Bill > HB403

This bill modifies the distribution and use of the Oil and Gas Reclamation Fund in New Mexico, making several key changes. First, it adjusts the tax distribution to the fund, removing previous percentage-based calculations and instead mandating a direct distribution of net receipts from the Oil and Gas Conservation Tax Act. The bill also changes how money in the fund can be used, now requiring that at least $40 million or 5% of the fund's average year-end market value be dedicated specifically to surveying abandoned wells, preparing plans for plugging improperly abandoned wells, and restoring well sites and associated production facilities. The legislation removes a previous provision that allowed up to $150,000 annually for energy education. The bill gives the oil conservation division more explicit authority to reclaim and plug abandoned wells, including those on federal lands, and allows contractors who plug wells to sell removed equipment and deduct sale proceeds from their work costs. The changes aim to strengthen environmental oversight and remediation efforts in oil and gas operations, with the provisions set to take effect on July 1, 2025.

Agriculture and Natural Resources

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=403&year=25