IPANM (Sept. 15, 2025) IPANM and NMOGA have filed a motion to dismiss the entire WELC Rulemaking Hearing regarding new proposed Financial Assurance Bonding levels and new authority to cancel well acquisitions. The Motion to Dismiss is based on many factors, including the lack of authority of the Oil Conservation Commission (OCC) to arbitrarily set financial assurance bonding rates without statutory authority. Lawyers for industry believe there are legitimate grounds to question whether the OCC is overstepping its authority on setting these new bonding levels and additional rules. Industry cites precedent, where by in 2018’s Financial Assurance Rulemaking, the Commission had legislative authority to create new bonding levels through the passage of SB189 (2018).
The OCC will need to decide on the motion either before or at the beginning of next month’s October 20th to November 7th rulemaking hearing.
