On Wednesday, Gov. Susana Martinez and her energy secretary testified in Washington, D.C. that New Mexico is losing revenue from oil and gas drilling due to bureaucratic backlogs. Martinez and Ken McQueen, a former energy executive who now heads the New Mexico Energy, Minerals and Natural Resources Department, testified before a House committee in support of four energy bills, including two proposed by Rep. Steve Pearce, R-NM. Before running for Congress, Pearce owned and operated an oilfield services company. In November, he will face Democrat Michelle Lujan Grisham in the race for New Mexico governor. In Martinez’s spoken remarks before the House Resources Committee, she criticized the U.S. Bureau of Land Management for its slow pace in approving drilling applications, blaming those delays on $2 million of lost revenues per day.
Elected officials will weigh in this week on key energy issues, both in Albuquerque and Washington D.C. What happens in those hearings and committee meetings might not grab headlines, but they affect landscapes, communities and the lives of all New Mexicans, whether they live close to oil and gas wells and coal mines, or hundreds of miles away. When private companies drill or mine on federal lands, they pay a percentage in royalties. Right now, that’s 12.5 percent for onshore coal, oil and gas, though an Obama-era rule—overturned last year—updated valuation rates to increase royalty collections. About half the money collected goes to the federal government and half to the state where the mining or drilling occurred. New Mexico currently receives more royalties from extraction on federal lands than any other state.
This week, we’re running a series of interviews with New Mexico’s four gubernatorial candidates, each of whom answered questions about issues related to water, energy and climate change. Steve Pearce currently serves as New Mexico’s second district congressman and is the lone Republican running for New Mexico governor. Pearce is also a veteran of the Vietnam War and owned and operated an oilfield services company. NMPR: Coming off a bad winter and with drought returning to the state, what critical water issues are you keeping an eye on right now in New Mexico? Steve Pearce: Water is maybe the most important issue that New Mexico faces.
This week, we’re running a series of interviews with New Mexico’s four gubernatorial candidates, each of whom answered questions about issues related to water, energy and climate change. Democrat Michelle Lujan Grisham currently serves as New Mexico’s congresswoman for the first congressional district. Before that, she worked in New Mexico state government as secretary of the Department of Aging and Long Term Services and the Department of Health. NMPR: We’re coming off a bad winter and drought has returned to the state, what critical water issues are you keeping an eye on right now? Michelle Lujan Grisham: I would actually disagree with your question.
This week, we’re running a series of interviews with New Mexico’s four gubernatorial candidates, each of whom answered questions about issues related to water, energy and climate change. We kick off the series with Democrat Jeff Apodaca. Apodaca is a former media executive and the son of former Gov. Jerry Apodaca. NMPR: We’re coming off a bad winter and we’ve got drought returning to the state. What critical water issues will your administration tackle?
At the end of March, a federal court said the U.S. Bureau of Land Management (BLM) has not adequately considered protection of cultural sites near Chaco Culture National Historical Park when granting permits for oil and gas drilling. The full order is still forthcoming, but the six-page memo by Judge James Browning echoed comments by U.S. Department of the Interior Ryan Zinke earlier this spring. When Zinke postponed the sale of oil and gas leases on 4,434 acres of BLM land in San Juan, Sandoval and Rio Arriba counties, he told the Albuquerque Journal, “We’re going to defer those leases until we do some cultural consultation.”
Under federal law, agencies must consult with tribes that have cultural ties to an area being developed, whether the plan is to drill oil and gas wells, inundate a reservoir, build a pipeline or create a national monument. Yet, what often constitutes consultation is already considered inadequate by tribes and activists—and some wonder how the Interior Department will address the problem in northwestern New Mexico while simultaneously prioritizing energy development. President Donald Trump signed an executive order early in his administration directing Zinke to review the agency’s rules, including one guiding hydraulic fracturing on federal and Indian lands.
On Wednesday, Gov. Susana Martinez signed the budget passed earlier this year by state legislators. But she refused to sign a bill that would have reinstated state tax credits for solar. That bill reinstated a tax credit that had expired after a decade, one that had spurred the deployment of 220 million BTUs per day of solar heating energy and 40 megawatts of solar electricity. The tax credit would have given people who install a solar thermal system or photovoltaic system at their home, business or farm a ten percent credit of the purchase and installation costs, up to $9,000. Previously, Martinez has praised the state’s “all of the above” energy resources, but by declining to sign the solar tax credit bill, she effectively vetoed it, but without having to explain why. This week, there’s an interesting water case before the Second District Court, over a private company’s plans to drill for groundwater in the Sandia Mountains.
The New Mexico Environment Department’s (NMED) Air Quality Bureau will host a hearing on Monday about proposed changes to construction permits for oil and gas facilities. The process kicked off in the summer of 2016, and the public comment period closed at the end of January. According to the department, the general construction permit codifies air protection rules for industry to “streamline the application process and to provide consistency in the oversight process.”
The issue is the latest in a line of moves that environmental groups say reverse protections for people and natural resources. Jon Goldstein, director of regulatory and legislative affairs with the Environmental Defense Fund, said that if finalized, the changes would make New Mexico’s new oil and gas construction permits among the weakest in the United States. “This is especially egregious when you consider the methane hotspot in the San Juan Basin and the importance of that issue in New Mexico,” Goldstein said.
New Mexico Attorney General Hector Balderas has again joined forces with California Attorney General Xavier Becerra, this time in a lawsuit against the Trump administration over its suspension of a rule to reduce methane emissions from the oil and gas industry. Earlier this month, U.S. Department of the Interior Secretary Ryan Zinke delayed implementation of the Obama-era requirement until January 2019. The U.S. Bureau of Land Management rule would have cut methane released from wells and infrastructure on federal and tribal lands by limiting routine flaring and requiring that operators modernize leak-detection technology and fix the leaks they found. It also prevented operators from venting methane directly into the atmosphere in most circumstances. New Mexico and California had supported the original rule, saying it would benefit states in three key ways: generating more annual revenue by cutting natural gas waste, protecting public health from harmful air pollution and reducing the impacts of climate change.
Early Wednesday morning, a pipeline owned by Enterprise Products, a natural gas company, exploded south of Carlsbad, near Loving. Homes were evacuated and details are still scarce. The Carlsbad Current Argus has continuing coverage. Elizabeth Miller’s story about work being done in Leonora Curtin Wetland Preserve in this week’s Santa Fe Reporter offers a reminder that while locals sometimes grumble when it’s done near their backyards, the chainsaw-and-herbicide work of restoration is important. Thanks to a state grant, the Santa Fe-Pojoaque Soil and Water Conservation District removed 6.5 acres of invasive Russian olive trees from around the preserve.