DENVER—The Center for Western Priorities today released a new analysis estimating the costs of reclaiming oil and gas wells on U.S. public lands. The first-of-its-kind analysis finds that reclaiming—plugging and cleaning up—all producible wells on federal lands could cost a potential $6.1 billion, far exceeding the $162 million in reclamation bonds that the Government Accountability Office last estimated had been provided by oil and gas operators.
The analysis, conducted by the economic consulting firm ECONorthwest, comes as the Interior Department’s Royalty Policy Committee meets Wednesday to hear suggestions for modernizing the management of oil and gas production on public lands. Re-established by Secretary Ryan Zinke, the committee is heavily skewed towards oil and gas companies, without any organization or individual representing taxpayers and the public interest.
“If Secretary Zinke is committed to guaranteeing taxpayers receive a fair share from energy development, a good place to start would be to ensure all oil and gas wells on America’s public lands are adequately bonded. That’s certainly not the case today,” said Jennifer Rokala, Executive Director at the Center for Western Priorities. “The current system leaves taxpayers holding the bag while oil and gas companies can walk away from their reclamation responsibilities, paying pennies on the dollar. It’s beyond irresponsible.”
The analysis estimates the potential reclamation costs for the 94,096 producible wells on federal lands as of Fiscal Year 2016, accounting for differences in reclamation costs based on well depth.
Oil and gas companies are required to post bonds, effectively an insurance policy, when drilling on federal lands. The bonds ensure retired wells are cleaned up and do not pose an ongoing risk to lands and water should a company abandon them or go bankrupt. It is not uncommon for companies to shirk their reclamation responsibility.
Last month, the Interior Department Inspector General warned Interior Secretary Zinke that the Bureau of Land Management does not currently have an accurate inventory of idle wells on federal land, and that idle wells “pose notable financial risk” to taxpayers and the U.S. government. The report highlighted a single BLM field office that expected 97 idle wells to become orphaned in the near future. Oil and gas companies held just $150,000 in bonds on those wells, despite an estimated reclamation cost of $1.5 million — meaning taxpayers will likely be responsible for more than $1.3 million in cleanup costs from those 97 wells alone.
The Department of the Interior has not updated bonding requirements since they were originally set in the 1950s and 60s. These outdated requirements fail to account for decades of inflation and the increasing costs to clean up ever-deeper wells created by new drilling technologies. The bond for a single well, set in 1960, still sits at $10,000. Keeping pace with inflation, that bond would be roughly $64,000 today.
According to the analysis by ECONorthwest, the average well reclamation cost is an estimated $65,200, which would be nearly covered if the 1960 bond price had been indexed to inflation. However, reclamation costs have grown in recent years as the average well depth has increased to nearly 9,000 feet. Reclaiming a typical well at that depth costs more than $100,000.
Kristin Lee of ECONorthwest added, “It is clear that bonding requirements have not kept pace with inflation and new drilling technologies. These bonds are intended to ensure that oil and gas wells are reclaimed, while disincentivizing companies from walking away without carrying out their lease obligations. But the decades-old bonding levels risk leaving taxpayers on the hook for cleaning up thousands of oil and gas wells.”
A PDF of the analysis is available for download at westernpriorities.org/bondingreport. To speak with an expert on public lands, contact Aaron Weiss at 720-279-0019 or aaron@westernpriorities.org.
For more information, visit westernpriorities.org. To speak with an expert on public lands, contact Aaron Weiss at 720-279-0019 or aaron@westernpriorities.org.
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The Center for Western Priorities is a conservation policy and advocacy organization focused on land and energy issues across the American West.
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Julia Roberts’ Smile Enhanced Her Career;
3 Reasons Yours Can Help You
Actress Julia Roberts understands just how valuable her wide, dazzling smile is to her career. She once insured that smile for $30 million.
Not everyone would place such a high price tag on their facial expressions, but a smile can make a significant difference in anyone’s career advancement, just as Roberts’ did for her, says Dr. Jamie Reynolds (www.AskDrReynolds.com), an orthodontist, national and international lecturer and author of World Class Smiles Made in Detroit.
“A smile works on both the physical and emotional level to transfer positive feelings between two people,” Reynolds says. ”A beautiful smile can communicate a sense of well-being to those who see it.”
Of course, not everyone has a brilliant smile they’re ready to show off to the world, and so they turn to whiteners, braces or other fixes to improve the look.
