Oil and Gas Company agreed to compensate for environmental cleanup

Oil and Gas Company to compensate for environmental cleanup in US and New Mexico

Recent consent decrees with energy companies in New Mexico aim to address approximately 15% of the state's oil and gas production and around nine percent of its wells. While many operators in the Permian Basin adhere to existing regulations, state officials warn that non-compliance could lead to increased federal and state enforcement across the industry, particularly if ozone levels continue to rise. Apache Corporation, a Texas-based energy company, has reached a multimillion-dollar settlement with the federal government and the state of New Mexico to tackle air pollution concerns in the largest oil and gas-producing region in the US. Under the agreement announced on Tuesday, Apache will pay USD 4 million in penalties and allocate over USD 5 million to implement preventative measures aimed at reducing emissions at its wells in the Permian Basin, spanning parts of New Mexico and Texas.

Allegations against Apache stemmed from a civil lawsuit accusing the company of failing to adhere to federal and state requirements for capturing and controlling emissions at certain operations in the two states. Federal officials and New Mexico regulators identified these purported violations through field investigations and aerial surveillance, including the use of infrared cameras on helicopters to detect hydrocarbon vapors. In recent years, regulators have increased their attempts to enact laws on oil corporations, using a mix of ground examinations, aircraft surveillance, and imagery from satellites to identify Clean Air Act infractions in the Permian Basin as well as additional oil-producing areas.