New Mexico asks Biden administration to resolve drilling policy 'confusion'

Feb 10 (Reuters) - New Mexico officials are asking the Bidenadministration to resolve confusion in the state's oil and gasindustry over a 60-day pause on allowing state-level staff toissue approvals for new federal lands drilling.

In a letter dated Feb. 9 but seen by Reuters on Wednesday,Sarah Cottrell Propst, secretary of New Mexico's Energy,Minerals and Natural Resources Department, asked the Departmentof Interior to clarify how right-of-way permits fit into thepolicy.

The order, issued Jan. 20, stripped Interior agencies andbureaus of their authority to issue new drilling leases orpermits while it reviews the federal minerals leasing program aspart of a broader agenda to fight climate change. The order didnot limit existing operations and did not extend to permitsnecessary to preserve health and safety.

"There is confusion in the field regarding which approvalsfall within these categories," Cottrell Propst said in theletter, adding that companies had reported "many examples ofapprovals not moving forward."

An Interior Department spokesman would not comment on theletter. All leases and permits are being reviewed and approvedby agency officials in Washington, according to the department.

The state is asking the department to clarify whether rightof way permits are considered existing operations, since theyare often required after a company has been issued a drillinglease and permit.

New Mexico is a checkerboard of federal, state and privatelands, and oil and gas producers commonly seek rights of way tocross multiple types of properties with wells, water lines,roads and utilities.

"It's not uncommon to need additional approvals," AdrienneSandoval, the state's Oil Conservation Division director, saidin an interview with Reuters this week.(Reporting by Nichola Groom and Jennifer Hiller; Editing byStephen Coates)

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