HB 326

                                1  HOUSE BILL 326
                                2     57TH LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 2026
                                3  INTRODUCED BY
                                4  Debra M. Sariñana
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                                10  AN ACT
                                11   RELATING TO PRODUCED WATER; REQUIRING THE OWNER OR OPERATOR OF
                                12   A PRODUCED WATER FACILITY SEEKING AUTHORIZATION FOR THE
                                13   TREATMENT, REUSE, DISCHARGE OR TRANSPORT OF PRODUCED WATER TO
                                14   ACQUIRE INSURANCE; PROVIDING FOR JOINT AND SEVERAL LIABILITY.
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                                16   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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                                17        SECTION 1.     Section 70-13-1 NMSA 1978 (being Laws 2019,
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                                18   Chapter 197, Section 1) is amended to read:
                                19        "70-13-1.     SHORT TITLE.--[Sections 1 through 5 of this
                                20   act] Chapter 70, Article 13 NMSA 1978 may be cited as the
                                21   "Produced Water Act"."
                                22        SECTION 2.     A new section of the Produced Water Act is
                                23   enacted to read:
                                24        "[NEW MATERIAL] INSURANCE REQUIREMENT FOR PRODUCED WATER
                                25   PERMITS OR OTHER AUTHORIZATIONS.--
                                     .233317.3
                                1  A.   A state agency acting pursuant to the provisions
                                2    of the Produced Water Act shall not issue a permit or other
                                3    authorization for the treatment, reuse, discharge or transport
                                4    of produced water to an owner or operator of a produced water
                                5    facility who fails to acquire and maintain an insurance policy
                                6    that meets the requirements of Subsection B of this section.
                                7  B.   Insurance required pursuant to the provisions of
                                8    this section shall:
                                9  (1)   be issued by an insurer authorized to do
                                10   business in the state; and
                                11  (2)   provide coverage in an amount sufficient
                                12   to fully recover the reasonably foreseeable costs of the spill
                                13   response, cleanup, remediation, reclamation, long-term
                                14   monitoring and public health impacts arising from produced
                                15   water treatment, reuse, discharge or transport activities of
                                16   the specific produced water facility for which coverage is
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                                17   being obtained."
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                                18        SECTION 3.     A new section of the Produced Water Act is
                                19   enacted to read:
                                20        "[NEW MATERIAL] JOINT AND SEVERAL LIABILITY FOR PRODUCED
                                21   WATER ACTORS.--A person who exercises control over the
                                22   production, treatment, use or reuse, discharge, disposal, sale
                                23   or transport of produced water shall be jointly and severally
                                24   liable to a person harmed by such activities for damages
                                25   arising from that harm."
                                     .233317.3
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                                1  SECTION 4.   EFFECTIVE DATE.--The effective date of the
                                2    provisions of this act is July 1, 2026.
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                                     .233317.3