Latest news with #SanJuanBasin
Globe and Mail
18-07-2025
- Business
- Globe and Mail
Mesa Royalty Trust Announces Trust Income for July 2025
Mesa Royalty Trust (the 'Trust') (NYSE: MTR) announced today the Trust income distribution for the month of July 2025. Unitholders of record on July 31, 2025 will receive distributions amounting to $0.027480528 per unit, payable on October 31, 2025. The Trust received $80,962, all of which came from the New Mexico portion of the Trust's San Juan Basin properties operated by Hilcorp San Juan LP, an affiliate of Hilcorp Energy Company. No income was received in July 2025 from any other working interest owner. This month, after the Trust's payment of administrative expenses, income from the distributable net profits was $51,212. The Trust was formed to own an overriding royalty interest of the net proceeds attributable to certain producing oil and gas properties located in the Hugoton field of Kansas and the San Juan Basin fields of New Mexico and Colorado. As described in the Trust's public filings, the amount of the monthly distributions is expected to fluctuate from month to month, depending on the proceeds, if any, received by the Trust as a result of production, oil and natural gas prices and the amount of the Trust's administrative expenses, among other factors. In addition, as further described in the Trust's most recent filing on Form 10-Q, distributions to unitholders are expected to be materially reduced, until the Trust increases its cash reserves to a total of $2.0 million in order to provide added liquidity. Proceeds reported by the working interest owners for any month are not generally representative of net proceeds that will be received by the Trust in future periods. As further described in the Trust's Form 10-K and Form 10-Q filings, production and development costs for the royalty interest have resulted in substantial accumulated excess production costs, which will decrease Trust distributions, and in some periods may result in no Trust distributions. The amount of proceeds, if any, received or expected to be received by the Trust (and its ability to pay distributions to unitholders) has been and will continue to be directly affected, among other things, by volatility in the industry and revenues and expenses reported to the Trust by working interest owners. Any additional expenses and adjustments, among other things, will reduce proceeds to the Trust, which will reduce the amount of cash available for distribution to unitholders and in certain periods could result in no distributions to unitholders. This press release contains forward-looking statements. No assurances can be given that the expectations contained in this press release will prove to be correct. The working interest owners alone control historical operating data, and handle receipt and payment of funds relating to the royalty properties and payments to the Trust for the related royalty. The Trustee cannot assure that errors or adjustments or expenses accrued by the working interest owners, whether historical or future, will not affect future royalty income and distributions by the Trust. Other important factors that could cause these statements to differ materially include delays in actual results of drilling operations, risks inherent in drilling and production of oil and gas properties, declines in commodity pricing, prices received by working interest owners and other risks described in the Trust's Form 10-K for the year ended December 31, 2024. Statements made in this press release are qualified by the cautionary statements made in such risk factors. The Trust does not intend, and assumes no obligations, to update any of the statements included in this press release. Each unitholder should consult its own tax advisor with respect to its particular circumstances.
Yahoo
27-06-2025
- Business
- Yahoo
San Juan Basin Royalty Trust (SJT) Declined This Week. Here is Why.
