New Mexico 2024 Regular Session Status: In Committee 3 D cosponsors

HB 133 — OIL & GAS ACT CHANGES

Last action — action postponed indefinitely

Track this bill free

No card. One bill, free forever — alerts when it moves.

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2024 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

345 added · 399 removed

Plain-language change summary

The latest version of Bill HB 133 introduces significant changes to the financial assurance requirements for well-plugging. It raises the amount for a blanket plugging financial assurance from a maximum of $250,000 to $10 million, regardless of operator size or risk. This change is important because it aims to ensure that enough financial resources are available to safely plug abandoned wells, which reduces environmental hazards and protects public safety.

→
Previous
Latest
HOUSE JUDICIARY COMMITTEE SUBSTITUTE FOR HOUSE ENERGY, ENVIRONMENT AND NATURAL RESOURCES COMMITTEE SUBSTITUTE FOR HOUSE BILL 133 56TH LEGISLATURE -STATEOFNEWMEXICO- SECOND SESSION , 2024 4 6 8 10 AN ACT RELATING TO THE ENVIRONMENT;
HOUSE ENERGY, ENVIRONMENT AND NATURAL RESOURCES COMMITTEE SUBSTITUTE FOR HOUSE BILL 133 56TH LEGISLATURE -STATEOFNEWMEXICO- SECOND SESSION , 2024 4 6 8 10 AN ACT RELATING TO THE ENVIRONMENT;
ENUMERATION OF POWERS.-- .227785.1 HJC/HENRC/HB 133 A.
ENUMERATION OF POWERS.-- .227498.2 HENRC/HB 133 A.
u [ (1) to require dry or abandoned wells to be .227785.1 - 2 - HJC/HENRC/HB 133 plugged in a way so as to confine the crude petroleum oil, natural gas or water in the strata in which it is found and to prevent it from escaping into other strata;
u [ (1) to require dry or abandoned wells to be .227498.2 - 2 - HENRC/HB 133 plugged in a way so as to confine the crude petroleum oil, natural gas or water in the strata in which it is found and to prevent it from escaping into other strata;
.227785.1 - 3 - HJC/HENRC/HB 133 (8) to identify the ownership of oil or gas producing leases, properties, wells, tanks, refineries, pipelines, plants, structures and all transportation equipment and facilities;
.227498.2 - 3 - HENRC/HB 133 (8) to identify the ownership of oil or gas producing leases, properties, wells, tanks, refineries, pipelines, plants, structures and all transportation equipment and facilities;
d r e 22 (15) to regulate the disposition, handling, c e s k 23 transport, storage, recycling, treatment and disposal of e a n b 24 produced water during, or for reuse in, the exploration, u [ drilling, production, treatment or refinement of oil or gas, .227785.1 - 4 - HJC/HENRC/HB 133 including disposal by injection pursuant to authority delegated under the federal Safe Drinking Water Act, in a manner that protects public health, the environment and fresh water resources;
d r e 22 (15) to regulate the disposition, handling, c e s k 23 transport, storage, recycling, treatment and disposal of e a n b 24 produced water during, or for reuse in, the exploration, u [ drilling, production, treatment or refinement of oil or gas, .227498.2 - 4 - HENRC/HB 133 including disposal by injection pursuant to authority delegated under the federal Safe Drinking Water Act, in a manner that protects public health, the environment and fresh water resources;
e a n b 24 (19) to make well price category u [ determinations pursuant to the provisions of the federal .227785.1 - 5 - HJC/HENRC/HB 133 Natural Gas Policy Act of 1978 or any successor act and, by regulation, to adopt fees for such determinations, which fees shall not exceed twenty-five dollars ($25.00) per filing.
e a n b 24 (19) to make well price category u [ determinations pursuant to the provisions of the federal .227498.2 - 5 - HENRC/HB 133 Natural Gas Policy Act of 1978 or any successor act and, by regulation, to adopt fees for such determinations, which fees shall not exceed twenty-five dollars ($25.00) per filing.
e a n b 24 (a) the transferor, the transferee or an u [ entity that owns more than a twenty-five percent interest in a .227785.1 - 6 - HJC/HENRC/HB 133 transferor or transferee has a significant history of noncompliance with the Oil and Gas Act or rules adopted pursuant to that act, including multiple notices of violations or spills or releases that are not in the process of being corrected or addressed;
e a n b 24 (a) the transferor, the transferee or an u [ entity that owns more than a twenty-five percent interest in a .227498.2 - 6 - HENRC/HB 133 transferor or transferee has a significant history of noncompliance with the Oil and Gas Act or rules adopted pursuant to that act, including multiple notices of violations or spills or releases that are not in the process of being corrected or addressed;
Each person, firm, corporation or association e a n b 24 who operates [any] an oil, gas or service well within the state u [ shall, as a condition precedent to drilling or producing the .227785.1 - 7 - HJC/HENRC/HB 133 well, furnish financial assurance in the form of an irrevocable letter of credit, [or] a cash or surety bond, a well plugging risk pool fee or a [well-specific] plugging insurance policy pursuant to the provisions of this section to the [oil conservation] division [of the energy, minerals and natural resources department] running to the benefit of the state and conditioned that the covered well be plugged and abandoned in [compliance with the rules of the oil conservation] accordance with division rules.
