New Mexico gas moratorium

A unique region gets special treatment

By FRITZ MAYER This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

"GALISTEO BASIN, NM — The Galisteo Basin has some things in common with the Upper Delaware Valley. It is a pristine area that attracts a lot of tourists. Being home to the Pueblo Indians, it has abundant historical significance. It has spectacular mountain views. As a sub-basin of the Rio Grande River, it is an important source of water for just about all of the 160,000 people living in Santa Fe County, the home of the state capital.

When a company called Tecton Energy purchased mineral rights of 65,000 acres in the basin last year and applied for gas drilling permits, the community took steps to protect their community.

An organization, called Drilling Santa Fe , was formed in June 2007 with the purpose of slowing or halting the drilling. One of the people who founded Drilling Santa Fe is Johnny Micou. He wrote in an email, “A critical factor that we, first, got the county commission and, then, the governor to recognize, is the need for comprehensive baseline studies of hydrology/hydrogeology, archaeology, air, etc. The reasons for the studies are generally two fold. Firstly, if drilling were to occur, then there would be baselines to demonstrate degradation and subsequent accountability. Secondly, the studies may reflect that any degradation would be too damaging, thus there would be red line areas (such as critical management areas) to not permit drilling.”

Through letter writing campaigns and petitions, the group persuaded county leaders and, eventually, the governor of New Mexico, Bill Richardson, to impose moratoriums on drilling in the basin.

On July 15, Richardson extended the six-month moratorium by another six months, and ordered many departments of the government to do studies to determine the impact of drilling and fracking on the area.

Of special interest to people in the Upper Delaware River Valley was that the New Mexico department of tourism has already determined that drilling will negatively impact the tourism industry. Given that tourism is the second largest industry in Sullivan County and the Upper Delaware Valley, the impact on gas drilling here is also likely to be negative." More>>>>

KSFR Interview with Cabinet Secretay Joanna Prukop of Energy, Minerals and Natural Resources

KSFR Local

Rio Arriba drilling rules to be like Otero Mesa's (Podcast)
By: Bill Dupuy

SANTA FE (2008-07-23) -- State oil and gas regulators are beginning the process of writing special rules for drilling in some parts of Rio Arriba County.

Joanna Prukopp is secretary of the energy, minerals and natural resources department. She says the Rio Chama watershed area of Rio Arriba County is similar to other areas where they've written special drilling regulations.

The governor ordered the rules to be written after a state hearing officer found that an oil-development company had placed a well site 40 feet from surface water.

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Santa Fe County Oil and Natural Gas Drilling Ordinance Webpage

Santa Fe County has set up a webpage for the oil and natural gas drilling ordinance (click here). Also, there is a link in the right margin of the DSF website.

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."

Governor seeks draft on oil rules

Phaedra Haywood | The New Mexican

7/21/2008 - 7/22/08

"Governor Bill Richardson Monday directed the state Oil Conservation Division to begin drafting new rules specifically aimed at protecting certain portions of Rio Arriba County.

Thousands of oil and gas wells are already located in Rio Arriba County, but recent interest in drilling the relatively untouched eastern side of the county has raised concerns that about contamination of the streams that feed into the Rio Chama and Rio Grande.

"It is important that we identify and thoroughly scrutinize proposed drilling in highly sensitive areas like portions of the Chama Watershed," Richardson in a statement released Monday.

Rio Arriba passed a four-month moratorium on drilling in April hoping to buy time to rewrite its rules governing oil and gas development. That moratorium is being challenged in state District Court by Approach Resources LLC, which seeks to develop about 90,000 acres worth of mineral rights in the county.

Rio Arriba County planning and zoning director Gabriel Boyle recently called on Richardson to issue a moratorium on drilling in the area, as the governor has done in the Galisteo Basin.

Energy Minerals and Natural Resources spokesman Jodi Porter said based on how long it took to write special rules for Otero Mesa, it will likely be two to four months before the new regulations are done. Asked what would happen to new drilling permits in the meantime, Richardson spokesman Gilbert Gallegos said in a statement: " I assume all pending permits in that area of the county will be on hold so the new rules can be applied."

Porter said she couldn't answer the question without consulting the department's legal department for confirmation. "

Contact Phaedra Haywood at 986-3068 or phaywood@sfnewmexican.com.

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Governor Bill Richardson Requests Special Rules for Oil and Gas Activity in Areas of Rio Arriba County

Governor Richardson News Release:

"SANTA FE – Governor Bill Richardson today directed the Energy, Minerals and Natural Resources Department’s Oil Conservation Division to propose new rules for portions of Rio Arriba County to protect water resources, human health, and the environment. This decision was prompted by recent oil and gas activity in Eastern Rio Arriba County that demonstrated the need to respect the unique hydrologic and cultural resources of this area.

