Oil and gas executives are under fire again for one of their favorite strategies: abandoning unplugged wells and leaving taxpayers to bear the costs of cleanup.
New Mexico is pushing back.
What's happening?
The state has accused Everett Willard Gray II, Robert Stitzel, and Marquis Reed Gilmore Jr. of fraud, alleging they profited from hundreds of wells while refusing to plug and remediate them, according to ProPublica.
According to the lawsuit, the executives transferred wells among companies they controlled, moving profitable assets to new entities while placing older, less productive wells into soon-bankrupt companies. This allowed them to avoid cleanup obligations and costs.
Since 2015, the men consolidated hundreds of wells under Remnant, their group of companies, which accumulated regulatory violations for inactive and unplugged wells. Days before a state cleanup deadline in 2019, Remnant filed for bankruptcy, splitting the wells among newly formed companies, many of which later followed the same path.
As a result, 172 wells became the responsibility of the State Land Office, with cleanup costs reaching $25 million. The state was able to claim only a single $20,000 bond from Remnant.
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A 2025 Legislative Finance Committee report estimated over 5,000 wells will require cleanup in the coming years, with costs reaching $1.6 billion.
"This is a very vivid demonstration of why we need an upgrade to the bonding rule," State Land Office general counsel Ari Biernoff told ProPublica. "Any reasonable observer would conclude we have grossly inadequate bonding."
Why is this practice concerning?
Unplugged oil and gas wells can leak methane, a powerful heat-trapping gas, along with toxic wastewater that contains radioactive materials. Some wells linked to these executives emitted methane at explosive levels, while others contained dangerous concentrations of hydrogen sulfide, according to a ProPublica investigation.
"I wish I could say that it's unique," said ecologist Charlie Barnett, who has monitored the wells for years, "but it isn't."
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$200 or more 💰 Despite industry claims that government bonds cover cleanup costs, those funds account for less than 2% of the estimated nationwide burden, leaving taxpayers vulnerable when companies abandon their obligations.
This follows countless examples of greenwashing by oil companies and executives who prioritize profits over the planet. ExxonMobil's CEO blamed consumers for the changing climate, while nearly every major energy company has abandoned previous net-zero emissions commitments, and Shell's CEO even claimed it would be "dangerous" to produce less oil and gas.
What's being done about these practices?
New Mexico is advocating for stronger bonding requirements, compelling companies to set aside more money up front for cleanup costs. A proposal introduced in October would require a $150,000 bond for each inactive or low-producing well.
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