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Oil Company Ameredev Slapped with $40 Million Fine for Environmental Violations

New Mexico has taken decisive action against Ameredev II, LLC and its affiliate Ameredev Operating, LLC, imposing a substantial fine of over $40 million for serious violations of emissions standards and air quality regulations. The state’s Environment Department (NMED) and Energy, Minerals and Natural Resources Department (EMNRD) each issued enforcement actions, highlighting Ameredev’s egregious disregard for state rules and permitting requirements.

NMED’s Administrative Compliance Order addresses Ameredev’s multiple violations, including the significant excess emissions of five regulated air pollutants from five facilities located in Lea County. The company was found to have extracted oil and natural gas without complying with New Mexico state law, neglecting the transportation of gas through a midstream pipeline. Instead, Ameredev opted to flare the natural gas, resulting in the release of an amount of CO2 equivalent to heating 16,640 homes for an entire year. This flaring process led to the emission of over 7.5 million pounds of excess hydrogen sulfide, sulfur dioxide, nitrogen oxides, carbon monoxide, and volatile organic compounds.

Environment Secretary James Kenney expressed strong condemnation of Ameredev’s actions, describing the company as one that prioritized profit over public health. He emphasized the need to hold them accountable for their blatant disregard for clean air and the well-being of communities.

The Administrative Compliance Order includes several requirements that Ameredev must fulfill. Firstly, the company is mandated to pay a civil penalty of $40.3 million to the State of New Mexico’s general fund. Secondly, Ameredev must cease all excess emissions from its facilities in accordance with relevant regulations and seek appropriate permits that accurately reflect the equipment and operations on-site. Additionally, the New Mexico regulators have stipulated that Ameredev engage an NMED-approved independent, third-party auditor to assess all its facilities in the state. Furthermore, Ameredev is obligated to undertake projects aimed at mitigating excess emissions.

This decisive action by New Mexico sends a clear message that environmental violations will not be tolerated. It underscores the importance of upholding emissions standards and protecting the health and well-being of communities. The significant financial penalty imposed on Ameredev serves as a stark reminder that companies must prioritize environmental responsibility and take immediate action to rectify their non-compliance.

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