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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