New Mexico's oil and gas industry has been at the forefront of environmental responsibility, particularly in well plugging efforts. Recent data shows that operators have plugged over 90% of decommissioned wells in the state, totaling 451 wells, compared to 49 plugged by the Oil Conservation Division (OCD). This demonstrates a significant contribution from the industry without relying on taxpayer funds.
"Only tax dollars paid by the oil and gas industry are used to plug orphaned wells in New Mexico," states Missi Currier. The millions spent by OCD come directly from the Reclamation Fund, which is funded entirely by taxes paid by the industry.
Out of 68,516 active wells in New Mexico, approximately 34,000 are State and Fee wells. Among these, only 349 are classified as orphaned, indicating a low orphan rate of about 1%. The industry acknowledges this as an area for improvement and remains committed to reducing this number further with continued collaboration with OCD.
Despite these efforts, challenges remain in ensuring that funds allocated for well-plugging are used effectively. By November 2024, the Reclamation Fund had grown to approximately $66 million due to increased federal support and contributions from the Conservation Tax. However, administrative delays risk slowing progress.
"The oil and gas industry supports modernizing the Reclamation Fund," Currier emphasizes. Streamlining procurement processes and reducing administrative burdens could enhance its effectiveness for environmental protection purposes.
The industry's commitment extends beyond just energy production; it includes restoring land to its native state after a well's lifecycle ends. "It’s a responsibility we take seriously—and one we’re already fulfilling," Currier asserts.
The call is for New Mexico's leadership to prioritize using dedicated funds efficiently for well plugging and site remediation while maintaining focus on preserving environmental integrity for future generations.
