New Mexico imposes record $24.5 million fine on oil and gas company for air regulation violations

Governor Michelle Lujan Grisham echoed this sentiment, stating that the settlement underscores the state’s dedication to penalizing companies that pollute the air and protecting communities from harmful pollution.

The settlement with Ameredev II, based in Austin, Texas, follows an administrative compliance order issued by NMED’s Environmental Protection Division last year, amounting to $40.3 million. The state identified five Ameredev facilities that engaged in oil and gas extraction but failed to transport the gas to downstream processors, resulting in extensive flaring.

Ameredev’s flaring activities released significant amounts of pollutants into the air, including hydrogen sulfide, sulfur dioxide, nitrogen oxides, carbon monoxide, and volatile organic compounds, posing serious health risks and contributing to climate change.

In response, Ameredev issued a statement expressing their commitment to addressing the issue and highlighting their investments in advanced technologies to prevent flaring-related excess emissions.

As part of the settlement, Ameredev agreed to undergo an independent compliance audit, submit monthly emission reports, propose mitigation projects, and remove equipment from certain facilities. Failure to comply will result in additional penalties.

NMED officials underscored the importance of strict enforcement and emphasized the department’s dedication to deterring noncompliance and protecting the environment.

The settlement sends a clear message to the oil and gas industry regarding the consequences of disregarding environmental regulations and underscores New Mexico’s commitment to ensuring responsible energy production and environmental stewardship.