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Orphaned Wells

Congress funded a fraction of the wells it promised to plug

Summary

The Infrastructure Investment and Jobs Act put $4.677 billion into plugging America's abandoned oil and gas wells — a one-time appropriation with no renewal built in. Four years on, that money has closed about 10,500 wells, roughly 7% of the 141,959 states have already confirmed, before counting the hundreds of thousands nobody has found yet.

By Locusta · July 9, 2026

An orphaned well is a hole in the ground nobody will admit to owning: the company that drilled it dissolved, went bankrupt, or simply walked away, and now the well leaks methane, brine, and sometimes oil into the land around it until someone plugs it with cement. In 2021, Congress decided that someone would be the federal government, and wrote a check: $4.677 billion, once, under Infrastructure Investment and Jobs Act Section 40601. Four annual reports later, the size of the problem the check was supposed to solve is coming into focus — and it is much larger than the check.

Appropriated, one time
$4.677B
IIJA Sec. 40601, 2021–2030
Wells plugged to date
10,518
Jobs created, FY2025
5,217
from $479.9M obligated that year

Follow the dollar

The money was never a trust fund — no dedicated tax refills it, the way fuel taxes refill the Highway Trust Fund. It is a single appropriation, split six ways and authorized to run through fiscal year 2030.

Where the $4.677 billion orphaned-wells fund goes
IIJA Section 40601 appropriation by program area, allocated 2021
IIJA Section 40601 (2021)$4.7BState Formula Grants$2BState Performance / Matching Grants$1.5BState Initial Grants$775MFederal Program — federal lands & waters$250MTribal Program$150MIOGCC coordination$2M
Source: U.S. Department of the Interior, Orphaned Wells Program Office, FY 2025 Annual Report to Congress (Nov. 2025)
View data as table
IIJA Section 40601 appropriation by program area
State Formula Grants$2.0Bof $4.275B State Program
State Performance / Matching Grants$1.5Bof $4.275B State Program
State Initial Grants$775Mof $4.275B State Program
Federal Program$250Mfederal lands & waters
Tribal Program$150M14 Tribes + BIA, through FY2025
IOGCC coordination$2Mmultistate coordination

Most of it — $4.275 billion — goes to states and private land through the State Program, split further into Initial Grants (up to $25 million per state, to get plugging operations off the ground), Formula Grants (scaled to each state's own inventory), and Performance Grants that match states dollar-for-dollar above their 2010–2019 baseline spending. A smaller $250 million funds wells on federal land — the U.S. Fish and Wildlife Service alone plugged 564 of them with its $64 million share — and $150 million goes to 14 Tribes and the Bureau of Indian Affairs. None of these categories renew. Whatever isn't obligated by the statutory deadline doesn't get spent.

The backlog didn't wait

By the close of fiscal year 2025, federal, state, and Tribal recipients had plugged about 10,518 wells combined with money — 231 on federal land, 10,257 through the State Program, 30 on Tribal land, per the Orphaned Wells Program's FY2025 report to Congress. Set that next to what states themselves have confirmed exists.

Wells plugged vs. the documented backlog
Cumulative count, wells; documented inventory excludes an estimated 250,000–740,000 undocumented wells
Documented orphaned wells, 2020
92,203
Documented orphaned wells, 2023
141,959
Wells plugged with IIJA funds
10,518
Source: DOI Orphaned Wells Program Office, FY 2025 Annual Report to Congress, citing IOGCC state surveys
View data as table
Documented orphaned wells vs. wells plugged with IIJA funds
Documented orphaned wells, 202092,203IOGCC member-state survey
Documented orphaned wells, 2023141,959IOGCC survey, 29 states reporting, as of Dec. 31, 2023
Wells plugged with IIJA funds to date10,518federal 231 (Sept. 2025) + state 10,257 (June 2025) + tribal 30 (Sept. 2025)

The Interstate Oil & Gas Compact Commission counted 92,203 documented orphaned wells across its member states in 2020. By the end of 2023, with only 29 states reporting, that count had grown to 141,959 — a 54% jump the program's own report attributes mostly to better counting, not a sudden wave of new orphaning. Which is itself the point: for years, no one was looking closely enough to know the real number. IOGCC's separate estimate of undocumented wells nationwide — 250,000 to 740,000 more — isn't even on the chart, because it's a range, not a count anyone can point to.

Do the arithmetic on what's already public: $1.85 billion has been distributed since 2021, cumulative through FY2025, against 10,518 wells plugged — roughly $176,000 a well. At that rate, the roughly $2.8 billion still unallocated buys perhaps 16,000 more wells before the one-time appropriation runs out. Add it up and the fund tops out around 26,000 to 27,000 wells plugged, against 141,959 the states have already confirmed — under a fifth of a backlog that itself doesn't count the undocumented wells.

The fund also wasn't spent smoothly. On January 20, 2025, Executive Order 14154, "Unleashing American Energy," directed agencies to pause disbursement of and Inflation Reduction Act funds pending review — freezing over $3 billion in still-unspent orphaned-well money and stalling state plugging programs for months, per High Country News reporting at the time. The program's own FY2025 report notes "Revised Grant Guidance" published that July, which eliminated "non-statutory requirements" to speed disbursement back up — the same money, moving again, under a different set of priorities. What it produced in FY2025 was real: 5,217 jobs, by the program's own estimate, from $479.9 million obligated that year, plus 5,259 acres of formerly contaminated land reclaimed for farming, habitat, or redevelopment. What it didn't produce is a plan for the wells still left when the appropriation, and the decade it was authorized for, both run out.

The takeaway

  • The fund is real and it works. $1.85 billion has plugged over 10,500 wells, created thousands of jobs, and reclaimed thousands of acres — this isn't a program that failed to spend its money.
  • It was never sized for the job. At the rate the money has gone so far, the entire $4.677 billion appropriation closes out under a fifth of the 141,959 orphaned wells states have already confirmed — before counting the hundreds of thousands more nobody has found.
  • It doesn't renew. Unlike a trust fund with a dedicated tax, this is a single appropriation authorized through FY2030. When it's spent, Congress has to act again, or the rest of the backlog stays exactly where it is: in the ground, leaking.

Well-count and funding figures span reporting cutoffs that differ by a quarter across the federal, state, and Tribal programs (September or June 2025), as published in the source report; the $176,000-per-well and resulting well-total figures are this piece's own arithmetic on those published numbers, not a program estimate.

Sources

  • U.S. Department of the Interior, Orphaned Wells Program Office — 2025 Annual Report to Congress (Nov. 2025), the source for the $4.677 billion appropriation and its six-way split, cumulative and FY2025 distribution figures, wells-plugged counts by program, the 5,217 FY2025 jobs estimate, and the IOGCC-sourced well-inventory figures. doi.gov
  • U.S. Department of the Interior — Orphaned Wells Program overview, grant structure and program background. doi.gov/orphanedwells
  • Interstate Oil & Gas Compact Commission — Idle and Orphan Oil and Gas Wells: State and Provincial Regulatory Strategies (2020 survey base), the original count of 92,203 documented orphaned wells. oklahoma.gov
  • Federal Register — Executive Order 14154, "Unleashing American Energy" (signed Jan. 20, 2025; published Jan. 29, 2025), Section 7, directing the pause in /IRA fund disbursement. federalregister.gov
  • High Country News — reporting on the funding freeze's effect on state well-plugging programs in early 2025. hcn.org
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