Used to be in the oil and gas space. One of the biggest issues with orphaned wells is that local enforcement is so comically lax.
https://www.politico.com/news/2020/05/11/orphaned-oil-wells-...
For example, the article says PA has 200k abandoned wells, but the number is likely 500k-750k, according to Mary Kang's work.
https://www.pnas.org/content/113/48/13636
Why you ask? There is NO required security for unconventional wells (most wells on the Marcellus) and only $25k required as a blanket security. You bet that that's going to be factored into the P/L. Abandoned wells are defined by the fact that there is no existing LLC left on the title.
http://iogcc.ok.gov/Websites/iogcc/images/Publications/2019%...
>"The average cost per well ranged from $3,700 to $101,000, with most in the $10,000 to $80,000 range. The overall average for the states is $18,940."
What if you own a bunch of stripper wells like in PA? Well when they only produce <15bbl a day each for a short life time, why bother when you can dissolve eventually and start anew? If the PA DEP's permit surcharge is only $50-200, do you really think they'll make any progress?
https://www.politico.com/news/2020/05/11/orphaned-oil-wells-...
For example, the article says PA has 200k abandoned wells, but the number is likely 500k-750k, according to Mary Kang's work. https://www.pnas.org/content/113/48/13636
Why you ask? There is NO required security for unconventional wells (most wells on the Marcellus) and only $25k required as a blanket security. You bet that that's going to be factored into the P/L. Abandoned wells are defined by the fact that there is no existing LLC left on the title.
http://iogcc.ok.gov/Websites/iogcc/images/Publications/2019%...
>"The average cost per well ranged from $3,700 to $101,000, with most in the $10,000 to $80,000 range. The overall average for the states is $18,940."
What if you own a bunch of stripper wells like in PA? Well when they only produce <15bbl a day each for a short life time, why bother when you can dissolve eventually and start anew? If the PA DEP's permit surcharge is only $50-200, do you really think they'll make any progress?