Opposition to stopping natural gas waste on the wrong side

Chris Saeger is the director of the Western Values Project. Every year, oil and gas companies waste enough natural gas on public lands through venting, flaring, and leaks to fill the needs of a major American city like Albuquerque for years: They literally burn perfectly good natural gas into the atmosphere without paying a royalty […]

Opposition to stopping natural gas waste on the wrong side

Chris Saeger is the director of the Western Values Project.

Every year, oil and gas companies waste enough natural gas on public lands through venting, flaring, and leaks to fill the needs of a major American city like Albuquerque for years: They literally burn perfectly good natural gas into the atmosphere without paying a royalty on a resource that could be sold on the open market, where it could heat homes and create jobs.  The U.S. Bureau of Land Management (BLM) recently put forward a rule to combat this wasteful practice and make sure the American people get an honest return on this public resource.

methane flaring oil gas
Photo Credit: WildEarthGuardians cc

Now that the dust has settled from the recent public hearings in New Mexico and throughout the West on this issue, we have the opportunity to take a closer look at some of the industry arguments for why they oppose being accountable for wasting a resource owned by all American taxpayers.

First of all, keep in mind that despite the hearing being held in the industry stronghold of Farmington and the local oil and gas companies’ efforts to bus in supporters, positive comments supporting the BLM’s sensible rules actually outweighed opposition by about two to one. However, at the front of the opposition line at the Farmington hearing was the New Mexico Oil and Gas Association (NMOGA). It is interesting to note then that NMOGA is led by the former District Manager of the BLM’s Farmington District Office.

The main thrust of NMOGA’s arguments was that the BLM’s efforts to curtail methane waste are unnecessary and overly burdensome on industry. While these arguments are wrong on the facts, since business consulting firms have found that cutting methane waste is among the best deals in the oil and gas industry and will provide them with more product to sell, they do raise the interesting question of how credible a messenger NMOGA’s president is on this issue.

According to federal investigators, Steve Henke accepted gifts during his tenure at the BLM from Williams Exploration and Production (Williams E&P)—a leading industry group and one of the top five producers of oil and gas in the San Juan Basin. Henke got gifts such as PGA Championship tickets, lodging accommodations, meals, and financial contributions from Williams E&P. During this time, and in his official capacity as Farmington district manager, Mr. Henke also approved over 3,500 oil and gas drilling permits for Williams E&P. His cozy relationship with industry, in his position at BLM, undermined public trust and blurred the line between his duties as a public servant and his investment in, and dealings with, private industry.

In 2009, the Department of Interior Inspector General published a report  detailing various ethics violations committed by Mr. Henke. These violations were first brought to the U.S. Attorney for the District of New Mexico, who declined to prosecute, and eventually attracted criticism from a government watchdog, environmental groups, and even Republicans in Congress.

Additionally, Mr. Henke managed to run one of the worst-managed BLM field offices in the nation according to the Government Accountability Office (GAO).  In their 2009 report, GOA found that the Farmington field office, under Mr. Henke’s leadership, had acted illegally by not fully assessing site-specific environmental impacts and approved individual projects without carrying out site-specific analysis. In short, Henke played a shell game and did an end run around doing any sort of meaningful environmental review for drilling permits.

Mr. Henke’s repeated failures as a district manager led to the grim situation we now face in the San Juan Basin. In fact, the GAO laid the air pollution issues we have now in the San Juan Basin right at the doorstep of Henke’s office:

“According to the Environmental Protection Agency and others, ozone levels around at least three field offices—Farmington, New Mexico; Pinedale, Wyoming; and Vernal, Utah—have reached or exceeded allowable levels, in part because of the release of nitrogen oxides from additional wells approved with section 390 categorical exclusions.”

Through his time as at the BLM Mr. Henke lived quite the high life. Tickets to fancy golf tournaments. Luxurious hotels. Decadent dinners. All while he was supposed to be serving the public trust by overseeing the responsible development of our oil and gas from the San Juan Basin. Talk about a waste of public resources.

However, none of that attention or those errors kept Henke from cashing in—once the Inspector General showed BLM a report detailing how Mr. Henke violated federal ethics laws, his service was up. Then, he walked right through the revolving door from government bureaucrat to industry lobbyist.

Mr. Henke left the BLM under a cloud – both an ethical one and a literal one of methane from the Four Corners hotspot. But now he makes $250,000 a year as President of NMOGA, New Mexico’s primary oil and gas industry group that represents 300 oil and gas companies, many of which have significant financial interests in federal oil and gas policy.

The current head lobbyist of NMOGA violated federal ethics laws and regulations while at BLM by soliciting and accepting gifts from the industry he was supposed to regulate.  This conduct, at the very least, raises serious questions about NMOGA’s credibility on a BLM rule that is sensibly designed to better protect taxpayers and their resources by curbing natural gas waste on public lands.

We're ad free

That means that we rely on support from readers like you. Help us keep reporting on the most important New Mexico Stories by donating today.

