THURS: Nearly a quarter of the Gila is protected as ‘roadless.’ Those protections could be nixed, + More
By KUNM News
June 26, 2025 at 6:12 AM MDT
By the #s: Nearly a quarter of the Gila is protected as ‘roadless.’ Those protections could be nixed – Patrick Lohmann, Source New Mexico
United States Agriculture Secretary Brooke Rollins’ announcement June 23 in Santa Fe that her agency is seeking to repeal the “Roadless Rule” has drawn sharp criticism from environmental groups in New Mexico and across the country.
Nixing the rule means 58 million acres of land across the country could lose protections from road construction and logging the areas have enjoyed since 2001. Environmental groups, including New Mexico Wild, have said stripping the protections could spell the end of some of the last wild places in America.
“This will cause immense damage to public lands, drinking water, and wildlife, and also threatens to increase wildfires,” a Climate Forests Campaign, a coalition of environmental groups, said in a joint statement Tuesday.
A news release from New Mexico Wild notes that the Forest Service received 1.6 million comments in favor of the “Roadless Rule” when the agency was considering it more than 20 years ago, “more comments than any other rule in the nation’s history.”
About 1.6 million acres, or about 2,500 square miles, in national forests in New Mexico are currently protected.
A Source New Mexico review of Forest Service data shows that the Gila National Forest, one of five national forests in the state, could lose the most protected land to roads and other development.
More than 730,000 acres of the Gila’s 3.3 million acres of land is currently protected, though about 45,000 acres of it does allow roads to be built or rebuilt under certain circumstances, according to a Source New Mexico review. The Gila National Wilderness recently celebrated its 100th anniversary.
Rollins, in her speech Monday at the Western Governors’ Association meeting, touted the repeal as a way to protect forests against wildfires and also to put more “logs on trucks” as the Trump administration seeks to rekindle a nationwide logging industry in federal forests.
“The heavy hand of Washington will no longer inhibit the management of our nation’s forests,” she said.
Environmental groups have pushed back against Rollins’ claim that the repeal could reduce the risk of wildfire. New Mexico Wild’s statement Tuesday said “human-caused fire ignitions are far more likely in roaded landscapes.”
Since Monday, the USDA website about the “Roadless Rule” has now been updated with next steps about what repeal will look like, including an environmental analysis; consultation with tribes and affected states; and compliance with the Endangered Species Act.
“More information will be released as the rescission process gets underway,” the website says.
See the maps below of each of New Mexico’s national forest, excluding the sliver of Coronado National Forest located in the state’s southwest corner.
The Forest Service map of “roadless inventoried areas” includes the following:
A Los Lunas man has been accused of setting a fire in the bosque that went on to destroy nearly a dozen homes in a neighborhood along the river.
Jacob LaHair, 31, is charged with one count each of negligent arson and criminal damage to property over $1,000, fourth-degree felonies in the Cotton 1 Fire.
The Desert Willow Complex Fire, made up of the Cotton 1 and Cotton 2 fires, sparked on opposite sides of the Rio Grande on Saturday and Sunday.
The Valencia County Sheriff’s Office said LaHair turned himself in to Los Lunas police on Wednesday and was booked into the Valencia County Detention Center.
LaHair’s family declined to comment Wednesday.
Lt. Joseph Rowland, a spokesperson for the sheriff’s office, did not specify the evidence against LaHair.
“Investigators conducted interviews, analyzed surveillance footage, and completed on-site field evaluations to determine the origin and cause of both fires,” he said in a news release Wednesday evening. “Based on gathered evidence, investigators identified (LaHair) as a suspect.”
An arrest warrant was issued for LaHair on Wednesday.
In all, the blaze destroyed 10 homes and left four more with “minor to major” damage along Las Rosas Road, which butts up against the west side of the Rio Grande, south of the Main Street bridge. The fires also burned over 260 acres and led to evacuations for 1,300 people over two days.
At least 12 firefighters were assessed for heat and smoke injuries, with at least two being hospitalized in Albuquerque.
Albuquerque ramps up fireworks enforcement and safety ahead of July 4th - Jesse Jones, nm.news
Burqueños can expect ramped-up patrols and enforcement over the Fourth of July holiday to curb illegal fireworks and prevent fires in high-risk areas like the Bosque and foothills.
