Six oil and gas companies fined by New Mexico for air pollution. Here's what we know

Six oil and gas operators in southeast New Mexico were accused by state regulators of excessive air pollution emissions, incurring about $2 million in fines.

The Oil Conservation Division (OCD) announced Thursday it issued notices of violations to the companies of illegal venting and flaring practices in 2022 at facilities in the Permian Basin region.

None of the six companies immediately returned requests for comments from the Carlsbad Current-Argus.

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The companies have until June 14 to reach informal resolutions to the violations with the OCD or face a hearing where thousands of dollars in fines could be assessed, and in each case were given 21 days to submit a plan to the State of New Mexico on how each operator planned to reduce emissions.

Acting Director Dylan Fuge with the agency said it could not justify “hundreds of days” of releases reported by the operators, and thus issued notices of violation of state laws to the companies.

“Here, OCD could not find a reasonable justification for a facility to have dozens or hundreds of days with reportable venting or flaring,” Fuge said.

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Here’s what we know so far about the violations and potential penalties against the operators.

Avant Operating

A tank battery owned by Avant Operating was reported to vent or flare natural gas for at least 229 days in 2022, read the OCD’s notice of violation.

That meant about 267 million cubic feet of natural gas was released into the atmosphere, the OCD reported, at an average of about 1.2 million per day, meaning the company was releasing air pollution from the facility for more than 60 percent of the calendar year.

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A $200,000 civil penalty was issued for the violation.

Colgate Operating

Two batteries owned by Colgate Operating in the region were reported in violation of venting and flaring rules, the OCD reported, totaling 312 days of venting and flaring between the facilities.

That meant a total of 436 million cubic feet of natural gas was released by the two facilities combined.

The OCD said the violations resulted in a $200,000 fine for each battery, for a total of $400,000.

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Franklin Mountain Energy

Another two tank batteries owned by Franklin Mountain Energy were cited for air pollution violations, venting and flaring for a reported combined 230 days, the notice read.

That resulted in a combined total of about 236 million cubic feet of gas released into the atmosphere, read the notice.

For these alleged violations, Franklin Mountain Energy was assessed a fine of $400,000.

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Frontier Field Services

Three compressor stations operated by Frontier Field Services released a total of about 506 million cubic feet of natural gas during a combined 304 days last year, the OCD reported.

The operator faced a $567,000 fine for its violations.

Permian Resources Operating

About 167 million cubic feet were illegally vented or flared from a tank battery owned Permian Resources last year, the notice read, over about 91 days.

That meant a civil penalty of $200,000 was issued by the OCD.

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Tascosa Energy Partners

A facility owned by Tascosa allegedly vented or flared for 207 days last year, OCD alleged, releasing about 226 million cubic feet of gas.

That brought a fine of $200,000 from the OCD.

Why are the emissions a problem?

Vented and flared natural gas typically contains large volumes of methane, known as a greenhouse gas, and volatile organic compounds (VOCs) that can form ground-level ozone – also known as smog.

These air pollutants reduce air quality in the Permian Basin, causing health problems like respiratory illnesses and forms of cancer through long-term exposures.

The federal Environmental Protection Agency was investigating the Permian Basin in both Texas and New Mexico for heightened ozone levels, and if found in violation could meant the restriction of future oil and gas permitting and other regulatory activities.

Meanwhile, the State of New Mexico in 2021 and 2022 enacted new rules to ban routine flaring, increase gas capture requirements and add stronger requirements for leak detection and repair among fossil fuel producers.

Adrian Hedden can be reached at 575-628-5516, achedden@currentargus.com or @AdrianHedden on Twitter.

This article originally appeared on Carlsbad Current-Argus: Six oil and gas companies fined by New Mexico for air pollution