Illinois Plugging Requirements

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Control #:
US-OG-813
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Description

This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the “standard” lease form.

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FAQ

The median cost of plugging a well without restoring the surface is about $20,000. Plugging and reclaiming the surface around the well?which may be done for aesthetic, environmental, or job creation reasons?increases the median cost to $76,000. Each additional 1,000 feet of well depth increases costs by 20 percent.

(Source: OSHA) An oil or gas well is plugged and abandoned when it reaches the end of its useful life or becomes a dry hole. These operations include activities and tasks that present hazards to workers.

Illinois Oil and Gas Act (225 ILCS 725) provides for the conservation of oil and gas resources through the protection of correlative rights, proper well spacing, integration and unitization of mineral interests; and for the regulation of the drilling, construction, operation, and plugging of oil and gas production ...

THE PLUG & ABANDONMENT PROCESS. When a well is no longer economically producing oil and natural gas, the well is evaluated for retirement and will undergo a process called 'plug and abandonment,' or P&A as it is often called.

Once the well is cleaned out, the plugging process begins by placing cement in the well through the gas and oil-producing zones. These cement plugs, at times, are spaced within the well using bentonite gel spacers (mixtures of clay and water).

A well is plugged by setting mechanical or cement plugs in the wellbore at specific intervals to prevent fluid flow. The plugging process usually requires a workover rig and cement pumped into the wellbore. The plugging process can take two days to a week, depending on the number of plugs to be set in the well.

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Illinois Plugging Requirements