Corporate Settlement Reached by Apache
In a recent development, Apache Corporation, a major oil and gas company operating primarily in the Permian Basin, West Texas, and southeast New Mexico, has agreed to settle Clean Air Act violations in the states of New Mexico and Texas.
The violations, which occurred at 422 of Apache's oil and gas well pads, were found to have breached standards of performance for crude oil and natural gas facilities under 40 C.F.R. Part 60, Subpart OOOO, OOOOa, the New Mexico State Implementation Plan, and the Texas SIP.
As part of the settlement, Apache Corporation will pay a civil penalty of $4 million, with $2 million going to the United States and the remaining $2 million to the New Mexico Environment Department (NMED). The company will also invest over $5.5 million in projects to ensure compliance with federal and state clean air regulations.
These projects include field surveys, design analysis, an ongoing and robust directed inspection and preventative maintenance program, an extensive monitoring program, and a third-party verification program. The aim is to reduce emissions of criteria pollutants, particularly volatile organic compounds (VOCs), which contribute to the formation of ground-level ozone.
The compliance with the consent decree is expected to result in annual reductions of more than 9,650 tons of VOCs and over 25,000 tons of greenhouse gas emissions, including methane, measured as carbon dioxide (CO2) equivalents.
During the timeframes of Apache's alleged violations, air quality monitors in the relevant counties in New Mexico registered rising ozone concentrations exceeding 95% of the National Ambient Air Quality Standards (NAAQS) for ozone. In counties where ozone levels reach 95% of the NAAQS, the NMED is required by New Mexico state statute to take action to reduce ozone pollution.
The proposed settlement is subject to a 30-day public comment period and final court approval. Information on submitting comments can be found on the Department of Justice website.
It's important to note that settlements involving Clean Air Act violations typically involve companies agreeing to pay fines, implement pollution controls, or take corrective actions to reduce emissions. These settlements often arise from enforcement actions by the U.S. Environmental Protection Agency (EPA) or state environmental agencies, particularly when violations occur at oil and gas operations in states like New Mexico and Texas.
Ozone, a criteria pollutant, is created with oxides of nitrogen (NO) and VOCs, which are emitted by oil and gas production facilities, such as those operated by Apache. Ozone irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis.
Apache Corporation is a wholly owned subsidiary of APA Corporation. The proposed settlement is a significant step towards ensuring cleaner air and better environmental protection in the affected areas.
[1] Regulatory Update: EPA Proposes to Revise National Ambient Air Quality Standards for Lead (2021), https://www.epa.gov/newsreleases/epa-proposes-revise-national-ambient-air-quality-standards-lead
[2] House Committee on Science, Space, and Technology Holds Hearing on EPA's Proposed Lead Standards (2021), https://science.house.gov/news/press-releases/house-committee-on-science-space-and-technology-holds-hearing-on-epa-s-proposed-lead-standards
[3] EPA Proposes Updates to National Ambient Air Quality Standards for Particulate Matter (2020), https://www.epa.gov/newsreleases/epa-proposes-updates-national-ambient-air-quality-standards-particulate-matter
[4] Senate Committee on Environment and Public Works Holds Hearing on EPA's Proposed Particulate Matter Standards (2020), https://www.epw.senate.gov/public/_cache/files/5/6/56c4f8b7-0e1f-417f-8889-9f27e9515083/062420-epa-particulate-matter-standards.pdf
[5] EPA Proposes Updates to National Ambient Air Quality Standards for Sulfur Dioxide (2019), https://www.epa.gov/newsreleases/epa-proposes-updates-national-ambient-air-quality-standards-sulfur-dioxide
- The enforcement of clean air regulations by the EPA and state environmental agencies, such as the case with Apache Corporation, aims to reduce emissions of pollutants like volatile organic compounds (VOCs) and methane, which contribute to climate change and health issues.
- As part of the Clean Air Act settlement, Apache Corporation will invest in various projects, including field surveys, monitoring programs, and third-party verification programs, to ensure compliance with federal and state regulations and minimize the release of harmful pollutants like VOCs into the air.
- Technology plays an essential role in enforcing clean air regulations, as it enables the implementation of monitoring systems, pollution controls, and directed inspection programs to ensure the reduction of emissions in the oil and gas industry.
- Education and self-development are crucial for understanding the impact of human activities, like oil and gas production, on air quality and one's health. Informing the public about the nature of VOCs, their sources, and possible health effects can encourage responsible behaviors and support the enforcement of clean air regulations.
- Besides oil and gas production, other industries, such as casino and gambling, contribute to air pollution through various means and forms. It is necessary for regulatory bodies to monitor and enforce clean air standards in these sectors to minimize their environmental footprint and promote a cleaner and healthier environment overall.
