SANTA FE, N.M. – The State Land Office’s efforts to hold oil and gas operators accountable have resulted in the plugging of 700 abandoned oil and gas wells on New Mexico state lands as of this moment, Commissioner of Public Lands Stephanie Garcia Richard announced today. Meanwhile, a new report released today by the New Mexico Legislative Finance Committee (LFC) highlights the serious fiscal and environmental risks of end-of-life oil and gas wells and puts forward various recommendations related to strengthening oversight by the Oil Conservation Division of the Energy, Minerals and Natural Resources Department (OCD).
While the OCD regulates oil and gas operators and is charged with ensuring that abandoned and inactive wells are properly plugged, the State Land Office has separately pressed oil and gas companies to plug wells on the state lands it manages by vigorously enforcing the terms of oil and gas leases – which require companies to plug wells when they aren’t producing and clean up sites that have spills.
Through these efforts – which are part of the Accountability & Enforcement program Commissioner Garcia Richard launched in 2020 – the agency has obtained the plugging of 700 wells on state trust lands, many of which have been idle for decades.
The LFC report notes that typical cleanup of an oil or gas site in New Mexico costs around $163,000, meaning the State Land Office has saved taxpayers over $114 million in cleanup costs by requiring responsible companies to pay for the messes they make on state lands.
“I launched the Accountability & Enforcement program to make sure taxpayers aren’t on the hook for expensive cleanup costs. Through this program, we work as much as we can with companies to get them to do the right thing,” said Commissioner Garcia Richard. “But when companies are not willing to play ball, that’s when we take legal action, and I have sued dozens of companies to ensure compliance. I’m proud that we’ve been leading efforts to get legacy wells plugged in the state and that we’ve begun to change the culture of oil and gas development on state lands. I think most companies are starting to take us seriously when we say they need to honor the terms of their leases and clean up after themselves.”
Commissioner Garcia Richard launched the Accountability & Enforcement program at the State Land Office in 2020 to hold companies that use state lands accountable and protect taxpayers from the burden of environmental cleanup costs. The program has filed around 40 enforcement lawsuits to date to bring oil and gas companies to account for unplugged wells and other issues on state lands.
Before Commissioner Garcia Richard came into office, there was no comprehensive approach to holding oil and gas companies accountable for unplugged wells and other messes created on state lands. Now, under the Accountability and Enforcement program, the State Land Office regularly reviews oil and gas operations that may pose a serious environmental threat to state lands. The specific measures developed by the Accountability and Enforcement Program, led by the State Land Office Legal Division and Environmental Compliance Office in collaboration with other key divisions, include:
- Plugging chronically inactive oil, gas, and disposal wells and reclaiming their sites
- Cleaning up spills of oil and wastewater, including remediation of legacy spills that have gone unaddressed for decades
- Removing abandoned equipment and infrastructure such as tanks and pipelines, and returning the lease lands to their original condition
The State Land Office generally contacts oil and gas producers first to give them an opportunity to plug inactive wells, remediate contamination, and take other measures that may be required on a voluntary basis. Lessees and operators that fail to meaningfully respond are subject to further enforcement, including litigation.
Commissioner of Public Lands Stephanie Garcia Richard has overseen the New Mexico State Land Office since 2019. In that time the agency has earned more than $11 billion for New Mexico public schools, hospitals, and universities. Over 13 million acres of state trust land are leased for a variety of uses, including ranching and farming, renewable energy, business development, mineral development, and outdoor recreation. The State Land Office has a dual mandate to use state trust land to financially support vital public institutions, while simultaneously working to protect the land for future generations.