Court supports New Mexico’s regulation on ozone pollution
The Court of Appeals rejected the oil group’s claims that the ozone precursor rule was based on flawed and outdated data.
The New Mexico Court of Appeals upheld the state’s rule aimed at reducing emissions of ozone precursor pollutants from oil and gas operators in counties with high ozone levels.
“Other than summarily stating that the Board needed to update the modeling it relied on to account for the changes in the proposed rule, Appellant does not develop an argument supporting its contention that the Board’s conclusions were not supported by substantial evidence,” the order stated.
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IPANM contended that the rule should not be enforced in Chaves and Rio Arriba counties due to insufficient evidence of ozone levels exceeding 95 percent of the federal air quality standard.
However, the court ruled in favor of applying the rule to these counties, stating that they are situated within the region where ozone concentrations surpass the required threshold.
The rule includes exemptions for small businesses, defining them as independently owned entities with annual revenues below $250,000 and fewer than 10 employees.
IPANM sought to eliminate the revenue-based provision, arguing its arbitrary nature and linkage to volatile market prices in the oil and gas industry.
But the court upheld the provision, citing the board’s rationale of balancing compliance costs with a company’s financial capacity.
Data from the New Mexico Environment Department indicated that the average compliance cost was $37,945 annually, with small business facilities spending around $4,385 per well for compliance, a figure higher than the revenue per well for most companies.
The Epoch Times reached out to IPANM for comment but did not receive a response by the time of publication.
