New Mexico oil reform bill collapses amid industry opposition

New Mexico’s attempt to pass a reform bill to address the state's unplugged oil wells collapsed after industry groups opposed the final proposal they had helped shape.

Mark Olalde reports for ProPublica.

In short:

• New Mexico's oil industry initially supported negotiations to address over 70,000 unplugged wells but opposed the final reform bill, leading to its collapse.
• The proposed bill aimed to increase financial accountability for well plugging and establish safety zones around wells.
• Industry lobbying and internal disagreements among stakeholders weakened the bill, preventing it from passing the House.

Key quote:

“We are continuing to work with policymakers to advance balanced regulations that enhance safety, sustainability and environmental stewardship and help ensure that American energy is produced responsibly from start to finish.”

— Holly Hopkins, American Petroleum Institute

Why this matters:

Unplugged wells pose significant environmental and public health risks, leaking toxic substances. Without reform, taxpayers may bear the financial burden of cleanup, exacerbating the already critical issue of orphan wells nationwide.