KEY TAKEAWAYS: Louisiana selected two contractors to oversee orphaned oil and gas well cleanup in the Monroe and Shreveport districts. At least $30 million in federal funding will support the first phase of the cleanup program. North Louisiana accounts for more than 4,200 of the state’s appr oximately 6,400 documented orphaned well sites. The cleanup is expected to take three to five years and could create subcontracting opportunities for Louisiana oilfield service companies.   The Louisiana Department of Conservation and Energy has selected two primary contractors for the first phase of a revamped state program aimed at plugging and cleaning thousands of orphaned oil and gas wells scattered across the northern part of the state. Conservation and Energy Secretary Dustin Davidson announced that Houston-based Garner Environmental Services, Inc. will oversee operations in the Monroe District, while Lemoine Disaster Recovery, LLC, headquartered in Lafayette, will manage the Shreveport District. Both firms were selected through a competitive Request for Qualification process. Backed by at least $30 million in federal grant funding, the program will target the state’s densest concentrations of abandoned well sites. The two northern districts account for more than 4,200 of the approximately 6,400 documented orphaned well sites currently on Louisiana’s books. Many of these wells were deserted during major oil and gas market crashes, such as the 2014 to 2016 global supply glut and a pandemic-driven demand collapse in 2020—which forced hundreds of drilling companies into bankruptcy. “One of the biggest problems this administration has inherited is the large and growing population of orphaned wells, primarily due to financial security and bonding policies that were at best inadequate where they are not nonexistent,” Davidson said. “We’ve taken steps such as creation of the Natural Resources Trust Authority (NRTA) to better manage the potential number and expense of future orphaned wells, but in the interim, we welcome the boost the funding provides in dealing with the backlog.” A pair of reports from the Louisiana Legislative Auditor—released in late 2024 and June 2026—backed up Davidson’s claims, revealing widespread program mismanagement and failures in state oversight during the Edwards administration. The trust authority was created during the 2024 legislative session to act as a financial watchdog over the state’s active oil and gas companies to ensure they don’t abandon new wells in the future. Placed under the oversight of the State Mineral and Energy Board, the authority ensures that oil and gas companies provide documentation showing they have sufficient funding to plug their wells before drilling can begin. Previously, the state required drillers to issue low-cost bonds that didn’t come close to covering the cost of sealing a well. In May, the Oilfield Site Restoration Commission was abolished and direct oversight moved to the Department of Conservation and Energy. The state now seeks larger primary firms capable of managing the complex reporting, auditing, and administrative paperwork required by multi-million-dollar federal grants. The abandoned wells in the northern part of the state cost roughly $46,000 to plug, while those in the southern part of the state cost about $94,000, Louisiana Oil and Gas Association President Mike Moncla told The Center Square in May. Because of that cost difference, state officials decided to split the $30 million federal windfall between the two northern districts while Oilfield Site Restoration program funding is allocated entirely to south Louisiana. This funding, drawn from fees paid by oil and gas producers, has totaled $12 million to $15 million annually in recent years. The agency’s approach ensures that the northern and southern parts of state receive roughly equal financial resources to tackle their respective backlogs of orphaned wells. The two lead contractors are currently developing cleanup plans in their districts, with each firm managing at least $15 million worth of site work subject to agency review and approval. The agency projects the regional cleanup program will take three to five years to complete, depending on weather patterns and the field availability of heavy equipment and crews. As the launch of cleanup operations draws near, natural gas prices remain low—sitting at under $3 per MMBtu in recent weeks at the Henry Hub in Erath, Louisiana—a price point that historically forces independent operators out of business and leads them to abandon well sites.   LOGA’s Moncla said local oilfield service companies in north Louisiana possess more than enough capacity and heavy equipment to work as subcontractors for Garner and Lemoyne. Moncla said a single plugging operation can require anywhere from five to 50 workers, depending on well depth, underground pressure, and structural issues. “The plugging of a simple well in North Louisiana may only take five to 10 people, but Lemoine and Garner may have several jobs going at once,” Moncla told The Center Square. “If each of them had five jobs going at once, that could be 100 people in North Louisiana.” While acknowledging that the more stringent financial and documentation requirements “will be difficult for many operators,” Moncla stressed that the industry intends to collaborate with state regulators rather than resist. “There are problems that need to be addressed, and LOGA wants to be a part of the solution,” Moncla said. He noted that LOGA’s dedicated Orphan/Bonding Committee has held two brainstorming sessions with Department of Conservation and Energy officials over the past month. “We understand the predicament the state is facing.” To ensure that the federal funding directly stimulates Louisiana’s economy, Conservation and Energy has advised the primary contractors to prioritize hiring in-state companies as sub-contractors to execute the orphan well site cleanup. ...read more read less