New Mexico is strengthening efforts to cleanup oil and gas wells that threaten public health and the environment.
After Texas, New Mexico is the second-largest crude oil-producing state in the nation. But in recent years, said state Rep. Debbie Sariñana, D-Albuquerque, not enough money has gone to hire workers for compliance and inspection. As a result, cleanup of orphaned wells – those with original owners that can't be located – dropped from 105 wells in 2024 to 42 last year. To address the problem, she said a bill passed in this year's session increases industry-specific tax allocations to the Oil and Gas Reclamation Fund.
"In New Mexico, we have 66,000 wells, between the Permian [and] San Juan Basins," she said. "We also have a lot of wells by our schools, so all the emissions that are coming from those are toxic."
New Mexico has 34,000 children who attend school within a mile of an oil and gas production site, some adjacent to playgrounds. Whether orphaned, abandoned or active, oil and gas wells are significant sources of pollution, emitting hazardous air pollution, methane, and toxic substances.
The average cost to plug a single well can tally up to more than $100,000. But Sariñana said if no action had been taken, the issue of orphan well pollution would escalate, based on a 2025 state report that shows more wells are rapidly ending their lifespans. She noted that oil and gas revenues have typically gone into the state's general fund budget which is very healthy right now, allowing for a change in funding priorities.
"We're making a lot of money from gas and oil right now, and we don't need the money in the general fund. We're going to put it back in the Reclamation Fund to do its job," she said. "So, this took about eight to 10 years to get passed."
The 2025 legislative report found current orphaned wells will cost the state more than $200 million, with a future liability that likely exceeds $700 million.