Farmington, a city of 45,000 in the northwestern corner of New Mexico, has run on a fossil fuel economy for a century. It is one of the only places on the planet where a 26-kiloton nuclear device was detonated underground to free up natural gas from the rock.
The city’s baseball team was called the Frackers, and a home run hit out of their practice park was likely to land next to a pack of gas wells. The community’s economy and identity are so tied up with fossil fuels that the place should probably try a new name like Carbonton, Methanedale or Drillsville.
Over the last decade, however, the oil and gas rollercoaster here has shuddered nearly to a halt, and one of two giant coal-fired power plants is about to shut down. The carbon corporations that have been exploiting the local labor and landscape for decades are fleeing, taking thousands of jobs with them. Left behind are gaping coal-mine wounds, rotting infrastructure and well-pad scars oozing methane.
The pattern of abandonment is mirrored in communities from Wyoming to Utah to Western Colorado to the Navajo Nation. Community leaders scramble to find solutions. Some cling to what they know, throwing their weight behind schemes to keep coal viable, such as carbon capture, while others bank on outdoor recreation, tourism and cottage industries.
Yet one solution to the woes rarely comes up in these conversations: Restoration as economic development.
Why not put unemployed miners and drillers back to work reclaiming closed coal mines and plugging up idled or low-producing oil and gas wells?
The EPA estimates that there are some 2 million unplugged abandoned wells nationwide, many of them leaking methane, the greenhouse gas with 86 times the warming potential of carbon dioxide, along with health-harming volatile organic compounds and even deadly hydrogen sulfide.
Hundreds of thousands of additional wells are still active, yet have been idled or are marginal producers, and they will also need plugging and reclaiming.
Oilfield service companies and their employees have the skills and equipment needed and could go back to work immediately. A 2020 report from the Columbia Center on Global Energy Policy found that a nationwide well-plugging program could employ more than 100,000 high-wage workers.
Massive coal mines are also shutting down and will need to be reclaimed. Northern Arizona’s Kayenta Mine, owned by coal-giant Peabody, shut down in late 2019, along with the Navajo Generating Station, resulting in the loss of nearly 300 jobs. The Western Organization of Resource Councils estimated that proper reclamation of the mine could keep most of those miners employed for an additional two to three years.
Peabody, however, still has not begun to meet its reclamation obligations. This is a failure not only on Peabody’s part but also of the federal mining regulators who should be holding the company’s feet to the fire.
Who will pay for all of this? Mining and drilling companies are required to put up financial bonds in order to get development permits, and they’re forfeited if the companies fail to properly reclaim the well or mine. Unfortunately, these bonds are almost always inadequate.
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A Government Accountability Office report found that the Bureau of Land Management held about $2,000 in bonds, on average, for each well on federal land. Yet the cost to plug and reclaim each well ranges from $20,000 to $145,000. An example: In New Mexico, a company can put up as little as $2,500 per well that costs at least $35,000 to plug.
Colorado Democratic Sen. Michael Bennet tried to remedy this last year by crafting a bill that would increase bonds and create a fund for plugging abandoned wells. Republicans kept the bill from progressing, but with an administration that touted reclamation of mines and abandoned wells in a climate-related executive order, and a new Senate in place, the bill stands a good chance of going forward.
Economic development focusing on restoring the land once miners leave is a natural fit for beleaguered towns suffering the latest bust. Plus, by patching up the torn landscape these communities will help clear the path for other types of economic development, such as tourism or recreation.
“Restoration work is not fixing beautiful machinery … It is accepting an abandoned responsibility,” wrote Barry Lopez, the renowned nature writer who died recently. “It is a humble and often joyful mending of biological ties, with a hope clearly recognized that working from this foundation we might, too, begin to mend human society.”
This piece was originally published by Writers on the Range, a nonprofit dedicated to spurring lively conversation about Western issues, and reprinted here with permission.
True enough. Only the large corporations have the financial strength to fund reclamation after shutdown. unfunded reclamation is actually an ” accrued liability ” and should be carried on the books/balance sheets of the company. This even applies to State and County gravel pits. Here in Hot Springs County, we reviewed our gravel pits and reclaimed several so that DEQ would release the County from bonding requirements. It is essential to stay current with reclamation and not get behind, which accrues liabilities, that accountants rarely identify during audits. Reclamation should be concurrent with mining/oil and gas extraction; however, this insinuates that DEQ and the Oil and Gas Commission stay on top of the matter and require companies to say current and not let reclamation costs slide and accrue. Worse case scenario is coal bed methane in the Powder River Basin where many small companies went bankrupt and left CBM wells abandoned. In some cases, the private land owners ( ranchers ) can utilize the roads, electrical power and even flow lines which can be converted to livestock water flow lines. Again, this depends on the individual private landowner – some will want full reclamation. We have a gravel pit in Hot Springs County, where based on prior agreement with the private land owner, the access road into the gravel pit will not be reclaimed but left for ranch use upon abandonment of the gravel pit. This whole matter requires an abundance of awareness and caution.