Nabbing bad lease-holders vital to state

All it takes are a few bad actors to ruin the show.

An apparent one, Siana Operating of Midland, Texas, which provides oilfield well-water disposal services, has drawn the attention of State Land Commissioner Aubrey Dunn for spills and environmental damage at an injection well site southwest of Eunice.

That, in part, has caused Dunn to order a sweeping review of public land easements and leases for about 60 wells on state trust land that dispose of waste saltwater from the drilling process. Trucks bring the waste-water to injection sites where most of the oil is removed before the water is re-injected deep underground.

Siana has been operating two disposal wells in New Mexico that injected over 13 million gallons in 2014. State Land Office regulators claim Siana trespassed and damaged a site near Eunice after it stopped making lease payments to the state in 2012.

The lease has expired, and the company owes $113,000 in unpaid royalties for water disposal and annual lease fees. It also has been slow to come up with a plan to clean up the site and remove old equipment, according to the Land Office.

So, the office fenced off the site to prevent additional deliveries, did an emergency cleanup and sent Siana a $20,000 bill. It recently ordered Siana to get an entry permit to clean up the damage, and threatened “any and all criminal and civil actions available” if it doesn’t comply.

Also, the state Oil Conservation Division issued an emergency order last month for Siana to temporarily shut off all of its wells until a hearing is held on possible violations.

Perhaps most egregious is that the money from royalties and lease fees is designated for public schools, hospitals and other uses that predominantly benefit children.

Dunn deserves credit for going after lease-holders that are not good stewards of New Mexico’s public lands or that don’t pay their bills to the state. True, it’s part of his job, but it’s a vital one.

— Albuquerque Journal