Presented to the American Bar Association's Section of Environment, Energy, and Resources at its 55th Spring Conference on Environmental Law in Minneapolis, April 22 to 24, 2026, as a continuing legal education session.
The talk covers the definitional distinctions among abandoned, orphaned, and zombie wells and what they mean for federal funding eligibility and liability allocation; the national scale of the problem; the mechanisms by which plugged wells fail; the January 2022 Crane County, Texas blowout; the history of financial assurance frameworks and the bonding gap; bond coverage measured against actual plugging costs; state-by-state regulatory variation; BLM's 2024 bonding rule; and federal funding measured against liability. It describes how the frameworks were built and what they produced, and it doesn't recommend what to do about it.
Klimowski, S. (2026). Designed to Fail: How Financial Assurance Frameworks Created America's Orphaned Well Crisis. ABA Section of Environment, Energy, and Resources, 55th Spring Conference on Environmental Law, Minneapolis, MN, April 22 to 24, 2026.
~1%
average bond coverage of plugging liability across eight states with data
Carbon Tracker
64 years
BLM's $10,000 lease bond minimum went unchanged, 1960 to 2024
BLM
< 2%
of estimated national liability covered by the $4.7B federal program
IIJA against Carbon Tracker