The U.S. Bureau of Land Management is reconsidering its policy that allows stripper wells to be shut in when sagging oil or gas prices make them uneconomic to keep on production.
BLM has a rule requiring oil and gas wells to be plugged if they do not produce but suspended it when oil prices plunged in 1986. That allowed operators to continue to hold leases.
A BLM official said about 300 stripper well operators have applied for and received suspensions of the rule.
Now BLM plans hearings to determine if economic conditions are such that suspensions should continue.
BLM also wants to explore "what criteria should be used, certification required, bonding amounts established, and/or tests required to ensure that the affected shut in wells will not pose an environmental risk or put the federal government at significant risk as to potential liability for unplugged wells."
The agency also is considering requiring operators to test the casing of shut in wells to ensure they are not leaking.
The test, to be conducted at least once every 3 years, would consist of holding a pressure of at least 1,000 psi or 70% of the internal yield of the casing being tested, whichever is less.
The test pressure would be held for a minimum of 30 min, with less than a 1 0% decline. If the well fails the test, corrective action will be taken.
BLM plans hearings on the proposals July 17 at Roswell, N.M., July 19 at Casper, Wyo., and July 24 at Bakersfield, Calif. Persons wishing to speak at the meetings may make arrangements with BLM district offices in those cities.
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