PRODUCED WATER & ABANDONED WELLS FUND

SB 178 creates a 5-cent fee per barrel on produced water from oil and gas wells in New Mexico, collected from operators (with limited exemptions for water used in enhanced oil recovery, recycling at permitted facilities, or regulated water quality uses). The revenue funds the "Plugging and Remediating Abandoned Wells Fund," managed by the Oil Conservation Division to plug abandoned wells and clean up sites. The fee must be paid monthly by the 25th, with reporting requirements for water volume. This policy directly affects oil and gas operators and aims to address environmental risks from inactive wells.