“I’ve had some patients who are self-conscious about their smile, and it has seriously affected them,” Reynolds says. “It made them feel timid or hesitant.”
And that’s not beneficial to career advancement.
Reynolds says a few ways that a winning smile is valuable in our efforts to land jobs or seek promotions include:
• A smile helps your self-esteem. Feeling good about your smile is an important component of self-esteem. “Too many people cover up their smile or stop themselves from smiling because of embarrassment over their teeth,” Reynolds says. “That’s a shame. A beautiful, healthy smile gives you the confidence to smile proudly and be yourself without hiding.” Exuding confidence is crucial to career advancement, whether you’re going in for a job interview, or trying to impress the boss in hopes of getting a raise or landing a better position in the company.
• A smile helps create a connection. Your smile puts others at ease. That can be advantageous during a job interview, which can be emotionally taxing as questions are asked and answered in a fashion that can seem like an interrogation if everyone doesn’t just relax. That smile can work wonders to ease the tension and create a connection with the person interviewing you.
• A smile conveys the message you are competent and productive. When you smile, you appear more likeable and courteous, which probably isn’t a surprise, but you also appear more competent, according to a study from Penn State. “That smile can go a long way if you’re looking for a promotion,” Reynolds says. “It will help you come across as a hardworking employee because studies have shown that happy employees are the most productive.”
“Employers care about whether you have the skills to do the job that they are interviewing you for, but they’re also trying to gauge whether you’re someone who would work well with others in the organization,” Reynolds says. “A smile helps make you seem more personable and can give you an edge on your competition.”
About Dr. Jamie Reynolds
Dr. Jamie Reynolds (www.AskDrReynolds.com) is recognized on an annual basis as one of the top orthodontists in metro Detroit. His book, World Class Smiles Made in Detroit, puts an emphasis on the many benefits of having a great smile. Reynolds – who is a national and international lecturer on high-tech digital orthodontics and practice management – attended the University of Michigan for both his undergrad education and dental studies, and did his orthodontic residency at the University of Detroit-Mercy.
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1 MILLION CUPS ~ OGDEN ENTREPRENUER EVENT
A free, monthly program developed by the Kauffman Foundation to
help build local startup communities and propel businesses forward!
FEBRUARY 26, 2018 (OGDEN, UT) Entrepreneurs, business leaders, academia, investors and any interested community members are invited to hear from two regional startup businesses during the next monthly 1 Million Cups (1MC) event. Join us at Weber State Downtown, 2314 Washington Blvd, Wednesday, March 7, 2018 at 8:30 a.m. for a complimentary hosted breakfast,coffee and networking. The 1MC Northern Utah community is part of one hundred-plus chapters across the United States caffeinating an entrepreneurial nation!
On the first Wednesday of each month, two regional entrepreneurs are selected from a range of applicants and invited to share their business ideas, network, and receive valuable feedback and critiques from attendees. Interested presenters or attendees are urged to visit www.1millioncups.com/ogden for more information or to register.
"We really enjoy being a community partner for this event" says Danielle Bendinelli, Layton Hills Mall Marketing Director. "A few of our tenants have presented, and it's a great way for small businesses to promote their concepts and receive feedback from a diverse crowd."
Entrepreneur presenters for the March 7, 2018 event will feature: Emily Brand, an experienced market research company that conducts innovative research for communities and businesses; and Zero Vulnerabilities, a software/app/code testing firm specializing in testing and finding any vulnerabilities from usability to performance to security.
MBA Wealth Strategies will sponsor the complimentary breakfast provided by Mahalo Catering & Events accompanied by coffee from the WSU Wildcat Store. Audio equipment support comes from Ogden Small Business Development Center; media support comes from Park City Television, The Standard-Examiner, and Indie Ogden along with marketing support this month from Lightning Man Productions Inc., Ogden Weber Chamber, and Layton Hills Mall.
To learn more about 1 Million Cups & the Kauffman Foundation: www.1millioncups.com.
About Layton Hills Mall:
Layton Hills Mall is owned and managed by CBL & Associates Properties, Inc. of Chattanooga, Tennessee, (NYSE:CBL). Layton Hills Mall features more than 100 great specialty shops and is anchored by JCPenney, Dillard’s, SeaQuest Interactive Aquarium and Dick’s Sporting Goods. Additional information can be found at ShopLaytonHills.com.
