OIL & GAS ACT VIOLATION PENALTIES

HB 259 increases fines and fees for oil and gas companies violating New Mexico's regulations. It raises daily penalty limits from $2,500 to $10,000 for standard violations (up to $25,000 daily if health/safety risks exist) and sets a new maximum total penalty of $3.65 million for division/commission actions. The bill also hikes application fees (e.g., drilling permits from $500 to $1,500) and requires annual inflation adjustments starting in 2027. These changes directly affect oil and gas operators, permit applicants, and companies subject to the Oil and Gas Act.