New Mexico Regulatory Alert

The New Mexico State Land Office recently issued proposed regulations that would detrimentally increase the financial assurance (bonding) requirements for oil and gas leases on New Mexico state trust lands. According to the Independent Petroleum Association of New Mexico, the proposal would “increase financial assurance for all 5700 state oil and gas leases by a factor of 15 to $150,000 per lease – regardless of current production or planned future development. The rule will force responsible, independent operators to make the very difficult choice between posting millions in bonds or prematurely plugging viable and economic state wells.”

It is critical that AAPL members make their voices heard to avoid the significant negative impacts this SLO bonding rulemaking would have on the oil and gas industry in New Mexico. 

To participate, the SLO will hold a public hearing (both virtual and in-person) on May 27-28, 2026, and also accept public comments on the rulemaking through May 26, 2026.

Please make your voice heard to oppose this rulemaking that could negatively impact AAPL members in New Mexico.

To learn more about the proposed rule and access information on the hearing and how to submit public comments, please visit the SLO rulemaking website.