New Mexico Takes the Lead: Proposed Regulations for Produced Water Reuse Set Precedent for Sustainable Oil and Gas Industry

The New Mexico Environment Department’s Ground Water Quality Bureau (NMED-GWB) put forth its much-anticipated proposed regulations for the reuse of produced water on November 1, 2023. These measures consider applications “unrelated to the exploration, drilling, and production, treatment, or refinement of oil or gas.”

The regulations, if adopted, would place significant restrictions alongside a framework for the reuse of produced water, principally derived from oil and gas operations. This legislative move is notable due to its rigorous approach, departing from the relatively lenient guidelines present in other jurisdictions within the US and globally.

Produced water reuse has sparked substantial controversy in various sectors. While some stakeholders contend that it is a sustainable source of water in water-scarce areas, critics argue that its deployment may present environmental risks due to potential contamination from chemicals used in oil and gas operations.

New Mexico’s stance on this matter is especially noteworthy, given their legislative history. In 2019, they became one of the first states to pass the Produced Water Act, making significant strides in handling produced water. This Act, and the proposed rule in its sequel, reflect New Mexico’s determination to implement environmentally conscious and robust management of oil and gas production’s byproducts.

The regulations are currently up for public scrutiny and comment, which provides an avenue for legal and industry professionals, along with the general public, to voice their unique perspectives and potentially influence the final law. It is crucial to note that these regulations, once implemented, could set a precedent for other oil-rich states presently without stringent produced water reuse rules.

Taking into account all of these factors, it is clear that the proposed regulations in New Mexico represent a significant step toward a more sustainable and controlled oil and gas industry, helped by the benefits of an open public comment period. This move emphasizes the urgent need for other states and jurisdictions to follow suit, setting similarly robust guidelines for the management and reuse of produced water. A complete overview of this matter can be found at this link.