How NMOGA is Balancing Industry Growth with Environmental Responsibility

New Mexico is one of the United States' leading oil and natural producers, ranking 2nd in annual oil production and 9th in annual natural gas production concentrated in two areas: the Permian Basin in the southeast and the San Juan Basin in the northwest. With its significant contributions to the industry, the state also faces the challenge of addressing environmental concerns, particularly when it comes to methane emissions. The state’s regulatory framework is designed with a clear objective: reducing methane emissions while ensuring the continued growth of its oil and gas sector.

“The regulations are designed to benefit everyone - promoting the health of our residents while helping the oil and gas industry capture as much product as possible and advance their own goals. I believe this sets the tone for how business should be conducted here in the state.” – said Michelle Miano, Environmental Protection Division Director at the New Mexico Environment Department, in a recent podcast episode of Methane Talks.

At the forefront of these initiatives is the New Mexico Oil & Gas Association (NMOGA), dedicated to promoting the safe and environmentally responsible development of oil and natural gas resources in New Mexico. To learn more about NMOGA’s role in shaping policy and fostering collaboration between the oil and gas sector, we spoke with Andrea Felix, Senior Regulatory Policy Advisor for the New Mexico Oil & Gas Association.

Read as we explore NMOGA’s efforts in balancing industry growth with environmental goals, the impact of New Mexico’s stringent methane policies, and how increased collaboration is driving the state’s energy future.

LISTEN: Episode 8: From Policy to Practice: New Mexico's Role in the Energy Transition

Maryam Irfan, Industrial Decarbonization Network: To start, can you tell us a little bit about your role at NMOGA and in brief, NMOGAs role within the oil and gas sector in New Mexico?

Andrea Felix: My role as the Senior Regulatory Policy Advisor involves leading the organization’s efforts in developing policy on federal and state regulatory matters. I aid in creating rule-making strategies and executing regulatory advocacy for our members here in New Mexico.

Our organization, often referred to as NMOGA (New Mexico Oil and Gas Association), is a coalition of oil and gas companies, individuals, and stakeholders. We represent over 180 member companies, including large and small oil and gas companies, vendor companies that serve the industry, and environmental consulting firms that assist our members. NMOGA and its members are dedicated to promoting the safe and environmentally responsible development of oil and natural gas resources in New Mexico. We advocate for responsible policies, support industry operations, and highlight the contributions of the industry to the state.

We provide a platform for members to collaborate and engage with policymakers, and together, we aim to achieve a clean and sustainable environment while supporting the responsible development of oil and natural gas. It’s a broad and dynamic network of individuals and organizations all working towards shared goals.

Maryam Irfan, Industrial Decarbonization Network: How does NMOGA impact policymaking in New Mexico? How do you ensure alignment with both industry needs and environmental goals?

Andrea Felix: Our team works very hard with our members, agency leaders, and other stakeholders in New Mexico. We actively listen and collaborate to ensure the development of transparent policies that provide clear guidance for operators, give stakeholders and communities a clear understanding of what to expect, and make it easier for agencies and policymakers to implement rules and regulations effectively.

At NMOGA, we offer a platform for this collaboration, bringing together our members, agency leaders, community members, stakeholders, and even workers from all parts of the industry. Whether they’re at gas stations or in environmental consulting, everyone is welcome to have a seat at the table as we engage in these critical conversations.

It’s a balancing act to ensure alignment between industry perspectives and environmental goals. But at the end of the day, as we all live and work in New Mexico, our industry and members are committed to doing the right thing, and that commitment drives everything we do.

Ultimately, our guiding principle is to ensure that everyone goes home safe at the end of the day, and that our children and grandchildren inherit a clean and thriving New Mexico for generations to come.

Maryam Irfan, Industrial Decarbonization Network: How does New Mexico's methane policy compare to those in other major oil and gas-producing states, and how do measures such as the ozone precursor rule impact operators compared to other U.S. states?

Andrea Felix: Hands down, New Mexico’s leaders should be very proud. The state’s rules and regulations are among the most stringent in the nation, particularly when it comes to compliance measures and innovation. In many ways, New Mexico sets the standard for other states to follow.

Of course, this level of compliance can be more challenging for our members and often comes with higher costs. There is a price for doing business in New Mexico. However, while it may be harder and more expensive to operate, our members take great pride in being part of the climate solution and contributing to energy innovation.

