by Walter Rubel
28-09-05 Gov. Bill Richardson called for tougher laws governing oil and gas
production in New Mexico, saying that higher gas prices would lead to increased
production, and the state must do more to protect both its ground water and the
rights of landowners.
Richardson named Bill Olsen, chief of the Environmental Department’s Ground
Water Quality Bureau, to serve on the Oil Conservation Commission. And, he
expressed his support for rule changes under consideration by that commission,
as well as a landowner protection bill that was introduced by Rep. Andy Nunez,
D-Hatch, in the last session, but not passed.
“When production increases to meet demand, we must remain vigilant in
protecting our precious water resources,” Richardson said.
“I don’t accept the view that protective measures will make high energy prices
even higher,” Richardson added, saying that the high prices are the result of
the industry’s resistance to alternative fuels.
The announcement comes less than one week after Richardson called on the oil
and gas industry to contribute $ 50 mm to his effort to provide relief for New
Mexicans in the form of tax rebates and heating assistance. He said that the
industry has so far rebuffed his proposal, but added that the announced
crackdown was not connected to that decision.
“We’ve had this on the table for at least a month,” said Joanna Prukop,
secretary for Energy Minerals and Natural Resources.
Bob Gallagher, president of the New Mexico Oil and Gas Association, said the
industry supports efforts to protect ground water, and would cooperate with
state officials to that end. Gallagher added that he does not understand the
need for rule changes.
“We need to better understand what has precipitated the need for new
regulations,” he said. “We’re unaware of any events or series of events that
have occurred that would lead someone to believe there is a need for new
regulations.”
The Oil Conservation Division submitted an application earlier this month for
rule changes. A formal hearing on those proposed changes is scheduled in Santa
Fe. The proposed change would create the concept of “good standing” for oil and
gas producers. Those producers not in good standing would be unable to do things
such as register and transfer wells, get drilling permits, transportation
authorization and authority to inject produced water into the ground.
“These moves will hit some members of the industry -- the bad actors -- where it
counts, in their wallet,” Prukop said.
Richardson also called for new regulations governing storage pits and waste
disposal. Prukop said the Oil Conservation Division is in the process of
drafting new rules, and hopes to have them ready for review by the end of the
year.
“We have some areas of the state where pits do not need to be lined, because of
distance to ground water,” Prukop said. “We’re doing away with that. There won’t
be any circumstance in our state, in terms of what we’re proposing, where you
would have an unlined pit.” She said the new regulation would also strengthen
the kinds of liners used and the way those pits are remediated once the drilling
has ended.
Environment Secretary Ron Curry said that under current state laws there is a
“water quality gap,” with different regulations for different industries.
Former State Land Commissioner Bill Humphries said 10 other states have passed
bills giving land owners protection, and that New Mexico should be the 11th.
Richardson said he would throw the support of his office behind the bill next
year to help ensure its passage.
Gallagher said the bill introduced by Nunez was “legally flawed” and that the
oil and gas producers welcomed the opportunity to help work on a new bill.
Richardson also said he would support an increase in the size of the staff
responsible for inspections and enforcement. Right now, New Mexico has just one
inspector per 4,333 wells, according to information provided by the Oil
Conservation Division. Louisiana, by contrast, has one inspector for each 1,043
wells.
Prukop said they have requested six additional inspectors, an attorney and a
hearing officer, at a cost of $ 500,000. The state has already stepped up its
enforcement efforts, Prukop said. Earlier, the Oil Conservation Division
announced more than $ 1 mm in fines to oil producers -- the largest penalties
ever handed down in New Mexico.
“We do want people top know that this kind of action will be happening more in
the future,” Prukop said.
That concerns Sen. Caroll Leavell, R-Jal, who has opposed previous efforts to
toughen regulations on the industry. Leavell said the vast majority of those
efforts took place decades ago. Adding new regulations now could hurt both the
industry and the state, he said.
Major producers are leaving the state, rather than fighting the bureaucratic and
regulatory hurdles erected in New Mexico, Leavell said.
Walter Rubel can be reached at
wrubel@lcsun-news.com .
Source: Alamogordo News