A New Day at IPANM

 

 

information & issues

Welcome to IPANM’s Information & Issues webpage!

IPANM is not afraid to take strong stances on many current issues threatening our industry. We have to! Seemingly minor changes to regulations or rules can have a major impact on the financial solvency of our small oil & gas producers. While we will never compromise on our duties to protect human health, fresh water and the environment in our daily activities, we will fight unnecessary government overreach when new regulatory proposals are not based on sound science and do little to protect the environment.

Below, we’ve identified serious issues facing our producers. Please click on the corresponding button to learn more about each issue and IPANM’s stance on the issue. (Note: Some of this content may be restricted for members only. To access this exclusive content, please join our association!)

RECENT NEWS: All Issues

ABQ Journal (Feb. 24, 2025) - The Clear Horizons Act was tabled in committee Monday. The Senate Finance Committee voted
ABQ Journal via Yahoo (Feb. 22, 2025) —Legislation increasing the maximum royalty rates charged for prime New Mexico oil and
IPANM (February 8, 2025) - On Saturday, February 8, 2025, the Independent Petroleum Association of New Mexico was joined by
Natural Gas Intelligence (Feb. 7, 2025) - The Trump administration’s Interior and Energy Department chiefs took steps this week to
IPANM, NMOGA, & PBPA (February 5, 2025) - The following is a letter that the New Mexico Trade Associations have
Albuquerque Journal (Jan. 24, 2025) SANTA FE — As one of her first moves in office, Gov. Michelle Lujan Grisham
Offshore Energy (Jan. 22, 2025) - Trump’s return to the White House has brought significant shifts in the domestic and
Santa Fe New Mexican (Jan. 19, 2025) SANTA FE — New Mexico lawmakers will embark on a 60-day legislative session
The Center Square (Dec. 23, 2024) - The United States is about to witness a complete energy reversal. If the
DEPA (Dec. 18, 2024) - Today's long-awaited report from the Department of Energy (DOE) on the impact of US LNG

ABQ Journal (Feb. 24, 2025) – The Clear Horizons Act was tabled in committee Monday. The Senate Finance Committee voted 6-5 to table Senate Bill 4, a priority of Gov. Michelle Lujan Grisham. The legislation would’ve codified limits on greenhouse gas emissions, set in place by executive order, in increasing amounts over the next decades, with a net-zero target by 2050.

“It’s a little too rapid for me,” said committee chair Sen. George Muñoz, D-Gallup, adding that the state will get there eventually. He and Sen. Benny Shendo, D-Jemez Pueblo, were the two Democrats to join Republicans in tabling the bill.

Hundreds of New Mexicans showed up in person and remotely to show their support or opposition for the Clear Horizons Act. Public comment went on for about an hour, with dozens of people speaking on both sides. A lot of public opposition came from agriculture workers as well as oil and gas industry members.

Clear Horizons Bill Tabled In Senate Finance Committee

IPANM:  SB4 Tabled In Committee

ABQ Journal via Yahoo (Feb. 22, 2025) —Legislation increasing the maximum royalty rates charged for prime New Mexico oil and gas land is heading to the House after passing the Senate chamber Saturday on a 21-15 vote.

A similar effort passed the House last year but couldn’t make it through the Senate. This year’s bill, Senate Bill 23, takes a slightly different approach by limiting a proposed 25% royalty rate cap geographically to premium land for oil and gas exploration — the Permian Basin.

“When you have the best of the best, you want the best rate that you can get,” said bill sponsor Sen. George Muñoz, D-Gallup. “It’s a business model.”

Currently, the State Land Office can only charge up to 20% in royalty rates. The money goes to the state’s Land Grant Permanent Fund, which funds public education.

Muñoz said 99% of activity in the Permian Basin is driven by major oil companies.

“Every major oil company — ExxonMobil, Chevron — has hit oil in this area, and hit it at a high volume,” he said.

However, that argument did not sway Senate Republicans, who uniformly opposed the legislation.

Sen. Larry Scott, R-Hobbs, tried but failed to amend the bill to make the State Land Office subject to the same prime oil and gas development directive that lessees and private landowners must follow, which is to prevent waste and protect correlative rights.

Republicans sang a similar tune against the bill as they have so far in the session and in past years, saying it would hurt the industry majorly funding New Mexico.

“If you want less of something, you tax it. If you want more or something, you incentivize it,” said Sen. Ant Thornton, R-Sandia Park. “And it seems to me we are doing our best to kill the industry that keeps the state running.”

