New Mexico 2025 Regular Session

New Mexico Senate Bill SB178 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 underscored material = new
22 [bracketed material] = delete
33 1
44 2
55 3
66 4
77 5
88 6
99 7
1010 8
1111 9
1212 10
1313 11
1414 12
1515 13
1616 14
1717 15
1818 16
1919 17
2020 18
2121 19
2222 20
2323 21
2424 22
2525 23
2626 24
2727 25
2828 SENATE BILL 178
2929 57
3030 TH LEGISLATURE
3131 -
3232
3333 STATE
3434
3535 OF
3636
3737 NEW
3838
3939 MEXICO
4040
4141 -
4242 FIRST SESSION
4343 ,
4444
4545 2025
4646 INTRODUCED BY
4747 Harold Pope
4848 AN ACT
4949 RELATING TO WATER; AMENDING AND ENACTING SECTIONS OF THE
5050 PRODUCED WATER ACT; AMENDING THE WATER QUALITY ACT; AMENDING
5151 THE TAX ADMINISTRATION ACT; RESTRICTING THE USE OF PRODUCED
5252 WATER OFF THE OILFIELD FOR RESEARCH PURPOSES ONLY; IMPOSING A
5353 FIVE-CENT ($.05) PRODUCED WATER FEE ON BARRELS OF PRODUCED
5454 WATER FROM OIL OR GAS WELLS; CREATING THE PLUGGING AND
5555 REMEDIATING ABANDONED WELLS FUND; DEPOSITING MONEY COLLECTED
5656 FROM THE PRODUCED WATER FEE INTO THE PLUGGING AND REMEDIATING
5757 ABANDONED WELLS FUND; MAKING AN APPROPRIATION.
5858 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
5959 SECTION 1. A new section of the Produced Water Act is
6060 enacted to read:
6161 "[NEW MATERIAL] FEES--PRODUCED WATER FEE--IMPOSITION AND
6262 ADMINISTRATION--PLUGGING AND REMEDIATING ABANDONED WELLS
6363 .229637.3 underscored material = new
6464 [bracketed material] = delete
6565 1
6666 2
6767 3
6868 4
6969 5
7070 6
7171 7
7272 8
7373 9
7474 10
7575 11
7676 12
7777 13
7878 14
7979 15
8080 16
8181 17
8282 18
8383 19
8484 20
8585 21
8686 22
8787 23
8888 24
8989 25
9090 FUND--CREATION.--
9191 A. There is imposed on the working interest owners
9292 of an oil or gas well in New Mexico a fee of five cents ($.05)
9393 per barrel of produced water from the oil or gas well, except
9494 for produced water that is:
9595 (1) used for enhanced or secondary oil;
9696 (2) recycled or reused at a well or facility
9797 that is permitted by the oil conservation division of the
9898 energy, minerals and natural resources department; or
9999 (3) for a use regulated by the water quality
100100 control commission pursuant to the Water Quality Act and for
101101 which a permit from the department of environment is required.
102102 B. The fee imposed by this section may be referred
103103 to as the "produced water fee".
104104 C. The "plugging and remediating abandoned wells
105105 fund" is created as a nonreverting fund in the state treasury.
106106 Money in the fund shall be administered by the oil conservation
107107 division to plug abandoned wells and remediate well sites.
108108 Money in the fund is appropriated to the division for plugging
109109 and remediating abandoned wells pursuant to rules promulgated
110110 by the division.
111111 D. The produced water fee shall be collected by the
112112 taxation and revenue department in a manner prescribed by that
113113 department. All money collected by the taxation and revenue
114114 department from the produced water fee shall be deposited in
115115 .229637.3
116116 - 2 - underscored material = new
117117 [bracketed material] = delete
118118 1
119119 2
120120 3
121121 4
122122 5
123123 6
124124 7
125125 8
126126 9
127127 10
128128 11
129129 12
130130 13
131131 14
132132 15
133133 16
134134 17
135135 18
136136 19
137137 20
138138 21
139139 22
140140 23
141141 24
142142 25
143143 the plugging and remediating abandoned wells fund.
