State Plugging Program
In 1996, the Legislature created the Abandoned Well Plugging and Site Remediation Fund (Fund). The legislation established an annual reporting procedure whereby the Kansas Corporation Commission (KCC or Commission) accounts for the number of abandoned wells in Kansas, the funds available to plug abandoned wells, and the multiyear plan for addressing abandoned wells by creating a prioritization schedule.
On July 1, 2021, the Abandoned Oil and Gas Well Fund contained within K.S.A. 55-192 absorbed the Well Plugging Assurance Fund contained in K.S.A. 55-166 and K.S.A. 55-167. House Bill 2022 made sweeping changes to the abandoned well plugging statutes related to operator plugging responsibility determinations by the Commission. These changes combined with an overhaul of the processes related to abandoned well plugging state contracts attracted more state-approved abandoned well plugging vendors than at any time in the history of the program. The increased number of abandoned well plugging vendors necessitated more capital to address the state’s abandoned well problem. House Bill 2022 merged the two existing statutory abandoned well plugging funds so that the Commission would have all of the abandoned well plugging funds available for use. The merged Abandoned Oil and Gas Well Fund derives its revenues from the 50% share of monies received from the federal government under the Mineral Leasing Act as described above and through the financial assurance mechanism associated with operator licensure. Law mandates the Conservation division require financial assurance of all licensed operators in the state.
Kansas is divided into four Districts:
- District 1: Dodge City
- District 2: Wichita
- District 3: Chanute
- District 4: Hays
Each district is responsible for identifying and plugging the wells within their district. Plugging order is based on priority level & action level:
- Priority I
- Priority II
- Priority III
- Level A
- Level B
- Level C
More than 11,200 wells have been plugged since establishment of the funds.
The KCC is looking for plugging contractors to be a part of the State Abandoned Well Plugging Program. Once registered, contractors become “Certified” and will have the opportunity to bid on any available State Project using a Task Order Bidding process. Projects are awarded in five steps and vary throughout the state.
Project Awarded in 5 Steps
- Receive and apply for open projects via email
- Project award notification and plugging meeting with District staff
- Execute well plugging
- Complete PDF form for invoice submission
- Receive payment
State Plugging Benefits
- Set your own initial contract price
- Competitive pricing with project discount advantages
- Easy registration to become an certificated contractor
- Easy plugging and site remediation project bidding
- Plugging and site remediation projects throughout the state
- State Plugging opportunities year around
- Equal opportunity award determinations
- Clear direction & communication
- Project & Invoice submissions using pre-made fillable forms
- Guaranteed payments
- Checks issued in a timely manner
Interested in becoming a contractor? Click here to learn how to apply.