The share price of San Juan Basin Royalty Trust (NYSE:SJT) fell by 14.13% between June 18 and June 25, 2025, putting it among the Energy Stocks that Lost the Most This Week. An oil rig worker in overalls, examining a drill bit at the San Juan Basin. San Juan Basin Royalty Trust (NYSE:SJT) operates as an express trust that holds a 75% net overriding royalty interest in oil and natural gas properties in the San Juan Basin of northwestern New Mexico, distributing monthly royalty income to unit holders. The share price of San Juan Basin Royalty Trust (NYSE:SJT) declined after the company announced that it would not declare a monthly cash distribution to unitholders for June 2025, due to the application of net proceeds of $294,238 on excess production costs of approximately $14.77 million. The excess production costs accrued as a result of Hilcorp drilling two new horizontal wells in 2024. San Juan Basin Royalty Trust (NYSE:SJT) revealed that it will not receive royalty income until the excess costs are paid in full. The Trust clarified to its investors that no cash distributions will be made until future net proceeds are sufficient to pay its liabilities and replenish cash reserves. While we acknowledge the potential of SJT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and 12 Best Natural Gas Stocks to Buy According to Analysts Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Independent
29-05-2025
- Business
- The Independent
Schoolchildren struggling with headaches and vomiting from gas plant pollution
In Counselor, New Mexico, a routine drive home for Billton Werito and his son Amari is a stark reminder of the challenges faced by families living near natural gas operations. On a Tuesday in March, as Werito navigated the dirt road leading to their house, Amari was absent from school due to nausea and a headache. "It happens a lot," Amari explained, highlighting a recurring issue linked to the smell of "rotten egg with propane" emanating from nearby natural gas wells. This odour frequently affects Lybrook Elementary School, where Amari and around 70 other Navajo students attend classes. His younger brother also experiences similar symptoms, often leading to missed school days. Billton Werito expressed his concern, stating, "They just keep getting sick. I have to take them out of class because of the headaches. Especially the younger one, he's been throwing up and won't eat." These health issues are not only disrupting the children 's education but also raising concerns about their overall well-being and academic progress. Lybrook sits in the heart of New Mexico's San Juan Basin, a major oil and gas deposit that, along with the Permian Basin in the state's southeast, is supplying natural gas that meets much of the nation's electricity demand. The gas pulled from tens of thousands of wells in New Mexico has reaped huge benefits for the entire country. Natural gas has become a go-to fuel for power plants from coast to coast, sometimes replacing dirtier coal-fired plants and, by extension, improving air quality. Locally, oil and gas companies employ thousands of workers, often in areas with few other opportunities, all while boosting the state's budget with billions in royalty payments. But those benefits may come at a cost for thousands of students in New Mexico whose schools sit near oil and gas pipelines, wellheads and flare stacks. An analysis of state and federal data found 694 oil and gas wells with new or active permits within a mile of a school in the state. This means that around 29,500 students in 74 schools and pre-schools potentially face exposure to noxious emissions, as extraction from the ground can release unhealthy fumes. A measurable effect on students At Lybrook, where Amari just finished sixth grade, fewer than 6 per cent of students are proficient at math, and only a fifth meet state standards for science and reading proficiency. Other factors could help explain students' poor achievement. Poverty rates are higher in some areas with high levels of gas development, and students at rural schools overall tend to face challenges that can adversely affect academic performance. AP's analysis found that two-thirds of the schools within a mile of an oil or gas well were low-income, and the population is around 24 per cent Native American and 45 per cent Hispanic. But research has found that student learning is directly harmed by air pollution from fossil fuels — even when socioeconomic factors are taken into account. And it's not just New Mexico where this is a risk. An AP analysis of data from the Global Oil and Gas Extraction Tracker found over 1,000 public schools across 13 states that are within five miles of a major oil or gas field. Major fields are collections of wells that produce the highest amount of energy in a state. 'This kind of air pollution has a real, measurable effect on students,' said Mike Gilraine, a professor of economics at Simon Fraser University in Vancouver, Canada, who studies connections between air quality and student performance. In 2024, Gilraine co-wrote a study showing that student test scores were closely associated with air contamination. Each measured increase in PM2.5, a type of pollution created from the burning of fossil fuels, was associated with a significant decline in student test scores, Gilraine found. Conversely, researchers have documented that reductions in air pollution have led to higher test scores and fewer absences. 'To me the surprise was certainly the magnitude of the effects' of air pollution on students, Gilraine said. 