New Mexico
New Mexico environmental regulators say majority of Permian Basin operations are violating air quality – Oklahoma Energy Today
New Mexico officials contend that at least 60% of the Permian Basin oil and gas operations they inspected were in violation of EPA air quality standards.
The New Mexico Environment Department announced the results of a six-month inspection initiative done in partnership with the U.S. Environmental Protection Agency. It found 75 of the 124 facilities investigated had emissions of volatile organic compounds (VOCs) and could be subject to monetary penalties and other actions necessary to comply with requirements pursuant to federal Clean Air Act and state Air Quality Control Act.
Suspected criminal violations will be referred to New Mexico’s Environmental Crimes Task Force for further investigation and potential criminal prosecution of companies or individuals.
During this time, EPA and NMED analyzed data from satellites, regulatory reports and other sources to identify specific sites in the Permian Basin prior to conducting on-site inspections. In April 2024, 14 EPA inspectors and five NMED inspectors took part in joint investigations.
“The results of our federal and state oil and gas investigations are cause for alarm, with a meager 40% compliance rate,” Environment Department Cabinet Secretary James Kenney said. “With the impacts of climate change ravaging our state and air quality degrading, we have no choice but to increase sanctions on polluters until we see a commitment to change behavior.”
The on-site investigations took place at multiple companies’ operations in the Permian Basin. These companies include Chevron U.S.A. Inc, Earthstone Energy, Inc, Franklin Mountain Energy, Inc, Kaiser Francis Oil Company, Marathon, Permian Resources, Tap Rock and XTO Energy, Inc. Approximately 112 facilities are located in communities with environmental justice concerns due to exposure to higher levels of ozone pollution.
VOCs contribute to the formation of ozone, which causes health problems for New Mexicans, including asthma, lung infections, bronchitis and cancer. Air quality has degraded to unsafe levels in several New Mexican counties, including Lea and Eddy Counties in the Permian Basin. This could result in federal sanctions by the EPA on these counties that will require NMED to institute more restrictive regulations on New Mexico’s industry.
NMED currently regulates over 55,000 facilities with 30 permitting staff and six enforcement staff which results in an untenable workload. In fact, it would take NMED 9.6 years to inspect all permitted sources in New Mexico which is why the Department is currently seeking to raise permit fees and hire additional staff.
Given NMED’s lack of adequate permit fees to expand air quality staff, the U.S. Department of Justice (DOJ) and the EPA will lead in resolving these enforcement matters. For such cases, at least half of the civil penalties collected in these matters by the DOJ and EPA are paid to the U.S. Treasury as opposed to the New Mexico general fund. In short, if NMED had appropriate resources to take on more cases itself, more money would be going back to the New Mexico legislature for the benefit of New Mexicans.
“Currently, six people are now managing over 114 active enforcement matters which take thousands of hours, so I welcome the resources provided to us by the EPA and DOJ to hold these polluters accountable,” Compliance and Enforcement Section Chief Cindy Hollenberg said.
“As of today, 15% of New Mexico’s Permian Basin oil and gas production is under a federal settlement.”
“NMED has not raised its air quality permit fees in two decades, yet our permitting workload has increased a staggering 2,234 percent,” Director of the Environmental Protection Division Michelle Miano said.
“Our proposal to increase fees paid by the industry is our best chance to help the one in seven New Mexicans who suffer from respiratory ailments to breathe clean air.”
As part of NMED’s efforts to avoid federal sanctions resulting from degrading air quality, the Department has increased its oversight of the oil and gas industry. As a result, NMED has observed compliance rates of around 50%, meaning roughly one out of every two facilities inspected is in violation of federal and state rules. Settlements with the oil and gas industry include the following:
- April 2024 – Ameredev II LLC agreed to pay $24.5 million to settle alleged violations of state air regulations. This is the largest civil penalty collected by the Department with an oil and gas company and the total civil penalty was deposited in the state’s general fund as the DOJ and EPA did not assist in this matter.
- February 2024 – Apache Corporation agreed to pay $4 million in civil penalties and undertake projects expected to cost at least $5.5 million to ensure 422 of its oil and gas well pads in New Mexico and Texas comply with state and federal clean air regulations and offset past illegal emissions. Under the federal/state settlement, the U.S. Treasury received $2 million of the civil penalty and state’s general fund received $2 million.
