SANTA FE, N.M. (AP) — New Mexico's top land manager has approved an emergency rule that would allow oil and gas companies that lease state trust land to temporarily stop producing without penalty for at least thirty days.
State Land Commissioner Stephanie Garcia Richard on Tuesday said longer-term relief will be coming through a rule change process already underway.
The shutting in of wells has been deemed necessary by the State Land Office based on plunging oil prices and storage capacity challenges, including the first-ever negative value of oil seen in the U.S.
Revenue from mineral development on state trust land benefits New Mexico public schools, hospitals and universities.