“I have directed the Oil Conservation Division to develop requirements designed to protect our limited water resources and traditional water uses,” Governor Richardson said. “It is important that we identify and thoroughly scrutinize proposed drilling in highly sensitive areas like portions of the Chama Watershed.”

Rio Arriba County is no stranger to oil and gas activity with considerable development in the western half of the county. However recent exploration in the Rio Chama Water shed and the eastern half of the county have demonstrated the need to examine exploration and drilling practices as they apply to this area.

The Oil Conservation Division will immediately begin the process of formulating proposed regulations to implement the Governors directive. These proposals will then be presented to the Oil Conservation Commission which will begin the formal rule making procedures."

KSFR Interview with Rio Arriba County Attorney Adan Trujillo

KSFR Local

July 21 At Noon midday report (Podcast)

SANTA FE (2008-07-21) -- On Monday's midday report:

Airlines have been cutting people and services way back in recent weeks. What are chances that will kill regional commuter jet service to Santa Fe?

We'll talk with a lawyer for Rio Arriba County about next steps, now that state regulators have rescinded one oil drilling permit and put a hold on a number of other applications.

And the Santa Fe Writers Conference is underway and in full swing.

Plus 60 Seconds with Christopher Hagen, local headlines with Dan Gerrity, BBC news.

Host: Bill Dupuy

Agency: Well Site Misrepresented

Albuquerque Journal North :

By Raam Wong
Journal Staff Writer

"State regulators on Friday revoked a controversial oil drilling permit near the headwaters of Tierra Amarilla Creek along the scenic byway connecting T.A. and Tres Piedras.

Critics of the project responded by saying the Oil Conservation Division's reversal highlights the agency's inadequate process for evaluating drilling applications.

On its application, Fort Worth-based Approach Resources had stated that the proposed well site was 100 feet from groundwater and more than 1,000 feet from the nearest surface water. But during a Journal visit to the site — in an alpine meadow along U.S. 64 near the 10,507-foot summit overlooking the famed Brazos Cliffs — the ground was soggy and numerous springs and streams trickled nearby.

Experts for Rio Arriba County testified at an OCD hearing last month that Approach's drilling plans could endanger a vital source of New Mexico's surface waters.

"Everything is downhill all the way to Albuquerque," Rio Arriba County planning and zoning director Gabe Boyle said Friday.

Approach has said it plans to use a closed use system and truck waste off site.

OCD said in a news release Friday that the approval of the application "was based in part on representations from the operator" about the location of the well. However, OCD said the hearing "revealed that the proposed location is within a wetland and approximately 40 feet from surface water sources; therefore, the Oil Conservation Division cancelled the permit."

"I think it's a partial victory to be sure," said Rio Arriba County contract attorney Adan Trujillo, adding that OCD is largely forced to work on the honor system when it considers applications.

Trujillo represented the county in its request to OCD to revoke the permit for the "Woolley Family" site, as well as three others. On Friday, OCD suspended the three previously approved applications and referred them to the Oil Conservation Commission.

Six other applications had been pending. One of them — squeezed between T.A. Creek and an irrigation ditch — has been withdrawn by Approach. The other five applications were also referred to the commission Friday. The commission meets once a month and the Approach permits will be scheduled for the next available docket, OCD said.

Approach is proposing to drill within 90,000 acres near T.A. The county has responded to the proposal with a moratorium on new drilling as a way to buy time to update its drilling regulations.

Rio Arriba officials note that while thousands of wells currently operate on federal and tribal land in the western part of the county, drilling is virtually unheard of in the lush mountains in the eastern part. The mountains receive as much as 38 inches of precipitation annually and generate much of the stream flow that courses through the state.

Approach Resources has sued the county, challenging its authority to enact a moratorium and regulate the industry. Company officials could not be reached for comment Friday afternoon. Similar moratoriums have been enacted by Gov. Bill Richardson and Santa Fe County for drilling on the Galisteo Basin southeast of City Different. Richardson has not weighed in on the Rio Arriba debate.

OCD spokeswoman Jodi McGinnis Porter did not return calls for comment late Friday afternoon."

State halts Rio Arriba drilling plans

Wells near Tierra Amarilla ruled too close to wetlands, surface water sources

Phaedra Haywood | The New Mexican

7/18/2008 - 7/19/08

The state Oil Conservation Division on Friday canceled a permit it had approved for an oil and gas well in Rio Arriba County, saying the proposed location was too close to water sources. The OCD also suspended three other permits it had granted to Approach Operating LLC for wells in the Tierra Amarilla area.

