# Diversified Energy and West Virginia launch $70 million well retirement fund

- Link: https://www.directorstalkinterviews.com/diversified-energy-and-west-virginia-launch-70-million-well-retirement-fund/4121221362
- Published: 2025-10-22T12:13:28+01:00
- Author: Amilia Stone

Governor Patrick Morrisey, in partnership with **[Diversified Energy Company plc](https://www.directorstalkinterviews.com/company/diversified-energy-company-plc/dec.l)**(
NYSE:DEC & [LON:DEC](https://www.directorstalkinterviews.com/company/diversified-energy-company-plc/dec.l)),
has announced a groundbreaking agreement to establish the nation’s first financial
assurance fund dedicated to retiring oil and gas wells. This public-private collaboration
solidifies the Company’s commitment to fiscal responsibility and financial means
for future well retirement and provides the public with assurances that West Virginia
companies will be good stewards of the environment. Known as the **Mountain State
Plugging Fund**, this innovative initiative further ensures that Diversified’s oil
and natural gas wells in West Virginia will be safely retired at no cost to taxpayers,
setting a new responsible stewardship standard for aging energy infrastructure across
the United States.

This landmark fund represents a $70 million commitment over 20 years from Diversified
Energy to the State of West Virginia and ensures long-term environmental stewardship
and economic [sustainability](https://www.directorstalkinterviews.com/sustainability-green-stocks-news).
The fund is part of West Virginia’s proactive approach to energy policy, while also
providing a continued focus on environmental safety for its residents, positioning
the Mountain State as a national leader in innovative energy solutions.

In conjunction with this agreement, Diversified will bolster its investment in its
wholly owned subsidiary, Next LVL Energy, to grow its already leading well retirement
capacity within the Appalachian Basin, creating jobs and meaningful economic impact
in the region.

> “I’m proud to announce this transformative partnership with Diversified Energy,
> a company started right here in West Virginia,” **said Governor Morrisey**. “The
> Mountain State Plugging Fund is a bold step forward — delivering high-paying jobs
> as well as environmental and economic benefits for our communities while showcasing
> West Virginia’s leadership in energy innovation. This initiative sends a clear
> message: West Virginia can both be a leader in energy dominance and in environmental
> solutions.”

> “Diversified is proud to deepen our commitment to and investment in West Virginia
> through this historic partnership,” **said Diversified Energy CEO Rusty Hutson,
> Jr**. “Governor Morrisey’s leadership has been instrumental in creating energy
> solutions that protect our environment while strengthening our economy. This fund
> sets a new standard of financial assurance for the industry and reflects our shared
> vision for responsible energy development in West Virginia.”

West Virginia becomes the first state government to partner with an energy company
to meaningfully and proactively eliminate future funding concerns for non-producing
wells.

Key details of the agreement include:

 * $70 million investment from Diversified across the initial 20-year period, which
   is expected to grow over time to $650 million of financial protection to West
   Virginia.
 * **The Mountain State Plugging Fund’s** $70 million principal contributed by Diversified
   will be guaranteed by OneNexus, an insurance provider of financial assurance 
   for asset retirement obligations. The fund is held by OneNexus for Diversified’s
   well retirement obligations in West Virginia, with the state designated as a 
   third-party beneficiary, ensuring all Diversified wells in the state are safely
   plugged and retired.
 * Diversified agrees to retire at least 1,500 wells in the first 20 years as the
   Mountain State Plugging Fund is established, increasing to a goal of 250 wells
   annually.
 * Other oil and gas operators may establish similar funds to address the plugging
   of other non-producing or existing orphan wells.

The fund aligns West Virginia’s commitment to sustainable economic development and
energy superiority with Diversified’s role as a leading operator and steward of 
mature producing assets. The new agreement also builds on current consent agreements
with Diversified Energy.

Next LVL Energy, a subsidiary of Diversified Energy that is headquartered in Bridgeport,
W.Va., will lead asset retirement operations for the Diversified wells under the
fund. With a fleet of more than 20 rigs — with plans to materially expand over the
next 12 months — Next LVL Energy is uniquely positioned to deliver high-quality,
cost-effective plugging services. By the end of 2025, Next LVL will have plugged
1,335 wells in the Appalachian Basin, more than any other operator in the region,
including an anticipated 360 wells in 2025 alone, while also performing leak detection,
soil remediation, and habitat restoration.

OneNexus provides enhanced financial assurance for the energy sector that enables
operators to prefund their plugging and abandonment (P&A) expenses. Through its 
innovative coverage, OneNexus funds are permanent, secure, and guaranteed. OneNexus
has partnered with Munich Re, a AA-rated global insurance company, to ensure that
funds will be available when needed.

As the world’s largest privately held insurance broker, Lockton partners with OneNexus
to connect energy operators with well-retirement and decommissioning solutions.

Together, West Virginia and Diversified Energy are setting a model for how energy-
producing states can safeguard the environment while ensuring long-term economic
growth.

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