IPANM (Dec. 19, 2025) – After the urging of IPANM and many other industry trade groups, the Trump administration has issued a final rule extending new federal oil & gas bonding increases for an additional year. The move fulfills a promise personally made by acting-BLM secretary Bill Groffy to IPANM Executive Director Jim Winchester earlier this month following IPANM’s plea for quick action to reverse the Biden-era Bonding Rule that went into effect in 2024.
“IPANM members face an unfair and disproportionate impact from bonding increases, and we appreciate that President Trump, Department of the Interior Secretary Doug Burgum, and acting-BLM Secretary Bill Groffy recognized this,” said Jim Winchester, IPANM Executive Director. “As this is step one in fixing this specific rule, we look forward to future action from the BLM to permanently rescind the flawed Biden-era Bonding Rule.”
The extension also formally negates this notice that hundreds of New Mexico-based operators received earlier this fall that indicated payment of a new $500,000 blanket bond was due by June 22, 2026. At the time, IPANM advised members to NOT submit the new bond increase due to future action from the Trump administration.
As cited by IPANM partner trades the Domestic Energy Producers Alliance (DEPA) and the National Stripper Well Association (NSWA), had the new bonding increases moved forward:
- Nearly 21,000 small oil and gas operators nationwide would face a twenty-fold increase in bonding requirements.
- Thousands of small producers could be forced to shut down, resulting in the loss of many thousands of jobs.
- Rural communities would experience reduced tax revenues and strain on essential public services.
- The U.S. could lose up to:
- 164,000 barrels of oil per day
- 1.4 billion cubic feet of natural gas per day
- 172,000 stripper oil and gas wells
- Premature well closures could increase public financial exposure if wells are abandoned due to operator insolvency.
IPANM also is involved with a lawsuit filed by a group of industry trades against the provisions of the Biden-era Bonding Rule. That lawsuit is on hold as the Trump administration moves forward to formally rescind the existing rule. The Trump BLM has indicated that the formal rescinding of the Biden-era Bonding Rule will occur in 2026.
IPANM also remains heavily engaged post-hearing rulemaking regarding a new proposed New Mexico Oil Conservation Division bonding rule covering wells, and a new proposed New Mexico State Land Office bonding increase per lease. Those proposals threaten to disproportionately increase bonding levels on New Mexico state lands