The State Land Office last year stopped leasing out the best tracts of oil and gas land until the Legislature raises the royalty rate cap.

The bill passed the floor after about an hour and a half of debate.

IPANM (February 8, 2025) – On Saturday, February 8, 2025, the Independent Petroleum Association of New Mexico was joined by NMOGA, New Mexico Business Coalition, and others to strong opposition of SB48 & SB49. These bills propose $340 Million dollars / year of taxpayer money to promote programs to help end the fossil fuels.

Language in these anti-oil & gas bills include using the millions to “promote the state’s economy by fostering economic development opportunities unrelated to fossil fuel development”; to promote “projects that reduce the use of combustion engine vehicles”; and, ” promote the reuse and recycling of materials in a
sustainable manner and transition New Mexico away from
dependence on the fossil fuel industry.”

IPANM strongly believes this bill is an attempt by government to blatantly pick winners & losers in energy markets, pushes more expensive – less reliable energy source that will disproportionately hurt the poorest communities in New Mexico, and  ignores the consumers’ preference for more affordable gas-power automobiles at a time when EV’s are sitting unsold on dealership lots across New Mexico.

IPANM encourages citizens to reach out to Senator Mimi Stewart, the sponsor of these bills, and tell her to quit forcing higher costs on New Mexicans through subsidized programs that are proven to already not work.

SB48 & SB49 passed Senate Conservation Committee on Saturday on a partyline vote with all D’s voting for approval, and all 3 R’s voting in opposition.

Social Media Post By Senator Jim Townsend (R) Artesia:

 

Office Phone: 986-4734
Email: mimi.stewart@nmlegis.gov
CC: Secretary Email: SD17.secr@nmlegis.gov

MEDIA STORY: $340 million climate measure clears committee

 

 

Natural Gas Intelligence (Feb. 7, 2025) – The Trump administration’s Interior and Energy Department chiefs took steps this week to remove obstacles to expand natural gas and oil drilling by pulling the plug on Biden administration orders and pledging to approve permits for long-delayed energy infrastructure.

Interior Department Secretary Doug Burgum signed six secretarial orders on Monday that included removing the block on future natural gas and oil drilling off the East Coast, eastern Gulf of Mexico, Pacific Coast and a portion of Alaska’s Northern Bering Sea.

None

IPANM, NMOGA, & PBPA (February 5, 2025) –

The following is a letter that the New Mexico Trade Associations have sent to Senator Mimi Stewart (D), Pro Tempore of the State Senate regarding her dangerous SB4 Clean Horizons Act:

February 5, 2025

President Pro Tempore Mimi Stewart
New Mexico State Senate
Dear President Pro Tempore Stewart,

On behalf of the member companies of the New Mexico Oil and Gas Association
(NMOGA), Independent Petroleum Association of New Mexico (IPANM), and
Permian Basin Petroleum Association (PBPA), we would like to reiterate our strong
opposition to SB 4 – Clear Horizons and Greenhouse Gas Emissions.
We implore you to understand this bill’s targets are scientifically unachievable in the
parameters you have proposed. Our members are fully supportive of and practice
environmental stewardship and innovation. As you know, with technology
improvements and New Mexico’s stringent regulations, emissions continue to
decrease throughout the state.

However, SB 4, as written, will force companies out of compliance and out of New
Mexico. The bill will impose draconian emissions reductions mandates on oil and
gas, utilities, agriculture, manufacturing, transportation,
residential/commercial/industrial development and other critical sectors of the
state’s economy.

If this is your goal, you will successfully end New Mexico’s oil and gas industry – one
of the most productive, beneficial and science-based industries in the state – with
no plan to revitalize the economy, create jobs or fund basic human services. We
appreciate that you want to make New Mexico an even better place to live, work and
thrive. SB 4 will do the exact opposite.

To see full letter, click here.

Albuquerque Journal (Jan. 24, 2025) SANTA FE — As one of her first moves in office, Gov. Michelle Lujan Grisham in 2019 signed an executive order seeking to curb greenhouse gas emissions in New Mexico.

Six years later, the state isn’t on track to meet the order’s first demand: 45% less greenhouse gas emissions by 2030, compared to 2005 levels.

That’s part of the reason Senate President Pro Tem Mimi Stewart, D-Albuquerque, introduced a Clear Horizons and Greenhouse Gas Emissions bill, which passed its first committee Tuesday morning by a vote of 5-4. The three committee Republicans — who all live in or near the Permian Basin — voted against it, as well as Sen. Joseph Cervantes, D-Las Cruces.