Related

Politics Newsletter: LFC Budget report

Politics Newsletter: LFC Budget report

The Dec. 4 politics newsletter includes Legislative Finance Committe revenue tracking report, countdown to the legislative session and Meanwhile on the Hill.
Judge rules that congressional map is not an unlawful gerrymander

Judge rules that congressional map is not an unlawful gerrymander

A judge upheld the congressional maps that Republicans alleged included illegal gerrymandering, particularly in the case of the state’s 2nd Congressional District. Ninth Judicial…
Challenger announces she’ll run for Ivey-Soto Senate seat

Challenger announces she’ll run for Ivey-Soto Senate seat

Former New Mexico House Democratic Campaign Committee finance director Heather Berghmans announced her run for state senate District 15 on Thursday. She is running…
NM looks to brackish and produced water amid climate change

NM looks to brackish and produced water amid climate change

This water will not be used as a drinking water source but can be used in other sectors and may reduce demand for freshwater.…
Environmental groups react to new methane rule

Environmental groups react to new methane rule

In his role as a field advocate for Earthworks, Andrew Klooster often visits oil and gas facilities. Although most of his work focuses on…
New Mexico guv, other leaders tout progress during COP 28

New Mexico guv, other leaders tout progress during COP 28

Gov. Michelle Lujan Grisham and New Mexico Environment Department Secretary James Kenney participated in a panel discussion Sunday during the COP 28 United Nations…
More learning time, free meals coming to students this school year

More learning time, free meals coming to students this school year

As children prepare to return to school for the new public school year, they will see some changes after legislation passed in the 2023…
Legislature hears about post-COVID impacts on education

Legislature hears about post-COVID impacts on education

Public education is still recovering from the effects of COVID-19 lockdowns. The state Legislative Finance Committee’s Public Education Subcommittee released a report Wednesday detailing…
ECECD hosts baby showers to let parents know about resources

ECECD hosts baby showers to let parents know about resources

Friday afternoon, a line of people formed outside a room in the Explora Science Center and Children’s Museum in Albuquerque.  The line was made…
Gov. Lujan Grisham tests positive for COVID

Gov. Lujan Grisham tests positive for COVID

Gov. Michelle Lujan Grisham tested positive for COVID-19 for a third time. The governor’s office said that Lujan Grisham is experiencing mild symptoms and…
Study: New Mexico had highest increase in abortion since 2020

Study: New Mexico had highest increase in abortion since 2020

Between January 2020 and June 2023, New Mexico saw a larger increase in abortion than any other state, according to a new report. The…
Doctors encourage vaccinations for respiratory illnesses, including COVID

Doctors encourage vaccinations for respiratory illnesses, including COVID

Health officials from hospitals throughout the state encouraged New Mexicans to get vaccinated against three respiratory illnesses, including COVID-19. After the U.S. Food and…
US Supreme Court expected to hear the abortion medication case this term

US Supreme Court expected to hear the abortion medication case this term

Two upcoming U.S. Supreme Court cases  this term could impact abortion rights and victims of domestic violence. The high court has not set a…
Indigenous Women Rising: Abortion fund budget has doubled since Dobbs

Indigenous Women Rising: Abortion fund budget has doubled since Dobbs

Representatives from the abortion fund provider Indigenous Women Rising told members of the Interim Indian Affairs Committee on Monday that their monthly abortion fund…
Study: New Mexico had highest increase in abortion since 2020

Study: New Mexico had highest increase in abortion since 2020

Between January 2020 and June 2023, New Mexico saw a larger increase in abortion than any other state, according to a new report. The…
Senators introduce suicide prevention legislation

Senators introduce suicide prevention legislation

The Youth Risk Behavior Survey Data Summary and Trends Report shows upward trends in the nation’s high schoolers expressing they felt hopeless, considered suicide…
Indigenous Women Rising: Abortion fund budget has doubled since Dobbs

Indigenous Women Rising: Abortion fund budget has doubled since Dobbs

Representatives from the abortion fund provider Indigenous Women Rising told members of the Interim Indian Affairs Committee on Monday that their monthly abortion fund…
Study: New Mexico had highest increase in abortion since 2020

Study: New Mexico had highest increase in abortion since 2020

Between January 2020 and June 2023, New Mexico saw a larger increase in abortion than any other state, according to a new report. The…
Local election results certified, with some recounts pending

Local election results certified, with some recounts pending

The New Mexico State Canvass Board met Tuesday in Santa Fe to certify the official 2023 local election results. The State Canvass Board is…
NM Supreme Court hears gerrymandering oral arguments, decision to come at later date

NM Supreme Court hears gerrymandering oral arguments, decision to come at later date

Attorneys for both the Republican Party of New Mexico and Secretary of State Maggie Toulouse Oliver delivered oral arguments on Monday in the case…
Voter education campaign begins as voting begins in local elections

Voter education campaign begins as voting begins in local elections

Tuesday marked the beginning of early voting for local elections throughout the state. It also marked the beginning of a voter education public service…
New Mexico governor kickstarts effort to overhaul oil and gas regulation

New Mexico governor kickstarts effort to overhaul oil and gas regulation

By Jerry Redfern, Capital & Main After failing in the last legislative session early this year, a major update of New Mexico’s Oil and Gas…
NM looks to brackish and produced water amid climate change

NM looks to brackish and produced water amid climate change

This water will not be used as a drinking water source but can be used in other sectors and may reduce demand for freshwater.…
Environmental groups react to new methane rule

Environmental groups react to new methane rule

In his role as a field advocate for Earthworks, Andrew Klooster often visits oil and gas facilities. Although most of his work focuses on…

GET INVOLVED

© 2023 New Mexico Political Report