CARLSBAD — In the Permian Basin, now the most prolific oil field in the world, hundreds of miles of plastic pipelines snake along dirt roads, drilling pads and the edges of farm fields. But they are not carrying oil. Instead, they’re transporting an equally precious commodity in this arid region straddling the New Mexico-Texas border: water.
“Pipelines are going in everywhere,” said Jim Davis as he drove a camouflage-hued, four-wheeled ATV across his land toward the water station he owns. Selling the water beneath his property to oil and gas companies has given Davis and his wife, who has cancer, a financial security that eluded them for most of their lives. Every day, a steady stream of water trucks flows in and out of his station south of Carlsbad, filling up on his high-quality freshwater — an essential ingredient for hydraulic fracturing, or fracking for short.
Davis, whose property has been in his family since 1953, says he’s never seen so much water moving around the basin.
The state agency charged with regulating the oil and gas industry can once again enforce those rules by imposing penalties. The Oil Conservation Division (OCD), a division of the Energy, Minerals and Natural Resources Department (EMNRD), adopted a new rule Thursday which enables the OCD to assess penalties to oil and gas producers operating in the state for violations of New Mexico’s Oil and Gas Act. It’s the first time the OCD has had the authority to impose fines for violations since 2009. The rule change stemmed from the Fluid Oil and Gas Waste Act — also known as the Produced Water Act — which passed during the 2019 legislative session. A provision of that bill enshrined into law the OCD’s ability to assess monetary penalties between $2,500 to $10,000 to oil and gas producers in violation of state law of, depending on the nature and severity of the violation.
At its meeting on Thursday, September 13, the New Mexico Oil Conservation Committee will hear from an energy company that wants to double the density of gas wells in northwestern New Mexico. Hilcorp Energy Company is asking the state to amend well density requirements in what’s called the Blanco-Mesaverde Gas Pool in San Juan and Rio Arriba counties. Under the current rules, companies can drill four wells within the designated 320-acre spacing units, and only two can be drilled within each 160-acre section. Companies can also ask the state to increase the density of wells on a case-by-case basis, something Hilcorp notes in its application New Mexico has allowed it to do in 62 instances this year. Rather than continuing to file individual applications, each with its own public notice and hearing, the company is now asking New Mexico to change the spacing rules for the entire Blanco-Mesaverde pool.
BLANCO, N.M. – Most evenings, the quiet is almost intoxicating. The whoosh of the wind through the junipers, the whinny of horses in their stalls, the raspy squawking of ravens – those are the sounds Don and Jane Schreiber have grown to love on their remote Devil’s Spring Ranch. The views are mesmerizing, too. Long, lonesome ridges of khaki-colored rocks, dome-like outcrops and distant mesas rise from a sea of sage and rabbitbrush. The ranch and surrounding countryside are a surprising setting for an enduring climate change problem: a huge cloud of methane – a potent, heat-trapping gas – that is 10 times larger than the city of Chicago.