HB 361
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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:
"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:
"DEFINITIONS.--As used in the Well Repurposing Act:
A. "energy storage" means the ability to capture
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 HB 361
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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:
"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 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:
"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 HB 361
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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.