The oil and gas industry contributes substantially to the New Mexico state economy. If the legislature passes the reforms to the industry that are proposed, this could have an impact on the industry as a whole. Independent insurance agents Albuquerque NM can help guide your business through the regulatory changes and help you plan your risk management efforts.
The most significant focus seems to be on environmental law violations. The proposed changes introduce an increase in fines and penalties for violators. The state is making an effort to increase accountability.
The legislature is considering adding rules and regulations to oil and gas operations that control methane emissions. The industry as a whole has done a great job lowering carbon emissions partly by capturing and selling the methane emissions. New regulations could change some of the ways the industry handles methane emissions.
For those companies operating on state lands, there is a potential increase in royalty rates to 25 percent from a current 20 percent. Paying more to the state for leasing doesn’t mitigate the risks involved in operating the business.
When the industry changes, it can put many business owners and shareholders on edge. Using independent insurance agents Albuquerque NM to help with your risk management and tailor insurance products to your business can make the changes less daunting.