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Saturday, July 05, 2008
State: Extend Galisteo Basin Drilling Moratorium
Associated Press
SANTA FE — A moratorium on new oil and gas drilling in the Galisteo Basin should be extended for six months, the state Energy, Minerals and Natural Resources Department has recommended.
Gov. Bill Richardson called for the original six-month moratorium, which expires July 24, over concerns that drilling could affect the basin's groundwater and archaeological sites. The moratorium allowed officials to review water aquifers, archaeological and cultural resources and wildlife in the area.
The Energy, Minerals and Natural Resources Department said Thursday that while the current moratorium has enabled state agencies to assess existing laws related to drilling, they need more time to identify and inventory cultural, archaeological and natural resources in the basin.
"The Galisteo Basin is indeed an ecologically fragile and resource-rich area, and the more information we have on this area will help ensure proper protection of human health, the environment and ground water," said department Secretary Joanna Prukop.
State agencies that helped put together the report said they need more time to evaluate and prepare for possible impacts of oil and gas drilling.
Prukop's department recommended amending state law to give the Oil Conservation Division and the Oil Conservation Commission authority to impose more serious penalties on producers who violate existing state laws.
"It's meaningless to talk about the requirements the OCD/OCC could impose on oil and gas operations if OCD/OCC does not have an efficient and practical way of enforcing those requirements," the report says.
Penalties should be raised so they're in line with penalties on other industries, and the agency should not have to prove violations were "knowing and willful" to impose fines, the report recommends.
Energy, Minerals and Natural Resources oversees the Oil Conservation Division, which regulates oil and gas production in New Mexico.
The report also recommends the two agencies be allowed to consider a broader range of factors when issuing drilling permits — at a minimum, expanding mandates "to expressly include the authority to protect surface water and ground water."
Johnny Micou, founder of Drilling Santa Fe, an organization protesting oil development in the basin, said he's pleased with the recommendations and the possibility of an extended moratorium.
Bill Dirks, president of Tecton Energy of Houston, and Bob Gallagher, president of the New Mexico Oil and Gas Association, could not be reached for comment.
Tecton Energy has applied to the state for permits to drill three wells in the basin.
The report also said that evaluating individual permits makes it difficult to address the impact of development in a particular area. Energy, Minerals and Natural Resources suggested adopting rules to address needs of a specific area, as was done for Otero Mesa in southern New Mexico.
The department suggested letting the public comment at the initial step in development — the filing of an application for a permit to drill.
Recommendations of other agencies:
—The state engineer said water resources are at risk in the Galisteo Basin, a major source basin for the Rio Grande and the only source of domestic water for much of the recent population growth in Santa Fe County.
The office said oil and gas drilling operators in the basin should be required to show that drilling will not contaminate fresh water supplies. It also recommended site specific analyses to ensure water supply protection.
—The Department of Cultural Affairs contends tens of thousands of significant cultural resources have not been identified. The basin holds some of the nation's most dramatic archaeological evidence of indigenous ways of life. More than 3,000 archaeological sties and about 160 historic structures are recorded in the basin.
Pueblos, including Tesuque and Santa Clara, trace their ancestral roots to the Galisteo Basin.
—The Game and Fish Department said the state should consider more restrictive setbacks for wells from important aquatic and riparian habitats to protect plant and animal species. The U.S. Bureau of Land Management generally uses a quarter mile, but the department said a half-mile would provide better protection.
—The Health Department suggested examining the feasibility of requiring oil and gas drillers to disclose additives and chemicals used in drilling. The department said air, soil and water contamination could occur in different stages of drilling and could affect human health.
—The Tourism Department said tourism cannot benefit from oil and gas exploration. The communities of Madrid, Cerrillos and Galisteo, which rely on tourism, oppose proposed drilling, the department said.
"The potential short-term benefit to the oil and gas industry compared to the long-term disruption to the tourism economy would require the New Mexico Tourism Department to recommend against allowing the exploration to proceed," the report said.
Copyright ©2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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