As New Mexico debates regulations and revenue related to the oil and natural gas industry, conflicting assertions have resulted in a confusing jumble of claims and counter-claims. But by examining the broader context of fossil fuel energy development in the state, policy options that meet important goals for New Mexico become clear.
Regulations and tax policy should at a minimum have three goals: protect the health and safety of citizens and the environment; sustain the oil and natural gas industry as a productive part of New Mexico’s economy; and provide revenue to help the state to pay for essential services.
Right now, the state is more successfully doing the first two things while struggling with revenue and spending decisions that affect basic government services.
There is little disagreement that the state should provide for the health and safety of its citizens and protect the environment. Nor is there much disagreement that preventative approaches like strong pit rule standards are a more effective way to do this than remediating damage caused by chemicals and other drilling substances to soil and water.
Put another way, the cost of industry compliance with the state’s pit rule is a good value for taxpayers.
But will such regulations push industry from the state? The answer is no." More>>>>
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