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Wednesday, January 28, 2009
Bill on Drilling Rules Stirs Debate
By Raam Wong
Journal Staff Writer
Santa Fe County and other local governments would most likely be barred from regulating oil and gas operations under a measure before the state Legislature.
The bill would put regulatory authority solely in the hands of the state Oil Conservation Division. But critics and even OCD officials say the division doesn't now have the authority to address local concerns, ranging from zoning to noise.
“Our regulatory authority is fairly limited,” OCD spokeswoman Jodi McGinnis Porter said Tuesday.
If enacted, the legislation would put to rest a debate over whether local governments can impose rules on the industry.
The Santa Fe County Commission did just that last month in approving one of the nation's toughest drilling laws. The move came in response to an industry proposal to explore in the Galisteo Basin southeast of town.
The ordinance which addresses many issues not governed by the state's Oil and Gas Act was opposed by industry officials who said the county was overreaching. And the New Mexico Oil and Gas Association has threatened to challenge the ordinance in court, saying regulation is the responsibility of the OCD, not local government.
Senate Bill 17 was introduced by Republican state Sen. Carroll Leavell of Hobbs, who did not return a call for comment Tuesday.
The bill states that “no political subdivision or other instrumentality of the state shall have jurisdiction, authority or control relating to oil and gas operations, except those specifically provided pursuant to law.”
Anti-drilling activists note that OCD rules fail to consider cumulative impact of multiple drilling sites and focus largely on what's known as correlative rights, which are meant to ensure a would-be operator does not take more than its fair share. Moreover, drilling permits are handled administratively, typically without a public hearing.
“In general, federal and New Mexico's state regulations are not adequate to protect public health, our water resources, the environment or its wildlife,” the group Drilling Santa Fe said in an e-mail.
In a written response to the bill, the New Mexico Environment Department said that if the legislation applies to other state agencies, NMED could be prohibited from regulating industry air pollution.
Meanwhile, the State Land Office said in its response that the legislation would prevent counties from enacting rules that conflict with OCD requirements or the SLO's ability to lease state trust land.
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