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HOUSE BILL 481
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Matthew McQueen
AN ACT
RELATING TO NATURAL RESOURCES; PROVIDING 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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Oil and Gas Act is
enacted to read:
"[NEW MATERIAL] PLUGGING AND ABANDONMENT OF WELLS--
RESPONSIBILITY.--
A. An owner, operator or lessee with a current
interest or control and an owner, operator or lessee with a
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prior interest or control that occurs contemporaneously with
oil or gas exploration, development or production of a well,
facility, pit or installation of immobile surface equipment
shall be responsible for reimbursing the division for all
associated costs incurred by the division for the:
(1) plugging and abandonment of oil and gas
production or salt water disposal wells;
(2) deconstruction, removal and disposal of
associated production, operation, surface and facility
equipment, including flow lines;
(3) remediation of any environmental
contamination reasonably associated with the oil and gas
exploration, development or production; and
(4) restoration and revegetation of impacted
areas.
B. Owners, operators and lessees with an interest
or control in an oil or gas well, facility, pit or installation
may contractually allocate responsibility between otherwise
responsible parties pursuant to a contract, lease or instrument
of transfer; provided that any such agreement shall not bind
the division or require the division to seek recovery from any
particular responsible party or from a responsible party in any
particular order."
SECTION 2. APPLICABILITY.--The provisions of this act
apply to owners, operators and lessees with an interest or
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control in an oil or gas well, facility, pit or installation
beginning on or after July 1, 2025.
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