Susana Martinez
In order to create a lasting, thriving economy in New Mexico, we must unlock the potential of our energy resources. We can do this while simultaneously protecting our environment, if we base our regulatory decisions and policies on evidence and commonsense.
This will create and sustain high-paying jobs for New Mexicans, provide much-needed revenue to our state to fund critical services such as education, and help make America less dependent on foreign sources of energy, all while safeguarding our environment.
It starts with changing the policies and attitudes toward New Mexico’s oil and gas industry. Unfortunately, the Richardson/Denish administration has adopted stances that undermine the industry and the jobs it creates. A recent column by the former Richardson/Denish secretary of energy, minerals and natural resources published in The Albuquerque Journal defends the pit rule, and demonstrates a complete lack of regard for just how critical this industry is to our future.
When the Richardson/Denish administration supported the pit rule, they endorsed significant new costs associated with drilling wells. Some have estimated those costs at nearly a quarter of a million dollars or more per well. When it costs an additional $250,000 to drill a well in New Mexico than it does in other states, it should surprise no one that production in our state decreases.
In fact, New Mexico was the only energy-producing state in the country to see gas production drop last year.
Worse yet, most of the oil production in New Mexico is what’s called “marginal production,” and the additional costs associated with new drilling regulations threaten to reduce it greatly, or eliminate it completely.
Troubling actions don’t stop there
But the troubling actions on the part of the current administration do not stop there. They have sent mixed signals to the industry and changed the rules in the middle of the game. For example, those interested in exploration in the Galisteo Basin complied with every state regulation – only to face roadblocks erected by Santa Fe County and supported by the Richardson/Denish administration.
Not only does that have the obvious negative impact on exploration and development, but it also undermines the state’s credibility with the business community when its word cannot be trusted.
These anti-business policies were driven by extreme special-interest groups and had little to no basis in fact. In essence, the Richardson/Denish administration killed New Mexico jobs and reduced funding for our schools in order to satisfy the narrow ideology of special interests.
And while, like on so many other issues, Diane Denish will try to claim distance from the administration’s actions, it is important that voters understand that certain members of the Oil Conservation Commission (OCC) are appointed by the executive branch and responsible for many of the state’s regulations, such as the pit rule. In turn, they report to the governor and lieutenant governor, not the Legislature or anyone else.
The folks who have held sway over both the OCC and the environmental department have been long-time Denish friends and supporters.
Deterred from investing in New Mexico
According to the Fraser Institute’s 2009 Global Petroleum Survey, New Mexico discourages economic growth in the oil and gas industry. Citing a “corrupt government” and conditions that make it “very hard to make a profit,” over 35 percent of oil and gas executives surveyed said they were deterred from investing in New Mexico or would not invest at all.
These results stand in stark contrast to the rest of the country and very clearly demonstrate that the policies of this administration have stifled economic development in this critical sector.
As Richardson/Denish placate the radical elements of their party, these bad policies have had undeniably negative ramifications on New Mexicans. At the end of the day, unnecessary roadblocks and regulations mean less revenue for our state and severely diminished funds for our schools. During the worst budget crisis in New Mexico history and most difficult economic environment since the Great Depression, oil and gas revenue is expected to now represent only 13 percent of the state’s revenues. Just a few short years ago, oil and gas revenue represented 20 percent of all revenues.
When New Mexico needs their help the most, the Richardson/Denish Administration is pushing the industry out of the state.
I visited Hobbs in September and spoke with voters about the issues, and almost universally, they stated that we need to fix the pit rule. I responded that, as governor, I would address the pit rule immediately, recognizing the unnecessary and burdensome regulations it imposes on the oil and gas industry that impede growth and job creation.
Simply stated, it does much more harm than good. One has to understand that producers will simply conduct business in other states and, in fact, some now even refuse to come to New Mexico due to the regulations and burdens that have been placed on the industry.
And with the pay-to-play culture of the Richardson/Denish administration, who knows what kind of abuses the oil and gas industry has had to endure and who has been the actual beneficiary of these misguided regulations.
Balancing energy needs with environmental protection
But our challenges don’t end with our policies in relation to the oil and gas industry. Now, the Richardson/Denish administration is setting their sights on coal power plants by advocating new policies that threaten to push the plants, and their jobs, out of the state.
I strongly support efforts to increase the amount of energy produced from renewable sources, such as wind, solar and bio fuels. But as we work to harness these new energy sources, we must recognize that New Mexicans now receive 90 percent of their electricity from coal-fired power plants, and that percentage is not likely to drastically change overnight.
Given the reality of the situation, the most practical way to protect our environment is to work with these energy producers to ensure we balance the economic and energy needs of our state with our commitment to protecting our environment.
I support creating incentives that encourage coal power plants to invest in new technology that will help coal burn more efficiently and reduce our carbon footprint. The San Juan Generating Station recently invested more than $300 million in improved technologies to help reduce emissions, and Business Week reported that the Four Corners Power Plant meets or exceeds all state and federal environmental regulations.
We can certainly do more. Yet, rather than working with this industry to encourage further strides toward a cleaner environment, the Richardson/Denish administration prefers to score political points with extreme environmental groups by passing excessive, job-killing regulations.
Another key to our energy independence is nuclear energy. While we must invest in renewable sources of energy like wind, solar and bio fuels, we must also accept the reality that we are not yet at the place where these renewable sources can meet our energy needs. Nuclear energy must be part of the solution.
Nuclear energy is a clean energy that produces no harmful greenhouse gases. It has the potential to meet many of our energy needs, and New Mexico is uniquely equipped to become a leader in nuclear power, given our labs and infrastructure. New Mexico can either be a leader in expanding nuclear energy, or we can once again lose out to our neighbors.
As governor, I will ensure New Mexico is a leader in nuclear energy.
Helping, not demonizing, the energy industry
We are blessed by incredible natural beauty in our state and we all must work to protect our environment. With the right approach, New Mexico can be a leader in our nation’s energy future as we harness and build new technologies coupled with our rich natural resources.
However, in pursuing that goal, we must base our regulations and approach on evidence and science, rather than simply responding to the ideology of fringe, special interest groups. As governor, I will approach policymaking related to energy with the thoughtfulness and respect it deserves and the same way I approach the criminal cases I prosecute.
I will ensure that the regulatory process is one driven by facts and evidence, not by political winds.
We must recognize that in a global economy, businesses will locate or relocate in places where they are most likely to succeed. In addition to enacting fact-based and common-sense regulations, I will work to create a business and worker-friendly tax environment whereby New Mexico can be competitive with neighboring states so our small businesses can create new jobs right here at home.
The only long-term way to dig out of our severe and historic budget crisis is to grow the New Mexican economy by helping our businesses thrive. That includes helping, rather than demonizing, the energy industry.
Martinez is the district attorney in Doña Ana County and a Republican candidate for governor.