New Mexico Supreme Court agrees to take up oil and gas pollution lawsuit

SANTA FE — The New Mexico Supreme Court has agreed to hear an appeal of a 2023 lawsuit aimed at dramatically curtailing oil and natural gas production in the state.

The state’s Court of Appeals in June dismissed the lawsuit, which was filed by a coalition of Native American activists and environmental groups.

But the plaintiffs subsequently appealed that ruling, and New Mexico’s highest court issued an order this week accepting the case.

“We have a strong Constitution in New Mexico, and I’m confident the Supreme Court will uphold New Mexicans’ right to protection of our health and our environment,” said Gail Evans, an attorney for the Center for Biological Diversity, which is one of the groups involved in the lawsuit.

The suit claims state officials’ failure to enact strict pollution control measures has led to damaging health issues around New Mexico.

Specifically, it focuses on a provision in the New Mexico Constitution that declares protection of the state’s “beautiful and healthful environment” to be of fundamental public interest to state residents.

However, the Court of Appeals ruled that provision does not compel action from the legislative and executive branches.

In addition, attorneys for both the Legislature and Gov. Michelle Lujan Grisham’s office have argued the lawsuit should be tossed out due to separation of powers issues. Those attorneys also urged the Supreme Court not to take up the case on appeal.

Meanwhile, the outcome of the case could have a significant impact on New Mexico’s state budget.

Oil production has surged in New Mexico in recent years, driving state revenue collections to record-high levels. Oil and gas revenue makes up more than one-third of the state’s $13.7 billion in projected revenue for the current fiscal year, according to legislative data.

Specifically, New Mexico crude oil production more than doubled from August 2020 to August of this year, jumping from roughly 31 million barrels of oil to more than 71 million barrels.

Lujan Grisham, who is among the listed defendants in the case, recently described New Mexico as an “energy powerhouse” and has sought to find new overseas markets for the natural gas supply.

But the governor has also touted recent satellite observations that show oil and gas operators are releasing emissions in New Mexico at less than half the amount as in neighboring Texas, saying the images are evidence that a new state methane rule enacted in 2021 is working as intended.

Oil industry backers have also said technological advances have led to reduced emissions and other environmental impacts.

That has not assuaged concerns of some New Mexicans, however, who say the oil production boom has led to an increase in health issues in the Permian Basin and Four Corners regions, where much of the oil and natural gas activity occurs.

Attorneys and advocates involved in the lawsuit have compared it to the landmark Yazzie-Martinez case. That case culminated in a 2018 ruling that found the state was not meeting its constitutional mandate to provide an adequate education to all students in New Mexico, especially Native Americans and English-language learners.

The Supreme Court has not issued any deadlines in the oil and gas pollution case, and has not yet indicated whether it plans to hold oral arguments.