New Mexico 2025 Regular Session

New Mexico House Bill HB222 Compare Versions

Only one version of the bill is available at this time.

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28	28	HOUSE BILL 222
29	29	57
30	30	TH LEGISLATURE
31	31	-
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33	33	STATE
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35	35	OF
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37	37	NEW
38	38
39	39	MEXICO
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41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Andrea Romero and G. Andrés Romero
48	48	AN ACT
49	49	RELATING TO THE ENVIRONMENT; REQUIRING DISCLOSURES OF CHEMICALS
50	50	USED IN HYDRAULIC FRACTURING OPERATIONS AND DOWNHOLE
51	51	OPERATIONS; PROHIBITING THE USE OF HYDRAULIC FRACTURING FLUIDS,
52	52	DRILLING FLUIDS AND PROPPANTS THAT CONTAIN PER- OR
53	53	POLYFLUOROALKYL SUBSTANCES; PROHIBITING THE USE OF CHEMICALS IN
54	54	DOWNHOLE OPERATIONS THAT HAVE NOT BEEN DISCLOSED; PRESCRIBING
55	55	PENALTIES.
56	56	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
57	57	SECTION 1. Section 70-2-33 NMSA 1978 (being Laws 1935,
58	58	Chapter 72, Section 24, as amended) is amended to read:
59	59	"70-2-33. DEFINITIONS.--As used in the Oil and Gas Act:
60	60	A. "person" means:
61	61	(1) any individual, estate, trust, receiver,
62	62	cooperative association, club, corporation, company, firm,
63	63	.228589.5 underscored material = new
64	64	[bracketed material] = delete
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90	90	partnership, joint venture, syndicate or other entity; or
91	91	(2) the United States or any agency or
92	92	instrumentality thereof or the state or any political
93	93	subdivision thereof;
94	94	B. "pool" means an underground reservoir containing
95	95	a common accumulation of crude petroleum oil or natural gas or
96	96	both. Each zone of a general structure, which zone is
97	97	completely separate from any other zone in the structure, is
98	98	covered by the word "pool" as used in the Oil and Gas Act.
99	99	"Pool" is synonymous with "common source of supply" and with
100	100	"common reservoir";
101	101	C. "field" means the general area that is underlaid
102	102	or appears to be underlaid by at least one pool and also
103	103	includes the underground reservoir or reservoirs containing the
104	104	crude petroleum oil or natural gas or both. The words "field"
105	105	and "pool" mean the same thing when only one underground
106	106	reservoir is involved; however, "field", unlike "pool", may
107	107	relate to two or more pools;
108	108	D. "product" means any commodity or thing made or
109	109	manufactured from crude petroleum oil or natural gas and all
110	110	derivatives of crude petroleum oil or natural gas, including
111	111	refined crude oil, crude tops, topped crude, processed crude
112	112	petroleum, residue from crude petroleum, cracking stock,
113	113	uncracked fuel oil, treated crude oil, fuel oil, residuum, gas
114	114	oil, naphtha, distillate, gasoline, kerosene, benzine, wash
115	115	.228589.5
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143	143	oil, waste oil, lubricating oil and blends or mixtures of crude
144	144	petroleum oil or natural gas or any derivative thereof;
145	145	E. "owner" means the person who has the right to
146	146	drill into and to produce from any pool and to appropriate the
147	147	production either for the person or for the person and another;
148	148	F. "producer" means the owner of a well capable of
149	149	producing oil or natural gas or both in paying quantities;
150	150	G. "gas transportation facility" means a pipeline
151	151	in operation serving gas wells for the transportation of
152	152	natural gas or some other device or equipment in like operation
153	153	whereby natural gas produced from gas wells connected therewith
154	154	can be transported or used for consumption;
155	155	H. "correlative rights" means the opportunity
156	156	afforded, so far as it is practicable to do so, to the owner of
157	157	each property in a pool to produce without waste the owner's
158	158	just and equitable share of the oil or gas or both in the pool,
159	159	being an amount, so far as can be practicably determined and so
160	160	far as can be practicably obtained without waste, substantially
161	161	in the proportion that the quantity of recoverable oil or gas
162	162	or both under the property bears to the total recoverable oil
163	163	or gas or both in the pool and, for such purpose, to use the
164	164	owner's just and equitable share of the reservoir energy;
165	165	I. "potash" means the naturally occurring bedded
166	166	deposits of the salts of the element potassium;
167	167	J. "casinghead gas" means any gas or vapor or both
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196	196	indigenous to an oil stratum and produced from such stratum
197	197	with oil, including any residue gas remaining after the
198	198	processing of casinghead gas to remove its liquid components;
199	199	K. "produced water" means a fluid that is an
200	200	incidental byproduct from drilling for or the production of oil
201	201	and gas;
202	202	L. "commission" means the oil conservation
203	203	commission; [and]
204	204	M. "division" means the oil conservation division
205	205	of the energy, minerals and natural resources department;
206	206	N. "additive" means a chemical or combination of
207	207	chemicals added to a base fluid for use in a hydraulic
208	208	fracturing treatment and includes proppants;
209	209	O. "base fluid" means the continuous phase fluid
210	210	type, such as water, used in a hydraulic fracturing treatment;
211	211	P. "direct vendor" means a distributor, supplier or
212	212	other entity that sells or supplies a chemical product directly
213	213	to an operator;
214	214	Q. "downhole operation" means oil and gas
215	215	operations that are conducted underground;
216	216	R. "hydraulic fracturing fluid" means the fluid,
217	217	including any base fluid and additives, used to perform a
218	218	hydraulic fracturing treatment;
219	219	S. "intentionally added" means a per- or
