New and existing Orphan Well Prevention Act

HB 5415, the Orphan Well Prevention Act of 2026, requires new oil and gas wells (after July 1, 2026) and transferred wells to have financial assurance for plugging costs. Operators must provide either a state bond or an escrow account managed by the Office of the State Treasurer to cover future plugging expenses. This prevents wells from becoming "orphaned" - meaning they lack a responsible operator to plug them - protecting landowners from contamination risks and financial liability. The law applies to all operators seeking new permits or transferring existing wells, ensuring funds are secured before wells are drilled or transferred.