On September 11, 2026, the New Mexico Oil Conservation Commission (OCC) announced adoption of the amended WELC rules.*
Implementation Timeline. The amended rules are expected to take effect upon publication on September 22, 2026, including:
- Immediate Increased financial assurance (FA) to $150,000 per well for certain low-producing wells being transferred through a sale or acquisition. (Wells with <1,000 BOE and <180 days of production).
- Presumption of no beneficial use for wells producing <90 BOE when operated by non-compliant operators.
- Removal of the well allowance under NMAC 19.15.5.
- Active-well blanket bonds increased to $250,000 and active-well single bonds to $150,000.
- TA blanket bonding increased to an average of $150,000 per well.
- Operator registration and change-of-operator requirements subject to OCD discretion.
- New TA approval demonstration and timing requirements (5 years + 2 years + extension).
By March 2027, OCD is obligated to issue FAQ guidance addressing Agreed Compliance Orders, low-producing-well variances, hearings on variance denials, and rebutting the presumption of no beneficial use.
Beginning September 2027, the presumption against beneficial use will also apply to qualifying wells operated by operators in good standing.
Effective May 1, 2029, a $150,000 bond will apply to all low-producing wells based on 12 consecutive months of production. The same per-well bonding requirement will apply to all wells of an operator whose inactive, approved-TA, and expired-TA wells exceed 20% of its total wells, based on status as of May 1, 2029.
The amended 19.15 rules and the OCC’s Rulemaking Order and Reasons for Action Taken are available on the New Mexico Energy, Minerals and Natural Resources Department website under “New Rules.”
OCD Oil & Gas Rules and Forms – New Rules
IPANM stood in strong opposition to almost all of the stipulations of the new rule, and our appeal to the Oil Conservation Commission was denied last month. IPANM is currently weighing legal recourse due the lack of statutory authority on which this bonding rule was passed. More updates will be forthcoming.
