{"id":922,"date":"2026-05-31T19:11:47","date_gmt":"2026-05-31T19:11:47","guid":{"rendered":"https:\/\/americanmovershub.com\/?p=922"},"modified":"2026-05-31T19:11:47","modified_gmt":"2026-05-31T19:11:47","slug":"opinion-utahs-oil-and-gas-bonding-reform-shows-the-value-of-practical-progress-lets-keep-going","status":"publish","type":"post","link":"https:\/\/americanmovershub.com\/?p=922","title":{"rendered":"Opinion: Utah\u2019s oil and gas bonding reform shows the value of practical progress \u2014 let\u2019s keep going"},"content":{"rendered":"
\n

Utah has benefited from abundant energy resources, helping to build and power communities, support families and create economic opportunities. <\/p>\n

Read more June events and activities in Utah<\/a><\/p>\n

With this opportunity comes responsibility. Energy development brings real environmental challenges that must be carefully managed. When wells used to extract oil and gas reach the end of their productive life, they must be properly plugged and remediated to minimize pollution and other harmful impacts. The work and costs of proper closure should be carried by those who profit from energy development, not by Utah taxpayers.<\/p>\n

That is why we strongly support the Utah Division of Oil, Gas and Mining\u2019s proposed Bond Rule, a carefully considered, risk-based approach to ensure that operators \u2014 not the public \u2014 bear the cost of plugging and reclaiming their wells. As the state moves to finalize this rule, we urge its Board of Oil, Gas and Mining to strengthen two critical areas as they bring this important reform across the finish line.<\/p>\n

The rule proposal is rooted in common sense. You don\u2019t evaluate financial risk by looking only at assets. You also look at liabilities. The proposed bond rule applies this same principle to oil and gas development. This type of performance bond considers how many of an operator\u2019s wells are \u201cat risk\u201d \u2014 producing so little that future revenue can\u2019t cover the cost of proper closure \u2014 and sets bonding requirements accordingly. In this proposal, greater risk comes with greater financial assurance. While the state is ultimately liable to plug orphan wells left behind to limit environmental impacts, it is just good business for a company to provide assurance that they won\u2019t place this burden on others.<\/p>\n

This is not an abstract problem. A by Utah\u2019s Legislative Auditor General found that the state\u2019s oil and gas bonding requirements were antiquated, and that recently abandoned wells had shifted hundreds of thousands of dollars in financial liability onto the state and taxpayers. Projected future state liabilities are in the millions. <\/p>\n

Older \u201clegacy\u201d wells drilled before 2002 are not bonded at all, meaning their plugging costs can fall entirely on taxpayers. Since the audit, the state has worked on updating this rule and the time to finalize it is now.<\/p>\n

The proposed bond rule is a major step forward because it aligns financial responsibility with risk, and adds a statutory periodic review. Stronger rules create certainty, reward responsible planning and development, and ensure that cleanup obligations are met before wells become a public burden. <\/p>\n

Read more Royal reality: Utah Royals remain atop NWSL with 2-2 draw at Portland<\/a><\/p>\n

But two areas of the current proposal still need attention.<\/p>\n

First, temporarily abandoned or \u201cshut-in\u201d wells that have received an extension to remain idle should still count as \u201cat-risk\u201d wells. The division has acknowledged that these wells remain a major risk, and the data confirms it. After 10 years of inactivity, of idle wells return to production. Some industry representatives are asking to exclude these from \u201cat-risk\u201d calculations. But this creates a loophole, allowing operators to seek extensions to avoid supplemental bonding, shifting risk back to taxpayers. We encourage the board to not exclude them. <\/p>\n

Second, the state should re-evaluate the formula for calculating risk. Under the most recent proposal updated in March, there is a clear concern in the formula to calculate a company\u2019s risk. While \u201cat-risk\u201d wells only count those on state and private lands, companies can dilute their total wells for determining bonding to include those on state, private, federal and tribal lands. In short, some companies may look less risky than they actually are, increasing taxpayer exposure. <\/p>\n

Reducing the state\u2019s financial obligation was a key reason for updating the bond rule, and we think the board\u2019s intention to minimize taxpayer risk warrants correcting this formula. <\/p>\n

