Bill on repurposing oil and gas wells to geothermal passed in New Mexico, US
Oil Well near Eunice, New Mexico, United States (source: James Gabbert, CC BY-SA 4.0, via Wikimedia Commons)
Carlo Cariaga
9 Apr 2025
House Bill 361 has been signed by the Governor of New Mexico, establishing a framework for the conversion of oil and gas wells to geothermal energy facilities.
Gov. Michelle Lujan Grisham of New Mexico in the United States has signed House Bill 361, which creates a framework for the conversion of existing oil and gas wells into facilities for energy storage or geothermal energy development. The bill was sponsored by Representative Andrea Romero (D-Santa Fe).
HB361, known as the “Well Repurposing Act,” grants the authority to the New Mexico Energy, Minerals, and Natural Resources Department (EMNRD) to convert oil and gas wells into energy storage or geothermal energy facilities. Moreover, the department may establish fees and financial assistance requirements specific to the energy storage or geothermal development uses.
The bill also defines a “geothermal resource” as the natural heat of the earth in excess of 250 °F (121 °C) including all minerals in solutions obtained from naturally heated fluids, excluding oil and other hydrocarbons.
“New Mexico has nearly 2,000 orphaned wells across our state, sitting unused and posing pollution risks to our people and environment,” said Rep. Romero. “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.”
The repurposing of oil and gas wells for geothermal use was also one of the provisions under North Dakota’s Senate Bill 2360, which was also just signed by the Governor recently.
Source: SourceNM, New Mexico Democrats, and New Mexico Legislation
