New Mexico official takes aim at oil, gas bond requirements | KOB 4

New Mexico official takes aim at oil, gas bond requirements

New Mexico official takes aim at oil, gas bond requirements

The Associated Press
Created: May 20, 2021 06:37 AM

ALBUQUERQUE, N.M. (AP) — New Mexico’s financial assurance requirements for oil and gas wells, pipelines and related infrastructure fall far short of what would be needed to offset closure and cleanup costs.

That's the finding of an independent study commissioned by the state after concerns were raised last year about taxpayers being left on the hook if companies go bankrupt or abandon their operations without cleaning up.

The study pegged the bonding gap at more than $8 billion.

Land Commissioner Stephanie Garcia Richard called the estimate staggering. She says the state needs to take action to ensure companies are adequately bonded.

She's planning a series of public meetings on the issue.


(Copyright 2021 by The Associated Press. All Rights Reserved.)