Regulating Oil and Gas Operations in the Albuquerque Basin: Slow Down and Get it Right
In response to the SandRidge Energy request to allow oil and gas drilling on 2 acres in Rio Rancho Estates last year, Sandoval County and Rio Rancho are working to enact Oil and Gas Ordinances. The County has published a “bare bones” Draft Ordinance. It has had two public meetings and received many comments from the public and from the Oil and Gas Industry. An updated Draft is proposed to go to the Planning and Zoning Commission next month. That’s too fast. Most participants, including people from the Oil and Gas Industry have urged the County to slow the process down and get it right.
The proposed SandRidge site was on 2 acres in Rio Rancho Estates, part of the 55,000 acres in Sandoval County AMREP leased out for the purpose of exploring for, developing, producing and marketing oil and gas. These 55,000 acres sit atop the Albuquerque Basin Aquifer, the sole source of water for most residents in southern Sandoval County and an important source of water in Bernalillo County.
Although the SandRidge request was withdrawn, there will be future requests to drill, because the financial stakes are high. AMREP was paid approximately $1,000,000 upfront for this oil and gas lease, and will receive 14 percent of the proceeds from produced oil or gas. When the next wells find producible oil or gas, and when the price of oil and gas rises, an oilfield of 1000-2000 wells could spring up in the Rio Rancho area. Such a large well field would have large impacts beyond the Rio Rancho area.
Sandoval County has enlisted the help of New Mexico Tech to provide guidance on the geological and water resource issues of oil and gas drilling. However, the presence of a large oilfield will have impacts on many other issues including but not limited to the effects on:
Air pollution
Water use and pollution
Tourism
Traffic
Real estate values
Property taxes.
Law enforcement and fire response resources
County budget
Financial impacts of possible County Liability
Impact of a large number of outside workers coming into the area.
Before Sandoval County proceeds further with ordinance development, the County should undertake an Impact Analysis of Oil and Gas Operations in the Albuquerque Basin. The County needs to be thoroughly educated about the choices that need to be made to protect the public’s health, safety and welfare, the environment and the public pocket book.
This analysis will help in producing a better Oil and Gas Ordinance and a complete Comprehensive Plan (the overall master plan for Sandoval County). Currently, the words oil or gas are not even mentioned in Sandoval County’s Comprehensive Plan.
During what needs to be a very deliberative process of developing oil and gas ordinances, which requires investing in economic, water and other impact studies, the county needs to pass a moratorium, with a time limit, on any new oil and gas drilling applications
The Sandoval County Oil and Gas Ordinance is being built under the Precautionary Principle which in essence states: if there is a chance of harm being done either to people or the environment from an activity and there is not enough scientific consensus or research, then policy makers should err on the side of caution and preclude the activity or heavily regulate it.
It makes sense to slowdown and err on the side of caution.