ALBUQUERQUE, NEW MEXICO – Governor Michelle Lujan Grisham has signed House Bill 80, shifting more Oil and Gas Conservation Tax revenue into the state’s Oil and Gas Reclamation Fund — the fund used to plug orphaned wells and clean up abandoned oil and gas sites across New Mexico.
Under previous state law, oil and gas operators were required to plug their own inactive wells and remediate production sites. When companies went bankrupt or could not be located, the responsibility shifted to the state’s Oil Conservation Division, which used the Reclamation Fund to address these orphaned wells. Limited bonding requirements often meant the state absorbed much of the cost.
House Bill 80 gradually increases the percentage of tax revenue dedicated to the Reclamation Fund over the next decade. The bill also authorizes the fund to support statewide energy‑education programs.
The New Mexico Oil and Gas Association praised the legislation, saying it strengthens the state’s ability to manage abandoned wells and long‑term energy infrastructure needs.
