Oil tax increase could fund work to keep New Mexico brine cavern from collapsing

Tax increase could help with NM cavern fix

ALBUQUERQUE, N.M. — A southeastern New Mexico brine well that’s in danger of collapsing and taking with it part of a highway, a major irrigation canal and a trailer park could end up costing as much as $25 million to remediate.

Democratic state Rep. John Heaton of Carlsbad says it’s imperative that Gov. Bill Richardson sign into law a measure passed by lawmakers that would increase a tax on oil production to help finance the remediation.

The tax would generate an additional $2 million a year for the oil and gas reclamation fund.

Experts have been meeting regularly in Carlsbad to discuss ways to keep the cavern from collapsing. On Wednesday, they decided more monitoring equipment will be installed at the site.