{"data":{"id":"us-ky/krs-353.562","jurisdiction":"us-ky","citation":"KRS 353.562","heading":"Kentucky Abandoned  Storage Tank and Orphan  Well Reclamation","body":"Program  -- Kentucky  abandoned  storage  tank  and  orphan  well\nreclamation fund -- Use  of funds received from federal Infrastructure\nInvestment and Jobs Act -- Initial grants -- Grant types.\n(1) (a) There  is hereby created the Kentucky Abandoned  Storage Tank and\nOrphan Well Reclamation Program. The purpose of the program is to:\n1. Remediate and reclaim abandoned storage tanks;\n2. Properly plug and abandon eligible wells; and\n3. Address  imminent  threats to human  health, safety, or the\nenvironment  posed  by  oil and  gas  facilities located in the\nCommonwealth.\n(b) Reclamation of abandoned storage tank facilities and eligible wells under\nthe program shall include:\n1. Removing  necessary well and tank infrastructure;\n2. Proper plugging and abandonment of eligible wells;\n3. Proper abandonment of tanks posing an imminent threat to human\nhealth, safety, or the environment;\n4. Implementation of best management  practices at sites associated\nwith eligible wells or abandoned storage tank facilities; or\n5. Removing  primary and secondary sources of contamination of the\nland, air, and water.\n(c) Orphan  wells and abandoned  storage tank facilities determined by the\ncabinet to be eligible for plugging, removal, reclamation, and cleanup\nfunds from the Kentucky abandoned  storage tank and orphan well\nreclamation fund shall be addressed in accordance with this section and\nKRS  353.561, 353.563, and 353.564.\n(2) The  Kentucky abandoned storage tank and orphan well reclamation fund is\nhereby created as an interest-bearing, restricted, agency account. The fund\nshall be administered by the cabinet. Interest credited to the account shall be\nretained in the account. Notwithstanding KRS  45.229, any moneys remaining\nin the fund at the close of the fiscal year shall not lapse but shall be carried\nforward into the succeeding fiscal year to be used for the purposes authorized\nand set forth in this section and KRS 353.561, 353.563, and 353.564.\n(3) The  fund established in subsection (2) of this section may utilize and expend\nfunds as authorized by the biennial budget.\n(4) Moneys  in the fund shall be for carrying out the purpose provided in subsection\n(1) of this section, including any administrative costs incurred by the cabinet\nduring the implementation of this section and KRS  353.561, 353.563, and\n353.564. The fund may  receive moneys  from federal and state grants or\nappropriations, and from any other proceeds received for the purposes of this\nsection and KRS  353.561, 353.563, and 353.564. Separate accounts may be\nestablished within the fund to segregate moneys  received and expended for\ndifferent programs operated by the Kentucky Abandoned  Storage Tank and\nOrphan Well Reclamation Program.\n(5) (a) Funds may be expended for costs incurred in the:\n1. Remediation and reclamation of abandoned storage tank facilities;\n2. Proper plugging, remediation, reclamation, and abandonment  of\neligible wells; or\n3. Proper remediation, reclamation, and abandonment  of abandoned\nstorage tank facilities posing an imminent threat.\n(b) These funds may be expended in accordance with this section and after\nthe cabinet determines that:\n1. The well qualifies as an eligible well as defined in KRS 353.510;\n2. There  is no  person identified or found with continuing legal\nresponsibility for the abandoned storage tank facility; or\n3. Reclamation or remedial measures are necessary to respond to an\nimminent threat to human  health, safety, or the environment, posed\nby an abandoned storage tank facility or improperly abandoned well.\n(6) Reclamation measures paid for by the fund shall include the following:\n(a) Removal  and disposal of abandoned storage tank facilities;\n(b) Reclamation of lands affected by abandoned  storage tank facilities,\nincluding:\n1. Proper removal or abandonment of flow lines;\n2. Removal  or treatment of contaminated soil to no more than three (3)\nfeet in depth;\n3. Elimination of all berms, dikes, and other structures utilized as spill\nprevention, control, and countermeasure structures;\n4. Grading, stabilization, and seeding of the surface where the tank or\ntank battery was located; and\n5. Implementation of best management  practices at sites associated\nwith abandoned storage facilities; and\n(c) Reclamation of lands affected by eligible wells, including:\n1. Proper removal or abandonment of flow lines;\n2. Removal  and disposal of surface production equipment;\n3. Grading, stabilization, and seeding of the surface where the well\nwas located;\n4. Implementation of best management  practices at sites associated\nwith eligible wells; and\n5. Removal  or treatment of contaminated soil to no more than three (3)\nfeet in depth.