Overview
- Diversified will contribute $70 million over 20 years into the Mountain State Plugging Fund, with West Virginia designated as a third-party beneficiary.
- The company commits to retire at least 1,500 wells in the first 20 years and sets a longer-term goal of plugging about 250 wells per year thereafter.
- The fund is held and guaranteed by OneNexus with Munich Re support to ensure money is available even if the company fails.
- Next LVL Energy, Diversified’s Bridgeport-based subsidiary, will lead field work using a fleet of more than 20 rigs, with plans to expand and add 50 to 100 jobs at roughly $75,000 a year plus benefits.
- Officials describe the partnership as a first-of-its-kind state-private model and invite other operators to follow, while environmental advocates question whether the funding level matches the scale of Diversified’s inactive well inventory.