The suspended permits and five others Approach had applied for will be reconsidered by the state Oil Conservation Commission, a three-member board that makes rules for OCD and decides on disputed permits.

Rio Arriba County and Tierra Amarilla-area landowners had challenged the permits on the ground the places Approach wanted to drill were ill-considered and too close to creeks, irrigation ditches and drainages.

According to a statement issued by OCD on Friday, the canceled permit was rescinded because the company had indicated the well would be more than 100 feet from groundwater and more than 1,000 feet from the nearest surface water, when the proposed location was "within a wetland and approximately 40 feet from surface water sources."

"The evidence that was given at the hearing about the Woolly well was pretty compelling," said OCD Director Mark Fesmire. "That is not where a well should be sited." Fesmire said he didn't think Approach had deliberately tried to deceive OCD but it may not have had a clear picture of the area's hydrology when it chose the well site. He said there seemed to be enough confusion and questions about the sensitivity of the other three sites for which Approach had been approved to re-examine those permits as well.

Approach Operating voluntarily pulled one of six other permit applications it had pending with OCD, according to the statement. The other five will be considered by the commission along with the three that were suspended Friday at a hearing that will include public comment. No date for the hearing has been set." More>>>>

Oil Conservation Division Cancels A Permit to Drill in Rio Arriba County

New Mexico Energy Natural Resources Department News Release:

"SANTA FE, NM – The Oil Conservation Division today issued an Order of the Division in two related cases concerning drilling permits in Rio Arriba County. In one case, the Board of County Commissioners of Rio Arriba County challenged four permits issued to Approach Operating, LLC. In the second case, Approach Operating, LLC sought approval of six additional permits.

In the first case, the Order of the Division cancels one previously approved application for permit to drill issued to Approach Operating, LLC, and suspends three previously approved applications to drill, referring them to a hearing before the Oil Conservation Commission.

Approach Operating, LLC was issued a permit to drill a well named the Woolley Family LP #001, API No. 30-39-30397, on October 18, 2007, based in part on representations from the operator that the proposed location was more than 100 feet from ground water and more than 1,000 feet from the nearest surface water. Evidence at the recent hearing revealed that the proposed location is within a wetland and approximately 40 feet from surface water sources; therefore, the Oil Conservation Division cancelled the permit. The three other previously approved applications are suspended and referred to the Oil Conservation Commission.

In the second case, Approach Operating, LLC voluntarily withdrew an outstanding application to drill, a well named Benjamin Trujillo #001 and the division has dismissed it. The five remaining unprocessed applications, which have not yet been evaluated or approved, will also be referred to the Oil Conservation Commission for hearing.

The Oil Conservation Commission meets once a month and these hearings will be scheduled for the next available docket."

SF County drilling regs draft by mid-September

"SANTAFE (2008-07-18) -- Work on Santa Fe County's new zoning and drilling ordinance is moving at a fast pace. The County's moratorium freezing drilling activities in the Galesteo Basin will expire in February 2009 and planners are using this as a target date to complete work on proposed zoning changes affecting growth and oil drilling activities in the basin.

Consultant Bruce Peshoff, from the Kansis-based growth management planners engaged by the county, says they expect to have first drafts of proposed regulations by early September. Regulations will be proposed as alternatives and will be presented to the public in workshops around the 2nd week in September

He said his team is presently amassing data about the Galesteo Basisn from experts in a number of fields to substantiate recommendations to be presented by his team.

Peshoff notes that his team has received a number of comments from the public at workshops and focus groups. About 90 people attended the most recent work shops held Monday and Tuesday of this week in Santa Fe to identify sensitive areas in the Basin and to express their concerns about drilling and future growth and land uses.

When questioned about the adequacy of public involvement in the planning effort, Peshoff said that their goal is to maintain an open relationship with the public. He feels that the workshops, while sparsely-attended, did provide valuable insight to the team. And, they plan additional focus group meeting here in Santa Fe in an effort to identify more comments.

Peshoff feels that strong stances and opinions about what should occur in the basin can be softened with more engagement and discussion with the planning team, particularly once people learn that tools exist to control growtyh and oil and gas activities. He notes that the most effective way to reach the planners with comments is to use the website set up by the team for communication purposes and that it is highly important that they hear from people. The site is OurPlanningWorks.Com/SantaFe.

© Copyright 2008, KSFR"

Tecton president disputes oil official

The Santa Fe New Mexican :

Tecton Energy president Bill Dirks said Wednesday that despite what New Mexico Oil and Gas Association president Bob Gallagher told The New Mexican earlier this week, his company never agreed to partner with the association on a lawsuit challenging state and county moratoriums on oil and gas drilling in the Galisteo Basin.