144144 E. The produced water fee shall be paid to the
145145 taxation and revenue department on or before the twenty-fifth
146146 day of the month following the month in which the water is
147147 produced.
148148 F. The oil conservation division shall promulgate
149149 rules to require reporting and accounting of each barrel of
150150 produced water for purposes of this section.
151151 G. The taxation and revenue department shall
152152 administer and enforce the collection of the produced water
153153 fee, and the Tax Administration Act applies to the
154154 administration and enforcement of the fee."
155155 SECTION 2. Section 70-13-1 NMSA 1978 (being Laws 2019,
156156 Chapter 197, Section 1) is amended to read:
157157 "70-13-1. SHORT TITLE.--[Sections 1 through 5 of this
158158 act] Chapter 70, Article 13 NMSA 1978 may be cited as the
159159 "Produced Water Act"."
160160 SECTION 3. Section 74-6-4 NMSA 1978 (being Laws 1967,
161161 Chapter 190, Section 4, as amended) is amended to read:
162162 "74-6-4. DUTIES AND POWERS OF COMMISSION.--The
163163 commission:
164164 A. may accept and supervise the administration of
165165 loans and grants from the federal government and from other
166166 sources, public or private, which loans and grants shall not be
167167 expended for other than the purposes for which provided;
168168 .229637.3
169169 - 3 - underscored material = new
170170 [bracketed material] = delete
171171 1
172172 2
173173 3
174174 4
175175 5
176176 6
177177 7
178178 8
179179 9
180180 10
181181 11
182182 12
183183 13
184184 14
185185 15
186186 16
187187 17
188188 18
189189 19
190190 20
191191 21
192192 22
193193 23
194194 24
195195 25
196196 B. shall adopt a comprehensive water quality
197197 management program and develop a continuing planning process;
198198 C. shall not adopt or promulgate a standard or
199199 regulation that exceeds a grant of rulemaking authority listed
200200 in the statutory section of the Water Quality Act authorizing
201201 the standard or regulation;
202202 D. shall adopt water quality standards for surface
203203 and ground waters of the state based on credible scientific
204204 data and other evidence appropriate under the Water Quality
205205 Act. The standards shall include narrative standards and, as
206206 appropriate, the designated uses of the waters and the water
207207 quality criteria necessary to protect such uses. The standards
208208 shall at a minimum protect the public health or welfare,
209209 enhance the quality of water and serve the purposes of the
210210 Water Quality Act. In making standards, the commission shall
211211 give weight it deems appropriate to all facts and
212212 circumstances, including the use and value of the water for
213213 water supplies, propagation of fish and wildlife, recreational
214214 purposes and agricultural, industrial and other purposes;
215215 E. shall adopt, promulgate and publish regulations
216216 to prevent or abate water pollution in the state or in any
217217 specific geographic area, aquifer or watershed of the state or
218218 in any part thereof, or for any class of waters, and to govern
219219 the disposal of septage and sludge and the use of sludge for
220220 various beneficial purposes. The regulations governing the
221221 .229637.3
222222 - 4 - underscored material = new
223223 [bracketed material] = delete
224224 1
225225 2
226226 3
227227 4
228228 5
229229 6
230230 7
231231 8
232232 9
233233 10
234234 11
235235 12
236236 13
237237 14
238238 15
239239 16
240240 17
241241 18
242242 19
243243 20
244244 21
245245 22
246246 23
247247 24
248248 25
249249 disposal of septage and sludge may include the use of tracking
250250 and permitting systems or other reasonable means necessary to
251251 assure that septage and sludge are designated for disposal in,
252252 and arrive at, disposal facilities, other than facilities on
253253 the premises where the septage and sludge is generated, for
254254 which a permit or other authorization has been issued pursuant
255255 to the federal act or the Water Quality Act. Regulations may
256256 specify a standard of performance for new sources that reflects
257257 the greatest reduction in the concentration of water
258258 contaminants that the commission determines to be achievable
259259 through application of the best available demonstrated control
260260 technology, processes, operating methods or other alternatives,
261261 including where practicable a standard permitting no discharge
262262 of pollutants. In making regulations, the commission shall
263263 give weight it deems appropriate to all relevant facts and
264264 circumstances, including:
265265 (1) the character and degree of injury to or
266266 interference with health, welfare, environment and property;
