HSE & Sustainability

New Mexico Oil and Gas Regulators Remain Vigilant During Market Downturn

New Mexico state regulators vowed to keep the oil and gas industry in check during the COVID-19 pandemic and subsequent market collapse, as some groups worried that shut-in wells and other cost-saving measures could lead to operators flouting environmental regulations.

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New Mexico State regulators vowed to keep the oil and gas industry in check during the COVID-19 pandemic and subsequent market collapse, as some groups worried that shut-in wells and other cost-saving measures could lead to operators flouting environmental regulations.

In a recent study from the Center for Western Priorities that evaluated the enforcement of oil and gas regulations in western states, New Mexico was rated as having one of the worse oil and gas safety programs, although the study said the state’s new administration, which started in 2019, was improving enforcement measures.

Utah was labeled the “Worst in the West” by the study; it reportedly issued no fines in 24 years.

New Mexico received its low rating, read the study, because only since early 2020 were state regulators allowed to issue fines to operators, while the state suffered one of the highest spill rates in the nation.

“The previously toothless agency did not follow up on numerous violation notices, has by far the most spills, high staff vacancy rates, poor budget utilization, and requires high rates of inspection from staff,” the report read.

Jennifer Rokala, executive director at the Center for Western Priorities said well inspections and environmental protections were even more essential during the economic, warning producers could “cut corners” to save money.

“As oil producing states face an unprecedented and sudden shutdown of drilling operations and bankruptcies, it becomes even more important that state inspectors have the mandates and enforcement tools they need to ensure oil and gas producers don’t cut corners and endanger public health,” Rokala said.

“We hope that elected officials and regulators quickly heed the recommendations in this report to protect the environment, workers, and the public during a time of rapid upheaval,” she said.

Read the full story here.