SENATE CORPORATIONS AND TRANSPORTATION COMMITTEE SUBSTITUTE FOR

SENATE BILL 413

53rd legislature - STATE OF NEW MEXICO - first session, 2017

AN ACT

RELATING TO OIL AND GAS; AMENDING A SECTION OF THE OIL AND GAS ACT TO LIMIT USE OF THE OIL AND GAS RECLAMATION FUND FOR AGENCY SALARIES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 70-2-37 NMSA 1978 (being Laws 1977, Chapter 237, Section 4, as amended) is amended to read:

     "70-2-37. OIL AND GAS RECLAMATION FUND CREATED--DISPOSITION OF FUND.--There is created the "oil and gas reclamation fund". In addition to other sources, money in the fund may consist of donations. All funds in the oil and gas reclamation fund are appropriated to the energy, minerals and natural resources department for use by the oil conservation division in carrying out the provisions of the Oil and Gas Act. The primary purpose of the oil and gas reclamation fund is to pay for contract services for plugging, remediation and associated restoration work. Any use of the oil and gas reclamation fund for division employee salaries shall be limited to the following percentages of the annual distribution to the oil and gas reclamation fund in each fiscal year by the tax imposed by Section 7-30-4 NMSA 1978:

          A. beginning in fiscal year 2020 and prior to fiscal year 2021, use of the oil and gas reclamation fund for division employee salaries shall not exceed forty-five percent;

          B. beginning in fiscal year 2021 and prior to fiscal year 2022, use of the oil and gas reclamation fund for division employee salaries shall not exceed thirty-five percent;

          C. beginning in fiscal year 2022 and prior to fiscal year 2023, use of the oil and gas reclamation fund for division employee salaries shall not exceed twenty-five percent; and

          D. beginning in fiscal year 2023 and each fiscal year thereafter, use of the oil and gas reclamation fund for division employee salaries shall not exceed fifteen percent."

- 2 -