"We have always stated that we intended to explore our options," Dirks said in a statement Wednesday. "We have spent countless hours consulting with state and county officials, individuals in the Santa Fe area, industry groups including NMOGA, and attorneys in an honest attempt to determine how best to proceed. Tecton ultimately determined that the best course of action does not involve litigation at this time."

Asked about his statement that Tecton had originally agreed to participate in a legal challenge but later backed out, Gallagher said he may have used the wrong wording. "Proper wording should have been: We had worked with them for several months and had assumed that they would be part of it. But we respect (an) individual company's rights to make decisions that are right for that company."

Planning Sessions Round One Comments

DSF received many emails and comments about the Santa Fe County planning sessions this past week. For those who have not participated in similar type planning sessions, it was confusing and yet did not delve into some of the deeper issues. In addition, the planning sessions overall addressed the General Plan, the Galisteo Basin Area Plan, the Capital Improvement District, and the Oil and Gas Amendments to the Land Use Code, which added to the confusion for some. I had the benefit of attending the third workshop following Dr. Freilich’s talk that gave context to the third planning session. The previous planning sessions did not have the benefit of such context. On the other hand, there were those who were pleased with the planning sessions.

Our group identified the entire Galisteo Basin as a Critical Management Area (CMA) due to the hydrogeology, archaeology, air quality, wildlife corridor, view scapes, and so forth. The CMA would be an area that would not permit hardrock or oil & gas extractive activities. We took the development types key code and prohibited the last four, such as I = Industrial developments. It would be inconsistent and incompatible to conduct industrial developments in a CMA and in the fragile ecosystem of the Galisteo Basin. We identified other areas of the basin for certain types of developments, such as Agricultural/Ranching, Village Centers, etc.

Maybe future sessions would have better context? It would be helpful to have earlier notifications of the future sessions and a more detailed agenda so that the community would better understand what to expect.

Community participation is critical to the legitimacy of the process. About 90 attended the three sessions. Although there was overlap at Dr. Freilich’s talk, there were about 65 attendees. There needs to be more citizen participation. Ask yourself, do you have a 50 year vision for Santa Fe County? Do you want the government or Industry to choose the vision of Santa Fe County for you?

If you have suggestions about how to organize the County planning process or other input, please feel free to send an email to drillingsantafe@earthlink.net . Also, Planning Works has set up a website, http://www.ourplanningworks.com/santafe/ that has a Comment Center. Remember, democracy is not a spectator sport.

County Drilling Blocked Again

Albuquerque Journal North
Wednesday, July 16, 2008

By Raam Wong
Journal Staff Writer

"Gov. Bill Richardson has once again moved to block a controversial proposal to drill for oil and gas southeast of Santa Fe, though he appears to have no inclination to step into a similar battle in Rio Arriba County.

On Monday, Richardson signed an executive order extending a state moratorium on drilling activities in Santa Fe County for another six months. Richardson first enacted the moratorium in January following a public outcry over Tecton Energy's plan to drill exploratory wells in the archaeologically rich, water-short Galisteo Basin.

The ban will run through Jan. 24, buying state agencies time to gather information and begin rule makings to protect water, archeological and cultural resources and wildlife on the basin, according to a news release Tuesday.

The governor's hands-on approach in Santa Fe has led to grumbling from some Rio Arriba County officials that he was ignoring a similar threat posed by a plan to drill in the Rio Chama watershed near Tierra Amarilla.

Rio Arriba County has asked the state Oil Conservation Division to revoke four of Approach Resources's current drilling permits and to deny six others that are pending. The county argues drilling could pollute a crucial source of the state's surface waters and scar the pristine landscape along a scenic byway. Richardson himself has not weighed in on the controversy.

Asked Tuesday if the governor would consider a drilling moratorium for Rio Arriba, Richardson spokeswoman Alarie Ray-Garcia referred questions to OCD.

"Right now OCD is in the middle of the hearing process," Ray-Garcia said in an e-mail. "Therefore, at this time, it is more appropriate for OCD to answer questions regarding Rio Arriba."

OCD spokeswoman Jodi McGinnis-Porter said Tuesday: "I think there's a huge difference between Rio Arriba County and the Galisteo Basin."

Unlike the Galisteo Basin's limited history of energy exploration, Rio Arriba County has thousands of active wells, McGinnis-Porter said. Therefore, she said, a drilling moratorium was not warranted and would only negatively impact existing operators.

