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.
Ohio Plugging Requirements
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Multi-State
Control #:
US-OG-813
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Word;
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How to fill out Plugging Requirements?
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FAQ
Of the estimated 36,000 orphaned wells in Ohio, the Department maintains a limited database with an inventory of 1,000 wells.
The Federal Orphaned Wells Program is a multi-agency effort led by the Orphaned Wells Program Office. The Law provides $250 million to federal land managers at the Department of the Interior and the Department of Agriculture to inventory, assess, plug and restore orphaned well sites.
All the debris and material need to be removed for successful plugging. 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).
Typically a new well drilled in the WNF will require, on average, a 0.69-acre well-pad area (150 by 200 ft.) to be cleared and leveled. Wells drilled to formations over 5,000 feet deep use a larger drill rig and would need a 1.1 acre (250 by 200 ft.)
The Orphan Well Program was established in 1977 to plug abandoned oil and natural gas wells. Ohio's program is recognized as one of the most well-funded and organized in the nation.
We analyze data from up to 19,500 wells and find that median decommissioning costs are roughly $20,000 for plugging only, and $76,000 for plugging and surface reclamation. In rare cases, costs exceed $1 million per well.
Procedure for Taking Over an Orphan Well The acquiring operator must have an Active P-5. The acquiring operator cannot have outstanding final orders ("639"). The acquiring operator must be a "bonded operator" (Opt 1 or 2 financial assurance in the form of a performance bond, letter of credit, or cash deposit).
