New Mexico Democrats Propose Tougher Oil & Gas Regulations
Northern New Mexico lawmakers introduced a bill aiming to strengthen oil and gas pollution controls and address abandoned wells. House Bill 133 seeks to:
Increase bonding requirements for well cleanup: From $250,000 to $10 million per company, aimed at covering full remediation costs.
Increase fees on fossil fuel extraction: Including permits, hearings, and violation fines, to deter pollution and generate revenue for environmental initiatives.
Codify stricter gas capture and facility setback rules: Requiring 98% gas capture by 2026 and establishing minimum distances from homes, schools, and waterways.
Empower regulators to deny permits to irresponsible operators: Those with a history of abandoning wells or violating regulations could face permit restrictions.
Industry critics support the bill: They argue it creates a fairer system and holds companies accountable for environmental and community impacts.
Industry groups oppose the bill: They claim it could hinder production and jeopardize state revenue from oil and gas taxes.
The debate reflects a broader tension between economic benefits and environmental concerns in New Mexico's oil and gas industry. The fate of House Bill 133 will be determined during the ongoing legislative session, with significant implications for both sectors.
Key Takeaways:
Democrats propose stricter oil and gas regulations in New Mexico.
Bill targets well cleanup, pollution control, and facility placement.
Environmentalists support the bill, industry groups oppose it.
Legislative outcome will impact industry practices and state revenue.