Inflation Reduction Act Well Plugging

Plugging Marginal Conventional Wells through the Methane Emissions Reduction Program

Overview of the Methane Emissions Reduction Program

The Inflation Reduction Act provides new authorities under Section 136 of the Clean Air Act to reduce methane emissions from the oil and gas sector through the creation of the Methane Emissions Reduction Program (MERP). Through MERP, the U.S. Department of Energy and the U.S. Environmental Protection Agency will provide technical and financial assistance to improve methane monitoring and reduce methane and other greenhouse gas emissions from the oil and gas sector. The U.S. Department of Energy and the U.S. Environmental Protection Agency provided $350 million of those funds to assist industry in voluntarily identifying and permanently reducing methane emissions from low-producing marginal conventional wells. 

On December 1, 2023, DEC was awarded a MERP grant of $8,123,602. DEC will use this funding to collaborate with well operators or owners who volunteer select marginal conventional wells to be plugged. From the candidate pool, DEC will evaluate and select marginal conventional wells for inclusion in the program. DEC plans to package marginal conventional wells into discrete bid packages which will be publicly released and advertised. Similarly to DEC’s orphaned well program, DEC plans to contract directly with and oversee the work of registered well pluggers who will complete the plugging of the selected marginal conventional wells.

Marginal Conventional Wells

An estimated 75,000 wells have been drilled in New York and all of them must be properly plugged and abandoned when no longer active or operated in compliance with prevailing statute and regulations in order to protect ground and surface waters and to prevent excess methane emissions.

A Marginal Conventional Well (MCW) is defined as a conventional oil and/or gas well that produces less than 15 barrels of oil equivalent (BOE, i.e. 15bbl/day oil or 90,000 cubic feet (90 mcf) of gas/day or combination thereof).

Of the non-orphaned, unplugged wells that are documented in DEC’s database, over 99 percent of the oil and gas wells in New York fit the definition of MCWs. Despite DEC’s best efforts, if left unplugged, any well has the potential to fall into an advanced state of disrepair and be left orphaned and abandoned. Plugging a subset of MCWs through this funding opportunity will greatly benefit well operators or owners as well as the people of New York.

Prioritizing Marginal Conventional Wells for Plugging

As there is limited funding available for plugging MCWs, DEC will only be able to plug a select number of wells through MERP. DEC plans to prioritize wells for inclusion in this program based on each candidate well's potential risk to the environment, public health, and public safety. To ensure that the prioritization process is transparent and equitable, DEC plans to utilize the U.S. Department of Energy National Energy Technology Laboratory’s MCW prioritization and optimization tool called “PRIMO”. PRIMO is a free and open-source tool that evaluates the different criteria of each well and recommends plugging projects with the goal of balancing impact and efficiency. 

Well Prioritization for Methane Emissions Reduction Program for Marginal Conventional Wells (PDF)

Operator Participation

New York State’s application period to volunteer for consideration in MERP closed on July 15, 2025. While DEC will continue to take in applications beyond July 15, 2025, the applications received after July 15, 2025 may or may not be reviewed or considered. DEC reserves the right to open future, additional application periods as it deems necessary.

Operators may submit a maximum of ten applications, where each application has one marginal conventional well, to be considered for well plugging in this voluntary program. A complete Application for Consideration in the Methane Emissions Reduction Program includes a Voluntary Well Nomination Form and a Temporary Access Agreement, both signed in the presence of a notary public. If the use of additional properties may be required to access or plug the volunteered well, the operator must submit additional Temporary Access Agreements signed in the presence of a notary public by the relevant property surface owners. Applications must be submitted by standard courier with original ink signature to the following address: NYSDEC, Division of Mineral Resources, 625 Broadway, 3rd Floor, Albany, NY 12233-6500.

Applying for consideration in MERP does not relieve operators of any requirements in the statute and regulations, including the requirement to permanently plug and abandoned wells per 6 NYCRR Part 555.

Application for Consideration in the Methane Emissions Reduction Program (PDF)

Contracting Opportunities for Well Pluggers

DEC does not currently have any active procurement opportunities for registered well pluggers to submit bids for MCW plugging. As this program continues to develop, DEC will publicly advertise any contracting opportunities with an estimated amount of $50,000 or more. Interested well pluggers are encouraged to register with DEC by submitting an Organizational Report and to sign up for alerts on the New York State Contract Reporter website.

Community Benefits

DEC recognizes the success of this program is dependent on engagement with and participation of community and labor stakeholders. Throughout this program, DEC will identify and engage with stakeholders to publicize this funding opportunity and receive and incorporate feedback on DEC’s program. DEC will strive for and encourage investment in job quality and a skilled workforce. DEC will prioritize Diversity, Equity, Inclusion, and Accessibility by prioritizing eligible MCWs in disadvantaged communities for well plugging.

Community Benefits Plan for the Methane Emissions Reduction Program for Marginal Conventional Wells (PDF)