45th legislature - STATE OF NEW MEXICO - second session, 2002

RELATING TO NATURAL RESOURCES; PROVIDING FOR A LEGISLATIVE STUDY OF THE ECONOMIC FEASIBILITY OF ADDITIONAL NATURAL GAS PIPELINE SYSTEMS; MAKING AN APPROPRIATION.

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

Section 1. FINDINGS--LEGISLATIVE STUDY--APPROPRIATION.--

A. The legislature finds that:

(1) the natural gas industry is an important contributor to the New Mexico economy, as a significant source of both employment and direct state revenues;

(2) New Mexico ranks second among the states in onshore natural gas reserves and will likely continue to be a major producer of natural gas for the foreseeable future;

(3) a study funded by Laws 1996, Chapter 7 concluded that an additional pipeline capable of transporting New Mexico natural gas to additional markets was, at that time, not economically feasible; and

(4) the study should be updated to see if such a natural gas pipeline is economically feasible and otherwise in the best interests of the state at this time.

B. The New Mexico legislative council shall assign the appropriate interim committee to conduct the natural gas pipeline feasibility study. Upon approval of the work plan and budget by the legislative council, the committee shall:

(1) pursuant to the Procurement Code, select a person to study the economic feasibility and the costs and benefits of financing, constructing and operating a natural gas pipeline to transport New Mexico natural gas to additional markets. The study shall include:

(a) projections for the production volumes and price of New Mexico natural gas;

(b) projections for the future demand for New Mexico natural gas in California and the rest of the western United States;

(c) an analysis of the ability of existing natural gas pipelines to meet the future transportation needs;

(d) the likelihood that a new natural gas pipeline would be built without state economic incentives;

(e) alternatives for the state to provide incentives and otherwise to assist with the funding and building of the pipeline;

(f) any potential environmental and social costs of the pipeline; and

(g) any other issues identified by the committee;

(2) receive periodic progress reports from the person performing the study and take the responsibility for the overall direction of the study; and

(3) forward the results of the study with the recommendations and comments of the committee to the governor and the legislature by December 15, 2002 for consideration by the first session of the forty-sixth legislature.

C. The public regulation commission, the commissioner of public lands, the energy, minerals and natural resources department, the economic development department and every other state agency and political subdivision of the state shall, upon request, furnish and make available to the committee documents, material or information requested by the members of the committee or its staff.

D. Seventy-five thousand dollars ($75,000) is appropriated from the general fund to the legislative council service for expenditure in fiscal years 2002 and 2003 for the purpose of carrying out the provisions of this act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2003 shall revert to the general fund.