The principles at work here are straightforward. If you drill a well, you should be financially prepared to close it properly. If you own riskier wells, you should set aside more to cover your obligations. The rules that govern these requirements should reflect current costs, not those from two decades ago.<\/p>\n

Utah values protecting taxpayers and promoting responsible stewardship. A stronger bond rule will protect communities, create accountability and help ensure that today\u2019s economic opportunities do not become tomorrow\u2019s public liabilities.<\/p>\n

Read more Opinion: Utah leaders are looking toward the future with optimism<\/a><\/p>\n

Let\u2019s get this right.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

We strongly support the Utah Division of Oil, Gas and Mining\u2019s proposed Bond Rule<\/p>\n","protected":false},"author":1,"featured_media":921,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-922","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guest-opinion"],"yoast_head":"\nOpinion: Utah\u2019s oil and gas bonding reform shows the value of practical progress \u2014 let\u2019s keep going - American Movers Hub<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/americanmovershub.com\/?p=922\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Opinion: Utah\u2019s oil and gas bonding reform shows the value of practical progress \u2014 let\u2019s keep going - American Movers Hub\" \/>\n<meta property=\"og:description\" content=\"We strongly support the Utah Division of Oil, Gas and Mining\u2019s proposed Bond Rule\" \/>\n<meta property=\"og:url\" content=\"https:\/\/americanmovershub.com\/?p=922\" \/>\n<meta property=\"og:site_name\" content=\"American Movers Hub\" \/>\n<meta property=\"article:published_time\" content=\"2026-05-31T19:11:47+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/americanmovershub.com\\\/?p=922#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/americanmovershub.com\\\/?p=922\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/americanmovershub.com\\\/#\\\/schema\\\/person\\\/b68c8483906c0d2987f271455f0177af\"},\"headline\":\"Opinion: Utah\u2019s oil and gas bonding reform shows the value of practical progress \u2014 let\u2019s keep going\",\"datePublished\":\"2026-05-31T19:11:47+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/americanmovershub.com\\\/?p=922\"},\"wordCount\":750,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/americanmovershub.com\\\/?p=922#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/americanmovershub.com\\\/wp-content\\\/uploads\\\/2026\\\/05\\\/782a9734f6d87e027e85c5dc812002db.avif\",\"articleSection\":[\"Guest Opinion\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/americanmovershub.com\\\/?p=922#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/americanmovershub.com\\\/?p=922\",\"url\":\"https:\\\/\\\/americanmovershub.com\\\/?p=922\",\"name\":\"Opinion: Utah\u2019s oil and gas bonding reform shows the value of practical progress \u2014 let\u2019s keep going - American Movers Hub\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/americanmovershub.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/americanmovershub.com\\\/?p=922#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/americanmovershub.com\\\/?p=922#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/americanmovershub.com\\\/wp-content\\\/uploads\\\/2026\\\/05\\\/782a9734f6d87e027e85c5dc812002db.avif\",\"datePublished\":\"2026-05-31T19:11:47+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/americanmovershub.com\\\/#\\\/schema\\\/person\\\/b68c8483906c0d2987f271455f0177af\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/americanmovershub.com\\\/?p=922#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/americanmovershub.com\\\/?p=922\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/americanmovershub.com\\\/?p=922#primaryimage\",\"url\":\"https:\\\/\\\/americanmovershub.com\\\/wp-content\\\/uploads\\\/2026\\\/05\\\/782a9734f6d87e027e85c5dc812002db.avif\",\"contentUrl\":\"https:\\\/\\\/americanmovershub.com\\\/wp-content\\\/uploads\\\/2026\\\/05\\\/782a9734f6d87e027e85c5dc812002db.avif\",\"width\":630,\"height\":331},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/americanmovershub.com\\\/?p=922#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/americanmovershub.