New Mexico is expanding its efforts to address abandoned oil and gas wells, with more than 1,600 wells still awaiting plugging or remediation under existing state orders.
The state Oil Conservation Division has established an Orphan Well Bureau to identify abandoned wells, oversee plugging operations, and remediate sites that may pose environmental risks. The bureau is intended to increase the state’s capacity to address a backlog that has persisted despite recent increases in plugging activity.
The initiative follows the unanimous passage of House Bill 80 during the 2026 legislative session. The law redirects most revenue from the state’s oil and gas conservation tax into the Oil and Gas Reclamation Fund, which supports plugging abandoned wells and reclaiming associated production facilities.
The Oil Conservation Division, part of the Energy, Minerals and Natural Resources Department, plugged 114 wells in fiscal year 2026. Officials expect the new bureau to build on that work, though it has not yet set annual targets.
Sidney Hill, a public information officer with the department, said the bureau is expected to have 13 employees by the end of its first year.
The planned staff will include plugging engineers and supervisors, field inspectors, environmental scientists, environmental operations personnel and specialists in program and grant management.
Reclamation fund will cover the bureau’s staffing and operating costs, Hill said. Officials cannot set specific annual plugging goals until the bureau is more fully staffed.
Abandoned wells can require extensive work to seal them properly and restore surrounding land. Unplugged or improperly sealed wells can allow oil, gas, and other contaminants to migrate into the environment, depending on site conditions.
The new bureau is intended to expand the state’s ability to manage those risks while coordinating the technical and environmental work needed to close abandoned sites.
More than 1,600 wells awaiting action represent a significant workload for regulators, who must assess sites and determine the work needed to plug wells and remediate associated facilities.
The bureau’s progress will depend in part on staffing and the resources available through the reclamation fund as the state works to address its abandoned well inventory.
