The bill amends Section 70-2-12 of the New Mexico Statutes to enhance the regulatory powers of the Oil Conservation Division. It introduces new provisions that allow the division to regulate the transfer of oil and gas wells, including the establishment of limitations on such transfers. Specifically, the division can impose restrictions if the transferor or transferee is subject to violations of the Oil and Gas Act, enforcement actions related to spills, or if they are out of compliance with natural gas capture or reporting requirements. Additionally, limitations can be placed if the transferee fails to provide adequate financial assurance or lacks sufficient financial capacity to manage liabilities associated with the wells.

The bill also includes a requirement for the division to issue a written finding if it determines that limitations on transfers are necessary to mitigate risks associated with inactive or abandoned oil and gas wells. This legislative change aims to strengthen oversight and ensure that the transfer of oil and gas wells does not pose a risk to the state or the environment. The amendments reflect a comprehensive approach to managing oil and gas resources while addressing potential compliance and financial issues related to well transfers.

Statutes affected:
introduced version: 70-2-12