CURTIS C. WYNNE NEWS-SUN
Sen. Gay Kernan, R-Hobbs, and Sen. Carroll Leavell, R-Jal, vowed Tuesday to fight a bill to restore the state’s authority to impose administrative penalties of up to $10,000 per day against oil and natural gas companies for violations of operating and environmental rules.
“It’s just a terrible bill,” Kernan said. “My prediction is if this should pass I doubt that it would get signed, but I can’t speak for the governor.”
Introduced by Sen. Richard C. Martinez, D-Española, the bill is designed to reverse a 2009 state Supreme Court decision that the Oil Conservation District has no authority to impose civil penalties under current law and has to file a lawsuit in court to enforce regulations for oil, gas and waste-water injection wells.
The bill, titled “Oil & Gas Act Powers & Penalties,” would amend the Oil & Gas Act to increase daily penalties from $1,000 to $10,000 and allow for all enforcement activities to take place in Santa Fe, not the county of the alleged violation.
Leavell pointed out the bill’s sponsor resides in Rio Arriba County, located in Northern New Mexico, north of Santa Fe.
“I’m sure that this plays well in Rio Arriba County, but it doesn’t play well with me and I don’t think it will with other legislators from the southeast and northwest,” he said.
Kernan said, if the bill becomes law, “We can just plan on a state budget of about $4 billion because we would lose oil and gas, especially with the idea that the venue for any action that would be taken would be in the First Judicial District Court here in Santa Fe. That’s one problem.”
"I’m sure that this plays well in Rio Arriba County, but it doesn’t play well with me and I don’t think it will with other legislators from the southeast and northwest.’
Carroll Leavell
State senator from Jal
Leavell explained his problem with the venue issue, “Even though the incident or accident occurred in Lea County, it would be tried or heard in Santa Fe County and Santa Fe County doesn’t have the respect for oil and gas that Lea County has.”
Kernan added the bill also lacked a proper definition of an oil spill that “threatens to pollute” water. This issue is discussed in detail in the bill’s “Fiscal Impact Report” citing a state Energy, Minerals and Natural Resources Department concern that the bill uses a term for which there exists no guidance and is not defined in either the Safe Drinking Water Act or the Water Quality Act. According to the Fiscal Impact Report, Texas allows daily penalties of $10,000 and Colorado can charge $15,000.
Kernan said the current law fills the need without undue burden on the industry.
“Currently, if there’s a problem, action could be taken by the attorney general filing a lawsuit on behalf of the OCD,” she said. “This (bill) would just give the OCD the opportunity to go ahead and (impose penalties). It would be a real detriment to the oil and gas industry.”
Kernan concluded, “We’re continuing to fight it. We don’t have the votes in the Senate to stop it if it takes on a life of its own, but we’ll do our best. It’s a very bad bill.”
Curtis Wynne may be contacted at 575-391-5436 or reporter3@hobbsnews.com .