The commission may enter public and private contractual agreements for the plugging or
replugging of oil and gas or injection wells, the removal or repair of related equipment, the
reclamation of abandoned oil and gas or injection well sites, the reclamation of saltwater
handling facility sites, the reclamation of treating plant sites, and the reclamation of oil and
gas-related pipelines and associated facilities, including reclamation as a result of leaks or spills
from a pipeline or associated facility, if any of the following apply:
1.The person or company drilling or operating the well or equipment cannot be found,
has no assets with which to properly plug or replug the well or reclaim the site, cannot
be legally required to plug or replug the well or to reclaim the site, pipeline, o
Free access — add to your briefcase to read the full text and ask questions with AI
The commission may enter public and private contractual agreements for the plugging or
replugging of oil and gas or injection wells, the removal or repair of related equipment, the
reclamation of abandoned oil and gas or injection well sites, the reclamation of saltwater
handling facility sites, the reclamation of treating plant sites, and the reclamation of oil and
gas-related pipelines and associated facilities, including reclamation as a result of leaks or spills
from a pipeline or associated facility, if any of the following apply:
1. The person or company drilling or operating the well or equipment cannot be found,
has no assets with which to properly plug or replug the well or reclaim the site, cannot
be legally required to plug or replug the well or to reclaim the site, pipeline, or
associated pipeline facility, or damage is the result of an illegal dumping incident.
2. There is no bond covering the well to be plugged or the site to be reclaimed or there is
a bond but the cost of plugging or replugging the well or reclaiming the site, pipeline,
or associated pipeline facility exceeds the amount of the bond or damage is the result
of an illegal dumping incident.
3. The well, equipment, pipeline, or associated pipeline facility is leaking or likely to leak
oil, gas, or saltwater or is likely to cause a serious threat of pollution or injury to the
public health or safety.
Sealed bids for any well plugging or reclamation work under this section must be solicited
by placing a notice in the official county newspaper of the county in which the work is to be done
and in such other newspapers of general circulation in the area as the commission may deem
appropriate. Bids must be addressed to the commission and must be opened publicly at the
time and place designated in the notice. The contract must be let to the lowest responsible
bidder, but the commission may reject any or all bids submitted. If a well or equipment is leaking
or likely to leak oil, gas, or saltwater or is likely to cause a serious threat of pollution or injury to
the public health or safety, the commission, without notice or the letting of bids, may enter into
contracts necessary to mitigate the problem.
The contracts for the plugging or replugging of wells or the reclamation of well sites must be
on terms and conditions as prescribed by the commission, but at a minimum the contracts shall
require the plugging and reclamation to comply with all statutes and rules governing the
plugging of wells and reclamation of sites.