New Mexico Governor's Water Recycling Initiative Faces Opposition Over Fracking Concerns

Environmental activists in New Mexico have pushed back against Governor Michelle Lujan Grisham's initiative aimed at financing the treatment and recycling of oil-industry wastewater, warning that the plan could lead to more water-intensive fracking for oil and natural gas.

The governor is seeking legislative and regulatory changes to enable the state to develop a new source of water by buying and selling treated water that originates from the used, salty byproducts of oil and natural gas drilling or from underground saltwater aquifers. However, critics argue that the plan relies on unproven technologies and might benefit oil and gas producers without necessarily reducing pressure on the state's ancient underground aquifers.

Critics Denounce the Initiative as a Potential Handout to the Oil and Gas Industry

An array of environmental and social-justice groups have denounced the initiative as a potential handout to the oil and natural gas industry. They argue for more investment in wind and solar energy and community-based projects.

Legislative Approval and Regulatory Framework

The plan aims to underwrite the treatment and recycling of oil-industry wastewater with up to $500 million in bonds over a two-year period, to spur private investment in water-treatment and desalination infrastructure. Approval from the Legislature is necessary for this construction-spending bill, and the state's annual legislative session ends on February 15.

The state Environment Department is proposing a new regulatory framework for reusing oil-industry wastewater and desalination of naturally occurring brine and has announced a request for technical and economic briefings from stakeholders.

Impact on New Mexico's Oil Production and Fracking Activities

New Mexico has extensive underground reservoirs of salty water that have been of limited use, crucial in hydraulic fracturing (fracking) and advanced drilling techniques that have propelled New Mexico to the No. 2 oil production state in the U.S. The governor's proposal has sparked concerns and a debate between environmental activists and state authorities regarding the potential consequences of the water recycling initiative on fracking activities and the environment.