Actions: [2] HENRC/HJC-HENRC [10] DNP-CS/DP-HJC [14] DP
Scheduled: Not Scheduled
House Bill 222 (HB 222) requires disclosures of chemicals used in hydraulic fracturing operations and downhole operations. It prohibits the use of hydraulic fracturing fluids, drilling fluids and proppants that contain per- or polyfluoroalkyl substances and prohibits the use of chemicals in downhole operations that have not been disclosed. HB 222 prescribes penalties.Legislation Overview:
House Bill 222 (HB 222) amends Section 70-2-33 NMSA 1978 to include definitions for additive; base fluid; direct vendor; downhole operation; hydraulic fracturing fluid; intentionally added; operator; per- or polyfluoroalkyl substance; proppant; and service company. It creates a new section in the Oil and Gas Act (Section 70-1-1 et seq NMSA 1978) that prohibits the use of hydraulic fracturing fluids, drilling fluids and proppants that contain per- or polyfluoroalkyl substances in downhole oil and gas operations and authorizes the Oil Conservation Commission (OCC) to adopt rules to carry out the provisions of this section. HB 222 acknowledges that federal law may preempt this section under certain circumstances. HB 222 prohibits the Oil Conservation Division (OCD) as of 1 July 2025 from issuing a permit to drill an oil and gas well or authorize any downhole operations until the operator has completed and filed a downhole chemical disclosure. It specifies in detail the information that must be included on the disclosure form. It requires a manufacturer, direct vendor or service company to share information with the operator necessary to comply with this section at the request of the operator. HB 222 prohibits the use of chemicals in downhole operations that have not been disclosed and requires the operator to file a certificate that none have been used with the OCD within forty-five days of completion of the downhole operation. It requires the disclosure certificate to be made publicly accessible including posting on certain national registries or other publicly accessible website. The OCD may make rules to carry out the provisions of this section. HB 222 would be effective 1 July 2025.Committee Substitute:
2/27/25 The House Energy, Environment and Natural Resources Committee introduced a committee substitute for HB 222 (CS/HB 222 HENRC). It amends Section 70-2-33 NMSA 1978 to include definitions for base fluid; direct vendor; hydraulic fracturing fluid; operator; per- or polyfluoroalkyl substance; proppant; and service company. It creates a new section in the Oil and Gas Act (Section 70-1-1 et seq NMSA 1978) that prohibits an operator from using hydraulic fracturing fluids, drilling fluids, proppants or other additives that contain per- or polyfluoroalkyl substances in downhole operations and authorizes the Oil Conservation Commission (OCC) to adopt rules to carry out the provisions of this section. CS/HB 222 HENRC acknowledges that federal law may preempt this section under certain circumstances. CS/HB 222 HENRC creates a new section of the Oil and Gas Act (OGA) that prohibits an operator from commencing any downhole operations until the operator has completed and filed a downhole chemical disclosure. If the Oil Conservation Division (OCD) issued a permit to an operator prior to 1 July 2025, the operator must make a downhole chemical disclosure in a form or manner prescribed by the OCD. CS/HB 222 HENRC specifies in detail the information that must be included in the disclosure form including a certification filed within forty-five days after completion of the downhole operation with the OCD that the operator has not used undisclosed chemicals in downhole operations. It obliges the operator to submit any change to the information in the required downhole chemical disclosure to the OCD within thirty days of knowledge of the change. It requires a manufacturer, direct vendor or service company to share information with the operator necessary to comply with this section at the request of the operator. CS/HB 222 HENRC provides alternative registry sites including the OCD and other publicly accessible websites if the National Hydraulic Fracturing Chemical Registry website does not exist or is inoperable. It allows the OCD to adopt rules to require operators to make chemical disclosures to the OCD for non-hydraulic fracturing downhole operations including rules for public accessibility and any other rules necessary to carry out the provisions of this disclosure section. CS/HB 222 HENRC would be effective 1 July 2025.