With recent arson activity and a rise in illegal fireworks, Albuquerque Fire Rescue and the Albuquerque Police Department are stepping up efforts to keep neighborhoods safe from fire danger. From July 3 to 5, patrols will target open spaces where fireworks are banned and residents are urged to report violations. City officials say only ground-based “CAUTION”-labeled fireworks sold locally are legal, and anyone caught using banned devices could face fines or citations.
“It’s really important for everyone to understand that all fireworks within the Albuquerque area that you see in the tents are regulated by our fire inspectors, and they’re permitted for use,” Albuquerque Fire Rescue Chief Emily Jaramillo said. “However, fireworks of all kinds are prohibited around the Bosque or Open Space areas and the City of Albuquerque ordinance prohibits the sale of aerial fireworks and ground audible devices within the city limits.”
Between June 17 and 22, four brush fires broke out within Albuquerque city limits, with additional major fires reported in Valencia County. In Los Lunas, the Cotton One and Cotton Two fires destroyed nearly a dozen homes and forced more than 1,300 residents to evacuate.
According to the Valencia County News Bulletin, Thirteen firefighters were injured while battling the fires —12 suffered heat-related issues and one was hospitalized for smoke inhalation.
Officials believe all the fires were intentionally set.
“We are seeing a troubling sequence of human-caused fires in the Bosque,” Keller said. “It’s extremely flammable, and these are things that can be very difficult to control for us if they get out of hand. That’s why we try and control them right away — and why we try and prevent them.”
What to expect
In the wake of the fires and extreme drought conditions, AFR’s Fireworks Education Units will patrol the Bosque, foothills and other open space areas July 3–5 from 8 p.m. to midnight.
Units will patrol for illegal fireworks and other suspicious activity, with four APD teams assisting the Fire Marshal’s Office and ready to respond alongside enforcement crews as needed.
Jaramillo said the city bans the sale and use of aerial fireworks and ground audible devices. While AFR regulates what’s sold in Albuquerque, Jaramillo noted they can’t control what people buy elsewhere in the state.
“We can’t control what people buy elsewhere,” she said, “but we can respond when they use them here. Report what you see so we can take action.”
AFD and APD will watch for illegal fireworks banned within city limits, including aerial devices and loud ground fireworks.
According to city guidelines, fireworks labeled “WARNING” are illegal, while those marked “CAUTION” are legal.
Illegal fireworks include:
Aerial Devices
· Aerial Spinners
· Helicopters
· Mines
· Missile-type Rockets
· Roman Candles
· Shells
· Stick Type Rockets
Ground Audible Devices
· Chasers (bottle rockets)
· Firecrackers
According to the city website, once ignited, aerial and ground audible fireworks fly unpredictably and pose serious fire risks to buildings and vegetation. They can cause injuries to users and bystanders and disrupt public peace.
As a reminder, all fireworks are prohibited in all open spaces.
On the other hand, legal fireworks, like those found in retail stores and fireworks tents or stands throughout the city, can be used, just not in open spaces.
The following fireworks are considered safe and legal to use within city limits:
· Ground and handheld sparkling devices
· Cone Fountains
· Crackling Devices
· Cylindrical Fountains
· Flitter Sparklers
· Ground Spinners
· Illuminating Torches
· Wheels
If residents break the rules, they can expect real consequences.
Anyone caught using illegal fireworks will get a Cease and Desist Order sent to the property’s owner or resident. The notice means someone from the fire or police department saw the fireworks being used illegally.
“We do start issuing [Cease and Desist Orders] as soon as we start having those come in,” Jaramillo said.
A second violation at the same address can lead to legal action.
Breaking the city’s fireworks rules is a misdemeanor and means a mandatory trip to court. If convicted, you could face up to a $500 fine, 90 days in jail, or both.
Improper use of legal fireworks — or setting off banned ones — can also lead to the user or supervising adult being held financially responsible for any damage.
How to report illegal fireworks
When reporting illegal fireworks, include the exact address where they’re being set off, not your address.
Use:
· Online report form
· ABQ311 app
· Call 311
Outside city limits?
