The proposed "Well Repurposing Act" allows the Energy, Minerals and Natural Resources Department of New Mexico to authorize the conversion of oil or gas wells into facilities that support energy storage or geothermal energy development. The bill introduces new definitions related to energy storage and geothermal resources, clarifying what constitutes these terms. It also grants the department the authority to establish specific fees and financial assurance requirements for these conversions.

Additionally, the act stipulates that oil or gas wells converted for energy storage and actively operated will not be classified as inactive or abandoned, thus recognizing their beneficial use. However, if a well authorized for energy storage stops operations for twelve months or more, it must be plugged and abandoned according to state law. The provisions of this act are set to take effect on July 1, 2025.