Senate panel tables ‘produced water’ bill

A bill that sought stricter regulations for water use in the oil and gas industry has been tabled by a key Senate committee, likely ending its chances of moving forward.

Senate Bill 86, sponsored by Sens. Antoinette Sedillo Lopez, D-Albuquerque, and Liz Stefanics, D-Cerrillos, would ban using fresh water for drilling “at depths lower than protected freshwater resource zones.” Operators would instead need to use lower-quality “produced water” or recycled water instead to drill and frack wells.

At Monday’s hearing of the Senate Judiciary Committee, industry groups decried the bill’s provisions to make the act of spilling wastewater or oil illegal.

The state can currently penalize companies for failing to report or clean up a spill. A proposed ban on certain water recycling or storage facilities was also a sticking point for industry groups.

Bill proponents have argued for increased transparency about the quantity and quality of water in New Mexico’s oil fields.

The bill’s provisions would cost the Energy, Minerals and Natural Resources Department $2.3 million annually, according to a fiscal analysis. The state Environment Department could also incur costs for staffing and creating a data portal.