MERP Program
On August 16, 2022, the Inflation Reduction Act (IRA) was signed into law. The IRA created the
Methane Emissions Reduction Program (MERP) and directed the EPA to
take action to address methane emissions from the oil and gas sector. The Kentucky Division of Oil and Gas (KDOG) submitted a MERP
application to assist in the plugging of Marginal
Conventional Oil and Gas Wells (MCW’s) held by private ownership and was awarded a $12.9M MERP Grant with
specific and detailed DOE implementation requirements.
What is an MCW?
An MCW is defined by DOE as an idle
or producing onshore vertical or slightly
deviated oil or natural gas well
(excludes horizontal wells) with a
known operator producing less than or
equal to 15 barrels of oil equivalent per
day (BOED) and/or 90 thousand cubic
feet (Mcf) gas per day (over the prior 12-
month period).
Community Benefits Plan
MERP is focused on helping build better communities and investment in job quality/workforce continuity. Reduction of methane emissions in communities with reduce the overall environmental burden that they face. To be able to do this, there is a focus on creating jobs that will last and pay well.
Prioritization
Prioritization of MCW's will mainly be focused on wells that are actively leaking, as well as communities that are the most disadvantaged. Domestic oil and gas wells are the primary focus of MERP and will be prioritized accordingly. Here is a full list of categories that each well will be graded on:
Leaking Methane, H2S, or other hydrocarbon
Potential impact to disadvantaged community
Leaking oil or brine
Potential to become a future orphan well
Proximity to nearby schools, residential areas, or small businesses
Post-plugging land use
Wellbore complexity
Wellhead condition
Impact on endangered species and historical sites