Stricter Drilling Rules Proposed

Albuquerque Journal North

Wednesday, November 19, 2008

" Stricter Drilling Rules Proposed

By Raam Wong
Journal Staff Writer

State regulators are proposing new rules that would require oil and gas companies to jump through more hoops before they can drill in the Galisteo Basin.

The rules — which would apply only to the basin and Santa Fe County — would mark a significant change from how the Oil Conservation Division evaluates drilling applications.

Currently, operators submit applications for individual wells — that means the division does not weigh the cumulative impact of multiple drilling sites on an area. Moreover, the OCD's focus in considering applications is on correlative rights.

In other words, it makes sure a would-be operator does not take more than its fair share of oil or gas.

The rules put forward this month would take a more holistic approach. Operators would have to submit a plan identifying their best guess for what part of the area will be productive, as well the number and location of the exploratory wells.

The company would also have to produce information about the region, including a report detailing the area's soils, geology and water.

And while drilling permits are usually handled administratively, under the Galisteo Basin rules, the plan would need to go before a public hearing. After that, the division director could give the green light or impose conditions meant to prevent waste and protect correlative rights, as well as protect fresh water, human health and the environment.

The proposal was developed in response to Tecton Energy's controversial proposal to drill exploratory wells in the basin. Residents fear drilling there could pollute water, ruin the scenic landscape, devalue homes and bring more truck traffic to the area.

Gov. Bill Richardson responded in January by ordering new regulations to protect the basin's resources and residents.

The executive order led to a report this summer that raised many concerns about drilling, including its potential impact on water and archaeological sites.

The report underscored the need for state regulators to “know more details before approving a drilling plan for the Galisteo Basin,” said Joanna Prukop, secretary of Energy, Minerals and Natural Resources Department.

The Oil Conservation Commission is scheduled to consider the rules at 9 a.m. Dec. 11 at Porter Hall, 1220 S. St. Francis Drive." More>>>>