Formula Grants

The IIJA appropriates $2 billion to fund Formula Grants under the Orphaned Wells Program. Formula grants are available for various activities when the surface is owned by the state or by a private party, including, potentially, individually owned Indian properties that are held in trust by the Secretary of the Interior but fall under the state definition of ‘orphaned wells on private land’ for purposes of compliance with this section only. Funds may not be used for activities where the surface is owned by the United States or by an Indian Tribe but may be used for federal wells where the surface is owned by the state or by a private party and appropriate agreements are in place with the federal mineral manager, which has determined the well to be orphaned.

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