220	220	polyfluoroalkyl substance deliberately added during the
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249	249	manufacture of a product where the continued presence of the
250	250	per- or poly-fluoroalkyl substance is desired in the final
251	251	product or one of the product's components to perform a
252	252	specific function;
253	253	T. "operator" means a person authorized by the
254	254	division to operate a unit for an oil or gas well or other oil
255	255	or gas facility;
256	256	U. "per- or polyfluoroalkyl substance" means a
257	257	substance in a class of fluorinated organic chemicals
258	258	containing at least one fully fluorinated carbon atom;
259	259	V. "proppant" means a material added to a hydraulic
260	260	fracturing treatment to prevent the fractures created by the
261	261	treatment from closing; and
262	262	W. "service company" means an entity that provides
263	263	products or services to an operator. "
264	264	SECTION 2. A new section of the Oil and Gas Act is
265	265	enacted to read:
266	266	"[NEW MATERIAL] PROHIBITION ON THE USE OF PER- AND
267	267	POLYFLUOROALKYL SUBSTANCES IN DOWNHOLE OIL AND GAS OPERATIONS--
268	268	RULES--CIVIL PENALTY.--
269	269	A. An operator shall not use a hydraulic fracturing
270	270	fluid, drilling fluid, proppant or other additive that contains
271	271	an intentionally added per- or polyfluoroalkyl substance in
272	272	downhole operations.
273	273	B. The commission may adopt rules to carry out the
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302	302	provisions of this section.
303	303	C. The provisions of this section do not apply to a
304	304	product for which federal law governs the presence of a per- or
305	305	polyfluoroalkyl substance in the product in a manner that
306	306	preempts state authority.
307	307	D. A person that violates a provision of this
308	308	section may be assessed a civil penalty for a first violation
309	309	not to exceed five thousand dollars ($5,000), and for each
310	310	subsequent violation, a civil penalty not to exceed ten
311	311	thousand dollars ($10,000). Penalties collected pursuant to
312	312	this section shall be deposited in the current school fund."
313	313	SECTION 3. A new section of the Oil and Gas Act is
314	314	enacted to read:
315	315	"[NEW MATERIAL] HYDRAULIC FRACTURING DISCLOSURES--
316	316	NON-HYDRAULIC FRACTURING DISCLOSURES--PROHIBITION ON THE USE OF
317	317	UNDISCLOSED CHEMICALS IN DOWNHOLE OPERATIONS--RULES.--
318	318	A. The division shall not issue a permit to drill
319	319	an oil and gas well to an operator or authorize any downhole
320	320	operations until the operator has completed and filed a
321	321	downhole chemical disclosure.
322	322	B. An operator that has been issued a permit to
323	323	drill by the division as of July 1, 2025 shall make the
324	324	disclosures required by this section on or before August 1,
325	325	2025.
326	326	C. The downhole chemical disclosure required by
327	327	.228589.5
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355	355	this section shall include:
356	356	(1) a description of the well and its
357	357	location;
358	358	(2) the total volume of water used or expected
359	359	to be used in the operator's hydraulic fracturing treatment of
360	360	the well or the type and total volume of base fluids expected
361	361	to be used in the treatment, if something other than water;
362	362	(3) each additive used or expected to be used
363	363	in the operator's drilling, hydraulic fracturing or other
364	364	downhole operation of the well, including the trade name, the
365	365	supplier and a brief description of the intended use of
366	366	function of each additive;
367	367	(4) each chemical ingredient used or expected
368	368	to be used in the operator's hydraulic fracturing, drilling or
369	369	other downhole treatment of the well;
370	370	(5) the actual or maximum concentration of
371	371	each chemical listed in Paragraph (4) of this subsection in
372	372	percent by mass; and
373	373	(6) the chemical abstracts service number of
374	374	each chemical listed in Paragraph (4) of this subsection, if
375	375	applicable.
376	376	D. A manufacturer, direct vendor or service company
377	377	shall share information with the operator necessary to comply
378	378	with this section at the request of the operator.
379	379	E. If there is a change to the information in the
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408	408	downhole chemical disclosure required by this section, an
409	409	operator shall submit any changes to the information to the
410	410	division within thirty days of knowledge of a change.
411	411	F. An operator shall not use a chemical in a
412	412	downhole operation that the operator has not disclosed pursuant
413	413	to this section or rules adopted pursuant to this section. An
414	414	operator shall file a certification with the division that the
415	415	operator has not used chemicals that have not been disclosed
416	416	pursuant to this section or rules adopted pursuant to this
417	417	section within forty-five days after completion of the downhole
418	418	operation.
419	419	G. If the national hydraulic fracturing chemical
420	420	registry website developed by the ground water protection
421	421	council and the interstate oil and gas compact commission is
422	422	inoperable or does not exist, an operator may comply with the
423	423	provisions of this section by submitting the disclosures
424	424	required by this section to a publicly accessible website or to
425	425	the division, as specified by the division.
426	426	H. The division shall adopt rules to require
427	427	operators to make chemical disclosures for non-hydraulic
428	428	fracturing downhole operations to the division. The
429	429	non-hydraulic fracturing disclosures shall be made accessible
430	430	to the public.
431	431	I. The division may make rules necessary to carry
432	432	out the provisions of this section."
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461	461	SECTION 4. EFFECTIVE DATE.--The effective date of the
462	462	provisions of this act is July 1, 2025.
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