Five wells in works as Legislature considers bill giving state authority over drilling
1/27/2009 - 1/28/09
"Private interests are rushing to tap lightly regulated supplies of briny water deep under New Mexico before the state can adopt new laws aimed at gaining more control over the valuable commodity.
On Monday, five companies with undisclosed ownership notified the state engineer that they intend to drill deep wells in the Santa Fe area and pump out up to 24 billion gallons a year.
They are among various companies that in the past year have been preparing to exploit a rare, unappropriated water supply that underlies the Rio Grande Valley before the New Mexico Legislature considers a bill that could give the state engineer authority over deep wells.
The House Agriculture Committee on Tuesday recommended passage of House Bill 19, sponsored by Rep. Mimi Stewart, D-Albuquerque. However, the bill's fate is uncertain.
While the state engineer is charged with managing New Mexico's water, state law contains an exception — wells that tap into aquifers that start at least 2,500 feet below the land's surface, contain briny water and are disconnected from upper aquifers.
Until recently, only oil and gas companies generally drilled that deep, and they were overseen by the state Energy, Minerals and Natural Resources Department. But the steep cost of treating the salt-laden, deep-aquifer waters has become less of a disincentive to developers and cities as the value of water has risen with semi-arid New Mexico's population growth.
In the last year, 18 companies have notified the state of plans to drill 190 deep wells and pump up to 345,000-acre feet of water per year. (One acre foot equals 325,851 gallons.)
Among those would-be well drillers are the five limited-liability companies that filed their notices Monday.
The companies, which records show were all formed on the same day last February, are all represented by attorney Michelle Henrie of the Albuquerque firm Atkinson & Thal. The company names are listed as San Juan Peaks, El Dorado Mines, Phoenix & Avriel, Monument Valley and Harmony Wells (and the Ortiz Mine Grant, Galisteo Basin, Santa Fe County)." More>>>>
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