Devon and other drilling firms targeted in new initiative in New Mexico

 

Oklahoma City’s Devon Energy is among at least 20 oil and gas exploration companies being notified by the New Mexico Environmental Department of required licensing over the management of radioactive materials.

The New Mexico Environment Department  launched a compliance initiative to ensure oil and natural gas companies are properly licensed and in compliance with rules governing the management of regulated Natural Occurring Radioactive Materials (NORM).

The regulations were adopted more than two decades ago, requiring oil and natural gas operators must obtain a license if their activities alter or cause potential human exposure to NORM at certain levels. These activities may consist of extraction, transfer, transport, storage, or disposal of materials. NMED currently regulates two NORM licensees.

The regulations focus on NORM that is found in equipment from oil, gas, soil, produced water, sludges, scale deposits in pipes and tanks and equipment from gas processing.

NMED issued letters to approximately 20 oil and gas companies that operate a combined 39,000 wells in New Mexico. Any company receiving such a letter must respond to NMED within 60 days describing their compliance status. Failure to comply with the requirements outlined in the letter may result in civil penalties of up to $15,000 per day.

Over the next few months, NMED will determine the extent of compliance or non-compliance with the rules by the oil and natural gas industry and take appropriate enforcement action if warranted.

Operating without a license is a violation of state law. It may result in enforcement proceedings in accordance with NMSA 1978, Section 74-3-11.1, including the following: (1) a compliance order with civil penalties of up to $15,000 per day for each violation or (2) a civil action in district court for appropriate relief, including injunctive relief.

The 20 firms that received notices were:

R 360

Solaris Water Midstream

Agua Moss

Basin Disposal

HILCORP ENERGY COMPANY

EOG RESOURCES INC

APACHE CORPORATION

Spur Energy Partners LLC

SIMCOE LLC

OXY USA INC

DEVON ENERGY PRODUCTION COMPANY, LP

CHEVRON U S A INC

COG OPERATING LLC

MEWBOURNE OIL CO

CONOCOPHILLIPS COMPANY

LOGOS OPERATING, LLC

XTO ENERGY, INC

DUGAN PRODUCTION CORP

LEGACY RESERVES OPERATING, LP

More information on NORM is available here.