The Reclamation Fund

New Mexico is at the forefront of minimizing the impact of orphaned or abandoned wells (source). The oil and gas industry and the state work together to remediate sites and plug abandoned wells mainly through the State Reclamation Fund

This Reclamation Fund is comprised of taxes paid by operators on the sale of oil and gas in New Mexico. The Oil Conservation Division uses the Fund to plug wells and reclaim sites that have been abandoned by irresponsible operators. This fund, combined with contributions from current operators and funds from the federal Inflation Reduction Act, pay for the plugging of abandoned wells.

 

What is Reclamation?

After production operations are complete, well plugging, facility decommissioning, and site reclamation are essential. Agencies like the BLM and the OCD make certain depleted wells are properly plugged and ensure the land is responsibly restored.

If the well is on State Trust Land, the New Mexico Stand Land Commission ensures reclamation activity is done properly to protect these public lands. If abandoned or orphaned wells are identified, New Mexico’s Oil Conservation Division uses the Reclamation Fund to remediate the sites.

 

Additional Resources