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Bill > HB259


NM HB259

Oil & Gas Act Violation Penalties


summary

Introduced
02/04/2025
In Committee
03/13/2025
Crossed Over
Passed
Dead
03/22/2025

Introduced Session

2025 Regular Session

Bill Summary

AN ACT RELATING TO NATURAL RESOURCES; INCREASING CIVIL PENALTIES ASSESSED FOR VIOLATIONS OF THE OIL AND GAS ACT; INCREASING CERTAIN APPLICATION FEES IN THE OIL AND GAS ACT AND ADJUSTING THEM FOR INFLATION.

AI Summary

This bill increases civil penalties and application fees related to oil and gas operations in New Mexico. Specifically, the bill raises the maximum daily civil penalty for violations of the Oil and Gas Act from $2,500 to $10,000 per day, and up to $25,000 per day for violations that pose health, safety, or environmental risks or continue beyond specified timeframes. The total maximum penalty is increased from $200,000 to $3,650,000. Additionally, the bill increases various application fees, such as drilling permits (from $500 to $1,500), administrative approval fees (from $150 to $450), and hearing-related fees. The bill also introduces an inflation adjustment mechanism that will allow the division to annually adjust fees starting January 1, 2027, based on the consumer price index. The fees collected will be deposited into the "oil conservation division systems and hearings fund," which can be used to develop online systems, upgrade technology, and support administrative costs related to implementing and enforcing the Oil and Gas Act. The bill will take effect on July 1, 2025, providing a clear timeline for implementation of these changes.

Committee Categories

Agriculture and Natural Resources

Sponsors (3)

Last Action

HJC: Reported by committee with Do Pass recommendation (on 03/13/2025)

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