Mitch Krakauskas Treasurer | Independent Petrolium Association of New Mexico
On June 25, 2025, the New Mexico Legislative Finance Committee (LFC) released a report on the abandoned well program in New Mexico. The report, spanning 47 pages, aims to provide an unbiased perspective on the issue.
Representatives from the Independent Petroleum Association of New Mexico (IPANM) and the New Mexico Oil & Gas Association (NMOGA) traveled to Taos to access early copies of the report. An LFC presentation was scheduled immediately after the release, and both organizations sought to offer their reactions.
Public comments from IPANM during the hearing can be accessed at time code 4:57:20 in the LFC Committee Hearing Stream dated June 24, 2025. NMOGA's comments follow immediately in the stream. The full presentation of the LFC Abandoned Wells Report, including remarks from the New Mexico Oil Conservation Division (OCD), starts at time code 2:40:45. Legislators' questions begin at time code 3:15:15 following these presentations.
IPANM expressed concerns about not being consulted during the report's data-gathering phase. They criticized it as "highly problematic" due to insufficient consideration of data from small producers.
Jim Winchester, Executive Director of IPANM, stated: “While we appreciate the hard work of the Legislative Finance Committee with the goal to present a non-biased analysis, IPANM strongly believes the study has some conclusions and erroneous estimations due to a lack of sufficient data and an underreporting of the detrimental consequences of haphazardly raising financial assurance bonding on small producers. Some of the recommended actions would make the problem worse by leading to an immediate spike in abandoned wells and driving many highly reputable small oil & gas companies out of business.”
These comments come as IPANM is preparing a defense against proposed higher financial assurance levels for operators. This follows a rulemaking hearing petitioned by the Western Environmental Law Center in May 2024. Both IPANM and NMOGA plan to intervene in this matter during an October 20, 2025 hearing before the Oil Conservation Commission.
IPANM has also formed an ad-hoc Financial Assurance Committee that meets weekly to prepare for October’s rulemaking hearing.
The association remains committed to protecting and promoting independent producers and industry interests in New Mexico.
