Illinois Faces Potential $1 Billion in Cleanup Costs for Abandoned Oil and Gas Wells

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A new report from the Bluhm Legal Clinic at Northwestern University's Pritzker School of Law and the environmental advocacy group ClientEarth USA suggests Illinois could face over $1 billion in future cleanup costs for the state's more than 30,000 inactive oil and gas wells. The report argues the state's lack of reliable data on well activity and weak regulatory framework make it hard to identify and hold drilling companies responsible for properly plugging and remediating abandoned wells, potentially leaving taxpayers on the hook.

Why it matters

The report highlights how Illinois' lax oversight of the oil and gas industry could expose taxpayers to significant financial liability for environmental cleanup, especially as many old wells sit idle and risk leaking contaminants into the air and water. This raises concerns about public health and safety, as well as the equitable distribution of cleanup costs between the industry and the public.

The details

The report found that while state law requires well owners to plug and cap inactive wells, the lack of production data collected by the Illinois Department of Natural Resources (IDNR) makes it difficult to determine which wells are truly inactive. Additionally, companies can delay plugging requirements by repeatedly applying to have wells classified as 'temporarily abandoned' for just $100 per year. The report also argues IDNR has often failed to enforce its authority to order well owners to plug and remediate sites, allowing many abandoned wells to go unaddressed.

• Oil and gas production in Illinois peaked in the early 1940s at over 100 million barrels per year.
• In 2024, oil and gas production in Illinois had dwindled to just over 7 million barrels.

What’s next

The report recommends that Illinois require oil and gas producers to report more data to IDNR, empower the agency to be more aggressive in enforcing existing laws, and consider legislative changes to increase surety bond requirements and restrict companies' ability to avoid cleanup costs.