HB 403 New Mexico House · 2025 Regular Session

OIL & GAS FUND DISTRIBUTION & USES

HB 403 increases the percentage of oil and gas tax revenue distributed to New Mexico's Oil and Gas Reclamation Fund from two-nineteenths to 19.7 percent, providing more funding for cleanup efforts. The bill requires that at least $40 million or 5% of the fund's average value over the past three years be used annually for surveying abandoned wells and planning their reclamation, while also capping energy education spending at $150,000 per year. It clarifies that the state can plug wells on federal lands without bonds and later seek reimbursement from oil and gas operators through legal action. This legislation would expand resources for cleaning up abandoned oil and gas sites and improving environmental conditions across New Mexico.

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 12, 2025 Last action Jun 3, 2025

Maddy AI version diff · 1 comparison

What changed between versions

introduced version → EN substitute · 6 edits

MODERATE

This bill increases the tax distribution rate to the Oil and Gas Reclamation Fund from 19.7% to up to 100% over a three-year period, changes how fund money can be spent from optional to mandatory reclamation work, and adds a new requirement for annual reporting. The changes aim to ensure more money is available for plugging abandoned wells and restoring well sites on federal lands.

Scope change

The bill expands the scope of fund usage from optional expenditures to mandatory reclamation activities and adds a new annual reporting requirement.

FISCAL

Increased the percentage of tax receipts distributed to the Oil and Gas Reclamation Fund from 19.7% to 50% in 2025, 75% in 2026, and 100% starting in 2027.

Removed the provision allowing up to $150,000 annually for energy education programs.

REQUIREMENT

Changed fund expenditures from optional ('may be used') to mandatory ('shall be used') for reclamation purposes, requiring the director to reclaim and plug all abandoned wells and restore well sites.

Added a new annual reporting requirement where the director must report fund usage to the secretary of energy, minerals and natural resources, the governor, and the legislature.

Added a new definition for 'associated production facilities' to clarify what equipment and infrastructure are included in reclamation obligations.

ENFORCEMENT

Added authority for the division to bring suits in county district court (rather than just district court) for indemnification when costs are paid from the fund.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 22, 2025

Lower · Passed

DO NOT PASS, replaced with committee substitute

lower

Feb 12, 2025

Introduced

Sent to House Energy, Environment and Natural Resources Committee & House Taxation & Revenue Committee

lower

5 primary · 0 co-sponsors