North Bonanza is one of several zombie oil and gas fields operating on public lands in Utah where hundreds of wells sit idle when they should — according to state and federal regulations — either be put back into production or “plugged and abandoned.' 1/2
Weststar Exploration failure illustrates how unplugged wells threaten the environment and public safety and could taxpayers millions
North Bonanza is one of several zombie oil and gas fields operating on public lands in Utah where hundreds of wells sit idle when they should — according to state and federal regulations — either be put back into production or “plugged and abandoned,” meaning fully reclaimed. Instead, many are producing nothing but risks to the environment, public safety and taxpayers.
The Bureau of Land Management was not able to take control of Weststar wells on federal lands or hold the company accountable because of bankruptcy proceedings in Nevada. Utah BLM officials acknowledged the problem the Weststar debacle represents, while pointing to numerous steps the agency is now taking to get old wells properly plugged and reclaimed, as well as policy changes requiring industry to assume a larger share of the clean costs.
This oil well located on BLM land 40 miles south of Vernal, was audibly leaking gasses when it was photographed Aug. 4, 2022. Like several nearby wells on the North Bonanza oil filed it has long sat unplugged and unclaimed while their operator has disappeared into bankruptcy. A few miles east of Bluff, for instance, just outside the boundaries of Bears Ears National Monument, an obscure company called Diversified Energy LLC is the designated operator of four unplugged oil wells, none of which has regularly produced since 2014.
The list of Utah’s unplugged wells features many companies like Diversified — minimal field presence, few if any employees, no one answering the phone. But Weststar stands out for the sheer magnitude of the mess it is leaving. According to Cochrane principal Ken Allen, Cochrane took over operation of the wells, while ownership remained with Gilmore. In a phone interview, Allen said the wells were “a mess” and leaking when he assumed control in 1997. He operated them long enough to get the wells into compliance and resume production, before handing them back to Gilmore under a new company, Weststar Exploration.
Despite their dilapidated appearance, the condition of the North Bonanza wells has not reached a point where they pose a risk of severe environmental damage, he said. “From 12 to 60 months, they need to let the division [DOGM] know what the status of the well is and what their plan for the well is and demonstrate that the well is not creating any harm,” said Bart Kettle, who heads DOGM’s oil and gas section. “And after 60 months, it really needs to be a good cause for the well to remain shut-in.”
“In Utah, we’ve got a really low orphan well count. It’s not an accident. That’s a process of decades of active management,” Kettle said. “Today’s idle well is the highest risk of becoming tomorrow’s orphan well. So if you can do a good job with your idle well management today, then by default, you’re probably going to have fewer orphaned wells in the future.”
Kettle was among the state officials who testified at a March 7 bankruptcy proceeding where SITLA objected to Weststar’s attempt to claim the canceled state leases as assets worth $4.5 million. Those leases were in reality massive liabilities that Gilmore was trying to evade through Chapter 11 bankruptcy proceedings, according to SITLA’s filings.
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