Interior Announces Reforms For
Federal Bonding Costs and Waste Rules
U.S. Department of the Interior / IPANM (Jun. 23, 2025) - The Department of the Interior announced two coordinated regulatory actions on June 22, 2026, to modernize federal onshore oil and gas policy — removing the anti-oil & gas, Biden-era statewide bonding requirement of $500,000 and returning it to $25,000; and, revising the waste prevention rule to cut compliance costs by nearly $17 million annually.
In response to the announcement, IPANM Executive Director Jim Winchester offered the following statement:
"For oil and gas producers in New Mexico, these reforms remove the punishing upfront financial barriers and regulatory red tape. By replacing subjective bureaucratic standards with clear, objective rules and streamlined leasing procedures, the Interior is restoring a level playing field that lets New Mexico's independent operators invest in production rather than paperwork.
Sadly, New Mexico's state agencies are going in the exact opposite direction, spending millions of taxpayer dollars on two new bonding rules to increase the cost of doing business on state lands. This will continue the widespread exodus of New Mexico producers who are simply choosing to conduct oil & gas operations on federal lands over state lands by a margin greater than 2 to 1 in New Mexico. State beneficiaries, schools, roads, and increased public safety are all being denied millions of dollars in lost oil & gas revenues because of bad state policy."
