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HOUSE BILL 361
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Andrea Romero
AN ACT
RELATING TO NATURAL RESOURCES; PROVIDING THAT THE ENERGY,
MINERALS AND NATURAL RESOURCES DEPARTMENT MAY AUTHORIZE THE
CONVERSION OF AN OIL OR GAS WELL INTO A FACILITY THAT PROVIDES
ENERGY STORAGE OR DEVELOPS GEOTHERMAL ENERGY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of Chapter 71 NMSA 1978 is
enacted to read:
"[NEW MATERIAL] SHORT TITLE.--This act may be cited as the
"Well Repurposing Act"."
SECTION 2. A new section of Chapter 71 NMSA 1978 is
enacted to read:
"[NEW MATERIAL] DEFINITIONS.--As used in the Well
Repurposing Act:
A. "energy storage" means the ability to capture
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energy sources at one time for use at a later time;
B. "geothermal energy development" means the
development of geothermal resources; and
C. "geothermal resources" means the natural heat of
the earth in excess of two hundred fifty degrees Fahrenheit, or
the energy, in whatever form, below the surface of the earth
present in, resulting from, created by or that may be extracted
from this natural heat in excess of two hundred fifty degrees
Fahrenheit, and all minerals in solution or other products
obtained from naturally heated fluids, brines, associated gases
and steam, in whatever form, found below the surface of the
earth, but excluding oil, hydrocarbon gas and other hydrocarbon
substances and excluding the heating and cooling capacity of
the earth not resulting from the natural heat of the earth in
excess of two hundred fifty degrees Fahrenheit, as may be used
for the heating and cooling of buildings through an on-site
geo-exchange heat pump or similar on-site system."
SECTION 3. A new section of Chapter 71 NMSA 1978 is
enacted to read:
"[NEW MATERIAL] AUTHORIZATION OF OIL OR GAS WELL
CONVERSION--ENERGY STORAGE--GEOTHERMAL ENERGY DEVELOPMENT.--The
energy, minerals and natural resources department may authorize
the conversion of an oil or gas well into a facility that
provides or supports energy storage or geothermal energy
development. When authorizing such a conversion, the
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department may establish fees and financial assurance
requirements specific to the energy storage or geothermal
development uses."
SECTION 4. A new section of Chapter 71 NMSA 1978 is
enacted to read:
"[NEW MATERIAL] WELL REPURPOSED FOR ENERGY STORAGE--
BENEFICIAL USE.--
A. An oil or gas well that is authorized by the
energy, minerals and natural resources department pursuant to
the Well Repurposing Act to be used for energy storage and that
is actively operated for energy storage shall not be considered
an inactive or abandoned well and shall be considered a well
that is being used for beneficial purposes.
B. If an oil or gas well authorized for energy
storage ceases storage operations for twelve months or longer,
the well shall be plugged and abandoned pursuant to state law
and rules issued by the oil conservation division of the
energy, minerals and natural resources department."
SECTION 5. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.
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