New Mexico 2019 Regular Session Status: In Committee

SB 186 — OIL CONSERVATION DIVISION POWERS & DUTIES

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

This bill died with 2019 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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

170 added · 231 removed

Plain-language change summary

The updated version of Bill SB 186 introduces specific penalties for violations of the Oil and Gas Act, replacing the earlier provision that included both civil and criminal penalties with a clearer emphasis on civil penalties. Additionally, the bill now requires annual reports from the oil conservation division, which could enhance accountability in the industry. These changes are important because they aim to streamline enforcement and oversight, ensuring that violations are addressed more effectively.

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SENATE CONSERVATION COMMITTEE SUBSTITUTE FOR SENATE BILL 186 54TH LEGISLATURE - STATEOFNEWMEXICO- FIRST SESSIO, 2019 4 6 8 10 AN ACT RELATING TO OIL AND GAS;
SENATE JUDICIARY COMMITTEE SUBSTITUTE FOR SENATE CONSERVATION COMMITTEE SUBSTITUTE FOR SENATE BILL 186 54TH LEGISLATURE - STATEOFNEWMEXICO- FIRST SESSION, 2019 4 6 8 10 AN ACT RELATING TO OIL AND GAS;
AMENDING AND ENACTING SECTIONS OF THE OIL AND GAS ACT CONCERNING POWERS OF THE OIL CONSERVATION COMMISSION AND THE OIL CONSERVATION DIVISION OF THE ENERGY, 14 MINERALS AND NATURAL RESOURCES DEPARTMENT TO ADDRESS VIOLATIONS;
AMENDING THE OIL AND GAS ACT CONCERNING POWERS OF THE OIL CONSERVATION COMMISSION AND THE OIL CONSERVATION DIVISION OF THE ENERGY, MINERALS AND NATURAL 14 RESOURCES DEPARTMENT TO ADDRESS VIOLATIONS;
PROVIDING FOR CIVIL AND CRIMINAL PENALTIES;
PROVIDING FOR PENALTIES;
AMENDING AND ADDING DEFINITIONS USED IN THE OIL AND GAS ACT;
ADDING DEFINITIONS TO THE OIL AND GAS ACT;
e t 17 MAKING TECHNICAL CONFORMING CHANGES.
REQUIRING ANNUAL REPORTS;
AMENDING, REPEALING AND ENACTING SECTIONS OF e t 17 THE NMSA 1978.
Section 70-2-4 NMSA 1978 (being Laws 1935, a t m m 21 Chapter 72, Section 3, as amended) is amended to read:
Section 70-2-31 NMSA 1978 (being Laws 1981, a t m m 21 Chapter 362, Section 1) is amended to read:
d r e 22 "70-2-4.
d r e 22 "70-2-31.
OIL CONSERVATION COMMISSION--MEMBERS--TERM-- c e s k 23 OFFICERS--QUORUM--POWER TO ADMINISTER OATHS.--There is created e a n b 24 an "oil conservation commission" [hereinafter in the Oil and u [ Gas Act called the "commission"] to be composed of a designee .213447.1 SCONC/SB 186 of the commissioner of public lands, a designee of the secretary of energy, minerals and natural resources and the director of the oil conservation division.
VIOLATIONS OF THE OIL AND GAS ACT--PENALTIES.-- c e s k 23 [A.
The designees of the commissioner of public lands and the secretary of energy, minerals and natural resources shall be persons who have expertise in the regulation of petroleum production by virtue of education or training.
Any person who knowingly and willfully violates e a n b 24 any provision of the Oil and Gas Act or any provision of any u [ rule or order issued pursuant to that act shall be subject to a .214498.2 SJC/SCONC/SB 186 civil penalty of not more than one thousand dollars ($1,000) for each violation.
No salary or compensation shall be paid any member of the commission for [his ] services as a member of the commission.
For purposes of this subsection, in the case of a continuing violation, each day of violation shall constitute a separate violation.
The term of office of each member of the commission shall be concurrent with the other office held by [him] that member.
The penalties provided in this subsection shall be recoverable by a civil suit filed by the attorney general in the name and on behalf of the commission or the division in the district court of the county in which the defendant resides or in which any defendant resides if there be more than one defendant or in the district court of any county in which the violation occurred.
The commission shall organize by electing a [chairman ] chair from its membership.
The payment of such penalty shall not operate to legalize any illegal oil, illegal gas or illegal product involved in the violation for which the penalty is imposed or relieve a person on whom the penalty is imposed from liability to any other person for damages arising out of such violation.] A.
