Steven McCutcheon tapped by Lujan Grisham to replace Gay Kernan in New Mexico Senate

Former-Eddy County Commissioner Steven McCutcheon II was appointed by Gov. Michelle Lujan Grisham to fill the vacant District 42 seat in the New Mexico Senate, representing portions of Eddy, Lea and Chaves counties.

McCutcheon was chosen to replace former-Sen. Gay Kernan of Hobbs who resigned in August.

Under state statute, commissions of the counties represented in a legislative district each nominate a replacement when a seat is resigned, with the governor making the final decision.

More: Gay Kernan to resign from New Mexico Senate. Rep. Larry Scott seeking to replace

The Eddy County Commission recently voted to nominate McCutcheon, while Lea and Chaves counties nominated State Rep. Larry Scott (R-62) of Hobbs, who previously signaled he would run for the seat in the November 2024 election if not appointed.

A native of Carlsbad, McCutcheon was elected to the Eddy County Commission in 2018, and served as 2019 to 2022, announcing he would not seek reelection in the last year.

More: Eddy, Lea and Chaves counties chose nominees to replace Sen. Gay Kernan

His term begins immediately, and McCutcheon said he plans to seek election in 2024, likely competing with Scott for the GOP nomination.

McCutcheon said he'll first have to learn the key issues of the region, and how to address them legislatively, aiming to represent constituents in all three counties of the district.

The state's "30x30" initiative to conserve 30 percent of public lands by 2030 was an issue McCutcheon said would need to be closely analyzed for potential impacts to landowners and access, along with produced water and pushing for better funding of the southeast region.

McCutcheon argued the region generated large portions of state revenue and should be better supported by Legislature, while the fossil fuel industry should be protected from restrictive environmental regulations.

"We definitely have to have the conversation about where the money is coming from," McCutcheon said. "It feels like a little bit of defense. With the scale moving the state more toward oil and gas, that conversation needs to happen.

"We've been well represented, but not well received."

Scott said he was not surprised Lujan Grisham opted to not appoint him to the Senate, pointing to his history of opposing the governor and most recently joining a lawsuit against Lujan Grisham's recent executive order to tighten gun regulations in the state.

"I am not all that surprised because I have stood in the way of so many of the governor's initiatives over the years," he said.

And in the next election, Scott said he hoped to have an advantage as more voters for the district are in his home county.

"I hope he's successful up there, but I intend to beat him," Scott said. "I do have a long track record in Lea County and do have an advantage in that regard. The demographics favor the people of Lea County choosing that Senate seat.

"I know he's a hometown guy in Eddy County, but he'll have to come play in my backyard to win the election."

Kernan, who held the seat for 21 years since she was appointed by former Gov. Gary Johnson in 2002, said the new senator must work to familiarize himself with the other lawmakers and issues in the months leading up to the 2024 Legislative Session starting in January.

More: About half of New Mexico's budget is reliant on the oil and gas industry, report says

“He’s going to have to get up to speed pretty quick. He’ll have to hit the ground running,” she said. “The first thing I would say is to just sit back and listen for a while. It takes a little while to find out who you can count on.”

Like all lawmakers from New Mexico's deep-red southeast region, Kernan said McCutcheon will have to defend the area’s economic interests like oil and gas from the Democrat-controlled legislature.

Most of the district’s constituents are in Lea County, Kernan said, and McCutcheon must represent all of the district, she said, not just his home Eddy County.

More: New Mexico GOP's 'gerrymandering' case will proceed after Democrat arguments rejected

“I liked to represent everyone in our district,” she said. “I had a good relationship with the leaders of Eddy County. I hope he will reach out across county lines.”

McCutcheon said the southeast counties have many issues in common, and he would work to unify the region.

"I don't think we can limit my representation to just Carlsbad. My district is my district," he said. "If don't hang together, we hang separate. The battle we have is too big to isolate to one geographic location."

Kernan also pointed to reforming the state’s gross receipts tax policy, which in 2019 was amended via House Bill 6 to charge taxes based on where a service takes place and not where the business that provides the service is located.

Oilfield cities like Carlsbad and Hobbs said they lost out on millions of dollars in the two years since the bill was enacted, as much of the extraction activities take place outside of city limits while operators are based within.

More: 'Gerrymandering' lawsuit against New Mexico Democrats delayed ahead of trial

Lujan Grisham vetoed Senate Bill 292 in the last session, which would have appropriated $25 million to the City of Carlsbad to make up for the loss.

A similar measure to send funds to Hobbs was also blocked from becoming law, and Republicans were developing long-term reforms led by Scott.

Kernan said these efforts were “No. 1” for McCutcheon to support during the upcoming session, and he agreed it was a top issue.

“Representative Scott has a good plan, but it’s not something that comes easy,” Kernan said. “That’s the biggest challenge, and I wish him (McCutcheon) well.”

Carlsbad Mayor Dale Janway said the appointment will be beneficial for a city and county that recently lacked representation in the New Mexico Senate.

Rep. Jim Townsend (R-54), of Artesia, announced recently he planned to run for the GOP nomination of Senate District 34, held by Sen. Ron Griggs of Artesia.

As the senate seats are targeted by Eddy County politicians, Janway said the interests of Eddy and Lea counties, both contained within the Permian Basin oilfields, frequently overlap.

The oil and gas industry, centered in the basin, made up about half of New Mexico’s General Fund revenue in the last fiscal year, and Janway said lawmakers should ensure that economic benefit translates to legislative support of the region.

“Eddy, Lea and Chaves Counties have overlapping interests at all times, however, we certainly celebrate the fact that a resident of Eddy County – which plays a critical role to the entire state’s economic well-being – is directly represented in the state senate,” Janway said.

“We believe Senator McCutcheon knows very well what the priority of his constituents are, including making sure our region’s highways and infrastructure are taken care of, making sure our key industries are supported, and making sure our rights and freedoms are upheld.”

But to do that, McCutcheon and the rest of the GOP will have to go up against a legislature controlled by the opposing party for years.

He said overcoming the majority will mean telling the story of southeast New Mexico's prominent but often unsung role in the state.

"We've been ineffective over the last several years," McCutcheon said of the state GOP. "We want to open some dialogue and see if we can get something done. We're definitely outnumbered. It's a tough fight."

Adrian Hedden can be reached at 575-628-5516, achedden@currentargus.com or @AdrianHedden on X, formerly known as Twitter.

This article originally appeared on Carlsbad Current-Argus: Steven McCutcheon tapped to replace Gay Kernan in New Mexico Senate