New Mexico’s new plan to stave off abandoned oil and gas wells is already running into opposition.
The state Oil Conservation Commission voted this month to increase the financial assurance companies have to post for oil and gas wells, particularly for certain high-risk sites, hoping to avoid leaving taxpayers on the hook.
The oil industry says the plan could increase costs. And it points out that the State Land Office, a separate agency, is also raising bonding requirements for wells on state lands. The Trump administration, meanwhile, is cutting bonding requirements for wells on federal land.
The state’s main oil and gas industry group hasn’t said whether it will challenge the OCC’s plan in court. But it says the barrage of state changes is unfair.