Two members of the commission shall constitute a quorum for all purposes.
Whenever the division determines that a person e e 17 violated or is violating the Oil and Gas Act or any provision e e n d 18 of any rule, order, permit or authorization issued pursuant to = = l ] 19 that act, the division may seek compliance and civil penalties a l r i 20 by:
The commission shall adopt a seal, and the seal affixed to any paper signed by the director of the oil conservation division shall be prima facie evidence of due execution.
t e a t (1) issuing a notice of violation;
[The attorney e e 17 general shall be the attorney for the commission.] Any member e e n d 18 of the commission or the director of the oil conservation = = l ] 19 division or any employee of the commission or division shall a l r i 20 have power to administer oaths to any witness in any hearing, t e a t investigation or proceeding contemplated [by ] pursuant to the m m 21 e d Oil and Gas Act [or by any other law of this state relating to r e 22 c e r c 23 the conservation of oil and gas]." e a n b 24 SECTION 2.
m m 21 e d (2) commencing a civil action in district r e 22 c e r c 23 court for appropriate relief, including injunctive relief;
Section 70-2-28 NMSA 1978 (being Laws 1935, u [ Chapter 72, Section 19, as amended) is amended to read:
or e a n b 24 (3) issuing a temporary cessation order if the u [ division determines that the violation is causing or will cause .214498.2 - 2 - SJC/SCONC/SB 186 an imminent danger to public health or safety or a significant imminent environmental harm.
.213447.1 - 2 - SCONC/SB 186 "70-2-28.
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.
ACTIONS FOR VIOLATIONS.-- A.
Whenever it [shall appear] appears that any person is violating or threatening to violate [any statute of this state with respect to the conservation of oil and gas or both or] any provision of [this] the Oil and Gas Act or any rule, [regulation or ] order [made thereunder] or permit issued pursuant to that act, the division [through the attorney general shall] may:
(1) bring suit against [such] that person for penalties in the county of the residence of the [defendant or] person, in the county of the residence of any [defendant] person, if there [be] is more than one defendant, [or] in the county where the violation is alleged to have occurred [for penalties, if any are applicable] or in the first judicial district and to restrain [such] the person from continuing [such] the violation or from carrying out the threat of e e 17 violation.
In [such ] the suit, the division may obtain e e n d 18 injunctions, prohibitory and mandatory, including temporary = = l ] 19 restraining orders and temporary injunctions, as the facts may a l r i 20 warrant, including, when appropriate, an injunction restraining t e a t any person from moving or disposing of illegal [oil or illegal m m 21 e d oil product or illegal gas or illegal gas] product, and any or r e 22 c e r c 23 all [such] commodities or funds derived from the sale thereof e a n b 24 may be ordered to be impounded or placed under the control of u [ an agent appointed by the court if, in the judgment of the .213447.1 - 3 - SCONC/SB 186 court, such action is advisable;
or (2) issue a compliance order stating with reasonable specificity the nature of the violation and:
(a) requiring compliance immediately or within a specified time period;
(b) assessing a civil penalty in accordance with Section 70-2-31 NMSA 1978;
(c) suspending or terminating the permit allegedly violated;
or (d) any combination of the foregoing.
A compliance order issued pursuant to this section shall become final unless a person named in the compliance order submits a written request to the commission for a public hearing no later than thirty days after the compliance order was served.
A notice of violation issued pursuant to Paragraph (1) of Subsection A of this section shall state with reasonable specificity the nature of the violation, shall require compliance immediately or within a specified time period, shall provide notice of the availability of an informal review and the date of a hearing before the division and shall 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.
Rehearings and appeals of a final compliance order shall proceed in accordance with Sections e e 17 70-2-25 and 70-2-26 NMSA 1978.
e e 17 C.