Each person, firm, corporation or association e a n b 24 who operates [any] an oil, gas or service well within the state u [ shall, as a condition precedent to drilling or producing the .227498.2 - 7 - HENRC/HB 133 well, furnish financial assurance in the form of an irrevocable letter of credit, [or] a cash or surety bond, a well plugging risk pool fee or a [well-specific] plugging insurance policy pursuant to the provisions of this section to the [oil conservation] division [of the energy, minerals and natural resources department] running to the benefit of the state and conditioned that the covered well be plugged and abandoned in [compliance with the rules of the oil conservation] accordance with division rules.
Such categories shall include:
Such categories shall include a blanket plugging financial assurance [which shall be set by rule] tiered to reflect operator size and relative risk in an amount not to exceed [two hundred fifty thousand dollars ($250,000), a blanket plugging financial assurance for temporarily abandoned status wells, which shall be set by rule at amounts greater e t 17 than fifty thousand dollars ($50,000) and] ten million dollars w l n d 18 ($10,000,000), a well plugging risk pool fee or a one-well = = 19 plugging financial assurance in amounts determined sufficient a l i a e r 20 to reasonably pay the cost of plugging the well or wells a t m m 21 covered by the financial assurance.
[a blanket plugging financial assurance, which shall be set by rule in an amount not to exceed two hundred fifty thousand dollars ($250,000), a blanket plugging financial assurance for temporarily abandoned status wells, which shall be set by rule at amounts greater than fifty thousand dollars ($50,000), and e t 17 one-well plugging financial assurance in amounts determined w l n d 18 sufficient to reasonably pay the cost of plugging the wells = = 19 covered by the financial assurance] a l i a e r 20 (1) blanket plugging financial assurance for a t m m 21 an operator's active wells in an amount not to exceed:
In establishing categories d r e 22 of financial assurance, the [oil conservation] division shall c e s k 23 consider the depth of the well involved, the length of time e a n b 24 since the well was produced, the cost of plugging similar wells u [ and [such] other factors [as] the [oil conservation] division .227498.2 - 8 - HENRC/HB 133 deems relevant, such as operator size and relative risk.
d r e 22 (a) two hundred fifty thousand dollars c e s k 23 ($250,000) for an operator with fewer than fifty wells and e a n b 24 total oil and gas production of fewer than one hundred thousand u [ barrels of oil equivalent per year;
The [oil conservation] division shall require a one-well financial assurance on any well that has been held in a temporarily abandoned status for more than two years or, at the election of the operator, may allow an operator to increase its blanket plugging financial assurance to cover wells held in temporarily abandoned status.
.227785.1 - 8 - HJC/HENRC/HB 133 (b) three hundred fifty thousand dollars ($350,000) for an operator not covered by Subparagraph (a) of this paragraph with fewer than one hundred wells and total oil and gas production of fewer than two hundred thousand barrels of oil equivalent per year;
All financial assurance shall remain in force until released by the [oil conservation] division.
(c) five hundred thousand dollars ($500,000) for an operator not covered by Subparagraph (a) or (b) of this paragraph with fewer than one hundred fifty wells and total oil and gas production of fewer than five hundred thousand barrels of oil equivalent per year;
The [oil conservation] division shall release financial assurance when [it] the division is satisfied that the conditions of the financial assurance have been fully performed.
(d) seven hundred fifty thousand dollars ($750,000) for an operator not covered by Subparagraph (a), (b) or (c) of this paragraph with fewer than three hundred wells or total oil and gas production of fewer than seven hundred fifty thousand barrels of oil equivalent per year;
(e) five million dollars ($5,000,000) e t 17 for an operator with between three hundred and five hundred w l n d 18 wells or total oil and gas production of fewer than one million = = 19 two hundred fifty thousand barrels of oil equivalent per year;
a l i a e r 20 or a t m m 21 (f) ten million dollars ($10,000,000) d r e 22 for an operator with greater than five hundred wells and total c e s k 23 oil and gas production of greater than one million two hundred e a n b 24 fifty thousand barrels of oil equivalent per year;
u [ (2) a well plugging risk pool fee;
or .227785.1 - 9 - HJC/HENRC/HB 133 (3) a one-well plugging financial assurance in an amount determined sufficient to reasonably pay the cost of plugging the well or wells covered by the financial assurance.
The division may determine blanket plugging financial assurance requirements for an operator based on well count and oil and gas production from wholly owned subsidiaries of the same corporate parent.
The division may assess a non-refundable monthly well plugging risk pool fee on a per well basis on a subset of an operator's wells not to exceed five hundred dollars ($500) per well to offset bonding obligations.
C.
A well plugging risk pool fee collected by the division shall be deposited in the e t 17 oil and gas reclamation fund.
