NM land chief takes Texas oil company to court
State Land Commissioner Aubrey Dunn is taking a Texas oil and gas company to court for “an egregious trespass in southern New Mexico” over a pipeline under construction in Lea County.
Dunn contacted the Lea County Sheriff’s Office about Salt Creek Midstream, LLC alleging the company “engaged in significant construction activity” on trust lands without permission.
“I cannot and will not stand for companies coming into our state, disregarding the rules and using State Trust Lands for their own profit,” Dunn said in a statement released by the State Land Office.
Companies must file a rightof-way easement application with the State Land Office, and the easement permission must be signed by the commissioner before any construction can begin on state trust lands.
“The New Mexico Land Office has advised Salt Creek of the allegations, which Salt Creek takes very seriously. Upon learning of the allegations, Salt Creek immediately began an investigation, which is ongoing,” according to a company spokesperson.
Houston-based Salt Creek Midstream LLC has more than 350,000 acres in gas dedications and approximately 300,000 acres in crude oil across Lea, Eddy, Culberson, Reeves, Ward, Winkler and Pecos counties within the Delaware Basin which includes New Mexico and Texas according to a company profile.
“We are committed to compliance with all government regulations and laws and our goal is to be a good business neighbor wherever we operate. We hope to work with the State to address this matter to all parties’ satisfaction,” according to a statement from the company.
Salt Creek Midstream, LLC waived its initial arraignment in Lovington Magistrate Court and entered a not-guilty plea.
If found guilty of trespassing on state trust land without a lease, the company could face a fine of $500. Charges accumulate with each day “the offender remains in trespass” according to the State Land Office.
Dunn said he plans to “pursue the matter to the fullest extent of the law.” Lea is New Mexico’s top oil producing county and responsible for more than half of the state’s oil production.
“We are finding that companies are becoming more and more blatant in disregarding New Mexico’s statutes and rules, and, upon discovery, we will actively pursue each offender,” said Dunn.