HOUSE MEMORIAL 82

52nd legislature - STATE OF NEW MEXICO - second session, 2016

INTRODUCED BY

James R.J. Strickler

A MEMORIAL

REQUESTING THE NEW MEXICO CONGRESSIONAL DELEGATION TO REPRESENT THE STATE'S INTERESTS AND REQUEST THAT THE FEDERAL GOVERNMENT REEVALUATE THE OVERALL ECONOMIC IMPACT OF THE UNITED STATES BUREAU OF LAND MANAGEMENT'S PROPOSED OIL AND GAS ONSHORE ORDERS 3, 4, 5 AND 9.

     WHEREAS, companies operating in New Mexico want to be in compliance and to report and pay their federal royalties correctly as required by federal regulations; and

     WHEREAS, in January 2014, the New Mexico tax research institute released a study entitled Fiscal Impacts of Oil and Natural Gas Production in New Mexico and, according to the study, thirty-one and one-half percent of New Mexico's general fund revenues were attributed to the oil and natural gas industry for fiscal year 2013; and

     WHEREAS, the New Mexico general fund is the primary source of funding for the operating costs of public schools and higher education, in addition to state public welfare programs, environmental protection, tourism support, state-led economic development efforts and many other functions of state government; and

     WHEREAS, the United States bureau of land management is currently considering proposed changes to its onshore orders 3, 4, 5 and 9 that would greatly add to the regulatory burden of oil and gas production in New Mexico without clear benefits attributable to the rule changes; and

     WHEREAS, proposed changes to onshore order 3 would redefine commingling agreements that have been in place for decades and would result in curtailment of production, as a number of wells would be shut in; and

     WHEREAS, proposed changes to onshore order 4 for oil measurement and to onshore order 5 for gas measurement requesting changes to metering and measurement would result in minimal accuracy improvements and would negatively impact existing operations; and

     WHEREAS, proposed changes to onshore order 9, the venting and flaring rule, would be duplicative of emission regulations required by the federal environmental protection agency and would have less than a one percent return on effort; in fact, implementation of the venting and flaring rule may result in the loss of oil and gas reserve production on federal and Indian lands; and

     WHEREAS, tribal interests have significant issues at stake, and their views have not been fully incorporated into the decisions and proposals to date; and

     WHEREAS, the proposed federal onshore orders 3, 4, 5 and 9 rule changes have not been properly vetted to consider the economic impact to the state of New Mexico and the funding of its educational system;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that New Mexico's congressional delegation be requested to urge the United States bureau of land management to reevaluate the overall economic impact of the proposed changes to the onshore orders 3, 4, 5 and 9 and to quantify what the bureau of land management expects to improve in the royalty accuracy process; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the New Mexico congressional delegation, the president of the United States, the United States secretary of the interior, the United States secretary of energy, the majority leader of the United States senate and the speaker of the United States house of representatives.

- 3 -