· Bernalillo County: (505) 798-7000
· Rio Rancho: (505) 891-7226
“Please make sure you’re reporting,” Jaramillo said. “Whether it be suspicious activity in the Bosque or any illegal firework activity, so that we can help address that.”
Firework safety
According to the city, fireworks pose serious risks every year.
In 2023, they caused eight deaths and an estimated 9,700 injuries nationwide. They can cause blindness, third-degree burns and permanent scars.
During the July 3 and 4 weekend last year, AFR responded to 140 outdoor fires and four structure fires. Sparklers alone accounted for more than half of the injuries among children under 5.
To enjoy fireworks safely this Fourth of July, the city recommends Burqueños follow these simple tips:
· Avoid using fireworks on Red Flag Warning days, which signal high fire danger. Check conditions at weather.gov.
· Buy local. Fireworks sold by licensed vendors in Albuquerque are legal for use within city limits.
· Use fireworks only on paved or barren surfaces, away from homes, dry vegetation and anything flammable.
· Never use fireworks in the Bosque, open space areas or city parks.
· Keep water nearby, like a charged hose or two 5-gallon buckets, in case of fire.
· Always have an adult present. Don’t let children handle or light fireworks.
· Follow all instructions on fireworks packaging.
· Soak used fireworks in water until they’re cool before tossing them in the trash.
· In an emergency, call 911 and leave the area immediately.
The city’s Animal Welfare department is also encouraging pet owners to take simple steps to keep animals safe and calm this Independence Day.
“Knowing how to prepare your pet and keep them calm during the fireworks can make a big difference in ensuring their comfort during Fourth of July festivities,” Keller said in a press release. “Celebrate responsibly so it’s a fun holiday for everyone.”
Animal Welfare recommends the following tips:
· Leave your pets at home and indoors. The noise of the fireworks for most pets could cause anxiety, fear and a desire to flee.
· Keep pets in a lit, cool, calm closed room with familiar sounds and chew toys that will help to distract and make the animal feel safe.
· Identification tags and microchips are a must in case the pet escapes. This will help reunite pets and owners quickly and effectively. Please make sure information on tags and microchips is updated. FREE microchipping and custom pet tags are available until Thursday, July 3, at the Eastside and Westside shelters. No appointment needed.
· If a pet gets especially stressed, ask your vet for help to soothe them.
“Taking these precautions can help ensure that both you and your pets have a safe and stress-free Fourth of July,” said Animal Welfare Director Carolyn Ortega. “Let’s have a happy holiday for both people and pets.”
New report: New Mexico on the hook for millions, if not billions, to plug oil and gas wells - Danielle Prokop, Source New Mexico
New Mexico could face ballooning costs to address oil and gas wells abandoned by operators – sometimes called “orphan wells” — and the problem is poised to get bigger, a new report said, as more wells reach the end of their lifespans
Current cleanup of 700 wells will cost $208 million and take close to a decade to complete, analysts from the Legislative Finance Committee estimated in a 47-page report released Tuesday. Future plugging of an identified 1,400 wells could cost New Mexico between $700 million dollars to as high as $1.6 billion.
“On top of that, there are more than 3,000 wells on state or private land producing extremely small quantities of oil and gas whose expected cleanup costs far exceed their predicted future revenues, increasing their risk of being orphaned,” the report says.
Unplugged oil and gas wells can pollute groundwater; pose threats to human health from wastewater or gas exposure; and can prevent further extraction from nearby wells. Private owners plug most wells, but since fiscal year 2019 the state has spent more than $50 million to plug about 1,000 orphaned wells.
Analysts recommended four policy proposals for lawmakers to incentivize oil and gas companies to address unplugged wells before they become a state problem.
They include: clarifying the definitions of abandoned and orphaned wells in the law; amending the state limits on bonds for drilling oil and gas wells to reflect cleanup costs; allowing for operators to fund cleanup through trusts; and providing state regulators the power to review or disallow the transfer of wells if the buyer can’t plug or clean them up.
Several other states adopted laws requiring operators to pay a fixed rate into trust funds for certain wells, according to Stephanie Joyce, a program evaluator for the nonpartisan Legislative Finance Committee.
