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New Mexico files methane rule to catch big oil and gas leaks faster, curb wasted fuel

Without action on climate change between now and 2050, cumulative costs could reach $294 billion.

A worker in a blue uniform and helmet operates machinery on a sunny day.

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New Mexico could require oil and gas operators to respond much faster when large methane leaks are detected.

The proposed state rule would tighten oversight of methane, one of the most potent planet-warming gases, by accelerating the discovery of major leaks and requiring repairs within days, rather than allowing pollution and fuel to continue escaping.

Here's what to know

The New Mexico Environment Department said it has submitted a proposed methane rule to the Environmental Improvement Board. According to the department and the Los Alamos Daily Post, the measure would create a state-run process to identify major leaks and revise standards for some oil and gas equipment.

Under the proposal, the department could approve qualified third parties to use tools such as satellites and aircraft to detect large methane releases from oil and gas operations. If a potential leak is identified, the state would notify nearby operators and direct them to investigate.

If an operator finds a leak, it would then have to fix the problem and report the results to the state. In most cases, the investigation and repair would have to be completed within three days of notification.

Environment Secretary James Kenney said the state sees the proposal as the next step after its existing oil and gas rules, with an emphasis on shortening response times for larger leaks.

"Methane leaks result in climate change, air pollution and waste of New Mexico's natural resources," Kenney said.

More background

Methane is a potent heat-trapping gas, and when it leaks from oil and gas infrastructure, it also represents lost fuel that companies otherwise could have sold.

Officials said quicker detection could preserve natural gas that would otherwise be lost, lower methane pollution, and protect public revenue tied to oil and gas production.

New Mexico has estimated that without action on climate change between now and 2050, cumulative costs could reach $294 billion from infrastructure damage, health impacts, and agricultural losses.

The proposal also reflects a broader push by Governor Michelle Lujan Grisham's administration to address air pollution from two major sources: oil and gas production and transportation.

What's being done?

In addition to creating a faster leak-response system, the proposed methane rule would change the requirements for equipment used in oil and gas operations.

New Mexico already requires upgrades for many devices so they do not vent natural gas into the air, and the new rule would expand those requirements over time.

By 2031, officials said, those equipment standards would be aligned with federal rules.

The filing also builds on several state actions, including the 2022 Ozone Precursor Rule, stronger clean vehicle standards adopted in 2023, new Regional Haze requirements implemented in January 2026, and the Clean Transportation Fuel Program launched in April 2026.

The Environmental Improvement Board will decide whether to hold a public hearing on the proposed methane rule. If it moves forward, the measure could become another part of the state's strategy to curb pollution, conserve energy resources, and limit climate damage.

As Kenney put it, "This regulatory proposal builds on New Mexico's nationally-leading oil and gas rules and will result in oil and gas operators finding larger leaks faster, fixing them, and keep more natural gas where it belongs — in the pipeline."

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