- December 2023 – Oxy USA, Inc. agreed to pay $1.2 million in civil penalties for operating its facility at major source levels without applying for and obtaining a Title V permit and for exceeding federal standards for oil and gas facilities.
- August 2023 – Mewbourne Oil Company agreed to pay a $5.5 million penalty and to spend at least $4.6 million for projects to ensure 422 of its oil and gas battery pads in New Mexico and Texas comply with state and federal clean air regulations. Under the federal/state settlement, the U.S. Treasury received $2.75 million of the civil penalty and state’s general fund received $2.75 million.
- March 2023 – Matador Production Company agreed to pay $1.15 million in civil penalties and undertake projects expected to cost at least $5.05 million to ensure compliance with both state and federal clean air regulations at all 239 of its New Mexico oil and gas well pads to resolve liability alleged in a civil complaint filed today under the Clean Air Act and state regulation Under the federal/state settlement, the U.S. Treasury received $650,000 of the civil penalty and state’s general fund received $500,000.
The EPA’s inspection reports are available online here: https://www.epa.gov/nm/enforcement-and-compliance-assurance-documents-new-mexico.
Source: press release
New Mexico
14 indicted in alleged Permian Basin crude‑oil theft scheme spanning New Mexico and Texas, prosecutors say
A federal grand jury in Lubbock has indicted 14 people accused of stealing crude oil in eastern New Mexico and hauling it into Texas to resell at cut‑rate prices.
Prosecutors say the scheme targeted the Permian Basin’s vast production network, the oil‑rich region spanning southeastern New Mexico and West Texas that covers more than 86,000 square miles and accounts for the majority of U.S. crude oil production.
All 14 defendants are charged with conspiracy to transport stolen property across state lines, and several also face counts of interstate transportation and receipt, possession, or sale of stolen property, according to the U.S. Attorney’s Office for the Northern District of Texas.
Indictment outlines alleged operation
Returned April 8, the indictment alleges the group stole crude oil in eastern New Mexico, some stored on U.S. government-leased land, and resold it to co‑conspirators at prices below the standard U.S. market benchmark.
Prosecutors say the conspirators transported the stolen oil into Texas for resale at a profit, knowing it was stolen.
Texas, New Mexico defendants identified by prosecutors
Texas defendants are James Darrell Reid, 65, and Randell Wayne Reid, 41, owners of Texas-based Reidco Enterprises and both of Electra – about 25 miles northwest of Wichita Falls and 115 miles from Fort Worth – along with Christopher Frederick Harris, 22, of Seminole, about 80 miles west of Midland.
The remaining 11 defendants are from Lovington, a southeastern New Mexico community of about 11,690 people, roughly 20 miles west of the Texas state line and squarely inside the Permian Basin.
They include:
- Louis George Edgett, 68;
- Brenden Floyd Strickland, 25;
- Sixto Herrera-Estebane, 43;
- Gyardo Gonzalez, 47;
- Jesus Martin Hernandez-Borja, 51;
- Diana Marquez Rojo, 45;
- Jose Luis Rojo, 49;
- Jose Mario Rivas-Mendoza, 37;
- Miguel A. Soto, 41;
- Tavares Montrail Cole, 48; and
- Danny Dale Brown Jr., 42.
Potential penalties outlined by DOJ
According to prosecutors, the defendants face up to five years in prison for conspiracy and up to 10 years per count for interstate transportation, possession, or sale of stolen property.
The investigation was conducted by the Bureau of Land Management, the FBI, the Texas Department of Public Safety’s Criminal Investigation Division, and sheriff’s offices in Lea and Eddy counties in New Mexico.
CBS News Texas will provide updates as additional information becomes available.
New Mexico
Governor establishes Energy Affordability and Grid Reliability Council – 13-member council designed to protect ratepayers, modernize the grid – Office of the Governor – Michelle Lujan Grisham
SANTA FE — Governor Michelle Lujan Grisham today signed an executive order establishing the New Mexico Energy Affordability and Grid Reliability Council to address the rising cost of electricity in a rapidly changing energy landscape.
