The bill amends and enacts various sections of the Produced Water Act, the Water Quality Act, and the Tax Administration Act, primarily focusing on the management and regulation of produced water from oil and gas wells in New Mexico. A new section is introduced that imposes a five-cent ($0.05) fee per barrel of produced water, which will be collected by the taxation and revenue department and deposited into a newly created "plugging and remediating abandoned wells fund." This fund is designated for the plugging of abandoned wells and remediation of well sites, with the oil conservation division responsible for its administration. The bill also restricts the use of produced water off the oilfield to research purposes only, prohibiting its discharge or use for agriculture, irrigation, and other specified activities.

Additionally, the bill amends existing laws to clarify the applicability of the Tax Administration Act to include the produced water fee, ensuring that it is treated as a tax for enforcement purposes. The amendments to the Water Quality Act include provisions that require the department of environment to establish rules for the use of produced water, emphasizing its limited application for research and the prohibition of its use in various sectors. Overall, the bill aims to enhance the management of produced water while ensuring environmental protection and the proper funding for the remediation of abandoned wells.

Statutes affected:
introduced version: 70-13-1, 74-6-4, 7-1-2