{"id":25148,"date":"2024-01-20T09:39:37","date_gmt":"2024-01-20T16:39:37","guid":{"rendered":"https:\/\/westernlaw.org\/?page_id=25148"},"modified":"2024-01-23T08:14:22","modified_gmt":"2024-01-23T15:14:22","slug":"fact-sheet-new-mexico-oil-and-gas-act-amendments-hb-133","status":"publish","type":"page","link":"https:\/\/westernlaw.org\/es\/fact-sheet-new-mexico-oil-and-gas-act-amendments-hb-133\/","title":{"rendered":"Hoja informativa: Enmiendas a la Ley de Petr\u00f3leo y Gas de Nuevo M\u00e9xico (HB 133)"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.17.1&#8243; background_image=&#8221;https:\/\/westernlaw.org\/wp-content\/uploads\/2023\/01\/iStock-NM-Oil-Tumbleweed-scaled.jpg&#8221; parallax=&#8221;on&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.17.1&#8243; background_color=&#8221;RGBA(255,255,255,0)&#8221; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; background_enable_mask_style=&#8221;on&#8221; background_mask_style=&#8221;arch&#8221; background_mask_color=&#8221;RGBA(255,255,255,0)&#8221; background_mask_aspect_ratio=&#8221;portrait&#8221; module_alignment=&#8221;center&#8221; custom_padding=&#8221;20px|20px|20px|20px|false|false&#8221; border_color_left=&#8221;#000000&#8243; border_style_left=&#8221;dashed&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;4.24.0&#8243; background_color=&#8221;rgba(255,255,255,0.75)&#8221; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; custom_padding=&#8221;20px|20px|20px|20px|false|false&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h1><b><span data-contrast=\"auto\">Fact Sheet: New Mexico Oil and Gas Act Amendments (<\/span><\/b><a href=\"https:\/\/www.nmlegis.gov\/Legislation\/Legislation?Chamber=H&amp;LegType=B&amp;LegNo=133&amp;year=24\"><b>HB 133<\/b><\/a><b><span data-contrast=\"auto\">)<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559685&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/h1>\n<p><a href=\"https:\/\/www.nmlegis.gov\/Legislation\/Legislation?Chamber=H&amp;LegType=B&amp;LegNo=133&amp;year=24\" target=\"_blank\" rel=\"noopener\">House Bill 133<\/a> would amend the Oil and Gas Act to better protect the environment from oil and gas operations, better ensure that oil and gas companies properly clean up and reclaim oil and gas infrastructure, deter violations of the act by increasing civil penalties, and codify a 98% methane waste requirement into law to ensure the long-term viability of the state\u2019s nationally leading methane rules promulgated in 2021.<\/p>\n<p><a href=\"https:\/\/sourcenm.com\/2023\/12\/06\/new-mexico-governor-kickstarts-eefort-to-overhaul-oil-and-gas-regulation\/\" target=\"_blank\" rel=\"noopener\">According to<\/a> Sidney Hill of the New Mexico Energy, Minerals and Natural Resources Department, the Oil and Gas Act &#8220;no longer contains all the tools necessary to oversee the current industry and ensure robust environment protection.\u201d<\/p>\n<p>Across New Mexico, approximately 1,700 orphaned and abandoned oil and gas wells also threaten our <a href=\"https:\/\/www.edf.org\/sites\/default\/files\/2021-10\/Orphan%20Well%20FactSheet%20NM.pdf\" target=\"_blank\" rel=\"noopener\">air<\/a>, land, and <a href=\"https:\/\/www.scientificamerican.com\/article\/deteriorating-oil-gas-wells-threatening-americas-drinking-water\/\" target=\"_blank\" rel=\"noopener\">water<\/a>. Oil and gas operators provide the state bonds as financial assurance to fund plugging and cleanup of wells if a company goes out of business or abandons a site. The average cost to plug a <em>single<\/em> well is over $100,000, rendering the Oil and Gas Act\u2019s existing maximum \u201cblanket bond\u201d cap of $250,000\u2014which is applied even if a company owns hundreds of wells\u2013wildly inadequate. This inadequate bonding level means that state taxpayers, not oil and gas companies, are left to fund cleanups of orphaned and abandoned wells.<\/p>\n<p>Additionally, HB 133 protects against the growing orphaned and abandoned well problem by providing new authority for the state to block the transfer of oil and gas assets, when a company has a \u201csignificant history of noncompliance with the Oil and Gas Act or its rules\u201d or the transferee seeking to acquire the assets \u201clacks sufficient financial capacity to manage liabilities associated with oil and gas wells or facilities.