e e n d 18 C.
If the notice of violation is not resolved e e n d 18 informally within thirty days after service of the notice, the = = l ] 19 division shall hold a hearing and determine whether the a l r i 20 violation should be upheld and whether any sanctions, including t e a t civil penalties, shall be assessed.
The remedies provided by this section are = = l ] 19 cumulative and do not limit any other rights or remedies of the a l r i 20 division or the commission with respect to any violation of the t e a t Oil and Gas Act or of any rule, order or permit issued pursuant m m 21 e d to that act." r e 22 c e r c 23 SECTION 3.
In assessing a penalty m m 21 e d authorized by this section, the division shall take into r e 22 c e r c 23 account the seriousness of the violation, any good faith e a n b 24 efforts to comply with the applicable requirements, any history u [ of noncompliance under the Oil and Gas Act and other relevant .214498.2 - 3 - SJC/SCONC/SB 186 factors.
Section 70-2-31 NMSA 1978 (being Laws 1981, e a n b 24 Chapter 362, Section 1) is amended to read:
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.
u [ "70-2-31.
VIOLATIONS OF THE OIL AND GAS ACT--PENALTIES.-- .213447.1 - 4 - SCONC/SB 186 A.
[Any ] A person who [knowingly and willfully] violates any provision of the Oil and Gas Act or any provision of any rule [or ], order or permit issued pursuant to that act shall be subject to a civil penalty of not more than [one thousand dollars ($1,000)] fifteen thousand dollars ($15,000) for each day of each violation.
[For purposes of this subsection, in the case of a continuing violation, each day of violation shall constitute a separate violation.
The penalties provided in this subsection shall be recoverable by] B.
In assessing the penalty, the division or the commission may consider the extent of the violation's impact on waste, correlative rights, public health and the environment, any good-faith efforts to comply with the applicable requirement and any other relevant factors.
C.
If a penalty, including a penalty assessed pursuant to a compliance order, is not paid within thirty days e e 17 after the order assessing the penalty becomes final or within e e n d 18 the time frame prescribed by the order:
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= = l ] 19 (1) the division, commission or court may a l r i 20 assess an additional civil penalty in an amount not to exceed t e a t twenty-five thousand dollars ($25,000) for each day that the m m 21 e d penalty remains unpaid;
or r e 22 c e r c 23 (2) the penalty may be recovered by a civil e a n b 24 suit filed by [the attorney general in the name and on behalf u [ of] the commission or the division in the district court of the .213447.1 - 5 - SCONC/SB 186 county in which the defendant resides or in which any defendant resides if there [be ] is more than one defendant, [or] in the district court of any county in which the violation occurred or in the first judicial district.
If any final order, including a compliance order, assessing a penalty is appealed to the district court pursuant to Section 70-2-25 NMSA 1978, the division or the commission may seek recovery of the penalty by a counterclaim in that case.
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) 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) per day of noncompliance for each violation.
E.
No penalty assessed by the division or commission after a hearing may exceed two hundred fifty thousand dollars e e 17 ($250,000);
The payment of [such] a penalty shall not operate to legalize any [illegal oil, illegal gas or ] illegal product involved in the violation for which the penalty is imposed or relieve a person on whom the penalty is imposed from liability to any other person for damages arising out of [such ] the violation.
provided that such limitation does not apply to e e n d 18 penalties assessed by a court.
[B.
= = l ] 19 E.
It is unlawful, subject to a criminal penalty e e 17 of a fine of not more than five thousand dollars ($5,000) or e e n d 18 imprisonment for a term not exceeding three years or both such = = l ] 19 fine and imprisonment, for any person to knowingly and a l r i 20 willfully:
The commission shall make rules, pursuant to a l r i 20 Section 70-2-12.2 NMSA 1978, providing procedures for the t e a t issuance of notices of violations, the assessment of penalties m m 21 e d and the conduct of informal proceedings and hearings pursuant r e 22 c e r c 23 to this section.