In establishing categories of financial assurance, the [oil conservation] division shall consider the depth of the well involved, the length of time since the well was produced, the cost of plugging similar wells and [such] other factors [as] the [oil conservation] division deems relevant, such as operator size and relative risk.
w l n d 18 [B.] C.
The [oil conservation] division shall require a one-well financial assurance on any well that has been held in a temporarily abandoned status for more than two years or, at the election of e t 17 the operator, may allow an operator to increase its blanket w l n d 18 plugging financial assurance to cover wells held in temporarily = = 19 abandoned status.
If any of the requirements of the Oil and = = 19 Gas Act or the rules promulgated pursuant to that act have not a l i a e r 20 been complied with, the [oil conservation] division, after a t m m 21 notice and hearing, may order any well plugged and abandoned by d r e 22 the operator or surety or both in accordance with division c e s k 23 rules.
All financial assurance shall remain in a l i a e r 20 force until released by the [oil conservation] division.
If the order is not complied with in the time period e a n b 24 set out in the order, the financial assurance shall be u [ forfeited.
The a t m m 21 [oil conservation] division shall release financial assurance d r e 22 when [it] the division is satisfied that the conditions of the c e s k 23 financial assurance have been fully performed.
.227498.2 - 9 - HENRC/HB 133 [C.] D.
e a n b 24 D.
When any financial assurance is forfeited pursuant to the provisions of the Oil and Gas Act or rules promulgated pursuant to that act, the director of the [oil conservation] division shall [give notice to the attorney general, who shall] collect the forfeiture without delay.
The division may assess a non-refundable monthly u [ well plugging risk pool fee on a per well basis on a subset of .227785.1 - 10 - HJC/HENRC/HB 133 an operator's wells not to exceed five hundred dollars ($500) per well to offset bonding obligations.
[D.] E.
A well plugging risk pool fee collected by the division shall be deposited in the oil and gas reclamation fund.
All forfeitures shall be deposited in the state treasury in the oil and gas reclamation fund.
[B.] E.
[E.] F.
If any of the requirements of the Oil and Gas Act or the rules promulgated pursuant to that act have not been complied with, the [oil conservation] division, after notice and hearing, may order any well plugged and abandoned by the operator or surety or both in accordance with division rules.
When the financial assurance proves insufficient to cover the cost of plugging oil and gas wells on land other than federal land and funds must be expended from the oil and gas reclamation fund to meet the additional expenses, the [oil conservation] division is authorized to bring suit against the operator in the district court of the county in which the well is located for indemnification for all costs incurred by the [oil conservation] division in plugging the well.
If the order is not complied with in the time period set out in the order, the financial assurance shall be forfeited.
All funds collected pursuant to a judgment in a suit e t 17 for indemnification brought under the provisions of this w l n d 18 section shall be deposited in the oil and gas reclamation fund.
[C.] F.
= = 19 [F.] G.
When any financial assurance is forfeited pursuant to the provisions of the Oil and Gas Act or rules promulgated pursuant to that act, the director of the [oil conservation] division shall [give notice to the attorney e t 17 general, who shall] collect the forfeiture without delay.
An operator required to file financial a l i a e r 20 assurance for a well pursuant to this section is considered to a t m m 21 have met that requirement if the operator obtains a plugging d r e 22 insurance policy that includes the specific well and that:
w l n d 18 [D.] G.
c e s k 23 (1) is approved by the office of e a n b 24 superintendent of insurance;
All forfeitures shall be deposited in the = = 19 state treasury in the oil and gas reclamation fund.
u [ (2) names the state of New Mexico as owner of .227498.2 - 10 - HENRC/HB 133 the policy and contingent beneficiary;
a l i a e r 20 [E.] H.
When the financial assurance proves a t m m 21 insufficient to cover the cost of plugging oil and gas wells on d r e 22 land other than federal land and funds must be expended from c e s k 23 the oil and gas reclamation fund to meet the additional e a n b 24 expenses, the [oil conservation] division is authorized to u [ bring suit against the operator in the district court of the .227785.1 - 11 - HJC/HENRC/HB 133 county in which the well is located for indemnification for all costs incurred by the [oil conservation] division in plugging the well.
All funds collected pursuant to a judgment in a suit for indemnification brought under the provisions of this section shall be deposited in the oil and gas reclamation fund.
[F.] I.
An operator required to file financial assurance for a well pursuant to this section is considered to have met that requirement if the operator obtains a plugging insurance policy that includes the specific well and that:
(1) is approved by the office of superintendent of insurance;
Show all 121 changed rows (81 more)
Previous
Latest
(2) names the state of New Mexico as owner of the policy and contingent beneficiary;
(4) is fully prepaid and cannot be canceled or e t 17 surrendered;
(4) is fully prepaid and cannot be canceled or surrendered;
