About 1,000 abandoned oil and gas wells were plugged at the expense of New Mexico taxpayers in the last 20 years.

That’s according to a June 2025 report by the state’s Legislative Finance Committee, which also reported that if the state’s 60,000 currently active wells were also abandoned, the state could be on the hook for up to $1.6 billion.

Just over a year later, on Wednesday, July 1, New Mexico’s Oil Conservation Commission voted to approve new bonding requirements intended to put more of the financial assurance burden on oil companies.

The commission functions as the governing body of the Oil Conservation Division, the state’s main oil and gas compliance arm within the Energy, Minerals and Natural Resources Department.

So-called “marginal wells,” which produce 1,000 barrels of oil or less per year, were required to post a bond of $150,000 per well.

The new rules also specify that operators in New Mexico must provide a $250,000 “blanket bond” for all their wells in the state to cover cleanup costs should the well become inactive and abandoned.

Oil Conservation Division Chair Albert Change explained that the single-well bonds pay for plugging expenses “down hole” within the well, while the blanket bond is often used to fund remediation of the land at the surface.

That $150,000 per-well rate will also be required of wells owned by operators whose portfolio includes 20% of wells approved as inactive by the state.

Non-producing wells may be approved by the state to sit idle after an operator applies to the Oil Conservation Division. Owners of such wells were also required to provide reports to the state on progress toward again becoming productive.

The bonding requirements must be met before drilling a well can commence, according to the revision. Before the state can approve a well transfer – the process of selling wells between owners – the new owner must satisfy the bonding requirements under the revised rules.

The new regulations were first proposed by the Western Environmental Law Center in April 2025 and were approved July 1 on a unanimous vote by the three-person commission.

The change drew criticism from the oil and gas industry as another step by the state administration that will restrict energy development and diminish its contribution to the state’s economy.

Missi Currier, president of trade group the New Mexico Oil and Gas Association, said higher bonding rates were unnecessary as oil companies already contribute a portion of their proceeds to the Oil Reclamation Fund to pay for well cleanup.

Lawmakers passed House Bill 80, which was signed into law by Gov. Michelle Lujan Grisham on March 9, to increase the amount going into the fund and restrict it from other uses.

HB 80 increases the amount of the oil conservation tax going to the reclamation fund to 50% in 2027, then to 75% in 2028 and to 100% by 2029 until 2037 when the portion reverts to 50% permanently.

Based on projections of state oil prices included in a Legislative Finance Committee analysis published Feb. 5, the bill will generate annual revenue of $46.5 million for the reclamation fund by Fiscal Year 2028, increasing to $76.5 million by FY 2029 and to $108.7 million by FY 2030.

”The dollars in the Fund are generated exclusively by the oil and gas industry,” read a statement issued by the New Mexico Oil and Gas Association. “These funds are dedicated to surveying abandoned well sites, plugging orphaned wells, and restoring and remediating associated production facilities – work that is essential to protecting New Mexico’s land, water, and communities.”

Currier said the fund, combined with additional “stringent” state regulations on air emissions and other effects of oil and gas meant New Mexico operators were already adequately limiting impacts without higher bonding rates.

“New Mexico’s oil and gas industry is already subject to some of the nation’s most stringent regulatory requirements. Higher bonding requirements, reporting mandates, and additional transfer restrictions risk making New Mexico less competitive for investment,” Currier said.

“Our industry proudly invests billions of dollars in environmental stewardship and continues to plug wells, restore sites, and reduce emissions through best practices and under an extensive regulatory framework. We remain committed to working with regulators on policies that protect the environment while preserving New Mexico’s ability to attract investment and sustain the revenues that fund our schools, healthcare, and public services, making our state an energy mecca for generations to come.”

But environmental groups said the industry should pay more for cleanup, not rely on state tax revenue.

Hayley Jones of Carlsbad-based Citizens Caring for the Future, said the state’s new bonding rules will protect frontline communities such as hers that dwell alongside heavy oil and gas operations.

“In Carlsbad, we’ve seen firsthand what happens when corporations don’t have the financial backing in place to fix problems they create,” Jones said. “These rules are a practical step to make sure corporations clean up their wells so communities like ours aren’t left with the costs or the uncertainty.”

