The law, effective July 1, requires that companies notify landowners 30 days prior to drilling-related operations, describe in detail what will go on and propose an agreement covering compensation for the use of — and any damages to — the land.
This includes landowners who don’t hold the mineral rights beneath their land and was specifically written with them in mind. And, it has some teeth, too.
At least 11 other states have some sort of surface use agreement or compensation requirement, she said.
But New Mexico's law is notable for the extensive information that must be provided the landowner, the scope of damages that can be recovered — for loss of agricultural income, or loss of land value, for example — and for the reclamation requirement, she said.
The new law also allows landowners to collect triple damages in court under some circumstances if operators enter land to drill wells without giving notice or having agreements or posting bonds.
Now, if we can get places like Texas, or Wyoming with its dirty drilling, to adopt similar measures…
It should be noted, however, that the New Mexico oil and gas industry (a significant lobby in the state) was actually in support of this bill.
ReplyDeleteIt was one of those rare bills that both the oil and gas industry and the cattle industry in New Mexico agreed.