In a letter this week to Office of Management and Budget (OPM) Director Shaun Donovan, U.S. Sens. Tom Udall and Martin Heinrich and U.S. Reps. Ben Ray Luján and Michelle Lujan Grisham called for prompt action on upcoming federal standards to curb natural gas waste. New Mexico is the nation's leading producer of oil from onshore federal land, and second for natural gas production. Yet too much of the state's natural gas goes to waste through venting, flaring and leaks -- causing dangerous methane pollution over the San Juan Basin and more than $100 million in lost revenue for taxpayers and producers. A NASA study has identified a methane hot spot the size of Delaware over the San Juan Basin -- the highest concentration in the nation.
The Bureau of Land Management (BLM) and the Environmental Protection Agency (EPA) are in the process of developing new rules to reduce methane waste in oil and gas production. In the letter, the Democratic members of the New Mexico congressional delegation emphasized the importance of federal action to protect public health and ensure taxpayers receive fair compensation for mineral production on federal lands. States receive 50 percent of the revenues from the leasing of mineral resources on federal lands within their borders. When natural gas is vented or flared, New Mexico, other states, and the federal Treasury lose potential revenue.
"Too much of New Mexico's natural gas is being lost due to venting, flaring and leaks," the lawmakers wrote in the letter. "This wasted natural gas is also a significant public health issue. Though methane is the largest constituent of natural gas, other toxic pollutants like benzene are often released at the same time. Methane waste also contributes to smog, increasing the potential for ozone non-attainment in areas with heavy oil and natural gas development. Lastly, curbing methane pollution is critical as a part of our nation's efforts to combat climate change."
"Natural gas losses cost New Mexico and oil and gas producers -- but they also pose a growing threat to public health, our climate and our clean air," Udall commented. "Many oil and gas producers are taking steps to curb natural gas waste, and federal action will help ensure consistency and encourage swift action. Common-sense standards to decrease waste are a win for taxpayers and help ensure our New Mexicans will have clean air and water generations into the future."
"Cutting wasteful methane pollution is cost-effective and good for our environment and public health," Heinrich said. "Methane emissions from oil and gas production hinders our nation's our ability to combat climate change. We're seeing the effects of climate change manifest in more extreme drought conditions, larger wildfires, shrinking forests, and increased flooding when we do receive precipitation. New Mexico is rich in natural gas, and we must work to ensure this valuable resource is used in a way that benefits our health and economy."
"New Mexico's natural gas production on federal and tribal lands is an important part of our state's economy, both creating jobs in our communities and contributing funds through royalty payments," Luján said. "It is important that our natural gas resources are being used efficiently and effectively. With more than $100 million worth of natural gas in New Mexico being lost, addressing this issue with cost-effective methods for reducing waste will have a positive impact on our economy as well as our environment."
"It is critical that we take steps to reduce methane emissions in order protect public health and address climate change," Lujan Grisham said. "Curbing methane emissions in a state like New Mexico, which is a leader in oil and gas production, will not only benefit the environment but will also ensure that New Mexico is not wasting natural resources or losing out on valuable royalty payments."