“Think of it as something like a retirement account for a well, where companies put money into a fund over a well’s life, so the money is there when it is needed,” Joyce told lawmakers at a committee meeting in Taos.
Analysts also recommended the Oil Conservation Division adopt new rules to address wells at the end of their lifespan; change its bidding procedures; and adopt controls to ensure that the state is not overpaying contractors for plugging.
The report found the state’s costs for plugging wells have dramatically risen in recent years in part due to plugging deeper, more complex wells, and some inflation, but also due to procurement practices at the Oil Conservation Division.
New Mexico Energy, Minerals, and Natural Resources Deputy Secretary Ben Shelton called the report “fair and comprehensive,” noting that the Oil Conservation Division was not originally set up to deal with orphan wells.
“We’re a regulatory agency set up to permit the operation of the oil and gas industry in New Mexico, this is something that has become a bit of an elephant that the division is dealing with,” Shelton said.
In addition, state laws obligating oil and gas companies to pay are insufficient to meet the costs of cleanup, analysts said.
State law limits oil and gas bonds plugging wells to $250,000 for all of a company’s active wells in the state — even as the average cost to plug one well last year was $163,000. More than three dozen oil and gas operators would be required to pay less than $1,000 per well, according to the report.
Sen. George Muñoz (D-Gallup) asked Shelton why the the Oil Conservation Division hasn’t pursued more funds from operators to reclaim public money spent on cleanup.
“The juice is not worth the squeeze,” Shelton responded. “I’m not going to send one of my three attorneys doing 100% of enforcement for the state on a two-month goose chase for a $50,000 bond — it’s just not worth the state’s taxpayer dollars.”
Shelton said he was hiring an additional attorney to help pivot to seeking assurance, but noted that it still is insufficient to pay.
Muñoz said the state was shirking its responsibilities to “go after bad actors,” and asked if the division was denying permits to operators with outstanding wells.
Shelton said state law doesn’t give the agency that power.
“The view right now is that we don’t have that sort of bad-actor review on that sort of personal compliance,” he told lawmakers. “If you start a brand-new company that has a clean bill of health and a clean record, then we don’t have the ability to come in and say ‘one of your officers has outstanding liability in another company.’”
United States Agriculture Secretary Brooke Rollins’ announcement June 23 in Santa Fe that her agency is seeking to repeal the “Roadless Rule” has drawn sharp criticism from environmental groups in New Mexico and across the country.
Nixing the rule means 58 million acres of land across the country could lose protections from road construction and logging the areas have enjoyed since 2001. Environmental groups, including New Mexico Wild, have said stripping the protections could spell the end of some of the last wild places in America.
“This will cause immense damage to public lands, drinking water, and wildlife, and also threatens to increase wildfires,” a Climate Forests Campaign, a coalition of environmental groups, said in a joint statement Tuesday.
A news release from New Mexico Wild notes that the Forest Service received 1.6 million comments in favor of the “Roadless Rule” when the agency was considering it more than 20 years ago, “more comments than any other rule in the nation’s history.”
About 1.6 million acres, or about 2,500 square miles, in national forests in New Mexico are currently protected.
A Source New Mexico review of Forest Service data shows that the Gila National Forest, one of five national forests in the state, could lose the most protected land to roads and other development.
More than 730,000 acres of the Gila’s 3.3 million acres of land is currently protected, though about 45,000 acres of it does allow roads to be built or rebuilt under certain circumstances, according to a Source New Mexico review. The Gila National Wilderness recently celebrated its 100th anniversary.
Rollins, in her speech Monday at the Western Governors’ Association meeting, touted the repeal as a way to protect forests against wildfires and also to put more “logs on trucks” as the Trump administration seeks to rekindle a nationwide logging industry in federal forests.
“The heavy hand of Washington will no longer inhibit the management of our nation’s forests,” she said.
Environmental groups have pushed back against Rollins’ claim that the repeal could reduce the risk of wildfire. New Mexico Wild’s statement Tuesday said “human-caused fire ignitions are far more likely in roaded landscapes.”
Since Monday, the USDA website about the “Roadless Rule” has now been updated with next steps about what repeal will look like, including an environmental analysis; consultation with tribes and affected states; and compliance with the Endangered Species Act.