The Oil Conservation Commission’s rules come as the New Mexico State Land Office was underway with its own rulemaking to require higher bonding specifically on State Trust land, which the office leases to companies for oil and gas production.

On Oct. 23, 2025, the Land Office announced a proposal to increase bonding requirements from $10,000 to $150,000 for oil and gas operations on state land. A final decision on that rule was pending.

Meanwhile, at the federal level, the U.S. Department of the Interior said it planned to cut bonding requirements for operators on federal public land managed by the Bureau of Land Management.

In one of two rule changes announced June 22, the Interior Department reduced from $500,000 to $25,000 the minimum bond oil companies must post to pay for cleaning up all abandoned wells per state. The agency said it would reduce per well bonds from $150,000 to $10,000.

The department also said it planned to amend its Waste Prevention Rule by rescinding a requirement that operators provide plans to eliminate pollution when applying to the Bureau of Land Management for permission to drill.

The Interior Department estimated the change would save the industry $17 million a year in compliance costs.

“Energy dominance requires regulatory clarity,” said Interior Secretary Doug Burgum.

Carlsbad Caverns is surrounded by federal land open to oil and gas drilling.

That means, environmental groups warn, the park known for its picturesque, underground stalactites and stalagmites could face worsening pollution due to changes in federal policy regarding oil and gas companies operating on public land overseen by the U.S. Department of the Interior and managed by the department’s Bureau of Land Management.

In one of two rule changes announced Monday, June 22, the Interior Department reduced from $500,000 to $25,000 per well the minimum bond oil companies must post to pay for cleaning up abandoned wells.

The department also said it planned to amend its Waste Prevention Rule by rescinding a requirement that operators provide plans to eliminate pollution when applying to the Bureau of Land Management for permission to drill.

Interior Secretary Doug Burgum said in a statement the actions were intended to create “regulatory certainty” and rid the federal government of rules he said have “deterred investment” in public lands by oil and gas companies.

The Interior Department estimated the change would save the industry $17 million a year in compliance costs.

“Energy dominance requires regulatory clarity,” Burgum said.

The announcement drew criticism from New Mexico environmental groups who argued the policy changes were the latest steps in an ongoing effort by the administration of President Donald Trump to put industry profits ahead of environmental concerns.

Cutting ‘red tape’

Energy Director Sara Cawley of the National Parks Conservation Association pointed to Carlsbad Caverns National Park, which she said was especially susceptible to pollution from oil and gas drilling on public land.

The association, a national nonprofit headquartered in Washington, D.C., advocates for environmental issues as they relate to the national park system operated by the Interior Department and Bureau of Land Management.

Carlsbad Caverns and Chaco Culture National Historical Park in northwest New Mexico both border land managed by the bureau and open to oil and gas drilling, which Cawley said could endanger the parks under looser federal regulations.

And she said the oil and gas industry was already investing heavily to develop public land in states such as New Mexico, where on May 20 the bureau announced a record-breaking $4 billion sale of oil and gas leases for federal land in the Carlsbad area.

With continually expanding oil and gas operations in southeast New Mexico and throughout the Permian Basin – a 55,000-square mile fossil fuel deposit the region shares with West Texas – Cawley said the industry should pay more for restoration of the land through bonding, not less.

“They need to be held accountable for the cost of restoring the lands they already extract billions of dollars from annually,” she said. “And we need stronger protections to safeguard the health and future of these landscapes and the national parks next door.”

Industry groups supported the change.

Jim Winchester, president of the Independent Petroleum Association of New Mexico, said the move would support the smaller oil and gas companies his trade group represents.

Winchester said curbing the waste prevention rule and reducing bonding would create a more “level playing field” where smaller operators could better afford to compete with larger corporations.

“For oil and gas producers in New Mexico, these reforms remove the punishing upfront financial barriers and regulatory red tape,” he said.

Oil and gas bonding debated

Winchester was critical of efforts at the state level he said were moving in the “opposite direction.”

On Oct. 23, 2025, the New Mexico State Land Office announced a proposal to increase bonding requirements from $10,000 to $150,000 for oil and gas operations on State Trust Lands.

The New Mexico State Land Office leases trust land to industry and other uses through monthly lease auctions, similar to the Bureau of Land Management’s quarterly sales.

A rulemaking process on the increased bonding for state land leases was underway, with a public comment period closing on May 26.