w l n d 18 (5) provides that the policy continues in = = 19 effect until the specified wellbore has been plugged;
(5) provides that the policy continues in effect until the specified wellbore has been plugged;
a l i a e r 20 (6) provides that benefits will be paid when, a t m m 21 but not before, the specified wellbore has been plugged in d r e 22 accordance with rules of the [oil conservation] division in c e s k 23 effect at the time of plugging;
(6) provides that benefits will be paid when, but not before, the specified wellbore has been plugged in accordance with rules of the [oil conservation] division in effect at the time of plugging;
and e a n b 24 (7) provides benefits that are not less than u [ an amount equal to the one-well financial assurance required by .227785.1 - 12 - HJC/HENRC/HB 133 [oil conservation] division rules.
and (7) provides benefits that are not less than an amount equal to the one-well financial assurance required by [oil conservation] division rules.
[G.] J.
[G.] H.
If, subsequent to an operator obtaining an insurance policy as provided in this section, the one-well financial assurance requirement applicable to the operator's well is increased, either because the well is deepened or [the rules of the oil conservation] division rules are amended, the operator is considered to have met the revised requirement if:
If, subsequent to an operator obtaining an insurance policy as provided in this section, the one-well e t 17 financial assurance requirement applicable to the operator's w l n d 18 well is increased, either because the well is deepened or [the = = 19 rules of the oil conservation] division rules are amended, the a l i a e r 20 operator is considered to have met the revised requirement if:
(1) the existing policy benefit equals or exceeds the revised requirement;
a t m m 21 (1) the existing policy benefit equals or d r e 22 exceeds the revised requirement;
(2) the operator obtains an amendment increasing the policy benefit by the amount of the increase in the applicable financial assurance requirement;
c e s k 23 (2) the operator obtains an amendment e a n b 24 increasing the policy benefit by the amount of the increase in u [ the applicable financial assurance requirement;
or (3) the operator obtains financial assurance equal to the amount, if any, by which the revised requirement exceeds the policy benefit." SECTION 3.
or .227498.2 - 11 - HENRC/HB 133 (3) the operator obtains financial assurance equal to the amount, if any, by which the revised requirement exceeds the policy benefit." SECTION 3.
Section 70-2-31 NMSA 1978 (being Laws 1981, e t 17 Chapter 362, Section 1, as amended) is amended to read:
Section 70-2-31 NMSA 1978 (being Laws 1981, Chapter 362, Section 1, as amended) is amended to read:
w l n d 18 "70-2-31.
"70-2-31.
VIOLATIONS OF THE OIL AND GAS ACT--PENALTIES.-- = = 19 A.
VIOLATIONS OF THE OIL AND GAS ACT--PENALTIES.-- A.
Whenever the division determines that a person a l i a e r 20 violated or is violating the Oil and Gas Act or any provision a t m m 21 of any rule, order, permit or authorization issued pursuant to d r e 22 that act, the division may seek compliance and civil penalties c e s k 23 by:
Whenever the division determines that a person violated or is violating the Oil and Gas Act or any provision of any rule, order, permit or authorization issued pursuant to that act, the division may seek compliance and civil penalties by:
e a n b 24 (1) issuing a notice of violation;
(1) issuing a notice of violation;
u [ (2) commencing a civil action in district .227785.1 - 13 - HJC/HENRC/HB 133 court for appropriate relief, including injunctive relief;
(2) commencing a civil action in district court for appropriate relief, including injunctive relief;
or (3) issuing a temporary cessation order if the division determines that the violation is causing or will cause an imminent danger to public health or safety or a significant imminent environmental harm.
or (3) issuing a temporary cessation order if the division determines that the violation is causing or will cause e t 17 an imminent danger to public health or safety or a significant w l n d 18 imminent environmental harm.
The cessation order will remain in effect until the earlier of when the violation is abated or thirty days unless a hearing is held before the division and a new order is issued.
The cessation order will remain = = 19 in effect until the earlier of when the violation is abated or a l i a e r 20 thirty days unless a hearing is held before the division and a a t m m 21 new order is issued.
B.
d r e 22 B.
A notice of violation issued pursuant to Paragraph (1) of Subsection A of this section shall:
A notice of violation issued pursuant to c e s k 23 Paragraph (1) of Subsection A of this section shall:
(1) state with reasonable specificity the nature of the violation;
e a n b 24 (1) state with reasonable specificity the u [ nature of the violation;
[shall] (2) require compliance immediately or within a specified time period;
[shall] .227498.2 - 12 - HENRC/HB 133 (2) require compliance immediately or within a specified time period;
e t 17 and [shall] w l n d 18 (4) provide notice of potential sanctions, = = 19 including assessing a penalty, suspending, canceling or a l i a e r 20 terminating a permit or authorization, shutting in a well and a t m m 21 plugging and abandonment of a well and forfeiting financial d r e 22 assurance pursuant to Section 70-2-14 NMSA 1978.
