Our region hosts an abundance of abandoned mine sites and orphaned oil and gas wells.
They contaminate our water and air with acid mine drainage and leaking methane. They are the legacy of decades of resource extraction, and unfortunately, taxpayers often end up with the liability to reclaim the damage.
The Bipartisan Infrastructure Act passed in November includes billions of dollars for abandoned mine reclamation and plugging orphaned oil and gas wells. But more importantly, rules are needed to head off the creation of future problems.
Most of us are likely familiar with abandoned mines that dot the hillsides above Silverton and elsewhere, but the ones of most concern are those draining water laden with heavy metals. Our region also contains more 30,000 oil and gas well sites, and a surprising number are inactive with rusted equipment bleeding methane, a potent greenhouse gas.
Abandoned mines and orphaned wells are derelicts without any responsible owner willing or financially capable of reclamation. These sites are not intentionally created, but creep up on us as owners change over the decades and lose interest or capacity to keep them operating. An owner might hope that metal or oil prices will spike and lead to a resurgence of extraction, but these sites have marginal reserves to begin with, and eventually owners may just walk away, leaving someone else on the hook for cleanup.
One important means to prevent these liabilities from burdening taxpayers is to require reclamation while a financially viable owner still exists. That’s the basis of Colorado’s Mined Land Reclamation Act, which allows mines to “temporarily” cease production for a limited period. If production does not resume, then it is in the interest of the state and taxpayers to make sure reclamation starts while someone responsible is still around.
The uranium mines scattered across the Dolores River basin are a case in point. Most haven’t operated for decades, but over the past 40 years owners kept hoping that uranium prices might reach a level that again spurred production. But at some point, reality needs to set in and owners should start undertaking efforts to reclaim mines. That’s the point of Colorado’s reclamation law.
Orphaned oil and gas wells are similarly vexing. A nearby example is dozens of rusting, derelict, leaking wells west of Farmington in an area called the Hogback. State and federal records list these as active, but the rust and the fact one needs a high-clearance four-wheel-drive vehicle to even reach them is ample evidence the wells haven’t produced in many years. The companies associated with them have long since vanished, with phone numbers disconnected. If today’s price of oil hasn’t spurred any renewed activity, it seems unlikely anything would.
Colorado hopes to prevent additional orphaned wells by increasing bonds posted by oil companies. The bonds ideally should be ample enough to cover the costs of plugging and reclaiming wells in the event the companies disappear, so as to keep taxpayers off the hook.
It seems common sense to head off future problems, and forestall asking for billions in tax dollars like the Infrastructure Act provides, but not all agree. Right now, the mining industry is aggressively opposing rules about temporary cessation at hardrock mines, arguing for loopholes that allow mines to be idled and largely abandoned for decades, just in case someday they might again become profitable.
The plague of abandoned mines and orphaned wells proves the worth of Benjamin Franklin’s adage that an ounce of prevention is worth a pound of cure. We can hope state officials to appropriately translate that advice into rules.
Mark Pearson is executive director at San Juan Citizens Alliance. Reach him at email@example.com.