AN ACT
RELATING TO NATURAL RESOURCES;
PROVIDING FOR A STUDY OF THE ECONOMIC FEASIBILITY OF ADDITIONAL NATURAL GAS
PIPELINE SYSTEMS.
BE IT ENACTED BY THE LEGISLATURE OF
THE STATE OF NEW MEXICO:
Section 1. FINDINGS AND PURPOSE.--
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 on a regular
basis and the results reported to the legislature.
B. The purpose of this act is to provide a mechanism
for monitoring the need for an additional natural gas pipeline in New Mexico.
Section 2. NATURAL GAS PIPELINE STUDY--ADDITIONAL
DUTIES.--
A. The energy, minerals and natural resources
department and the economic development department shall jointly study the need
for additional natural gas pipelines to transport natural gas produced in New
Mexico to additional markets. The study
shall include:
(1) the economic feasibility of the proposed
pipeline;
(2) the necessity of the proposed pipeline; and
(3) alternatives to the proposed pipeline and the
environmental or economic benefit of the alternatives.
B. If, at any time, the study concludes that an
additional natural gas pipeline is necessary, the energy, minerals and natural
resources department shall give notice to all persons the department finds, in
its sole discretion, to be interested in or affected by the pipeline. If, after six months from the notice, the department
finds that the need still exists and persons capable of meeting the need for
the pipeline have not acted or proposed to act in a manner capable of meeting
the need, the energy, minerals and natural resources department and the
economic development department shall report to the legislature on funding
alternatives for the pipeline.
C. The energy, minerals and natural resources
department and the economic development department shall annually report to the
legislature on the results of the study required by Subsection A of this
section and on any activities conducted pursuant to this section.
HB 967
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