There’s no disputing that oil and gas has an outsized impact on Texas’ economy, and that’s more reason why the industry should face the growing threats it poses to groundwater quality and climate. The Texas Oil and Gas Association (TXOGA) touts the millions that flow to Pecos and Reeves County in property taxes and the billions flowing into state coffers. Billions of dollars in tax revenue can’t excuse the risks posed to groundwater by underground injection and unplugged wells that are linked to earthquakes, geysers with foul-smelling gases, and a growing toxic, salty lake. While it’s the Railroad Commission’s job to oversee the industry, we know that TXOGA members donate to the commissioners’ campaigns, hoping to soften permitting and enforcement practices at the RRC. It seems to be working.
As Texas oil and gas producers generate record profits, they’re increasingly generating financial liability and pollution risks that will be left to the state. These liabilities cost the Railroad Commission about $55 million per year, and the agency recently requested an additional $100 million in funds to deal with emergency well response and a record number of aging, failing wells that have been orphaned by this highly profitable industry.
Currently, 155,000 wells sit inactive and unplugged still on the books of active, profiting companies, with tens of billions of dollars in deferred plugging costs. Those are dollars that could be putting Texans to work to protect our water and climate.
In the report’s media briefing, TXOGA President Todd Staples noted “we also recognize that orphaned wells are a challenge and will work with the Texas Legislature to develop viable solutions.”
“If the industry can contribute billions to state coffers, it’s only fair they should also pay to clean up their messes. We are encouraged to see TXOGA commit to working with the Texas Legislature to address orphaned wells, and look forward to working with them to strengthen decommissioning cost requirements, fix transfer liability laws, and create limits to well plugging extensions.” said Julie Range, Commission Shift Policy Manager.
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