and [shall] (4) provide notice of potential sanctions, including assessing a penalty, suspending, canceling or terminating a permit or authorization, shutting in a well and plugging and abandonment of a well and forfeiting financial assurance pursuant to Section 70-2-14 NMSA 1978.
c e s k 23 C.
C.
If the notice of violation is not resolved e a n b 24 informally within thirty days after service of the notice, the u [ division shall hold a hearing and determine whether the .227785.1 - 14 - HJC/HENRC/HB 133 violation should be upheld and whether any sanctions, including civil penalties, shall be assessed.
If the notice of violation is not resolved informally within thirty days after service of the notice, the division shall hold a hearing and determine whether the violation should be upheld and whether any sanctions, including civil penalties, shall be assessed.
In assessing a penalty authorized by this section, the division shall take into account the seriousness of the violation, any good faith efforts to comply with the applicable requirements, any history of noncompliance under the Oil and Gas Act and other relevant factors.
In assessing a penalty authorized by this section, the division shall take into e t 17 account the seriousness of the violation, any good faith w l n d 18 efforts to comply with the applicable requirements, any history = = 19 of noncompliance under the Oil and Gas Act and other relevant a l i a e r 20 factors.
When a decision is rendered by the division after a hearing, any party of record adversely affected shall have the right to have the matter heard de novo before the commission pursuant to Section 70-2-13 NMSA 1978.
When a decision is rendered by the division after a a t m m 21 hearing, any party of record adversely affected shall have the d r e 22 right to have the matter heard de novo before the commission c e s k 23 pursuant to Section 70-2-13 NMSA 1978.
D.
e a n b 24 D.
Any civil penalty assessed by a court or by the division or commission pursuant to this section may not exceed [two thousand five hundred dollars ($2,500)] ten thousand dollars ($10,000) per day of noncompliance for each violation unless the violation presents a risk either to the health or safety of the public or of causing significant environmental e t 17 harm, or unless the noncompliance continues beyond a time w l n d 18 specified in the notice of violation or order issued by the = = 19 division, commission or court, whereupon the civil penalty may a l i a e r 20 not exceed [ten thousand dollars ($10,000)] twenty-five a t m m 21 thousand dollars ($25,000) per day of noncompliance for each d r e 22 violation.
Any civil penalty assessed by a court or by the u [ division or commission pursuant to this section may not exceed .227498.2 - 13 - HENRC/HB 133 [two thousand five hundred dollars ($2,500)] ten thousand dollars ($10,000) per day of noncompliance for each violation unless the violation presents a risk either to the health or safety of the public or of causing significant environmental harm, or unless the noncompliance continues beyond a time specified in the notice of violation or order issued by the division, commission or court, whereupon the civil penalty may not exceed [ten thousand dollars ($10,000)] twenty-five thousand dollars ($25,000) per day of noncompliance for each violation.
No penalty assessed by the division or commission c e s k 23 after a hearing may exceed [two hundred thousand dollars e a n b 24 ($200,000)] three million six hundred fifty thousand dollars u [ ($3,650,000);
[No penalty assessed by the division or commission after a hearing may exceed two hundred thousand dollars ($200,000);
provided that such limitation does not apply to .227785.1 - 15 - HJC/HENRC/HB 133 penalties assessed by a court.
provided that such limitation does not apply to penalties assessed by a court.] E.
E.
The commission shall make rules, pursuant to Section 70-2-12.2 NMSA 1978, providing procedures for the issuance of notices of violations, the assessment of penalties e t 17 and the conduct of informal proceedings and hearings pursuant w l n d 18 to this section.
The commission shall make rules, pursuant to Section 70-2-12.2 NMSA 1978, providing procedures for the issuance of notices of violations, the assessment of penalties and the conduct of informal proceedings and hearings pursuant to this section.
= = 19 F.
F.
It is unlawful, subject to a criminal penalty of a l i a e r 20 a fine of not more than five thousand dollars ($5,000) or a t m m 21 imprisonment for a term not exceeding three years or both such d r e 22 fine and imprisonment, for any person to knowingly and c e s k 23 willfully:
It is unlawful, subject to a criminal penalty of a fine of not more than five thousand dollars ($5,000) or imprisonment for a term not exceeding three years or both such fine and imprisonment, for any person to knowingly and willfully:
e a n b 24 (1) violate any provision of the Oil and Gas u [ Act or any rule, regulation or order of the commission or the .227498.2 - 14 - HENRC/HB 133 division issued pursuant to that act;
(1) violate any provision of the Oil and Gas Act or any rule, regulation or order of the commission or the division issued pursuant to that act;
or (2) do any of the following for the purpose of evading or violating the Oil and Gas Act or any rule, regulation or order of the commission or the division issued pursuant to that act:
