2019 legislative session
Penalties for oil and gas violations revived in Senate Judiciary, pass Senate
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Crude oil storage tanks in San Juan County
The Senate passed a House bill last night on a 32:6 vote dealing with wastewater from oil and gas production, after the Judiciary committee amended it to grant the Oil Conservation Division authority to issue fines and fees. Now, if the House agrees with the amendments and the governor signs it, the OCD will, for the first time since 2009, be able to issue fines for violations of New Mexico’s Oil and Gas Act. The Senate amendments pick up an effort made by sponsors of SB 186, which was sent to Senate Finance and has yet to see a hearing. Initially, HB 546, titled the “Fluid Oil and Gas Waste Act,” sought to address questions around managing the estimated 1 billion barrels of water that emerge with oil through production. Companies had cited concerns over jurisdiction, liability and potential to retain proceeds among the reasons just 8 percent of water that comes out of oil and gas activities was being reused, Jennifer Bradfute, an attorney with Marathon Oil, told House Energy, Environment and Natural Resources committee members when that bill was first heard.