KCC outlines scale, costs and data challenges in Kansas abandoned‑well plugging program

Ryan Hoffman, conservation division director at the Kansas Corporation Commission, told the Senate Utilities Committee that Kansas has operated an abandoned well plugging program since the mid‑1990s and has plugged more than 11,000 wells with state funding since 1996.

Hoffman said the state set up two funds: a legacy fund for wells drilled before July 1, 1996, and a well plugging assurance fund for wells drilled after that date. "Since 1996, the state of Kansas has put $42.5 million into plugging abandoned wells and we've plugged in excess of 11,000 wells," he said.

The program has changed in recent years, Hoffman said, after retirements and stakeholder feedback prompted reorganization: the commission added a dedicated abandoned‑well position in each of four district offices, consolidated separate district contracting into a single statewide contract and expanded its roster to 23 plugging contractors so all contractors can bid statewide. "We created a position in each of our district offices whose sole job was to make sure that they were trying to get abandoned wells in that area plugged," Hoffman said.

Why it matters: abandoned wells can present environmental and public‑safety risks and can require costly remediation. Hoffman told the committee the program now faces higher per‑well costs and a substantial data problem that makes it hard to know precisely how many orphaned or legacy wells remain.

Program costs and federal grants

Hoffman said per‑well costs rose sharply in fiscal 2024, to an average of $18,741.37 per well, driven in part by higher cement, labor and material costs and by work on more complex sites. He told senators the program historically plugged 300–600 wells per year with state funds but that recent federal funding allowed the commission to substantially increase the pace.

Under the Bipartisan Infrastructure Law, Kansas pursued several federal funding streams. Hoffman described three types of federal grants: a time‑limited $25 million grant (which the state declined to pursue because of the rapid obligation period), a $5 million competitive grant the state did pursue, a formula grant (Kansas was awarded $33.6 million after applying), and performance and matching grants that could add tens of millions more if regulatory changes or sustained state spending commitments are made. He said, with federal funds and related activity, the commission plugged 2,513 wells between Jan. 16, 2023, and Jan. 23, 2025, exceeding initial projections by 218 wells.

Data and inventory challenges

Hoffman said a central constraint is record quality. The commission maintains multiple classifications in its database: wells on a "PL list" (6,441 entries) where the commission issued an order against an operator, entries listed as "spud" (5,068) that indicate drilling was initiated, wells classified as "drilled," and a legacy abandoned‑well database (4,566 entries) that often lacks API numbers or precise locations. He described additional subsets: about 203 wells designated to a federal plugging program that had not yet been updated in the state database.

"It's as much a data problem as it is an actual abandoned‑well problem," Hoffman said, and described recent cleanup work in District 3 that eliminated over 1,000 duplicate or misfiled records.

Technical approaches and prioritization

Hoffman described typical plugging methods and said the techniques vary by well type and geology. For eastern Kansas wells, he said crews typically run tubing and cement the casing to surface; for western disposal wells, crews may remove tubing and set plugs, then cement upward when a protected formation is encountered. He said district offices prioritize wells near communities or where contamination of groundwater used for irrigation or drinking is plausible: those receive Priority 1A status.

Questions from senators focused on cost drivers and new funding approaches. Senator Thompson asked whether the 37% cost rise for fiscal 2023–24 was driven by cement prices; Hoffman said cement and other material and labor costs were major drivers and that the statewide contracting approach now allows contractors to pass through volatile material costs. Senator Francisco asked about the schematic for western disposal wells and the Dakota formation; Hoffman explained the cementing strategy and the role of the oil and gas advisory committee in local well construction specifications.

Emerging funding approaches

Hoffman also discussed third‑party interest, including companies exploring carbon‑credit financing to plug certain wells. He said a few firms have sought memoranda of understanding with landowners to take pre‑plugging methane measurements and that some are proposing to plug wells and seek carbon credits. "I think we as a staff would be derelict if we didn't look into if there were a way that we could get carbon credits for plugging wells as well," Hoffman said, while noting no well in Kansas has yet been plugged and awarded credits.

Hoffman closed by noting industry has plugged the majority of wells in Kansas: the state plugs a small percentage compared with industry activity, and recent federal funds allowed the program to accelerate plugging, but long‑term solutions will require improved data, sustained funding and, potentially, regulatory changes to qualify for additional federal performance dollars.

Ending

Hoffman said staff would continue database cleanup, pursue available federal funds and work with the oil and gas advisory committee on regulatory changes that could reduce future abandoned‑well rates. He concluded the briefing by inviting questions from committee members.