Tuesday, July 22, 2008

State To Set Rio Chama Watershed Drilling Rules

By Jackie Jadrnak
Albuquerque Journal North Staff Writer

"The state will develop new rules for oil and gas drilling in eastern Rio Arriba County in response to challenges from local government officials to wells in that scenic, water-rich section of the county.

Gov. Bill Richardson announced Monday that he has instructed the Energy, Minerals and Natural Resources Department's Oil Conservation Division to come up with regulations that take into account the water resources and traditional water uses in that area.

Unlike the Galisteo Basin in southeastern Santa Fe County, Richardson did not call for a moratorium on drilling while those rules are being written and reviewed.

But Gilbert Gallegos, Richardson's spokesman, said, "This action has the same effect." He said the Oil Conservation Division most likely will hold off acting on permit applications until the new rules are finished.

"It's the governor's preference that we hold off on pending permits," he added.

Gallegos said it would not be practical to put a countywide moratorium on new drilling permits. "You have a different situation here as opposed to the Galisteo Basin," he said. "Rio Arriba County has a history of drilling; there's active drilling going on."

Rio Arriba County officials had asked the Oil Conservation Division to revoke four drilling permits already approved in the Rio Chama watershed and to deny six others that are pending.

Last Friday, the Oil Conservation Division revoked one of those active permits and suspended three others, referring them to the Oil Conservation Commission. Of the six pending applications, one has been withdrawn by Approach Resources, the applicant, and the other five were referred to the Oil Conservation Commission.

Rio Arriba County has imposed a moratorium on new drilling to update its drilling regulations, but that move has been challenged in court. Rule-making on oil and gas drilling belongs in the state's bailiwick, according to a lawsuit filed by Approach Resources.

County officials had been grumbling about Richardson taking no action on Rio Arriba County's concerns, while at the same time issuing executive orders to impose a moratorium on drilling in Santa Fe County. Monday's news release was Richardson's first public action on Rio Arriba's drilling concerns.

"It is important that we identify and thoroughly scrutinize proposed drilling in highly-sensitive areas like portions of the (Rio) Chama watershed," Richardson said in a news release.

This wouldn't be the first time the Oil Conservation Division has developed special rules for a specific area of the state, according to Jodi McGinnis Porter, spokeswoman for the Energy, Minerals and Natural Resources Department. The same thing was done a few years ago for Otero Mesa, she said.

She estimated that it would take two to four months to develop special rules for the Rio Chama watershed in Rio Arriba County. Timing depends on when the matter can get on the Oil Conservation Commission's agenda, she said.

The commission's next meeting is Sept. 11, but "the docket is almost full," she added."

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