The funding for this work began in 1995 through the passage of Act 308, P.A. 1994, which established an Orphan Well Fund within the Michigan Department of Treasury. The Orphan Well Fund is subject to Part 616, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended. The revenue for the Orphan Well Program comes from a severance tax on the oil and gas industry. Two percent of the severance tax revenue, but not less than $1 million, is credited to the fund annually. Since its inception, almost 400 sites have been restored and wells have been plugged. The GRMD averages between 5 and 10 well pluggings per year with monies from this fund.
Beginning October 1, 2022, GRMD began utilizing federal grant funds awarded under the Infrastructure Investment and Jobs Act (IIJA), 2021, also known as the Bipartisan Infrastructure Law Section 40601 (BIL), to provide additional financial assistance for the Orphan Well Program. The IIJA created three types of grants for states to apply for to help address orphan wells and orphan facilities on federal, state, tribal, and private lands. Michigan has been awarded $25 million dollars in Initial Grant funds, has applied for approximately $5.8 million in Formula Grant funds, and will apply for Performance Grant funds when the application window opens. This additional funding allowed the Orphan Well Program to plug approximately 200 orphaned wells in calendar year 2023. It is anticipated that work will continue for years while also expanding into environmental remediation of contaminated soils and groundwater at orphaned sites. A yearly Orphan Well List is compiled by staff which lists the wells scheduled to be plugged and those at which interim response, remedial investigation, remediation, or site restoration should be performed with money from the Orphan Well Fund. The List is arranged in order of priority using the score assessment determined for each well or project. Estimated costs are given for the total cost of each well or project and the cost of each phase of the project (plugging costs, interim responses, etc.) The List also shows the State House and State Senate District in which each well is located. Find the Orphan Well Fund Annual Reports on our Reports page.
