Saturday, March 1, 2008

"Drilling's hidden costs" -- SantaFeNewMexican.com

From the SantaFeNewMexican.com, "Fesmire said the fines for violating Oil Conservation Division rules are "a little anemic."

"It's the same fine structure as in the 1935 statues," he said. "You could really get compliance with a $1,000 fine in 1935. Not now."' (for the full article, click here)

From the same edition, another article, "The six people responsible for inspecting the 23,000 oil and gas wells in the San Juan Basin meet early every morning to talk about what they did the day before. ...

Funding for the Oil Conservation Division was cut by $302,000 during the most recent legislative session.

The division staff and others, including Gov. Bill Richardson, have suggested the cuts were retaliation for the tougher environmental regulations proposed by the division.

"The public wants us to do our jobs. But our hands are tied with political things," Perrin said. "There's not enough money, not enough trucks; gas is too expensive."' (click here for the article, "Inspectors struggle to monitor vast area")

In a related article from the denverpost.com, '"Capital is a coward," said Bob Gallagher, president of the New Mexico Oil and Gas Association. "It will always follow the path of least resistance, where there are fewer rules, less risk."


But regulators say drillers and producers should brace themselves for the prospect of new regulations throughout the West leaving few places "of least resistance."

"The industry is going to have to come to grips with the fact that the environment has to be protected, and in the arid West we have to protect water," New Mexico's Prukop said." (for full article, click here)


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