'It's hard to find a similar factor that would have such an impact on schools nationwide.' America's shift to natural gas has resulted in substantial increases in student achievement nationwide, Gilraine's research shows, as it has displaced dirtier coal and led to cleaner air on the whole. But there has been little data on air quality across New Mexico, even as it has become one of the most productive states in the nation for natural gas. State regulators have installed only 20 permanent air monitors, most in areas without oil or gas production. Independent researchers have extensively studied the air quality near schools in at least two locations in the state, however. One is Lybrook, which sits within a mile of 17 active oil and gas wells. In 2024, scientists affiliated with Princeton and Northern Arizona universities conducted an air-monitoring study at the school, finding that levels of pollutants — including benzene, a cancer-causing byproduct of natural gas production that is particularly harmful to children — were spiking during school hours, to nearly double the levels known to cause chronic or acute health effects. That research followed a 2021 health impact assessment that was done with support from several local nonprofits and foundations, which analyzed the effects of the area's oil and gas development on residents. The findings were startling: More than 90 per cent of people surveyed suffered from sinus problems. Nosebleeds, shortness of breath and nausea were widespread. The report attributed the symptoms to the high levels of pollutants that researchers found — including, near Lybrook, hydrogen sulfide, a compound that gives off the sulfur smell that Amari Werito associated with his headaches. Those studies helped confirm what many community members already knew, said Daniel Tso, a community leader who served on the committee that oversaw the 2021 health impact assessment. 'The children and the grandchildren need a safe homeland,' Tso said during an interview in March, standing outside a cluster of gas wells within a mile of Lybrook Elementary. 'You smell that?' he said, nodding towards a nearby wellhead, which smelled like propane. 'That's what the kids at the school are breathing in. I've had people visiting this area from New York. They spend five minutes here and say, 'Hey, I got a headache.' And the kids are what, six hours a day at the school breathing this?' Lybrook school officials did not respond to requests for comment. Despite risks, oil and gas can pump money into schools Researchers have identified similar air quality problems in New Mexico's southeast. In 2023, a team of scientists from a coalition of universities conducted a detailed, yearlong study of the air in Loving, a small town in the Permian Basin. Local air quality, researchers found, was worse than in downtown Los Angeles, and the tested air contained the fifth-highest level of measured ozone contamination in the U.S. The source of the ozone — a pollutant that's especially hazardous to children — was the area's network of gas wells and related infrastructure. Some of that infrastructure sits within a half-mile of a campus that houses Loving's elementary, middle and high schools. A small group of residents has spoken out about the area's air quality, saying it has caused respiratory problems and other health issues. But for most locals, any concerns about pollution are outweighed by the industry's economic benefits. Representatives of the oil and gas industry have claimed the air quality studies themselves are not trustworthy. 'There needs to be a robust study to actually answer these questions,' said Andrea Felix, vice president of regulatory affairs for the New Mexico Oil and Gas Association (NMOGA). Felix said other sources of emissions, such as cars and trucks, are likely a larger source of air quality problems near wells. 'Companies follow the best available science' for well placement and emissions controls, Felix said, and also contribute huge amounts of money to the state's education budget through streams like royalties and direct expenditures. In the most recent fiscal year, oil and gas revenue supported $1.7 billion in K-12 spending in New Mexico, according to a NMOGA report. Officials with Loving Municipal Schools are also skeptical of the alarm over the wells. Loving Superintendent Lee White said the school district used funds from the oil and gas industry to pay for a new wing at the elementary school, a science lab for students, turf on the sports field and training and professional development for teachers. He said the industry's contributions to state coffers can't be ignored. 'Are we willing to give that up because people say our air is not clean?' he said during an interview. 'It's just as clean as anywhere else.' As White spoke, a drill rig worked a couple of miles east of Loving's elementary school while parents poured into the gymnasium to watch kindergartners collect their diplomas. White touted the district's success, saying the elementary school scores above state averages for reading, math and science proficiency, while Loving's high school students far outpace the state average for college and career readiness. But environmental groups, attorneys and residents continue to push for limits on drilling near schools. Those efforts saw a boost in 2023, when New Mexico State Land Commissioner Stephanie Garcia Richard issued an executive order prohibiting new oil and gas leases on state-owned land within a mile of schools. Industry representatives decried the move, saying it added potentially insurmountable costs and barriers to drilling operators. However, AP's analysis found that relatively few wells would be impacted even if the rule applied to all of New Mexico; only around 1 per cent of oil and gas wells in the state are within a mile of a school. In the years since, residents of areas where exploration is heavy have lobbied for legislation prohibiting gas operations within a mile of schools, regardless of land status. That bill died in committee during the most recent session of the New Mexico legislature. Advocates have also sued the state over an alleged lack of pollution controls. That suit is currently pending in state court.
