New Mexico Adopts New Bond Regulations for Injection Wells

On August 14, 2015, the New Mexico Water Quality Control Commission approved new regulations regarding Class 1 hazardous substance injection wells. The amended legislation states that, depending on the location of the injection well, either a state or federal surety bond will need to be filed by the operator of the well.

If the injection well is located on federal land, the principal (well operator) must post a federal surety bond rather than one designated for the state. This bond satisfies the federal financial assurance requirements in association with injection wells. If an injection well is built on a non-federal piece of land, a surety bond is still required, but only needs to be filed with the state of New Mexico.

Included in these amendments is a specification that a state injection well bond must be issued by a surety provider licensed with the New Mexico Superintendent of Insurance.

These bonds act as a form of financial reassurance to those who own the land in which the wells are built on. The financial assurance ensures that once a well is closed, the well operator is still required to maintain financial responsibility.

Bond amounts must be equal to the estimated cost of post-closure care to the site. The price you’ll pay for a bond varies on a case-by-case basis depending on the cost of site maintenance. The best way to find out how much you’d pay for your bond is to contact a licensed surety bond provider.

For more information regarding licensing information or the bond process, contact or the New Mexico Water Quality Control Commission.

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About the Author

Emily Jo Pahl
Emily attends the University of Wisconsin - Stevens Point and is pursuing a degree in media communications and creative writing. She is a member of the marketing department and outreach team for, a leading provider of online bonding for clients nationwide.