The Senate Conservation Committee convened on February 15, 2025, to discuss critical issues surrounding the management of produced water in New Mexico. The meeting focused on the implications of a proposed bill aimed at incentivizing the reuse of produced water, a byproduct of oil and gas extraction.

One of the primary concerns raised during the session was the current low rate of produced water reuse, with only 27% being reinjected or reused, while approximately 72.9% is not reused and is instead injected into the ground. A senator questioned whether any modeling had been conducted to assess how an increase in fees might influence industry behavior towards adopting technologies for greater water reuse. The response indicated that no such modeling had been performed, but acknowledged the importance of exploring this issue further.

The discussion highlighted the economic factors influencing the industry's decisions regarding produced water management. It was noted that if it remains cheaper for companies to inject produced water and avoid liability for potential environmental impacts, they are likely to continue this practice rather than invest in cleaning and reusing the water. The senator emphasized that the bill is not only about imposing liability but also about creating incentives for the oil and gas industry to adopt more environmentally responsible practices.

The senator commended the bill's potential to benefit both the state's economy and its environmental health. They pointed out that the oil and gas resources on public lands belong to the people, and it is crucial for the industry to act responsibly in managing these resources. The senator also drew comparisons to Texas, where stricter regulations and higher royalties have been implemented, suggesting that New Mexico could benefit from similar approaches.

In conclusion, the meeting underscored the need for a balanced approach to produced water management that prioritizes both economic viability for the industry and environmental protection for the state. Further discussions and analyses are expected as the committee continues to evaluate the proposed bill and its potential impacts.