News from the Oklahoma Corporation Commission

OKLAHOMA CITY – The Oklahoma Corporation Commission spent $343,291 of state money to plug 98 abandoned oil and gas wells in fiscal year 1999, less than half of the $773,371 spent in fiscal year 1998 to plug 188 wells.

The 1999 fiscal year ended on June 30.

Commission officials said low oil prices during much of the year contributed to the decline in plugging activity. The petroleum industry provides most of the money for plugging abandoned wells through taxes on oil and gas production. The low oil prices reduced production, which reduced tax money available for plugging abandoned wells.

They said funding is expected to increase gradually as rising oil prices encourage more production.

According to a Corporation Commission report issued on Sept.17, the commission spent $68,852 to plug 21 wells in the first two months of this (2000) fiscal year. The report also listed 64 wells with estimated plugging costs of $401,819 awaiting plugging orders and 233 wells with estimated plugging costs of $965,874 in various stages of the plugging bid process.

The state plugging fund had only $101,241 in uncommitted funds available on Sept.17, the report said.

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