Bill > HB481

This bill establishes new responsibilities for owners, operators, and lessees of oil and gas wells, facilities, and related equipment regarding the costs of plugging and abandoning wells. Specifically, parties who currently or previously had an interest in oil or gas exploration and production will be financially responsible for reimbursing the Oil Conservation Division for expenses related to plugging and abandoning wells, including deconstruction and removal of equipment, environmental remediation, and area restoration. The bill allows these responsible parties to contractually allocate responsibilities among themselves, but such agreements cannot bind the division or dictate its recovery process. Importantly, these provisions will take effect on July 1, 2025, and apply to owners, operators, and lessees with an interest or control in oil or gas infrastructure from that date forward. The legislation aims to ensure that the costs of properly closing and cleaning up oil and gas sites are covered by those who have profited from or been involved in their operation, rather than becoming a financial burden to the state.

Agriculture and Natural Resources

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=481&year=25