Friday, February 27, 2009

Economy: Some Good News

A bit over a week ago, there were 1.5 items of good news for the New Mexico economy.
The full item of good news is that Louisiana Energy Services' National Enrichment Facility near Eunice received its first shipment of uranium, a 70-lb batch that will be used to equipment at the plant that will refine uranium hexaflouride for use as fuel in nuclear reactors. Plans are for full operations by year-end.
The half an item is that Gov. Bill Richardson unveiled six proposed modifications to regulations covering the pits (or tanks) next to well that hold the very salty water and chemicals used to lubricate wells during drilling. Industry people have said for months that the Pit Rule, which went into effect in June 2008, add about $250,000 to the cost of drilling a well in New Mexico with the result of driving new drilling to other states. The proposed modifications get only half an item of good news because the culture of the Richardson administration, starting with the governor, is against drilling. So we'll see.
The modifications are outlined in a news release in the announcements section on the website of the Oil Conservation Division,

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