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The division manages the plugging of improperly abandoned oil and gas wells for which no responsible owner exists.

The law provides a means by which a surface owner of real estate on which an orphaned well exists, would be allowed to plug the well and be reimbursed for expenses by the state’s Orphan Well Fund.

How It Works:

• The surface owner is required to obtain bids from contractors regularly engaged in the plugging business.
• The division determines if a bid is reasonable and, if so, issues a permit to plug.
• The surface owner then has 180 days to retain the contractor, complete the plug job, and submit expenses to the state for reimbursement.

Senate Bill 162, effective October 25, 1995 established this landowner grant program which is administered through the Division’s Orphan Well Program. The program was initiated in May, 1996. On March 18, 1999 Senate Bill 187 became effective. This bill provided a formal approach to transfer abandoned wells with viable production capabilities to the landowner or Ohio producer vs. plugging the well.