“More information will be released as the rescission process gets underway,” the website says.
See the maps below of each of New Mexico’s national forest, excluding the sliver of Coronado National Forest located in the state’s southwest corner.
The Forest Service map of “roadless inventoried areas” includes the following:
- Areas where road construction is prohibited;
- areas where it is prohibited and also where the Forest Service has recommended it be designated a “wilderness”; and
- areas where road construction is allowed in certain circumstances.
A Los Lunas man has been accused of setting a fire in the bosque that went on to destroy nearly a dozen homes in a neighborhood along the river.
Jacob LaHair, 31, is charged with one count each of negligent arson and criminal damage to property over $1,000, fourth-degree felonies in the Cotton 1 Fire.
The Desert Willow Complex Fire, made up of the Cotton 1 and Cotton 2 fires, sparked on opposite sides of the Rio Grande on Saturday and Sunday.
The Valencia County Sheriff’s Office said LaHair turned himself in to Los Lunas police on Wednesday and was booked into the Valencia County Detention Center.
LaHair’s family declined to comment Wednesday.
Lt. Joseph Rowland, a spokesperson for the sheriff’s office, did not specify the evidence against LaHair.
“Investigators conducted interviews, analyzed surveillance footage, and completed on-site field evaluations to determine the origin and cause of both fires,” he said in a news release Wednesday evening. “Based on gathered evidence, investigators identified (LaHair) as a suspect.”
An arrest warrant was issued for LaHair on Wednesday.
In all, the blaze destroyed 10 homes and left four more with “minor to major” damage along Las Rosas Road, which butts up against the west side of the Rio Grande, south of the Main Street bridge. The fires also burned over 260 acres and led to evacuations for 1,300 people over two days.
At least 12 firefighters were assessed for heat and smoke injuries, with at least two being hospitalized in Albuquerque.
Albuquerque ramps up fireworks enforcement and safety ahead of July 4th - Jesse Jones, nm.news
Burqueños can expect ramped-up patrols and enforcement over the Fourth of July holiday to curb illegal fireworks and prevent fires in high-risk areas like the Bosque and foothills.
With recent arson activity and a rise in illegal fireworks, Albuquerque Fire Rescue and the Albuquerque Police Department are stepping up efforts to keep neighborhoods safe from fire danger. From July 3 to 5, patrols will target open spaces where fireworks are banned and residents are urged to report violations. City officials say only ground-based “CAUTION”-labeled fireworks sold locally are legal, and anyone caught using banned devices could face fines or citations.
“It’s really important for everyone to understand that all fireworks within the Albuquerque area that you see in the tents are regulated by our fire inspectors, and they’re permitted for use,” Albuquerque Fire Rescue Chief Emily Jaramillo said. “However, fireworks of all kinds are prohibited around the Bosque or Open Space areas and the City of Albuquerque ordinance prohibits the sale of aerial fireworks and ground audible devices within the city limits.”
Between June 17 and 22, four brush fires broke out within Albuquerque city limits, with additional major fires reported in Valencia County. In Los Lunas, the Cotton One and Cotton Two fires destroyed nearly a dozen homes and forced more than 1,300 residents to evacuate.
According to the Valencia County News Bulletin, Thirteen firefighters were injured while battling the fires —12 suffered heat-related issues and one was hospitalized for smoke inhalation.
Officials believe all the fires were intentionally set.
“We are seeing a troubling sequence of human-caused fires in the Bosque,” Keller said. “It’s extremely flammable, and these are things that can be very difficult to control for us if they get out of hand. That’s why we try and control them right away — and why we try and prevent them.”
What to expect
In the wake of the fires and extreme drought conditions, AFR’s Fireworks Education Units will patrol the Bosque, foothills and other open space areas July 3–5 from 8 p.m. to midnight.
Units will patrol for illegal fireworks and other suspicious activity, with four APD teams assisting the Fire Marshal’s Office and ready to respond alongside enforcement crews as needed.
Jaramillo said the city bans the sale and use of aerial fireworks and ground audible devices. While AFR regulates what’s sold in Albuquerque, Jaramillo noted they can’t control what people buy elsewhere in the state.