The Independent
29-05-2025
- Business
- The Independent
Oil and gas have boomed in New Mexico. Its schools are contending with pollution's effects
On a Tuesday in March, Billton Werito drove his son Amari toward his house in Counselor, New Mexico, navigating the bumpy dirt road that winds through a maze of natural gas pipelines, wellheads and water tanks. Amari should have been in school, but a bout of nausea and a dull headache kept him from class. 'It happens a lot,' Amari explained from the backseat, glancing up from his Nintendo Switch. The symptoms usually show up when the sixth-grader smells an odor of 'rotten egg with propane' that rises from nearby natural gas wells and wafts over Lybrook Elementary School, where he and some 70 other Navajo students attend class. His little brother often misses school for the same reason. 'They just keep getting sick,' Amari's father, Billton, said. 'I have to take them out of class because of the headaches. Especially the younger one, he's been throwing up and won't eat.' The symptoms are putting the kids at risk of falling further behind in school. Lybrook sits in the heart of New Mexico's San Juan Basin, a major oil and gas deposit that, along with the Permian Basin in the state's southeast, is supplying natural gas that meets much of the nation's electricity demand. The gas pulled from tens of thousands of wells in New Mexico has reaped huge benefits for the entire country. Natural gas has become a go-to fuel for power plants from coast to coast, sometimes replacing dirtier coal-fired plants and, by extension, improving air quality. Locally, oil and gas companies employ thousands of workers, often in areas with few other opportunities, all while boosting the state's budget with billions in royalty payments. But those benefits may come at a cost for thousands of students in New Mexico whose schools sit near oil and gas pipelines, wellheads and flare stacks. An Associated Press analysis of state and federal data found 694 oil and gas wells with new or active permits within a mile of a school in the state. This means that around 29,500 students in 74 schools and pre-schools potentially face exposure to noxious emissions, as extraction from the ground can release unhealthy fumes. A measurable effect on students At Lybrook, where Amari just finished sixth grade, fewer than 6% of students are proficient at math, and only a fifth meet state standards for science and reading proficiency. Other factors could help explain students' poor achievement. Poverty rates are higher in some areas with high levels of gas development, and students at rural schools overall tend to face challenges that can adversely affect academic performance. AP's analysis found that two-thirds of the schools within a mile of an oil or gas well were low-income, and the population is around 24% Native American and 45% Hispanic. But research has found that student learning is directly harmed by air pollution from fossil fuels — even when socioeconomic factors are taken into account. And it's not just New Mexico where this is a risk. An AP analysis of data from the Global Oil and Gas Extraction Tracker found over 1,000 public schools across 13 states that are within five miles of a major oil or gas field. Major fields are collections of wells that produce the highest amount of energy in a state. 'This kind of air pollution has a real, measurable effect on students,' said Mike Gilraine, a professor of economics at Simon Fraser University in Vancouver, Canada, who studies connections between air quality and student performance. In 2024, Gilraine cowrote a study showing that student test scores were closely associated with air contamination. Each measured increase in PM2.5, a type of pollution created from the burning of fossil fuels, was associated with a significant decline in student test scores, Gilraine found. Conversely, researchers have documented that reductions in air pollution have led to higher test scores and fewer absences. 'To me the surprise was certainly the magnitude of the effects' of air pollution on students, Gilraine said. 'It's hard to find a similar factor that would have such an impact on schools nationwide.' America's shift to natural gas has resulted in substantial increases in student achievement nationwide, Gilraine's research shows, as it has displaced dirtier coal and led to cleaner air on the whole. But there has been little data on air quality across New Mexico, even as it has become one of the most productive states in the nation for natural gas. State regulators have installed only 20 permanent air monitors, most in areas without oil or gas production. Independent researchers have extensively studied the air quality near schools in at least two locations in the state, however. One is Lybrook, which sits within a mile of 17 active oil and gas wells. In 2024, scientists affiliated with Princeton and Northern Arizona universities conducted an air-monitoring study at the school, finding that levels of pollutants — including benzene, a cancer-causing byproduct of natural gas production that is particularly harmful to children — were spiking during school hours, to nearly double the levels known to cause chronic or acute health effects. That research followed a 2021 health impact assessment that was done with support from several local nonprofits and foundations, which analyzed the effects of the area's oil and gas development on residents. The findings were startling: More than 90% of people surveyed suffered from sinus problems. Nosebleeds, shortness of breath and nausea were widespread. The report attributed the symptoms to the high levels of pollutants that researchers found — including, near Lybrook, hydrogen sulfide, a compound that gives off the sulfur smell that Amari Werito associated with his headaches. Those studies helped confirm what many community members already knew, said Daniel Tso, a community leader who served on the committee that oversaw the 2021 health impact assessment. 