NEW MEXICO (KRQE) – New Mexico and Texas have finalized an agreement to develop and operate oil and gas wells that cross state lines. Officials say this agreement responds to unique development scenarios that came up due to the resource being cross-border.

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In 2021, the New Mexico Oil Conservation Commission issued conditional approval for a cross-border well, but the two states needed to enter into a memorandum of agreement before facilities could be built. It outlines how the product from the wells will be distributed and reporting, permitting and operating requirements for each state.