New Mexico Environment Department imposed a fine of $24.5 million on Ameredev II

The New Mexico Environment Department imposed a fine of $24.5 million on Ameredev II, LLC, which is the largest fine ever issued by the department for a civil oil and gas violation. This fine resulted from a settlement with the company after the department initially issued a $40.3 million administrative compliance order in June of the previous year. The settlement and subsequent fine were aimed at penalizing Ameredev for unlicensed flaring activities that violated state air regulations.

The fine reflects the state’s firm stance on enforcing environmental laws and its commitment to holding companies accountable for actions that endanger public health and the environment. The state emphasized that companies must comply with established rules and permits to avoid such enforcement actions, using this case as a clear message to the industry about the serious consequences of non-compliance.

The New Mexico Environment Department (NMED) identified Ameredev II, LLC’s unlicensed flaring using a combination of remote sensing technology, on-the-ground inspections, and responses to citizen complaints. This multi-faceted approach allowed the NMED to detect violations effectively and enforce state air regulations.

  1. Remote Sensing Technology: This likely involves satellite imagery or aerial surveillance technology that can detect flares from a distance by identifying the heat signatures associated with flaring.
  2. On-the-Ground Inspections: Physical inspections by NMED staff at the facilities provide direct evidence of flaring activities and help verify data collected through remote sensing.
  3. Citizen Complaints: Reports from local residents or other observers about unusual or suspected flaring activities can trigger inspections or closer scrutiny by environmental regulators.

This comprehensive approach enables the NMED to monitor compliance with environmental regulations accurately and take action against companies that violate state air quality standards.

In this case, Ameredev flared over 3,219,402 thousand cubic feet of natural gas between October 2018 and April 2020, which the state of New Mexico determined was done without proper licensing. This unlicensed activity led to the emission of over 7.6 million pounds of pollutants, including hydrogen sulfide, sulfur dioxide, nitrogen oxides, carbon monoxide, and volatile organic compounds. These emissions can cause serious health issues and contribute to environmental problems such as climate change. The state’s action against Ameredev was aimed at addressing these violations and ensuring compliance with air quality regulations to protect public health and the environment.

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