New Mexico Moves Forward On CO2 Sequestration Efforts

Two weeks ago, the New Mexico Energy, Minerals and Natural Resources Department, Oil Conservation Division, held its first Stakeholder’s Meeting to discuss GreenHouse Gas emissions (GHGs) (i.e., carbon dioxide and methane) by the oil and gas industry.  This meeting was mandated by Governor Bill Richardson’s recent executive orders requiring reductions in GHGs in New Mexico.

E.O. 2005-033 and E.O. 2006-69 require certain agencies, including the Oil Conservation Division, to identify opportunities and propose rules for carbon dioxide (CO2) capture and sequestration. E.O. 06-69 specifically provides that, “NMED shall conduct a study of voluntary and mandatory mechanisms for reducing greenhouse gas emissions from oil and gas processes by January 1, 2008….Proposed mechanisms shall reduce methane emissions in oil and gas operations by 20% by 2020 and carbon dioxide emission from fuel combustion.”

A summary of the Governor’s Climate Change Advisory Group report included several pie graphs showing that fossil fuels contributed 24% of the GHG emissions numbers in the total geographic area of the state.  These numbers, however, are likely not accurate because they were based on limited volunteer samples offered by the oil and gas industry multiplied by the number of wells in the state. Future stakeholder meetings will focus on obtaining more accurate data from industry in order to set an appropriate baseline from which realistic benchmarks may be set to meet the Governor’s goals. This climate change initiative will be a challenge and an opportunity for the oil and gas industry. The next meeting has been set for April 25.

(Contributed by Ocean Munds-Dry, a Natural Resources Attorney in the Santa Fe Office)