Rio Arriba officials have countered that while the western part of the county has approximately 11,500 wells on tribal and federal lands, energy exploration is virtually unheard of in the water-rich and scenic mountains in the eastern part of the county where Approach wants to drill.

Rio Arriba planning and zoning director Gabe Boyle said Tuesday it initially appeared that Richardson was unaware of the sensitivity of Approach's proposed drilling sites. But Boyle said the moratorium extension for Santa Fe was an indication that the governor understood that the state's oil and gas regulations were not all that they could be.

Johnny Micou, a leader in the anti-drilling effort in Santa Fe, said it was "very important that Governor Richardson extended the moratorium." The executive order, Micou noted, directs OCD to investigate rules for protecting the basin's fragile ecosystem with public input.

The executive order also directs the following actions:

The state Environment Department to more thoroughly investigate the adoption of air quality regulations to further protect ambient air quality impacts from gas and oil drilling activity.

The Office of the State Engineer to undertake a site-specific analysis of the freshwater supplies in the basin.

The Department of Cultural Affairs to develop a timeline for and begin to undertake the necessary surveys and studies to determine what cultural resources exist within the basin and to establish a resource-based planning process.

The Department of Cultural Affairs to work with the Governor's Office and New Mexico's congressional delegation to identify and secure financial resources to fully implement the 2004 Galisteo Basin Archaeological Sites Protection Act.

The Indian Affairs Department to continue to gather information from state Indian tribes. The executive order gives state agencies until Dec. 1 to submit their reports.

"I remain gravely concerned that oil and gas drilling activities could negatively affect those resources, so I have extended the temporary moratorium to allow further information-gathering and protections to be put in place," Richardson said in a statement.

Santa Fe County has its own drilling moratorium that expires in February. Earlier this year, Tecton responded to the county's and Richardson's moratoriums with a statement threatening to sue, saying the bans amounted to an illegal taking of private property. A spokeswoman for the company said Tuesday that "Tecton has no comment on the moratorium extension at this time."

Local government's ability to temporarily block drilling and regulate industry is already being tested in Rio Arriba County, where Approach has filed suit challenging the county's authority to enact a moratorium and regulate the industry. Santa Fe County and the New Mexico Association of Counties jointly filed a brief in the case, arguing for local government's right to regulate oil and gas activities."

Richardson extends ban on oil, gas drilling

Moratorium on extraction in Galisteo Basin through January

Phaedra Haywood | The New Mexican

7/15/2008 - 7/16/08

"Gov. Bill Richardson has extended a state moratorium on new oil and gas drilling in the Galisteo Basin and Santa Fe County for another six months.

Richardson's order bans new hydrocarbon extraction in the basin through January. It also directs state agencies to develop baseline air and water quality data for the "fragile and ecologically sensitive" basin and write new rules specifically tailored to protecting the area.

"I am committed to protecting ground water, archeological, cultural and wildlife areas in the Galisteo Basin," Richardson said in a news release Tuesday. "I remain gravely concerned that oil and gas drilling activities could negatively affect those resources, so I have extended the temporary moratorium to allow further information gathering and protection to be put in place."

Energy Mineral and Natural Resources Department Secretary Joanna Prukop said her staff will prepare rules specific to the Galisteo Basin area, as has been done in the past for Otero Mesa.

Prukop said she feels regulations already in place for the rest of the state are "very sound for the most part," but the Galisteo Basin area is unique in the sense it is a "wildcat" area where there has been little prior oil and gas exploration.

New Mexico Oil and Gas Association president Bob Gallagher said the moratorium and additional rule-making will increase fuel costs for consumers.

Gallagher said his organization had already begun mounting a legal challenge to the governor's existing six-month moratorium, which was set to end this month, and a yearlong moratorium issued by Santa Fe County in February.

The state and county moratoriums (moratoria) were issued after Tecton Energy applied for permits to drill for oil in the Galisteo Basin last winter.

Gallagher said Tecton Energy had initially agreed to partner with NMOGA in challenging the moratoriums (moratoria), but dropped out last week. Gallagher said his organization has found a new partner, this time a mineral-rights owner, to participate in the lawsuit, which he expects will be filed in the next several weeks.

Tecton Energy president Bill Dirks declined to comment, and Gallagher would not say which mineral-rights owner will join the lawsuit. Anne Potter-Russ, whose family owns the majority of the mineral rights Tecton Energy leased in the basin, said it is not her." More>>>>

Please note: The Tecton applications at OCD are at depths that would suggest a natural gas play. Natural gas is not gasoline. Gasoline is a distillate of oil. Tecton received an OCD permit in October 2006 to perform remedial work on Black-Ferrill #1 and has subsequently temporarily abandoned it. See previous DSF post by clicking here.