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Opinion: Utah\u2019s oil and gas bonding reform shows the value of practical progress \u2014 let\u2019s keep going\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/americanmovershub.com\\\/#website\",\"url\":\"https:\\\/\\\/americanmovershub.com\\\/\",\"name\":\"American Movers Hub\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/americanmovershub.com\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/americanmovershub.com\\\/#\\\/schema\\\/person\\\/b68c8483906c0d2987f271455f0177af\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"caption\":\"admin\"},\"sameAs\":[\"http:\\\/\\\/americanmovershub.com\"],\"url\":\"https:\\\/\\\/americanmovershub.com\\\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Opinion: Utah\u2019s oil and gas bonding reform shows the value of practical progress \u2014 let\u2019s keep going - American Movers Hub","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/americanmovershub.com\/?p=922","og_locale":"en_US","og_type":"article","og_title":"Opinion: Utah\u2019s oil and gas bonding reform shows the value of practical progress \u2014 let\u2019s keep going - American Movers Hub","og_description":"We strongly support the Utah Division of Oil, Gas and Mining\u2019s proposed Bond Rule","og_url":"https:\/\/americanmovershub.com\/?p=922","og_site_name":"American Movers Hub","article_published_time":"2026-05-31T19:11:47+00:00","author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/americanmovershub.com\/?p=922#article","isPartOf":{"@id":"https:\/\/americanmovershub.com\/?p=922"},"author":{"name":"admin","@id":"https:\/\/americanmovershub.com\/#\/schema\/person\/b68c8483906c0d2987f271455f0177af"},"headline":"Opinion: Utah\u2019s oil and gas bonding reform shows the value of practical progress \u2014 let\u2019s keep going","datePublished":"2026-05-31T19:11:47+00:00","mainEntityOfPage":{"@id":"https:\/\/americanmovershub.com\/?p=922"},"wordCount":750,"commentCount":0,"image":{"@id":"https:\/\/americanmovershub.com\/?p=922#primaryimage"},"thumbnailUrl":"https:\/\/americanmovershub.com\/wp-content\/uploads\/2026\/05\/782a9734f6d87e027e85c5dc812002db.avif","articleSection":["Guest Opinion"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/americanmovershub.com\/?p=922#respond"]}]},{"@type":"WebPage","@id":"https:\/\/americanmovershub.com\/?p=922","url":"https:\/\/americanmovershub.com\/?p=922","name":"Opinion: Utah\u2019s oil and gas bonding reform shows the value of practical progress \u2014 let\u2019s keep going - American Movers Hub","isPartOf":{"@id":"https:\/\/americanmovershub.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/americanmovershub.com\/?p=922#primaryimage"},"image":{"@id":"https:\/\/americanmovershub.com\/?p=922#primaryimage"},"thumbnailUrl":"https:\/\/americanmovershub.com\/wp-content\/uploads\/2026\/05\/782a9734f6d87e027e85c5dc812002db.avif","datePublished":"2026-05-31T19:11:47+00:00","author":{"@id":"https:\/\/americanmovershub.com\/#\/schema\/person\/b68c8483906c0d2987f271455f0177af"},"breadcrumb":{"@id":"https:\/\/americanmovershub.com\/?p=922#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/americanmovershub.com\/?p=922"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/americanmovershub.com\/?p=922#primaryimage","url":"https:\/\/americanmovershub.com\/wp-content\/uploads\/2026\/05\/782a9734f6d87e027e85c5dc812002db.avif","contentUrl":"https:\/\/americanmovershub.com\/wp-content\/uploads\/2026\/05\/782a9734f6d87e027e85c5dc812002db.avif","width":630,"height":331},{"@type":"BreadcrumbList","@id":"https:\/\/americanmovershub.com\/?p=922#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/americanmovershub.com\/"},{"@type":"ListItem","position":2,"name":"Opinion: Utah\u2019s oil and gas bonding reform shows the value of practical progress \u2014 let\u2019s keep going"}]},{"@type":"WebSite","@id":"https:\/\/americanmovershub.com\/#website","url":"https:\/\/americanmovershub.com\/","name":"American Movers Hub","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/americanmovershub.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/americanmovershub.com\/#\/schema\/person\/b68c8483906c0d2987f271455f0177af","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","caption":"admin"},"sameAs":["http:\/\/americanmovershub.com"],"url":"https:\/\/americanmovershub.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/americanmovershub.com\/index.php?rest_route=\/wp\/v2\/posts\/922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/americanmovershub.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/americanmovershub.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/americanmovershub.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/americanmovershub.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=922"}],"version-history":[{"count":0,"href":"https:\/\/americanmovershub.com\/index.php?rest_route=\/wp\/v2\/posts\/922\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/americanmovershub.com\/index.php?rest_route=\/wp\/v2\/media\/921"}],"wp:attachment":[{"href":"https:\/\/americanmovershub.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/americanmovershub.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/americanmovershub.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}