Opportunity Information: Apply for L15AS00212
Apply for L15AS00212
- The Bureau of Land Management in the environment health natural resources sector is offering a public funding opportunity titled "BLM NM Statewide Orphan Well Reclamation Program" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 15.236 Environmental Quality and Protection Resource Management.
- This funding opportunity was created on Jul 13, 2015 and posted on Jul 13, 2015.
- Applicants must submit their applications by Sep 14, 2015 Due by COB. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- The funding agency has allocated a total of $5,000,000.00 to eligible and selected applicants.
- Each selected applicant is eligible to receive up to $5,000,000.00 in funding.
- The number of recipients for this funding is limited to 1 candidate(s).
- Eligible applicants include: Unrestricted (i.e., open to any type of entity above), subject to any clarification in text field entitled Additional Information on Eligibility.
- Although this announcement is for full and open competition the BLM intends to make award to a State of New Mexico Division with expertise to properly plug and abandon wells in accordance with State Oil and Gas and Water Quality regulations.
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Opportunity Summary:
The BLM NM Statewide Orphan Well Reclamation Program (Funding Opportunity Number L15AS00212) is a Bureau of Land Management discretionary funding opportunity designed to address the environmental and public health risks created by inactive and orphaned oil and gas wells in New Mexico. As oil and gas wells reach the end of their productive life and become uneconomical to operate, they need to be properly plugged to protect underground sources of drinking water. The central issue is preventing oil, gas, and saltwater from migrating out of deeper producing zones and moving into shallower freshwater aquifers. When a well is abandoned responsibly, plugging and site cleanup are part of the normal lifecycle of development. Problems arise when an operator becomes insolvent and leaves behind wells and associated facilities, creating "orphan" wells. In those cases, the financial assurance intended to cover closure work, such as reclamation bonds, is often insufficient to pay for plugging the wells and restoring disturbed areas. The responsibility then shifts to the BLM or the State to ensure the wells are safely plugged and the surface impacts are reclaimed.
The funding is structured as a cooperative agreement, reflecting that the work will be carried out through close coordination rather than a simple pass-through grant. The program falls under the broad activity areas of environment, health, and natural resources, and is associated with CFDA 15.236 (Environmental Quality and Protection Resource Management). The announcement lists an estimated total funding amount of $5,000,000, with an award ceiling of $5,000,000 and an award floor of $500,000, and the BLM anticipated making one award. There is no cost sharing or matching requirement stated, which generally means applicants are not required to contribute non-federal funds as a condition of receiving the award.
Although the eligibility category is described as unrestricted in the listing, the notice also states that the BLM intends to make the award to a State of New Mexico division with the expertise needed to plug and abandon wells in compliance with state oil and gas and water quality rules. In practical terms, the program is set up to rely on the state’s technical and regulatory experience for well plugging and abandonment standards, while aligning with the BLM mission of supporting responsible energy development and protecting health, safety, and the environment. The emphasis on state expertise signals that the BLM expects the work to follow New Mexico’s established regulatory framework for well closure and related water quality protections, which is especially important because plugging designs, cementing requirements, mechanical integrity considerations, and verification procedures are typically governed by state oil and gas authorities and environmental regulators.
From an outcomes perspective, the opportunity is intended to fund on-the-ground reclamation actions: properly plugging orphaned and inactive wells and reclaiming surface disturbances associated with wells and related facilities. Plugging is aimed at long-term isolation of subsurface zones to reduce risks such as groundwater contamination, pressure communication between formations, and uncontrolled migration of fluids or gas. Surface reclamation is meant to address the physical footprint left behind by oil and gas infrastructure, which can include well pads, access roads, pits, and other disturbed areas, with the goal of stabilizing soils, reducing erosion, and restoring the site as appropriate for future land use.
Key administrative details in the posting include the original and current closing date of September 14, 2015 (due by close of business), a posted and creation date of July 13, 2015, and an archive date of September 30, 2015. The listing points applicants to Grants.gov for the full announcement. For help accessing the full announcement, the contact provided is Janet Huff, Grants Management Specialist, at 505-761-8941 and jhuff@blm.gov.
Frequently Asked Questions (FAQs) - BLM NM Statewide Orphan Well Reclamation Program (L15AS00212)
1. What is the BLM NM Statewide Orphan Well Reclamation Program (L15AS00212)?
It is a Bureau of Land Management (BLM) discretionary funding opportunity intended to reduce environmental and public health risks associated with inactive and orphaned oil and gas wells in New Mexico. The program focuses on properly plugging wells and reclaiming impacted surface areas.
