|
|
Enron Mail |
NEW MEXICO
LEGISLATIVE STATUS REPORT The following bills that may be of interest to our members have been introduced in the Second Regular Session of New Mexico's 45th Legislature, which bills will be monitored during the Session, as I will continue to watch for any other developments that might specifically affect our industry: HB 165-Tribal Capital Improvements Tax Credit: Introduced by Representative Ben Lujan, Dem., Dist. 46 (Santa Fe). Would provide that one liable for the oil and gas severance tax, conservation tax or emergency school tax on production from Indian tribal land will have a credit each month equal to the lesser of the tax that is exclusively dedicated to fund capital improvement projects on the tribal land (but not commercial buildings) imposed on such production by the Indian tribe, or 2% of the taxable value of such production. The burden of showing entitlement to this credit would be on the taxpayer, who must furnish proof of payment of the tribal tax. This bill received a "Do Pass" in the House Energy & Natural Resources Committee and was sent to the House Taxation & Revenue Committee, where a hearing will be held on Monday, February 4, at 1:30 PM. HB 230-"Indian Country" Defined: Introduced by Representative Leo C. Watchman, Jr., Dem., Dist. 9 (McKinley & San Juan). Would broadly define "Indian country" under the New Mexico statutes. This bill was referred to the House Rules & Order of Business Committee, where a hearing will be held on Saturday, February 2, at 1:30 PM. HB 309-San Juan Oil and Gas Field Training Program: Introduced by Representative Nick Tinnin, Rep., Dist. 1 (San Juan). Would appropriate $300,000 to San Juan College for Fiscal Year 2003 and subsequent years for an oil and gas field training program at the college that includes certification and training for well, pipeline and drilling technicians and field workers. This bill was referred to the House Business & Industry and Appropriations & Finance Committees. HB 388-Tax Credit For Produced Water: Introduced by Representative Robert W. Burpo, Rep., Dist. 23 (Bernalillo). Would provide that a taxpayer who produces water from a depth of 3,000 feet or more below the surface in the course of drilling for oil and gas may take an income tax credit of $1,000 per acre-foot of produced water (not to exceed $400,000 per year) if the taxpayer discharges the water into the Pecos River in compliance with the New Mexico Water Quality Act, and subject to other conditions. This bill was referred to the House Business & Industry and Taxation & Revenue Committees. HB 423-Additional Natural Gas Pipeline Systems Study: Introduced by Representative Donald L Whitaker, Dem., Dist. 61 (Lea). This bill is identical to SB 369 and was referred to the House Energy & Natural Resources and Appropriations & Finance Committees. SB 16-Lea and Carlsbad Conservation District Study: Introduced by Senator Carroll H. Leavell, Rep., Dist. 41 (Eddy & Lea). Would appropriate $500,000 to New Mexico State University for Fiscal Year 2003 for a study by the Lea and Carlsbad Soil and Water Conservation Districts of issues related to the use of water produced by oil and gas exploration from "deep underground." This bill was found germane by the Senate Committees' Committee , received a "Do Pass" in the Senate Conservation Committee, and was sent to the Senate Finance Committee, where it was temporarily tabled. SB 283-Tribal Capital Improvements Tax Credit: Introduced by Senator Leonard Tsosie, Dem., Dist 37 (Dona Ana, Otero & Sierra). This bill is identical to HB 165, was found germane by the Senate Committees' Committee, and was sent to the Senate Indian & Cultural Affairs, Conservation and Finance Committees. SB 345-Well Workover Projects: Introduced by Senator Leonard Lee Rawson, Rep., Dist. 37 (Dona Ana, Otero & Sierra). Would amend the Natural Gas and Crude Oil Production Incentive Act to expand the definition of "well workover project" to include the installation by the operator of workover equipment that is intended to substantially increase the life of the well and that has been approved and certified by the OCD, which approval shall be granted if the OCD determines that the equipment will substantially reduce operating costs, thereby increasing the life of the well and its recoverable reserves. This bill was found germane by the Senate Committees' Committee and sent to the Senate Conservation and Finance Committees. SB 369-Additional Natural Gas Pipeline Systems Study: Also introduced by Senator Leavell. Would require the Legislative Council to assign an Interim Committee to study the economic feasibility and the costs and benefits of financing, constructing and operating a natural gas pipeline to transport New Mexico natural gas to additional markets. This bill was found germane by the Senate Committees' Committee and sent to the Senate Conservation and Finance Committee. HJM 17-Coordinated Oil & Gas Permitting Process: Introduced by Representative Patricia A. Lundstrom, Dem., Dist. 5 (McKinley). Would request that the Department of Environment, the Oil Conservation Division and the federal Bureau of Land Management cooperate in the development of a coordinated permit process for oil and gas activities. This bill received a "Do Pass" in the House Energy & Natural Resources Committee and was sent to the House Business & Industry Committee. I will continue to keep you posted concerning any changes or additional issues. Tom Nance February 1, 2002
|