Oil and gas producer to pay $4 million for violating federal clean air regulations

WASHINGTON (CN) — A Houston-based oil and gas producer will pay $4 million in civil penalties and spend at least another $5.5 million to meet federal clean air regulations at its facilities in New Mexico and Texas.

The Department of Justice announced a consent order with Apache Corp. on Tuesday to settle a civil suit lodged by the Environmental Protection Agency and the New Mexico Environment Department.

The agencies alleged that Apache didn’t comply with federal and state requirements to control air emissions at 23 of its facilities in New Mexico and Texas between 2019 and 2022.

Apache Corp. is a subsidiary of APA Corp., which explores and develops oil and natural gas resources in the United States, particularly in southeast New Mexico and west Texas.

Federal regulators said the compliance agreement will lead to annual reductions of the company’s emissions of 9,650 tons of volatile organic compounds and 900 tons of methane. The company is required to make sure 422 of its pads in New Mexico and Texas comply with regulations.

“This settlement shows that oil and gas operators deserve greater scrutiny because too many are failing to comply with federal and state rules,” New Mexico Environment Cabinet Secretary James Kenney said. “As a result, bad actors will cause greater federal and state regulation of the entire oil and gas industry as ozone levels rise and public health suffers.”

The $4 million fine will be shared equally by the federal government and New Mexico, which will put its portion in the state’s general fund.

Apache must also spend at least $4.5 million to implement and operate monitoring improvements, including new tank pressure monitoring systems. The company will also spend more than $1 million to replace 400 pollutant-emitting pneumatic devices with non-emitting devices on an accelerated schedule.

“Robust enforcement of Clean Air Act violations at oil and gas facilities protects communities from harmful smog and reduces methane emissions that are major contributors to global climate change,” David Uhlmann, assistant administrator of the EPA’s office of enforcement and compliance assurance, said in a press release. “Today’s agreement demonstrates EPA’s commitment to working with our state partners to tackle climate change and improve air quality for everyone living in the United States.”

The Justice Department said methane is 28 times more powerful than carbon dioxide in its impact on global warming. Apache’s reduction is equivalent to eliminating the use of more than 2.5 million gallons of gasoline annually.

“Noxious pollutants directly threaten the health of neighboring communities while propelling our world toward climate disaster,” said U.S. Attorney for the District of New Mexico Alexander Uballez, calling environmental justice a “top priority” for his office.

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