N.M. Admin. Code § 20.6.8.400 - [Effective 7/12/2025] PRODUCED WATER REUSE

As provided in the Water Quality Act, Subsection P of Section 74-6-4 NMSA 1978, and the Produced Water Act, Subsection B of Section 70-13-3 NMSA 1978, the following provisions apply to the discharge of produced water for activities unrelated to the exploration, drilling, production, treatment, or refinement of oil or gas.

A. General requirements.

(1) Untreated produced water discharge to surface water: No person shall cause or allow untreated produced water to discharge so that it may move directly or indirectly to a surface water. The department shall deny certification of any federal permit proposing to discharge untreated produced water to a surface water.

(2) Treated produced water discharge to surface water: No person shall cause or allow treated produced water to discharge so that it may move directly or indirectly to a surface water. The department shall deny certification of any federal permit proposing to discharge treated produced water to a surface water.

(3) Untreated produced water discharge to ground water: No person shall cause or allow untreated produced water to discharge so that it may move directly or indirectly into ground water. The department shall not issue a discharge permit or a discharge permit modification that includes the discharge of untreated produced water.

(4) Treated produced water discharge to ground water: No person shall cause or allow treated produced water to discharge so that it may move directly or indirectly into ground water. The department shall not issue a discharge permit or a discharge permit modification that includes the discharge of treated produced water.

B. Authorized pilot projects Pilot projects determined by the department not to require a discharge permit because the pilot project will not discharge in a manner that may directly or indirectly affect ground or surface water, are subject to the following requirements:

(1) Persons intending to conduct a pilot project shall secure and comply with all applicable federal, state, and local statutes, permits, and certifications, including the Produced Water Act, Sections 70-13-1, et. seq NMSA 1978, and including payment of department fees and satisfying department financial assurance requirements.

(2) The pilot project shall be designed to provide information specific to untreated produced water quality, treatment technologies, treated produced water quality, treatment volumes, and toxicity studies for potential produced water reuse applications.

(3) Any person intending to conduct a pilot project shall submit to the ground water quality bureau of the department an application for a produced water pilot project permit prior to use.

(4) Pilot projects shall not commence until the department has issued a pilot project permit.

(5) Persons distributing, transporting, storing, treating, or utilizing untreated or treated produced water shall have written procedures at the locations where the pilot project is physically located to describe measures to prevent releases onto the ground, directly or indirectly into ground or surface water.

(6) All untreated and treated produced water shall be handled, transported, distributed, and stored in accordance with all applicable local, state, and federal regulations.

(7) Any release of untreated or treated produced water is subject to the notifications and corrective actions in 20.6.2.1203 NMAC except releases under the authority of the oil conservation commission pursuant to the provisions of the Oil and Gas Act, NMSA 1978, Section 70-2-12 and other laws conferring power on the oil conservation commission and the oil conservation division of the energy, minerals, and natural resources department to prevent or abate water pollution.

(8) Persons disposing of untreated or treated produced water, as part of the final disposition following a pilot project shall use an appropriate method approved by the department, which may include one of the following methods in accordance with the relative permit: discharge to a produced water disposal well permitted pursuant to the oil conservation commission's regulations for oil and gas injection at 19.15.26 NMAC, delivery to a surface waste management facility permitted pursuant to the oil conservation commission's regulations for oil and gas surface waste management facilities at 19.15.36 NMAC, or disposal in a permanent pit permitted pursuant to the oil conservation commission's regulations for oil and gas pits, closed-loop systems, below-grade tanks and sumps at 19.15.17 NMAC. The department may consider alternative disposal options on a case-by-case basis.

(9) Persons disposing of the components of a pilot project using untreated or treated produced water, as part of the final disposition must adhere to all local, state, and federal regulations, as applicable.

C. Produced Water Pilot Project Permit.

(1) Any person intending to use produced water for an authorized pilot project under Subsection B of 20.6.8.400 NMAC shall submit to the ground water quality bureau of the department an application for a produced water pilot project permit prior to use and shall not proceed with the project until the application is approved.

(a) Applications shall be on a form provided by the department and shall include the following information:

(i) the name and address of the person intending to conduct the pilot project;

(ii) the location of the intended pilot project;

(iii) the concentration of water contaminants in the untreated produced water used in the pilot project;

(iv) the daily quantity of produced water treated in the pilot project;

(v) the pilot project research plan and objectives;

(vi) documentation that the pilot project design is consistent with the approved uses in Subsection B of 20.6.8.400 NMAC;

(vii) the storage, secondary containment and spill prevention methods that will be used to prevent accidental discharges; and the plans for a monitoring program and devices to detect any such discharges;

(viii) a plan to transport in and transport out any untreated produced water or treated produced water in a safe manner, in accordance with state and federal regulations;

(ix) plans for safe handling, characterization, and proper disposal of produced water, treatment residuals and wastes, and any materials that come into contact with untreated produced water or treated produced water, and any other waste generated by the project, including soils, plant material, treatment equipment, and containment area materials;

(x) plans to minimize the risk of human exposure to produced water via any exposure pathway;

(xi) financial assurance in place to cover the cost of cleanup and remediation in the event of failure during operation and closure of the pilot project.

(xii) proposed locations and newspaper for providing notice of the pilot project consistent with the manner of notice required of discharge permit applications set out in Subsection A of 20.6.2.3108 NMAC.

(b) The department, at its discretion, may request additional information.

(c) Based on the information provided in the application, the department shall determine whether the application is administratively complete and notify the applicant of any deficiencies.

(2) Following a determination that an application is administratively complete, the applicant and department shall proceed with the further public notice and participation requirements set out in Subsections B through N of 20.6.2.3108 NMAC and 20.6.2.3110 NMAC; and the relevant evaluation and action requirements set out in 20.6.2.3109 and 20.6.2.3111 NMAC. The plans required of the applicant in Paragraph (1) of Subsection C shall be incorporated into the pilot project permit as enforceable conditions. The department shall provide in the permit a daily maximum produced water capacity and the term of any pilot project permit shall not exceed five years. Appeals from the secretary's decisions and the commission's decisions may be taken in accordance with 20.6.2.3112 and 20.6.2.3113 NMAC.

(3) Data Reporting Requirements

(a) Persons implementing pilot projects pursuant to Subsection B of 20.6.8.400 NMAC shall submit to the department all research results, including lab analyses of all water contaminants in the untreated produced water and treated produced water, to assist the department in developing standards and assist the commission in promulgation of regulations for the use of treated produced water in a manner that prevents water pollution and protects human health and the environment.

(b) Persons implementing pilot projects pursuant to Subsection B of 20.6.8.400 NMAC shall submit to the department monthly reports with the volume of water treated, water quality data for all liquid streams, and the volumes, mass, and characteristics of liquid and solid waste disposed of, as requested by the department.

(c) The department shall publish on its website all applications for produced water pilot project permits, all written procedures and plans required by Subsections B and C of this Section, the department's determination, and supplemental information provided by the applicant at the department's request.

Notes

N.M. Admin. Code § 20.6.8.400

Adopted by New Mexico Register, Volume XXXVI, Issue 12, June 24, 2025, eff. 7/12/2025