267267 (2) the public interest, including the social
268268 and economic value of the sources of water contaminants;
269269 (3) the technical practicability and economic
270270 reasonableness of reducing or eliminating water contaminants
271271 from the sources involved and previous experience with
272272 equipment and methods available to control the water
273273 contaminants involved;
274274 .229637.3
275275 - 5 - underscored material = new
276276 [bracketed material] = delete
277277 1
278278 2
279279 3
280280 4
281281 5
282282 6
283283 7
284284 8
285285 9
286286 10
287287 11
288288 12
289289 13
290290 14
291291 15
292292 16
293293 17
294294 18
295295 19
296296 20
297297 21
298298 22
299299 23
300300 24
301301 25
302302 (4) the successive uses, including domestic,
303303 commercial, industrial, pastoral, agricultural, wildlife and
304304 recreational uses;
305305 (5) feasibility of a user or a subsequent user
306306 treating the water before a subsequent use;
307307 (6) property rights and accustomed uses; and
308308 (7) federal water quality requirements;
309309 F. shall assign responsibility for administering
310310 its regulations to constituent agencies so as to assure
311311 adequate coverage and prevent duplication of effort. To this
312312 end, the commission may make such classification of waters and
313313 sources of water contaminants as will facilitate the assignment
314314 of administrative responsibilities to constituent agencies.
315315 The commission shall also hear and decide disputes between
316316 constituent agencies as to jurisdiction concerning any matters
317317 within the purpose of the Water Quality Act. In assigning
318318 responsibilities to constituent agencies, the commission shall
319319 give priority to the primary interests of the constituent
320320 agencies. The department of environment shall provide
321321 technical services, including certification of permits pursuant
322322 to the federal act, and shall maintain a repository of the
323323 scientific data required by the Water Quality Act;
324324 G. may enter into or authorize constituent agencies
325325 to enter into agreements with the federal government or other
326326 state governments for purposes consistent with the Water
327327 .229637.3
328328 - 6 - underscored material = new
329329 [bracketed material] = delete
330330 1
331331 2
332332 3
333333 4
334334 5
335335 6
336336 7
337337 8
338338 9
339339 10
340340 11
341341 12
342342 13
343343 14
344344 15
345345 16
346346 17
347347 18
348348 19
349349 20
350350 21
351351 22
352352 23
353353 24
354354 25
355355 Quality Act and receive and allocate to constituent agencies
356356 funds made available to the commission;
357357 H. may grant an individual variance from any
358358 regulation of the commission whenever it is found that
359359 compliance with the regulation will impose an unreasonable
360360 burden upon any lawful business, occupation or activity. The
361361 commission may only grant a variance conditioned upon a person
362362 effecting a particular abatement of water pollution within a
363363 reasonable period of time. Any variance shall be granted for
364364 the period of time specified by the commission. The commission
365365 shall adopt regulations specifying the procedure under which
366366 variances may be sought, which regulations shall provide for
367367 the holding of a public hearing before any variance may be
368368 granted;
369369 I. may adopt regulations to require the filing with
370370 it or a constituent agency of proposed plans and specifications
371371 for the construction and operation of new sewer systems,
372372 treatment works or sewerage systems or extensions,
373373 modifications of or additions to new or existing sewer systems,
374374 treatment works or sewerage systems. Filing with and approval
375375 by the federal housing administration of plans for an extension
376376 to an existing or construction of a new sewerage system
377377 intended to serve a subdivision solely residential in nature
378378 shall be deemed compliance with all provisions of this
379379 subsection;
380380 .229637.3
381381 - 7 - underscored material = new
382382 [bracketed material] = delete
383383 1
384384 2
385385 3
386386 4
387387 5
388388 6
389389 7
390390 8
391391 9
392392 10
393393 11
394394 12
395395 13
396396 14
397397 15
398398 16
399399 17
400400 18
401401 19
402402 20
403403 21
404404 22
405405 23
406406 24
407407 25
408408 J. may adopt regulations requiring notice to it or
409409 a constituent agency of intent to introduce or allow the
410410 introduction of water contaminants into waters of the state;
411411 K. shall specify in regulations the measures to be
412412 taken to prevent water pollution and to monitor water quality.