Governor Bill Richardson Extends Moratorium on New Oil & Gas Driling in SF County & Galisteo Basin

Governor Richardson's Press Release and Executive Order :

"SANTA FE - Governor Richardson has issued an Executive Order extending by six months a moratorium on new oil and gas drilling in Santa Fe County and the Galisteo Basin. The moratorium will allow more time for government agencies to gather information and begin rulemakings to protect water aquifers, archeological and cultural resources, and wildlife in this ecologically fragile area. The extended temporary moratorium will be in place through January 24, 2009.

“I am committed to protecting ground water, archaeological, cultural, and wildlife areas in the Galisteo Basin,” said Governor Bill Richardson. “I remain gravely concerned that oil and gas drilling activities could negatively affect those resources, so I have extended the temporary moratorium to allow further information gathering and protections to be put in place.”

The Governor’s order means that the Oil Conservation Division of the New Mexico Energy, Minerals and Natural Resources Department will temporarily suspend, for an additional six months, the processing and granting of applications for permits to drill for oil and gas in Santa Fe County and the Galisteo Basin.

Among other things, the Executive Order directs the following additional actions:

• The Oil Conservation Division to investigate appropriate rules, regulations and statutory changes in an effort to protect this fragile and ecologically sensitive area. The Oil Conservation Division should begin to draft any regulations it deems necessary and seek public comment on them.
• The New Mexico Environment Department to more thoroughly investigate the adoption of air quality regulations to further protect ambient (outdoor) air quality impacts from gas and oil drilling activity in Santa FeCounty and the Galisteo Basin.
• The Office of the State Engineer to undertake a site-specific analysis of the fresh water supplies in the Galisteo Basin in order to better protect this precious and valuable resource.
• The Department of Cultural Affairs to develop a timeline for and begin to undertake the necessary surveys and studies to determine what cultural resources exist within the Galisteo Basin and to establish an appropriate and comprehensive resource-based planning process.
• The Department of Cultural Affairs to work with the Office of the Governor and the New Mexico Congressional Delegation to identify and secure financial resources to fully implement P.L. 108-208, the Galisteo Basin Archaeological Sites Protection Act (2004).
• The Indian Affairs Department to continue to serve as the lead agency to seek and gather input from the New Mexico Tribes, Nations, and Pueblos about potential oil and gas drilling in Santa Fe County and the Galisteo Basin.

“We welcome the additional time to propose new rules to allow for a more complete hearing that ensures protection of human health, the environment, and water,” said Joanna Prukop, Cabinet Secretary of the New Mexico Energy, Minerals and Natural Resources Department. “We need additional and more detailed information to fully evaluate the potential impacts of oil and gas drilling on the diverse natural and cultural resources found in the basin.”

Executive Agencies affected by this Executive Order are required to submit their reports to the New Mexico Energy, Minerals and Natural Resources Department no later than December 1, 2008. The EMNRD will compile and submit a consolidated report to the Office of the Governor by January 7, 2009."

Full text of the Executive Order follows: http://www.governor.state.nm.us/orders/2008/EO_2008_038.pdf

Galisteo Basin Preserve Open Space - Public Preference Survey

A graduate student at UNM's Community and Regional Planning program is currently working on a Master's thesis, which is an open space assessment and management plan in the Galisteo Basin Preserve (formerly the Thornton Ranch). An online survey that is focused on gaining baseline data on public preferences for various land uses in the Galisteo Basin Preserve open space area can be accessed by clicking here.

Please take a few moments to answer the survey.

Want to talk about Galisteo Basin drilling? Santa Fe County is listening.

The New Mexico Independent:

Galisteo Basin (© 2008 Photo by Denise Tessier)

By Denise Tessier 07/10/2008

"GALISTEO -- Santa Fe County, making use of the governor's six-month moratorium on oil and gas drilling in the Galisteo Basin to come up with a management plan and ordinances for possible drilling, is holding a series of "listening sessions" to hear public concerns early next week.

Meanwhile, a number of state agencies have recommended that Gov. Bill Richardson extend by at least another six months the moratorium that ends July 24, saying more information is needed to fully assess the impact oil and gas drilling will have on "the unique cultural, archaeological and environmental assets in the region."

Santa Fe County has been working since early this year to come up with county oil and gas ordinances and a management plan, and in the process has brought in both legal and planning experts from out of state to help.

The county says four workshop sessions next week each can accommodate 100 people, so registration is advised by calling the county at 505-986-6279.