\u201d<\/p>\n<p><strong>HB 133 would better protect New Mexico taxpayers and safeguard our air, land, and water by:<\/strong><\/p>\n<ul>\n<li>Increasing the cap on blanket bonds for well cleanup and plugging from $250,000 to $10 million,<\/li>\n<li>Increasing civil penalties for violations from $2,500 per day to $10,000 per day, and increase the penalties for major violations from $10,000 per day to $25,000 per day,<\/li>\n<li>Eliminating the $200,000 cap on total, cumulative civil penalties,<\/li>\n<li>Updating administrative fees for the 21<sup>st<\/sup> century and allowing future adjustments for inflation. The Oil Conservation Division would be allowed to apply those fees to transparency and enforcement,<\/li>\n<li>Providing new authority for the state to block the transfer of oil and gas assets when the transferee presents a risk of abandonment.<\/li>\n<\/ul>\n<p><strong>Before HB 133 was heard by committee, a substitute bill was introduced that stripped out critically important setback provisions to protect public health and water. We support amending the substitute bill to re-insert these setbacks:<\/strong><\/p>\n<ul>\n<li>Requiring a minimum 2,250-foot setback of new industrial oil and gas extraction infrastructure from occupied homes, schools, health facilities, correctional facilities, multi-family residential buildings, and community colleges,<\/li>\n<li>Requiring a minimum 660-foot setback of new oil and gas infrastructure from precious water resources such as perennial and intermittent streams, ponds, wetlands, and acequias,<\/li>\n<li>Requiring a minimum 300-foot setback of new oil and gas infrastructure from surface waters not listed above, state parks, state game commission lands, and critical habitat for endangered species,<\/li>\n<li>Providing the state Oil Conservation Division authority to strengthen setbacks based on scientific evidence, and<\/li>\n<li>Allowing the state Oil Conservation Division to designate old wells within setback areas that have been inactive for two years as abandoned and order plugging of the well.<\/li>\n<\/ul>\n<p>The setbacks would not apply to existing oil and gas infrastructure, Tribal allotted lands, or Tribal lands as a function of Native people\u2019s sovereign authority over their own lands.<\/p>\n<p>New Mexico does not have any setback protections for people or the environment, and these protections would mitigate the harm caused by the proximity of industrial-scale oil and gas production facilities to the places where people live, learn, and work.<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fact Sheet: New Mexico Oil and Gas Act Amendments (HB 133)\u00a0 House Bill 133 would amend the Oil and Gas Act to better protect the environment from oil and gas operations, better ensure that oil and gas companies properly clean up and reclaim oil and gas infrastructure, deter violations of the act by increasing civil [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<p>The New Mexico Justice and Reform Act aims to modernize the 1935 Act to reflect the public interests at stake today. Enacted 87 years ago, development of oil and gas resources was the only public interest considered at that time. Today, we know that oil and gas development:<\/p><ul><li>Plays an outsized role in contributing to climate change,<\/li><li>Creates serious public health risks from its air pollutants, and<\/li><li>Disproportionately impacts environmental justice and frontline communities.<\/li><\/ul><p>These public interests are not reflected the antiquated act, and it\u2019s long past time we updated it to take account of <em>all <\/em>interests at stake.<\/p><p><strong><u>The New Mexico Oil and Gas Justice and Reform Act <em>Reforms the Basic Framework<\/em> of the Act to:<\/u><\/strong><\/p><ul><li><strong>Expand the duties and authorities of the Oil Conservation Commission (OCC) and Oil Conservation Division (OCD) to include:<\/strong><ul><li>Protection of the environment,<\/li><li>Protection of public health, and<\/li><li>Fair treatment and meaningful involvement of all the public \u2013 especially communities of color, low-income communities, and tribal and indigenous communities who bear the brunt of oil and gas operations.<\/li><\/ul><\/li><\/ul><ul><li><strong>Expand and diversify the composition of the three member OCC, charged with making statewide rules, to include two members appointed by the legislature to represent:<\/strong><ul><li>Protection of the environment and public health and<\/li><li>The interests of frontline and environmental justice communities.