The bill establishes new natural gas capture requirements for operators of oil or gas wells and natural gas gathering systems in New Mexico, effective January 1, 2027. Operators are mandated to capture at least ninety-eight percent of the natural gas produced or gathered by their facilities within a calendar year. However, certain exceptions apply where natural gas will not count towards this capture percentage, including gas released during emergencies, gas beneficially used by the operator, gas unsuitable for transportation or processing due to high concentrations of certain gases, gas vented during normal operations of pneumatic controllers and pumps, and gas vented or flared from exploratory wells.

Additionally, the bill empowers the division to create rules necessary for the implementation of these requirements. The term "operator" is defined within the bill as any person authorized to construct, manage, or operate an oil or gas well or associated facilities, as well as a natural gas gathering system. This legislation aims to enhance the efficiency of natural gas capture and reduce waste in the oil and gas industry.