or (2) do any of the following for the purpose of evading or violating the Oil and Gas Act or any rule, e t 17 regulation or order of the commission or the division issued w l n d 18 pursuant to that act:
(a) make any false entry or statement in a report required by the Oil and Gas Act or by any rule, regulation or order of the commission or division issued pursuant to that act;
= = 19 (a) make any false entry or statement in a l i a e r 20 a report required by the Oil and Gas Act or by any rule, a t m m 21 regulation or order of the commission or division issued d r e 22 pursuant to that act;
(b) make or cause to be made any false entry in any record, account or memorandum required by the Oil and Gas Act or by any rule, regulation or order of the commission or division issued pursuant to that act;
c e s k 23 (b) make or cause to be made any false e a n b 24 entry in any record, account or memorandum required by the Oil u [ and Gas Act or by any rule, regulation or order of the .227785.1 - 16 - HJC/HENRC/HB 133 commission or division issued pursuant to that act;
or (d) remove from this state or destroy, mutilate, alter or falsify any such record, account or memorandum.
or e t 17 (d) remove from this state or destroy, w l n d 18 mutilate, alter or falsify any such record, account or = = 19 memorandum.
G.
a l i a e r 20 G.
For the purposes of Subsection F of this section, each day of violation shall constitute a separate offense.
For the purposes of Subsection F of this a t m m 21 section, each day of violation shall constitute a separate d r e 22 offense.
H.
c e s k 23 H.
Any person who knowingly and willfully procures, counsels, aids or abets the commission of any act described in Subsection A or F of this section shall be subject to the same penalties as are prescribed in Subsection D or F of this section." SECTION 4.
Any person who knowingly and willfully procures, e a n b 24 counsels, aids or abets the commission of any act described in u [ Subsection A or F of this section shall be subject to the same .227498.2 - 15 - HENRC/HB 133 penalties as are prescribed in Subsection D or F of this section." SECTION 4.
Section 70-2-39 NMSA 1978 (being Laws 2019, e t 17 Chapter 260, Section 1) is amended to read:
Section 70-2-39 NMSA 1978 (being Laws 2019, Chapter 260, Section 1) is amended to read:
w l n d 18 "70-2-39.
"70-2-39.
FEES--[APPROPRIATION] FEE ADJUSTMENTS--OIL = = 19 CONSERVATION DIVISION SYSTEMS AND HEARINGS FUND CREATED.-- a l i a e r 20 A.
FEES--[APPROPRIATION] FEE ADJUSTMENTS--OIL CONSERVATION DIVISION SYSTEMS AND HEARINGS FUND CREATED.-- A.
Beginning January 1, 2027 and on January 1 of a t m m 21 each successive year, the fees provided by this section may be d r e 22 adjusted for inflation as provided in Subsection B of this c e s k 23 section.
Beginning January 1, 2027 and on January 1 of each successive year, the fees provided by this section may be adjusted for inflation as provided in Subsection B of this section.
The following fees are required to be paid to the e a n b 24 [oil conservation] division [of the energy, minerals and u [ natural resources department] with each application for:
The following fees are required to be paid to the [oil conservation] division [of the energy, minerals and natural resources department] with each application for:
.227785.1 - 17 - HJC/HENRC/HB 133 (1) [with each application for] a non-federal and non-Indian permit to drill, deepen, plug back or reenter a well, the applicant shall submit to the division a nonrefundable fee of [five hundred dollars ($500)] one thousand five hundred dollars ($1,500);
(1) [with each application for] a non-federal and non-Indian permit to drill, deepen, plug back or reenter a well, the applicant shall submit to the division a nonrefundable fee of [five hundred dollars ($500)] one thousand e t 17 five hundred dollars ($1,500);
(2) [with each individual application for] administrative approval of a non-standard location, downhole commingle, surface commingle, off-lease measurement, release notification and corrective action, change of operator, application for modification to surface waste management facility, request for the creation of a new pool, proposed alternative method permit or closure plan application or authorization to move produced water, the applicant shall submit to the division a nonrefundable fee of [one hundred fifty dollars ($150)] four hundred fifty dollars ($450);
w l n d 18 (2) [with each individual application for] = = 19 administrative approval of a non-standard location, downhole a l i a e r 20 commingle, surface commingle, off-lease measurement, release a t m m 21 notification and corrective action, change of operator, d r e 22 application for modification to surface waste management c e s k 23 facility, request for the creation of a new pool, proposed e a n b 24 alternative method permit or closure plan application or u [ authorization to move produced water, the applicant shall .227498.2 - 16 - HENRC/HB 133 submit to the division a nonrefundable fee of [one hundred fifty dollars ($150)] four hundred fifty dollars ($450);
(3) [with each application for] a fluid e t 17 injection well permit, the applicant shall submit to the w l n d 18 division a nonrefundable fee of [five hundred dollars ($500)] = = 19 one thousand five hundred dollars ($1,500) per well;
(3) [with each application for] a fluid injection well permit, the applicant shall submit to the division a nonrefundable fee of [five hundred dollars ($500)] one thousand five hundred dollars ($1,500) per well;
