FOR IMMEDIATE RELEASE: Wednesday, July 1, 2026
CONTACT: Jessica Pace, Interim Executive Director, 615-294-2049, jess@westernleaders.org
New Mexico modernizes oil and gas bonding program in win for local governments, communities
Stronger financial assurance requirements holds industry accountable for well cleanup costs
Today, the New Mexico Oil and Gas Conservation Commission voted to adopt updates to the state’s oil and gas bonding requirements, or the rules that determine how much money oil and gas companies must set aside to plug and remediate their wells. The program is now among the nation’s strongest, helping to reduce the risk of well abandonment and ensure that companies, not taxpayers, are responsible for cleanup after a well’s productive life ends.
The vote follows months of stakeholder engagement and public hearings, during which time dozens of local and state elected officials spoke up for their taxpaying constituents and communities in support of the updates.
“The local and state elected officials in our network share a commitment to fiscal responsibility, environmental stewardship, and protecting community health,” said Jessica Pace, Interim Executive Director at Western Leaders Network. “Today’s vote to modernize New Mexico’s oil and gas financial assurance rules reflects those values. Raising the bonding amount to $150,000 for wells at high risk of abandonment helps protect taxpayers from financial liability while safeguarding the lands, air and water that support local economies, livelihoods and community well-being.”
In November 2025, as the OCC accepted public comments on the proposed updates, 25 New Mexico elected officials sent a letter urging the Commission to strengthen state bonding requirements to protect their communities’ health and safeguard taxpayer dollars. The letter was signed by state legislators, county commissioners, and city and town council members from 24 local jurisdictions and legislative districts across the state.
“Our communities live with the legacy of thousands of oil and gas wells, many of which sit idle or are already abandoned,” the letter states. “When wells are not properly plugged and restored, they pose real risks to our air, water, and public health. They also leave taxpayers and public funds vulnerable to billions in cleanup costs that should have been covered by the corporations that profited from the land.”
The total cleanup liability for New Mexico is estimated between $700 million and $1.6 billion, according to state data. The average cost to plug a well is $163,000, and some cost far more, but corporations can post bonds for just $250,000 statewide under the previous rules.
Western Leaders Network harnesses the power of local, tribal, and state elected and appointed officials to address the climate crisis, advance conservation initiatives, and protect democracy.