Public Comment Highlights After Oil Conservation Commission Hearing Conclusion
Context & Background
From October 20 through November 6, the New Mexico Oil Conservation Commission (OCC) held a public hearing on proposed rules to modernize oil and gas bonding and cleanup requirements. These reforms would:
- Update bonding requirements to $150,000 per well for inactive and low-producing marginal wells, more closely aligning with Oil Conservation Division’s actual plugging costs,
- Require operators with portfolios containing more than 15% inactive and/or marginal wells to post single-well bonding for all their wells, reducing risk to public funds,
- Guard against poorly funded or noncompliant operators taking on wells–a common path to well abandonment–with more stringent transfer rules,
- Tighten rules for inactive, non-producing wells to require wells to show they will return to production in the near future and cap inactive wells at 8 years to avoid wells lingering indefinitely without cleanup.
The rulemaking comes as state research showed up to $1.6 billion in well plugging liabilities and a growing number of abandoned wells–nearly 700 already abandoned, with another 4,400 at risk.
The proposed rules to prevent more abandoned wells were proposed by a diverse coalition, represented by the Western Environmental Law Center, of Tribal leaders, financial experts, frontline community members, faith leaders, and environmental organizations across New Mexico. State agencies that oversee oil and gas development–the State Land Office and the Oil Conservation Division–support the proposed changes.
Public Support by the Numbers
- More than 900 written public comments submitted in support of bonding reform. Read more from Sierra Club Rio Grande Chapter.
- There were more verbal public comments in support delivered during the hearing than those in opposition – 88 in support, 61 in opposition.
- Twenty-five elected officials from 24 local jurisdictions and legislative districts statewide signed a letter to the OCC in support. Read more from the Western Leaders Network.
- Overwhelming statewide support confirmed by new polling:
- 89% of New Mexicans support requiring oil and gas corporations to pay to plug wells they drill.
- 91% say industry should be financially responsible for cleanup.
- 90% say it’s essential to protect drinking water and public health.
Permian Basin Highlight
“I have lived in Carlsbad for nearly 30 years of my life. As you may know, 17 years ago a sinkhole was discovered under the intersection of two major highways in south Carlsbad caused by a brine well operation. The operation was shut down, but because there wasn’t sufficient financial assurance in place, we had to wait 14 years for the problem to be fixed. The company went bankrupt two years after the discovery of the sinkhole leaving New Mexico taxpayers on the hook to cover the cost of fixing the problem. Carlsbad had to fight in every legislative session for years to get the funding to fix a problem a private company had caused and taxpayers all across the state had to help pay to fix an issue they did not create. If the proposed rules had been in place back when the brine well sinkhole was first discovered, we might not have spent more than a decade wondering if the highway might collapse beneath us.
“This should be a lesson we heed, not ignore. The sinkhole shows us the high price that can be paid by the state and taxpayers when private companies do not clean up after themselves.”
— Haley Jones, organizer with Citizens Caring for the Future based in the Permian Basin
Public Comment Highlights
Below are a few compelling excerpts from New Mexicans who spoke during the hearing.
“These oil companies need to be responsible for cleaning the mess they create. Millions of dollars need to be put up front as collateral to make sure they clean up the contamination they created.”
— Ted M., Carlsbad
“As a veteran and a New Mexican, I believe in responsibility. Oil and gas companies need to show up and do the right thing–like I was taught to do.”
— Raymond B., Farmington
“I want my grandchildren to grow up in a place that values health over profit.”
— Delores L., Las Cruces
“We have to protect our land, our air, and most importantly, our water for future generations. This is a sacred responsibility.”
— Daniel M., Albuquerque
“These updates protect taxpayers, strengthen accountability, and support good-paying jobs in well plugging and land restoration. These are jobs that can sustain families and communities long after the drilling boom fades.”
— NM State Representative Patricia Roybal Caballero, HD 13
“You’ve heard a lot about the potential impacts on “small” operators, but really, when wells like these are left to decline without proper oversight or bonding, it’s my community, my neighbors and my family that pays the price. Oil wells leak toxic chemicals like benzene and hydrogen sulfide into our air and water, and pose a threat to everyone living in close proximity – and most of us who live on tribal lands do live in close proximity. This rule is not about punishing small operators. It’s about fairness and accountability and protecting human lives and communities.”
— Kendra Pinto, Four Corners Indigenous community field advocate and a certified optical gas imaging thermographer with Earthworks
“Low bond amounts make it cheaper for companies to delay cleanup, transfer wells to smaller operators, or walk away entirely. And when they do, it’s not the oil and gas companies footing the bill–it’s the taxpayers who pay for cleanup.”
— Meredith McGehee, chair of the Taxpayers for Common Sense board of directors
“Our communities understand that it is fair and just for the industry that is causing pollution to be responsible for addressing their own impacts and remediating the harms done to our air, land, water, and communities – especially those living on the frontlines. As people of faith and conscience we understand that air, land, and water are more than resources – they are more than dollar sign values. They are sacred elements that sustain all our lives and without their health and integrity, there is no future.”
— Rev. Clara Sims, New Mexico Interfaith Power and Light
What’s at Stake
Without reform, New Mexico’s outdated bonding system allows corporations to post bonds for a fraction of the real cleanup cost, which averages $163,000 per well for the state to plug. Meanwhile, oil and gas corporations continue to extract profit from public resources while leaving behind risks to:
-
- Drinking water
- Air quality
- Land used for farming, ranching, and recreation
- Future generations
- Public funds
Bonding is about prevention. It’s how we make sure wells don’t get abandoned in the first place–because once they do, the cleanup cost skyrockets, and the risk to our health and water grows.
Oil and gas lobbyists want us to believe the Reclamation Fund can replace corporate responsibility. The Reclamation Fund is not a silver bullet to solve the abandoned oil and gas well crisis. It’s only part of the solution: we need a robust Reclamation Fund and right-sized bonding. Right-sized bonding ensures the state has sufficient capital – funded by oil and gas corporations – if a corporation walks away from its plugging responsibilities. The Reclamation Fund is a backup if the state doesn’t have enough funding for plugging and cleanup. We need both.
Next Steps
We encourage journalists to highlight the powerful voices of New Mexicans who are demanding reform and accountability. Find contact information and quotes from parties and coalition partners in our Oct. 16 press release.
Parties will file post-hearing briefs the week of January 5 and the Oil Conservation Commission will deliberate during the week of January 12.
English 
Español de México