'The children and the grandchildren need a safe homeland,' Tso said during an interview in March, standing outside a cluster of gas wells within a mile of Lybrook Elementary. 'You smell that?' he said, nodding towards a nearby wellhead, which smelled like propane. 'That's what the kids at the school are breathing in. I've had people visiting this area from New York. They spend five minutes here and say, 'Hey, I got a headache.' And the kids are what, six hours a day at the school breathing this?' Lybrook school officials did not respond to requests for comment. Despite risks, oil and gas can pump money into schools Researchers have identified similar air quality problems in New Mexico's southeast. In 2023, a team of scientists from a coalition of universities conducted a detailed, yearlong study of the air in Loving, a small town in the Permian Basin. Local air quality, researchers found, was worse than in downtown Los Angeles, and the tested air contained the fifth-highest level of measured ozone contamination in the U.S. The source of the ozone — a pollutant that's especially hazardous to children — was the area's network of gas wells and related infrastructure. Some of that infrastructure sits within a half-mile of a campus that houses Loving's elementary, middle and high schools. A small group of residents has spoken out about the area's air quality, saying it has caused respiratory problems and other health issues. But for most locals, any concerns about pollution are outweighed by the industry's economic benefits. Representatives of the oil and gas industry have claimed the air quality studies themselves are not trustworthy. 'There needs to be a robust study to actually answer these questions,' said Andrea Felix, vice president of regulatory affairs for the New Mexico Oil and Gas Association (NMOGA). Felix said other sources of emissions, such as cars and trucks, are likely a larger source of air quality problems near wells. 'Companies follow the best available science' for well placement and emissions controls, Felix said, and also contribute huge amounts of money to the state's education budget through streams like royalties and direct expenditures. In the most recent fiscal year, oil and gas revenue supported $1.7 billion in K-12 spending in New Mexico, according to a NMOGA report. Officials with Loving Municipal Schools are also skeptical of the alarm over the wells. Loving Superintendent Lee White said the school district used funds from the oil and gas industry to pay for a new wing at the elementary school, a science lab for students, turf on the sports field and training and professional development for teachers. He said the industry's contributions to state coffers can't be ignored. 'Are we willing to give that up because people say our air is not clean?' he said during an interview. 'It's just as clean as anywhere else.' As White spoke, a drill rig worked a couple of miles east of Loving's elementary school while parents poured into the gymnasium to watch kindergartners collect their diplomas. White touted the district's success, saying the elementary school scores above state averages for reading, math and science proficiency, while Loving's high school students far outpace the state average for college and career readiness. But environmental groups, attorneys and residents continue to push for limits on drilling near schools. Those efforts saw a boost in 2023, when New Mexico State Land Commissioner Stephanie Garcia Richard issued an executive order prohibiting new oil and gas leases on state-owned land within a mile of schools. Industry representatives decried the move, saying it added potentially insurmountable costs and barriers to drilling operators. However, AP's analysis found that relatively few wells would be impacted even if the rule applied to all of New Mexico; only around 1% of oil and gas wells in the state are within a mile of a school. In the years since, residents of areas where exploration is heavy have lobbied for legislation prohibiting gas operations within a mile of schools, regardless of land status. That bill died in committee during the most recent session of the New Mexico legislature. Advocates have also sued the state over an alleged lack of pollution controls. That suit is currently pending in state court. ____ AP journalist Sharon Lurye contributed to this report from New Orleans. ____ The Associated Press' education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
Associated Press
