FGGAM NEWS just received this news release from Congressman Steve Pearce’s Office:
BLM’s Rulemaking Efforts Take Aim at New Mexico Jobs
Washington, DC (October 18, 2016) – Congressman Steve Pearce issued the following statement after the Bureau of Land Management (BLM) announced finalization of three rules to update and replace Onshore Oil and Gas Orders:
“These new regulations are another attack on New Mexico jobs by this administration. These new rules will especially affect small businesses in New Mexico who may not be able to afford these new requirements and will be forced to shut their wells in. The BLM continues to claim that these regulations are crafted to ensure that Americans receive their fair share for oil and natural gas production. However, this rule will reduce royalties paid to states and local governments by forcing producers to shut in wells. This will ultimately reduce annual funding for our schools, hospitals, and local law enforcement. Between these new changes, the BLM’s venting and flaring rule and hydraulic fracturing rule it is clear that this administration wants only one thing, to crush production of oil and gas in this country, sending New Mexico jobs and royalties overseas,” said Congressman Pearce.
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Background:
The rules rewritten on Monday aim to update the accounting practices governing royalty rates for oil and gas drillers on federal and Indian land. The rules establish minimum standards for the measurement of oil and gas and deal with how companies report production to the federal government. The BLM itself admits that the changes will cost producers $60 million in one-time costs and about $27 million annually.