“It would be incomprehensible to look at this piece of legislation and think that it would not demonstrably impact the price of energy,” said Sen. James Townsend, R-Artesia.

Stewart repeatedly denied the bill would cause higher energy prices.

Senate Bill 4 would codify the governor’s 2030 emissions limit, as well as add new limits compared to 2005 levels: a 75% reduction by 2040 and a 100% reduction by 2050. Reductions would be prioritized in “overburdened communities,” meaning minority or Native communities, or other communities disproportionately harmed, according to the bill.

SESSION 2025: SB4 GHG Bill Passes Through First Committee

 

Offshore Energy (Jan. 22, 2025) – Trump’s return to the White House has brought significant shifts in the domestic and global political landscape in many spheres, including the energy domain, ensuring the promise of a boost in American offshore energy remains unwavering. Before Trump stepped back into the White House, Milito emphasized the critical legislative agenda ahead, identifying the funding of the federal government and passing key legislation, such as permitting reform, as areas that should be the 47th U.S. President’s top priorities, as mandating offshore oil and gas and wind lease sales is crucial to ensuring more certainty and keeping these investments and projects within the United States.

While Trump agrees with Milito on the oil and gas boost, he is not a fan of bolstering offshore or onshore wind power. Quite the contrary, the new U.S. President made it abundantly clear that his energy policies would end leasing to massive wind farms that “degrade our natural landscapes and fail to serve American energy consumers,” according to the White House, which added: “The President will unleash American energy by ending Biden’s policies of climate extremism, streamlining permitting, and reviewing for rescission all regulations that impose undue burdens on energy production and use, including mining and processing of non-fuel minerals.”

By declaring an energy emergency to use all necessary resources to build critical energy infrastructure, Trump has certainly done what he said he would do including withdrawing from the Paris Climate Accord, putting the America First Trade Policy in action, and setting off an offshore wind freeze, reminiscent of former President Joe Biden’s LNG pause, thanks to a temporary withdrawal of all areas on the Outer Continental Shelf (OCS) from offshore wind leasing until the presidential memorandum is revoked, which is not likely to come until a review of the federal government’s leasing and permitting practices has been carried out for wind projects.

Trump Makes Good On Energy Promises In Day 1 Declarations

Santa Fe New Mexican (Jan. 19, 2025) SANTA FE — New Mexico lawmakers will embark on a 60-day legislative session Tuesday featuring a packed agenda, a mountain of new revenue and lots of new faces.

The session will begin at noon at the Roundhouse and lawmakers were already busy Monday hearing final pre-session budget reports and undergoing anti-harassment training.

Gov. Michelle Lujan Grisham will deliver her State of the State address after lawmakers take care of opening-day housekeeping duties, including announcing committee assignments and voting on top House and Senate leadership positions.

The Democratic governor, who is entering her final 60-day legislative session, is expected to largely focus on public safety and crime-related issues during her speech.

But Lujan Grisham also said last week she plans to announce twice-yearly independent reviews of New Mexico’s beleaguered Children, Youth & Families Department.

Some lawmakers have already indicated they will push legislation creating a new watchdog agency, but the governor indicated she opposes such a plan.

“I think it causes contention,” she said, referring to outside oversight. “Instead of solving the issues, you fight with the (other) entity.”

As of Monday, more than 200 bills had already been filed — 125 in the House and 78 in the Senate — and hundreds more proposals are expected to be filed before the Feb. 20 deadline to introduce legislation.

New faces in the Roundhouse

In addition to returning lawmakers, a total of 29 new legislators will take the oath of office Tuesday after winning election last year.

In all, the new lawmakers will make up roughly 26% of the Legislature, and could inject new ideas into debates on public safety, education, environment and mental health treatment.

Mark Murphy, a Roswell oilman, is the newest addition to the ranks of first-term lawmakers, after being appointed last week by Chaves County commissioners to fill a vacancy caused by former Rep. Jared Hembree’s decision to step down due to health issues.

Murphy told the Journal he’s not completely unfamiliar with the legislative process, as he’s been involved with the Independent Petroleum Association of New Mexico for 40 years.

As one of the dozens of new faces, he’s hopeful the freshmen legislators can help encourage bipartisan efforts.

“I’m going to remain cautiously optimistic until I’m proven wrong,” he said. “… I think the country has spoken pretty loudly on what the priorities should be and that they want to see meaningful progress, and they expect that from both parties.”

