New Mexico Regulators Crack Down on Oil Producers Burning Off Natural Gas

A Texas-based oil and natural gas producer was hit with previously state fines by New Mexico oilfield and air quality regulators on Thursday after it was claimed that the company disregarded local reporting and control requirements for pollution by burning off large amounts of natural gas in a booming energy-production region in the southeast of the state.

Ameredev, based in Austin, Texas, was fined $40.3 million by the New Mexico Environment Department for allegedly causing excessive emissions at five locations in Lea County, New Mexico, close to Jal, in 2019 and 2020.

Lack of Pipeline for Gas Transportation

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GULF OF MEXICO - AUGUST 03: (EDITORS NOTE: Distortion caused by heat.) Ships work near the site of the BP Deepwater Horizon oil spill on August 3, 2010 in the Gulf of Mexico off the coast of Louisiana. BP is to begin plugging the damaged oil well today with a "static kill", by pumping mud into it. A new estimate puts the total amount of oil leaked into the Gulf at 205.8 million gallons.

Regulators expressed alarm about the excessive emission of many pollutants, including sulfur dioxide, which has been related to climate change or is known to have negative health effects, according to the Associated Press.

According to the agency, Ameredev engaged in oil and gas extraction without having a pipeline to transport the gas elsewhere as required by state legislation.

Instead, the company is accused of burning off natural gas over permitted levels or without permission in 2019 and 2020, resulting in excess emissions equal to the pollution produced by heating 16,640 households for a year, according to a statement from the agency.

The open burning of natural gas, often known as "flaring," is frequently employed as a control method to prevent direct emissions into the atmosphere. Permit criteria include an estimation of the amount of burning.

Other Violations Against Ameredev

Separately, Ameredev was given a violation notice and fine proposal of $2.4 million by state oilfield regulators for a string of violations at one of the firm's wells. Ameredev failed to submit necessary production and waste records for natural gas.

Sarah Cottrell Propst, secretary of the Department of Energy, Minerals, and Natural Resources, stated that her organization was pursuing the highest sanction possible.

The penalties are subject to administrative challenge and, ultimately, court appeal. The Environment Department has instructed the business to stop excessive emissions and apply for permits that represent its operations, with independent auditor verification.

According to Hollman, the sanctions were enacted due to anonymous calls from people concerned about natural gas flares burning outdoors. According to her, this resulted in on-site inspections at tank facilities that collected crude oil from the wells in late December 2019.

Massive amounts of natural gas have been released from the Permian Basin in New Mexico, which reaches into Texas, using cutting-edge oil drilling techniques. However, the capacity of the currently in-use pipes to collect and move the gas is only sometimes sufficient.

With limited exceptions for emergencies and obligatory reporting, state oil and gas officials recently modified regulations to restrict venting and flaring at sites where petroleum is produced to reduce methane emissions.