Elaine Sena-Cortez, a New Mexico state representative, said that GOP House committee members have criticized House Bill 35 (H.B. 35) as a restriction on the state's oil and gas operations. They warned it could lead to job losses and cuts in education funding. This statement was made in a press release on February 4.
"House Bill 35 would force the oil and gas industry out of our state," said Sena-Cortez. "A bill that will result in fewer dollars to educate our students and fewer jobs for hard working New Mexicans is not a serious proposal."
House Bill 35, titled the "Children's Health Protection Zones," proposes restricting oil and gas operations within one mile of designated recreational areas in New Mexico. The bill requires operators to submit inventories and maps identifying operations within these zones by January 1, 2026, and develop leak detection and response plans to be implemented by July 1, 2026. Operators found in violation of these requirements could face civil penalties of up to $30,000 per day, not exceeding $200,000 in total.
According to Gallagher and Kennedy, as of March 2024, New Mexico produced approximately 2.014 million barrels of oil daily, accounting for 15.3% of the United States’ total production. This output makes New Mexico the second-largest crude oil producer in the nation, behind Texas. The state’s oil and gas industry contributes over $4 billion annually in revenue through severance and property taxes, as well as royalties and rental income from state-owned lands.
The Federal Reserve Bank of Dallas reports that New Mexico's GDP reached $135 billion in 2023, with the energy sector contributing significantly to this growth. However, the state's economic output remains relatively small compared to neighboring Texas, which had a GDP of $2.6 trillion in the same year. Despite record-high levels of energy production, economic growth in New Mexico has slightly cooled due to oil price volatility affecting the measurement of real (inflation-adjusted) GDP.
Sena-Cortez is described as a lifelong New Mexico resident who is a business owner, professor, and consultant dedicated to economic growth, small business development, and higher education advocacy.
