Texas oil and gas company Hilcorp Energy agreed to pay $932,500 to settle violations relating to remediation plans at six of its New Mexico facilities.
The settlement was announced by the New Mexico Energy, Minerals and Natural Resources Department’s Oil Conservation Division. It said the settlement of the notice of violation, or NOV, involved sites in northwest New Mexico.
Hillcorp not only agreed to pay the civil penalty of $932,500 but also to correct the the violations and prevent the violations from occurring again at other sites.
The NOV alleged in October 2019 through September 2021, Hilcorp failed to meet parameters and conditions of approval associated with remediation plans for each SVE Remediation Site.
“This settlement reinforces the Oil Conservation Division’s commitment to compliance and environmental remediation,” said OCD Director Adrienne Sandoval. “The settlement not only
finalizes a substantial civil penalty that will go into the state’s general fund but establishes a proactive way forward to remediate the sites and manage any future issues.”
In addition to paying the civil penalty and submitting updated corrective action plans, the following actions are required by Hilcorp:
No later than 30 days after the Order is signed by the OCD Director:
• Hilcorp shall maintain 90% run time per quarter based on 24 hours per day for its nonsolar powered SVE systems and 90% run time per quarter based on seasonal available daylight hours for its solar SVE systems.
• Install an analog/digital runtime counter which shall be always visible for inspection.
• Submit quarterly reports no later than 15 days follow the last day of each calendar
quarter.
No later than 60 days after delivery of equipment ordered on December 14, 2021:
• Install the upgraded blower system at the O H Randell #005 consistent with the updated remediation plan.
