WPX Energy sued by state of New Mexico

 

One of seven oil and gas companies recently sued by the state of New Mexico for alleged violations of land remediation obligations was Tulsa-based WPX Energy.

The lawsuits accused WPX Energy and the others of failing to remediate land used for extraction operations after production ceased.

In the WPX Energy case, it involved a well in Eddy County which is one of the major energy-producing counties in New Mexico’s share of the Permian Basin.

The State Land Office had issued a lease to the Oklahoma energy company in 2015 and according to the Carlsbad Current-Argus, the contract specified the lease would extend for five years as long as oil and gas was produced on the site.

The lawsuit filed against WPX stated the lease stopped production “well before 2019” and the company was notified by the state in January of this year of the expiration of the lease.

WPX stands accused of failing to comply with requirements to keep the site free of trash and debris and and to clean up spills.

The suit also stated that because WPX had left abandoned tank batteries at the well site, it had committed trespass, punishable with a fine of up to $500 per day of violation.

WPX was notified of the alleged violations in late August.

“WPX has committed the tort of trespass under the common law, and has wasted State resources in the course of committing that trespass, by wrongfully occupying the Subject Lands and by failing to remove debris, reclaim, and remediate the site of its operations on those lands,” read the suit.

New Mexico State Land Commissioner Stephanie Garcia Richard said the suits were part of the Office’s efforts to increase its enforcement efforts this year known as the Oil and Gas Lease Accountability and Enforcement Program.

Click here for further details from the Carlsbad Current-Argus.