Jan. 25—A bill that would make the most significant changes in decades to a nearly 90-year-old state fossil fuel law drew a lengthy and heated discussion about increasing regulation on an industry that generates roughly 40% of New Mexico's tax revenue.
The House Energy, Environment and Natural Resources Committee voted 6-5 Thursday, mostly along party lines, to advance a bill that has drawn staunch opposition from the industry and its advocates.
It would eliminate the cap on penalties imposed on rule breakers and increase the maximum bonding amounts that drillers pay upfront as insurance to $10 million from the current $250,000.
Many conservationists also were unhappy about this version of the bill passing. An earlier version would have required oil wells to be set back at least 2,250 feet from homes, schools, businesses and institutions. It also called for wells to be distanced up to 660 feet from water bodies.
"I think it's fair to say no one is happy," committee Chairman Rep. Matthew McQueen, D-Galisteo, said at the start of the hearing.
This is a developing story and will be updated.