“This will continue the widespread exodus of New Mexico producers who are simply choosing to conduct oil and gas operations on federal lands over state lands by a margin greater than 2 to 1 in New Mexico,” Winchester said. “State beneficiaries, schools, roads and increased public safety are all being denied millions of dollars in lost oil and gas revenues because of bad state policy.”

But State Land Commissioner Stephanie Garcia Richard said increased bonding was necessary to “modernize” the regulation and account for higher costs of remediation.

“Since entering office, I have made a point to hold lessees accountable to ensure that New Mexicans are not left holding the bag for environmental cleanup. Strengthening the oil and gas bonding rule is a critical part of those efforts,” she said in a statement.

That philosophy was not at work on the federal level, argued Michael Casaus, New Mexico state director at national environmental group the Wilderness Society.

He said the recent change in the Interior Department’s policy would disproportionately affect New Mexico, where 90% of its public land managed by the Bureau of Land Management is already open to oil and gas leasing and drilling.

“From polluted air and water to landscapes forever scarred, New Mexicans already experience firsthand the negative impacts of unchecked oil and gas development,” Casaus said.

Managing Editor Adrian Hedden can be reached at 575-628-5516, or @AdrianHedden on the social media platform X.

June 16

Arrest

Luis David Navarrette Machuca arrested while driving on a revoked license.

UNATTENDED DEATH

11:11 am – Officer dispatched to 2500 block of W. Quay Ave. in reference to a unattended death.

THREATS

11:145 am – Officer dispatched to 600 block of S. 14th St. in reference to threats.

WELFARE

11:20 am – Officer dispatched to 2600 block of W. Richey Ave. in reference to the welfare of an adult.

11:59 am – Officer dispatched to 700 block of W. Washington Ave. in reference to the welfare of an adult.

DOMESTIC

4:42 pm – Officer dispatched to 1400 block of W. Hank Ave. in reference to verbal domestic.

WELFARE

6:02 pm – Officer dispatched to 700 block of N. 10th St. in reference to the welfare of a child.

SUSPICIOUS

8:54 pm – Officer dispatched to 900 block of N. 13th St. in reference to a suspicious person.

11:11 pm – Officer dispatched to 600 block of W. Bush Ave. in reference to a suspicious person.

June 17

Arrest

Andrea Loera arrested for battery against a household member.

Joseph Estevan Olivos Jr. arrested or failure to comply.

UNWANTED

8:56 am- Officer dispatched to 500 block of S. 1st St. in reference to an unwanted subject.

WELFARE

9:02 am – Officer dispatched to 700 block of N. 13th St. in reference to the welfare of an adult.

WANTED

9:12 am – Officer dispatched to 100 block of N. 15th St. in reference to a wanted subject.

ACCIDENT

9:38 am – Officer dispatched to 700 block of N. 13th St. in reference to a motor vehicle accident.

WELFARE

11L:50 am – Officer dispatched to 1100 block of S. 16th St. in reference to the welfare of a child.

12:01 pm – Officer dispatched to 2200 block of W. Ray Ave. in reference to the welfare of an adult.

DOMESTIC

1:32 pm – Officer dispatched to 700 block of S. Lolita Ave. in reference to domestic.

ACCIDENT

3:47 pm – Officer dispatched to N. 1st St. and E. Main St. in reference to a motor vehicle accident.

WELFARE

4:39 pm – Officer dispatched to 900 block of W. Hermosa Dr. in reference to the welfare of an adult.

6:30 pm – Officer dispatched to 2200 block of W. Ray Ave. in reference to the welfare of and adult.

DOMESTIC

6:33 pm – Officer dispatched to 1400 block of W. Hank Ave. in reference to verbal domestic.

WELFARE

6:40 pm – Officer dispatched to 700 block of n. 10th St. in reference to the welfare of a child.

DISTURBANCE

7:08 pm – Officer dispatched to 1400 block of W. Hank Ave.  in reference to disorderly disturbance.

7:36 pm – Officer dispatched to 700 block of W. Lolita Ave. in reference to disorderly disturbance.

DOMESTIC

7:38 pm – Officer dispatched to 2200 block of W. Ray Ave. in reference to physical domestic.

