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Legislation Detail
HB 259 OIL & GAS ACT VIOLATION PENALTIES
Sponsored By: Rep Matthew McQueen

Actions: [3] HENRC/HJC/HAFC-HENRC

Scheduled: 02-18 08:30 am Rm 317

Summary:
 House Bill 259 (HB 259) increases civil penalties assessed for violations of the Oil and Gas Act. It increases certain application fees in the Oil and Gas Act and adjusts them for inflation. 

 
Legislation Overview:
 House Bill 259 (HB 259) increases civil penalties assessed for violations of the Oil and Gas Act in Section 70-2-31 NMSA 1978 not to exceed ten thousand dollars ($10,000) per day of noncompliance for each violation. If there is a risk to public health and safety or environmental harm or the harm continues beyond the time indicated in the notice or order then the civil penalty increases will not exceed twenty-five thousand dollars ($25,000) per day. It increases the total maximum penalty the OCC or the OCD may assess after a hearing to three million six hundred fifty thousand dollars ($3,650,000).
HB 259 also increases the fees for most permits in Section 70-2-39 NMSA 1978 (Fee Adjustments—Oil Conservation Division Systems and Hearings Fund) to one thousand
five hundred dollars ($1,500) and for certain applications for administrative action to four hundred fifty dollars ($450). It provides a formula for the adjustment of these fees for inflation based on the consumer price index beginning on 1 January 2027 and on each 1 January thereafter. It defines consumer price index.
HB 259 expands the purposes for which the Oil Conservation Division Systems and Hearings Fund may be used to incorporate online data reporting and visualization systems; technological and equipment upgrades; efficient and transparent implementation and enforcement of the OGA including hiring of technological personnel.
HB 259 would be effective 1 July 2025. 




 
Current Law:
 There is no provision for inflation. Civil penalties for violation are two thousand five hundred dollars ($2,500) per day; failure to comply after a certain time, ten thousand dollars ($10,000); limit pf penalty OCC or OCD can impose after a hearing, two hundred thousand dollars ($200,000) The OCD fees for permits generally are five hundred dollars ($500); fees for certain applications for administrative action, one hundred fifty dollars ($150).


 
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