Jim Winchester Executive Director | Independent Petrolium Association of New Mexico
IPANM and the New Mexico Oil and Gas Association (NMOGA) have submitted a motion to dismiss a rulemaking hearing led by the Oil Conservation Commission (OCC). The hearing concerns proposed changes to Financial Assurance Bonding levels and the OCC’s new authority to cancel well acquisitions.
According to industry representatives, including lawyers for IPANM and NMOGA, the motion is grounded in questions about whether the OCC has legal authority to set bonding rates without specific statutory backing. "Lawyers for industry believe there are legitimate grounds to question whether the OCC is overstepping its authority on setting these new bonding levels and additional rules," states the motion.
The groups also point to past precedent, noting that in 2018, changes to financial assurance requirements were made only after legislative approval through SB189. This suggests that similar statutory action may be required before implementing further changes.
The OCC is expected to decide on this motion either prior to or at the start of its upcoming rulemaking hearing scheduled from October 20th through November 7th.
