As has been highly reported and talked about, the Bureau of Land Management’s (BLM) final rule on leases and the leasing process, known as the Leasing Rule,[1] raises minimum bonding requirements from $10,000 to $150,000 for a lease bond and from $25,000 to $500,000 for a statewide bond, effective June 22, 2024 for new federal leases or assignments. Less discussed…
Agency Deference – Post-Chevron Doctrine
The U.S. Supreme Court formally ended the administrative law doctrine known as “Chevron deference” this summer in Loper Bright Enterprises, Inc v. Raimondo. This decision is celebrated as a significant victory for reigning in federal agency regulatory over-reach and the power of the administrative state. Appropriately so. But, with the revelry dust now settled, there is still confusion as to…
Statutory Pooling in Colorado Changes, Again
Changes are coming to the statutory pooling process in Colorado. Senate Bill 24-185 (SB24-185), which was signed into law on May 22, 2024, expands protections for and grants additional rights to unleased mineral interest owners and local governments in Colorado. Under current law, the Colorado Energy and Carbon Management Commission (ECMC) may, in the absence of voluntary pooling, enter an…
N.M. Supreme Court Clarifies Important N.M. PRC Authority Over Electric Rates
For the first time, the New Mexico Supreme Court has confirmed that electric rates established by New Mexico electric cooperatives are subject to New Mexico’s Public Regulation Commission’s (“PRC”) review and approval. Prior to this decision, under New Mexico’s Public Utility Act, rural electric cooperatives rates generally went into effect as soon as the cooperative proposed them and without review…
Supreme Water Law of the Land: SCOTUS Holds Vague Federal Interests Take Precedent Over States’ Water Interests
In a remarkable decision, the Supreme Court of the United States (“SCOTUS”) rejected a settlement agreement between New Mexico, Colorado, and Texas regarding a long-standing legal battle over use of waters from the Rio Grande. In Texas v. New Mexico and Colorado,[1] the Court held that federal interests in interstate waters can take precedence over an agreement between the three…
New Mexico District Court Declines to Wade into Juliana Justiciability Waters
The First Judicial District New Mexico Court for Santa Fe County’s (“New Mexico District Court”) recent decision denying the State’s motion to dismiss in Atencio, et al. v. State of New Mexico provides little to no insight into the viability of the claims in this case. However, recent, related decisions out of the Ninth Circuit may provide a preview of…
Alabama v. California Bill of Complaint Summary
Actions That Led to the Complaint To date, the U.S. Supreme Court has largely declined to address climate change liability cases, and federal judges have consistently remanded these cases to State court. This trend could potentially shift in the coming months. A certiorari petition is currently pending in the Hawaii State court case, Sunoco LP v. City and County of…
Permian Basin Ozone Status Up In The Air
The EPA is reportedly taking another look at redesignating the Permian Basin in both Texas and New Mexico as an ozone nonattainment area. The first impact of an ozone redesignation would be to restrict air permits for constructing or modifying stationary sources of air emissions, including oil and gas facilities, by lowering the “major source” emissions rate threshold. The lower…
Quad Workout: Compliance with EPA’s New Methane Regulations
As all serious skiers know, consistent year-round quad, leg, and core workouts are critical to maximizing a fun, rewarding, and safe ski season. For the oil and gas industry, there is a new quad workout that demands even more attention and dedicated work to ensure compliance and minimize enforcement risk: EPA’s new methane and volatile organic compound (“VOC”) rules under…
Federal Onshore Oil and Gas Leasing Win
A Washington D.C. federal judge upheld the Bureau of Land Management’s greenhouse gas and climate impact analysis, conducted in connection with six 2022 federal onshore oil and gas lease sales. A coalition of environmental plaintiff organizations sued to challenge several aspects of the lease sales, seeking to: (1) set aside BLM’s environmental analyses; (2) require BLM to issue an Environmental…