Monday, January 4, 2010

Don't Blame the Pit Rule for Loss of Revenue, State Budget Crisis

Albuquerque Journal

By Joanna Prukop

"Former Secretary, New Mexico Energy, Minerals and Natural Resources Department

Don't Blame the Pit Rule for Loss Of Revenue, State Budget Crisis

New Mexico's oil and gas industry generated $1.8 billion for the state's general fund last year and employed thousands of New Mexicans. It is critical to our state's economy and so is our responsibility to protect the environment, wildlife, natural resources, and especially precious ground water.

Industry lobbyists and some politicians blame the Pit Rule, adopted by the New Mexico Oil Conservation Commission in 2008, for the state's current budget crisis and the drop in state revenues and claim that the Pit Rule is driving the oil and gas industry out of the state. This is not true and only represents half the story. Relevant facts are conveniently omitted, like the global crash in oil and gas prices and that neighboring states are also seeing reduced oil and gas drilling activity. There have been no attempts by these lobbyists and politicians to enlighten the public as to what the Pit Rule regulates and protects.

Here is the whole story:>>>>"

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