413413 The commission may adopt regulations for particular industries.
414414 The commission shall adopt regulations for the dairy industry
415415 and the copper industry. The commission shall consider, in
416416 addition to the factors listed in Subsection E of this section,
417417 the best available scientific information. The regulations may
418418 include variations in requirements based on site-specific
419419 factors, such as depth and distance to ground water and
420420 geological and hydrological conditions. The constituent agency
421421 shall establish an advisory committee composed of persons with
422422 knowledge and expertise particular to the industry category and
423423 other interested stakeholders to advise the constituent agency
424424 on appropriate regulations to be proposed for adoption by the
425425 commission. The regulations shall be developed and adopted in
426426 accordance with a schedule approved by the commission. The
427427 schedule shall incorporate an opportunity for public input and
428428 stakeholder negotiations;
429429 L. may adopt regulations establishing pretreatment
430430 standards that prohibit or control the introduction into
431431 publicly owned sewerage systems of water contaminants that are
432432 not susceptible to treatment by the treatment works or that
433433 .229637.3
434434 - 8 - underscored material = new
435435 [bracketed material] = delete
436436 1
437437 2
438438 3
439439 4
440440 5
441441 6
442442 7
443443 8
444444 9
445445 10
446446 11
447447 12
448448 13
449449 14
450450 15
451451 16
452452 17
453453 18
454454 19
455455 20
456456 21
457457 22
458458 23
459459 24
460460 25
461461 would interfere with the operation of the treatment works;
462462 M. shall not require a permit respecting the use of
463463 water in irrigated agriculture, except in the case of the
464464 employment of a specific practice in connection with such
465465 irrigation that documentation or actual case history has shown
466466 to be hazardous to public health or the environment or for the
467467 use of produced water;
468468 N. shall not require a permit for applying less
469469 than two hundred fifty gallons per day of private residential
470470 gray water originating from a residence for the resident's
471471 household gardening, composting or landscape irrigation if:
472472 (1) a constructed gray water distribution
473473 system provides for overflow into the sewer system or on-site
474474 wastewater treatment and disposal system;
475475 (2) a gray water storage tank is covered to
476476 restrict access and to eliminate habitat for mosquitos or other
477477 vectors;
478478 (3) a gray water system is sited outside of a
479479 floodway;
480480 (4) gray water is vertically separated at
481481 least five feet above the ground water table;
482482 (5) gray water pressure piping is clearly
483483 identified as a nonpotable water conduit;
484484 (6) gray water is used on the site where it is
485485 generated and does not run off the property lines;
486486 .229637.3
487487 - 9 - underscored material = new
488488 [bracketed material] = delete
489489 1
490490 2
491491 3
492492 4
493493 5
494494 6
495495 7
496496 8
497497 9
498498 10
499499 11
500500 12
501501 13
502502 14
503503 15
504504 16
505505 17
506506 18
507507 19
508508 20
509509 21
510510 22
511511 23
512512 24
513513 25
514514 (7) gray water is applied in a manner that
515515 minimizes the potential for contact with people or domestic
516516 pets;
517517 (8) ponding is prohibited, application of gray
518518 water is managed to minimize standing water on the surface and
519519 to ensure that the hydraulic capacity of the soil is not
520520 exceeded;
521521 (9) gray water is not sprayed;
522522 (10) gray water is not discharged to a
523523 watercourse; and
524524 (11) gray water use within municipalities or
525525 counties complies with all applicable municipal or county
