Project Grant D22AP00166

THE OKLAHOMA CORPORATION COMMISSION OCC IS APPLYING TO THE UNITED STATES DEPARTMENT OF INTERIOR DOI FOR GRANT FUNDING TO FUND THE PROPER CLOSURE AND CLEANUP OF ORPHANED WELLS AND WELL SITES THIS PROCESS CONSISTS OF WELL PLUGGING, METHANE TESTING DETECTION, AND RECLAMATION RESTORATION COSTS THE FUNDING FOCUS WILL BE THAT OF WELL PLUGGING, METHANE TESTING DETECTION, AND RECLAMATION RESTORATION COSTS FOR THIS GRANT APPLICATION, THE OCC IDENTIFIED 1196 DOCUMENTED ORPHANED WELLS TO BE PLUGGED THE OCC RANKS ORPHANED WELLS BASED ON CONSIDERATIONS RELATED TO PUBLIC HEALTH AND SAFETY, POTENTIAL ENVIRONMENTAL HARM, AND OTHER LAND USE PRIORITIES THE TOTAL PROJECTED BUDGET COSTS ARE 33,227,823 THIS IS AN ESTIMATE BASED ON AN ORPHANED WELL COUNT OF 1,196 FOR THE FOLLOWING TASKS WELL PLUGGING, METHANE TESTING DETECTION, AND RECLAMATION COSTS GRANT FUNDING WILL BE USED INSTEAD OF STATE FUNDS GRANT FUNDING WILL BE USED IN FULL PRIOR TO ANY STATE FUNDING WELL PLUGGING BY THE OCC REQUIRES WELL PLUGGERS TO BE LICENSED FOR PULLING PIPE AND PLUGGING WELLS THE TOTAL ESTIMATED WELL PLUGGING COST IS 13,385,823 METHANE TESTING AND DETECTION TO MEASURE AND REPORT METHANE EMISSIONS FROM ORPHANED WELLS WILL BE CONTRACTED OUT TO A THIRD PARTY ADMINISTRATOR THE TOTAL ESTIMATED METHANE TESTING AND DETECTION COSTS ARE 598,000 THIS CALCULATION IS A RESULT OF MULTIPLYING THE NUMBER OF ORPHANED WELLS 1,196 BY THE AVERAGE COST FOR TESTING AND DETECTION OF METHANE 500 00 THE SELECTED THIRD PARTY ADMINISTRATOR WILL CHARGE A MONTHLY ADMINISTRATIVE FEE FOR THE ADMINISTRATIVE COSTS ASSOCIATED WITH METHANE TESTING AND DETECTION ACTIVITIES I E DATA COLLECTION AND REPORTING REQUIREMENTS OCC HAS ESTIMATED ADMINISTRATIVE COSTS TO BE 2,500,000 THIS IS THE ALLOWABLE 10 OF POTENTIAL FUNDS TO BE RECEIVED 25M THIS COST REPRESENTS THE ADMINISTRATIVE COST OF THE THIRD PARTY ADMINISTRATOR TO MANAGE THE OVERALL GRANT FUNDED ACTIVITIES TIED TO METHANE TESTING AND DETECTION OCC IS PARTNERING WITH THE OKLAHOMA ENERGY RESOURCES BOARD OERB FOR RECLAMATION AND RESTORATION EFFORTS RECLAMATION AND RESTORATION COSTS ARE ESTIMATED TO BE 16,744,000 THIS CALCULATION IS A RESULT OF MULTIPLYING THE NUMBER OF WELLS 1,196 BY THE MEDIAN COST FOR RECLAMATION PER SITE 14,000 THE 14,000 IS A HISTORICAL AVERAGE PROVIDED BY OERB ALL THE BUDGET APPLICATION NUMBERS LISTED ARE ESTIMATES ESTIMATES ARE SUBJECT TO CHANGE BASED UPON WELL AND SITE CONDITIONS AND THE FINAL CONTRACT AWARD OF A THIRD PARTY ADMINISTRATOR ESTIMATED NUMBERS WILL BE REPLACED WITH ACTUALS FOR GRANT FUNDED PAYMENT PURPOSES