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S. 5630

BillFederalSenateIn Committee
A bill to amend the Mineral Leasing Act to ensure sufficient bonding and complete and timely reclamation of land and water disturbed by Federal and Indian oil and gas production, and for other purposes.
About This Bill
Committee
Latest Action · September 30, 2026
Read twice and referred to the Committee on Energy and Natural Resources.
Introduced
September 30, 2026
Cosponsors (4)
4D 0R
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Summary

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The Stop Orphaned Wells Act addresses the significant problem of abandoned oil and gas wells across the United States, where an estimated 140,000 documented and up to 740,000 undocumented orphaned wells pose public health, safety, and environmental risks with no responsible party to pay for cleanup, leaving taxpayers to foot the bill. The legislation requires oil and gas operators to provide financial assurances before drilling on federal lands through individual bonds of at least $200,000 per lease and $650,000 per state, with higher requirements for companies with numerous idled wells, shifting cleanup costs from taxpayers to industry. The bill establishes new oversight mechanisms including a public database of idled and abandoned wells, strict timelines for operators to either resume production or permanently abandon wells within four years, and mandatory reviews of bond amounts every five years. It also creates a vetting process requiring Interior Department approval of lease transfers based on companies' financial health, compliance records, and operational history, with automatic denial for bankrupt applicants or those lacking adequate credit ratings and safety records. The Secretary of the Interior must establish "fit to operate" standards for companies seeking new leases and conduct annual compliance reviews, with $30 million annually authorized through 2032 to implement these new requirements.

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