“We can’t control what people buy elsewhere,” she said, “but we can respond when they use them here. Report what you see so we can take action.”
AFD and APD will watch for illegal fireworks banned within city limits, including aerial devices and loud ground fireworks.
According to city guidelines, fireworks labeled “WARNING” are illegal, while those marked “CAUTION” are legal.
Illegal fireworks include:
Aerial Devices
· Aerial Spinners
· Helicopters
· Mines
· Missile-type Rockets
· Roman Candles
· Shells
· Stick Type Rockets
Ground Audible Devices
· Chasers (bottle rockets)
· Firecrackers
According to the city website, once ignited, aerial and ground audible fireworks fly unpredictably and pose serious fire risks to buildings and vegetation. They can cause injuries to users and bystanders and disrupt public peace.
As a reminder, all fireworks are prohibited in all open spaces.
On the other hand, legal fireworks, like those found in retail stores and fireworks tents or stands throughout the city, can be used, just not in open spaces.
The following fireworks are considered safe and legal to use within city limits:
· Ground and handheld sparkling devices
· Cone Fountains
· Crackling Devices
· Cylindrical Fountains
· Flitter Sparklers
· Ground Spinners
· Illuminating Torches
· Wheels
If residents break the rules, they can expect real consequences.
Anyone caught using illegal fireworks will get a Cease and Desist Order sent to the property’s owner or resident. The notice means someone from the fire or police department saw the fireworks being used illegally.
“We do start issuing [Cease and Desist Orders] as soon as we start having those come in,” Jaramillo said.
A second violation at the same address can lead to legal action.
Breaking the city’s fireworks rules is a misdemeanor and means a mandatory trip to court. If convicted, you could face up to a $500 fine, 90 days in jail, or both.
Improper use of legal fireworks — or setting off banned ones — can also lead to the user or supervising adult being held financially responsible for any damage.
How to report illegal fireworks
When reporting illegal fireworks, include the exact address where they’re being set off, not your address.
Use:
· Online report form
· ABQ311 app
· Call 311
Outside city limits?
· Bernalillo County: (505) 798-7000
· Rio Rancho: (505) 891-7226
“Please make sure you’re reporting,” Jaramillo said. “Whether it be suspicious activity in the Bosque or any illegal firework activity, so that we can help address that.”
Firework safety
According to the city, fireworks pose serious risks every year.
In 2023, they caused eight deaths and an estimated 9,700 injuries nationwide. They can cause blindness, third-degree burns and permanent scars.
During the July 3 and 4 weekend last year, AFR responded to 140 outdoor fires and four structure fires. Sparklers alone accounted for more than half of the injuries among children under 5.
To enjoy fireworks safely this Fourth of July, the city recommends Burqueños follow these simple tips:
· Avoid using fireworks on Red Flag Warning days, which signal high fire danger. Check conditions at weather.gov.
· Buy local. Fireworks sold by licensed vendors in Albuquerque are legal for use within city limits.
· Use fireworks only on paved or barren surfaces, away from homes, dry vegetation and anything flammable.
· Never use fireworks in the Bosque, open space areas or city parks.
· Keep water nearby, like a charged hose or two 5-gallon buckets, in case of fire.
· Always have an adult present. Don’t let children handle or light fireworks.
· Follow all instructions on fireworks packaging.
· Soak used fireworks in water until they’re cool before tossing them in the trash.
· In an emergency, call 911 and leave the area immediately.
The city’s Animal Welfare department is also encouraging pet owners to take simple steps to keep animals safe and calm this Independence Day.
“Knowing how to prepare your pet and keep them calm during the fireworks can make a big difference in ensuring their comfort during Fourth of July festivities,” Keller said in a press release. “Celebrate responsibly so it’s a fun holiday for everyone.”
Animal Welfare recommends the following tips:
· Leave your pets at home and indoors. The noise of the fireworks for most pets could cause anxiety, fear and a desire to flee.
· Keep pets in a lit, cool, calm closed room with familiar sounds and chew toys that will help to distract and make the animal feel safe.
· Identification tags and microchips are a must in case the pet escapes. This will help reunite pets and owners quickly and effectively. Please make sure information on tags and microchips is updated. FREE microchipping and custom pet tags are available until Thursday, July 3, at the Eastside and Westside shelters. No appointment needed.
