Posted on 01/22/2019 10:33:27 AM PST by CedarDave
New Mexico’s oil and gas industry is facing significant regulatory reforms under the state’s new Democratic-dominated government, and it’s got producers on edge.
That includes potential legislative amendments to New Mexico’s Oil and Gas Act to let the state Oil Conservation Division directly impose penalties and fines on operators who violate environmental laws, plus statutory changes in leasing policies to allow royalty rates for production on state lands to rise from 20 percent to 25 percent. The state’s first rules and regulations to control methane emissions in oil and gas operations are also on the horizon.
“Folks down here are worried about the direction things could take,” said Raye Miller, president of Regeneration Energy Corp. in Artesia. “…I hope officials are cognizant of how much our industry contributes to the state economy. With punitive policies, capital will flow across state lines into Texas.”
For the Energy, Minerals and Natural Resources Department, giving the Oil Conservation Division authority to impose sanctions is critical to enforce regulations. Under current statutes, the OCD must sue violators in court through the Attorney General’s Office, something officials say impedes effective oversight.
“We need tools to enforce the law,” said department secretary-designate Sarah Cottrell Propst. “It’s a glaring, missing piece our agency needs to do its job.”
But industry leaders say the judicial process ensures fairness through independent assessment of alleged violations, rather than state inspectors acting as judge and jury.
“The benefit is we get an impartial decision maker and a clean record based on evidence developed by both sides,” said New Mexico Oil and Gas Association Executive Director Ryan Flynn. “All we want is a fair shake.”
“That seems like an effort not to increase accountability, but to open opportunities to beat up the industry,” Flynn said
(Excerpt) Read more at abqjournal.com ...
New Mexico is rapidly going the way of California. Sad to admit, but I am glad I got out when the going was good.
Given Lea/Eddy (and to a lesser amount) Lincoln counties are basically the only places where money comes from in NM, this seems a bit short-sighted.
I hate Texas, but I’d consider a merger.
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