Senators Marshall, Lankford Introduce Bill to Encourage Responsible Oil Well Management in the Heartland

Washington, D.C. - U.S. Senator Roger Marshall, M.D., and Senator James Lankford (R-OK) introduced legislation to support small oil producers and help better utilize resources when closing wells after production.

This legislation offers a tax incentive that allows producers to deposit funds into a tax-free account. The principal and any gains can be realized without tax if the money is spent on capping and remediating wells.

Kansas and Oklahoma are known for their small, independent "stripper wells" that produce vital energy for the region. These wells pose financial challenges when they reach the late stages of operations and must be capped and removed. This bill is designed to proactively incentivize and encourage producers to save for these future expenses, promoting responsible stewardship of our natural resources.

"Oil producers in Kansas take pride in their responsible care of the land when they drill wells. This commonsense legislation supports our energy independence while promoting responsible stewardship of our natural resources, ultimately leading to more production, lower prices, and a cleaner Kansas," Senator Marshall said.

"Oklahoma's oil and gas producers are essential to America's energy independence. While the Biden Administration tries to undermine our American energy future, this legislation empowers our smaller producers to provide our nation the energy abundance we will require to lead the world for the next century," Senator Lankford said.

Additionally, Senator Marshall and Lankford's legislation has the support of the National Stripper Well Association.

"The National Stripper Well Association is grateful to Senators Marshall and Lankford for their leadership in introducing this critical legislation. Costs associated with the important process of closing and remediating wells, like the cost of many other aspects of the economy society, are rising. The additional 'tools in the toolbox' this bill provides will bring welcomed financial flexibility to ensuring completion of these significant processes in well operations," the National Stripper Well Association said.