In March 2020, New Mexico banned routine venting and flaring of methane from oil and gas production facilities.
The first phase of implementation will include data collection and reporting to identify natural gas losses at every stage of the process. Once this information is in hand, regulators will then require operators — from those that manage pipelines to stripper wells and other infrastructure — to capture more gas each year. The target will be capturing 98% of all natural gas waste by the end of 2026.
If operators fail to meet the state’s targets, regulators can deny drilling permits.
The rule as approved defines the release of natural gas through venting or its burning via flaring as waste and requires operators to not vent or flare gas unless in an emergency or equipment malfunction.
“The operator shall take all reasonable actions to prevent and minimize leaks and releases of natural gas from a natural gas gathering system and shall implement an operations plan to minimize the waste of natural gas for each non-contiguous natural gas gathering system,” reads the final rule.
State officials billed the rules as some of the strongest gas capture requirements in the nation. Unlike other states, New Mexico’s rules also apply to the midstream sector, which collects natural gas from wells for processing. Passage of the rules was celebrated by environmental groups in New Mexico who championed the stricter regulations as action that could help mitigate climate change impacts of fossil fuel production.