New Mexico Eligible for Million in Federal Funding to Clean Up Abandoned Oil and Gas Wells

Created: JANUARY 27, 2025

New Mexico stands to receive a substantial $25 million federal grant to address the environmental hazards posed by abandoned oil and gas wells. This funding is part of a larger, nearly $660 million initiative announced by the Biden administration this week, focusing on cleaning up hazardous extraction sites nationwide. New Mexico has until the end of 2023 to submit a formal application for its share.

Senator Ben Ray Luján championed this effort, emphasizing his legislative work to remediate orphaned wells on federal, state, and tribal lands. This initiative aims to create jobs while mitigating the release of methane, a potent greenhouse gas, and reducing the risk of water contamination both above and below ground.

New Mexico eligible for federal funding to clean up abandoned oil and gas wells

In preparation for these federal funds, New Mexico conducted a survey in 2021, identifying over 1,700 orphaned wells requiring an estimated $290 million for proper closure and cleanup. This current allocation builds upon the $4.7 billion in infrastructure spending already committed by Congress in 2021 to address abandoned wells across the nation.

Beyond federal efforts, New Mexico's State Land Office is actively pursuing initiatives to hold the oil and gas industry accountable for plugging inactive wells on state trust land. Furthermore, the state recently implemented a ban on new oil and gas leases within a one-mile radius of schools and other educational institutions. This action underscores the state's commitment to environmental protection, although it has also faced legal challenges regarding its constitutional obligations to prevent oil and gas pollution.

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