When an oil or gas well owner or operator files for bankruptcy, assets are divided up among creditors following an order of precedence.  As the climate crisis continues, and we transition away from fossil fuels, as we must, fossil fuel companies' financial viability will be increasingly challenged.  We can't let any bankruptcy on their part further endanger the health of the planet should the order of preference for well closure obligations fall far enough to leave insufficient assets available to cover the job.

We must urge the President of the United States and the United States Congress to modify bankruptcy rules to provide, in the event of liquidation and termination of oil and gas leases under the United States Bankruptcy Code, that priority is given to plug and abandonment and restoration obligations, to protect the environment, over all secured creditor claims.