Apache: Apache Agrees to $4MM Settlement for Air Pollution Suit

Apache Agrees to $4MM Settlement for Air Pollution Suit This article was first published on Rigzone here Apache Corporation has agreed to pay $4 million in penalties to settle a civil suit alleging that it failed to comply with clean air regulations. The civil suit, which was filed by the United States on behalf of the Environmental Protection Agency (EPA) and the New Mexico Environment Department (NMED), alleges that Apache failed to comply with federal and state requirements to capture and control air emissions from 23 of its oil and gas production operations in New Mexico and Texas. As part of the settlement, Apache is also expected to undertake projects expected to cost at least $5.5 million to ensure 422 of its oil and gas well pads in New Mexico and Texas "comply with federal and state clean air regulations and offset past illegal emissions", the EPA said in a recent news release. The EPA and NMED identified the alleged violations through field investigations and repeated flyover surveillance conducted in 2019, 2020 and 2022, according to the release. The $4 million fine outlined in the settlement will be shared equally by the United States and the State of New Mexico, with New Mexico's portion going to the state's general fund. The consent decree was filed together with the complaint in the U.S. District Court for the District of New Mexico. Apache will also spend at least $4.5 million to implement extensive design, operation, maintenance and monitoring improvements, including installing new tank pressure monitoring systems that will provide advance notification of potential emissions and allow for immediate response action by the company. It will also spend over $1 million to offset the harm caused by the alleged violations by replacing, on an accelerated schedule, more than 400 pollutant-emitting pneumatic devices with non-emitting devices, according to the EPA. Compliance with the conditions of the settlement will result in annual reductions of more than 9,650 tons of volatile organic compounds (VOCs) and 900 tons of methane, which equates to more than 25,000 tons of carbon dioxide, the EPA noted. Take control of your future. Search THOUSANDS of Oil & Gas jobs on Rigzone.com Search Now >> "Today's settlement will ensure compliance at hundreds of oil and gas facilities across New Mexico and Texas", Assistant Attorney General Todd Kim of the Justice Department's Environment and Natural Resources Division said. "Under the settlement, over 400 Apache facilities will be required to take extensive steps to reduce emissions of volatile organic compounds - which contribute to smog - as well as methane gas, which is a significant contributor to climate change". In a statement sent to Rigzone, Apache confirmed that it is "committed to safely producing oil and gas and has made significant environmental progress through ESG actions and commitments". "The consent decree resolves alleged violations from years ago, and we acted swiftly to remedy those issues that were identified', Apache said. "Prior to and during negotiations with the government, Apache modified facilities to implement increased measurement, monitoring, and capture of VOC emissions. Additionally, we have increased the frequency of our site inspections, and expedited maintenance timelines beyond current regulatory requirements", Apache continued. "Moving forward, the consent decree represents our commitment to continuous improvement across our facilities in the Permian Basin. We also continue to collaborate with industry partners through organizations such as the Environmental Partnership and the U.N.'s Oil and Gas Methane Partnership in striving toward a more sustainable future", Apache concluded. Apache Corporation, a wholly owned subsidiary of APA Corporation, is an oil and gas exploration and production company with operations in the USA, Egypt and the United Kingdom. Apache is a large producer in the Permian Basin, which is a shale oil and gas producing area located in southeast New Mexico and West Texas. To contact the author, email rocky.teodoro@rigzone.com More From Rigzone.com, The Leading Energy Platform: >> Find the latest oil and gas jobs on Rigzone.com