Summary:

 House Bill 481 (HB 481) provides that owners, operators or lessees with a current or prior interest or control of an oil or gas well, facility, pit or installation of immobile
surface equipment shall be responsible for reimbursing the Oil Conservation Division of the Energy, Minerals and Natural Resources Department for plugging and abandonment costs and other associated costs.

 

Legislation Overview:

 House Bill 481 (HB 481) creates a new section of the Oil and Gas Act (OGA)(Section 70-2-1 et seq NMSA 1978) that requires owners, operators or lessees with a current or prior interest or control of an oil or gas well, facility, pit or installation of immobile surface equipment to be responsible for reimbursing the Oil Conservation Division (OCD) of the Energy, Minerals and Natural Resources Department (EMNRD) for all associated costs for the plugging and abandonment of oil and gas production or salt water disposal well including deconstruction, removal and disposal of the associated equipment; remediation of any environmental contamination reasonably associated with these activities; and restoration and revegetation of impacted areas. 
Although HB 481 allows owners, operators and lessees with an interest or control in an oil or gas well, facility, pit or installation to contractually to allocate responsibility between or among otherwise responsible parties, such an agreement does not bind the OCD or require it to seek recovery from any particular responsible party or from responsible parties in any particular order.
HB 481 applies to owners, operators and lessees with an interest or control in an oil or gas well, facility, pit or installation beginning on or after 1 July 2025