STUDY TRANSFERING OWNERSHIP OF ORPHANED WELLS

House Memorial 56 requests the Oil Conservation Division to study transferring ownership of New Mexico's orphaned oil and gas wells to third parties for energy storage and hydrocarbon recovery projects. The study will analyze financial benefits, including initial investment costs, potential profits, and regulatory barriers, compared to the state's estimated $700 million to $1.6 billion cleanup liability for over 1,700 orphaned wells. It aims to determine if private-sector involvement could turn a state financial burden into a profitable venture while addressing environmental hazards. The study must be completed by November 1, 2026, and presented to legislative committees.