New Mexico 2025 Regular Session

New Mexico House Bill HB403 Compare Versions

Only one version of the bill is available at this time.

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28	28	HOUSE BILL 403
29	29	57
30	30	TH LEGISLATURE
31	31	-
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33	33	STATE
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35	35	OF
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37	37	NEW
38	38
39	39	MEXICO
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41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Mark B. Murphy and Meredith A. Dixon and Rod Montoya
48	48	and Elaine Sena Cortez and Jonathan A. Henry
49	49	AN ACT
50	50	RELATING TO THE OIL AND GAS RECLAMATION FUND; INCREASING THE
51	51	AMOUNT OF THE TAX IMPOSED PURSUANT TO THE OIL AND GAS
52	52	CONSERVATION TAX ACT DISTRIBUTED TO THE FUND; AMENDING HOW
53	53	MONEY IN THE FUND CAN BE USED.
54	54	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
55	55	SECTION 1. Section 7-1-6.21 NMSA 1978 (being Laws 1985,
56	56	Chapter 65, Section 7, as amended) is amended to read:
57	57	"7-1-6.21. DISTRIBUTION TO OIL AND GAS RECLAMATION
58	58	FUND.--[A. With respect to any period for which the rate of
59	59	the tax imposed by Section 7-30-4 NMSA 1978 is nineteen-
60	60	hundredths percent, a distribution pursuant to Section 7-1-6.20
61	61	NMSA 1978 shall be made to the oil and gas reclamation fund in
62	62	an amount equal to two-nineteenths of the net receipts
63	63	attributable to the tax imposed under the Oil and Gas
64	64	.230171.5 underscored material = new
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91	91	Conservation Tax Act.
92	92	B. With respect to any period for which the total
93	93	rate of the tax imposed on oil by Section 7-30-4 NMSA 1978 is
94	94	twenty-four hundredths percent ] A distribution pursuant to
95	95	Section 7-1-6.20 NMSA 1978 shall be made to the oil and gas
96	96	reclamation fund in an amount equal to [nineteen and seven-
97	97	tenths percent of] the net receipts attributable to the tax
98	98	imposed under the Oil and Gas Conservation Tax Act."
99	99	SECTION 2. Section 70-2-38 NMSA 1978 (being Laws 1977,
100	100	Chapter 237, Section 5, as amended) is amended to read:
101	101	"70-2-38. OIL AND GAS RECLAMATION FUND ADMINISTERED--
102	102	PLUGGING WELLS ON FEDERAL LAND--RIGHT OF INDEMNIFICATION--
103	103	ANNUAL REPORT--CONTRACTORS SELLING EQUIPMENT FOR SALVAGE.--
104	104	A. The oil and gas reclamation fund shall be
105	105	administered by the oil conservation division of the energy,
106	106	minerals and natural resources department. Expenditures from
107	107	the fund [may] shall be used by the director of the division
108	108	only for the purposes [of ] provided by Subsection B of this
109	109	section.
110	110	B. The greater of forty million dollars
111	111	($40,000,000) or five percent of the average of the year-end
112	112	market values of the fund for the immediately preceding three
113	113	calendar years shall be dedicated for:
114	114	(1) employing the necessary personnel to
115	115	survey abandoned wells, well sites and associated production
116	116	.230171.5
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144	144	facilities; and
145	145	(2) preparing plans for administering and
146	146	performing the plugging of abandoned wells that have not been
147	147	plugged or that have been improperly plugged and for the
148	148	restoration and remediation of abandoned well sites and
149	149	associated production facilities that have not been properly
150	150	restored and remediated [and
151	151	(2) supporting energy education throughout the
152	152	state in an amount not to exceed one hundred fifty thousand
153	153	dollars ($150,000) annually ].
154	154	[B.] C. The director of the oil conservation
155	155	division of the energy, minerals and natural resources
156	156	department, as funds become available in the oil and gas
157	157	reclamation fund, shall reclaim and properly plug all abandoned
158	158	wells and shall restore and remediate abandoned well sites and
159	159	associated production facilities in accordance with the
160	160	provisions of the Oil and Gas Act and the rules and regulations
161	161	promulgated pursuant to that act. The division may order wells
162	162	plugged and well sites and associated production facilities
163	163	restored and remediated on federal lands on which there are no
164	164	bonds running to the benefit of the state in the same manner
165	165	and in accordance with the same procedure as with wells drilled
166	166	on state and fee land, including using funds from the oil and
167	167	gas reclamation fund to pay the cost of plugging. When the
168	168	costs of plugging a well or restoring and remediating well
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197	197	sites and associated production facilities are paid from the
198	198	oil and gas reclamation fund, the division is authorized to
199	199	bring a suit against the operator or district court of the
200	200	county in which the well is located for indemnification for all
201	201	costs incurred by the division in plugging the well or
202	202	restoring and remediating the well site and associated
203	203	production facilities. Any funds collected pursuant to a
204	204	judgment in a suit for indemnification brought under the Oil
205	205	and Gas Act shall be deposited in the oil and gas reclamation
206	206	fund.
207	207	[C.] D. The director of the oil conservation
208	208	division of the energy, minerals and natural resources
209	209	department shall make an annual report to the secretary of
210	210	energy, minerals and natural resources, the governor and the
211	211	legislature on the use of the oil and gas reclamation fund.
212	212	[D.] E. Contracts for plugging, reclamation and
213	213	energy education pursuant to this section shall be entered into
214	214	in accordance with the provisions of the Procurement Code. A
215	215	contractor employed by the oil conservation division of the
216	216	energy, minerals and natural resources department to plug a
217	217	well or restore or remediate a well site or associated
218	218	production facility is authorized to sell the equipment and
219	219	material or product that is removed from the well, site or
220	220	facility and to deduct the proceeds of the sales from the costs
221	221	of plugging, restoring or remediating.
222	222	.230171.5
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250	250	[E.] F. As used in this section, "associated
251	251	production facilities" means those facilities used for,
252	252	intended to be used for or that have been used for the
253	253	production, treatment, transportation, storage or disposal of
254	254	oil, gas, brine, product or waste generated during oil and gas
255	255	operations or used in the production of oil and gas if that
256	256	facility is, has been or would have been subject to regulation
257	257	by the oil conservation division of the energy, minerals and
258	258	natural resources department or the oil conservation commission
259	259	pursuant to the Oil and Gas Act or the Water Quality Act."
260	260	SECTION 3. EFFECTIVE DATE.--The effective date of the
261	261	provisions of this act is July 1, 2025.
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263	263	.230171.5