By Hannah Grover
Lawmakers in Santa Fe are debating whether to codify current methane capture requirements for the oil and gas industries.
The current requirements came through a rulemaking process and could be changed if a more conservative governor takes office in future years. HB 258 would ensure the requirements remain in place regardless of who is governor.
HB 258 cleared the House Energy, Environment and Natural Resources Committee on a 7-4 vote Tuesday morning.
Current regulations require the oil and gas companies to capture 98% of the methane from operations by the end of 2026, with a few exceptions such as safety including equipment malfunctions and other emergencies.
Ben Shelton, the acting deputy secretary for the Energy, Minerals and Natural Resources Department, said the legislation is not seeking to “reopen” the methane waste rules that were adopted in 2022. Instead, he said, HB 258 would provide those rules with a “little more durability by enshrining them in statute.”
“I’d say the rules have been effective to this point…we’ve seen in the last few years a tremendous degree of change in the operating community to limit waste,” Shelton said.
Ashley Wagner, the vice president of government affairs for the New Mexico Oil and Gas Association, said HB 258 is unnecessary because operators in the state have implemented measures that comply with the current rule. She said many of the operators have already reached the 98% capture threshold prior to the 2026 requirement.
“This bill will create the need for additional rulemakings, costing taxpayers’ resources and staff time. Regulation — coupled with innovation — is working, but over regulation creates a loss of production potential for New Mexico,” she said.
Travis Kellerman, the senior climate policy advisor for the governor, said Gov. Michelle Lujan Grisham supports HB 258, which he said also extends the methane waste rule.
“The extensions are very minimal, and there’s actually more flexibility in this bill than the existing methane waste rule,” he said.
He said the data provision allows for automation of reporting, which will save both operators and the Oil Conservation Division money while also ensuring accurate reporting.
Kellerman said operators have already seen a return on investment because of the methane waste rule.
Captured methane can then be sold as a product. Methane is the primary component of natural gas, but if released into the atmosphere it is also a potent greenhouse gas and contributes to climate change.
Rep. Rod Montoya, R-Farmington, whose district includes the San Juan Basin oil and gas field, argued that HB 258 does not actually mirror the current rules.
“The rules that are in place are working,” he said.
He said if HB 258 was a “word-for-word statute for what’s in place” he doesn’t believe the industry groups would oppose it.
HB 258 now heads to the House Judiciary Committee.