CHEYENNE, Wyo. -- Wyoming could see hundreds of oil and gas wells abandoned as over-leveraged operators declare bankruptcy, according to a new report.

The report by the Western Organization of Resource Councils says historically low oil prices and falling demand because of coronavirus restrictions, combined with low bonding requirements by the Bureau of Land Management, could make it easier for operators to walk away from wells.

Bob LeResche, a member of the group's board, says that's a problem because rusted-out well casings can release toxic chemicals including benzene.

"And drinking water that people get out of their wells will contain these poisonous chemicals sometimes," he states. "So it's very important that the wells get plugged, which means filled with cement, and cleaned up."

Industry groups argue that critics of low bonding requirements are overstating risks, because most wells are not abandoned and are plugged by oil and gas companies.

Currently, the BLM requires just a $25,000 minimum bond to cover all of an operator's federal leases, wells and operations in an entire state.

The BLM has not yet responded to a request for comment on the report's findings.

LeResche says while it's true that financially stable operators who don't want to lose their bonds do clean up their former well sites to continue business as usual. But he says that's not the case for an increasing number of drillers headed to bankruptcy.

"Which leaves no capability beyond the small bonds," he points out. "They're correct that most are plugged by industry, but that doesn't mean that of tens of thousands of wells that there's not going to be a lot more obligation than there are bonds."

Regulators say plugging and reclaiming a single well site can cost between $80,000 and $150,000.

The BLM has the authority to increase bonds, but according to a 2019 Government Accountability Office report, 82% of federal bonds are set at the minimum amount.

The report's recommendations call for the BLM to end blanket bonding, and establishing bonds based on the actual cost of reclamation at each well.


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The Blackwater River, which flows more than 30 miles through West Virginia's Allegheny Mountains, ranks among the top 10 most endangered rivers in the nation, according to a new report.

The river is threatened by a proposed four-lane highway construction project which would cross all of its headwater streams.

Judy Rodd, executive director of the group Friends of Blackwater, said Corridor H would involve building a bridge in an area honeycombed with old mines and explains the construction could compromise decades-old work to actively treat the water in the North Fork of the Blackwater impacted by acid mine drainage.

She is worried the highway could be a major environmental setback for the region.

"We expect in the next year to really clean up this river and bring back a trout fishery that used to be there," Rodd explained. "However, if they start building this bridge, they could be opening up old coal mines, old tunnels, which are filled with acid pollution."

Rodd noted a draft environmental impact review of the proposed project, required under federal rules, is expected to be released in the coming months.

Small businesses and the local outdoor recreation economy depend on the scenic views and wilderness surrounding the towns of Thomas and Davis. Rodd argued a four-lane highway, with accompanying construction, light and noise pollution, would drastically alter the landscape.

"It's tranquil, it's dramatic," Rodd observed. "You got bald eagles soaring overhead, you got rushing water, you got fishermen in the Blackwater Falls State Park area."

Olivia Miller, program director for the Highlands Conservancy, said the highway could be rerouted to avoid the Blackwater Falls area, and pointed to an online petition which will allow concerned residents to voice their support for a Northern route to the Federal Highway Administration.

"Right now, we are asking folks to go to the American Rivers website and fill out the action alert to send a letter to highway officials," Miller stressed.

The Blackwater River is home to the endangered Cheat Mountain salamander, eastern brook trout and many other native species.

A new, high-tech wastewater treatment incinerator, used in only a few states, is on the wish list for one Michigan city.

Former state Representative - now Mayor of Warren - Lori Stone is asking her former colleagues in the Environment, Great Lakes and Energy Subcommittee for up to $100 million to upgrade her city's wastewater treatment system.

Warren's current plant was built in 1957 and serves over 137,000 residents. The new incinerator would oxidize organic matter contained in the sludge.

Warren Wastewater Treatment Plant Director Donna Dordeski said the old system is failing.

"One of the hearths of the furnace collapsed and failed, and we couldn't use it any longer until repairs had been completed," said Dordeski. "So, from the beginning - and all the waiting, getting the contractors and repairs completed - it took four months."

Dordeski said they're approaching the final steps of getting permits for the project. And they're still seeking funds, at the state and federal levels - including infrastructure grants that may be available.

The city has around 500 miles of sanitary sewer pipes to ensure its wastewater is treated and disposed of properly. Dordeski said when the current system breaks down, it affects local residents. Trucks have to pick up and carry sludge back and forth through their neighborhoods to nearby landfills.

"That's a 24-hour operation," said Dordeski. "We usually have several trucks. Its a continuous process, five days a week, where we process the sludge and those trucks have to be nearby, available, be loaded, exchanged for a new one. So, that's what has to happen when our incinerator is not operational."

Michigan has 95 wastewater treatment plants.

Warren's mayor believes if the new incinerator is approved, the city will have the opportunity to be the proving ground as a pilot program for this technology.




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As Wyoming and other states grapple with shrinking Colorado River water levels - new research pinpoints how much water is being diverted to feed cattle, to sprawling desert cities, and the river's 40 million other stakeholders.

The stakes are high in a time of persistent and widespread drought.

Brian Richter - president of Sustainable Waters - said if Upper Basin states can't deliver the volume of water required under a century-old agreement, Lower Basin states could force the issue with what's known as a compact call.

"The likely result would be that the Upper Basin states, including Wyoming, would be forced to use less water," said Richter, "so that more water could be flowing into Lake Powell and downstream into the Lower Basin."

Researchers found that in Upper Basin states, cattle-feed crops soak up 90% of all irrigation water - which is three times the amount that goes to all cities, towns, commercial and industrial uses combined.

Just 19% of the Colorado River feeds the wetlands and riparian areas wildlife depend on.

Richter noted that cities in Utah and along Colorado's Front Range are at risk because they have very low priority for accessing water under the 1922 Colorado River Compact.

Despite calls for closing off spigots used exclusively for cattle feed, Richter said blaming any single user is counter-productive.

"Farmers and ranchers are growing the things that people want, and are willing to pay a necessary price for," said Richter. "So they are just responding to consumer demands."

He said he believes the new data could be an important tool for Colorado River stakeholders as they work to build a long term plan to bring the total use of water back in balance with what nature provides.

Richter said right now, water use is at least 10% to 15% over that limit.

"We need a long range plan that says how much water do we want to use in the cities? How much water do we want to use on the irrigated farms? How much are the industries going to need?" said Richter. "And until we do that long range plan, we are just going to be reacting to these water shortages on a year-by-year basis."




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