Well Blowouts in Texas Prompt $100M Emergency Funding Plea

The Texas Railroad Commission has urgently requested an additional $100 million in emergency funding from state lawmakers as it faces an escalating crisis of leaking and erupting oil wells.

The amount represents around 44 percent of the agency's entire two-year budget, underscoring the severity of the situation, as the commission struggles to manage the state's oil and gas industry effectively.

Danny Sorrell, the agency's executive director, highlighted in a recent letter that the current budget request of $226 million was insufficient to address the environmental risks posed by increasingly frequent well blowouts.

His appeal for additional funds comes just two months after the commission filed its annual budget proposal in August, indicating a pressing need for resources to protect groundwater and the environment.

Why Did the the Texas Railroad Commission Request More Funding?

Under Texas law, the commission employs a priority rating system to determine which wells require immediate attention.

For example, priority 1 wells are identified as those leaking and posing significant environmental, safety, or economic threats.

Despite limited funding, the Railroad Commission actively addresses leaking wells but has found this approach unsustainable.

In the U.S., around 140,000 orphaned wells—abandoned wells with no clear ownership—exist, with over 9,000 located in Texas, according to the Interstate Oil and Gas Compact Commission.

What causes Texas oil wells to burst?

If neglected, these wells can lead to hazardous blowouts that contaminate surrounding land with toxic substances, including hydrogen sulfide.

Recent incidents illustrate the urgency of the situation. At least eight wells have leaked or burst since last October.

For instance, an abandoned well in Imperial, near Odessa, took over two months to plug and cost regulators $2.5 million to cap and clean up.

Another well in Toyah released a significant amount of water, with containment efforts taking several weeks.

Federal funding has been allocated to address this issue: Congress approved $4.7 billion to plug orphaned wells as part of the Bipartisan Infrastructure Law in 2021.

Texas received $25 million in 2022 and an additional $80 million in January 2023, which the Railroad Commission used to plug 737 wells—approximately 10 percent of the state's estimated orphaned wells.

However, these efforts have not sufficiently mitigated the problem.

In his letter to Lt. Gov. Dan Patrick and House Speaker Dade Phelan, Sorrell emphasized the necessity of additional funding to establish a team of inspectors tasked with investigating the causes of the blowouts, which are believed to be linked to the injection of produced water.

He noted that the agency's capacity to assess and respond to these incidents is constrained by current resources.

The costs associated with plugging wells have increased by 36 percent since 2022, including expenses for labor and materials, including cement and rigs.

How Vulnerable Are Groundwater Resources?

Both industry leaders and environmental advocates have expressed support for the commission's funding request.

Ben Sheppard, president of the Permian Basin Petroleum Association, voiced backing for increased funding, highlighting the importance of utilizing industry-generated revenues for environmental protection.

Julie Range, a policy manager for Commission Shift, an oil and gas watchdog group, commended the commission's request and called for a more rigorous review process for injection wells that contribute to underground pressure and exacerbate well failures.

Experts and ranchers have long warned the commission about the environmental threats posed by these wells and their potential affect on vulnerable groundwater resources.

A study from Southern Methodist University in August linked the common practice of injecting wastewater from fracking to the well blowouts occurring in the oil-rich Permian Basin, which spans a 75,000-square-mile area across West Texas and New Mexico.

This includes additional reporting from The Associated Press