By Ramona Cornell du Houx
ALBUQUERQUE, NM—To face the costs of plugging oil and gas wells abandoned by operators, often referred to as orphan wells, New Mexico’s State Representative Debbie Sariñana has taken action this session to address the issue.
Across New Mexico, abandoned oil and gas wells threaten the air, land, and water. These unplugged oil and gas wells pollute groundwater, pose public health threats from wastewater and gas exposure, and can prevent further extraction from nearby wells.
A 2021 Harvard study estimated that fossil fuel air pollution is responsible for 1 in 5 premature deaths worldwide.
Other states adopted laws requiring operators to pay a fixed rate into trust funds for certain wells. State Representative Debbie Sariñana helped apply an unique solution for New Mexico.
“The money to plug oil and gas wells is available in the Oil Conservation Tax revenue which the industry has been paying into for years. It had been swept up by the general fund (GF) for several years, instead of going to the Reclamation Fund that could address this issue. In 2025 it was put into statute to go to the general fund. Now, what had been going to the general fund will go to the Reclamation Fund based on a formula,” said New Mexico State Representative Debbie Sariñana, a retired teacher, Air Force veteran, Elected Officials to Protect America (EOPA) New Mexico Director and EOPA National Leadership Council Co-chair. “New Mexico’s school system has 34,000 children who attend school within a mile of an oil and gas production site. While our children are attending school, too many breathe in invisible toxins that seep into their classes from oil and gas wells positioned dangerously close to their schools. In some cases, these polluting wells are adjacent to playgrounds. Some are abandoned wells that only need to be plugged properly to alleviate some of the harm to our children.”
If no action had been taken the issue of orphan well pollution would have only gotten bigger, a 47-page report released in June of 2025 said, as more wells are rapidly ending their lifespans. According to a Legislative Finance Committee report future plugging of an identified 1,400 wells could cost New Mexico between $700 million dollars to $1.6 billion. The average cost to plug a single well can amount to over $100,000.
“Abandoned and orphan oil and gas wells can release methane and other co-pollutants into surrounding air and soil continuously for decades after production. Some are cancerous, most cause headaches, eye irritations and asthma,” said Ramona Cornell du Houx, EOPA Communications Director, President of the Solon Center for Research and Publishing. “Elected Officials to Protect America stands strongly with Rep. Sariñana’s efforts to address the dangers caused by unplugged wells and to protect school children from methane known as the silent killer because it is colorless and odorless.”
Methane releases can occur alongside other substances. Co-pollutants include: Volatile organic compounds (VOCs) such as benzene, toluene, ethylbenzene, and xylene. Benzene is a well-established carcinogen. Hydrogen sulfide (H₂S) often causes eye irritation, headaches and nausea. Nitrogen oxides are linked to respiratory irritation and worsening asthma symptoms.
“It’s imperative that the funding and a timeline has been established to plug these orphan wells that still pollute and put children and their families at risk. The cleanup to plug 700 wells will cost $208 million and take close to a decade to complete, according to an analysis from a New Mexico Legislative Finance Committee report. Thanks to the hard work, skill and determination of Rep. Debbie Sariñana children in neighborhoods with orphan wells, that are all too often neglected, will be able to breathe healthier air,” said Angel Alfaro Carranza, Elected Officials to Protect America Energy Security Solutions Program Officer.
Currently 10.5 percent of the tax is distributed to the fund when the average price per barrel of West Texas Intermediate crude was below $70 in the previous quarter, and 19.7 percent is distributed when the price exceeds $70. The bill replaces this price‑based formula with a phased schedule of fixed percentage distributions.
(1) 50 percent between July 1, 2027 and July 1, 2028;
(2) 75 percent between July 1, 2028 and July 1, 2029;
(3) 100 percent between July 1, 2029 and July 1, 2037;
(4) 50 percent beginning July 1, 2037 and thereafter.
HB 80 designates the Oil and Gas Reclamation Fund as a non‑reverting fund and appropriates its balances to New Mexico’s Energy, Minerals and Natural Resources Department (EMNRD) for surveying abandoned wells and associated facilities, preparing plugging and remediation plans, and restoring improperly plugged or un-reclaimed sites.
