Wednesday, July 30, 2008

Oil Firm Drops Drilling Lawsuit



The Albuquerque Journal North :

By Raam Wong And Kiera Hay
Journal Staff Writer

'"A Texas-based oil company has dropped its lawsuit challenging Rio Arriba County's moratorium on new drilling.

The action is a partial victory for several northern New Mexico counties seeking to regulate the oil and gas industry as exploration increasingly moves into sensitive areas, such as the lush mountains of northeastern Rio Arriba and the Galisteo Basin southeast of Santa Fe.

"Our county has felt that there were voids in (state Oil Conservation Division) regulations that weren't being addressed and certainly counties have the right to regulate and to make sure we protect our residents," said Alfredo Montoya, chairman of the Rio Arriba County Commission.

The commission adopted the four-month drilling ban in April in response to Approach Resource's plan to drill in the scenic, water-rich foothills and mountains east of Tierra Amarilla. The moratorium was designed to buy the county time to update its drilling regulations to protect the region, which drains into Tierra Amarilla Creek, a Rio Chama tributary.

Rio Arriba is preparing to extend the moratorium by as much as six months, Montoya said.

Meanwhile, Santa Fe County has taken similar action in enacting its own drilling ban, one that the New Mexico Oil and Gas Association says it plans to challenge in court." More>>>>

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