NEW MEXICO

Governor seeks to offset Biden’s oil policies

New Mexico could lose nearly three-quarters of $1 billion over the next few years if it sees even a modest reduction of oil and gas production due to the federal government’s actions to curb leasing on public lands, Gov. Michelle Lujan Grisham warned in a letter sent March 15 to President Joe Biden.

The first-term Democratic governor said financial losses of that magnitude would have real effects on her administration’s ability to achieve goals like universal access to early childhood education. She has been pushing to expand social programs in an effort to turn the tide in a state that has been plagued for decades by high poverty rates and low educational outcomes.

Oil and gas revenues have been key to bankrolling many initiatives in the state as it struggles to diversify its economy. She acknowledged in the letter that New Mexico ranks third in the U.S. for onshore production and about one-third of the state’s general fund revenue is generated by the industry.

With more than half of all oil and gas wells in New Mexico on federal land, Lujan Grisham noted that any changes to leasing and permitting by federal managers would disproportionally affect the state and push producers to Texas and other states where there are more opportunities on private land.

The governor asked Biden to grant New Mexico energy transition credit for actions the state already is taking to address pollution by the industry along with its landmark energy law that mandates carbon-free electricity generation by investor-owned utilities by 2045. She also pointed to her executive orders on climate change that call for statewide greenhouse gas reduction targets.

Oil and gas operators and business groups have concerns about Biden’s moratorium on new leases and drilling permits, saying stifling economic development – particularly in rural areas like southeastern New Mexico, which is home to one of the world’s most prolific oil patches – will have ripple effects beyond the industry.

State to waive liquor fees as part of COVID relief

SANTA FE – New Mexico Gov. Michelle Lujan Grisham on March 9 signed legislation that will allow the state to waive annual liquor license fees as businesses struggle to rebound amid the pandemic.

The governor said the food and beverage industry is a key piece of the state’s economy.

“These businesses anchor so many of our communities – and as we continue to move ever closer to ending the worst of this pandemic, I am confident this state support will help as they bounce back as quickly as possible,” she said in a statement.

Under the legislation, the next annual fee for renewed liquor licenses and for all new licenses issued in this year will be waived. With license fees topping as much as several thousand dollars annually, state officials estimate the waivers will save businesses in New Mexico roughly $3.5 million.

The governor also has signed other relief measures passed by the Legislature this session, including a bill that makes available $200 million in grants to small businesses, another providing $500 million in low-cost loans and a four-month gross receipts tax holiday for food and drink establishments.

NAVAJO NATION

Officials allow ‘soft reopening’ of some businesses

WINDOW ROCK, Ariz. – Navajo Nation officials cited a declining number of new COVID-19 cases and other improving conditions as they announced a new public health order that will allow some businesses to reopen under certain restrictions, including tribal casinos and churches.

The daily curfew for residents on the reservation that stretches into Arizona, New Mexico and Utah will remain under a separate health order. However, residents no longer will be required – but will be encouraged – to stay home.

Both orders took effect March 15.

Officials cited testing availability, hospital capacity and contact tracing in addition to the decrease in new cases as factors in the transition to a status that will allow some businesses to reopen at 25% capacity.

Businesses that want to reopen will be required to submit a plan to the Navajo Nation Division of Economic Development. Marinas and parks can reopen by appointment only.

The tribe’s three casinos in northwestern New Mexico and one east of Flagstaff can reopen, but only to tribal members and employees. The Navajo Nation Gaming Enterprise has spent more than $1.6 million on equipment, supplies and training to prepare for reopening the facilities that have been closed since last March, interim chief executive Brian Parrish said.

Museums, flea markets, roadside stands, gyms and movie theaters still are closed.

MONTANA

Policy that weakened wild bird protections is revoked

BILLINGS – The Biden administration on March 8 reversed a policy imposed under former President Donald Trump that drastically weakened the government’s power to enforce a century-old law that protects most U.S. bird species.

Trump ended criminal prosecutions against companies responsible for bird deaths that could have been prevented.

The move halted enforcement practices under the Migratory Bird Treaty Act in place for decades – resulting most notably in a $100 million settlement by energy company BP after the 2010 Gulf of Mexico oil spill killed an estimated 100,000 birds, according to federal data.

A federal judge in New York in August struck down the Trump administration’s legal rationale for changing how the bird treaty was enforced.

But the administration did not abandon its policy, rejecting concerns that many more birds would die and remaining adamant that the law had been wielded inappropriately to penalize accidental bird deaths.

Interior spokesman Tyler Cherry said that the agency plans to come up with new standards “that can protect migratory birds and provide certainty to industry.”

U.S. Fish and Wildlife Service officials have said relatively few of the cases end in criminal prosecutions because most companies are willing to take measures to address hazards that their operations may pose to birds.

WYOMING

Election changes move ahead after push by Trump Jr.

CHEYENNE – Wyoming lawmakers will continue to discuss proposed election changes endorsed by Donald Trump Jr. for their potential to undermine U.S. Rep. Liz Cheney, but not for next year as originally planned.

A legislative committee voted March 11 to delay the proposal for what would be Wyoming’s first primary runoffs from as soon as 2022 to no sooner than 2024. Local election officials told lawmakers they wouldn’t have enough time to make both the election changes and required adjustments to legislative district boundaries next year.

Local officials also said they worried about cost. The committee wrote the potential $1.5 million cost into the bill before voting 4-1 to advance it to the full Senate.

In the Senate, the cost could be a turnoff to lawmakers confronted with declining revenue from Wyoming’s coal, oil and gas industries, which have led to steep state and local cuts.

Two state legislators — Sen. Anthony Bouchard, of Cheyenne, and Rep. Chuck Gray, of Casper – already have announced they are running against Cheney, Wyoming’s lone congresswoman and a fellow Republican, for voting to impeach President Donald Trump for the U.S. Capitol riot.

Trump Jr. in January urged Wyoming voters to unite behind a Cheney opponent next year when he called in at an anti-Cheney rally led by Florida Rep. Matt Gaetz at the Wyoming Capitol.

Cheney wasn’t mentioned in the discussion of the bill, which supporters – Trump Jr. excepted – haven’t described as a political weapon against her. The state GOP central committee censured Cheney in February for her impeachment vote. But for the most part Wyoming’s Republican elected officials have continued to support her.