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Oil and gas fighting back as feds, New Mexico increase industry pollution oversight

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Oil and gas fighting back as feds, New Mexico increase industry pollution oversight


Oil and gas companies struggled to adhere to New Mexico’s and the federal government’s recent restrictions on methane emissions, said industry supporters concerned the new rules could stymie energy production and the economic benefit it brings to the state.

An about $3.5 billion infusion of “new money” was recently reported by the state’s Legislative Finance Committee, largely credited to growing oil and gas production in the Permian Basin of southeast New Mexico.

Grant Swartzwelder with OTA Environmental Solutions said during a meeting with oil companies and the Independent Petroleum Association of New Mexico (IPANM) that recent regulations could be difficult for operators to navigate as they produce oil and gas but also remain compliant with state and federal laws.

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More: Top oil and gas bills to watch during New Mexico’s 2024 Legislative Session

New Mexico in 2021 and 2022 passed new regulations via the Oil Conservation Division (OCD) and New Mex Environment Department (NMED) aimed at limiting air pollution from the fossil fuel industry.

The OCD rules outlawed routine flaring, the burning of excess natural gas, while calling on all operators in the state to capture 98 percent of produced gas by 2026.

Meanwhile, NMED added stricter requirements for leak detection, repair and reporting of emissions of volatile organic compounds (VOCs) and other chemicals believed to form ground-level ozone, or smog.

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More: $4.5 billion sale of Callon Petroleum to APA announced as oil surges in Permian Basin

At the same time the Environmental Protection Agency last year enacted rules to increase requirements for the use of low-emission technology at oil and gas facilities around the U.S. and require states to develop air pollution reduction plans for not only newly installed but also existing extraction operations.

And New Mexico Democrat lawmakers proposed multiple bills to increase regulations on the industry, a week ahead of the 2024 Legislative Session. Those proposals sought to increase royalty payments, restrict the use of freshwater in drilling and block oil and gas facilities from areas within a mile of schools.

Swartzwelder said increased state and federal rules were making it a challenge to continue producing fossil fuels in the Permian Basin, arguing the industry was already taking successful actions to address its environmental impacts.

More: Here’s the latest oil and gas drilling rig count in Permian Basin, New Mexico and Texas

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“As you know, New Mexico is trying to be a leader in regulatory actions. It really creates a lot of challenges for operators,” Swarzwelder said. “What’s frustrating about all the regulatory changes, is its really in light of some positive things in the industry. The industry up to this point has done a very good job of limiting its emissions.”

He said a recently enacted “methane tax,” a policy by the EPA to charge operators for methane emissions would affect 65 percent of operators in U.S., mostly small operators, threatening their financial viability.

The EPA announced in last year it will charge $900 per metric ton for methane waste emissions in 2024, rising to $1,200 in 2025 and $1,500 per metric ton in 2026 and after for operators reporting more than 25,000 metric tons of emissions per year.

More: Oil and gas exempt from drilling rules in endangered bird habitat. Is species threatened?

“It really affects the smaller producers,” Swarzwelder said. “There’s a lot of small producers out there. It really puts you in a sensitive situation.”

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President of American Petroleum Institute Mike Sommers said lawmakers should pursue policies that encourage, not restrict, oil and gas producers in the U.S.

He said recent requirements could curb American energy production without providing adequate environmental benefit.

More: Civitas Resources’ $2 billion sale closes, Permian Basin merger wave continues in 2024

Sommers’ comments came during the Institute’s annual “State of the Energy” conference that sees oil companies, political leaders and others convene to discuss global energy market and policy trends.  

He called on government leaders to lease more public land to the industry, speed up permit approvals and walk back policies that tightened environmental requirements.

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“We produce more energy than any country in the world,” Sommers said. “This benefits our economy, our national security and is our insurance in a volatile time. This is our American energy advantage. It didn’t happen overnight, and it can’t be sustained without the right policies from Washington.”

More: $450 million Permian Basin merger announced between Battalion Oil and Fury Resources

New Mexico Gov. Michelle Lujan Grisham, herself an ardent supporter of tougher environmental rules, voiced support for the EPA’s latest regulations during the United Nations Climate Change Conference last month in Dubai.

