New Mexico Approves Significant Oil and Gas Well Cleanup and Financial Assurance Reforms

On July 1, 2026, New Mexico’s Oil Conservation Commission (OCC) approved a package of rule amendments to address inactive, low-producing, and orphaned wells, strengthen operator financial assurance requirements, and reduce the risk that well-plugging and reclamation costs are shifted to the State. The rules reflect a multi-year effort by environmental groups and the OCC, the State’s principal rulemaking body for oil and gas activities, and face opposition from industry participants. The rules... By: Beveridge & Diamond PC