OIL & GAS RECLAMATION FUND CHANGES

SB 519 increases funding for New Mexico's Oil and Gas Reclamation Fund by raising the tax distribution percentage from 2/19 to 19.7% of certain oil and gas tax receipts. It dedicates at least $40 million or 5% of the fund’s average value to plug abandoned wells, restore sites, and remediate facilities, while adding a new annual limit of $150,000 for energy education. The bill also clarifies that the fund can cover plugging costs on federal lands and allows contractors to sell salvaged equipment to offset expenses. These changes aim to accelerate cleanup of legacy oil and gas sites, directly affecting the state’s environmental remediation efforts and the oil industry through updated tax contributions.