New Mexico lawmakers seek new powers for oil regulators

SANTA FE, N.M. (AP) — Efforts to increase the enforcement powers of New Mexico oil and natural gas regulators over drilling and environmental violations has earned an initial nod of approval from a panel state lawmakers. A state Senate panel endorsed legislation Thursday that would restore the state's authority to impose administrative penalties of up to $10,000 when aquifers are polluted or threatened by drilling operations, and lesser fines for other violations of the New Mexico Oil and Gas Act. Texas allows daily penalties of $10,000. Major oil companies are showing renewed interest in Permian Basin deposits in southeastern New Mexico amid a string of multi-billion dollar lease acquisitions. A 2009 state Supreme Court decision held that the New Mexico Oil Conservation Division was not authorized to assess administrative penalties and must pursue lawsuits instead.