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SB 184: NO STB PROJECTS IN CERTAIN COUNTIES

An Act Relating To Severance Tax Bonds; Enacting A New Section Of The Severance Tax Bonding Act To Provide That No Severance Tax Bonds Shall Be Issued To Benefit Projects Located In Counties Or Municipalities That Have Enacted Ordinances That Would Result In A Twenty-five Percent Or More Increase In Costs To The Extractive Industries.

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HIGH SB 184
NO STB PROJECTS IN CERTAIN COUNTIES

Legislative URL:
SB 184 on nmlegis.gov
Emergency Clause:
No
Germane:
N/A
Location:
SCONC
Action:
SPREF [3] SCONC/SFC-SCONC API.
Issue(s):

Related Legislators

Bill Sponsor:

Related Documents

Downloads:
Introduced
Fiscal Impact Report

Related Events

Upcoming:
Summary

This bill would enact a new section of the Severance Tax Bonding Act to provide that no severance tax bonds shall be issued to benefit projects located in counties or municipalities that have enacted ordinances that would result in a 25 percent or more increase in costs to the extractive industries.

 

It would require the Oil Conservation Commission, the Mining Commission, and the Coal Surface Mining Commission to conduct hearings, no later than October 1 of each year, to identify municipalities and counties that have enacted ordinances that would increase by 25 percent or more the cost of:

  • drilling or operating a well for the production of oil, natural gas, carbon dioxide or geothermal resources;
  • permitting or operating a mine subject to the jurisdiction of the Mining Commission; or
  • permitting or operating a coal surface mine.

 

Within 10 days after conducting a hearing each commission shall notify the state Board of Finance and the appropriate legislative committee about the municipalities and counties that have enacted such ordinances. The state Board of Finance shall neither issue nor sell severance tax bonds to fund a project to be located within the planning and platting jurisdiction of a municipality or the area of a county outside the planning and platting jurisdiction of a municipality if an ordinance of the municipality or county increases the costs of extraction by 25 percent or more as described above.

 

A concern regarding this bill might be the chilling effect it could have on attempts by counties and municipalities to impose other controls on mining and drilling operations.