Richardson signs surface owners protection act

Gov. Bill Richardson signed today a bill that would require oil and gas companies to pay landowners for damage to their property caused by drilling.

House Bill 827, sponsored by Rep. Andy Nuñez, D-Hatch, is a compromise on an issue that has been contentious for years but, in the end, actually had the endorsement of the oil and gas industry and ranchers.

Under the compromise, the bill protects landowners who don’t own the mineral rights below their land, which is common in New Mexico. It requires the oil and gas industry to notify landowners 30 days prior to any oil and gas operations, to describe the operations, and to propose a surface use and compensation agreement.

The landowner then has 20 days to accept, negotiate or reject the offer. If no agreement is reached between the landowner and company, a bond must be posted before operations begin.

Lt. Gov. Diane Denish praised Nuñez.

“As someone who grew up in the ‘oil patch’ down in Hobbs, N.M., I applaud Rep. Andy Nuñez for carrying House Bill 827, the House and Senate for passing the legislation and Governor Bill Richardson for signing it into law,” she said. “I want to acknowledge New Mexico’s oil and gas industry for joining with ranchers, landowners and legislators to craft sensible, sorely needed legislation to provide broad protections for surface owners.”

Attorney General Gary King agreed.

“For years, New Mexico has faced the challenge of balancing the needs of our thriving energy industry and respecting the rights of private land owners,” King said. “This bill brings all interests closer to that goal.”