His No. 1 priority is addressing damage from the flooding that tore through Roswell and Chaves County in October, he said. He’s also focused on the oil and gas industries and crime-related legislation.

As he reads up on past legislation and gets settled in his new Roundhouse office, Murphy hopes to also have time to visit with his new grandbaby while in Santa Fe.

“I’m very excited about the job ahead,” he said.

An empty seat still remains in the House, following former Rep. Eliseo Alcon’s resignation in November. The Milan Democrat died earlier this year at 74 years old after battling liver cancer.

Session could get off to a brisk start

While issues tend to get bottlenecked near the end of the longer 60-day sessions that take place in odd-numbered years, House Speaker Javier Martínez, D-Albuquerque, said he expects issues around criminal competency and behavioral health to move quickly during the first few weeks of this year’s session.

Another priority for majority Democrats is affordability, said Martínez, who was a guest on the second episode of the Journal’s new Rounding Up the Roundhouse podcast.

“Especially in light of what potentially is coming the next four years, we want to make sure that we take care of working New Mexicans and ensure that their cost of living doesn’t increase,” Martínez said, referring to President Donald Trump being sworn in Monday as the 47th president of the U.S.

Cost-of-living issues in New Mexico are tied to energy, said House Republican Caucus Chair Rebecca Dow, R-Truth or Consequences. She said access to affordable, reliable energy is the primary cause of inflation.

“But New Mexico, with our resources across the state — not just oil and gas but all of our minerals — provide us with the opportunity to make sure every New Mexico citizen has affordable, reliable energy,” Dow said during the Journal podcast.

Meanwhile, all topics are up for debate in a 60-day session, which feature no bill limits or restrictions on subject matter.

“With 112 members of the Legislature, there are 112 really good ideas on any given day on any given issue,” Martínez said.

NM lawmakers ready for start of busy 60-day legislative session

The Center Square (Dec. 23, 2024) – The United States is about to witness a complete energy reversal. If the selection of his new Energy secretary is any indication, President-elect Donald Trump is making good on his campaign promises to “drill, baby, drill.”

Trump’s nominee is Chris Wright, a fracking magnate and the CEO of Liberty Energy, a Denver-based oil and natural gas fracking company.

Trump has hailed Wright as “one of the pioneers who helped launch the Shale Revolution.”

If climate activists who claim to want to reduce carbon dioxide emissions understood energy, they would rejoice at the selection of Wright as Energy Secretary. Why? Natural gas fracking has been one of the most effective ways to reduce carbon dioxide emissions in U.S. history by overcoming coal as an energy source.

As President Trump explained in 2019, “Shale energy has reduced America’s carbon emissions by 527 million metric tons per year….[This is] a much better record than the European Union, which is always telling us how to do [reduce emissions.].”

Trump’s Energy Secretary To Lead An American Energy U-Turn

 

DEPA (Dec. 18, 2024) – Today’s long-awaited report from the Department of Energy (DOE) on the impact of US LNG exports comes as nosurprise from the current administration. The claim that increased LNG exports result in a “triple-cost increase to US consumers” is not supported by reality. This is according to the Domestic Energy Producer’s Alliance (DEPA).

“Ten years ago, the United States was not exporting LNG. Today, the US stands as the number one LNG exporter in the world. And what has happened to natural gas prices for American consumers during this period? They’ve gone down, not up. The narrative suggesting that LNG exports trigger significant domestic price spikes was thoroughly debunked in 2015, when DEPA played a pivotal role in lifting the crude oil export ban. That lesson holds true today: increased energy exports strengthen the US economy, enhance global energy security, and do not harm American consumers,” said Jerry Simmons CEO and President for the Domestic Energy Producers’ Alliance (DEPA).

Simmons went on to say “Attempts to stir public anxiety over consumer price impacts are unfounded, and this DOE report reflects a policy direction that fails to align with economic and energy realities. We are confident that the incoming administration will reassess this misguided approach and adopt energy policies that prioritize growth, energy security, and market-driven solutions.”

It’s telling that this DOE report was labeled as “final” even before the public comment deadline was released. That speaks volumes about the process. We look forward to policies that make sense for America’s energy future, support our leadership role in global markets, and benefit consumers at home.

IPANM stands in full agreement and in solidarity with our national oil & gas trade associations’ conclusion that the Biden Administration’s LNG Export report is highly flawed.

DOE’S LNG REPORT REPEATS DEBUNKED MYTHS U.S. ENERGY POLICY NEEDS A REALITY CHECK