The sessions will be held from 2 to 4 p.m. and from 6 to 8 p.m. on both Monday, July 14, and Tuesday, July 15, at the Santa Fe Hilton Ortiz Room, 100 Sandoval St.

Those same two days, the county also will host free informative Brown Bag Lunch Seminars from noon to 1 p.m., also at the Santa Fe Hilton Ortiz Room.

On Monday, Jack Kolkmeyer, director of the Santa Fe County Land Use Department, will talk about "Growth Management Planning in Santa Fe County."

On Tuesday, Robert Freilich, the land-use attorney hired by the county to help it come up with oil and gas rules, will discuss "Impacts of Growth: Tools and Techniques." Freilich, also known as "Dr. Bob," was described in a Santa Fe New Mexican editorial as "one of America's most effective and feared advocates of local control over development." He is a partner in the Los Angeles-based Miller Barondess firm." More>>>>

IF YOU WANT TO RESERVE A PLACE, please read carefully:

The number to call is 986-6279, the County Attorney's Office.

With luck, you will speak to Anna there, and she will confirm the reservation(s) you make.

IF YOU GET A RECORDING, leave your name, day and time you want to reserve, and phone number; Anna will call you back to confirm.

Please be prepared to tell the planners what, IN SPECIFIC, you think should be done in the regulations.

Public Workshop: Community Priorities for Land Use, Oil & Gas and Future Growth

Upcoming Public Workshops - July 14 & 15

Santa Fe County, New Mexico Planning Process for
Galisteo Growth Management Area Plan,
Oil & Gas Regulations, General Plan Update,
and Land Development Regulations Update

Public Workshop: Community Priorities for Land Use, Oil & Gas and Future Growth

Spend an interactive evening participating in small group exercises. Four opportunities to attend, but seating is limited. Reserve your seat by calling (505) 986-6279.

Monday, July 14th, 2:00 pm to 4:00 pm

Monday, July 14th, 6:00 pm to 8:00 pm

Tuesday, July 15th, 2:00 pm to 4:00 pm

Tuesday, July 15th, 6:00 pm to 8:00 pm

Hilton Santa Fe, Ortiz Room, 100 Sandoval Street, Santa Fe.

Reserve your seat by calling (505) 986-6279

For more info., go to: http://www.ourplanningworks.com/santafe/

Santa Fe County Helps Oil Fight

The Albuquerque Journal North :

By Raam Wong
Journal Staff Writer

"Rio Arriba County is getting some help in its battle against an oil and gas company's drilling plans from its neighbor to the south.

Attorneys for Santa Fe County — embroiled in its own drilling controversy — last week filed a legal brief in the oil company's lawsuit against Rio Arriba, arguing local governments do in fact have the authority to regulate the industry.

“This is a matter of critical importance to Santa Fe County, Rio Arriba County and every city and county in the state of New Mexico,” the amicus brief states.

As record gas prices motivate energy companies to explore in frontier areas of northern New Mexico, local officials in places like Mora and Tierra Amarilla are scrambling to update their drilling regulations.

In April, the Rio Arriba County Commission adopted a four-month moratorium on new drilling in response to Approach Resource's proposal to drill 10 wells in the Rio Chama watershed outside Tierra Amarilla.

Approach filed suit against the county in May. The Fort Worth, Texas, company argues the drilling ban amounts to a taking of its mineral rights and that the regulations being written by the county in the meantime are the province of the state, not local government. The company is asking the federal courts to overturn the moratorium.

Santa Fe County has taken a similar tack in response to Tecton Energy's drilling proposal for the Galisteo Basin southeast of Santa Fe The county also imposed a moratorium is meant to buy time to beef up its oil and gas rules, study the basin's resources and ensure the region has adequate public facilities and services. Tecton has also threatened to sue for unlawful taking of its property.

In its brief filed in the Approach lawsuit, Santa Fe County argues local regulations are not pre-empted by state law and asks the court to dismiss the suit. The state Legislature has delegated to counties “police power” — the authority to write laws promoting the health and prosperity of residents, the county brief states.

The fact that the state Oil Conservation Division has regulatory authority over the industry is not sufficient evidence to conclude state authority trumps local government when it comes to oil and gas, the brief states.

State regulations fall short because they do not minimize the off-site impacts of drilling through control of the location of drilling sites, and do not assure public facilities and services are available or protect wetlands, habitats and historical treasures, according to the brief." More>>>>

Agency looks to extend Galisteo Basin drilling ban

The Santa Fe New Mexican:

"Reports indicate more time needed to study possible impact

Phaedra Haywood | The New Mexican

7/3/2008 - 7/4/08

"The New Mexico Department of Energy Minerals and Natural Resources wants to extend the state moratorium on oil and gas drilling in the Galisteo Basin at least six months to equip enforcement regulations with more teeth.

