In a new story published today, EnergyWire‘s Mike Soraghan delves into the lack of legal authority state regulators have in New Mexico to properly regulate oil and gas operators. Below is an excerpt from the article:
“New Mexico oil and gas regulators haven’t fined a single driller for violations this year. They didn’t last year, either. Or the year before that.
That’s not for a lack of problems at well sites. Since 2010, inspectors recorded more than 3,600 violations.
Instead, it’s because the state Oil Conservation Division hasn’t had the authority to levy fines since March 2009. So when inspectors find a problem, there’s not much they can do except ask the driller to fix it.
‘We play a lot of poker,’ explained Daniel Sanchez, the agency’s chief of enforcement.
These facts from New Mexico are yet more evidence that casts doubt on the strength of state level regulation in oil producing Western states.
EnergyWire subscribers can read the full story here.