San Juan Basin Gas Producer provided data to Feds that helped shape the revised ‘balanced’ rule

ROSWELL, NM -- Today, the U.S. Bureau of Land Management (BLM) released its revised Waste Prevention Rule which outlines a more sensible approach to oil and gas production while protecting the environment. 

“The revised BLM rule is a correction of the implausible 2016 Waste Prevention Rule,” said Jim Winchester, Executive Director of the Independent Petroleum Association of New Mexico. “The proposed 2016 rule was duplicative to other existing state and federal regulations, and would have decimated a large number of independent producers and wells in New Mexico.”

New Mexico oil and gas operators would have faced significant overhead costs and increased operational expenses to implement the rule proposed by the Obama administration in late 2016. The 2016 rule disproportionally targeted oil wells that produce less than 15 barrels of oil equivalent per day, which amounts to over 30,000 wells in New Mexico alone.

As part of IPANM’s efforts to support a revised BLM rule, one of IPANM’s San Juan Basin gas producers traveled to Washington, D.C., this past summer to provide data to federal policymakers that demonstrates the danger of over-regulation. The data demonstrated that the enormous costs for compliance under the proposed 2016 Waste Prevention Rule would have led to wells being plugged and abandoned prematurely. Data presented further demonstrated that the forced abandonment of just six lower-producing wells would result in a $151,000 royalty loss to New Mexico per year. It’s estimated that upwards of 15,000 producing wells across New Mexico could have been abandoned due to the enormous costs of the proposed 2016 rule.

“The premature abandonment of these wells not only impacts an independent producer’s business, it leaves oil and gas resources unrecovered, which results in a significant reduction in royalty revenues paid to the state and a loss of jobs in local communities,” said Winchester. “Millions of dollars that might otherwise be used for teacher salaries, textbooks and school buses in New Mexico would have simply disappeared due to a federal regulatory overreach.”

The collective estimated value of the unrecovered oil and gas resources, the premature abandonment of wells and the elimination of jobs due to the 2016 Waste Prevention Rule would have cost an estimated $112 million to New Mexico.  

Recent data also shows that technological advances by industry have already decreased methane emissions despite a significant increase in oil and gas production in recent years. According to the EPA, methane emissions in the San Juan Basin have fallen by 47% from 2011-2016. Methane emissions in the Permian Basin have fallen by 6% over the same period of time.

Content on the Beat

WARNING: All articles and photos with a byline or photo credit are copyrighted to the author or photographer. You may not use any information found within the articles without asking permission AND giving attribution to the source. Photos can be requested and may incur a nominal fee for use personally or commercially.

Disclaimer: If you find errors in articles not written by the Beat team but sent to us from other content providers, please contact the writer, not the Beat. For example, obituaries are always provided by the funeral home or a family member. We can fix errors, but please give details on where the error is so we can find it. News releases from government and non-profit entities are posted generally without change, except for legal notices, which incur a small charge.

NOTE: If an article does not have a byline, it was written by someone not affiliated with the Beat and then sent to the Beat for posting.

Images: We have received complaints about large images blocking parts of other articles. If you encounter this problem, click on the title of the article you want to read and it will take you to that article's page, which shows only that article without any intruders. 

New Columnists: The Beat continues to bring you new columnists. And check out the old faithfuls who continue to provide content.

Newsletter: If you opt in to the Join GCB Three Times Weekly Updates option above this to the right, you will be subscribed to email notifications with links to recently posted articles.

Submitting to the Beat

Those new to providing news releases to the Beat are asked to please check out submission guidelines at https://www.grantcountybeat.com/about/submissions. They are for your information to make life easier on the readers, as well as for the editor.

Advertising: Don't forget to tell advertisers that you saw their ads on the Beat.

Classifieds: We have changed Classifieds to a simpler option. Check periodically to see if any new ones have popped up. Send your information to editor@grantcountybeat.com and we will post it as soon as we can. Instructions and prices are on the page.

Editor's Notes

It has come to this editor's attention that people are sending information to the Grant County Beat Facebook page. Please be aware that the editor does not regularly monitor the page. If you have items you want to send to the editor, please send them to editor@grantcountybeat.com. Thanks!

Here for YOU: Consider the Beat your DAILY newspaper for up-to-date information about Grant County. It's at your fingertips! One Click to Local News. Thanks for your support for and your readership of Grant County's online news source—www.grantcountybeat.com

Feel free to notify editor@grantcountybeat.com if you notice any technical problems on the site. Your convenience is my desire for the Beat.  The Beat totally appreciates its readers and subscribers!  

Compliance: Because you are an esteemed member of The Grant County Beat readership, be assured that we at the Beat continue to do everything we can to be in full compliance with GDPR and pertinent US law, so that the information you have chosen to give to us cannot be compromised.