READ: Methane News: Perspective on COP29 and Takeaways from OIES Gas Research Programme

Maryam Irfan, Industrial Decarbonization Network: New Mexico’s methane waste rules require all operators to capture 98 percent of their produced natural gas by December 2026. How does NMOGA collaborate with its member companies to ensure compliance and what are the implementation challenges you help address?

Andrea Felix: I’ve actually got some great news to share!

I’ll start at the beginning… When the rules were first introduced and went out for public comment, it was clear that collaboration would play a key role. As I’ve said before, our members take great pride in doing the right thing, and NMOGA fosters an environment for collaboration among our members, agency leaders, and communities.

As new rules are developed through the stakeholder consultation process, NMOGA forms committees and working groups to carefully review draft rules from technological, operational, and environmental perspectives. Together, they work to provide meaningful and sustainable feedback to agency leaders to open a dialogue for discussion as we know that communication truly goes a long way.

A tremendous amount of effort has gone into this process—not only from the industry but also from the state and stakeholders to ensure effective implementation of these rules. While the compliance deadline for these new rules isn’t until 2026, the Energy, Minerals, and Natural Resources Department (EMNRD) recently presented to the Water and Natural Resources Committee in New Mexico and acknowledged the incredible progress made by the industry. I’m quoting here, but they stated, “The bottom line is, industry is thriving.” Operators reported in January and July of 2024 that, for active production, they have already achieved 98% gas capture—well ahead of the 2026 requirement.

This is a win not just for the industry but for all the people of New Mexico.

Maryam Irfan, Industrial Decarbonization Network: That is brilliant! What role did technology play in these efforts? Do you work or support members on technology adoption? 

Andrea Felix: When it comes to technology and advancements, it’s important to recognize that there is no one-size-fits-all solution. In New Mexico, our oil and gas basins—the Permian Basin and the San Juan Basin—each have unique characteristics. For example, one basin is predominantly gas-producing, while the other is more focused on oil. Similarly, the topography differs; one is relatively flat, while the other features hills, terrain, and waterways.

Because of these intricacies, technology must be adapted to suit each basin’s specific needs. However, as technologies continue to advance, we work to bridge the gap by ensuring our members are aware of new and emerging ones as this helps them stay current and make informed decisions to further reduce emissions.

It’s exciting to see how far the industry has come and where it can go in the future.

Maryam Irfan, Industrial Decarbonization Network: You must meet with your member companies regularly and work with them on their methane mitigation efforts. What is the consensus and feedback on achieving the targets set and on policies set by New Mexico?

Andrea Felix: We meet regularly as part of our framework, which involves establishing committees and workgroups. Specifically, we have a New Mexico Environment Committee that meets routinely to discuss issues, roles, progress, updates, etc.

When new policies are rolled out or new technologies are introduces, we present them to our members and hold discussions. If there is a need to dig deeper, we create specific workgroups that focus on those areas, and our members are always eager to engage in these efforts.

The consensus on achieving our targets revolves around ensuring everyone understands the requirements within the regulations. If there are any questions or confusion from members, we go back to the relevant department, schedule a meeting, and work through the issues to make sure expectations and requirements are clear.

The recent announcement by EMNRD, confirming that we’ve reached the 90% target, proves that the collaboration and regular meetings with our members are effective.

Maryam Irfan, Industrial Decarbonization Network: What were the key takeaways from the 2024 NMOGA annual meeting, and how do you foresee those conversations driving the association’s efforts?

Andrea Felix: The annual meeting was a huge success, and the big takeaway for us is that responsible and sustainable energy development in New Mexico continues to grow. The enthusiasm for continued collaboration and forward-thinking solutions was incredibly encouraging for our team.

The ongoing need to expand New Mexico’s electric utility grid and establish standards for water reuse will continue to be a top priority as we move into 2025, helping our members reduce emissions and further drive sustainability efforts.

READ: Seneca Resources’ Strategy for Regulatory and Voluntary Compliance

Learn more about regulatory compliance and the power of industry collaboration at our upcoming events:

Methane Mitigation Europe Summit
February 24-27, 2025 | Amsterdam

Methane Mitigation Technology & Innovation Summit
June 2-4, 2025 | Austin, TX