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Permian Basin Oil and Gas Magazine

PBOG is the Official Publication of the Permian Basin Petroleum Association and is published monthly by Zachry Publications, LP.

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New Mexico to clean about 200 abandoned wells with $25 million grant

September 22, 2022 by PBOG

State of New Mexico is scheduled to receive $25 million in October to clean abandoned oil wells and another $18.7 million later from the U.S. Department of Interior.  Interior is sending $560 million to 24 states to clean orphaned wells.  The state’s Oil and Conservation Division identified about 1,700 abandoned wells in New Mexico, and Sidney Hill told Santa Fe New Mexican the $25 million will enable the state to clean about 200 wells.  New Mexico qualified for the maximum initial grant of $25 million because of its number of abandoned wells and estimated cleanup costs.  Adrienne Sandoval, agency director, previously said the state plugs about 50 abandoned wells a year at an average cost of $42,000 each.

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