will be made after all project activities are completed.
Do I have to contract the work myself?
Grant recipients will be required to work with the DAQ-selected contractor to perform all project activities.
What does permanently plugging a well entail?
Wells are permanently plugged through a process called plug and abandonment (P&A). Cement is pumped into the well to cover and isolate the zones that produce oil and natural gas.
What is the purpose of this grant?
Utah has hundreds of marginal conventional wells on non-federal land, many of which are low-producing and potentially economically challenging to operators to maintain operations and to close in accordance with regulatory requirements. These low producing wells have associated emissions of methane and VOCs that can contribute to reduced air quality in the area.
Contact
Email: mcw@utah.gov
Courtney Ehrlich: (385) 232-5157
Sheila Vance: (801) 536-4001
Christianna Johnson: (385) 441-7117