COSTS OF PLUGGING & ABANDONMENT OF WELLS

HB 481 requires current and former owners, operators, or lessees of oil and gas wells, facilities, or equipment in New Mexico to pay for plugging abandoned wells, removing associated equipment, cleaning up environmental damage, and restoring land. It directly affects oil and gas companies and landowners who previously held rights to wells, shifting costs from taxpayers to responsible parties. The bill creates a new requirement for these entities to reimburse the state's Oil Conservation Division for all associated cleanup costs, including environmental remediation and site restoration. This policy change takes effect July 1, 2025, and allows contractual agreements between parties but does not bind the state regarding which party must pay.