A Senate committee approves a bill to limit local control over oil and gas development.

Two similar measures stall in Senate committee

A battle over the authority of counties to regulate oil and gas development played out in both the Senate Conservation Committee and on the House floor late Tuesday night, with advocates for less county control winning one major victory.

On a 37-28 vote, the House passed an amended version of House Bill 366, which limits local control and gives the state Oil Conservation Division and Oil Conservation Commission exclusive authority to regulate oil and gas extraction, well siting and processing except on tribal lands. Sponsor Rep. Nate Gentry, R-Albuquerque, said the bill doesn’t take away the county’s authority over noise and some zoning issues, but others disagreed. The bill goes next to the Senate.

The Senate Conservation Committee tabled two bills that sought to limit county authority to regulate oil and gas or penalize those that do.

A frustrated Sen. Bill Sharer, R-Farmington, walked out after moving to table his own SB 184, which would have prohibited counties and municipalities from receiving severance tax bonds for public buildings, road improvements and other projects if local ordinances increased the cost of oil or gas extraction or mining by more than 25 percent. Sharer say all counties benefit from the severance tax funds generated by oil and gas.

“I think some counties are stealing from other counties,” Sharer said before briefly leaving the room, referring to counties with little or no petroleum development benefiting from the oil and gas revenues generated in others.

Sen. Stuart Ingle’s SB 421 sought to give the state total authority to regulate oil and gas, mining and agriculture operations.

Lobbyists for the oil and gas industry, agriculture representatives and some private landowners spoke in favor of the two senate bills. “We’ve seen a proliferation of ordinances in north-central New Mexico — Mora, San Miguel, and Santa Fe counties — that restrict oil and gas development to the point minerals are devalued,” said Steve Henke, president of the New Mexico Oil & Gas Association.

County representatives, conservationists and several residents from around the state spoke against the bills. Santa Fe County Commissioner Liz Stefanics noted the county’s land-use ordinances are carefully thought out, involve a lot of public input and have taken three years or more to complete.

A letter read on behalf of San Miguel County commissioners said it had taken five years to craft and approve an oil and gas ordinance there. The commission was considering a resolution Monday night to oppose all bills that limit county regulatory authority over oil and gas.

Gentry’s HB 366 generated more than two hours of debate on the House floor.

Rep. Candace Ezzell, R-Roswell who owns mineral rights under her ranch, said county ordinances have affected her ability to develop those minerals.

Rep. Bill McCamley, D-Mesilla Park, said the bill “is stripping away the power of local governments to protect people in the way they see fit. We’re saying the state knows best.”

Gentry said his bill was to clarify the authority of the state and provide some regulatory certainty to oil and gas developers, instead of a “mishmash” of county ordinances. “It would not be the case, if this bill becomes law, that county or municipalities would lose their ability to promulgate rules that protect the health, safety and welfare of their citizens.”

But, he said, “we don’t want 33 counties and 150 towns promulgating different rules for siting oil and gas wells.”