Bill > SB178

This bill establishes a new five-cent ($0.05) per barrel fee on produced water from oil and gas wells in New Mexico, with certain exemptions for water used in enhanced oil recovery, recycling, or specific regulated uses. The bill creates a new "Plugging and Remediating Abandoned Wells Fund" in the state treasury, which will be administered by the oil conservation division to plug abandoned wells and remediate well sites. The produced water fee will be collected by the taxation and revenue department and must be paid by the 25th day of the month following water production. The bill also restricts the use of produced water to research purposes only, prohibiting its use in agriculture, irrigation, potable water supplies, environmental restoration, road maintenance, and other construction activities. Additionally, the bill amends existing laws to incorporate the new produced water fee into the state's tax administration framework and modify regulations around produced water usage. The primary goal appears to be generating funding for addressing abandoned oil and gas wells while limiting potential environmental and public health risks associated with produced water reuse.

Agriculture and Natural Resources

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=178&year=25