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HB0326
HOUSE BILL 326
57th legislature - STATE OF NEW MEXICO - second session, 2026
INTRODUCED BY
Debra M. Sariñana
AN ACT
RELATING TO PRODUCED WATER; REQUIRING THE OWNER OR OPERATOR OF
A PRODUCED WATER FACILITY SEEKING AUTHORIZATION FOR THE
TREATMENT, REUSE, DISCHARGE OR TRANSPORT OF PRODUCED WATER TO
ACQUIRE INSURANCE; PROVIDING FOR JOINT AND SEVERAL LIABILITY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1.
Section 70-13-1 NMSA 1978 (being Laws 2019,
Chapter 197, Section 1) is amended to read:
"70-13-1. SHORT TITLE.--[
Sections 1 through 5 of this
act
]
Chapter 70, Article 13 NMSA 1978
may be cited as the
"Produced Water Act"."
SECTION 2.
A new section of the Produced Water Act is
enacted to read:
"[
NEW MATERIAL
] INSURANCE REQUIREMENT FOR PRODUCED WATER
PERMITS OR OTHER AUTHORIZATIONS.--
A. A state agency acting pursuant to the provisions
of the Produced Water Act shall not issue a permit or other
authorization for the treatment, reuse, discharge or transport
of produced water to an owner or operator of a produced water
facility who fails to acquire and maintain an insurance policy
that meets the requirements of Subsection B of this section.
B. Insurance required pursuant to the provisions of
this section shall:
(1) be issued by an insurer authorized to do
business in the state; and
(2) provide coverage in an amount sufficient
to fully recover the reasonably foreseeable costs of the spill
response, cleanup, remediation, reclamation, long-term
monitoring and public health impacts arising from produced
water treatment, reuse, discharge or transport activities of
the specific produced water facility for which coverage is
being obtained."
SECTION 3.
A new section of the Produced Water Act is
enacted to read:
"[
NEW MATERIAL
] JOINT AND SEVERAL LIABILITY FOR PRODUCED
WATER ACTORS.--A person who exercises control over the
production, treatment, use or reuse, discharge, disposal, sale
or transport of produced water shall be jointly and severally
liable to a person harmed by such activities for damages
arising from that harm."
SECTION 4.
EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2026.
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