1. A. Statewide natural gas capture requirements. Commencing April 1, 2022, the operator of a natural gas gathering system shall reduce the annual volume of vented and flared natural gas in order to capture no less than ninety-eight percent of the natural gas gathered in each of two reporting areas, one north and one south of the Township 10 North line, by December 31, 2026. The division shall calculate and publish on the division’s website each operator’s baseline natural gas capture rate based on the operator’s fourth quarter 2021 and first quarter 2022 quarterly reports as per Paragraph (2) of Subsection G of 19.15.28.8 NMAC. In each calendar year between January 1, 2022 and December 31, 2026, the operator shall increase its annual percentage of natural gas captured in each reporting area in which it operates based on the following formula: (baseline loss rate minus two percent) divided by five, except that for 2022 only, an operator’s percentage of natural gas captured shall not be less than seventy-five percent of the annual gas capture percentage increase (2022 baseline loss rate minus two percent divided by five times 0.75), and the balance shall be captured in 2023.

   1. (1) The following table provides examples of the formula based on a range of baseline natural gas capture rates.

      Baseline Natural Gas Capture Rate Minimum Required Annual Natural Gas Capture Percentage Increase 90-98% 0-1.6% 80-89% >1.6-3.6% 70-79% >3.6-5.6% 0-69% >5.6-19.6%

      Baseline Natural Gas

      Capture Rate

      Minimum Required Annual Natural Gas Capture Percentage Increase

      90-98%

      0-1.6%

      80-89%

      >1.6-3.6%

      70-79%

      >3.6-5.6%

      0-69%

      >5.6-19.6%

   2. (2) If the operator’s baseline capture rate is less than sixty percent, the operator shall submit by the specified date to the division for approval, a plan to meet the minimum required annual capture percentage increase.
   3. (3) An operator’s acquisition or sale of a natural gas gathering system from another operator shall not affect its annual natural gas capture requirements. No later 60 days following the acquisition or sale, the operator may file a written request to the division requesting to modify its annual gas capture percentage requirements for good cause based on its acquisition or sale. The division may approve, approve with conditions, or deny the request in its sole discretion.
   4. (4) Operators that are affiliated shall consolidate their natural gas capture reporting and compliance obligations.

2. B. Accounting. No later than February 28 of each year beginning in 2023, the operator shall submit a report certifying compliance with its statewide gas capture requirements. The operator shall determine compliance with its statewide gas capture requirements by deducting any ALARM credits approved pursuant to this subsection from the aggregated volume of lost gas calculated for each month during the preceding year pursuant to Subparagraph (a) of Paragraph (3) of Subsection F of 19.15.28.8 NMAC, deducting that aggregated volume of lost gas from the aggregated volume of natural gas gathered for each month during the preceding year, and dividing that volume by the aggregated volume of natural gas gathered for each month during the preceding year.

   1. (1) An operator that used a division‑approved ALARM technology to monitor for leaks and releases may obtain a credit against the volume of lost natural gas if it discovered the leak or release using the ALARM technology, and the operator:

      1. (a) isolated the leak or release within 48 hours following field verification;
      2. (b) repaired the leak or release within 15 days following field verification or another date approved by the division;
      3. (c) timely notified the division by filing a form C‑129 or form C‑141; and
      4. (d) used ALARM monitoring technology as a routine and on‑going aspect of its waste-reduction practices.
3. (i) For discrete waste-reduction practices such as aerial methane monitoring, the operator must use the technology at least twice per year; and

4. (ii) for waste‑reduction practices such as automated emissions monitoring systems that operate routinely or continuously, the division will determine the required frequency of use.

   1. (e) The division shall publish a list of division-approve ALARM technologies on the division’s website.
   2. (2) An operator may file an application with the division for a credit against its volume of lost natural gas that identifies:

5. (a) the ALARM technology used to discover the leak or release;

   1. (b) the dates on which the leak or release was discovered, field-verified, isolated, and repaired;
   2. (c) the method used to measure or estimate the volume of natural gas leaked or released;
   3. (d) a description and the date of each action taken to isolate and repair the leak or release;

6. (e) visual documentation or other verification of discovery, isolation, and repair of the leak or release;

   1. (f) a certification that the operator did not know or have reason to know of the leak or release before discovery using ALARM technology; and
   2. (g) a description of how the operator used ALARM technology as a routine and on‑going aspect of its waste‑reduction practices.

   3. (3) For each leak or release reported by an operator that meets the requirements of Paragraphs (3) and (4) of Subsection B of 29.15.28.10 NMAC, the division, in its sole discretion, may approve a credit that the operator can apply against its reported volume of lost natural gas as follows:

      1. (a) a credit of forty percent of the volume of natural gas discovered and isolated within 48 hours of discovery and timely repaired; and
      2. (b) an additional credit of twenty percent if the operator used ALARM technology no less than once per calendar quarter as a routine and on‑going aspect of its waste‑reduction practices.

   4. (4) A division‑approved ALARM credit shall:

      1. (a) be used only by the operator who submitted the application pursuant to Paragraph (2) of Subsection B of 29.15.28.10 NMAC;
      2. (b) not be transferred to or used by another operator, including a parent, subsidiary, related entity or person acquiring the natural gas gathering system;
      3. (c) be used only once; and
      4. (d) expire 24 months after division approval.
   5. (5) The division will publish a list of approved ALARM technology.

7. C. Third‑party verification. The division may request that an operator verify any data or information collected or reported pursuant to this part, make recommendations to correct or improve the collection and reporting of data and information, submit a report of the verification and recommendations to the division by the specified date, and implement the recommendations in the manner approved by the division. If the division and the operator cannot reach agreement on the division’s request, the operator may file an application for hearing before the division. The operator, at its own expense, shall retain a third party approved by the division to conduct the activities agreed to by the division and the operator or ordered by the division following a hearing.

   History of 19.15.28 NMAC: [RESERVED]

[19.15.28.10 NMAC – N, 05/25/2021; A, 02/22/2022]