This legislative session the topic of setbacks in the oil and gas industry has returned and as with all potential laws, it’s important to review the facts and the impact potential laws will have on our communities and our state.
So, what is a setback? A setback is the minimum distance between an energy facility and a building.
Communities and counties throughout the San Juan and Permian Basins already have setbacks in place that have gone through extensive processes for approval at the local government level, including input from community members. This collaborative approach ensures that the unique needs and concerns of each community are addressed, resulting in tailored solutions that protect both residents and the environment. NMOGA member companies are proud to safely operate and produce throughout the Permian and San Juan Basins and adhere to these setbacks.
However, some in Santa Fe want to take away the authority of local communities and counties and create a one-size-fits-all setback requirement. Not only is this infringing on local control, but the proposed legislation is also not based on science or consideration for the impact to local communities.
Dig Deeper
What goes into current setbacks?
- The siting of oil and gas facilities involves numerous processes designed to protect air, land, and those living around the facilities. These protective measures include rigorous environmental assessments, adherence to regulatory standards, and ongoing monitoring to ensure compliance. By implementing these processes, the oil and gas industry demonstrates its commitment to safeguarding the health and well-being of our communities.
Does science say increased setbacks are necessary?
- Epidemiological research for determining the potential human health impacts of oil and gas development is still in the early phases of research. Current studies are not sufficient to inform setback requirements, and more research is needed.
- Oil and gas companies are already required by federal and state standards and reporting guidelines to consistently model and monitor any risk for human health.
- While areas near oil and gas development sites are likely to experience higher concentrations of select pollutants than areas further away, economic sectors other than oil and gas contribute more to pollution levels.
- Specifically, mobile sources, such as cars and small trucks, contribute the most pollution.
- The National Emissions Inventory Collaborative (2019) shows that oil and gas development sites are one of the smallest contributors to two air pollutants, nitrogen oxides and fine particulate matter (referred to as “PM2.5”).
- Overall, there are concerns with many of the studies that have been conducted so far, including a focus on pre-production vs. production phases of a well, time-frame inconsistencies, and monitoring equipment used to name a few.
Would setbacks affect New Mexico’s economy?
- Setback requirements would decrease oil and gas investment and production, creating a decrease in funding for the state.
- Statewide setbacks could create billions of dollars in financial loss to New Mexico by 2050, depending on the future prices of oil and natural gas.
- Decreases in oil and gas production will lead to decreases in state and local tax revenue in the San Juan and Permian Basins. These impacts could cause lower employment rates and lower income due to job loss for both those jobs directly dependent on oil and gas industry as well as jobs dependent on local and state tax revenue.
How would a setback affect me and my community?
- Based on standard criteria to identify vulnerable communities, all communities in the Permian and San Juan Basins are at-risk. This indicates that all the communities in both basins have the potential to be adversely impacted by setback legislation.
Scientific Studies
Report: New Mexico Oil & Gas under Setback Requirements
New Mexico Social Characterization and Baseline Conditions Report
Critical Review of Selected Epidemiology Research and Risk Assessments of Oil and Gas Development
Identification and Analysis of High Impact Studies
Health Effects Institute (HEI-Energy) Current Research Efforts Summary
Legislative Fact Sheets
HB-35 Assessment of Existing Studies
- While areas near oil and gas development sites are likely to experience higher concentrations of select pollutants than areas further away, economic sectors other than oil and gas contribute more to pollution levels. Specifically, mobile sources, such as cars and small trucks, contribute the most pollution.
- The National Emissions Inventory Collaborative (2019) shows that oil and gas development sites are one of the smallest contributors to two air pollutants, nitrogen oxides and fine particulate matter (referred to as “PM2.5”)
- Epidemiological research for determining the potential human health impacts of oil and gas development is still in the early phases of research. Current studies are not sufficient to inform setback requirements and more research is needed to inform critical decisions with the potential for significant economic upheaval.
- One-mile setback requirements are anticipated to decrease in oil and gas investment and production, with state and private land holders experiencing up to a 55% decrease in potential future wells drilled.
- The anticipated losses in oil and gas production from one-mile setbacks are substantial, ranging from approximately $92 - $396 billion by 2050, depending on the future prices of oil and natural gas.
- Decreases in oil and gas production will lead to decreases in state and local tax revenue in the San Juan and Permian Basins. These impacts could cause lower employment rates and lower income due to job loss for both those jobs directly dependent on oil and gas industry as well as jobs dependent on local and state tax revenue.
- Based on standard criteria to identify vulnerable communities, all communities in the Permian and San Juan Basins are at-risk. This indicates that all of the communities in both basins have the potential to be adversely impacted by setback legislation.
- It was found that there are communities of concern (COCs) in the San Juan and Permian Basins that are at a heightened level of risk and thus more vulnerable to expected economic impacts. Communities in both basins have a significant percentage of the population that already meets the federal definition of low-income, which is an annual income twice the poverty level. The economic impacts of setback legislation are anticipated to further suppress income and wages in these communities.
- The most vulnerable communities in the San Juan Basin are primarily rural, tribal areas and the people living in these communities are spread throughout the Basin. In contrast, the most vulnerable communities in the Permian Basin are concentrated in small towns.
HB-35 HEI Energy Research Fact Sheet
- Health Effects Institute-Energy Research Committee has commissioned studies to better understand community exposures from unconventional oil and gas development sites to fill a critical gap in available scientific information.
- These studies are still in progress and involve local community volunteers.
- Public involvement increases the importance of accurate reporting of study findings and how that information is used to inform New Mexico setback requirements.
- The HEI-Energy research review, when available, will be a valuable, unbiased analysis for the New Mexico legislature. It is recommended that the 2025 legislature not take action on setback distances until HEI-Energy studies are publicly available and can provide a reliable and credible basis to evaluate current setback requirements.
HB-35 Health Studies Review Fact Sheet
- Two types of health studies – epidemiological studies and risk assessment studies – were reviewed.
- On the basis of available epidemiological studies and risk assessment studies a 500-foot setback requirement would be sufficient to be health-protective for birth outcomes. This finding was based on three facts:
- First, there was not consistent evidence of observable health risks in relation to distance to oil and gas development (OGD) sites from epidemiological studies.
- Second, the data from risk assessments indicate that the risk of noncancer and cancer effects tends to decrease with distance from the OGD sites, and only minimal exceedances were reported even as close as 500 feet from the OGD sites and greater.
- Third, many of the published studies were conducted over the past 10 years when operational practices had higher emissions than are currently occurring or will occur in the future, so past study results are anticipated to be higher than they would be today.
- On the basis of available epidemiological studies and risk assessment studies a 500-foot setback requirement would be sufficient to be health-protective for birth outcomes. This finding was based on three facts: