Draft:New Mexico Oil Conservation Commission
Oil and gas regulatory commission of New Mexico
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The New Mexico Oil Conservation Commission (OCC) is a three-member regulatory commission of the State of New Mexico responsible for adopting rules governing oil and gas operations and adjudicating certain matters arising under the New Mexico Oil and Gas Act. The commission operates within the New Mexico Energy, Minerals and Natural Resources Department and exercises authority concurrently with the New Mexico Oil Conservation Division in matters delegated by statute.
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- Santa Fe, New Mexico
- Albert C.S. Chang, Chair
| Regulatory commission overview | |
|---|---|
| Jurisdiction | New Mexico |
| Headquarters |
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Regulatory commission executive |
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Parent Regulatory commission | New Mexico Energy, Minerals and Natural Resources Department |
| Website | https://www.emnrd.nm.gov/ocd/occ-info/ |
The commission was established by the New Mexico Oil and Gas Act of 1935 and is among the oldest oil and gas regulatory bodies in the western United States. Historically, the commission served as the state's primary oil and gas regulator. During the late twentieth and early twenty-first centuries, many day-to-day regulatory functions were delegated to the Oil Conservation Division, while the commission increasingly focused on rulemaking and review of division decisions.
As of 2026, the commission is chaired by Albert C.S. Chang, Director of the New Mexico Oil Conservation Division.
History
The commission was created in 1935 following the enactment of the New Mexico Oil and Gas Act. The legislation was adopted during a period of rapid oil-field development and reflected a nationwide movement toward conservation regulation intended to prevent physical and economic waste of petroleum resources.
During much of the twentieth century, the commission directly regulated well spacing, pooling, production allowables, and reservoir management. As New Mexico's oil and gas industry expanded, administrative responsibilities increasingly shifted to professional staff within what became the Oil Conservation Division.
Following the creation of the New Mexico Energy, Minerals and Natural Resources Department in 1987, the commission continued as a statutory body within the department. Over time, the division assumed responsibility for most permitting, inspection, enforcement, and administrative functions, while the commission retained rulemaking and adjudicatory authority.
In the 2020s, the commission played a significant role in adoption and amendment of regulations governing methane emissions, natural gas waste, produced water management, financial assurance requirements, and other issues associated with development of the Permian Basin.
Membership
Under New Mexico law, the commission consists of three members:
- The Director of the Oil Conservation Division.
- A designee of the Commissioner of Public Lands.
- A designee of the Secretary of Energy, Minerals and Natural Resources.
The Oil Conservation Division Director serves as chair of the commission.
Because two members serve by designation, the commission's membership may change when new designees are appointed by the Commissioner of Public Lands or the EMNRD Secretary.
Statutory Authority
The commission derives its authority primarily from the New Mexico Oil and Gas Act, codified at Sections 70-2-1 through 70-2-38 NMSA 1978.
Among its statutory powers are:
- Adoption, amendment, and repeal of oil and gas regulations.
- Prevention of waste of oil and gas resources.
- Protection of correlative rights.
- Regulation of drilling, production, plugging, and abandonment activities.
- Regulation of underground injection operations.
- Oversight of conservation practices affecting oil and gas reservoirs.
- Review of certain orders issued by the Oil Conservation Division.
The commission exercises concurrent authority with the Oil Conservation Division in several areas, although most routine regulatory functions are administered by the division.
Relationship with the Oil Conservation Division
The commission and the New Mexico Oil Conservation Division are distinct entities under New Mexico law.
The Oil Conservation Division functions as the state's administrative oil and gas regulatory agency. The division reviews permit applications, conducts inspections, investigates violations, issues administrative orders, and carries out day-to-day regulatory functions.
The commission functions primarily as a rulemaking and quasi-judicial body. It adopts regulations governing oil and gas operations and hears certain appeals and adjudicatory matters arising under the Oil and Gas Act.
The Director of the Oil Conservation Division serves simultaneously as director of the division and chair of the commission.
Rulemaking Authority
The commission adopts regulations contained within Title 19, Chapter 15 of the New Mexico Administrative Code.
Rules adopted by the commission address a wide range of subjects, including:
- Drilling and completion requirements.
- Well integrity standards.
- Underground injection control.
- Produced water management.
- Financial assurance and bonding.
- Plugging and abandonment.
- Venting and flaring.
- Natural gas waste reduction.
- Methane emissions management.
- Reporting and recordkeeping requirements.
Commission rulemakings are conducted through public proceedings that allow participation by industry representatives, environmental organizations, governmental entities, tribes, local governments, mineral owners, and members of the public.
Adjudicatory Functions
The commission possesses adjudicatory authority under the Oil and Gas Act.
Historically, the commission heard applications concerning well spacing, pooling, allowables, and conservation matters. In modern practice, many of these matters are decided administratively by the Oil Conservation Division.
The commission continues to hear appeals and conduct de novo review of certain division decisions. Commission proceedings are generally conducted in accordance with administrative due-process principles and may be subject to judicial review.
Major Regulatory Initiatives
Conservation and Resource Protection
Since its creation, the commission's central mission has been conservation of oil and gas resources and protection of correlative rights. These principles remain foundational to New Mexico oil and gas regulation.
Methane and Natural Gas Waste Rules
During the early 2020s, the commission adopted regulations intended to reduce natural gas waste and methane emissions associated with oil and gas operations. These rulemakings represented some of the most significant revisions to New Mexico's oil and gas regulatory framework in decades.
Produced Water Regulation
The commission has overseen development of regulations governing management, recycling, transportation, and disposal of produced water generated during oil and gas operations.
Orphan Well Remediation
The commission has supported regulatory programs designed to identify and remediate orphaned and abandoned oil and gas wells throughout the state.
See also
- New Mexico Energy, Minerals and Natural Resources Department
- New Mexico Oil Conservation Division
- Oil and Gas Act
- Permian Basin
- San Juan Basin
- New Mexico Administrative Code
External links
- Official Oil Conservation Commission website
- Official Oil Conservation Division website
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