House Bill 133 and Its Implications
House Bill 133 aims to update the state's Oil and Gas Act, regulating oil and gas production under the New Mexico Energy, Minerals and Natural Resources Department Oil Conservation Division. However, critical studies assessing the scientific necessity and fiscal impacts of the proposed recommendations are lacking.
The New Mexico Oil and Gas Association (NMOGA) opposes the bill as it would over-regulate businesses, creating a revenue deficit in state funding. In fact, initial estimates suggest that this bill would cost the state of New Mexico at least $6.5 billion in the coming years.
Over-Regulation and State Revenue Impact
What We Know:
The bill would over-regulate businesses, leading to a revenue deficit in state funding (i.e: less money for schools, roads, hospitals and critical infrastructure.)
New Mexico already has a robust regulatory framework for the oil and gas industry, focusing on public health and environmental protection.
The industry contributes over 50% of the state's budget, generating $13.9 billion in state and local revenue for FY23.
Impact on Vital Services:
These proposed changes threaten to undercut funding for critical services such as free school lunches, free tuition, and road improvements.
Loss of funding may necessitate increased taxes to cover deficits.
Commitment to Responsible Energy Production
NMOGA and its member companies are dedicated to promoting responsible and sustainable energy production.
Passage of HB 133 could jeopardize health and welfare concerns in New Mexico if funding for healthcare, education, and social services is compromised.
Unnecessary Setbacks: A Flawed Proposal
The bill includes six changes to the Oil and Gas Act, including setbacks—proposed distances between new energy development and existing structures.
Setback distances in HB 133 lack scientific backing and may hinder new production in the San Juan and Permian Basins.
Financial impacts of proposed setbacks remain unstudied.
Click below to tell your legislator that you do not support undermining our state's future with HB 133.