The geyser of public concern that erupted when Tecton Energy announced plans to drill for oil in the Galisteo Basin last year seems to have slowed to a trickle of dogged stakeholders.
About 800 people packed the Santa Fe High School gymnasium last year to discuss Santa Fe County's early attempts at drafting regulations to govern the oil and gas industry. Only about 100 people attended Thursday's County Development Review Committee hearing on the latest version of those regulations.
The tone was decidedly different, too.
Last year's crowd booed, hissed and berated county officials. This time the audience repeatedly thanked officials and planners for their dedication to the task of protecting county residents and resources from the potential impacts of hydrocarbon production.
One resident whose home is within sight of a proposed well location hailed the draft general plan amendment and oil and gas regulations as "path breaking."
But there was also criticism about the setbacks required from homes and water sources; and the failure of the plan to designate any area as completely off limits for development.
The proposed new regulations — set out in several hundred pages of detailed maps, graphs and clauses — are exhaustive compared to the version prepared by County Attorney Steve Ross last fall.
"God knows why anyone would want to come drill when they have to go through all this stuff," said CDRC chairman Jon Paul Romero.
The new regulations require prospective oil and gas developers to obtain multiple approvals and submit dozens of financial and environmental impact studies (conducted by the county but paid for by the applicant) prior to being given permission to drill.
Areas of high, low and moderate sensitivity have been identified and mapped by considering dozens of factors including habitat for birds, amphibians, reptiles, scenic views and proximity to roads.
In areas of high sensitivity, the rules call for restricting developers to 10 percent of the well sites normally allowed by the state Oil Conservation Division, which has regulatory authority over the industry.
The planners estimate that given a "moderate" level of oil and gas development, Santa Fe County would need about $61 million over the next 20 years to pay for the new roads, fire stations and employees that would be needed to keep pace with the development. Those costs, according to the regulations, would need to be paid by the developers, before production can start.
Michelle Henrie, an attorney who represents Ortiz Mines, which owns most of the 65,000 acres of mineral rights Tecton Energy leased for oil exploration in the Galisteo Basin, is worried about how those costs will be levied.
"Our goal has been to try to balance the environmental protections ... and the interests of the mineral owners," Henrie said. "This is the only asset we have left. The county has already regulated away hard rock mining. We want the process to be feasible."
New Mexico Oil and Gas Association presidents Bob Gallagher said the new rules are absurdly prohibitive and promised that NMOGA would challenge them in court if and when they are formally adopted by the county.
"I think the county could have saved paying a a big city lawyer over $300,000 and just continued it's no drilling moratorium," Gallagher said Thursday in a phone interview. "Because that is exactly what this document is, and that's what the court will see it for as well."
Oil Conservation Division spokesman Jod Porter said the agency had no comment on the current draft and would likely wait to comment until the rules are further refined.
The CDRC will review the draft again on Nov. 6 and 14 before making recommendations on them and passing them on for consideration by the County Commission on Nov. 18. The county's yearlong moratorium on oil and gas development ends in February but could be extended for an additional six months.
Tecton Energy, the company that sent area residents into a panic last fall by announcing they'd seek to recover 100 million gallons of "light sweet crude" from Galisteo Basin, declined to comment on the draft regulations. The company has reportedly listed its oil and gas leases in the basin for sale.
Contact Phaedra Haywood at 986-3068 or phaywood@sfnewmexican.com.