This white paper (Draft) is a product of the cooperative process outlined in a memorandum of understanding (MOU) that the State of New Mexico and the EPA entered into on July 16, 2018 (see Appendix A). The purpose of the MOU was to embark on a state and federal effort to clarify the existing regulatory and permitting frameworks related to the way produced water can be reâ€used, recycled and renewed for purposes in New Mexico.
Water in New Mexico—Scarcity and Abundance
New Mexico is an arid state. According to the National Oceanic and Atmospheric Administration (NOAA), it tends to rank as the fifth driest state in the nation, receiving just under 15 inches of rainfall per year. The spring of 2018 marked one of the lowest runoff seasons along the Rio Grande and Pecos Rivers in decades. Government water managers had to broker agreements to keep the river flowing through central New Mexico while stretches in the south had gone dry. Given that drought is no stranger to New Mexico, decisions about water are growing ever more complicated and meaningful. According to NOAA, droughts in New Mexico are projected to become more intense. Recent droughts have harmed communities across the state. For example, the extreme drought in the Chihuahuan Desert caused grasslands to die, decreasing grazing resources for livestock. In another example, the U.S. Department of Agriculture (USDA) designated 12 counties in New Mexico as primary natural disaster areas due to losses and damages caused by drought. Droughts not only challenge New Mexico’s agricultural industry but also increase the frequency and severity of wildfires and dust storms. Many New Mexicans understand such impacts all too well.
About 95% of New Mexico is currently in a drought compared to 11.4% a year ago. The USDM is a partnership between the National Drought Mitigation Center at the University of Nebraska–Lincoln, the USDA, and the NOAA. The USDM releases a weekly map showing parts of the United States that are in drought. It uses five
categories: D0 (for abnormally dry areas that may be going into or are coming out of drought), D1 (moderate drought), D2 (severe drought), D3 (extreme drought) and D4
(exceptional drought). New Mexico has 16 water planning regions, each with its own water plan. New Mexico also has a state water plan. The regional and state water plans are vital tools intended to guide water management to best meet the needs of all the state’s water users. Looking toward the future, all regional water plans from around the state anticipate the need for new sources of water.
The New Mexico Office of the State Engineer (OSE) is charged with administering the state’s water resources. The OSE is dedicated to protecting existing water rights, enhancing the state’s public welfare, and ensuring that water use is not contrary to conservation while supporting the use of alternative water resources. Beyond the OSE, many stakeholders invest significant time and resources into promoting water conservation. Private citizens, interest groups, academia, industry, tribes, local government, federal agencies and the media all help meaningfully protect the state’s water resources.
While conservation plays an important role in managing the state’s limited water resources, it is not enough. Managing water scarcity has always been important in New Mexico, but never more important than now. “Revolutionary ideas are needed to ensure [water] demand can be balanced in the future,”observed Tom Blaine, the New Mexico State Engineer. The New Mexico State Engineer has authority over the appropriation and distribution of all surface and groundwater in New Mexico.
In 2018, New Mexico became the third largest oil producer in the United States. Oil and natural gas wells generate large volumes of water known as produced water. Produced water is the fluid brought up from the hydrocarbonâ€bearing strata during the extraction of oil and natural gas, and includes, where present, formation water, injection water, and any chemicals added downhole or constituents released from the formation. Produced water is generated in large quantities over long periods. As oil and natural gas production diminishes from a given well, produced water volumes can continue to increase. For every barrel of oil, four or five barrels of produced water may be generated: an estimated 168 to 210 gallons of produced water for every 42 gallons of oil produced. In 2017, oil and natural gas production in New Mexico
generated 900 million barrels, or 37.8 billion gallons of produced water. As oil and gas production volumes continue to grow in New Mexico, so will the amount of produced water. Traditionally, produced water has been considered a waste product of oil and natural gas industry. Produced water has been considered a waste, because it commonly contains levels of total dissolved solids (TDS) and other constituents (organic chemicals, inorganic chemicals, metals and naturally occurring radioactive materials). Produced water is often managed in storage tanks, then trucking or piping to underground injection wells. The underground injection wells, sometimes referred to as salt water disposal wells, dispose of the produced water deep underground. In other instances, produced water may be used in active exploration and production (E&P) reservoirs for enhanced oil recovery (EOR) processes or reused in the oilfield as make up water for drilling and stimulation activities. Advances in water treatment technology have shown promise in turning this wastewater into a future water resource. However, there remain important scientific questions related to the human health and environmental implications of using treated produced water for applications outside the oil and natural gas industry.
Western states facing water scarcity and prolonged periods of drought are focusing on this potential resource. Such challenges have led to a national dialogue on produced water management and opportunities. Organizations like the Environmental Council of the States, the Interstate Oil and Gas Compact Commission, the Groundwater Protection Council, the National Governors Association Center for Best Practices and others have advanced this topic from a policy perspective. Industry, environmental nongovernmental organizations and academia have greatly contributed to these efforts to fill crucial data gaps for state and federal policymakers. While the national dialogue on produced water continues, clarifying the state and federal regulatory frameworks associated with produced water reâ€use and recycling is of the utmost importance to New Mexico. To address whether the existing regulatory framework and associated policies adequately contemplate and facilitate the utilization of treated produced water, the State of New Mexico engaged the U.S. Environmental Protection Agency (EPA) to collaborate on this specific topic.
Original URL withdrawn: http://www.emnrd.state.nm.us/wastewater/documents/Oil%20and%20Gas%20Produced%20Water%20Goverance%20in%20the%20State%20of%20New%20Mexico%20Draft%20White%20Paper.pdf
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