SANTA FE, N.M. — An effort to modernize state oversight of a thriving petroleum industry in the nation’s No. 2 state for oil production advanced past its first committee vetting Thursday at the New Mexico Legislature.
New Mexico
Bid to overhaul New Mexico oil and gas regulations clears first hurdle amid litigation
It advanced on 6-5 vote of the lead House committee on natural resources, over the objections of small and moderate sized oil producers — but with the public endorsements of industry heavyweights Occidental Petroleum and EOG Resources.
The initiative would increase financial assurances for well plugging and cleanups, while ratcheting up administrative fees and penalties for regulatory violations. The bill also would give regulators greater authority over applications to transfer ownership of wells that often change hands when oil and natural gas output declines.
Bill cosponsor Rep. Matthew McQueen of Galisteo urged colleagues to rally behind the bill, warning that a downturn in the industry could saddle the state with immense liabilities for orphaned wells.
“If we can’t put appropriate safeguards in place during record (oil) production then we’re never going to have those safeguards in place,” he said. “We’ve had boom industries in New Mexico before. We had uranium mining — they went bust. We’re still dealing with that legacy that was not cleaned up.”
Initial provisions were dropped from the bill that would have established no-drilling buffer zones around schools, residences, surface waters and critical habitats across New Mexico, to the dismay of environmentalists and community advocates who vowed to press legislators to reinstate setback requirements. The State Land Office recently imposed its own buffer around schools.
The Democratic-led Legislature and governor are being sued over alleged failures to meet constitutional provisions for protecting against oil and gas pollution, as fed-up residents living near oil wells and environmental groups turn to the judiciary for relief. A lawsuit filed in May 2023 seeks compliance with a “pollution control clause” of the New Mexico Constitution.
“This bill utterly fails to impose any real restrictions on the oil industry and does nothing to protect frontline communities from the toxic pollution they’re exposed to every single day,” said Gail Evans, an attorney with the Center for Biological Diversity and lead counsel in the lawsuit to plaintiffs including Indigenous Lifeways, Pueblo Action Alliance, Youth United for Climate Crisis Action.
Democratic state Rep. Nathan Small of Las Cruces — the lead House budget negotiator — warned that deleted provisions from the bill “would make it extremely difficult and unlikely for these important fiscal protections to move forward.” He voted to advance the bill toward a second vetting before a possible House floor vote.
Ahtza Chavez, executive director of the Native American environmental and social justice group NM Native Vote, participated in working groups on the bill organized by Gov. Lujan Grisham over the past six months, alongside state oil-field regulators and industry representatives.
She called the elimination of setback requirements “devastating” but pledged support for the amended bill.
“They’ve had 90 years to do better and they have not protected our communities,” said Chavez, an Albuquerque resident who is Diné, tracing her ancestry to the Navajo.
The committee-endorsed bill would increase a common financial assurance to remediate multiple wells from a maximum of $250,000 to $10 million. The cap on daily penalties for regulatory violations would increase from $2,500 to as much as $25,000, with no cumulative limit.
Voting against the bill, Republican state Rep. Larry Scott of Hobbs, said the initiative represents an existential threat to small-scale oil and natural gas producers, echoing concerns raised by several businesses.
“The concern is that, with the stroke of a pen, financial assurances and penalties can put these small operators completely out of business,” said Scott, also a petroleum-industry engineer.
The bill would also expand the state’s regulatory authority over other types of well activity in anticipation of a gradual transition away from fossil fuel production — including geothermal projects that harness underground heat to produce electricity, or emerging underground systems of kinetic energy storage.
NM FAST (New Mexico Federal and State Technology) is now accepting applications for a free space-sector accelerator cohort designed to help New Mexico-based technology companies compete for federal funding through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The cohort targets founders and researchers pursuing grants from NASA, Space Force and related federal agencies, with programming set to launch July 21.
The cohort will admit six to 10 New Mexico companies and run for 10 to 12 weeks, meeting in weekly sessions of approximately one and a half to two hours. Programming covers the full arc of federal commercialization strategy, including space-sector SBIR/STTR opportunities and federal funding pathways, proposal development for technical narratives and commercialization components, federal procurement positioning and agency discovery, capital strategy and follow-on funding options, and transition planning from Phase I to Phase II awards. Participants also receive targeted one-on-one advisory support throughout the program. The cohort is offered at no cost to accepted companies.
SANTA FE, N.M. – Santa Fe County and Edgewood approved a new agreement and ordinance that secures ongoing fire and EMS services for Edgewood residents.
According to a joint announcement from the Town of Edgewood and Santa Fe County on June 19, the two governments negotiated and adopted a new Joint Powers Agreement and ordinance to keep the Santa Fe County Fire Department serving the town.
County and town representatives drafted the agreement together. The town adopted the ordinance unanimously at a special meeting on June 16, putting an end to weeks of uncertainty.
Santa Fe County District 3 Commissioner Camilla Bustamante said, “I believe we are all relieved to know that the people of Edgewood will continue to have the fire and EMS services necessary to protect their homes, their families, and their community. This community deserves nothing less.”
The announcement said the ordinance takes effect five days after final publication. The statement also said no further action or approval is needed to guarantee continued fire suppression, fire prevention, and EMS services for Edgewood residents.
Both governments noted the agreement will continue indefinitely unless either side ends it with five years’ notice.
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