Credit Stephanie Garcia Richard
ALBUQUERQUE, N.M. New Mexico’s financial assurance requirements for oil and gas wells, pipelines and related infrastructure fall far short of what would be needed to offset closure and cleanup costs.
That s the finding of an independent study commissioned by the state after concerns were raised last year about taxpayers being left on the hook if companies go bankrupt or abandon their operations without cleaning up.
The study pegged the bonding gap at more than $8 billion. Land Commissioner Stephanie Garcia Richard called the estimate staggering. She says the state needs to take action to ensure companies are adequately bonded. She s planning a series of public meetings on the issue.
Oil boom in New Mexico could stick taxpayers with cleanup costs -study Reuters 3 hrs ago
By Nichola Groom
May 20 (Reuters) - Drillers in New Mexico have set aside only a tiny fraction of the money they will eventually need to clean up their wells, pipelines and other infrastructure in the state, leaving taxpayers at risk of footing some of the balance, according to a study published on Thursday.
Concerns are growing about who will pay for the environmental impact of more than a century of oil and gas production in the United States. The issue is front and center in New Mexico, which has rapidly grown into the nation s third-largest oil producer.
New Mexico official takes aim at oil, gas bond requirements
SUSAN MONTOYA BRYAN, Associated Press
May 20, 2021
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FILE - In this April 24, 2015 file photo, pumpjacks work in a field near Lovington, N.M. New Mexico’s financial assurance requirements for oil and gas wells, pipelines and related infrastructure fall far short of what would be needed to offset closure and cleanup costs, according to the findings of an independent study released Thursday, May 20, 2021.Charlie Riedel/AP
ALBUQUERQUE, N.M. (AP) New Mexico’s financial assurance requirements for oil and gas wells, pipelines and related infrastructure fall far short of what would be needed to offset closure and cleanup costs, according to the findings of an independent study released Thursday.
Oil boom in New Mexico could stick taxpayers with cleanup costs - study
By Nichola Groom
Reuters
(Reuters) - Drillers in New Mexico have set aside only a tiny fraction of the money they will eventually need to clean up their wells, pipelines and other infrastructure in the state, leaving taxpayers at risk of footing some of the balance, according to a study published on Thursday.
Concerns are growing about who will pay for the environmental impact of more than a century of oil and gas production in the United States. The issue is front and center in New Mexico, which has rapidly grown into the nation s third-largest oil producer.