State’s Pit Rule to be Rewritten by Industry

State’s Pit Rule to be Rewritten by Industry



Independent Petroleum Association representatives in New Mexico are deep into negotiations with the New Mexico Oil and Gas Association on how to present a united stand with regards to their aim of rewriting the state’s pit rule.

The industry groups have been searching for the wording they can agree on before they file the petition challenging the state’s pit rule with the Oil Conservation Commission. According to Karin Foster, the executive director of IPANM, “We’re going to be doing the pit rule sometime this fall.”

Three board members of IPANM were tasked to discuss the wording with the other three board members of NMOGA.

At the annual meeting of IPANM at the Sandia Resort and Casino, Foster said that while they have their differences, they have to discuss them behind closed doors instead of discussing them in public. “Industry really should come to consensus on a rewrite proposal,” said Foster. “The industry’s rewrite needs to help small companies.”

She also said, “We don’t think as it’s written that it really helps the small producers I think we’ll get there.”

Industry officials claim that pit rule 17, which regulates the dumping of wastewater that is being used in oil and gas drilling, is too costly and taxing for oil and gas companies. Implementation of this rule started in 2008 under the administration of Gov. Bill Richardson.

According to Foster, producers of oil and gas wanted more transparency and certainty in the permitting process, as well as reduced administrative burdens.