She touted New Mexico’s rules as laying the groundwork for federal action to address the purported damage oil and gas was causing to the environment.

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“New Mexico embarked on drafting our oil and gas rules at a time when the United States’ climate leadership was lagging. Thanks to President Biden and his administration, we are once again leading,” Lujan Grisham said in as the rules were announced in December.

“We are proud to have laid the foundation for this national rule, which will not only reduce emissions, but spur innovation and economic development across the country.”

Adrian Hedden can be reached at 575-628-5516, achedden@currentargus.com or @AdrianHedden on the social media platform X.





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New Mexico

Isolated storm chances continue for parts of New Mexico this weekend

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Isolated storm chances continue for parts of New Mexico this weekend


Josh’s Friday Night Forecast

Drier air and hotter temperatures have continued to spread across northern New Mexico today. This has brought very fewer thunderstorms to northern and northwestern parts of the state this afternoon. A few storms across northeastern New Mexico have become strong this afternoon, while isolated storms have developed across southern and southeastern New Mexico.

Temperatures will remain just as hot Saturday afternoon. Rain and thunderstorm chances will increase across the eastern half of the state, while much of western, northern, and central New Mexico stays mostly dry.

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High temperatures will cool a few degrees Sunday and Monday as a large area of high pressure remains well north of New Mexico. This will also allow a surge of monsoon moisture to move in from the east and southeast. While low-level moisture will increase across the state, forecast models have trended drier in the mid and upper levels of the atmosphere. Storms are still expected to develop Sunday and Monday afternoon, but coverage may not be as widespread as earlier forecasts suggested. Storms will also begin moving from east to west during the afternoon and evening. This pattern is expected to continue through the middle of next week, with drier air returning in the mid-levels and potentially limiting thunderstorm coverage.



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New Mexico

New gay bar opens in Nob Hill

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New gay bar opens in Nob Hill


ALBUQUERQUE, N.M. – Vers Bar will soon open in Nob Hill, adding a new gay bar to the city as its owners say Albuquerque’s LGBTQ+ community wanted more space.

KOB 4 got a preview before the opening and spoke with owners Lucas Romero and Luke Rogers outside the new bar.

Romero and Rogers said Albuquerque right now has only two gay bars and one gay club, fewer than other cities its size and fewer than the city used to have.

“We put a lot of love and effort into this space and put a lot of love and effort into the community. And I think when you bring those two things together, I think we have something really special for Albuquerque,” Romero said.

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“Coming out of COVID. We realized that there was an opportunity or a need for people in the queer community to have a space, and so we hosted this mixer. We called it friends of Dorothy,” Rogers said.

They said those quarterly meetups at different bars across Albuquerque eventually drew close to 400 people and helped show demand for a permanent space.

“We were like, well, hold on. Is this our proof of concept for possibly a gay bar?” Romero said.

The couple found the former Albuquerque Distilling location on Central early last year and renovated it into a bar and lounge. They also leased the suite next door for a dance floor and event space.

They said social media posts about the project built interest beyond New Mexico, but they created Verse Bar with local customers in mind.

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“To many of us in the gay community, having a gay bar or a strong queer culture is really important.” Rogers said.

Verse Bar will officially open to the public next weekend. Romero and Rogers said they plan a soft opening this weekend to test equipment and make sure staff are ready.



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New Mexico’s ban on liquor ‘minis’ yields mixed results five years later

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New Mexico’s ban on liquor ‘minis’ yields mixed results five years later


POJOAQUE — Five years ago, the wall behind the cash registers at Kokoman Fine Wines & Liquor teemed with an extensive selection of miniature bottles of alcohol.

Though lawmakers banned the sale of so-called minis for off-site consumption under a sweeping liquor reform bill that took effect July 1, 2021, the wall still looks the same.

While Kokoman is complying with the law, small bottles of liquor continue to occupy the wall.

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DWI arrests rise

Lift for local spirits

‘We lost money’

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