By Jessie Hunt, New Mexico Oil and Gas Association
ALBUQUERQUE — The New Mexico Oil & Gas Association (NMOGA) praised Gov. Michelle Lujan Grisham for signing House Bill 80 into law on March 9. The bill is a meaningful step forward for New Mexico’s energy sector at a moment when the stability and dependability of domestic energy production have never mattered more.
HB 80 makes a targeted and significant investment in New Mexico’s capacity to address abandoned wells. The bill substantially increases the share of Oil and Gas Conservation Tax receipts directed to the Oil and Gas Reclamation Fund, phasing up to 100% of net receipts between 2029 and 2037 before stabilizing at 50% on an ongoing basis.
The dollars in the Fund are generated exclusively by the oil and gas industry. These funds are dedicated to surveying abandoned well sites, plugging orphaned wells, and restoring and remediating associated production facilities—work that is essential to protecting New Mexico’s land, water, and communities. The bill also expands the Fund’s authorized uses to support statewide energy education focused on all energy sources and the impacts of energy-related emissions.
With global energy markets gripped by serious disruption and price volatility unlike anything seen in years, New Mexico’s land-based, domestically produced oil and gas stands apart: reliable, sustainable, and responsible. HB 80 strengthens the framework that keeps that responsible production humming — and keeps the revenues flowing that fund the services New Mexicans depend on.
NMOGA’s President and CEO, Missi Currier, expressed the association’s strong support for the Governor’s leadership in signing this legislation.
“At a time when the world is reminded just how fragile and volatile global energy supply can be, New Mexico’s producers offer something rare: steady, responsible, homegrown energy that funds our schools, our transportation systems, our health care, and our communities,” she said. “Gov. Lujan Grisham’s signing of HB 80 is an investment in that stability — and in every New Mexican who benefits from it.”
WHY DOMESTIC PRODUCTION MATTERS — NOW MORE THAN EVER
New Mexico’s oil and gas industry contributes approximately 40% of the state’s annual General Fund revenues. That number has always been significant. Today, as energy prices fluctuate sharply in response to global events beyond any state’s control, it takes on even greater meaning.
Unlike production dependent on far-flung shipping lanes or unstable geopolitical relationships, New Mexico’s Permian and San Juan Basins output move through domestic pipelines and reach domestic markets. When the world grows uncertain, New Mexico’s producers keep working — and the revenues they generate keep the state’s commitments intact
THE HUMAN IMPACT: WHAT OIL AND GAS REVENUES MAKE POSSIBLE
Among the bills signed by the Governor as of March 9, the following represent direct evidence of what New Mexico’s homegrown energy production funds — year in, year out, regardless of what global markets are doing:
- HB 1 – The Feed Bill: The annual state government operations appropriation — which keeps every agency, court, and program running — is funded almost entirely by the General Fund. The consistency of New Mexico’s oil and gas revenues is what allows the state to meet its obligations to residents even when broader economic conditions are turbulent.
- HB 4 – Health Care Affordability Fund Distributions: Expanding access to health care for working New Mexicans is a commitment the state can sustain because domestic energy revenues provide a dependable fiscal base — one that doesn’t fluctuate with foreign policy or overseas supply chains.
- HB 7 – Apprenticeship Assistance Act Transfers: Investing in the next generation of skilled tradespeople requires sustained funding. The workers who build New Mexico’s future are supported, in no small part, by the revenues generated by the workers who power its energy industry today.
- HB 43 – Disability & Survivor Pensions Changes: Honoring the retirement security of public employees and their families is a long-term promise — one backed by the long-term revenue stability that New Mexico’s domestic oil and gas production provides.
- HB 63 – NMFA Water Project Fund Projects: Clean, reliable water infrastructure — especially in rural and tribal communities — is funded in part through the New Mexico Finance Authority, which draws on severance tax revenues tied to energy production. Safe water at home is, in part, a dividend of domestic energy.
- HB 64 – Public Project Revolving Fund Appropriations: Schools, roads, and public facilities are built and maintained through state revolving funds anchored in General Fund and severance tax revenues. These projects keep moving forward regardless of what is happening in overseas markets.
- HB 95 – Additional Second Judicial District Judgeship: A functioning justice system requires sustained public investment. The judicial salaries and court operations that deliver justice to New Mexicans are funded through General Fund appropriations underpinned by oil and gas revenues.
- HB 109 – Water Project Fund Changes: Strengthening New Mexico’s water infrastructure investments is made possible through the Severance Tax Permanent Fund — a fund built over decades from New Mexico’s energy wealth and designed precisely to provide stability when other revenue sources become unpredictable.
- HB 128 – Firefighter Occupational Disease Disablement: First responders who protect New Mexico communities deserve comprehensive benefits. The state can make and keep that commitment because its fiscal foundation — grounded in domestic energy production — does not depend on the decisions of foreign governments or the stability of distant shipping lanes.
NMOGA looks forward to continued collaboration with Lujan Grisham and the Legislature to ensure that New Mexico’s energy sector remains a cornerstone of the state’s fiscal strength — and that the revenues it generates continue to be invested wisely.
