Texas' Low-Producing Oil Wells Spark Landowner Disputes and Environmental Concerns

Some Texas oil wells produce hundreds of barrels of oil daily, but thousands operate at minimal output—often trickling just a few barrels per month. Jackie Chesnutt, a retired engineer and landowner in West Texas, owns a ranch with five wells that she claims violate state production rules. The operator, CORE Petro, disputes this, stating its wells remain in compliance despite financial struggles.

Thousands of Texas Wells Operate at Minimal Output

About two-thirds of Texas’ active oil wells—approximately 99,000—produce less than 10 barrels per day, according to the state regulator. To stay active, wells must yield at least five barrels for three consecutive months or one barrel for 12 consecutive months. Many operators maintain minimal production to avoid plugging costs, which can exceed tens of thousands of dollars.

Landowners like Chesnutt argue that low-producing wells create pollution risks and leave burdensome equipment on their property. “The wells on the lease are all producing,” said Railroad Commission spokesperson Bryce Dubee. Environmental advocates and industry analysts report hearing claims that companies report bare-minimum production to delay well-plugging.

Texas Faces Growing Orphan Well Crisis

Texas has over 159,000 inactive wells. If an operator goes out of business, unplugged wells become orphan wells, adding to the state’s record-high backlog of more than 11,000 such wells. A 2022 report by the nonprofit Commission Shift urged stricter rules to prevent companies from indefinitely producing minimal amounts of oil or gas to avoid decommissioning costs.

“Companies should not be able to ‘indefinitely “produce” a teaspoon of crude or a cubic foot of gas simply to avoid paying for decommissioning.’”

Landowner Battles Over Compliance and Costs

Chesnutt, a 69-year-old retired pharmaceutical worker, purchased her 375-acre ranch near San Angelo in 1998. After retiring, she raises goats and sheep while fighting to shut down what she calls non-compliant wells on her property. Her complaints to the Railroad Commission of Texas, the state’s oil and gas regulator, have yielded no results. In response, she has cut power to CORE Petro’s wells, which the company disputes.

CORE Petro claims Chesnutt is violating state rules by interfering with operations. The company argues it cannot afford to plug the wells, stating, “We’re not financially able to plug a bunch of oil wells. That’s not why we’re in this business.”

Calls for Stricter Regulations

Advocates for reform argue that Texas must enforce stricter timelines for well-plugging to prevent financial burdens on landowners and the state. With thousands of low-producing wells and a growing orphan well backlog, the debate over responsibility, compliance, and environmental protection continues.