SOUTHERN NEW MEXICO
New legal challenges target Project Jupiter construction
Petitions target construction water well, allege bias in air permit process
The state Supreme Court received another petition Thursday, the second over two days, related to the rapid construction of a 1,400-acre AI data center in Santa Teresa.
The Center for Biological Diversity filed challenging the Office of the State Engineer鈥檚 approval of a well supplying groundwater for the data center鈥檚 construction. Based on meter readings, the petition alleges over 100 million gallons of water have been pumped from the new well since April.
Known as Project Jupiter, the controversial project began its construction phase in September for use by Oracle and OpenAI.
On Oct. 21, 2025, petitioner Santa Teresa Capital of El Paso applied for a change to an existing water right, plus an emergency authorization to drill a replacement well next to a historic well associated with a sod farm close to the Project Jupiter location. The historic water right allows up to 2,400 acre-feet per year.
OSE granted the emergency authorization two days later but, after 10 months, has yet to hold a hearing, despite a formal protest filed in January by the center.
The petition argues that the use of an emergency authorization to expedite Project Jupiter鈥檚 construction violates New Mexico water law. The center is asking the court to declare OSE鈥檚 emergency authorization unlawful, temporarily halt the activity and schedule a legally mandated hearing to determine whether the new well and water use are in the public interest.
鈥淣ew Mexico water law sets clear and strict obligations that the state engineer has to follow when considering any changes in well location or water use,鈥 Colin Cox, an attorney for the Center for Biological Diversity based in New Mexico, stated in a news release. 鈥淭hese include informing community members of the proposed changes and requiring the state to hold a public hearing. These are critical due process protections that have been cast aside for Project Jupiter.鈥
The OSE declined to comment on the petition.
Hearing examiner challenged
Also Thursday, the Center for Biological Diversity joined the New Mexico Environmental Law Center in filing a petition with the state Environment Department seeking to remove the hearing examiner presiding over an upcoming public hearing about air quality permits sought by Yucca Growth Infrastructure.
The petition seeks approval for the data center鈥檚 plan for methane-fueled fuel cell technology to supply power to the data center, with greenhouse gas emissions estimated between 8.8 and over 10 million tons per year.
The deadline for NMED鈥檚 decision is Nov. 23.
The potential pollution has roiled residents of Santa Teresa and Sunland Park, where memories are still fresh of health impacts from the former ASARCO smelter in neighboring El Paso.
The state Environment Department is set to open a public hearing in Santa Teresa on Sept. 14.
On Wednesday, clean energy advocate New Energy Economy filed an emergency writ with the state Supreme Court seeking a temporary stay, arguing that a series of orders by hearing examiner Max Shepherd have deprived opponents of due process.
Yucca Growth Infrastructure decried the New Energy Economy鈥檚 petition as 鈥渁n attempt to circumvent the procedural deadlines of NMED's air permit process鈥 and said it was 鈥渃ommitted to following the schedule the department has provided.鈥
The center and the Environmental Law Center鈥檚 new petition seeks to disqualify Shepherd as hearing examiner and pause the hearing until a new examiner is in place and procedures ensuring due process are established.
Shepherd did not respond to a query from the Journal.
The petition argues that Shepherd鈥檚 alleged 鈥渇ast-tracking of this proceeding, arbitrary and inconsistent rulings, frequent reversals and consistent favoritism towards the (Environment) Department and (Yucca Growth Infrastructure) demonstrates that he is not conducting a fair and impartial proceeding and he is not providing all parties the opportunity to develop the record.鈥
Opponents of the project have argued that the September hearing, as well as the prehearing schedule, offered insufficient time for expert witnesses to review technical evidence and prepare testimony.
The petition cites a February 2025 memorandum of understanding between the state of New Mexico and Project Jupiter鈥檚 initial developer, BorderPlex Digital Assets stating that the NMED, as a state agency, 鈥渄esires the development and construction鈥 of what was referred to at the time as a 鈥渄igital infrastructure campus,鈥 with no mention of Oracle or OpenAI鈥檚 involvement.
In light of that commitment, NMELC senior staff attorney Maslyn Locke said, 鈥淚t's not clear to me how we could ever get a fair hearing on this application.鈥
In a comment for the Journal, Locke continued, 鈥淥ur hope is that, by clearly laying out Mr. Shepherd's pattern, the Department will finally understand the significant due process violations that have resulted from this process. The people of Sunland Park deserve better than the Department's rubber stamp on the largest proposed polluter in the state."
NMED spokesperson Drew Goretzka said the department is 鈥渞equesting that the hearing officer convene a status conference with all parties to determine appropriate next steps.鈥
鈥(Neither) the Environment Secretary nor NMED staff set the hearing schedule,鈥 Goretzka wrote to the Journal. 鈥淗earing dates, filing deadlines and other procedural decisions outside of regulatory decision deadlines are made by the independent hearing officer.鈥
Goretzka said the decision to remove Shepherd or not falls to Deputy Secretary John Rhoderick, 鈥渨ith whom NMED staff are not permitted to discuss Project Jupiter matters.鈥
Algernon 顿鈥橝尘尘补蝉蝉补 is the Journal鈥檚 southern New Mexico correspondent. He can be reached at adammassa@abqjournal.com.
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