The draft order mandates a buffer zone between oil and gas production and the potash reserves of mining companies east of the city.
Oil and gas developers and the companies going after potash _ the key ingredient in fertilizers _ have been locked in a series of legal disputes over development of the resources for years. The concern has centered on contamination of the resources and mining safety.
"I believe the new order will end 75 years of conflict in New Mexico between the two industries. The conflict and litigation has drained millions of dollars in litigation fees," Salazar said in a telephone conference call.
He said before he signs the final order, the draft will be published in the federal register, followed by a 30-day public comment period. If there are no serious objections, he hopes to sign the final order sometime in September.
"It's important that we end years of costly litigation and disagreement. Together we can start a new chapter of collaboration when it comes to oil, gas and potash development in New Mexico," Salazar said. "What we're proposing is common sense framework that emphasizes the co-development of potash and oil and gas in the region, and strengthens the economy by continuing to support our
nation's energy and agriculture needs."Asked by the Current-Argus how large the buffer zone will be, Salazar explained his order covers the current 400,000 acres managed by the Bureau of Land Management, which is rich in oil, gas and potash.
"The draft includes buffer zones between oil and gas wells and potash mining operations. There will be drilling islands. We will have a developmental program where oil and gas producers will be able to drill in identified island areas without impact to the potash reserves," Salazar said. "The order itself was made possible because of the new technologies in the oil and gas industry, such as horizontal drilling."
He said his order was also made possible through the collaborative work of leaders in both the potash and oil and gas industries. He said New Mexico Sens. Jeff. Bingaman and Tom Udall - both democrats - and Acting Bureau of Management Director Mike Pool, played a role in finding a solution that benefits the industries and the economy.
Salazar added that 75 percent of the nation's potash is mined within the 400,000 acres, which is also the home to nearly 800 federal oil and gas leases. He said oil and gas production in the Permian Basin is one of the greatest production areas of oil and gas in the nation.
Bingaman praised Salazar and the initiative he has taken to resolve the problems.
"This resolution is a good step forward for southeastern New Mexico. I'm glad the parties were able to come together on a draft order that would bolster our state's potash industry and our oil and gas industry," said Bingaman, who serves as chairman of the Senate Energy and Natural Resources Committee. "This conflict between the oil, gas and potash industries in this part of our state has existed for many decades. I give credit to Secretary Salazar in trying to resolve the issue and finding a way to resolve the disputes."
Udall added: "Our state does it all when it comes to energy production, and the responsible co-development of these natural resources is key to both job creation in our southeast region and the energy security of our nation."
Salazar said he came to Carlsbad in January to meet with the Potash/Oil and Gas Industry Technical Committee to support the ongoing discussion between the industries. He said the committee has been working collaboratively to improve the relationship between the industries.
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