Summary:

 House Bill 257 (HB 257) provides that the division may make rules and orders regulating the transfer of oil and gas wells, including limitations on certain transfers. 

 

Legislation Overview:

 House Bill 257 (HB 257) in Section 70-2-12 NMSA 1978 grants the Oil Conservation Division (OCD) discretion to make rules and orders regulating the transfer of oil and gas wells, including limitations on certain transfers. The limitations are based on the existence of notices of violation, an enforcement action under the Oil and Gas Act, or being out of compliance with capture or reporting requirements by a transferor, transferee or other entity who owns more than a twenty-five percent interest, and lack of proof of adequate financial assurance by the transferee.  The OCD must issue a written finding that these limitations on transfer are necessary for the purposes of mitigating risk to the state from potential inactive or abandoned oil and gas wells.