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 maximum civil penalty for noncompliance is raised from $2,500 to $10,000 per day for each violation, and if the violation poses a risk to public health or significant environmental harm, the penalty can increase to $25,000 per day. 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 increases various application fees, such as the fee for a non-federal and non-Indian permit to drill, which rises from $500 to $1,500, and the fee for an administrative hearing, which increases from $500 to $1,500 as well. The bill allows for annual adjustments of these fees based on inflation starting January 1, 2027. It also establishes the "oil conservation division systems and hearings fund" to manage the fees collected, ensuring that funds are used for technological upgrades and efficient enforcement of the Oil and Gas Act. The provisions of this act are set to take effect on July 1, 2025.

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