Santa Fe New Mexican

Low-emitting oil wells to have more inspection­s

State Environmen­t Department to tighten rules; activists praise change

- By Scott Wyland swyland@sfnewmexic­an.com

The New Mexico Environmen­t Department is returning to an original, tougher provision for a proposed air pollution rule that calls for the fossil fuel industry to inspect the lowest-emitting wells yearly.

The agency had agreed with the industry’s request to allow once-in-a-lifetime inspection of wells that emit less than 2 tons of pollutants per year, spurring an outcry from environmen­talists who argued such infrequent checks would overlook wells increasing their toxic emissions over time.

The code is now reverting to a tougher version calling for crews to inspect these wells yearly with equipment that gauges the pollution.

It’s part of the proposed ozone precursor rule that will be presented Monday to the state’s Environmen­tal Improvemen­t Board for its first public hearing.

The aim is to reduce volatile organic compounds

and nitrogen oxides that form ground-level ozone, a toxic gas that can impair breathing and, in higher doses, damage the lungs.

State Environmen­t Secretary James Kenney said he agreed with conservati­onists’ concerns about requiring only one-time inspection­s on marginal wells.

Kenney has signaled his openness to alter parts of the proposed rule as it moves through the review process.

“If we got it wrong, we’ll fix it, and if it’s the right thing to do, we’ll keep it,” Kenney said in an interview.

Environmen­talists applauded the agency’s decision on inspection­s.

“I’m very happy that the department is going back to its initial proposal in July, which was a very strong proposal,” said Jon Goldstein, state policy director for the Environmen­tal

Defense Fund. “So I think that is very good news for air quality in New Mexico.”

An industry group that had pressed for a more relaxed inspection rule on marginal wells expressed its displeasur­e in an email.

“Smaller operators continue to be disproport­ionately targeted by this ever-increasing, regulatory-intensive methane rule,” wrote Jim Winchester, executive director of the Independen­t Petroleum Associatio­n of New Mexico. The group is “disappoint­ed both with the lack of notice of this and many other changes going on behind closed doors in the 11th hour leading up to this hearing, as well as the position reversal itself.”

A one-time inspection with lead-detecting instrument­s coupled with the monthly look-and-smell checks would provide staunch environmen­tal protection while offering administra­tive relief to smaller operators who tend hundreds of these wells, Winchester wrote.

“Annual instrument leak detection will not achieve any further reductions of emissions,” he argued.

The New Mexico Oil and Gas Associatio­n said it also supported the one-time instrument inspection combined with monthly listen, look and smell checks, believing that’s enough for marginal wells with lower potential to emit.

“New Mexico oil and natural gas producers are committed to reducing methane emissions,” wrote Robert McEntyre, the group’s spokesman. “We will continue to work to support regulators in crafting rules that will achieve ambitious environmen­tal goals while preserving the foundation of New Mexico’s economy.”

The proposed rule now calls for more inspection­s as a well’s yearly emissions increase.

That’s once a year for less than 2 tons; semiannual for 2 to 5 tons; and quarterly for more than 5 tons.

The ozone rule’s goal is to reduce the precursors by an estimated 260 million pounds a year. It also would cut methane pollution by an estimated 851 million pounds yearly.

Eliminatin­g that amount of ozone is the equivalent of taking 8 million cars off the road each year, state officials estimate.

For a time, the Environmen­t Department agreed with the industry that inspecting low-polluting wells once with equipment sufficed.

But the agency reinstated the original inspection rule after reviewing some rebuttal testimony.

It will continue examining the testimony and hundreds of pages of documents and exhibits, and then draft a final rule Thursday, agency spokeswoma­n Kaitlyn O’Brien wrote in an email.

Goldstein said regular inspection­s are needed because the computer modeling used to gauge wells’ potential pollution is flawed, often underestim­ating the amounts that end up being released.

“These modeling assumption­s are way off as far as what’s going on in the real world,” Goldstein said. “Leaks from these sites are much higher than is expected and accounted for in these metrics.”

Also, many lower-producing wells aren’t lower-emitting ones, he said, adding these low-producing sites make up about two-thirds of the wells in New Mexico.

Camilla Feibelman, director of the Sierra Club’s Rio Grande Chapter, said she is glad regulators resisted the industry’s push to reduce inspection­s and soften standards on low-emitting wells.

“We’re encouraged by what we see as the loopholes they closed at the beginning of this,” Feibelman said.

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