Draft:New Mexico Oil Conservation Division

New Mexico Oil Conservation Division
Division overview
Headquarters	Santa Fe, New Mexico
Division executive	Albert C. S. Chang, Director;
Parent Division	New Mexico Energy, Minerals and Natural Resources Department
Website	https://www.emnrd.nm.gov/ocd/

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Declined by Nil NZ 3 days ago. Last edited by Nil NZ 3 days ago. Reviewer: Inform author.

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The New Mexico Oil Conservation Division (OCD) is the oil and gas regulatory agency of the U.S. state of New Mexico. The division is a component of the New Mexico Energy, Minerals and Natural Resources Department (EMNRD) and is responsible for administering and enforcing New Mexico's oil and gas laws, regulating drilling and production activities, protecting correlative rights, preventing waste of oil and gas resources, overseeing underground injection operations, administering orphan well programs, and enforcing environmental and operational requirements applicable to the state's oil and gas industry.

The division regulates one of the largest oil-producing jurisdictions in the United States. New Mexico is a leading producer of crude oil and natural gas, largely due to development of the Permian Basin in southeastern New Mexico.

The division is headed by a director appointed by the Secretary of Energy, Minerals and Natural Resources with the approval of the governor. The director also serves as chair of the New Mexico Oil Conservation Commission.

History

The Oil Conservation Division traces its origins to the New Mexico Oil and Gas Act of 1935, enacted during a period of rapid oil-field development in the American Southwest. The legislation established a statewide regulatory framework intended to prevent physical and economic waste of oil and gas resources and to protect the rights of mineral owners.

The Oil and Gas Act created the Oil Conservation Commission and authorized the development of a professional regulatory staff to administer the commission's orders and regulations. Over time, this administrative function evolved into the modern Oil Conservation Division.

Historically, the division focused on traditional conservation functions such as well spacing, production allowables, reservoir management, and prevention of waste. Beginning in the late twentieth century, its responsibilities expanded to include environmental protection, groundwater protection, produced water management, plugging and abandonment, methane regulation, and remediation of orphaned wells.

The division became part of the New Mexico Energy, Minerals and Natural Resources Department following creation of EMNRD in 1987.

Statutory Authority

The division derives its authority primarily from the New Mexico Oil and Gas Act, Sections 70-2-1 through 70-2-38 NMSA 1978.

Under state law, the division is responsible for:

Preventing waste of oil and gas resources.
Protecting correlative rights among mineral owners.
Regulating drilling, completion, production, plugging, and abandonment of wells.
Administering underground injection control programs.
Preventing contamination of fresh water.
Enforcing state oil and gas statutes and regulations.
Collecting production and operational data.
Administering financial assurance requirements.
Managing orphaned and abandoned well programs.

The division also administers regulations adopted by the Oil Conservation Commission.

Organization

The division is headed by a director and is organized into several operational bureaus, including engineering, environmental, administrative, legal, and field inspection functions.

District offices are maintained in major producing regions of the state, including southeastern New Mexico and the San Juan Basin.

As of 2026, the division leadership includes:

Director — Albert C.S. Chang
Deputy Director — Brandon Powell
Deputy Director — Gerasimos "Gerry" Razatos

Regulatory Responsibilities

Well Permitting

The division reviews and approves applications for drilling, recompletion, plugging, injection, and other oil and gas operations. Operators must obtain permits before conducting most drilling and production activities.

Enforcement

The division conducts inspections, investigates violations, issues notices of violation, assesses penalties, and may issue administrative orders requiring corrective action.

Underground Injection Control

The division administers portions of New Mexico's Underground Injection Control (UIC) program. These activities include regulation of saltwater disposal wells, enhanced recovery operations, and other injection activities associated with oil and gas production.

Produced Water Management

The division regulates the handling, storage, transportation, recycling, and disposal of produced water generated during oil and gas operations.

Orphan Well Program

The division administers programs to identify, plug, and remediate orphaned oil and gas wells. Federal funding received through the Infrastructure Investment and Jobs Act significantly expanded the scale of New Mexico's plugging and remediation efforts during the 2020s.

Methane and Natural Gas Waste Regulation

The division is responsible for implementation and enforcement of New Mexico's natural gas waste and methane-control regulations. These rules were adopted during the early 2020s and are intended to reduce emissions and minimize waste of natural gas resources through venting, flaring, and leaks.

Director

Albert Chang became Director of the Oil Conservation Division on June 23, 2025. He holds a bachelor's degree in chemical engineering, a Master of Public Administration degree, and a Juris Doctor degree from the University of Washington School of Law.^[1]

External links

Official website

References

^ EMNRD Oil Conservation Division, "Meet Our Team," accessed June 2026.

[1] EMNRD Oil Conservation Division, "Meet Our Team," accessed June 2026.

[1]