In New Mexico and Texas, the stakes have been high, the bills have held surprises, and the full results are near but still unknown.
By now, the New Mexico session is all over but the shoutin’. There was quite a bit of oil and gas activity there and I would like to give you a taste of the types of issues we faced.
House Bill 429 (HB 429) would have amended the Oil and Gas Act and added new material to the Environment Improvement Act and Water Quality Act to create a private right of action as noted below:
a person who is injured in fact, economically or otherwise, or who is imminently threatened with injury, economically or otherwise, may commence a civil action on the person’s own behalf against:
(1) any other person, including the state of New Mexico, a political subdivision thereof or
any officer or agency of either, charging a violation of the noted Acts or a rule, permit or
order issued pursuant to that act; or
(2) the appropriate agency or division alleging a failure to perform any substantive and nondiscretionary act or duty required by a provision of the Act or a rule promulgated pursuant to that act.
HB 429 would have created a broad group of potential plaintiffs by allowing any person who is injured or threatened with injury, “economically or otherwise,” to sue. This vague standard would have allowed parties with various allegations of non-economic injuries to sue operators or the State for damages or an injunction.
HB 286 would have increased blanket plugging financial assurance from a maximum of $50,000 to a minimum of $100,000; increases civil penalties to $10,000 per violation or per day for continuing violations when such violation causes an unauthorized discharge into the environment of a contaminant; and increases criminal fines from a maximum of $5,000 to $15,000.
HB 335 would have required geologic and hydrologic assessment of ground and surface waters within a 2,000-meter radius of a targeted well head and to a depth of a 1,000 feet below the targeted well’s depth prior to hydraulic fracturing. Well testing will occur before, through and after post well completion. Establishes procedures for a person claiming injuries, including the state, to recover such damages; imposes joint and severable liability on any person defined as “owner”; makes all tests public record.
HB136 would have required hydraulic fracturing chemical disclosures to be performed at least 30 days prior to hydraulic fracturing.
Many thanks to the Governor and our good friends in the legislature.
Texas
In Texas, things have really begun to heat up. Committees have been meeting and hearing bills for weeks now and the session is taking shape. Each one is different and this is no exception.
There are over a dozen bills addressing county road funding, use, and maintenance. Several of them contemplate using a portion of the Rainy Day Fund to jump start these efforts.
There are numerous bills addressing long-range water planning needs. Several of these also recommend the usage of Rainy Day Fund dollars to address Texas’ water planning needs.
The Railroad Commission is well on its way to increasing funding for field and information technology. No fees will be raised this go ‘round.