New Mexico Surface Owner Bill Headed To House Floor!

From: NMCGA [mailto:nmcga@nmagriculture.org]
Sent: Monday, February 26, 2007 4:04 PM
Subject: Surface Owner Bill Headed To House Floor!

After literally years of work New Mexico's Surface Owner Protection Act, HB 827, is headed to House Floor. It could be on the floor as early as Wednesday, February 28, 2007.

The measure passed out of House Energy & Natural Resources Committee this morning with no objection after over an hour of discussion and debate.

The original bill is attached as well as the amendments that have been negotiated, agreed upon and adopted as the measure went through its' two (2) House committees. Because 827 is the result of negotiation, it clearly is not the bill that was initiated over two years ago. However, just as clearly it is the strongest surface owner protection law in the country.

There have been two issues, in particular, that have drawn a great deal of concern. Please rest assured that there have been no less than a half dozen lawyers participating in the negotiations every step of the way. We have also sought the advice of other attorneys. We are told that these areas are clearly and carefully addressed.

The first is potential erosion of the Sims vs.. Amoco case which prevents an oil and gas operator from jumping across private property from lease to lease. That private property right is protected in the second set of amendments [2} attached with the following language:

1. On page 2, lines 11 and 12, strike "oil and gas operations are to take place" and insert in lieu thereof "the operator has the legal right to conduct oil and gas operations".

The second area of concern is that this bill will impact the McNeill vs.. Burlington case, which was remanded back to district court by the New Mexico Court of Appeals last fall and has apparently recently been accepted by the New Mexico Supreme Court. The McNeill case, at least thus far, provides the ability for consideration of diminished land value. That issue is addressed by language in the amendment [2] which says:

On page 2, line 23, after "for" strike the remainder of the line and strike line 24 and insert in lieu thereof the following: "damages sustained by the surface owner, as applicable, for loss of agricultural production and income, lost land value, lost use of and lost access to the surface owner's land and lost value of improvements caused by oil and gas operations. The payments contemplated by this section only cover land affected by oil and gas operations.".

We are told that there will be an attempt at floor amendments initiated by a representative employed by the oil and gas industry that will attempt to weaken the Surface Owners Protection Act.

To get this bill passed and moved on to the Senate, we need calls to every member of the New Mexico House of Representatives. Every member can be reached by calling 505.986.4600 and asking for the individual representative by name. You can locate a list of all the representatives and their direct phone numbers at: http://legis.state.nm.us/lcs/ Go to the "find you legislator" on the upper left side of the page, then to 2007 Office Assignments & Numbers.

You might also want to call and thank Representative Andy Nunez for his support and perseverance in introducing this bill and staying in behind it for three years!

If you have comments or questions, please let us know.

Caren Cowan
Executive Director
New Mexico Cattle Growers' Association
505.247.0584 phone
505.842.1766 fax
www.nmagriculture.org website
nmcga@nmagriculture.org email