Wedoany.com Report-Apr. 11, New Mexico Governor Michelle Lujan Grisham has signed House Bill 361, establishing a framework to repurpose existing oil and gas wells for energy storage or geothermal energy development. The legislation, sponsored by Representative Andrea Romero from Santa Fe, was enacted to promote sustainable energy solutions in the state.
Oil Well near Eunice, New Mexico, United States
Known as the “Well Repurposing Act,” HB361 authorizes the New Mexico Energy, Minerals, and Natural Resources Department (EMNRD) to oversee the conversion of oil and gas wells into facilities for energy storage or geothermal energy production. The department is also empowered to set fees and financial support guidelines tailored to these new uses. The initiative focuses on transforming infrastructure for energy generation, distinct from import or consumption activities.
The bill defines a “geothermal resource” as the earth’s natural heat exceeding 250°F (121°C), including minerals in heated fluids but excluding oil and hydrocarbons. This clarity ensures precise application of the law to geothermal projects across New Mexico.
Representative Romero highlighted the bill’s benefits, stating: “New Mexico has nearly 2,000 orphaned wells across our state, sitting unused and posing pollution risks to our people and environment. House Bill 361 will not just support the cleanup and methane monitoring of these wells, but repurpose unused and unusable assets for clean energy battery storage and geothermal production — a win-win for all.” Her remarks underscore the dual focus on environmental protection and energy innovation.
The legislation addresses New Mexico’s nearly 2,000 orphaned wells, which are currently idle and pose environmental challenges. By repurposing these wells, the state aims to reduce pollution risks while creating infrastructure for renewable energy. A Santa Fe-based official noted: “This approach turns dormant assets into productive resources for our communities.”
The EMNRD will play a central role in managing the conversion process, ensuring projects meet technical and environmental standards. The bill’s framework supports the cleanup of well sites and the integration of methane monitoring, enhancing safety and sustainability.
Similar efforts have been adopted elsewhere, such as North Dakota’s Senate Bill 2360, which also includes provisions for repurposing wells for geothermal use. New Mexico’s initiative builds on this model, adapting it to local needs. A department representative said: “We’re committed to making practical use of existing infrastructure for a cleaner energy future.”
The Well Repurposing Act positions New Mexico as a leader in innovative energy solutions. By leveraging existing wells for geothermal and storage purposes, the state fosters economic and environmental benefits. The collaborative efforts of lawmakers and state agencies ensure the program’s success, creating a model for sustainable development.