a l i a e r 20 (4) [with each application for] a permit for a a t m m 21 commercial surface waste management facility, landfill or d r e 22 landfarm, the applicant shall submit to the division a c e s k 23 nonrefundable fee of ten thousand dollars ($10,000) per e a n b 24 facility;
(4) [with each application for] a permit for a commercial surface waste management facility, landfill or landfarm, the applicant shall submit to the division a nonrefundable fee of ten thousand dollars ($10,000) per facility;
u [ (5) [with each application for] an .227785.1 - 18 - HJC/HENRC/HB 133 administrative hearing, re-hearing or de novo hearing before the division or commission, the applicant shall submit to the division a nonrefundable fee of [five hundred dollars ($500)] one thousand five hundred dollars ($1,500) per application;
(5) [with each application for] an administrative hearing, re-hearing or de novo hearing before the division or commission, the applicant shall submit to the division a nonrefundable fee of [five hundred dollars ($500)] one thousand five hundred dollars ($1,500) per application;
and (6) [with each application for] a continuance of an administrative hearing, re-hearing or de novo hearing before the division or commission, the applicant shall submit to the division a nonrefundable fee of [one hundred fifty dollars ($150)] four hundred fifty dollars ($450) per application.
and e t 17 (6) [with each application for] a continuance w l n d 18 of an administrative hearing, re-hearing or de novo hearing = = 19 before the division or commission, the applicant shall submit a l i a e r 20 to the division a nonrefundable fee of [one hundred fifty a t m m 21 dollars ($150)] four hundred fifty dollars ($450) per d r e 22 application.
B.
c e s k 23 B.
On January 1, 2027 and on January 1 of each successive year, the division may adjust the fees provided by Subsection A of this section by multiplying the fee as of January 1, 2026 by a fraction, the numerator of which is the consumer price index ending in September of the previous year and the denominator of which is the consumer price index ending e t 17 September 2025;
On January 1, 2027 and on January 1 of each e a n b 24 successive year, the division may adjust the fees provided by u [ Subsection A of this section by multiplying the fee as of .227498.2 - 17 - HENRC/HB 133 January 1, 2026 by a fraction, the numerator of which is the consumer price index ending in September of the previous year and the denominator of which is the consumer price index ending September 2025;
provided that the fees shall not be adjusted w l n d 18 below the minimum amounts provided in Subsection A of this = = 19 section as a result of a decrease in the consumer price index.
provided that the fees shall not be adjusted below the minimum amounts provided in Subsection A of this section as a result of a decrease in the consumer price index.
a l i a e r 20 By November 1, 2026 and by November 1 of each successive year, a t m m 21 the division shall post on its website the fees in Subsection A d r e 22 of this section for the next year.
By November 1, 2026 and by November 1 of each successive year, the division shall post on its website the fees in Subsection A of this section for the next year.
c e s k 23 [B.] C.
[B.] C.
An application for an administrative e a n b 24 hearing, re-hearing or de novo hearing before the [oil u [ conservation] division or commission will be considered to be .227785.1 - 19 - HJC/HENRC/HB 133 materially amended if the amendment is made for a purpose other than to correct:
An application for an administrative hearing, re-hearing or de novo hearing before the oil conservation division or commission will be considered to be materially amended if the amendment is made for a purpose other than to correct:
[C.] D.
e t 17 [C.] D.
The "oil conservation division systems and hearings fund" is created in the state treasury as a nonreverting fund.
The "oil conservation division systems and w l n d 18 hearings fund" is created in the state treasury as a = = 19 nonreverting fund.
All funds received by the [oil conservation] division from fees imposed pursuant to Subsection A of this section shall be delivered to the state treasurer and deposited in the fund.
All funds received by the [oil a l i a e r 20 conservation] division from fees imposed pursuant to Subsection a t m m 21 A of this section shall be delivered to the state treasurer and d r e 22 deposited in the fund.
Disbursements from the fund shall be made upon warrants drawn by the secretary of finance and administration pursuant to vouchers signed by the secretary of energy, minerals and natural resources or the secretary's authorized representative.
Disbursements from the fund shall be c e s k 23 made upon warrants drawn by the secretary of finance and e a n b 24 administration pursuant to vouchers signed by the secretary of u [ energy, minerals and natural resources or the secretary's .227498.2 - 18 - HENRC/HB 133 authorized representative.
Money in the fund is subject to appropriation by the legislature to the division to develop and modernize the division's online application processing system, e t 17 online case management system, online data reporting and w l n d 18 visualization systems and online case file system and for other = = 19 technological and equipment upgrades necessary to support the a l i a e r 20 efficient and transparent implementation and enforcement of the a t m m 21 Oil and Gas Act, including hiring necessary information d r e 22 technology personnel, and for hearing administration costs.