2. What problem is this funding opportunity trying to solve?
The opportunity targets risks created when wells become inactive or are left behind as "orphan" wells. A central concern is protecting underground sources of drinking water by preventing oil, gas, and saltwater from migrating from deeper producing zones into shallower freshwater aquifers. It also addresses the need to clean up and restore surface disturbances left by oil and gas infrastructure.
3. What is an "orphan" well in the context of this program?
An orphan well is generally a well left behind when an operator becomes insolvent and does not complete required closure work. In those cases, the financial assurance meant to cover closure (such as reclamation bonds) is often insufficient, and responsibility for plugging and reclamation shifts to the BLM or the State.
4. Why is proper well plugging important for drinking water protection?
Plugging is intended to stop oil, gas, and saltwater from migrating out of deeper zones and moving into shallower freshwater aquifers. Proper plugging supports long-term isolation of subsurface zones and reduces risks such as groundwater contamination, pressure communication between formations, and uncontrolled migration of fluids or gas.
5. What types of activities are expected to be funded?
The opportunity is intended to fund on-the-ground reclamation actions, including plugging orphaned and inactive wells and reclaiming surface disturbances associated with wells and related facilities. Surface reclamation may address areas such as well pads, access roads, pits, and other disturbed areas, with goals like stabilizing soils, reducing erosion, and restoring the site for appropriate future land use.
6. Is the award a grant or a cooperative agreement?
The funding is structured as a cooperative agreement. This reflects that the work is expected to be carried out through close coordination with the BLM rather than as a simple pass-through grant.
7. What are the program's broad activity areas and CFDA number?
The program is associated with environment, health, and natural resources activity areas, and it is tied to CFDA 15.236 (Environmental Quality and Protection Resource Management).
8. How much funding is available under this opportunity?
The estimated total funding amount listed is $5,000,000. The award ceiling is $5,000,000 and the award floor is $500,000.
9. How many awards did the BLM anticipate making?
The announcement indicates the BLM anticipated making one award.
10. Is there a cost share or matching requirement?
No cost sharing or matching requirement is stated in the provided information. This generally means applicants are not required to contribute non-federal funds as a condition of receiving the award.
11. Who is eligible to apply?
The listing describes the eligibility category as unrestricted, but it also states that the BLM intends to make the award to a State of New Mexico division with the expertise needed to plug and abandon wells in compliance with state oil and gas and water quality rules.
12. What does "unrestricted eligibility" mean here if the BLM intends to award to a New Mexico state division?
Based on the notice, while the eligibility category is labeled as unrestricted, the stated intent is to direct the award to a specific type of applicant: a State of New Mexico division with appropriate technical and regulatory expertise. Practically, that signals an expectation that the project will be implemented through the state's established capabilities and regulatory framework for plugging, abandonment, and water quality protection.
13. What standards and rules are expected to guide the plugging and abandonment work?
The notice emphasizes compliance with New Mexico state oil and gas rules and water quality rules. It indicates reliance on the state's technical and regulatory experience for plugging and abandonment standards, including elements typically governed at the state level such as plugging designs, cementing requirements, mechanical integrity considerations, and verification procedures.
14. What is meant by "reclamation" in this opportunity?
Reclamation refers to addressing and restoring surface impacts from oil and gas operations and associated infrastructure. The posting mentions reclaiming disturbed areas connected to wells and related facilities, with goals like reducing erosion, stabilizing soils, and restoring the site as appropriate for future land use.
15. Why does the responsibility fall to the BLM or the State for orphan wells?
When an operator becomes insolvent, the financial assurance intended to cover closure work (such as reclamation bonds) may be insufficient to pay for plugging and restoration. In that situation, the BLM or the State may have to step in to ensure wells are safely plugged and surface impacts are reclaimed.
16. When was the opportunity posted and when did it close?
The posting/creation date listed is July 13, 2015. The original and current closing date is September 14, 2015 (due by close of business). The archive date is September 30, 2015.
17. Where can applicants find the full announcement?
The listing directs applicants to Grants.gov for the full announcement.
18. Who is the contact for help accessing the full announcement?
The contact provided is Janet Huff, Grants Management Specialist. Phone: 505-761-8941. Email: jhuff@blm.gov.
19. What is the main intended outcome of the funded work?
The intended outcomes are the safe plugging of orphaned and inactive wells to reduce long-term subsurface risk (including potential groundwater contamination and uncontrolled migration of fluids or gas) and the reclamation of surface disturbances tied to wells and related facilities.
20. How does this opportunity relate to the BLM mission described in the notice?
The notice frames the work as aligning with the BLM mission of supporting responsible energy development and protecting health, safety, and the environment, while leveraging New Mexico's technical and regulatory expertise to ensure plugging and abandonment work complies with state rules.
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