New Mexico has achieved a record settlement of $24.5 million with Texas-based company Ameredev over air pollution violations at natural gas gathering sites in the Permian Basin. This settlement is the largest the state Environment Department has ever reached for a civil oil and gas violation. The violations occurred due to the flaring of billions of cubic feet of natural gas that the company had extracted over an 18-month period but was unable to transport to downstream processors. The Environment Secretary James Kenney stated that the flared gas could have supplied nearly 17,000 homes for a year, making it a significant waste of resources.
The flaring of natural gas resulted in more than 7.6 million pounds of excess emissions, including hydrogen sulfide, sulfur dioxide, nitrogen oxides, and other gases known to cause respiratory issues and contribute to climate change. Ameredev has claimed that the issue has been resolved, stating that there are no ongoing compliance problems at the company’s facilities and that they have not experienced any flaring-related excess emissions events in the last four years due to investments in advanced technologies and operational enhancements. New Mexico has rules in place that prohibit routine venting and flaring and require companies to capture 98% of their gas by 2026, as well as track and report emissions regularly.
A study published in March noted that American oil and natural gas sites were emitting more greenhouse gases than previously estimated, causing $9.3 billion in yearly climate damage. The authors of the study suggested that the fixable problem could be addressed, as about half of the emissions come from just 1% of oil and gas sites. Under the settlement, Ameredev has agreed to conduct an independent audit of its operations in New Mexico to ensure compliance with emission requirements. They will also submit monthly reports on actual emission rates and propose a plan for weekly inspections or install leak and repair monitoring equipment.
The Environment Department’s investigation of Ameredev started with a citizen complaint about flaring, which led to the discovery of the violations. The department is currently looking into other potential pollution violations in the basin, and it is likely that more penalties could be imposed as a result. Kenney stated that with an average compliance rate of 50% with air quality regulations by the oil and gas industry, there is an obligation to ensure compliance and hold polluters accountable. The settlement with Ameredev serves as a significant step towards enforcing environmental regulations and protecting the air quality in New Mexico.
Overall, the settlement between New Mexico and Ameredev over air pollution violations at natural gas gathering sites in the Permian Basin marks a significant milestone in holding oil and gas companies accountable for environmental violations. The state’s Environment Department has taken action to address the issue of flaring and emissions, setting rules to prohibit routine venting and flaring, track and report emissions regularly, and enforce compliance measures. The settlement with Ameredev includes requirements for an independent audit of operations, monthly emission reports, and inspections to ensure compliance with emission requirements. As more investigations into potential pollution violations continue, the department aims to protect air quality and hold polluters accountable for their actions.
