West Virginia Gets Infrastructure Act to Plug Wells

CHARLESTON, W. Va ( The West Virginia Department of Environmental Protection will invest to plug orphaned oil and fuel wells in West Virginia due to the passage of the federal infrastructure law.

President Joe Biden signed the infrastructure law into law last November; West Virginia is expected to raise billions of dollars for road construction, innovations in water formulas and broadband expansion. States can also apply for federal grants to clean up deserted sites.

James Martin, director of the state’s Bureau of Oil and Gas, spoke Monday before the House of Delegates finance committee about the money, which will come from subsidy programs.

Martin told lawmakers it was difficult to plug the fuel and oil wells because of a lack of investment and the location of the sites.

West Virginia is eligible for an initial investment of $25 million for the activities. Martin said officials hope to start investing in grants through June.

“This specific grant has a very tight schedule so it’s described as forcing those budgets,” he said. Inside right now about what this means in terms of obligations. “

The state may also seek investment through a formula grant program and a functionality grant initiative.

Martin said the formula’s subsidy amount will have several factors, adding up the number of wells in the state, the well plugging charge and job losses in the oil and fuel industry.

“We still don’t know what that number will be,” he said. “That’s why it’s called a formula grant.

Martin said the state can only use grant investment until mid-2023.

The Performance Grants program has $70 million eligible for states; The Federal Commission will review environmental criteria and sources of investment.

Martin told delegates that while he still wants important points about subsidy programs, the maximum amount the state can get has been set.

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