SANTA FE, N.M. — The Court of Appeals in New Mexico has confirmed regulations intended to lessen emissions in one of the leading states for oil and gas production.
The legal matter revolved around a rule that was put in place by state authorities in 2022, aimed at reducing pollutants which, when exposed to sunlight, contribute to the formation of ground-level ozone, commonly recognized as smog. Elevated levels of ozone are known to result in respiratory ailments such as asthma and chronic bronchitis.
The administration of Democratic Governor Michelle Lujan Grisham has consistently emphasized that implementing the ozone precursor regulation, together with restrictions on methane emissions from the industry, is vital for addressing climate change and achieving federal clean air compliance.
James Kenney, the Secretary of New Mexico’s Environment Department, noted that the recent ruling reinforced the legitimacy of the regulation’s development and highlighted the strong evidence supporting its endorsement by the regulatory bodies.
“These regulations are here to stay,” Kenney stated, urging the industry to redirect its resources away from legal disputes and towards adhering to New Mexico’s environmental standards.
The Independent Petroleum Association of New Mexico has contested the ruling, claiming it disproportionately impacts smaller independent operators.
“The administration must cease its relentless pressures that threaten the existence of smaller, family-owned operators based in New Mexico,” expressed Jim Winchester, the association’s executive director, in correspondence with local media.
The industry group is now contemplating their legal alternatives.
According to the regulations, oil and gas operators are mandated to monitor emissions of nitrogen oxides and volatile organic compounds, which are precursors to ozone, and must conduct regular inspections for leaks and make necessary repairs.
The regulation pertains to eight counties: Chaves, Doña Ana, Eddy, Lea, Rio Arriba, Sandoval, San Juan, and Valencia—where ozone levels have approached at least 95% of the federal ambient air quality benchmarks. Among these areas are significant production zones in the San Juan Basin, located in northwestern New Mexico, as well as the Permian Basin, which stretches across the New Mexico-Texas boundary.
The industry association had previously contended against the inclusion of Chaves and Rio Arriba counties in the rule’s scope. However, the court ruled that these counties fall within broader regions that indeed satisfy the 95% threshold.