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ADMINISTRATIVE PENALTIES

REMINDER: Comments Due Jan. 2, 2020 To Voice Concerns Over Administrative Penalties Rulemaking Hearing
Dear IPANM Members,

This email is an important reminder to send comments to the OCC by Jan. 2, 2020!
 
On Jan. 2, 2020, the Oil Conservation Commission (OCC) will consider a new rule that will allow the Oil Conservation Division (OCD) the authority to administer monetary penalties for violations. This new authority was granted to OCD by the State Legislature and signed by the Governor after the 2019 Legislative Session. IPANM stood opposed to this bill arguing the existing framework gave OCD enough leverage over operators to pull their permits or refer violators to the Attorney General’s office for prosecution.

Since the Legislation was signed, IPANM has been asking the OCD to provide a proposed table of fine minimums. They have declined to do that, and will go to the Jan. 2, 2020 hearing in Santa Fe to approve a rule that will give them discretionary authority to set fine levels up to $5,000 per day, or $10,000 for major violations. IPANM has repeatedly expressed our serious concerns that discretionary authority is arbitrary and susceptible to potential bias against certain operators. For that reason, and a host of other concerns, IPANM has filed to be a legal party to the Jan. 2, 2020 rulemaking hearing. We will present several witnesses who will relay situational concerns.

We ask individual operators to consider making public comments in person at 9 a.m. on Jan. 2, 2020 in Porter Hall in the Wendell Chino Building at 1220 S. St. Francis Street in Santa Fe, NM.

If you cannot attend, please consider scripting a brief letter to the Oil Conservation Commission and sending it to florene.davidson@state.nm.us  prior to 9 a.m. on Jan. 2, 2020.  See this Notice of Jan. 2, 2020 Administrative Penalties Hearing for specific information if needed.

To help you write a comment letter, please see the summary of our concerns below to help guide your writing of a comment letter. Please use this as guide to pick and choose which concerns you would like to voice vs. a simple cut-and-paste email. Your personal comments will have a strong impact on the Commissioners who will consider this rule.
IPANM Summary of Concerns - PDF Version
Download WordDoc Version of IPANM Summary of Concerns
Due to the New Year's Holiday on Jan. 1, you now have just two business days to get your comments submitted!  We hope you will take the necessary time to either show up on Jan. 2, 2020 or write a comment letter before then.

Finally, IPANM is taking the lead on expressing industry’s concerns during this hearing. As such, we face higher costs than previously budgeted for our legal challenges to this rulemaking hearing. We graciously thank those who have contributed to our Legal Fund. However, we ask those who have not contributed to generously donate to this important cause and help us solicit funds from fellow operators, whether they are IPANM members or not.
Donate to IPANM's Legal Fund
At bottom of this email, there are additional links to IPANM's Pre-Hearing Statement for this rulemaking hearing and OCD's Pre-Hearing Statement that includes their proposed rule. Please note, IPANM continues to negotiate with OCD for better terms on some of these items, so the links below may not reflect the most recent versions.

Regards,


--jim

IPANM's Filed Pre-Hearing Statement - Admin Penalties
OCD's Filed Pre-Hearing Statement - Admin Penalties
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