Activists Shift Tactics, Push Bonding Overhaul in “Polluter Pays” Effort in New Mexico

This year, the California Independent Petroleum Association successfully defeated several harmful pieces of legislation targeting our industry, including the “Polluter Pays” legislation. But make no mistake: the broader campaign is far from over. Activists are pursuing the same agenda in other states, and New Mexico is their latest battleground.

This week, the New Mexico Oil Conservation Commission opened hearings on a proposed rule that would drastically increase bonding requirements for oil and gas operators. Backed by environmental groups and some state officials, the proposal aims to shift the cost of orphan well cleanup onto the industry, regardless of who is actually responsible.

The rules would require $150,000 in financial assurance for each low-producing or inactive well. Advocates call it “fairness.” In reality, it is a massive burden, especially for smaller operators, and a backdoor attempt to force production declines by making it too costly to stay in business.

This effort in New Mexico is part of a coordinated strategy. The defeat in California will not stop these groups. If anything, it will push them to repackage and reintroduce similar legislation in the next session.

Our members must remain engaged. Stay alert, speak up, and be ready to act. The future of responsible, local energy production depends on it.