New Mexico lawmakers are taking significant steps to address the growing crisis of orphaned oil and gas wells in the state. During a recent Senate Conservation meeting on February 15, 2025, discussions centered around the urgent need for remediation and the management of contaminated sites resulting from these abandoned wells.

The meeting highlighted that New Mexico currently faces approximately 2,391 orphaned wells, which pose environmental risks due to potential contamination. Lawmakers emphasized the importance of ensuring that produced water, often labeled as toxic waste, is only used in oil and gas operations, as its safety for agricultural or human consumption remains uncertain.

A key point raised was the existing conservation tax, which is intended to fund the plugging and remediation of these orphaned wells. Currently set at 0.19% of the taxable value of oil and gas production, this tax could generate around $100 million annually. However, experts noted that while this funding could cover the costs of plugging approximately 800 wells each year, the total number of orphaned wells far exceeds this capacity. Estimates suggest that remediation costs can range significantly, with some sites requiring up to $1 million to address contamination properly.

Senator Cervantes pointed out that many companies responsible for these wells often declare bankruptcy, leaving the state to manage the cleanup. This issue complicates the funding landscape, as the state must navigate the financial responsibilities of these abandoned sites.

The meeting concluded with a call for a more robust approach to funding and managing the orphaned well crisis, as current resources are insufficient to tackle the scale of the problem. Lawmakers are now tasked with finding solutions that not only address the immediate environmental concerns but also ensure the long-term safety and health of New Mexico's communities.