Oil and Gas Act overdue for climate, health update
The New Mexico act, our state’s bedrock oil and gas law, was written in 1935
Over the past century, the New Mexico oil and gas industry has played an important and outsized role in boosting our local economies and maintaining our public services and infrastructure. Today, we know that oil and gas pollution poses public health risks to frontline communities. I believe it is time to modernize the New Mexico Oil and Gas Act to reflect the realities of oil and gas production in 2023 and prioritize our climate and public health.
The New Mexico Oil and Gas Act, our state’s bedrock oil and gas law, was originally written in 1935. Over the past 88 years, a lot has changed, including our knowledge of the health and environmental impacts from industry pollution and advances in technology that allow the industry to extract oil and gas resources more efficiently and effectively.
Sen. Leo Jaramillo, D-Española, has introduced the New Mexico Oil and Gas Justice Reform Act, which would modernize the Oil and Gas Act in several key ways to emphasize public health and safety and protect our communities. This bill will benefit the industry and frontline communities by giving state agencies an enforceable mandate to regulate the breadth of oil and gas activities including reducing gas leaks, allowing companies to maximize production and establishing setbacks to protect the health and safety of those living near operations.
Importantly, Senate Bill 418 democratizes the Oil Conservation Commission by reducing financial conflicts of interest and expanding the number of commissioners to include two members representing protection of the environment and public health and the interests of front-line and environmental justice communities. The 1935 Oil and Gas Act allows individuals who work for the industry to sit on the commission. By eliminating this very real “fox guarding the hen house” oversight, SB 418 levels the playing field and ensures all New Mexicans are getting a fair shake.
In addition, SB 418 would: provide modernized bonding amounts or financial assurance to plug and clean up wells by removing the cap on “blanket bonds”; do away with the cap on civil penalties for industry violations; and expand eligibility requirements for the Oil Conservation Division director. It would also establish an environmental justice advisory council to protect those who bear the brunt of oil and gas pollution, often Native Americans and other communities of color.
As an elected official representing a county with significant oil and gas activity, I understand the important role the industry plays in New Mexico. I also know the oil and gas industry cannot operate by the same laws and principles that have been in place since before World War II. In a state experiencing catastrophic wildfires, recordsetting heat and dwindling water resources, we must bring the Oil and Gas Act into the 21st century.
Approving oil and gas development without regard to location or protection of our air and water was the only public interest considered when the Oil and Gas Act was enacted. Now we know we can reduce, and in some cases prevent, the most harmful impacts of oil and gas development by utilizing best practices. Responsible laws guiding development are key to mitigating the climate crisis, protecting communities from pollution, and ensuring our air and water are clean. It only makes sense we modernize the laws governing the oil and gas industry. I urge the New Mexico Legislature to stand up for all New Mexicans and pass SB 418.