t e a t (1) violate] m m 21 e d F.
e a n b 24 [B.] F.
A person is guilty of a third degree felony and r e 22 c e r c 23 upon conviction shall be sentenced pursuant to Section 31-18-15 e a n b 24 NMSA 1978 if the person knowingly violates any provision of the u [ Oil and Gas Act or any rule, [regulation or order of the .213447.1 - 6 - SCONC/SB 186 commission or the division ] order or permit 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:
It is unlawful, subject to a criminal u [ penalty of a fine of not more than five thousand dollars .214498.2 - 4 - SJC/SCONC/SB 186 ($5,000) or imprisonment for a term not exceeding three years or both such fine and imprisonment, for any person to knowingly and willfully:
(a) make] or if the person knowingly:
(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;
(1) makes or causes to be made any false entry or statement in a required form , 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;
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:
(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;
(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;
(c) omit] record, account or memorandum;
(b) make or cause to be made any false entry in any record, account or memorandum required by the Oil e e 17 and Gas Act or by any rule, regulation or order of the e e n d 18 commission or division issued pursuant to that act;
e e 17 (2) omits or [cause] causes to be omitted from e e n d 18 [any such] a required form, report, record, account or = = l ] 19 memorandum full, true and correct entries;
= = l ] 19 (c) omit or cause to be omitted from any a l r i 20 such record, account or memorandum full, true and correct t e a t entries;
or a l r i 20 [(d) remove] t e a t (3) removes from this state or [destroy, m m 21 e d mutilate, alter or falsify any such] destroys, mutilates, r e 22 c e r c 23 alters or falsifies a required form, report, record, account or e a n b 24 memorandum.
or m m 21 e d (d) remove from this state or destroy, r e 22 c e r c 23 mutilate, alter or falsify any such record, account or e a n b 24 memorandum.
For the purposes of Subsection [B] F of .213447.1 - 7 - SCONC/SB 186 this section, each day of violation shall constitute a separate offense.
For the purposes of Subsection [B] F of .214498.2 - 5 - SJC/SCONC/SB 186 this section, each day of violation shall constitute a separate offense.
Any person who knowingly [and willfully] procures, counsels, [aides ] aids or abets the commission of any act described in Subsection A [or B ] or F of this section shall be subject to the same penalties as are prescribed [therein ] for violations of those subsections ." SECTION 4.
Any person who knowingly and willfully procures, counsels, aides or abets the commission of any act described in Subsection A or [B ] F of this section shall be subject to the same penalties as are prescribed [therein ] in Subsection D or F of this section." SECTION 2.
"field" means the general area that is underlaid .213447.1 - 8 - SCONC/SB 186 or appears to be underlaid by at least one pool and also includes the underground reservoir or reservoirs containing the crude petroleum oil or natural gas or both.
"field" means the general area that is underlaid .214498.2 - 6 - SJC/SCONC/SB 186 or appears to be underlaid by at least one pool and also includes the underground reservoir or reservoirs containing the crude petroleum oil or natural gas or both.
"gas transportation facility" means a pipeline e a n b 24 in operation serving gas wells for the transportation of u [ natural gas or some other device or equipment in like operation .213447.1 - 9 - SCONC/SB 186 whereby natural gas produced from gas wells connected therewith can be transported or used for consumption;
"gas transportation facility" means a pipeline e a n b 24 in operation serving gas wells for the transportation of u [ natural gas or some other device or equipment in like operation .214498.2 - 7 - SJC/SCONC/SB 186 whereby natural gas produced from gas wells connected therewith can be transported or used for consumption;
"commission" means the oil conservation .213447.1 - 10 - SCONC/SB 186 commission;
"commission" means the oil conservation .214498.2 - 8 - SJC/SCONC/SB 186 commission;