\n(7) If during the course of removing and reclaiming an abandoned storage tank\nfacility or plugging and reclaiming an eligible well, the division observes\nevidence of soil contamination below three (3) feet depth, the division shall\nconsult with the Department for Environmental Protection to determine whether\nfurther action is necessary to protect public health and the environment.\nNothing contained in this section shall be construed to obligate the fund to\nprovide additional moneys for removal or treatment of contaminated soil other\nthan provided in subsection (6)(b)2. and (c)5. of this section.\n(8) Any  person performing reclamation measures pursuant to this section shall\ncomply with applicable local, state, and federal laws and regulations.\n(9) The cabinet shall have the authority to:\n(a) Contract for services provided by and engage in cooperative projects with\nother government agencies or private parties in the furtherance of any\nremedial or reclamation project authorized and undertaken pursuant to\nthis section and KRS 353.561, 353.563, and 353.564;\n(b) Enter into agreements with those government agencies or private parties\nto compensate those agencies and private parties with funds from the\naccount; and\n(c) Accept and deposit into separate accounts within the fund any federal,\nstate, and other funds for the purposes of subsection (10) of this section\nand KRS 353.561, 353.563, and 353.564.\n(10) Moneys  received by the Commonwealth  from the Infrastructure Investment and\nJobs Act, Pub. L. No. 117-58, shall be placed into a separate account within\nthe fund to administer and award contracts which are committed to and issued\nfor the purposes of Pub. L. No. 117-58 and any federal rules and guidance\nissued pursuant thereto. Moneys received by the Commonwealth  under Pub. L.\nNo. 117-58:\n(a) May  be used for the plugging and abandonment  of wells and the\nremediation and  reclamation of associated pipelines, facilities, and\ninfrastructure eligible for funding under this section; and\n(b) Shall be maintained and expended in a manner  as provided by any\nfederal rules and guidance issued pursuant to Pub. L. No. 117-58.\n(11) Except for the modification allowed for initial grants in subsection (12) of this\nsection, the number of eligible wells in the vendor's scope of work for contracts\nissued pursuant to subsection (10) of this section for all grant types established\nunder Pub. L. No. 117-58 shall be limited as follows:\n(a) One-third (1/3) of the contracts issued in a twelve (12) month period shall\nbe limited to no more than ten (10) wells;\n(b) One-third (1/3) of the contracts issued in a twelve (12) month period shall\nbe limited to no more than twenty-five (25) wells; and\n(c) One-third (1/3) or the remaining contracts issued within a twelve (12)\nmonth period shall not have a limit on the number of wells in the scope of\nwork.\n(12) The  cabinet may  adjust the number  of wells within a bid package issued\npursuant to subsections (10) and (11) of this section as needed in order to\ncomply with any deadlines imposed under Pub. L. No. 117-58 for initial grants,\nprovided that the overall percentages required in subsection (11) of this section\nare achieved at the end of each twelve (12) month period.\n(13) As  used  in this section, \"grant types\" means  the initial, formula, and\nperformance grant categories that states can use to apply for moneys to clean\nup  orphan wells described in the December  17, 2021, guidance to states\nissued by the United States Department of the Interior.","path":["KRS Chapter 353"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52165","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:39Z","sha256":"8438ecb75988046dae0d2ad78cc862859eacfe6ac988138d6bf6f5be263a9db0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-353.561","next":"us-ky/krs-353.563"},"notice":"GroundRules: Original legal text. Not legal advice."}