Apache Corporation to pay $4 million and reduce illegal air pollution caused by oil and gas wells in New Mexico and Texas: Initiative to eliminate of over 10,000 tons of harmful air pollutants yearly

On top of the $4 million penalty, Apache will allocate a minimum of $4.5 million for comprehensive design, operation, maintenance, and monitoring enhancements. This includes the installation of new tank pressure monitoring systems for early emission detection and swift response actions.

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Apache Corporation has reached an agreement to pay a hefty sum of $4 million in civil penalties and invest a minimum of $5.5 million in projects. These projects aim to ensure that 422 of their oil and gas well pads in New Mexico and Texas adhere to both state and federal clean air regulations.

This settlement comes as a result of a civil suit filed by the United States, acting on behalf of the Environmental Protection Agency (EPA), and the New Mexico Environment Department (NMED). The suit alleged that Apache had failed to comply with the necessary requirements to capture and control air emissions from 23 of their oil and gas production operations in the mentioned states.

The violations were identified through thorough field investigations and repeated flyover surveillance conducted by the EPA and NMED between 2019 and 2022.

By fully complying with this comprehensive settlement, Apache will achieve significant annual reductions in volatile organic compounds (VOCs) and methane emissions. Specifically, this translates to a reduction of over 9,650 tons of VOCs and 900 tons of methane, which is equivalent to more than 25,000 tons of carbon dioxide (CO2).

VOCs play a crucial role in the formation of ground-level ozone or smog, which can have detrimental effects on respiratory health. It can irritate the lungs, worsen existing conditions like asthma, and increase vulnerability to respiratory illnesses such as pneumonia and bronchitis.

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“Today’s settlement will ensure compliance at hundreds of oil and gas facilities across New Mexico and Texas,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Under the settlement, over 400 Apache facilities will be required to take extensive steps to reduce emissions of volatile organic compounds – which contribute to smog – as well as methane gas, which is a significant contributor to climate change.”

“Robust enforcement of Clean Air Act violations at oil and gas facilities protects communities from harmful smog and reduces methane emissions that are major contributors to global climate change,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “Today’s agreement demonstrates EPA’s commitment to working with our state partners to tackle climate change and improve air quality for everyone living in the United States.”

“Noxious pollutants directly threaten the health of neighboring communities while propelling our world toward climate disaster,” said U.S. Attorney Alexander M.M. Uballez for the District of New Mexico. “I applaud the tireless efforts of the Department of Justice’s Environment and Natural Resources Division, the U.S. EPA and the NMED to protect our lungs and our earth. Environmental justice is a top priority for the Department of Justice and the U.S. Attorney’s Office for the District of New Mexico.”

“This settlement shows that oil and gas operators deserve greater scrutiny because too many are failing to comply with federal and state rules,” said New Mexico Environment Cabinet Secretary James Kenney. “As a result, bad actors will cause greater federal and state regulation of the entire oil and gas industry as ozone levels rise and public health suffers.”

The settlement agreement mandates a $4 million fine to be split evenly between the United States and the State of New Mexico, with New Mexico's share going to the state's general fund. The consent decree, filed alongside the complaint in the U.S. District Court for the District of New Mexico, requires the company to take various measures to ensure the lawful operation of 422 well pads covered by the decree in New Mexico and Texas.

On top of the $4 million penalty, Apache will allocate a minimum of $4.5 million for comprehensive design, operation, maintenance, and monitoring enhancements. This includes the installation of new tank pressure monitoring systems for early emission detection and swift response actions. Moreover, Apache will invest over $1 million to mitigate the environmental impact of the alleged violations by replacing more than 400 pollutant-emitting pneumatic devices with non-emitting alternatives.

Methane, pound for pound, is about 28 times more potent than carbon dioxide in terms of global warming impact. Therefore, a reduction of 900 tons of annual methane emissions is equivalent to over 25,000 tons of carbon dioxide (CO2) and is comparable to eliminating the use of more than 2.5 million gallons of gasoline each year.

Human-induced greenhouse gases are a key driver of climate change and global warming. This enforcement settlement underscores the EPA's dedication to safeguarding public health from climate-altering pollution and other harmful substances, benefiting communities nationwide and aligning with the agency's top priority in its strategic plan to address the climate crisis.

The EPA is responsible for establishing National Ambient Air Quality Standards (NAAQS) under the Clean Air Act. These standards are put in place to protect public health and the environment from harmful pollutants. One such pollutant is ozone, which is formed when oxides of nitrogen (NOx) and volatile organic compounds (VOCs) react in the atmosphere. Oil and gas production facilities, like those operated by Apache, emit VOCs and NOx.

During the alleged violations by Apache, air quality monitors in certain counties in New Mexico detected ozone levels that exceeded 95% of the NAAQS. In these counties, the New Mexico Environment Department (NMED) is required by state statute to take action to reduce ozone pollution.

Apache Corporation, a subsidiary of APA Corporation, is actively involved in the exploration and development of oil and natural gas resources in the United States. They are a significant player in the Permian Basin, a region known for its shale oil and gas production in New Mexico and West Texas.

This settlement is part of the EPA's National Enforcement and Compliance Initiative, specifically focused on mitigating climate change. For more information on this settlement, you can visit the EPA's webpage dedicated to it.

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