The Senate Conservation Committee convened on February 15, 2025, to discuss significant legislative matters concerning the management of produced water in New Mexico. The primary focus of the meeting was Senate Bill 178, which proposes a 5¢ per barrel fee on produced water and restricts its use to research purposes only.

The meeting began with Mike Miller from the Premium Basin Petroleum Association expressing strong opposition to SB 178. He argued that the proposed fee would impose an unnecessary financial burden on oil and gas operators and could hinder innovation in water treatment and reuse technologies. Miller emphasized that limiting the use of produced water could stifle advancements that aim to repurpose treated water for industrial and agricultural applications, ultimately reducing reliance on freshwater resources. He also raised concerns about the bill's additional regulatory burdens, which could create uncertainty for operators and lead to increased administrative costs.

Lisonbee Riley, public policy director for the New Mexico Chamber of Commerce, echoed these concerns, stating that the bill's restrictions on treated produced water are counterproductive. She highlighted the need for regulatory certainty to encourage investment in the state and warned that the bill could signal a lack of stability for businesses operating in New Mexico.

Jim Winchester from the Independent Petroleum Association of New Mexico also voiced his opposition, noting that the 5¢ per barrel fee was proposed without adequate consultation with the industry. He pointed out that the bill could disproportionately impact smaller producers and questioned its legality. Winchester warned that passing the bill could jeopardize efforts to reuse produced water safely and efficiently, which has been a focus since the introduction of HB 546 in 2019.

As the meeting progressed, it was noted that there was limited public opposition, with only one individual remaining online to express dissent. The committee members were then invited to respond to the discussions, with Senator Scott indicating a desire to address the fundamental issues surrounding the bill.

In conclusion, the Senate Conservation Committee's meeting highlighted significant concerns regarding SB 178, particularly its potential impact on the oil and gas industry and the management of water resources in New Mexico. The discussions underscored the need for a balanced approach that fosters innovation while ensuring sustainable practices in water management. Further deliberations and responses from committee members are anticipated as the legislative process continues.