The Council will convene state agency leaders, utility executives and experts in rural cooperative utilities, tribal energy, consumer advocacy, and energy policy and infrastructure to develop strategies for keeping energy affordable while ensuring the grid can meet the demands of a growing, modernizing New Mexico economy.
“At a time of dramatically rising energy prices, it’s imperative that we do everything we can to protect New Mexico ratepayers while ensuring abundant clean energy supply,” said Governor Lujan Grisham. “The experts I’ve appointed to the New Mexico Energy Affordability and Grid Reliability Council are well-positioned to make smart, insightful recommendations and I look forward to their findings.”
The Council will evaluate and recommend strategies across four interconnected areas:
- Ratepayer protection: Ensuring that large-load growth — including data centers and onshore manufacturing — does not disproportionately increase costs for residential, rural, tribal and small business customers.
- Grid modernization and reliability: Recommending rate designs and financing strategies that enable prudent infrastructure investment while minimizing long-term rate escalation.
- Clean energy progress: Advancing New Mexico’s net-zero goals under the Energy Transition Act by expanding zero-carbon generation and storage while maintaining affordable access.
- Permitting efficiency: Identifying opportunities to streamline and coordinate state and local permitting for electricity infrastructure — accelerating deployment of clean energy projects without compromising environmental review, tribal consultation, or regulatory safeguards.
The Council will deliver a final report — including legislative, regulatory and administrative recommendations — to the Governor and the Legislature by November 1, 2026.
The Council consists of 13 members representing state government, utilities, rural cooperatives, tribal communities and independent experts:
- Erin Taylor, acting secretary, Energy, Minerals and Natural Resources Department
- Rob Black, secretary, Economic Development Department
- Cholla Khoury, chief of staff, Public Regulation Commission
- Lynn Mostoller, executive director, Renewable Energy Transmission Authority
- Sunalei Stewart, deputy commissioner for operations, State Land Office
- Don Tarry, president and CEO, TXNM Energy (PNM)
- Kelly A. Tomblin, president and CEO, El Paso Electric
- Zoe Lees, regional vice president, regulatory policy, Xcel Energy
- Vince Martinez, CEO, New Mexico Rural Electric Cooperative Association
- Javier Bucobo, vice president of markets and regulatory affairs, Avangrid (grid infrastructure expert)
- Joseph Yar, attorney, Velarde & Yar (consumer/ratepayer advocate)
- Sandra Begay Keeto, retired, Sandia National Laboratories; member, Navajo Nation (tribal energy expert)
- Rep. Meredith Dixon, New Mexico House of Representatives, District 20 (energy policy expert)
The Council is administratively attached to the Department of Finance and Administration. Members will serve without compensation, other than per diem and mileage as permitted by law.
The executive order can be viewed here.
ALBUQUERQUE, N.M. – Republican candidate for governor Duke Rodriguez is suing Governor Michelle Lujan Grisham over her executive order that started universal free child care before a new law takes effect.
The governor enacted the program through executive order in November.
Lawmakers passed a universal child care law during the past session, but that law does not take effect until May 20.
Rodriguez says he objects to some of the rules and to how the governor started the program. The suit asks the Second Judicial District Court to prohibit further enforcement of any regulations tied to the program.
“You could understand an outgoing governor trying to do it for political capital, for expediency just to say, I’m first in the nation.” Rodriguez said.
Rodriguez says he is confident he will win and that the rules he is challenging will be struck down.
“We also now have what we call pre emptive eligibility, which means you don’t even have to prove you’re eligible and you’re covered the moment you walk in,” Rodriguez said. “All of those things individually and collectively that have been proposed and changed probably invite fraud, waste and abuse and you know it.”
The governor’s office responds
The governor’s office sent a statement saying the program was properly implemented and that the governor is confident the lawsuit will be rejected.
A spokesperson for the governor sent KOB 4 the following statement:
“This lawsuit makes clear that Mr. Rodriguez has a fundamental misunderstanding how state government works. He states that ECECD did not have the authority to undergo rulemaking regarding universal childcare. They do. He states that ECECD did not have the funding to implement the program when they did their rulemaking. They did. That is why the program was operational in December – before the 2026 Legislative session started. Perhaps more importantly, the lawsuit ignores that the legislature passed SB 241, which codified the program and its future funding into law. The governor is confident that the courts will reject his meritless claims.“
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