29-05-2025
- Business
- Associated Press
Oil and gas have boomed in New Mexico. Its schools are contending with pollution's effects
COUNSELOR, N.M. (AP) — On a Tuesday in March, Billton Werito drove his son Amari toward his house in Counselor, New Mexico, navigating the bumpy dirt road that winds through a maze of natural gas pipelines, wellheads and water tanks. Amari should have been in school, but a bout of nausea and a dull headache kept him from class. 'It happens a lot,' Amari explained from the backseat, glancing up from his Nintendo Switch. The symptoms usually show up when the sixth-grader smells an odor of 'rotten egg with propane' that rises from nearby natural gas wells and wafts over Lybrook Elementary School, where he and some 70 other Navajo students attend class. His little brother often misses school for the same reason. 'They just keep getting sick,' Amari's father, Billton, said. 'I have to take them out of class because of the headaches. Especially the younger one, he's been throwing up and won't eat.' The symptoms are putting the kids at risk of falling further behind in school. Lybrook sits in the heart of New Mexico's San Juan Basin, a major oil and gas deposit that, along with the Permian Basin in the state's southeast, is supplying natural gas that meets much of the nation's electricity demand. The gas pulled from tens of thousands of wells in New Mexico has reaped huge benefits for the entire country. Natural gas has become a go-to fuel for power plants from coast to coast, sometimes replacing dirtier coal-fired plants and, by extension, improving air quality. Locally, oil and gas companies employ thousands of workers, often in areas with few other opportunities, all while boosting the state's budget with billions in royalty payments. But those benefits may come at a cost for thousands of students in New Mexico whose schools sit near oil and gas pipelines, wellheads and flare stacks. An Associated Press analysis of state and federal data found 694 oil and gas wells with new or active permits within a mile of a school in the state. This means that around 29,500 students in 74 schools and pre-schools potentially face exposure to noxious emissions, as extraction from the ground can release unhealthy fumes. A measurable effect on students At Lybrook, where Amari just finished sixth grade, fewer than 6% of students are proficient at math, and only a fifth meet state standards for science and reading proficiency. Other factors could help explain students' poor achievement. Poverty rates are higher in some areas with high levels of gas development, and students at rural schools overall tend to face challenges that can adversely affect academic performance. AP's analysis found that two-thirds of the schools within a mile of an oil or gas well were low-income, and the population is around 24% Native American and 45% Hispanic. But research has found that student learning is directly harmed by air pollution from fossil fuels — even when socioeconomic factors are taken into account. And it's not just New Mexico where this is a risk. An AP analysis of data from the Global Oil and Gas Extraction Tracker found over 1,000 public schools across 13 states that are within five miles of a major oil or gas field. Major fields are collections of wells that produce the highest amount of energy in a state. 'This kind of air pollution has a real, measurable effect on students,' said Mike Gilraine, a professor of economics at Simon Fraser University in Vancouver, Canada, who studies connections between air quality and student performance. In 2024, Gilraine cowrote a study showing that student test scores were closely associated with air contamination. Each measured increase in PM2.5, a type of pollution created from the burning of fossil fuels, was associated with a significant decline in student test scores, Gilraine found. Conversely, researchers have documented that reductions in air pollution have led to higher test scores and fewer absences. 'To me the surprise was certainly the magnitude of the effects' of air pollution on students, Gilraine said. 'It's hard to find a similar factor that would have such an impact on schools nationwide.' America's shift to natural gas has resulted in substantial increases in student achievement nationwide, Gilraine's research shows, as it has displaced dirtier coal and led to cleaner air on the whole. But there has been little data on air quality across New Mexico, even as it has become one of the most productive states in the nation for natural gas. State regulators have installed only 20 permanent air monitors, most in areas without oil or gas production. Independent researchers have extensively studied the air quality near schools in at least two locations in the state, however. One is Lybrook, which sits within a mile of 17 active oil and gas wells. In 2024, scientists affiliated with Princeton and Northern Arizona universities conducted an air-monitoring study at the school, finding that levels of pollutants — including benzene, a cancer-causing byproduct of natural gas production that is particularly harmful to children — were spiking during school hours, to nearly double the levels known to cause chronic or acute health effects. That research followed a 2021 health impact assessment that was done with support from several local nonprofits and foundations, which analyzed the effects of the area's oil and gas development on residents. The findings were startling: More than 90% of people surveyed suffered from sinus problems. Nosebleeds, shortness of breath and nausea were widespread. The report attributed the symptoms to the high levels of pollutants that researchers found — including, near Lybrook, hydrogen sulfide, a compound that gives off the sulfur smell that Amari Werito associated with his headaches. Those studies helped confirm what many community members already knew, said Daniel Tso, a community leader who served on the committee that oversaw the 2021 health impact assessment. 