Mississippi Senate Bill SB2435

Mississippi 2023 Regular Session

• Introduced: 1/16/23
• Refer: 1/16/23
• Failed: 1/31/23

Caption

Orphaned Well Partnership Program; create.

Impact

If passed, SB2435 establishes a framework whereby digital asset miners can bid for the opportunity to reclaim orphaned wells. In return for assuming this responsibility, they will gain access to the energy produced from these wells, providing an economic avenue while simultaneously addressing environmental issues. The bill mandates the creation of the Orphaned Well Partnership Program Fund to facilitate upfront investments necessary for miners to begin operations. Consequently, this initiative could result in a dual benefit of fostering economic activity and enhancing environmental conservation efforts in Mississippi.

Summary

Senate Bill 2435, known as the Orphaned Well Partnership Program, aims to address the environmental challenges posed by uncapped orphaned oil and natural gas wells. The bill recognizes the need for cleanup and management of these wells, which are emitting harmful gases like methane. The initiative is supported by federal funding, including at least $25 million allotted to Mississippi, with the intention to leverage this financial support to effectively manage orphaned wells. The program incentivizes digital asset miners to take responsibility for cleaning these sites in exchange for temporary control of the energy resources available from the well.

Contention

A notable point of contention surrounding SB2435 involves the potential environmental implications of allowing digital asset mining operations at these historically neglected sites. Critics express concerns that the mining activities might not lead to adequate environmental restoration and could pose risks if the regulations are not strictly enforced. Nonetheless, proponents argue that this bill represents a practical approach to mitigating the long-standing issue of unmanaged orphaned wells while simultaneously tapping into modern economic opportunities in the digital asset sector.