New Mexico Regulates Oil Fracking Water Amidst Water Scarcity and Industry Wastewater Disposal Challenges

In response to New Mexico’s water scarcity and the oil industry’s increasing wastewater disposal challenges, environmental officials have commenced the process of regulating the treatment and reuse of oil industry fracking water. The state water quality commission has initiated a weeklong series of hearings to establish rules that initially prohibit the release of treated produced water from oil and gas production. However, pilot projects will be considered. Andrew Knight, assistant general counsel to the state Environment Department, emphasized the protective nature of the rule, allowing scientific advancements through pilot and demonstration projects. Protests have emerged, expressing fears about undisclosed contaminants used in the oil and gas drilling process. Simultaneously, oil producers and at least one water service provider have expressed concerns about the absence of specific water quality standards, which they believe could facilitate effective treatment projects. Representatives of the oil and gas industry have submitted expert testimony highlighting the increasing competition for water resources in New Mexico, including municipal, agricultural, industrial, and wildlife needs. The industry’s growing water demands for fracking have also been noted. The industry generates a significant amount of wastewater, with experts estimating four or five barrels of wastewater for every barrel of oil produced. Despite Governor Michelle Lujan Grisham’s proposal for the state to purchase and sell treated water originating from oil and gas drilling byproducts, related legislation stalled in the Legislature earlier this year. Protestors have gathered outside the state Capitol to condemn the proposed oil wastewater rule, citing concerns about environmental pollution and the inadequacy of the proposed strategic water supply as a solution.

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