New Mexico reaches a record agreement with a company over flaring natural gas.

New Mexico has recently achieved a groundbreaking settlement with a Texas-based company regarding air pollution violations at natural gas gathering sites in the Permian Basin. The $24.5 million agreement with Ameredev, as announced on Monday, stands as the largest settlement ever reached by the state Environment Department for a civil oil and gas violation. This violation centered around the flaring of billions of cubic feet of natural gas that the company had extracted over an 18-month period, but failed to transport to downstream processors.

According to Environment Secretary James Kenney, the flared gas amounted to enough supply for nearly 17,000 homes for a year. He expressed his concern, stating, “It’s completely the opposite of the way it’s supposed to work. Had they not wasted New Mexico’s resources, they could have put that gas to use.”

The flaring of gas resulted in excess emissions of more than 7.6 million pounds, including harmful substances like hydrogen sulfide, sulfur dioxide, nitrogen oxides, and other gases known to cause respiratory issues and contribute to climate change. Ameredev released a statement on Monday, noting that they were pleased to resolve what they described as a “legacy issue”. The company emphasized that the state’s Air Quality Bureau had not identified any ongoing compliance problems at their facilities.

While operators have the option to vent or flare natural gas during emergencies or equipment failures, New Mexico implemented rules in 2021 to prohibit routine venting and flaring. These rules set a deadline for companies to capture 98% of their gas by 2026 and require the regular tracking and reporting of emissions. A study published in March in the journal Nature revealed that American oil and natural gas operations were emitting more greenhouse gases than previously estimated, resulting in $9.3 billion in annual climate damage.

As part of the settlement, Ameredev agreed to undergo an independent audit of its operations in New Mexico to ensure compliance with emission requirements. They are also obligated to submit monthly reports on actual emission rates and propose a plan for weekly inspections over a two-year period or install leak and repair monitoring equipment.

Kenney mentioned that it was a citizen complaint that initially alerted state regulators to Ameredev’s flaring practices. The Environment Department is currently investigating multiple other potential pollution violations around the basin, indicating that further penalties may be imposed. Kenney emphasized the importance of upholding air quality regulations by the oil and gas industry, stating, “With a 50% average compliance rate with the air quality regulations by the oil and gas industry, we have an obligation to continue to ensure compliance and hold polluters accountable.”