When Gov. Bill Richardson issued an executive order in January banning oil and gas drilling in the Galisteo Basin for six months, he also ordered relevant state agencies to study the issue and prepare reports for him to review the topic.

Those reports were released late Thursday afternoon by the EMNRD, which oversees the Oil Conservation Division, the agency that regulates oil and gas production in New Mexico.

That agency — and several others, including the Indian Affairs Department and the Department of Cultural Affairs — recommended in their reports that no oil and gas drilling be allowed in the Galisteo Basin for a least six months, preferably longer. The agencies say more time is needed to evaluate and prepare for possible impacts of hydrocarbon extraction.

The EMNRD listed six other recommendations, some of which would constitute major changes in the way the oil and gas industry is regulated in New Mexico.

One recommendation would amend the Oil and Gas Act to give the Oil Conservation Division and the Oil Conservation Commission authority to impose more serious penalties on hydrocarbon producers who violate existing state laws.

"It's meaningless to talk about the requirements the OCD/OCC could impose on oil and gas operations if OCD/OCC does not have an efficient and practical way of enforcing those requirements," the report says.

Penalty amounts should be raised so they are in line with penalties in other industries, and the agency should not have to prove violations were "knowing and willful" to impose fines, the report further states.

Amendments should also be made to the duties of the two agencies that would allow them to consider a broader range of factors when issuing drilling permits, according to the recommendations.

"At a minimum ... statutory mandates to protect the environment should be expanded to expressly include the authority to protect surface water and ground water," the report reads.

Richardson enacted the six-month moratorium and ordered the studies after public backlash against a proposed oil drilling project in the Galisteo Basin. The state moratorium on oil and gas drilling in the basin expires at the end of this month, although a county moratorium is in effect until February." More>>>>

Santa Fe County Planning Works Link

Planning Works has set up a weblink for the Santa Fe County planning. Click here.

Energy, Minerals and Natural Resources Releases Galisteo Basin Report

Press Release:

"SANTA FE, NM – Energy, Minerals and Natural Resources Secretary Joanna Prukop releases report on the Galisteo Basin. Governor Bill Richardson issued an Executive Order on the Galisteo Basin on January 24, 2008 imposing a six-month moratorium on new oil and gas drilling in Santa Fe County and the Galisteo Basin. The moratorium allowed designated government agencies to gather information on protecting water aquifers, archeological and cultural resources, and wildlife in the ecologically fragile area. This included a public comment period and an “open house” when members of the public could meet with agency representatives. An electronic copy of the complete report is available at the Energy, Minerals and Natural Resources Department website at: www.emnrd.state.nm.us .

The Executive Order is available at http://www.governor.state.nm.us/orders/2008/EO_2008_004.pdf .

“I’d like to thank all the government agencies that contributed to this report,” said Joanna Prukop, Cabinet Secretary for Energy, Minerals and Natural Resources Department. “The Galisteo Basin is indeed, an ecologically fragile and resource-rich area, and the more information we have on this area will help ensure proper protection of human health, the environment, and ground water.”'

July 2 Lawyer on drilling in Rio Arriba County (Podcast)

KSFR Local

July 2 Lawyer on drilling in Rio Arriba County (Podcast) By: Bill Dupuy SANTA FE (2008-07-02) -- A state hearing officer has finished gathering information on the question of oil and gas drilling in an environmentally sensitive area of Rio Arriba County. Landowners have complained that the oil developer had planned to put as many as 10 new wells too close to water supplies. Some of the complaints also said that the developer planned to put the wells in areas that hadn't been agreed to, in violation of the state's new Surface Owners Protection Act. For their part, county officials were concerned that the developer simply hadn't been honest in the application for permits. As for oil developer Approach Resources, they promise full compliance with state law and safe drilling operations. A decision from the state's Oil Conservation Division could be coming soon over whether to grant those 10 new well permits in Rio Arriba County. We talk with Ted Trujillo, one of the lawyers who represented the county at those hearings.

Planning Meeting Update

The meeting with the planner (see previous post) was about the hydrogeology of the Galisteo Basin. In short, the Galisteo Basin hydrogeology is not fully understood, but what we do know is that it is highly fractured, faulted and complex. The County must have Critical Management Areas (CMA) to prohibit oil and gas drilling in those areas. Also, the oil and gas amendments to the Land Use Code need to not only address oil drilling, but natural gas and coal bed methane extraction, too. What if the Galisteo Basin were to become a natural gas field? What are the cumulative effects in 50 years?