New Mexico Oil & Gas Association Proposes Rule Changes

Category: Local News Releases Local News Releases
Published: 22 December 2011 22 December 2011

Santa Fe, New Mexico, September 30, 2011  - The New Mexico Oil & Gas Association today filed proposed changes to Rule 19.15.17 of the New Mexico Administration Code, commonly referred to as the “pit rule.”   The changes are designed to make the oil and gas industry in New Mexico competitive with surrounding states for new drilling and development while maintaining groundwater and environmental protections.

The changes, if approved, will encourage additional drilling by allowing lined production pits and on-site burial of drilling cuttings where the distance to groundwater is sufficient for these activities to be performed in a manner that is protective of the environment.  In addition, the proposed changes provide for updates to the rules governing siting criteria, construction and closure of below-grade tanks and other facilities.

“By allowing for the use of lined drilling pits and in-place burial of drilling cuttings when they can be used safely, New Mexico's oil and gas industry will be drilling more wells, adding more employees and paying more taxes,” said Jason Sandel, Chairman of the New Mexico Oil & Gas Association.

The proposed changes to the highly technical rule were developed with input by a wide range of New Mexico oil and gas companies under a set of criteria for the changes including: changes must be based on sound science, changes must maintain environmental safeguards, and changes must encourage environmentally responsible energy development and the resulting jobs and tax revenues.

“The oil and gas industry worked extremely hard on this rule over several months,” said Steve Henke, President of the New Mexico Oil & Gas Association. “The team knows how important changing the rule is to help New Mexico secure project funding that has been going to other states.”

A hearing on the proposed changes before the New Mexico Oil Conservation Commission is expected to begin in late 2011 or early 2012. A copy of the proposed rule is available at http://www.nmoga.org/pit-rule.

About the New Mexico Oil & Gas Association:  The organization is dedicated to promoting the safe and responsible development of oil and gas resources in New Mexico through advocacy, collaboration and education. In New Mexico, the oil and gas industry accounts for over 26,000 jobs and in 2010 provided state and local governments revenues of nearly $2.2 billion.

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