Jun. 14—In the midst of a controversial state-level rule making process on new regulations for the potential reuse of fracking wastewater, environmental groups who oppose the change have raised concerns about the impartiality of one of the decision-makers.

They argue Water Quality Control Commissioner Krista McWilliams — an oil and gas company executive from Farmington — should recuse herself from voting on the pending rule change that would adopt some regulations anticipating the reuse of so-called “produced water” for industrial purposes.

A host of environmental and Indigenous advocacy groups, including Santa Fe-based organization New Energy Economy, signed on to a complaint that was submitted Monday to the State Ethics Commission. It accuses McWilliams of failing to disclose ties to the oil and gas industry that they allege amount to “personal and professional conflicts of interest” in the rule change before the commission.

“Explain how somebody who clearly has a vested interest in oil and gas and, specifically, produced water, does not have a conflict of interest,” Melissa Troutman, a spokeswoman for environmental advocacy group WildEarth Guardians, said in an interview Wednesday.

The complaint says McWilliams’ position as co-chief operating officer at Logos Resources, a New Mexico-based drilling company, and her affiliation with various oil and gas groups and associated figures present conflicts. The groups are asking the State Ethics Commission to investigate McWilliams for potential violations of the Governmental Conduct Act, the Financial Disclosure Act and the Water Quality Act.

In an email, McWilliams denied having a conflict of interest “directly or through LOGOS” and said she does not expect the rule change to benefit either her or the company. She said Logos “has not used produced water for any purpose other than recycled-reuse use in oil and gas applications and does not plan to do so in the future.”

“It is extremely unfortunate that New Energy Economy is attempting to discredit and disqualify a female, native New Mexican engineer with expertise to utilize relevant technical testimony to produce a science-driven vote that is best for all stakeholders in our state,” McWilliams wrote.

The pending rule change, proposed by the state Environment Department in December 2023, would amend state code to include some provisions allowing the reuse of “treated produced water,” including for what are called “demonstration projects” and “industrial applications,” by submitting a notice of intent to the department.

Produced water, which according to the proposed regulation “includes known and unknown water pollutants,” is defined as “a fluid (wastewater) that is an incidental byproduct from drilling for or the production of oil and gas, and includes formation water, flowback water, and any chemicals added downhole during drilling, production, or maintenance processes during the life cycle of an oil or gas well.”

Social media posts from the Environment Department in May said the proposed rules “were drafted to protect our waterways,” and stressed they would “NOT permit the release of water leftover from fracking.” The New Mexico Oil and Gas Association praises new projects for reusing produced water — including for agriculture — calling it “an opportunity to address New Mexico’s water scarcity” in a recent news release. However, New Energy Economy Executive Director Mariel Nanasi and others who oppose the rule say there is no evidence treatment of fracking wastewater can be done safely and worry changing regulations without adopting specific treatment standards could pose health threats.

A public hearing is scheduled for Aug. 5.

McWilliams said Logos is not a member of the new Mexico Oil and Gas Association, which is a party in the pending case and supports the rule change. However, the complaint says it is one, pointing to news releases from the trade group in 2020 and 2021 that touted the company by name. A spokesman for the oil and gas association did not immediately respond to an inquiry about Logos.

Environmental activists Daniel Tso and Samuel Sage — a past Navajo Nation councilor — also signed the ethics complaint, as did the groups Earth Care, Indivisible Albuquerque, Tewa Women United and Youth United for Climate Crisis Action. A corresponding motion filed by New Energy Economy in the commission proceeding calls for McWilliams to either recuse herself from the case or be disqualified.

The complaint points to Logos’ handling of millions of barrels of fracking wastewater in 2023, according to the state Oil Conservation Division’s permitting data, and argues Logos’ and McWilliams’ financial interests “will be directly impacted by the … ruling on the reuse rule.” The filings also highlight a seeming web of associations, including McWilliams’ position on the board of the Independent Petroleum Association of New Mexico and her husband’s former position as a New Mexico Oil and Gas Association board member.

Commission Chairman Bruce Thomson wrote in an email Wednesday he was unsure how the commission would move forward with handling the complaint. He expressed support for McWilliams, noting that, along with other commissioners, she made a public statement declaring no personal or professional conflicts of interest related to the case at the start of a hearing May 13.

“I accept the statements made by all other commissioners that they do not have conflicts of interest and believe that they serve on the commission with honesty and integrity,” Thomson wrote.

Some who are challenging the rulemaking said they were shocked when McWilliams did not recuse herself.

“How can you just gloss over the stakes that you have in the industry being regulated by this rule?” Troutman asked.

Colin Cox, an attorney for the Center for Biological Diversity, said his group has signed onto the motion calling for McWilliams to be disqualified from the case. McWilliams was among several others who did not file a financial disclosure form with the Secretary of State, a legal requirement for commissioners Cox said he raised.

“It’s possible this whole thing should be scrapped until the commissioners can comply with their statutory duties,” he said.

Gov. Michelle Lujan Grisham appointed McWilliams to the commission in 2019 and reappointed her last year. Jodi McGinnis-Porter, a spokeswoman for the Governor’s Office, wrote in an email the governor did not “have enough facts about this specific issue” to comment.

“However, as a general rule, the governor expects all of her appointees to conduct themselves ethically and to avoid conflicts of interest,” she wrote.