This story was originally published by Capital & Main and ProPublica. Last year, representatives of New Mexico’s oil industry met behind closed doors with state regulators and environmentalists in search of a solution to the more than 70,000 wells sitting unplugged in the state. These wells leak oil, brine, and toxic or explosive gasses, with over 1,700 already left for the public to clean up.
The oil companies agreed to assist in finding a solution. After months of negotiations, state regulators emerged with a proposal that aimed to address everyone’s concerns. The bill would require drillers to allocate more funds to plug their wells, allow regulators to block sales to companies unable to afford cleanup, and create buffer zones between wells and sensitive areas.
However, the industry was not pleased with the final language of the bill. The New Mexico Oil and Gas Association labeled it as “a radical and dangerous approach” and urged supporters to oppose it. Despite changes to the bill, it ultimately failed to pass the House of Representatives.
Across the country, there is a significant gap between the funds set aside for well cleanup and the actual costs. Efforts to address this shortfall are now underway, driven in part by federal funding for well-plugging initiatives. Regulators are working with oil companies and trade groups to develop regulations that require more funding for cleanup.
In many states, industry influence has led to the weakening or abandonment of reform proposals. Even in states like New Mexico, where the industry was involved in drafting regulations, oil companies turned against the reform efforts. Efforts to hold companies accountable for cleanup obligations face significant challenges due to industry lobbying and political dynamics.
The Interstate Oil and Gas Compact Commission serves as a forum for industry influence on regulatory practices. At its annual conference, industry representatives discussed new uses for old wells, such as developing hydrogen fuel or storing carbon dioxide. Despite challenges, efforts to address the issue of orphaned wells continue in states across the country.
