State officials say recycling fracking wastewater could help prevent quakes

Sep. 18—If the New Mexico oil and gas industry recycled 95% of the wastewater it produces, there would still be 1.9 billion barrels left over.

What to do with that water — the salty byproduct of oil and gas production that can include flowback from hydraulic fracturing — is a question the New Mexico state government is hoping to answer with a plan to treat and use the wastewater.

"That 1.9 billion barrels of produced water, we can't let it affect adversely our aquifers, and we do have to manage it properly as a state," Environment Secretary James Kenney said at a Wednesday meeting of the Legislative Finance Committee's water subcommittee.

A draft feasibility study on a potential new water supply for use in manufacturing and other industries, which analyzes plans to tackle both fracking wastewater and naturally occurring brackish water, is now subject to public comment and feedback. The report is available at online at env.nm.gov/strategic-water-supply.

"Research is ongoing" to determine if components of fracking wastewater are harmful to the health of humans or the environment, the report said. Either way, any components left behind after treating it have to eventually be disposed of, including brine. Desalination can also be costly, the report said.

Gov. Michelle Lujan Grisham announced her plan to create what she called a future "strategic water supply" for industrial uses during a December trip to Dubai for COP28, the United Nations' Climate Change Conference. She called for the Legislature to allocate $500 million for the state to buy treated brackish water and fracking wastewater to increase the state's water supply — and conserve freshwater — amid ongoing drought.

While the governor cited dwindling water supplies as the reason to push forward with the plan, state officials and industry leaders are now pointing to the potential for earthquakes from injecting too much of the fracking wastewater back into the ground. They say the water reuse plan could prevent increases in seismic activity.

Legislation to move forward with the strategic water plan failed in the 2024 legislative session; Kenney said a revised piece of legislation will be drafted ahead of next year's session.

Currently, fracking wastewater in New Mexico typically heads to one of three places: back to oil and gas production, to an underground injection disposal well in the state or to Texas. According to the draft feasibility study, about 20% of the wastewater is reused, but 80% is injected for disposal.

But underground injection disposal sites aren't foolproof. An Energy, Minerals and Natural Resources Department memo dated July 11 stated 75 permit applications for additional disposal capacity were canceled due to the potential for increased seismicity.

Ben Shelton, deputy director and general counsel of the Energy, Minerals and Natural Resources Department, pointed to earthquakes in Carlsbad and other areas during an oil and gas presentation at the Wednesday meeting of the Legislative Finance Committee.

"If you're worried about the health of the industry, the greatest threat is not regulation, it's seismicity," Shelton said.

Rebecca Roose, state infrastructure adviser, said one of the main policy drivers for the strategic water supply is water conservation. But she also cited concerns over induced seismicity.

Missi Currier, the New Mexico Oil and Gas Association's president and CEO, weighed in as well. "Moving forward with expanded water reuse and recycling is critical to reducing seismic risk by limiting the injection of produced water," she said in a statement.

The draft feasibility study lists several potential uses for treated fracking wastewater or brackish water, requiring different amounts and qualities of water, such as cooling data centers and manufacturing semiconductors, electric vehicles and solar panels.

Kenney and other panelists said the plan would help meet energy transition goals and preserve freshwater for its "highest purpose."

"As we move to less carbon-intensive energy in the power sector, we're going to embrace things that are inherently going to use water," Kenney said. "Do we want to continue to use freshwater as [the Energy Transition Act] accelerates?"

But the plan hasn't been popular with some environmental groups. In a comment submitted earlier this year, the Western Environmental Law Center and other groups wrote the water plan would further provide an incentive for fracking by creating customers for its byproducts.

Net costs for water treatment projects could range from $13 million to $667 million, depending on the capacity and location. The quality of fracking wastewater in the San Juan region is typically better than that in the Permian Basin, requiring less costly treatment, the report said.

"The gas and oil created this toxic water," said Rep. Debra Sariñana, D-Albuquerque. "Are we asking them to pay to clean it up at all?"

Kenney said on the federal level, a study was announced for setting limits for discharges of treated fracking wastewater and regulating discharge standards.

The state's draft feasibility report suggested purchase commitments to create incentives for construction of treatment facilities, as well as possible short- and long-term subsidies.

Kenney said the original plan was to fund the program through a severance tax paid by oil and gas producers.

"The original proposal was the use of the severance tax that they're paying on their own severing of that mineral," Kenney said. "Therefore, the produced water treatment would have been paid for by that approach."