SUSPICIOUS

11:29 pm- Officer dispatched to 1900 block of W. Main St. in reference to suspicious trespass.

June 18

Arrest

Jacob Wooton arrested for stolen vehicle, contempt of court, failure to comply.

Marianna A Losoya arrested for battery against household member.

HARASSMENT

8:23 am – Officer dispatched to 3300 block of W. Main St. in reference to harassment.

STOLEN VEHICLE

9:39 am – Officer dispatched to 700 block of N. 10th St. in reference to a stolen vehicle.

SUSPICIOUS

10:02 am- Officer dispatched to N. 13th ST. and W. Main St. in reference to a suspicious person.

2:28 pm – Officer dispatched to 2400 block of W. Mann Ave. in reference to a suspicious person.

ACCIDENT

3:15 pm – Officer dispatched to 1000 block of S. 13th St. in reference to a motor vehicle accident.

FRAUD

3:24 pm – Officer dispatched to 1000 block of N. 6th St. in reference to fraud.

SUSPICIOUS

3:53 pm – Officer dispatched to 800 block of W. Quay Ave. in reference to suspicious activity.

ARMED SUBJECT

4:26 pm – Officer dispatched to 1600 block of N. 1st St. in reference to an armed subject.

WELFARE

4:51 pm – Officer dispatched to 900 block of N. 13th St. in reference to the welfare of a child.

SHOTS FIRED

6:07 pm – Officer dispatched to 1000 block of S. 13th St. in reference to shots fired in the area.

SUSPICIOUS

6:50 pm – Officer dispatched to 600 block of N. 1st St. in reference to a suspicious person.

WELFARE

7:34 pm – Officer dispatched to N. 26th ST. and W. Main St. in reference to the welfare of a child.

DOMESTIC

7:41 pm – Officer dispatched to 1000 block of S. Ward St. in reference to physical domestic.

DISTURBANCE

7:46 pm – Officer dispatched to 1400 block of W. Hank Ave. in reference to disorderly disturbance.

DOMESTIC

9:37 pm – Officer dispatched to 1400 block of W. Hank Ave. in reference to physical domestic.

June 19

Arrest

Fredrick Carlos Molina arrested for assault against a household member.

William Byrd arrested for driving while under the influence of liquor, driving on roadways landed for traffic.

Karmen Nicole Davis arrested for contempt of court, failure to comply.

FIGHT

12:03 am – Officer dispatched to 600 block of N. 8th St. in reference to a fight in progress.

DOMESTIC

12:14 am – Officer dispatched to 800 block of W. Missouri Ave. in reference to verbal domestic.

SUSPICIOUS

12:41 am – Officer dispatched to 800 block of S. 1st St. in reference to a suspicious person.

1:54 am – Officer dispatched to N 10th ST. and W. Bates Ave. in reference to a suspicious person.

WELFARE

2:00 am – Officer dispatched to 800 block of S. 6th St. in reference to the welfare of an adult.

SUSPICIOUS

9:43 am – Officer dispatched to 700 block of N. 13th St. in reference to suspicious trespass.

GRAFFITI

10:59 am – Officer dispatched to 1000 block of S. 13th St. in reference to graffiti.

11:12 am – Officer dispatched to 1100 block of S. 4th St. in reference to graffiti.

11:20 am – Officer dispatched to 200 block of W. Bullock Ave. in reference to graffiti.

1:01 pm – Officer dispatched to 1400 block of W. Bush Ave. in reference to graffiti.

1:09 pm – Officer dispatched to 1500 block of W. Hank Ave. in reference to graffiti.

1:11 pm -Officer dispatched to 1400 block of W. Hank Ave. in reference to graffiti.

DOMESTIC

6:48 pm – Officer dispatched to W.  Hermosa Dr. in reference to physical domestic.

ACCIDENT

7:11 pm – Officer dispatched to 300 block of N. 1st St. in reference to a motor vehicle accident.

WELFARE

7:22 pm – Officer dispatched to 300 block of S. 20th St. in reference to the welfare of an adult.

11:02 pm – Officer dispatched to 1000 block of W. Mahone Dr. in reference to the welfare of an adult.

June 20

WELFARE

8:27 am – Officer dispatched to 1300 block of S. 1st St. in reference to the welfare of an adult.