· If a pet gets especially stressed, ask your vet for help to soothe them.
“Taking these precautions can help ensure that both you and your pets have a safe and stress-free Fourth of July,” said Animal Welfare Director Carolyn Ortega. “Let’s have a happy holiday for both people and pets.”
New report: New Mexico on the hook for millions, if not billions, to plug oil and gas wells - Danielle Prokop, Source New Mexico
New Mexico could face ballooning costs to address oil and gas wells abandoned by operators – sometimes called “orphan wells” — and the problem is poised to get bigger, a new report said, as more wells reach the end of their lifespans
Current cleanup of 700 wells will cost $208 million and take close to a decade to complete, analysts from the Legislative Finance Committee estimated in a 47-page report released Tuesday. Future plugging of an identified 1,400 wells could cost New Mexico between $700 million dollars to as high as $1.6 billion.
“On top of that, there are more than 3,000 wells on state or private land producing extremely small quantities of oil and gas whose expected cleanup costs far exceed their predicted future revenues, increasing their risk of being orphaned,” the report says.
Unplugged oil and gas wells can pollute groundwater; pose threats to human health from wastewater or gas exposure; and can prevent further extraction from nearby wells. Private owners plug most wells, but since fiscal year 2019 the state has spent more than $50 million to plug about 1,000 orphaned wells.
Analysts recommended four policy proposals for lawmakers to incentivize oil and gas companies to address unplugged wells before they become a state problem.
They include: clarifying the definitions of abandoned and orphaned wells in the law; amending the state limits on bonds for drilling oil and gas wells to reflect cleanup costs; allowing for operators to fund cleanup through trusts; and providing state regulators the power to review or disallow the transfer of wells if the buyer can’t plug or clean them up.
Several other states adopted laws requiring operators to pay a fixed rate into trust funds for certain wells, according to Stephanie Joyce, a program evaluator for the nonpartisan Legislative Finance Committee.
“Think of it as something like a retirement account for a well, where companies put money into a fund over a well’s life, so the money is there when it is needed,” Joyce told lawmakers at a committee meeting in Taos.
Analysts also recommended the Oil Conservation Division adopt new rules to address wells at the end of their lifespan; change its bidding procedures; and adopt controls to ensure that the state is not overpaying contractors for plugging.
The report found the state’s costs for plugging wells have dramatically risen in recent years in part due to plugging deeper, more complex wells, and some inflation, but also due to procurement practices at the Oil Conservation Division.
New Mexico Energy, Minerals, and Natural Resources Deputy Secretary Ben Shelton called the report “fair and comprehensive,” noting that the Oil Conservation Division was not originally set up to deal with orphan wells.
“We’re a regulatory agency set up to permit the operation of the oil and gas industry in New Mexico, this is something that has become a bit of an elephant that the division is dealing with,” Shelton said.
In addition, state laws obligating oil and gas companies to pay are insufficient to meet the costs of cleanup, analysts said.
State law limits oil and gas bonds plugging wells to $250,000 for all of a company’s active wells in the state — even as the average cost to plug one well last year was $163,000. More than three dozen oil and gas operators would be required to pay less than $1,000 per well, according to the report.
Sen. George Muñoz (D-Gallup) asked Shelton why the the Oil Conservation Division hasn’t pursued more funds from operators to reclaim public money spent on cleanup.
“The juice is not worth the squeeze,” Shelton responded. “I’m not going to send one of my three attorneys doing 100% of enforcement for the state on a two-month goose chase for a $50,000 bond — it’s just not worth the state’s taxpayer dollars.”
Shelton said he was hiring an additional attorney to help pivot to seeking assurance, but noted that it still is insufficient to pay.
Muñoz said the state was shirking its responsibilities to “go after bad actors,” and asked if the division was denying permits to operators with outstanding wells.
Shelton said state law doesn’t give the agency that power.
“The view right now is that we don’t have that sort of bad-actor review on that sort of personal compliance,” he told lawmakers. “If you start a brand-new company that has a clean bill of health and a clean record, then we don’t have the ability to come in and say ‘one of your officers has outstanding liability in another company.’”