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, is involved in enforcement actions related to spills or releases, or fails to meet financial assurance requirements. Additionally, the division can assess the financial capacity of the transferee to manage liabilities associated with the wells.

In conjunction with these new regulations, the bill also removes outdated references to the "oil conservation division" and the "energy, minerals and natural resources department," streamlining the language to reflect the current structure of the division. The amendments aim to ensure that the transfer of oil and gas wells is conducted responsibly, thereby mitigating risks associated with inactive or abandoned wells and protecting public health and the environment.

Statutes affected:
introduced version: 70-2-12