Environmental attorneys Dal Moellenberg and Sam Catalano, with assistance from T.J. Trujillo, recently prevailed in a rulemaking hearing before the New Mexico Environmental Improvement Board (EIB) opposing substantial fee increases proposed by the New Mexico Environment Department (NMED).
Dal and Sam represented the New Mexico Mining Association (NMMA), an 85-year-old trade association that serves as chief spokesman for New Mexico’s mining industry, before the EIB. The firm’s long-time client, Freeport-McMoRan, faced an increase in air quality permit and annual fees that would have approximately tripled the already high fees imposed to nearly $1 million, when the State’s annual costs attributable to Freeport’s mining operations would have been at most around $20,000.
Dal and Sam conducted investigations and presented witnesses from the Mining Association and Freeport who showed that, despite claims from the Department that it urgently needed a fee increase, there is a balance of approximately $25 million in unspent fees collected over the past few years.
The testimony also convinced the EIB that the Department’s explanation of its need for additional fee revenue failed to explain how the proposed fee increases were reasonable. The EIB also criticized the Department’s failure to vet the proposed fee increases with the mining industry. On October 24, 2024, the EIB unanimously voted 6-0 to deny the fee increases.
In a statement from the President and CEO of the New Mexico Oil & Gas Association (NMOGA), Missi Currier said, “The EIB recognized that NMED does need to increase fees but needs to justify the amount appropriately and also needs to consult with the regulated community.”
The Department is preparing its statement of reasons to be posted within 30 days.
Dalva Moellenberg manages Gallagher & Kennedy’s Santa Fe office, practicing primarily with regulated industries in the areas of environmental and natural resources law and administrative law and litigation. For over 30 years, Dal has represented businesses in environmental, natural resources, and other sophisticated regulatory matters, working with legislative and regulatory bodies at the federal level, in both Arizona and New Mexico, and in the local markets of his clients.
Samantha Catalano focuses her practice primarily in the regulatory areas of civil litigation, environmental and natural resources, and oil and gas law. She has successfully handled motions and trial preparation, and has appeared before regulatory bodies such as the Oil Conservation Division (“OCD”) to present Applications for Compulsory Pooling and other permits.
Anthony “T.J.” Trujillo's practice includes governmental affairs, administrative law, and environmental and natural resources litigation related to mining, oil and gas, agriculture, water rights, water quality, energy, employment law, and civil rights. T.J. serves as a lobbyist for clients on state and local issues, including activities dealing with drafting legislation, testifying before legislative committees, and developing advocacy strategies for clients on legislative and regulatory matters.
READ THE RECENT COVERAGE:
New Mexico air quality permit fees to remain same; board rejects hike request | Santa Fe New Mexican