Abandonment Costs for Fracking Companies

When it comes time to end operations at a well site or production facility, abandonment costs for fracking companies are incurred to cap a well and relocate or remove existing equipment and then to remediate the surface to as close to what it was before the dig occurred.  Fracking Safety equipment, spillage containment systems, safety platforms, and fixed ladders that were used on the site are for the most part relocated to newer wells.  Many states are issuing permits to drill wells only if closing costs are put upfront.  The EPA has become concerned with the number of wells that were started, used and then not remediated.  Access roads for large trucks and at times rail lines for access to well areas need to be remediated.