Legislators need to refill regulators’ tanks amid oil and gas boom

Oil and gas production has skyrocketed over the past decade, but years of funding cuts under former Gov. Susana Martinez have left New Mexico’s energy and environmental agencies unable to guarantee industry’s operations take place safely and responsibly.

The state’s leaders can chart a new course by getting these agencies the resources they need to keep pace with industry’s growth and protect the health, air and water of New Mexicans across the state. This will mean substantial budget increases in order to get these vital regulators back on their feet.

Since 2011, oil production has climbed 235 percent and the number of new wells drilled has increased 80 percent, yet recent reports make clear just how dire the situation is for the agencies that protect New Mexico’s natural resources and environmental health.

Analysis from the Environmental Integrity Project found the New Mexico Environment Department, responsible for protecting the state’s air and water resources, saw funding fall 27 percent from 2008-18 and lost nearly 10 percent of its staff over that period.

A review from the Groundwater Protection Council revealed New Mexico’s Oil Conservation Division, which oversees oil and gas operations and permitting, experienced a five-fold jump in some permitting applications while contending with staff losses of 40 percent to 60 percent in key areas.

In fact, experts at the Groundwater Protection Council describe the division as being “in a near crisis situation” due to financial and staffing constraints.

A report from New Mexico Wild illustrates that under the Martinez administration, the Oil Conservation Division lost one-quarter of its funding, while its parent agency (Energy, Minerals & Natural Resources Department) lost nearly 30 percent of its funding. Additionally, the Environment Department lost 32 percent of its funding under the Martinez administration.

Without adequate funding and staff, regulators cannot fulfill their mission, and the consequences inevitably fall on everyday New Mexicans and their families.

We know oil and gas operators are emitting unprecedented levels of pollution in parts of the state.

In fact, Eddy, Lea and San Juan counties are at risk of violating federal air quality standards and over 75 percent of children under 5 in these counties live within a mile of an active well site. Getting emissions under control and protecting our children require regulators equipped to do their jobs.

The Lujan Grisham administration has made huge strides to improve these regulatory agencies, including restoring enforcement authority to the Oil Conservation Division and fighting to get both the Environment Department and the Energy, Minerals & Natural Resources Department more funding. However, these agencies find themselves in a deep funding hole after eight years of Martinez-era budget cuts, and more will need to be done to get these agencies back to where they were before Martinez took office in 2011.

For example, according to New Mexico Wild’s report, if the Lujan Grisham administration budget request for the Energy, Minerals and Natural Resources Department is fully funded this year, it would represent an almost 9 percent increase from the Martinez administration (accounting for inflation) but still be almost 17 percent less than the average funding level under the Richardson administration (2003-11).

The same is true for the Environment Department, where the Lujan Grisham administration’s request would represent an approximately 20 percent increase from the Martinez administration but be 18 percent less than the average under the Richardson administration.

Problems like runaway emissions, oil field spills and leaks all undermine the oil and gas industry’s “social license to operate” and its long-term viability in a low-carbon economy.

Having agencies equipped to enforce standards and ensure operators act responsibly is also in the broader industry’s interest.

Investments in these state agencies will benefit all New Mexicans. These investments are critically important as development pressures increase and the state moves to meet its commitment to nationally leading methane rules in 2020.

Jon Goldstein is director of regulatory and legislative a≠airs at Environmental Defense Fund. He previously served as Cabinet secretary of the Energy, Minerals and Natural Resources Department and deputy secretary of the state’s Environment Department.