<\/li><\/ul><\/li><\/ul><p><strong><u>The Reform Act Targets Other Provisions that No Longer Reflect Today\u2019s Realities Including:<\/u><\/strong><\/p><ul><li>Removing the cap on \u201cblanket bonds\u201d and ensuring that financial assurance is adequate<ul><li>Across New Mexico, abandoned oil and gas equipment threaten our <a href=\"https:\/\/www.edf.org\/sites\/default\/files\/2021-10\/Orphan%20Well%20FactSheet%20NM.pdf\">air<\/a> and <a href=\"https:\/\/www.scientificamerican.com\/article\/deteriorating-oil-gas-wells-threatening-americas-drinking-water\/\">water<\/a>. Oil and gas operators put up bonds as financial assurance to plug and clean up wells if a company goes out of business or abandons a site. The average cost to plug a well is more than $50,000, but the Act caps financial assurance for \u201cblanket bonds\u201d at $250,000 -- even if a company owns <em>hundreds<\/em> of wells -- leaving New Mexico taxpayers to foot the bill for the rest. Although the cap amount was revisited by the legislature in 2018, it\u2019s already wildly out of step with the real costs of plugging and clean up. The reform bill removes the cap on blanket bonds.<\/li><li>The reform bill requires a \u201cone well\u201d bond for wells at greatest risk \u2013 wells that are inactive or held in \u201ctemporary abandonment\u201d for more than one year.<\/li><li>And the bill makes sure that, in setting bond amounts, OCC can take a range of relevant factors into account, including the proximity of a well to frontline communities.<\/li><\/ul><\/li><\/ul><ul><li><strong>Establishing setbacks to protect frontline communities<\/strong><ul><li>People who live, work, and play close to oil and gas operations are at much greater risk for health impacts. The Act doesn\u2019t give the OCC authority to protect them from oil and gas operations close to homes, businesses, and schools. The reform act allows the OCC to establish \u201csetbacks\u201d to site new wells at a safe distance from frontline communities.<\/li><\/ul><\/li><\/ul><ul><li><strong>Ensuring against conflicts of interest on the OCC<\/strong><ul><li>The Act doesn\u2019t protect against members serving on the OCC from having financial conflicts of interest. Members\u2019 decisions should reflect the public interest, not the interest of their own pocketbooks. The reform bill bars OCC members from being employed by or under contract with oil and gas for one year, and requires disclosure of gross income exceeding $10,000 from oil and gas interests.<\/li><\/ul><\/li><\/ul><ul><li><strong>Expanding eligibility to serve as OCD Director<\/strong><ul><li>The OCD Director position requires a broad skill set including superior management skills, a firm basis in oil and gas policy and regulation, and expertise in oil and gas operations. The Act however unnecessarily limits eligibility to a licensed petroleum engineer or an expert in petroleum engineering. The reform bill expands eligibility to persons with expertise in the regulation of oil and gas and an understanding of the environmental, health, and social impacts of those operations.<\/li><\/ul><\/li><\/ul><ul><li><strong>Establishing an environmental justice advisory council<\/strong><ul><li>A 2021 Environmental Defense Fund study found that over 35,000 New Mexicans live within 1,000 feet of a well regulated under the New Mexico Ozone Precursor Rule. Of those, 19,000 are people of color including over 5,800 Native Americans, and over 5,700 live in poverty. However, the impacts of oil and gas operations on these environmental justice communities are ignored under the Act. The reform bill establishes an advisory council to identify environmental injustice impacts and advise the OCC and OCD how to address those inequities.<\/li><\/ul><\/li><\/ul><ul><li><strong>Eliminating the cap on civil penalties<\/strong><ul><li>The Act caps administrative civil penalties for violations of the Act and rules to $200,000. No other major environmental statute in New Mexico caps civil penalties for ongoing violations, especially violations that result in environmental or public health harm. The cap on penalties is anomaly, and should be removed.<\/li><\/ul><\/li><\/ul>","_et_gb_content_width":"","_uag_custom_page_level_css":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[],"tags":[],"class_list":["post-25148","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Fact Sheet: New Mexico Oil and Gas Act Amendments (HB 133) - Western Environmental Law Center<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/westernlaw.org\/es\/fact-sheet-new-mexico-oil-and-gas-act-amendments-hb-133\/\" \/>\n<meta property=\"og:locale\" content=\"es_MX\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fact Sheet: New Mexico Oil and Gas Act Amendments (HB 133) - 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