Commission begins deliberations on NM pit rule

The Oil Conservation Commission started deliberating a request by the industry to revamp the state's so-called pit rule. The set of regulations governs how producers handle drilling mud and other waste in pits, buried tanks, sumps and closed-loop systems.

The commission spent much of the afternoon deciding on the exact wording of definitions contained in the rule, such as what constitutes a temporary pit and whether an area can be considered a wetland.

Commissioners said they were trying to avoid any unintended consequences by revamping the rule's language.

They also discussed how any changes could affect future development in New Mexico, including shale gas drilling, which has boomed in North Dakota, Pennsylvania and other states.

The deliberations could last a week.

The challenge for the commission is finding a way to allow oil and gas development to continue in New Mexico while ensuring the arid state's water sources and soil are not contaminated.

The industry and some state lawmakers contend existing regulations have pushed producers from the state, costing New Mexico jobs and revenue. However, environmentalists argue relaxing the rules could lead to contamination.

A coalition of groups delivered more than 8,900 petition signatures to Republican Gov. Susana Martinez ahead of the deliberations. They asked that the pit rule be kept intact.