EMNRD CONVERSION OF CERTAIN WELLS

HB 361, the "Well Repurposing Act," allows New Mexico's Energy, Minerals and Natural Resources Department (EMNRD) to authorize converting inactive oil or gas wells into facilities for energy storage or geothermal energy development. The bill establishes that wells repurposed for these uses are considered "beneficially used" and not abandoned, provided they remain active for energy storage. If storage operations stop for 12+ months, the well must be plugged and abandoned per existing rules. This law directly affects oil/gas well operators seeking to repurpose infrastructure and EMNRD, which will set fees and requirements for these conversions. The act takes effect July 1, 2025.