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Committee backs redirecting conservation tax proceeds to reclaim orphan wells
Summary
The committee endorsed HB80 to increase and stabilize conservation‑tax proceeds going to the oil‑and‑gas reclamation fund so the Oil Conservation Division can plug orphan wells and remediate sites; supporters ranged from industry groups to environmental organizations, while some critics urged stronger bonding and said polluters should bear costs.
Representative Murphy presented House Bill 80 and its committee substitute, which would return proceeds of the conservation tax to the reclamation fund as originally intended, gradually phasing in the distribution so the fund’s balance increases through 2028 and beyond.
Murphy said the reclamation fund currently holds about $77 million and the measure will, through procurement and legal process improvements, allow the state to ramp from roughly 50 wells plugged per year today toward 100 or more. “This fund will take care of that in 5 years,” Murphy said when describing projected fund balances and workload assumptions.
Supporters included environmental groups, tribal advocates and industry associations. Camilla Feibelman of the Sierra Club said the bill “would provide more money from the oil and gas conservation tax going into the reclamation fund” and urged accompanying bonding reforms so extractors meet cleanup obligations. The Independent Petroleum Association and regional chambers also testified in support, saying the change restores the fund’s original purpose and offers a predictable funding stream for plugging legacy wells.
Opposition testimony included the Center for Biological Diversity, which said operators should be required to pay and argued the bill diverts public funds; the commenter estimated the phase‑in would shift nearly $90 million annually for district cleanup once fully implemented.
Committee members questioned the timeline and scale; sponsors reiterated the bill phases funding and expects the fund to reach higher balances over several years, estimating mid‑range liabilities between $600 million and $1.2 billion and projecting a fund corpus target near $1 billion in the longer term. The committee moved and adopted a do‑pass recommendation for the substitute and advanced the bill.