Money in the fund is subject to appropriation by the legislature to the division to develop and modernize the division's online application processing system, online case management system, online data reporting and visualization systems and online case file system and for other technological and equipment upgrades necessary to support the efficient and transparent implementation and enforcement of the Oil and Gas Act, including hiring necessary information technology personnel, and for hearing administration costs.
c e s k 23 Any unexpended or unencumbered balance remaining in the fund at e a n b 24 the end of a fiscal year shall not revert to the general fund.
Any unexpended or unencumbered balance remaining in the fund at the end of a fiscal year shall not revert to the general fund.
u [ [Money in the fund in fiscal year 2020 may be expended by the .227785.1 - 20 - HJC/HENRC/HB 133 division for the purposes of the fund.] E.
[Money in the fund in fiscal year 2020 may be expended by the division for the purposes of the fund.] E.
As used in this section, "consumer price index" means the consumer price index, not seasonally adjusted, for all urban consumers, United States city average for all items, or its successor index, as published by the United States department of labor for a twelve-month period ending September 30." SECTION 5.
As used in this section, "consumer price index" means the consumer price index, not seasonally adjusted, for all urban consumers, United States city average for all items, e t 17 or its successor index, as published by the United States w l n d 18 department of labor for a twelve-month period ending September = = 19 30." a l i a e r 20 SECTION 5.
A new section of the Oil and Gas Act is enacted to read:
A new section of the Oil and Gas Act is a t m m 21 enacted to read:
"[NEW MATERIAL] NATURAL GAS CAPTURE REQUIREMENTS--RULES.-- A.
d r e 22 "[NEW MATERIAL] NATURAL GAS CAPTURE REQUIREMENTS--RULES.-- c e s k 23 A.
Beginning January 1, 2027, an operator shall ensure that at least ninety-eight percent of the natural gas produced or gathered by the operator's facilities is captured in a calendar year;
Beginning January 1, 2027, an operator shall e a n b 24 ensure that at least ninety-eight percent of the natural gas u [ produced or gathered by the operator's facilities is captured .227498.2 - 19 - HENRC/HB 133 in a calendar year;
provided that natural gas does not count as gas released for the purpose of determining an operator's overall capture percentage if that gas is:
provided that natural gas released during an emergency or that is beneficially used by the operator or is essential for drilling, completion, recompletion, gas gathering or production operations does not count as gas released for the purpose of determining an operator's overall capture percentage.
e t 17 (1) released during an emergency;
B.
w l n d 18 (2) beneficially used by the operator;
The division shall adopt rules necessary to implement the provisions of this section and an application for a permit to drill shall be subject to the rules to be valid.
= = 19 (3) not suitable for transportation or a l i a e r 20 processing due to nitrogen, hydrogen sulfide or carbon dioxide a t m m 21 concentrations;
d r e 22 (4) vented as a result of normal operation of c e s k 23 pneumatic controllers and pumps;
or e a n b 24 (5) vented or flared from an exploratory well.
u [ B.
The division shall adopt rules necessary to .227785.1 - 21 - HJC/HENRC/HB 133 implement the provisions of this section and an application for a permit to drill shall be subject to the rules to be valid.
As used in this section, "operator" means a person that is duly authorized to construct, manage or operate an oil or gas well or associated facilities or a natural gas gathering system." - 22 - 9 11 13 15 e t 17 w l n d 18 = = 19 a l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .227785.1
As used in this section, "operator" means a person that is duly authorized to construct, manage or operate an oil or gas well or associated facilities or a natural gas gathering system." - 20 - 16 e t 17 w l n d 18 = = 19 a l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .227498.2
⬇ Download PDF
View plain text versions (3)

Action History

  1. action postponed indefinitely

  2. DO NOT PASS, replaced with committee substitute

  3. DO NOT PASS, replaced with committee substitute

  4. Sent to House Energy, Environment and Natural Resources Committee & House Judiciary Committee

  5. Sent to House Pre-file

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

4 sponsors · 0 co-sponsors · 108 not signed on

Sponsors (4)

Co-sponsors (0)

None.

Not signed on (108)

108 members have not signed on to this bill.

Show all 108 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

environment energy
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors HB 133?
HB 133 is sponsored by Stewart, Mimi, Kristina Ortez (Democrat), Matthew McQueen (Democrat), and Cristina Parajón (Democrat).
What is the current status of HB 133?
This bill died with 2024 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 133?
Track HB 133 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on HB 133

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of HB 133

Last checked for changes 2 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →