Program: orphaned well state formula grant program ? Phase 2 legislative authority: 42 U.S.C. ? 15907(c)(4) award purpose: funding through the formula grant program may be utilized to plug,…

The Department of the Interior awarded the New Mexico Energy Minerals & Natural Resources Department $35 million on January 1, 2026, under the Energy Community Revitalization Program (CFDA 15.018) to plug, remediate, and reclaim orphaned wells on state and private lands through December 31, 2030.

The recipient will plug, remediate, or reclaim orphaned wells on state and private lands within New Mexico; remediate soil and restore habitat degraded by orphaned wells or associated pipelines, facilities, or infrastructure; decommission or remove associated pipelines, facilities, and infrastructure adjacent to orphaned wells; identify and characterize undocumented orphaned wells on state and private land; rank orphaned wells by public health and safety risk, environmental harm potential, and land use priorities; identify and address adverse human health or environmental effects on local communities; measure and track methane emissions and other gases as well as contamination of groundwater and surface water; and provide accounting of plugging, remediation, and reclamation costs for each site. The recipient may also develop or administer a program to establish well-plugging capacity where not already in place. Work is performed throughout New Mexico. This is a formula grant, one of three categories of state assistance under the Energy Community Revitalization Program authorized by 42 U.S.C. § 15907.

Activities

This grant funds the new mexico department of energy, minerals and natural resources to perform the following activities: plug, remediate, or reclaim orphaned wells on state and private lands; remediate soil and restore habitat that has been due to the presence of orphaned wells or associated pipelines, facilities, or infrastructure on state and private lands; remediate state and private lands adjacent to orphaned wells and decommission or remove associated pipelines, facilities, and infrastructure; provide an accounting of the cost of plugging, remediation, and reclamation for each orphaned well site on state and/or private lands within the state; identify and characterize undocumented orphaned wells on state and private land; rank orphaned wells based on factors including public health and safety, potential environmental harm, and other land use priorities; identify and address adverse human health or environmental effects on local communities; measure and track methane emissions and other gases as well as contamination of groundwater and surface water; and develop or administer a program to carry out any activities described in this 42 U.S.C. ? 15907(c)(4). Activities funded by this grant must comply with the uniform guidance for grants and agreements (2 CFR 200), build america buy america, davis-bacon act, and 42 U.S.C. ? 15907(c)(4), and include all costs necessary to conduct and manage the approved project, such as equipment and contracted services. Expected deliverables or outcomes: 1. Decrease the amount of methane emissions from orphaned wells. 2. Enhance the protection of public health, safety, and property from adverse effects of oil drilling practices from orphaned wells on state and private lands. 3. Plug, remediate, or reclaim orphaned wells on state and private lands. 4. Restore land and water resources, the environment, and property from oil drilling activities, facilities, and associated pipelines from orphaned wells on state and private lands. 5. Remediate and restore land and water resources to return lands to traditional uses, including woodland, energy production, fish and wildlife habitats, recreation resources, and agricultural productivity.

Intended beneficiaries

The public benefits directly and indirectly from the proposed project that addresses national energy security and public safety. This investment in state programs across the country will grow the economy and address energy goals. Information and data collected by this project will be made available as applicable. The public will benefit by mitigating risks, restoring lands to productive uses, and providing job opportunities in impacted communities where work will be prioritized. Subrecipient activities (if known or specified at time of award): n/a