Methods and tools for cutting a component in a wellbore are include use of a downhole tool that is tripped into a wellbore. The downhole tool includes at least one sensor that determines whether a quality of a cement around casing satisfies a predetermined standard. The casing is cut to remove an axial section of the casing and the at least one sensor determines whether at least a segment of the axial section of the casing remains adhered to the cement after the casing is cut. A casing removal tool can be activated to remove any remaining segments of casing in the axial section. A plug can be formed in the area where the axial segment of the casing was removed. The downhole tool may include a cutting tool with a laser, abrasive jet, or other cutting element shielded from wellbore debris by a fluid stream.