526526 ordinances enacted pursuant to Chapter 3, Article 53 NMSA 1978;
527527 O. shall coordinate application procedures and
528528 funding cycles for loans and grants from the federal government
529529 and from other sources, public or private, with the local
530530 government division of the department of finance and
531531 administration pursuant to the New Mexico Community Assistance
532532 Act;
533533 P. shall adopt [regulations ] rules to be
534534 administered by the department of environment for the
535535 [discharge, handling, transport, storage, recycling or
536536 treatment for the disposition of treated produced water,
537537 including disposition in road construction maintenance, roadway
538538 ice or dust control or other construction, or in the
539539 .229637.3
540540 - 10 - underscored material = new
541541 [bracketed material] = delete
542542 1
543543 2
544544 3
545545 4
546546 5
547547 6
548548 7
549549 8
550550 9
551551 10
552552 11
553553 12
554554 13
555555 14
556556 15
557557 16
558558 17
559559 18
560560 19
561561 20
562562 21
563563 22
564564 23
565565 24
566566 25
567567 application of treated produced water to land, for activities
568568 unrelated to the exploration, drilling, production, treatment
569569 or refinement of oil or gas ] use of produced water permitted by
570570 the department. Produced water shall be used for research
571571 purposes only, and permits for use shall not allow the:
572572 (1) discharge of produced water; or
573573 (2) use of produced water for agriculture,
574574 irrigation, potable water supplies, aquifer recharge,
575575 industrial processes, environmental restoration, road
576576 construction maintenance, roadway ice or dust control or other
577577 construction; and
578578 Q. may adopt regulations to be administered by the
579579 department of environment for surface water discharges."
580580 SECTION 4. Section 7-1-2 NMSA 1978 (being Laws 1965,
581581 Chapter 248, Section 2, as amended) is amended to read:
582582 "7-1-2. APPLICABILITY.--The Tax Administration Act
583583 applies to and governs:
584584 A. the administration and enforcement of the
585585 following taxes or tax acts as they now exist or may hereafter
586586 be amended:
587587 (1) Income Tax Act;
588588 (2) Withholding Tax Act;
589589 (3) Oil and Gas Proceeds and Pass-Through
590590 Entity Withholding Tax Act;
591591 (4) Gross Receipts and Compensating Tax Act,
592592 .229637.3
593593 - 11 - underscored material = new
594594 [bracketed material] = delete
595595 1
596596 2
597597 3
598598 4
599599 5
600600 6
601601 7
602602 8
603603 9
604604 10
605605 11
606606 12
607607 13
608608 14
609609 15
610610 16
611611 17
612612 18
613613 19
614614 20
615615 21
616616 22
617617 23
618618 24
619619 25
620620 Interstate Telecommunications Gross Receipts Tax Act and Leased
621621 Vehicle Gross Receipts Tax Act;
622622 (5) Liquor Excise Tax Act;
623623 (6) Local Liquor Excise Tax Act;
624624 (7) any municipal local option gross receipts
625625 tax or municipal compensating tax;
626626 (8) any county local option gross receipts tax
627627 or county compensating tax;
628628 (9) Special Fuels Supplier Tax Act;
629629 (10) Gasoline Tax Act;
630630 (11) petroleum products loading fee, which fee
631631 shall be considered a tax for the purpose of the Tax
632632 Administration Act;
633633 (12) Alternative Fuel Tax Act;
634634 (13) Cigarette Tax Act;
635635 (14) Estate Tax Act;
636636 (15) Railroad Car Company Tax Act;
637637 (16) Investment Credit Act, rural job tax
638638 credit, Laboratory Partnership with Small Business Tax Credit
639639 Act, Technology Jobs and Research and Development Tax Credit
640640 Act, Film Production Tax Credit Act, Affordable Housing Tax
641641 Credit Act and high-wage jobs tax credit;
642642 (17) Corporate Income and Franchise Tax Act;
643643 (18) Uniform Division of Income for Tax
644644 Purposes Act;
645645 .229637.3
