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HOUSE BILL 222
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Andrea Romero and G. Andrés Romero
AN ACT
RELATING TO THE ENVIRONMENT; REQUIRING DISCLOSURES OF CHEMICALS
USED IN HYDRAULIC FRACTURING OPERATIONS AND DOWNHOLE
OPERATIONS; PROHIBITING THE USE OF HYDRAULIC FRACTURING FLUIDS,
DRILLING FLUIDS AND PROPPANTS THAT CONTAIN PER- OR
POLYFLUOROALKYL SUBSTANCES; PROHIBITING THE USE OF CHEMICALS IN
DOWNHOLE OPERATIONS THAT HAVE NOT BEEN DISCLOSED; PRESCRIBING
PENALTIES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 70-2-33 NMSA 1978 (being Laws 1935,
Chapter 72, Section 24, as amended) is amended to read:
"70-2-33. DEFINITIONS.--As used in the Oil and Gas Act:
A. "person" means:
(1) any individual, estate, trust, receiver,
cooperative association, club, corporation, company, firm,
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partnership, joint venture, syndicate or other entity; or
(2) the United States or any agency or
instrumentality thereof or the state or any political
subdivision thereof;
B. "pool" means an underground reservoir containing
a common accumulation of crude petroleum oil or natural gas or
both. Each zone of a general structure, which zone is
completely separate from any other zone in the structure, is
covered by the word "pool" as used in the Oil and Gas Act.
"Pool" is synonymous with "common source of supply" and with
"common reservoir";
C. "field" means the general area that is underlaid
or appears to be underlaid by at least one pool and also
includes the underground reservoir or reservoirs containing the
crude petroleum oil or natural gas or both. The words "field"
and "pool" mean the same thing when only one underground
reservoir is involved; however, "field", unlike "pool", may
relate to two or more pools;
D. "product" means any commodity or thing made or
manufactured from crude petroleum oil or natural gas and all
derivatives of crude petroleum oil or natural gas, including
refined crude oil, crude tops, topped crude, processed crude
petroleum, residue from crude petroleum, cracking stock,
uncracked fuel oil, treated crude oil, fuel oil, residuum, gas
oil, naphtha, distillate, gasoline, kerosene, benzine, wash
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oil, waste oil, lubricating oil and blends or mixtures of crude
petroleum oil or natural gas or any derivative thereof;
E. "owner" means the person who has the right to
drill into and to produce from any pool and to appropriate the
production either for the person or for the person and another;
F. "producer" means the owner of a well capable of
producing oil or natural gas or both in paying quantities;
G. "gas transportation facility" means a pipeline
in operation serving gas wells for the transportation of
natural gas or some other device or equipment in like operation
whereby natural gas produced from gas wells connected therewith
can be transported or used for consumption;
H. "correlative rights" means the opportunity
afforded, so far as it is practicable to do so, to the owner of
each property in a pool to produce without waste the owner's
just and equitable share of the oil or gas or both in the pool,
being an amount, so far as can be practicably determined and so
far as can be practicably obtained without waste, substantially
in the proportion that the quantity of recoverable oil or gas
or both under the property bears to the total recoverable oil
or gas or both in the pool and, for such purpose, to use the
owner's just and equitable share of the reservoir energy;
I. "potash" means the naturally occurring bedded
deposits of the salts of the element potassium;
J. "casinghead gas" means any gas or vapor or both
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indigenous to an oil stratum and produced from such stratum
with oil, including any residue gas remaining after the
processing of casinghead gas to remove its liquid components;
K. "produced water" means a fluid that is an
incidental byproduct from drilling for or the production of oil
and gas;
L. "commission" means the oil conservation
commission; [and]
M. "division" means the oil conservation division
of the energy, minerals and natural resources department;
N. "additive" means a chemical or combination of
chemicals added to a base fluid for use in a hydraulic
fracturing treatment and includes proppants;
O. "base fluid" means the continuous phase fluid
type, such as water, used in a hydraulic fracturing treatment;
P. "direct vendor" means a distributor, supplier or
other entity that sells or supplies a chemical product directly
to an operator;
Q. "downhole operation" means oil and gas
operations that are conducted underground;
R. "hydraulic fracturing fluid" means the fluid,
including any base fluid and additives, used to perform a
hydraulic fracturing treatment;
S. "intentionally added" means a per- or
polyfluoroalkyl substance deliberately added during the
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manufacture of a product where the continued presence of the
per- or poly-fluoroalkyl substance is desired in the final
product or one of the product's components to perform a
specific function;
T. "operator" means a person authorized by the
division to operate a unit for an oil or gas well or other oil
or gas facility;
U. "per- or polyfluoroalkyl substance" means a
substance in a class of fluorinated organic chemicals
containing at least one fully fluorinated carbon atom;
V. "proppant" means a material added to a hydraulic
fracturing treatment to prevent the fractures created by the
treatment from closing; and
W. "service company" means an entity that provides
products or services to an operator. "
SECTION 2. A new section of the Oil and Gas Act is
enacted to read:
"[NEW MATERIAL] PROHIBITION ON THE USE OF PER- AND
POLYFLUOROALKYL SUBSTANCES IN DOWNHOLE OIL AND GAS OPERATIONS--
RULES--CIVIL PENALTY.--
A. An operator shall not use a hydraulic fracturing
fluid, drilling fluid, proppant or other additive that contains
an intentionally added per- or polyfluoroalkyl substance in
downhole operations.
