The proposed amendments will significatively increase the civil penalties that can be imposed on entities engaged in the ownership and operation of oil and gas pipeline facilities within the state. Specifically, the bill establishes that violators could face penalties up to $100,000 per day for ongoing violations, while related series of violations could incur maximum penalties reaching up to $1 million. This significant escalation in penalties underscores the state's commitment to enforcing pipeline safety regulations effectively and enhancing environmental protection measures.
Summary
Senate Bill 9 (SB9) aims to enhance civil penalties for violations of the Pipeline Safety Act in New Mexico, aligning these penalties with federal guidelines. The bill seeks to amend Section 70-3-19 of the New Mexico Statutes, which pertains to the enforcement of pipeline safety regulations. By increasing penalties for non-compliance, the legislation aims to promote adherence to safety standards and deter violations that could result in environmental harm or hazards to public safety.
Contention
Debate around SB9 may center on the balance between stringent regulatory measures and the operational realities of the oil and gas industry. Proponents of the bill argue that increasing penalties is essential for ensuring compliance and safeguarding public and environmental health. Conversely, critics may raise concerns about the potential economic impacts on small operators within the oil and gas sector, suggesting that excessively high penalties could pose a threat to their viability and operations, thereby impacting local economies reliant on these industries. Thus, the discussion surrounding this bill could reflect broader themes of environmental responsibility versus economic concerns.