By Mark Jaffe | The Colorado Sun
The number of orphan wells in Colorado has topped 1,000 — a four-fold increase in four years — as the state takes over 358 wells from two defunct oil and gas companies this spring.
The Energy and Carbon Management Commission, which regulates the oil and gas industry and operates the state’s orphan well program, is adding the 339 wells of Dallas-based Omimex Petroleum and 19 wells from Centennial-based Chemco Exploration.
The ECMC is also seizing $205,000 in bonds from Omimex — about $604 per well — and $60,000 in bonds from Chemco, equal to $3,158 for each well. The commission estimates that on average it takes $10,000 to $40,000 to plug and abandon a well and $100,000 for site remediation.