Apache to pay $4M in civil penalties over clean air rule violations

The U.S. Department of Justice said that the Apache Corporation has agreed to pay $4M in civil penalties and undertake projects expected to cost at least $5.5M to ensure 422 of its oil and gas well pads in New Mexico and Texas comply with state and federal clean air regulations and offset past illegal emissions. Apache’s agreement settles a civil suit – filed jointly by the United States, on behalf of the Environmental Protection Agency, and the New Mexico Environment Department – alleging that Apache failed to comply with federal and state requirements to capture and control air emissions from 23 of its oil and gas production operations in New Mexico and Texas. EPA and NMED identified the alleged violations through field investigations and repeated flyover surveillance conducted in 2019, 2020 and 2022. Compliance with this robust settlement will result in annual reductions of more than 9,650 tons of volatile organic compounds (VOCs) and 900 tons of methane, which equates to more than 25,000 tons of carbon dioxide (CO2). VOCs are a key component in the formation of ground-level ozone or smog, which irritates lungs, exacerbates diseases including asthma and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. “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.”