The U.S. Department of the Interior’s (DOI) Orphaned Wells Program Office (OWPO) has released new guidance for Phase 2 of the Tribal Orphaned Well Site Plugging, Remediation, and Restoration Grants. This guidance outlines several increased environmental compliance requirements that tribal governments must adhere to when applying for and managing these grants.
Applicable Grant Types
The two grants for which these compliance requirements apply include:
- Tribal Implementation Grants: For plugging, remediation, and reclamation activities.
- Tribal Program Development Grants: For developing and administering a tribal program for these activities.
Key Compliance Requirements1
- Administrative Cost Limits
- Administrative costs for Tribal Implementation Grants are limited to 10% of the federal funds received.
- Pre-Award Costs
- Pre-award costs incurred within 90 days before the federal award effective date are allowable with written approval.
- Environmental Compliance
- National Historic Preservation Act (NHPA) Compliance
- Activities funded by this grant are considered “undertakings” under the NHPA, meaning they have the potential to affect historic properties.
- Grant recipients are required to undertake the initial steps of the Section 106 process, which involve:
- Assessing and appraising historic properties within the potential impact zone.
- Assessing the impact of the proposed activities on these properties.
- Compliance with 36 CFR part 800 is required, which involves consultation with State Historic Preservation Officers, Tribal Historic Preservation Officers, and other stakeholders.
- Endangered Species Act (ESA) Compliance
- Under 7(a)(2) of the ESA, the DOI must make certain that funded activities do not:
- Jeopardize the continued existence of species listed on the Federal List of Endangered and Threatened Wildlife and Plants.
- Lead to the destruction or harmful alteration of designated critical habitats.
- The DOI will coordinate with tribes to guarantee compliance, which may include designating a tribe as a non-federal representative (NFR) to assist with compliance efforts.
- Compliance involves consultation with the U.S. Fish and Wildlife Service (FWS) or the National Marine Fisheries Service to assess potential impacts on listed species and habitats.
- Under 7(a)(2) of the ESA, the DOI must make certain that funded activities do not:
- Standards for Measurement, Plugging, and Remediation
- Proposed activities must follow tribal standards for well plugging, remediation, and reclamation. If tribal standards are not established, the minimum standards are those found in 43 CFR 3172.12 (“Drilling abandonment”).
- Activities must include pre- and post-plugging inspections to:
- Measure or estimate contamination of surface water and groundwater.
- Measure or estimate emissions of methane, hydrogen, and other gases.
- Methane measurement must follow the DOI’s methane measurement protocol.
- Additional Environmental Considerations
- Proposed activities must not include costs associated with conditioning wells as a water supply source.
- Compliance with applicable federal statutes, regulations, and executive orders is required, as well as with applicable tribal, state, and local statutes and regulations.
- Potential impacts to the environment must be considered before undertaking any grant-funded action.
- National Historic Preservation Act (NHPA) Compliance
- Data Reporting
- Detailed data reporting requirements for both Program Development and Implementation Grants, including well identification, methane emissions, and contamination measurements.
- Financial and Performance Reporting
- Regular financial and performance reports must be submitted, including a final report no later than 120 days after the award period ends.
- Buy America Provision
- All iron, steel, manufactured products, and construction materials used in the project must be produced in the U.S., unless a waiver is approved.
Action Required
Tribal governments planning to apply for or that have received Phase 2 grants should review the full guidance document to confirm compliance with the requirements. Please find additional details here.
How Forvis Mazars Can Help
Our dedicated Grants Management team at Forvis Mazars has extensive experience with federal, state, and local grants. We assist clients throughout the grant life cycle, from researching and applying for grants to help managing awarded funds. Whether you need help with one part of the process or in-depth support, our team is here to guide you every step of the way.
If you have questions or need assistance, please reach out to a professional at Forvis Mazars.
- 1 https://www.doi.gov/sites/default/files/documents/2024-03/owpo-tribal-phase-2-grant-guidance03152024final-508.pdf