"division" means the oil conservation division of the energy, minerals and natural resources department." SECTION 5.
"division" means the oil conservation division of the energy, minerals and natural resources department." SECTION 3.
"[NEW MATERIAL] REPORTING REQUIREMENT.-- A.
"[NEW MATERIAL] REPORTING REQUIREMENT.--No later than October 1 of each year, the division shall report to the appropriate interim committee of the legislature and to the governor and shall post on the agency website:
No later than October 1 of each year, the division shall report to the legislature and to the governor:
A.
(1) the number of violations that the division has investigated pursuant to the Oil and Gas Act during the previous fiscal year;
the number of notices of violation that the division issued pursuant to the Oil and Gas Act during the previous fiscal year;
(2) the total amount of penalties imposed by the division for violations pursuant to the Oil and Gas Act during the previous fiscal year;
(3) the total amount of penalties collected by the division for violations pursuant to the Oil and Gas Act e e 17 during the previous fiscal year;
e e n d 18 (4) for each penalty assessed, the following = = l ] 19 information shall be provided:
a l r i 20 (a) the name and location of the person t e a t penalized;
m m 21 e d (b) the actual penalty assessed, r e 22 c e r c 23 including the number of days for which the penalty was assessed e a n b 24 and the amount of the penalty per day of the violation;
u [ (c) the reasons underlying the .213447.1 - 11 - SCONC/SB 186 determination of the amount of the penalty, including mitigating circumstances;
(d) whether the violation was part of a pattern of violations by the same person;
and (e) any other rationale used in determining the amount and duration of the penalty;
and (5) the number and nature of lawsuits filed for a violation of the Oil and Gas Act, including the names of defendants, the nature of the violation and the outcome of the litigation.
The annual report required pursuant to Subsection A of this section shall simultaneously be made available to the public, including on a website maintained by the division." SECTION 6.
the total amount of penalties collected by the division for violations pursuant to the Oil and Gas Act during the previous fiscal year;
EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2019.
C.
e e 17 - 12 - e e n d 18 = = l ] 19 a l r i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .213447.1
for each penalty collected, the following e e 17 information:
e e n d 18 (1) the name of the person penalized and the = = l ] 19 location of the violation;
and a l r i 20 (2) the nature of the violation and the t e a t calculation of the penalty collected;
and m m 21 e d D.
the number and nature of lawsuits filed for a r e 22 c e r c 23 violation of the Oil and Gas Act, including the names of e a n b 24 defendants, the nature of the violation and the outcome of the u [ litigation." .214498.2 - 9 - SJC/SCONC/SB 186 SECTION 4.
REPEAL.--Section 70-2-28 NMSA 1978 (being Laws 1935, Chapter 72, Section 19, as amended) is repealed.
SECTION 5.
EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2020.
- 10 - 7 9 11 13 15 e e 17 e e n d 18 = = l ] 19 a l r i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .214498.2
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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 Senate Conservation Committee & Senate Judiciary Committee & Senate Finance Committee

  5. Sent to Senate Pre-file

Sponsors

  • Richard C. Martinez · Primary
  • Matthew McQueen · Primary

Sponsorship breakdown

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2 sponsors · 0 co-sponsors · 110 not signed on

Sponsors (2)

  • Martinez, Richard C.
  • McQueen, Matthew

Co-sponsors (0)

None.

Not signed on (110)

110 members have not signed on to this bill.

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"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.

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Subjects

environment energy
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Frequently asked questions

Who sponsors SB 186?
SB 186 is sponsored by Martinez, Richard C. and McQueen, Matthew.
What is the current status of SB 186?
This bill died with 2019 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 SB 186?
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