This bill amends the Oil and Gas Act in New Mexico to increase civil penalties for violations and adjust application fees for permits and hearings related to oil and gas operations. Specifically, the bill raises the maximum civil penalty for noncompliance from $2,500 to $10,000 per day for each violation, and up to $25,000 per day if the violation poses a risk to public health or significant environmental harm. Additionally, the overall cap on penalties assessed by the division or commission is increased from $200,000 to $3,650,000. The bill also introduces new requirements for notices of violation, including the need to specify the nature of the violation, require immediate compliance, and inform violators of potential sanctions.

Furthermore, the bill adjusts various application fees, increasing them significantly to account for inflation. For example, the fee for a non-federal and non-Indian permit to drill is raised from $500 to $1,500, and the fee for an administrative hearing is increased from $500 to $1,500 as well. The bill establishes a mechanism for annual inflation adjustments to these fees starting in 2027, ensuring they remain aligned with economic changes. The effective date for these provisions is set for July 1, 2025.

Statutes affected:
introduced version: 70-2-31, 70-2-39