'The children and the grandchildren need a safe homeland,' Tso said during an interview in March, standing outside a cluster of gas wells within a mile of Lybrook Elementary. 'You smell that?' he said, nodding towards a nearby wellhead, which smelled like propane. 'That's what the kids at the school are breathing in. I've had people visiting this area from New York. They spend five minutes here and say, 'Hey, I got a headache.' And the kids are what, six hours a day at the school breathing this?' Lybrook school officials did not respond to requests for comment. Despite risks, oil and gas can pump money into schools Researchers have identified similar air quality problems in New Mexico's southeast. In 2023, a team of scientists from a coalition of universities conducted a detailed, yearlong study of the air in Loving, a small town in the Permian Basin. Local air quality, researchers found, was worse than in downtown Los Angeles, and the tested air contained the fifth-highest level of measured ozone contamination in the U.S. The source of the ozone — a pollutant that's especially hazardous to children — was the area's network of gas wells and related infrastructure. Some of that infrastructure sits within a half-mile of a campus that houses Loving's elementary, middle and high schools. A small group of residents has spoken out about the area's air quality, saying it has caused respiratory problems and other health issues. But for most locals, any concerns about pollution are outweighed by the industry's economic benefits. Representatives of the oil and gas industry have claimed the air quality studies themselves are not trustworthy. 'There needs to be a robust study to actually answer these questions,' said Andrea Felix, vice president of regulatory affairs for the New Mexico Oil and Gas Association (NMOGA). Felix said other sources of emissions, such as cars and trucks, are likely a larger source of air quality problems near wells. 'Companies follow the best available science' for well placement and emissions controls, Felix said, and also contribute huge amounts of money to the state's education budget through streams like royalties and direct expenditures. In the most recent fiscal year, oil and gas revenue supported $1.7 billion in K-12 spending in New Mexico, according to a NMOGA report. Officials with Loving Municipal Schools are also skeptical of the alarm over the wells. Loving Superintendent Lee White said the school district used funds from the oil and gas industry to pay for a new wing at the elementary school, a science lab for students, turf on the sports field and training and professional development for teachers. He said the industry's contributions to state coffers can't be ignored. 'Are we willing to give that up because people say our air is not clean?' he said during an interview. 'It's just as clean as anywhere else.' As White spoke, a drill rig worked a couple of miles east of Loving's elementary school while parents poured into the gymnasium to watch kindergartners collect their diplomas. White touted the district's success, saying the elementary school scores above state averages for reading, math and science proficiency, while Loving's high school students far outpace the state average for college and career readiness. But environmental groups, attorneys and residents continue to push for limits on drilling near schools. Those efforts saw a boost in 2023, when New Mexico State Land Commissioner Stephanie Garcia Richard issued an executive order prohibiting new oil and gas leases on state-owned land within a mile of schools. Industry representatives decried the move, saying it added potentially insurmountable costs and barriers to drilling operators. However, AP's analysis found that relatively few wells would be impacted even if the rule applied to all of New Mexico; only around 1% of oil and gas wells in the state are within a mile of a school. In the years since, residents of areas where exploration is heavy have lobbied for legislation prohibiting gas operations within a mile of schools, regardless of land status. That bill died in committee during the most recent session of the New Mexico legislature. Advocates have also sued the state over an alleged lack of pollution controls. That suit is currently pending in state court. ____ AP journalist Sharon Lurye contributed to this report from New Orleans. ____ The Associated Press' education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
