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State spending $25M to address "zombie" oil and gas wells

Indiana has identified 1,264 orphaned and abandoned oil and gas wells across the state
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JAY COUNTY — On a farm in Jay County is something underground you would miss if you didn’t know what to look for— a zombie well.

Zombie wells are abandoned oil or gas wells that continue to pollute climate-warming gases and toxic chemicals into the environment long after they’ve stopped producing.

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A close up of a leaking oil well crews are working to address in Jay County.

WRTV Investigates has learned Indiana is spending millions of dollars in federal funding to address the problem.

Indiana has identified 1,264 orphaned and abandoned oil and gas wells across the state. (Orphaned wells have no responsible operator, while abandoned wells may have one.)

WRTV Investigates joined the Indiana Department of Natural Resources (DNR) in rural Jay County as they worked with a contractor to address a leaking “zombie” well.

“This well went down 1,500 feet,” said Brian Royer, DNR enforcement and orphan well manager. “This well I think was actually from the 1960s.”

Its operator is long gone.

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Royer said at one point, the Jay County well produced seven barrels of oil a day. But now, it’s a hazard.

“It was leaking methane gas,” said Royer. “It was leaking gas to the surface. That’s a concern for the environment.”

WRTV Investigates partnered with ABC News and ABC affiliates across the country.

In all, our team of investigative reporters tested 76 wells across 5 states and found more than half were leaking oil or combustible gas at the time.

Oil and gas companies drilled many of the wells in our state during the original gas boom back in the 1890’s.

Indiana has received $25 million in federal grants to plug abandoned and orphaned wells.

The state has been plugging oil and gas wells for years, but because of funding constraints—never to this extent.

“This has been a big boost to what we normally accomplish,” said Royer.

The DNR, along with 12 contractors statewide, are prioritizing leaking wells, wells in areas prone to flooding and wells near homes, towns or other vulnerable areas.

Over the last year and a half, they’ve plugged 335 oil and gas wells across the state including wells in Spencer, Adams, Delaware and Henry Counties.

READ | DNR Monthly orphaned well plugging reports

The DNR keeps discovering more leaking wells.

"We've made it known in these areas that we are doing this work and we get calls,” said Royer. “People have wells they want plugged. We didn't even know they existed when they point it out to us."

Plugging a well typically means pumping out dirty water and oil and filling it with cement.

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Contractor works on leaking well

“They are just basically planted in the ground, sealed forever,” said Royer.

The DNR is also tasked with going after oil and gas operators who are still in business and leave taxpayers to clean up the mess.

In May 2023, the DNR won a court order against Jaguar Oil in Evansville, recording $407,192 for plugging wells.

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“We will take it as far as we can to try to get the cost recovered for these,” said Royer.

WRTV Investigates was unable to reach Jaguar Oil for comment.

Environmental groups like the Sierra Club are urging the companies and companies to do even more.

"There also need to be an emphasis on getting existing operators to timely plug and otherwise remediate those wells as soon as they're done producing so we don't perpetuate this problem and have more problems and pose more of a threat to these communities,” said Peter Morgan, a senior attorney with the Sierra Club's Environmental Law Program.

Morgan said many people don’t know they live near an abandoned well, so they don’t know to report it in the first place.

“A lot of times the pollutants, especially the air pollutants, aren't visible to the naked eye,” said Morgan. “You may not be aware that you're living or your kids are going to school in close proximity to a leaking well."

Indiana still has more than 5,000 wells that are currently in operation.

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Active well in rural Indiana

VIEW | DNR Oil and gas well viewer

The DNR points out the law requires operators to properly plug wells when they’re ready to cease operations.

According to records the DNR sent to the U.S. Department of Interior, the cost to plug all over Indiana's wells would be around $77 million, which averages $53,000 per well.

You can watch ABC News' full investigation, "Zombie Wells, the Danger Beneath Us" at 8 pm Eastern on September 18 on ABC News Live with Linsey Davis which you can catch on Disney Plus or wherever you stream.