B. The commission may adopt rules to carry out the
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provisions of this section.
C. The provisions of this section do not apply to a
product for which federal law governs the presence of a per- or
polyfluoroalkyl substance in the product in a manner that
preempts state authority.
D. A person that violates a provision of this
section may be assessed a civil penalty for a first violation
not to exceed five thousand dollars ($5,000), and for each
subsequent violation, a civil penalty not to exceed ten
thousand dollars ($10,000). Penalties collected pursuant to
this section shall be deposited in the current school fund."
SECTION 3. A new section of the Oil and Gas Act is
enacted to read:
"[NEW MATERIAL] HYDRAULIC FRACTURING DISCLOSURES--
NON-HYDRAULIC FRACTURING DISCLOSURES--PROHIBITION ON THE USE OF
UNDISCLOSED CHEMICALS IN DOWNHOLE OPERATIONS--RULES.--
A. The division shall not issue a permit to drill
an oil and gas well to an operator or authorize any downhole
operations until the operator has completed and filed a
downhole chemical disclosure.
B. An operator that has been issued a permit to
drill by the division as of July 1, 2025 shall make the
disclosures required by this section on or before August 1,
2025.
C. The downhole chemical disclosure required by
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this section shall include:
(1) a description of the well and its
location;
(2) the total volume of water used or expected
to be used in the operator's hydraulic fracturing treatment of
the well or the type and total volume of base fluids expected
to be used in the treatment, if something other than water;
(3) each additive used or expected to be used
in the operator's drilling, hydraulic fracturing or other
downhole operation of the well, including the trade name, the
supplier and a brief description of the intended use of
function of each additive;
(4) each chemical ingredient used or expected
to be used in the operator's hydraulic fracturing, drilling or
other downhole treatment of the well;
(5) the actual or maximum concentration of
each chemical listed in Paragraph (4) of this subsection in
percent by mass; and
(6) the chemical abstracts service number of
each chemical listed in Paragraph (4) of this subsection, if
applicable.
D. A manufacturer, direct vendor or service company
shall share information with the operator necessary to comply
with this section at the request of the operator.
E. If there is a change to the information in the
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downhole chemical disclosure required by this section, an
operator shall submit any changes to the information to the
division within thirty days of knowledge of a change.
F. An operator shall not use a chemical in a
downhole operation that the operator has not disclosed pursuant
to this section or rules adopted pursuant to this section. An
operator shall file a certification with the division that the
operator has not used chemicals that have not been disclosed
pursuant to this section or rules adopted pursuant to this
section within forty-five days after completion of the downhole
operation.
G. If the national hydraulic fracturing chemical
registry website developed by the ground water protection
council and the interstate oil and gas compact commission is
inoperable or does not exist, an operator may comply with the
provisions of this section by submitting the disclosures
required by this section to a publicly accessible website or to
the division, as specified by the division.
H. The division shall adopt rules to require
operators to make chemical disclosures for non-hydraulic
fracturing downhole operations to the division. The
non-hydraulic fracturing disclosures shall be made accessible
to the public.
I. The division may make rules necessary to carry
out the provisions of this section."
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SECTION 4. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.
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