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Some Texas oil wells gush hundreds of barrels of oil a day. But many are like the wells on Jackie Chesnutt’s ranch in West Texas that only trickle out a couple barrels a month.
Chesnutt, a retired engineer, claims the five wells operating on her ranch are out of compliance with state rules and should be shut down. The company, CORE Petro, says that it’s struggling to break even, let alone pay to plug the wells. But it says that all its wells are in compliance.
There are thousands of oil and gas wells around Texas like these: low-producing wells leased by companies operating on a shoestring. About two-thirds of the active oil wells in Texas, or 99,000 wells, produce less than 10 barrels of oil a day, according to the state regulator. To remain active, oil wells in Texas must produce at least five barrels for three consecutive months or at least one barrel for 12 consecutive months.
Companies will often maintain a minimal amount of oil production instead of plugging a well, which can cost tens of thousands of dollars. Landowners like Chesnutt argue that this pattern can lead to pollution and burdensome equipment on their land.
Oil industry analysts and environmental advocates say they have heard claims that companies report the bare minimum of oil production to avoid plugging wells.
Advocates of reforming the oil and gas industry say that stricter rules are needed to ensure companies plug wells in a timely manner and assume the costs so that it does not fall to the state.
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