New Mexico water regulators adopted a settlement that puts to rest a dispute over the regulation of millions of tons of waste produced each year by the state's $2.6 billion dairy industry. The Water Quality Control Commission voted unanimously during a hearing in Santa Fe in favor of the settlement brokered by state attorneys, dairy farmers and environmentalists.

Dairy owners complained that the costs of implementing the rule would force some dairies out of business. Environmentalists, meanwhile, tried to hold on to the gains made during the year leading up to the rule's approval. The settlement was finally reached in July.

"To be honest, everybody got a piece of what they wanted," said Dan Lorimier of the Sierra Club's Rio Grande chapter. "Now, it's just a matter of getting it implemented because we have been in limbo for way too long now."

Environmentalists had feared the dairy rule would be one of many Richardson-era environmental initiatives that would face a rollback under Republican Gov. Susana Martinez, who has vowed to make New Mexico more business friendly.

The Environment Department and its legal staff touted the amendments spelled out in the settlement as a way to protect water while allowing dairies flexibility with day-to-day operations.

The amended rule still requires dairies to install monitoring wells. It also requires new dairies and those that have had leaking impoundments to install synthetic liners.

Existing dairies where waste reservoirs haven't contaminated groundwater are allowed to operate without installing new impoundments.

There are also increased public notice requirements for new dairies.

Gone from the rule are requirements for certain documentation, such as grading and drainage plans for existing dairies. Changes were also made to allow for more flexibility when it comes to using flow meters to measure the wastewater discharged from milking parlors and wash areas.

The key requirements are the monitoring wells and synthetic liners, said Michael Jensen of Amigos Bravos, a clean water advocacy group.

"Wells and liners get to the heart of the problem, which is that, according to New Mexico Environment Department data, at least two-thirds of dairies in New Mexico have already contaminated groundwater with nitrates, chloride and dissolved solids," he said.

The Environment Department testified during last year's hearing that contamination at some dairies was extensive, with plumes stretching over a mile.

Supporters of the rule had testified that New Mexico's 340,000 dairy cows generate about 8.7 million tons of waste per year.

The industry disputed claims of widespread contamination and argued that the rule as initially approved would have curbed the economic impact of the state's dairies.

With more than 7 billion pounds of milk produced each year, New Mexico falls among the nation's top 10 states for milk and cheese production. More than 4,000 jobs stem directly from the industry.

It was the dairy farmers who first sought more prescriptive standards in 2009. Previously, discharge permits were based on site-specific conditions that addressed different types of operations as well as geology and aquifer characteristics.

"One of the things the dairy industry hoped to accomplish through these regulations was to get some level of stability. I think, by and large, these kinds of specific regulations do result in some stability as opposed to a system that can result in frequent changes to the requirements," said Dal Moellenberg, an attorney who represents the dairies. PD

—AP newswire report