Less oil and drilling-related materials were spilled in New Mexico last year compared to 2022, according to a recent report that credited tougher state regulations for mitigating the industry’s environmental impacts.

At the same time, fossil fuel production continued to grow in New Mexico and its Permian Basin centered in the state’s southeast corner.

About 89% of the spills were reported in Eddy and Lea counties, the only two New Mexico counties within the Permian Basin, read the report. Records show 602 spills in Eddy and 721 in Lea.

Last year, the Center for Western Priorities reported the volume of New Mexico oil and produced water spills dropped by 23%, while the number of spills increased slightly by 1%.

In 2023 there were 1,479 spills of oil and water reported with a volume of about 4.5 million gallons, compared with 5.8 million gallons spilled in 1,455 incidents in 2022, the report read.

Before 2023, oil and produced water spills increased steadily in New Mexico from about 4.8

million gallons in 2021 and 2020, read the report. There were 1,368 reported incidents in 2021 and 1,217 in 2020, records show.

New Mexico led Colorado and Wyoming, the other two states included in the study as the Mountain West region’s leaders in fossil fuel production, in 2023, 2021 and 2020.

The State of New Mexico enacted regulations in recent years to require more reporting of spills of oil, produced water and released natural gas. The State also banned routine flaring, the burning of excess gas, and a regulation labeling spills as an immediate violation of state environmental law ahead of reporting requirements.

The New Mexico Environment enacted rules in 2022 finalized rules to increase reporting requirements for oil and gas operators in New Mexico on natural gas releases, leaks and equipment failures, calling for the expanded use of new monitoring and gas capture technologies.

In 2021, the State’s Energy, Minerals and Natural Resources Department required operators to capture 98 percent of produced gas by 2026, while banning the routine use of flaring outside of emergencies.