8:28 am – Officer dispatched to 300 block of S. 20th St. in reference to the welfare of an adult.

VANDAL

8:48 am – Officer dispatched to 100 block of W. Richardson Ave. in reference to vandal.

BATTERY

8:53 am – Officer dispatched to 1400 block of W.  Hank Ave. in reference to battery.

SUSPICIOUS

9:14 am – Officer dispatched to 2200 block of W. Bullock Ave. in reference to a suspicious vehicle.

GRAFFITI

9:24 am – Officer dispatched to 1000 block of S. 13th St. in reference to graffiti.

ACCIDENT

1:40 pm – Officer dispatched to S. 26th ST. and W. Grand Ave. in reference to a motor vehicle accident.

HARASSMENT

1:51 pm – Officer dispatched to 3300 block of W. Main St. in reference to harassment.

BURGLARY

6:15 pm – Officer dispatched to 2500 block of S. Runyan Ave. in reference to burglary alarm.

6:27 pm – Officer dispatched to 300 block of N. York St. in reference to structure burglary.

DISTURBANCE

9:33 pm – Officer dispatched to 3500 block of W. Quay Ave. in reference to a family disturbance.

INTOXICATED SUBJECT

10:50 pm – Officer dispatched to 1900 block of W. Richardson Ave. in reference to an intoxicated subject.

LOUD

10:54 pm – Officer dispatched to 2300 block of W. Briscoe Ave. in reference to loud music.

June 21

ARMED SUBJECT

2:57 am – Officer dispatched to W. Centre Ave. and S. 3rd St. in reference to an armed subject.

SUSPICIOUS

5:22 am – Officer dispatched to 1400 block of S. 21st St. in reference to a suspicious person.

UNWANTED

8:16 am – Officer dispatched to 300 block of N. 14th St. in reference to an unwanted subject.

WELFARE

11:01 am – Officer dispatched to 900 block of S. 1st St. in reference to the welfare of an adult.

LOUD

12:26 pm – Officer dispatched to 2300 block of Briscoe Ave. in reference to loud music.

DOMESTIC

3:09 pm – Officer dispatched to 1100 block of W. Centre Ave. in reference to verbal domestic.

WELFARE

3:42 pm – Officer dispatched to 3300 block of W. Main St. in reference to the welfare of an adult.

3:48 pm – Officer dispatched to 500 block of W. Chisum Ave. in reference to the welfare of an adult.

DISTURBANCE

5:31 pm – Officer dispatched to 900 block of S. 2nd St. in reference to disorderly disturbance.

WELFARE

8:12 pm – Officer dispatched to 400 block of W. Logan Ave. in reference to the welfare of an adult.

10:32 pm – Officer dispatched to N 1st St. and W. Chisum Ave. in reference to the welfare of an adult.

SHOTS FIRED

11:14 pm – Officer dispatched to 700 block of N. 10th St. in reference to shots fired in the area.

June 22

Arrest

Bobby Lee Wilder arrested for criminal trespass.

DISTURBANCE

12:46 am – Officer dispatched to 1100 block of W. Centre Ave. in reference to a neighborly disturbance.

SUSPICIOUS

9:50 am – Officer dispatched to 2000 block of W. Main St. in reference to suspicious trespass.

 WELFARE

2:04 pm – Officer dispatched to S. 20th St. and W. Main St. in reference to the welfare of an adult.

4:26 pm – Officer dispatched to 1500 block of S. 1st St. in reference to the welfare of a child.

UNWANTED

3:37 pm – Officer dispatched to 1900 block of W. Main St. in reference to an unwanted subject.

ACCIDENT

5:05 pm – Officer dispatched to N. 1st St. and W. Richey Ave. in reference to a motor vehicle accident.

SUSPICIOUS

6:10 pm – Officer dispatched to 1900 block of W. Richey Ave. in reference to a suspicious person.

6:38 pm – Officer dispatched to 1800 block of Booker Ave. in reference to a suspicious person.

WELFARE

7:03 pm – Officer dispatched to 400 block of N. 26th St. in reference to the welfare of an adult.

8:01 pm – Officer dispatched to W. Grand Ave. and S. 28th St. in reference to the welfare of a child.

BATTERY

7:56 pm – Officer dispatched to 600 block of N. 8th St. in reference to battery.