Setbacks

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.