ALBUQUERQUE, N.M. — A Texas company has reached a multimillion-dollar settlement with the federal government and the state of New Mexico to address air pollution concerns in the largest oil and gas producing region in the United States.
The agreement announced Tuesday with Apache Corporation calls for the company to pay $4 million in penalties and spend more than $5 million on preventative measures to reduce emissions at its wells in the Permian Basin, which spans parts of New Mexico and Texas.
Apache was accused in a civil lawsuit of failing to comply with federal and state requirements to capture and control emissions at some of its operations in the two states. Federal officials and regulators in New Mexico identified the alleged violations through field investigations and flyovers by helicopters outfitted with infrared cameras that can detect hydrocarbon vapors that are invisible to the naked eye.
Efforts by regulators to crack down on oil companies have ramped up in recent years through a combination of on-the-ground inspections, flyovers and now satellite imagery as they look for Clean Air Act violations across the Permian Basin and in other oil producing regions.
New Mexico Environment Secretary James Kenney said he’s concerned about the compliance rate for companies operating in New Mexico, describing it as terrible.
“The ozone levels are rising, and you know, I think this is that moment where we have to hold up the mirror to industry and say, ‘If you don’t like what you see, it’s a reflection of your own effort,” he said during an phone interview.
The civil complaint targeting Apache comes nearly a year after federal and state officials announced a similar agreement with another producer in the Permian Basin over violations. In 2022, an investigation by The Associated Press showed 533 oil and gas facilities in the region were emitting excessive amounts of methane.
Surveillance done by state and federal regulators in 2019, 2020 and 2022 turned up alleged violations at nearly two dozen of Apache’s sites.
The company said in an email that the consent decree announced Tuesday resolves alleged violations from years ago and that the company acted swiftly to remedy the issues. Changes have included modifications to allow for more measurement, monitoring and capture of emissions and increased site inspections and expedited maintenance timelines.
“Moving forward, the consent decree represents our commitment to continuous improvement across…
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