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 for energy storage or geothermal energy development. The act includes definitions for key terms such as "energy storage" and "geothermal energy development," and establishes that these conversions can be subject to specific fees and financial assurance requirements set by the department.

Additionally, the act stipulates that oil or gas wells converted for energy storage and actively operated will not be classified as inactive or abandoned, but rather as being used for beneficial purposes. However, if a well ceases operations for energy storage for twelve months or more, it must be plugged and abandoned in accordance with state law. The provisions of this act are set to take effect on July 1, 2025.