Santa Fe, New Mexico — New Mexico has filed a civil lawsuit accusing three Texas oil executives of orchestrating what state officials describe as a long-running fraudulent scheme designed to strip profits from oil and gas wells while leaving taxpayers responsible for cleanup costs.
The complaint, filed in late December by the New Mexico attorney general’s office, alleges that Everett Willard Gray II, Robert Stitzel, and Marquis Reed Gilmore Jr., all based in Midland, Texas, repeatedly transferred hundreds of wells among shell companies they controlled. According to the 72-page filing, the executives moved profitable wells out of companies before placing them into bankruptcy, allowing liabilities tied to inactive and leaking wells to fall on the state.
Attorney General Raúl Torrez said the alleged conduct burdened New Mexico with millions of dollars in remediation expenses and endangered public health through methane emissions, hydrogen sulfide leaks, and wastewater contamination. Investigations by ProPublica and Capital & Main previously documented hazardous conditions at dozens of wells tied to the group’s Remnant companies, including sites with explosive methane levels.
Gray has denied wrongdoing, calling the lawsuit meritless and asserting he acted ethically. Two companies linked to the executives, including New Era Energy & Digital, have said their wells no longer fit their business models, while Stitzel and Gilmore have not responded publicly.
State officials argue the case highlights systemic weaknesses in oil and gas bonding rules. New Mexico estimates it could face up to $1.6 billion in costs to plug orphan wells statewide, prompting regulators to consider stricter bonding requirements aimed at preventing similar outcomes.
Sources:
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New Mexico Department of Justice – Unrated
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Legislative Finance Committee Report – Unrated
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