After significant developments this week that included the signage of HB80 and the filing of an enviro group lawsuit against the Oil Conservation Division, IPANM has joined with the New Mexico Oil & Gas Assocciation to file a joint Expedited Motion To ReOpen the Western Environmental Law Center’s (WELC) Bonding Rulemaking Hearing.
The motion, filed Friday, reads that IPANM and NMOGA “respectfully move the Commission to reopen the evidentiary record in Case No. 24683 for the limited purpose of supplementing the record to consider the implications of House Bill 80 (“HB 80”), and a new lawsuit filed by a Co-Applicant to this rulemaking against the State, both of which were enacted and filed this week on March 9, 2026, and to allow limited supplemental briefing by the parties on their impact on the Proposed Rules.”
Click Here: IPANM & NMOGA’s Expedited Motion To ReOpen WELC
Industry’s legal arguments for reopening make it clear that the circumstances have changed due to the signing of HB80. In essence, the core argument by WELC and the OCD for increased bonding was due to limited funding to address orphan well liability. However, with the Reclamation Fund set to receive a potential $1.2 billion dollar infusion over the next 10 years, the funding shortage no longer exists. Industry is also citing Monday’s lawsuit filed by the San Juan Citizen’s Alliance (a party to the WELC Bonding Rulemaking) against the state (regarding orphan well remediation), as evidence that the proposed rules are unsound.
IPANM and NMOGA have indicated to all parties that the Expedited Motion to ReOpen is NOT a tactic to obstruct the rulemaking. IPANM and NMOGA have indicated that industry does not intend to reopen every issue presented at the Oct-Nov 2025 hearing, nor does industry wish to backtrack on post-Hearing All-Party discussions, including a Joint Stipulation agreement that was finalized last week. However, IPANM and NMOGA do intend submit limited evidence on the impact of HB80 and related developments that impact a new bonding rule.
In a late development on Friday afternoon, the San Juan Citizen’s Alliance (SJCA) withdrew from the WELC environmental groups’ consortium.
