Relating Equity and Credit Markets through Structural Models: Evidence from Volatilities

Final reclamation occurs when an operator determines, and BLM agrees, that a well has no economic value. The terms of final reclamation are included in the lease and the drilling permit. 8 The operator must follow the agreed-upon final reclamation plan, including plugging the wells, removing all visual evidence of the well and drill pad, recontouring the affected land, and revegetating the site with native plant species. In general, the goal is to reclaim the well site so that it matches the surrounding natural environment to the extent possible. BLM then inspects the site to monitor the success of the reclamation,...