New Mexico HM 23: "OIL & GAS INDUSTRY DAY"

Bill Text

HM023

HOUSE MEMORIAL 23

54th legislature - STATE OF NEW MEXICO - first session, 2019

INTRODUCED BY

James G. Townsend and Candy Spence Ezzell and Greg Nibert and 
David M. Gallegos and Cathrynn N. Brown

A MEMORIAL

DECLARING FEBRUARY 6, 2019 "OIL AND GAS INDUSTRY DAY" IN THE 
HOUSE OF REPRESENTATIVES.

 WHEREAS, New Mexico is one of North America's leading 
energy producers, ranking third in oil production and ninth in 
natural gas production according to data collected by the 
United States energy information administration; and

 WHEREAS, the Permian basin is at the center of an energy 
resurgence attracting interest from around the world; and

 WHEREAS, a 2018 resource review by the United States 
geological survey described the Permian basin as the "largest 
continuous oil and gas resource ever assessed" with an 
estimated potential for extraction of forty-six billion three 
hundred million barrels of oil plus two hundred eighty-one 
trillion cubic feet of gas and twenty billion barrels of 
natural gas liquids; and

 WHEREAS, the oil and natural gas industry is the largest 
private sector employer in New Mexico, providing more than one 
hundred thousand direct and indirect jobs for state residents; 
and

 WHEREAS, the revenues collected from New Mexico's oil and 
natural gas industry help fund the state's schools, roads and 
public facilities; and

 WHEREAS, the oil and natural gas industry in New Mexico is 
the state's leading educational supporter and provides over 
ninety percent of all school capital investment through the 
land grant permanent fund, also known as the permanent school 
fund; and

 WHEREAS, the New Mexico tax research institute, analyzing 
data from the legislative finance committee and the department 
of finance and administration, estimates that the oil and 
natural gas industry in New Mexico contributed approximately 
two billion two hundred one million seven hundred thousand 
dollars ($2,201,700,000), or roughly thirty-two percent, to the 
state general fund during fiscal year 2018; and

 WHEREAS, the oil and natural gas industry in New Mexico 
also contributed approximately seven hundred forty-nine million 
seven hundred thousand dollars ($749,700,000) to the corpus of 
the land grant permanent fund and the severance tax permanent 
fund in fiscal year 2018; and

 WHEREAS, as of fiscal year 2018, ninety-six and eight-tenths percent of the land grant permanent fund and eighty-seven percent of the severance tax permanent fund are composed 
of contributions made by the oil and natural gas industry in 
New Mexico through the payment of royalties and severance 
taxes; and

 WHEREAS, the New Mexico tax research institute estimates 
that the oil and natural gas industry generated approximately 
eight hundred twenty-two million three hundred thousand dollars 
($822,300,000) in funding for public schools in New Mexico and 
approximately two hundred forty million five hundred thousand 
dollars ($240,500,000) for colleges and universities in the 
state in fiscal year 2018; and

 WHEREAS, according to the United States department of the 
interior, New Mexico earned six hundred thirty-four million 
nine hundred thousand dollars ($634,900,000) from energy and 
mineral production on federal and tribal lands during fiscal 
year 2018, making it the number one state for earnings last 
year; and

 WHEREAS, approximately eighty percent of year-over-year 
growth in estimated revenue collection in fiscal year 2018 has 
been attributed to increased oil and natural gas production and 
higher severance tax collections, improved oil and natural gas 
industry-related rents and royalties and additional gross 
receipts tax revenue from Eddy and Lea counties in the Permian 
basin, according to legislative finance committee economists; 
and

 WHEREAS, natural gas is the second-largest source of 
electricity generation in New Mexico and provides heating for 
two-thirds of the state's households, according to the United 
States energy information administration; and

 WHEREAS, New Mexico's oil and natural gas producers are 
committed to innovating and investing in cutting-edge 
technologies to further minimize the industry's environmental 
footprint while safely and responsibly growing energy 
production; and

 WHEREAS, the number of rigs operating in New Mexico in 
2018 was more than double the number from the previous year; 
and

 WHEREAS, oil and gas producers, independent of the 
revenues paid to the state through royalties and taxes, 
invested millions of dollars in the ten New Mexico counties in 
which they operate, providing scholarships to students, rewards 
to teachers, investments in emergency services and equipment 
and contributions to schools and youth community programs; and

 WHEREAS, an unprecedented coalition of sixteen oil and gas 
companies, each represented by its chief executive officer, 
formed the Permian strategic partnership to work in partnership 
with local stakeholders to address