646646 - 12 - underscored material = new
647647 [bracketed material] = delete
648648 1
649649 2
650650 3
651651 4
652652 5
653653 6
654654 7
655655 8
656656 9
657657 10
658658 11
659659 12
660660 13
661661 14
662662 15
663663 16
664664 17
665665 18
666666 19
667667 20
668668 21
669669 22
670670 23
671671 24
672672 25
673673 (19) Multistate Tax Compact;
674674 (20) Tobacco Products Tax Act;
675675 (21) the telecommunications relay service
676676 surcharge imposed by Section 63-9F-11 NMSA 1978, which
677677 surcharge shall be considered a tax for the purposes of the Tax
678678 Administration Act;
679679 (22) the Insurance Premium Tax Act;
680680 (23) the Health Care Quality Surcharge Act;
681681 (24) the Cannabis Tax Act; and
682682 (25) the Health Care Delivery and Access Act;
683683 B. the administration and enforcement of the
684684 following taxes, surtaxes, advanced payments or tax acts as
685685 they now exist or may hereafter be amended:
686686 (1) Resources Excise Tax Act;
687687 (2) Severance Tax Act;
688688 (3) any severance surtax;
689689 (4) Oil and Gas Severance Tax Act;
690690 (5) Oil and Gas Conservation Tax Act;
691691 (6) Oil and Gas Emergency School Tax Act;
692692 (7) Oil and Gas Ad Valorem Production Tax Act;
693693 (8) Natural Gas Processors Tax Act;
694694 (9) Oil and Gas Production Equipment Ad
695695 Valorem Tax Act;
696696 (10) Copper Production Ad Valorem Tax Act;
697697 (11) any advance payment required to be made
698698 .229637.3
699699 - 13 - underscored material = new
700700 [bracketed material] = delete
701701 1
702702 2
703703 3
704704 4
705705 5
706706 6
707707 7
708708 8
709709 9
710710 10
711711 11
712712 12
713713 13
714714 14
715715 15
716716 16
717717 17
718718 18
719719 19
720720 20
721721 21
722722 22
723723 23
724724 24
725725 25
726726 by any act specified in this subsection, which advance payment
727727 shall be considered a tax for the purposes of the Tax
728728 Administration Act;
729729 (12) Enhanced Oil Recovery Act;
730730 (13) Natural Gas and Crude Oil Production
731731 Incentive Act; and
732732 (14) intergovernmental production tax credit
733733 and intergovernmental production equipment tax credit;
734734 C. the administration and enforcement of the
735735 following taxes, surcharges, fees or acts as they now exist or
736736 may hereafter be amended:
737737 (1) Weight Distance Tax Act;
738738 (2) the workers' compensation fee authorized
739739 by Section 52-5-19 NMSA 1978, which fee shall be considered a
740740 tax for purposes of the Tax Administration Act;
741741 (3) Uniform Unclaimed Property Act (1995);
742742 (4) 911 emergency surcharge and the network
743743 and database surcharge, which surcharges shall be considered
744744 taxes for purposes of the Tax Administration Act;
745745 (5) the solid waste assessment fee authorized
746746 by the Solid Waste Act, which fee shall be considered a tax for
747747 purposes of the Tax Administration Act;
748748 (6) the water conservation fee imposed by
749749 Section 74-1-13 NMSA 1978, which fee shall be considered a tax
750750 for the purposes of the Tax Administration Act; [and ]
751751 .229637.3
752752 - 14 - underscored material = new
753753 [bracketed material] = delete
754754 1
755755 2
756756 3
757757 4
758758 5
759759 6
760760 7
761761 8
762762 9
763763 10
764764 11
765765 12
766766 13
767767 14
768768 15
769769 16
770770 17
771771 18
772772 19
773773 20
774774 21
775775 22
776776 23
777777 24
778778 25
779779 (7) the gaming tax imposed pursuant to the
780780 Gaming Control Act; and
781781 (8) the produced water fee; and
782782 D. the administration and enforcement of all other
783783 laws, with respect to which the department is charged with
784784 responsibilities pursuant to the Tax Administration Act, but
785785 only to the extent that the other laws do not conflict with the
786786 Tax Administration Act."
787787 - 15 -
788788 .229637.3