New Mexico lawmakers have been urged to provide more resources to oil and gas regulators in the upcoming legislative session, after the state recently enacted several new requirements aimed at reducing air pollution from fossil fuel operations.
The next session, which is expected to start in January, will run for the first 60 days of the year and will focus on the new policy, compared to the 30-day budget session of 2022.
This means that 2023 could see more bills introduced by lawmakers to change state environmental laws that could affect the oil and gas industry.
State officials pointed to vacancies in regulatory agencies that impede state efforts to enforce policies that have been adopted or that may be proposed in the upcoming session.
After:Desert lizard could be federally protected from oil and gas ‘wrecks’ following lawsuit
Rep. Tara Lujan (D-48) said at an Aug. 26 meeting of the Interim Legislative Committee on Water and Natural Resources that New Mexico’s new regulations are needed to reduce climate change impacts from the fossil fuel production, the work she said should continue as the industry grows.
She said state regulatory agencies may need more resources to keep up with expanding operations.
“The theme here is balance and finding balance between our environment and what’s happening with our climate,” Lujan said.
After:$132 million in Permian Basin oil and gas assets purchased by a Texas company. The region’s growth is accelerating
Sen. Ron Griggs (R-34), who represents parts of southeastern New Mexico in the Permian Basin oilfields, said the industry should have a strong say in any state regulations that might have an impact on operations.
He pointed to an ongoing lawsuit by the New Mexico Independent Petroleum Association, which represents the state’s small operators, as evidence that some industry concerns have been downplayed by state regulators in recent regulations.
“We have to work with the industry,” he told the meeting. “The independent producers aren’t there because they’re chasing us. I would like to see that we all work together so that no one has to chase someone else to make things happen.
After:$25 million sent to New Mexico by Biden administration to clean up abandoned oil and gas wells
This summer, the New Mexico Department of the Environment (NMED) finalized stricter reporting requirements for oil and gas operators across the state, centered in the southeast Permian and northwest San Juan Basin, which sought to reduce releases of air pollutants that may originate at ground level. ozone.
This was intended to restore New Mexico to compliance with federal air quality standards, with the U.S. Environmental Protection Agency set to rule on the Permian Basin’s achievement status of the national quality standard requirement. Ambient Air Quality (NAAQS) of 70 parts per billion (ppb) ozone. on average.
If the region were found to be non-compliant with NAAQS, it would trigger federal requirements fearful of slowing down the licensing process for oil and gas facilities like wells and drilling rigs by adding additional monitoring measures.
After:XTO Energy fined $1.7 million by New Mexico for violating oil and gas wastewater disposal rules
NMED Cabinet Secretary James Kenney said the EPA recently completed aerial surveillance of the Permian Basin oil fields and the results of the survey will determine any new federal requirements and their impact on the industry.
He reported that about 13% of flares where gas is burned surveyed throughout the Permian by the EPA were unlit and leaking air pollutants into the air.
The EPA also reported a leak rate of about 18% of natural gas from storage tanks and other processing equipment, Kenney said.
After:Oil and Gas Jobs in New Mexico and the Permian Basin Expected to Continue to Grow Post-COVID-19
Kenney said NMED “desperately needs” more investment from the Legislative Assembly to ensure compliance with the new regulations.
“It’s not about if and when things change. And the moment things change is that our ozone levels are now at a point that the feds are going to sanction New Mexico at some point,” he said. “We are still seeing significant emissions.
“I hope our rule then starts to limit those emissions, so that we get reductions in both ozone precursors and methane emissions.”
After:Would protecting a rare bird in New Mexico threaten the state’s oil and gas drilling?
The NMED rules followed regulations enacted last year by the Energy, Minerals and Natural Resources Department (EMNRD) to require operators to capture 98% of gas produced by 2026, while prohibiting spills – meaning they would incur fines immediately before remediation and prohibiting routine flaring. , combustion of excess gases.
REMRD has also increased reporting requirements, targeting the gas released as waste.
REMND Cabinet Secretary Sarah Cottrell Propst said better oversight, including funding resources such as staff to enforce new regulations, was needed, especially during a period of industry growth. fossil fuels in New Mexico.
After:Does Ronchetti’s oil and gas pay off an expensive election promise or give power to the New Mexicans?
She said 154 operators across the state had yet to report their emissions to REMD under the new regulations, a problem the agency hoped to address with increased state resources.
New Mexico became the United States’ second-largest crude oil producer last year, behind Texas with which New Mexico shares the Permian Basin – the nation’s most active oilfield.
“The industry is very busy right now in New Mexico,” Propst said. “Our goals of our respective rules are to achieve measurable and sustainable results on methane and natural gas waste emissions, create regulatory certainty for industry, promote technological innovation and ensure that we have adequate compliance mechanisms in place.”
John Smitherman, attorney for the industry trade group, the New Mexico Oil and Gas Association (NMOGA), pointed out that several new regulations have been imposed on oil and gas in recent years, related to emissions, waste water and to endangered species.
He said increased regulations risked hampering operations and thwarting one of the state’s key industries.
According to NMOGA, oil and gas production provides about a third of New Mexico’s budget and millions of dollars to local communities.
“Because of these new regulations, we will lose production, we will lose revenue, we will lose businesses and jobs, and we will lose some of the economic activity that supports our communities,” he said. “How much? How much? That remains to be seen.
“As these rules take effect over the next few years, time will tell how badly they will impact our vital oil and gas sector and the communities that depend on it.”
Adrian Hedden can be reached at 575-628-5516, [email protected] or @AdrianHedden on Twitter.