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Stephanie Garcia Richard, Commissioner of Public Lands | New Mexico State Land Office

New Mexico plugs 700 inactive oil and gas wells amid fiscal concerns

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The State Land Office in New Mexico has made significant progress in its efforts to address the issue of abandoned oil and gas wells on state lands. Commissioner of Public Lands Stephanie Garcia Richard announced that 700 such wells have been plugged as part of an initiative to hold operators accountable. This announcement coincides with a report from the New Mexico Legislative Finance Committee (LFC) highlighting the financial and environmental risks associated with end-of-life oil and gas wells.

The Oil Conservation Division (OCD) is responsible for regulating these operators, ensuring that inactive wells are properly managed. However, the State Land Office has independently enforced lease terms requiring companies to plug non-producing wells and clean up spill sites. These actions fall under the Accountability & Enforcement program launched by Commissioner Garcia Richard in 2020.

The LFC report estimates that cleaning up an oil or gas site costs approximately $163,000. By enforcing accountability, the State Land Office claims to have saved taxpayers over $114 million. "I launched the Accountability & Enforcement program to make sure taxpayers aren’t on the hook for expensive cleanup costs," said Commissioner Garcia Richard. She emphasized legal action against non-compliant companies, noting her pride in leading efforts to change industry practices regarding legacy well management.

Since taking office in 2019, Commissioner Garcia Richard has overseen initiatives aimed at protecting state lands while generating revenue for public institutions. The Accountability & Enforcement program has resulted in around 40 lawsuits targeting unplugged wells and other compliance issues on state lands.

Previously lacking a comprehensive approach, the State Land Office now routinely reviews operations posing environmental threats. The program's measures include plugging inactive wells, cleaning spills, removing abandoned equipment, and restoring land conditions.

Operators are initially contacted for voluntary compliance; failure to respond can lead to litigation. Under Commissioner Garcia Richard's leadership, over 13 million acres of state trust land support various uses while balancing financial goals with environmental stewardship.

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