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Marginal wells are a tipping point for New Mexico industry

James Fenton | Farmington Daily Times

Hampered by low natural gas and crude oil prices and leery of pending revisions of federal regulations intended to tighten oil and gas industry regulations, San Juan County operators are making payroll cuts and closing wells as they struggle to keep running.

Tom Mullins, owner/operator of Synergy Operations LLC in Farmington for more than 20 years, has worked through previous bust cycles. But this one has had staying power and the loss of revenue from a reduction in severance taxes already has hurt local and state budgets, he said. And the proposed changes to federal regulations will multiply the negative impact, he added. Full Story