New Mexico upholds rejection of Project Jupiter gas pipeline across state lands

(UI) — New Mexico Commissioner of Public Lands Stephanie Garcia Richard has denied Energy Transfer's request to reconsider the agency's March decision rejecting state land access for a portion of the proposed Green Chili Lateral natural gas pipeline, a project intended to serve the planned Project Jupiter data center in Doña Ana County.

In a July 14 letter to Energy Transfer, Garcia Richard reaffirmed the State Land Office's decision to reject applications for two rights-of-way and a business lease covering approximately 0.6 miles of a proposed 17-mile, 24-inch natural gas pipeline. The facilities would connect Project Jupiter to an existing El Paso Natural Gas pipeline.

Energy Transfer submitted letters in April requesting reconsideration after the agency canceled the applications on March 20. The commissioner rejected those requests, stating that issuing the authorizations would not be in the best interests of the state's land trust.

According to the letter, the requested rights-of-way would generate limited revenue for the trust—one-time payments totaling about $31,900 over 35 years—while the proposed business lease would generate annual payments of about $43,400 during its five-year term. Garcia Richard also argued the project would provide few direct benefits to trust beneficiaries while raising concerns about greenhouse gas emissions, water consumption and impacts on state resources.

"Building pipelines and other gas infrastructure intended to serve Project Jupiter is a poor use of New Mexico state trust lands and staff resources and, based on available information, appears that it will impose environmental costs on New Mexico greater than any resulting benefit to the trust, our people and our resources," Garcia Richard wrote.

The commissioner also emphasized that filing an application and paying associated fees does not entitle an applicant to a lease or right-of-way, noting that state law gives the commissioner discretion to determine whether proposed uses are in the best interests of the land trust.

The Green Chili Lateral would transport up to 400 million cubic feet of natural gas per day to Project Jupiter, a large-scale data center development planned in southern New Mexico. Garcia Richard cited the project's expected greenhouse gas emissions and water demand as additional reasons for maintaining the denial.

Energy Transfer may challenge the decision by filing a petition for administrative review within 30 days, according to the letter.

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