Surface Owner Protection Act Passes First Committee in NM House

From the NM House Democratic Leadership:
House Bill 827—Surface Owners’ Protection Act, introduced by Rep. Andy Nuñez (D-Hatch), passed out of the NM House Health & Government Affairs Committee on Thursday with a vote of 6 to 0. It will be heard next in the Energy & Natural Resources Committee.

The bill would protect landowners who don’t also own the mineral rights below their land, which is common in New Mexico. Ranchers, farmers and homeowners have had more frequent complaints about damage and reduced property value in recent years because oil and gas drilling has increased.

Rep. Nuñez, cattlemen, environmentalists, and homeowners have been trying to reach a compromise on bill language with oil and gas industry representatives. However, those efforts reached an impasse in the committee meeting today when amendments to HB 827, supported by oil & gas representatives, were not adopted. Rep. Nuñez considered the amendments detrimental to his bill.

“We’ve been negotiating with representatives of the oil and gas industry for over two years and we already had an agreement on the issues that are being raised again today,” said Rep. Nuñez. “This whole situation reminds me of the negotiations between the United States and North Korea. And we’re the U.S.,” he added.

The Surface Owners’ Protection Act would require the oil and gas industry to notify landowners 30 days prior to any oil and gas operations, to describe the operations, and to propose a surface use and compensation agreement. The landowner then has 20 days to accept, negotiate, or reject the offer. If no agreement is reached between the landowner and company, a bond must be posted before operations begin and the landowner retains the right to bring legal action within six years if land damage occurs.

“The relationship between the oil and gas industry and the landowners is out of balance. Ranchers, farmers and other New Mexicans affected by oil and gas development on their land deserve to be respected and compensated,” said Nuñez.

The oil and gas industry in New Mexico has generated millions of dollars in company profits and tax revenues for the state general fund in many years. Since 2000, more than 2,000 new oil & gas well permits have been issued throughout the state per year.

If HB 827 becomes law, New Mexico will join 10 other states, including Texas, Wyoming, and Montana that have passed laws to protect surface owners. Governor Bill Richardson, the New Mexico Cattle Growers’ Association, New Mexico Environmental Law Center, New Mexico San Juan Citizens Alliance, the Oil & Gas Accountability Project and other environmental groups all support the Surface Owner Protection Act.

Editor's Note: For more information, see our previous post. Supporters of this bill are urged to contact members of the House Energy and Natural Resources Committee to encourage their passage of this important legislation.