Dallas based Matador Production Company has reached a settlement with regulators in New Mexico over claims it had commingled oil from different wells without a permit.
The company agreed to pay $125,000 and also carry out a self-audit as part of the settlement. As a result, the civil penalty was lowered from the original amount of $176,000 when the company was notified in July.
Matador applied for a surface comingling permit in November of 2019, which allows oil produced from different wells to be stored in the same storage facility.
Records show it immediately began comingling but the permit wasn’t issued by the Oil Conservation Division until the following May.
Source: Carlsbad Current-Argus