Oil industry group protests new ozone rule
Association leader says New Mexico’s regulation burdensome for operators
An advocacy group for the state’s fossil fuel industry has filed an appeal challenging a newly enacted rule aimed at cutting oil field pollutants that cause toxic ozone.
The Independent Petroleum Association of New Mexico is appealing the ozone precursor rule, which regulators say will reduce nitrogen oxides and volatile organic compounds that form ground-level ozone.
This type of ozone can impair breathing and, at high enough doses, damage the heart and lungs.
In April, the state Environmental Improvement Board adopted the rule to cover eight counties where the pollutants had reached at least 95 percent of the federal ambient air quality standard.
They are Chaves, Doña Ana, Eddy, Lea, Rio Arriba, Sandoval, San Juan and Valencia counties.
The Independent Petroleum Association filed the legal challenge with the state Court of Appeals on Aug. 5, the day the rule went into effect.
In a statement, Jim Winchester, the association’s executive director, said his group backs “fair and balanced” ozone regulation, but contends this rule is too burdensome for New Mexico operators.
“At a time when the public supports responsible domestic production to reduce gasoline prices and a decrease in our dependency on foreign sources of energy that are unquestionably worse for the environment, IPANM strongly feels this is the wrong rule at the wrong time,” Winchester said.
The group feels compelled to appeal this version of the rule, he said, which will require operators to plug still-productive wells and “inflict economic hardship on New Mexicans with little to no gain for the environment.”
The group will submit technical arguments in the
coming month that will identify the specific provisions in the rule to be challenged, Winchester said. The objections are based on concerns the group raised during the three years the state was drafting the rule — concerns that weren’t included in the final version presented to the board, he added.
In an email, Winchester said he couldn’t further discuss the case because of legal considerations while the technical arguments are being crafted.
A common complaint industry representatives raised during hearings was yearly inspections being required on the lowest-emitting wells, rather than a one-time check. Environmentalists argued even marginal wells should be inspected regularly to ensure they don’t become worse polluters.
Many in the industry also opposed a provision to conduct quarterly inspections on wells within 1,000 feet of homes, schools and businesses.
Industry attorneys argued Rio Arriba and Chaves counties should be taken off the regulated list because their pollution levels weren’t gauged by air-monitoring devices within their borders but by systems in adjacent counties.
There was also dissatisfaction with the small business exemption.
Independent operators with 10 or fewer employees and gross revenue of less than $250,000 a year are exempt from some but not all the requirements, said Tannis Fox, an attorney with the Western Environmental Law Center.
After a hearing, the association pushed to have the exemption expanded to cover businesses that employ up to 50 people, Fox said. “In my opinion, they did not put forth sufficient evidence in support.”
The group could request to have a freeze placed on the rule, but it would have to show its challenge is likely to succeed in court and that its members will suffer irreparable harm if the rule remains in effect, Fox said, adding those are high legal hurdles to clear.
The New Mexico Oil & Gas Association, which is not taking part in the appeal, has also voiced objections to the rule, calling it overreaching.
Although the group did not directly express support for Independent Petroleum’s legal challenge, it echoed the same sentiments Tuesday.
Reducing the environmental impact of oil operations comes through new technologies, innovation and investment — not additional government regulation, Oil & Gas Association spokesman Joe Vigil wrote in an email.
“While we are committed to sustainable energy policies, we recognize that additional government regulations will have a negative impact, especially on smaller energy producers,” Vigil wrote. “America needs more domestic production, not more restrictions, for a better economy and our environment.”
A state Environment Department spokesman contends the appeal is challenging a rule forged from a collaborative effort in which industry officials, conservationists, regulators and other members of the public weighed in.
It also comes as the U.S. Environmental Protection Agency prepares to address the state’s deteriorating air quality with more stringent oversight, spokesman Matthew Maez wrote.
“At a time when a majority of the oil and gas industry is stepping up to curb emissions, IPANM and its members are signaling they would like to do less,” Maez wrote.