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Work to clean up abandoned oil and gas wells throughout New Mexico got a boost this week as the federal Department of the Interior announced it established a program within the DOI to plug the wells and return federal lands to their native state.
It was estimated by the State of New Mexico, second in the nation for crude oil production, that it had at least 1,700 wells abandoned throughout its borders, leaking pollutants into the air, water and land as companies leave the wells unused when they are deemed financially unviable.
Operators in New Mexico pay into bonds intended to fund the remediation, but the money is often not enough, and states pick up the difference.
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New Mexico’s Oil Conservation Division said in the past it was typically able to plug about 50 wells a year, but with about $43.7 million in federal funds allocated to New Mexico through the recent Infrastructure Investment and Jobs Act and additional federal grants made available, that number could climb to up to 200.
Nationwide, the bill provided about $4.7 billion to abandoned well clean up in the coming years – $4.3 billion for the work on state and private, $250 million for federal land including national parks and forests and another $150 million for wells on Tribal lands.
This year, the first $33 million for about 277 wells on federal lands throughout the U.S. was allocated by the DOI, along with $560 million appropriated to states and $50 million to Tribal agencies.
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It’s part of the federal government’s broader U.S. Methane Emissions Reduction Action Plan established last year by the administration of President Joe Biden and hoped to help stimulate the economies of energy-based communities amid a transition from fossil fuels.
“Thanks to funding championed by New Mexico Congressional Democrats we’re putting our traditional energy workers to work solving a major climate challenge,” said U.S. Sen. Martin Heinrich (D-NM).
The funding came as U.S. Sen. Ben Ray Lujan’s (D-NM) Revive Economic Growth and Reclaim Orphaned Wells (REGROW) Act was added to infrastructure bill before it was passed in 2021.
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He said the problem was especially important to address in New Mexico, where frontline communities alongside oil and gas fields are left vulnerable to the health impacts of pollution from fossil fuels.
Chief among the pollutants associated with abandoned wells, methane gas has an atmospheric heat-trapping potency 25 times that of carbon dioxide (CO2) in the short term, contributing to climate change as the second most emitted greenhouse gas in the U.S. after CO2.
“Orphaned oil and gas wells have posed a severe health risk to countless Americans for far too long, which is why I was proud to secure historic funding to clean them up through the Infrastructure Investment and Jobs Act,” Lujan said in a statement.
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U.S. Rep. Melanie Stansbury (D-NM) said the work would not only protect some of the state’s most marginalized, rural populations, but also create economy-stimulating jobs taking advantage of a workforce already well-versed in fossil fuels and related infrastructure.
“Plugging orphan wells is a matter of environmental justice that will help secure a healthier future for our communities while creating good-paying jobs for New Mexicans,” she said.
Newly elected U.S. Rep. Gabe Vasquez (D-NM), whose southern 2nd Congressional District covers most of New Mexico’s portion of the Permian Basin in the southeast region of the state – the U.S.’ busiest oilfield – said the DOI must work closely with states to begin fixing the problem and addressing its impacts.
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“Bringing home funding that addresses severe health risks posed by orphaned wells is a priority of mine,” Vasquez said. “I plan to work alongside (Interior) Secretary (Deb) Haaland to ensure this funding addresses the health and environmental impacts in our district. Addressing these hazards will ensure we’re protecting our most vulnerable communities.”
The program will establish a new office at the DOI under the assistant secretary for policy, management and budget, tasked with implementing federally-funded projects to study, identify and remediate abandoned wells.
Haaland, herself of former New Mexico congressmember said in a statement the investment was “historic” and would help address health concerns tied to the industry.
“Through President Biden’s Bipartisan Infrastructure Law, we are making a historic investment to tackle legacy pollution—the largest in American history,” she said in a statement. “As part of this effort, the Department is standing up a new office to support states, Tribes and federal land managers as they close and remediate orphaned oil and gas wells that pose environmental hazards to communities across the country.”
Adrian Hedden can be reached at 575-628-5516, achedden@currentargus.com or @AdrianHedden on Twitter.
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