Apache Corporation Settlement
WASHINGTON (February 13, 2024) – Apache Corporation (Apache) has agreed to pay $4 million in civil penalties and 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.
Apache's agreement settles a civil suit, filed jointly by the United States, on behalf of the Environmental Protection Agency (EPA), and the New Mexico Environment Department (NMED) -- alleging 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. EPA and NMED identified the alleged violations through field investigations and repeated flyover surveillance conducted in 2019, 2020, and 2022.
On this page:
- Overview of Company
- Violations
- Injunctive Relief
- Pollutant Impacts
- Health and Environmental Benefits
- Civil Penalty
- Comment Period
- Contact
Overview of Company
Apache Corporation (Apache) is an oil and natural gas production company, that is a directly held, wholly owned subsidiary of APA Corporation. Its United States operations and interests are primarily in the shale oil and gas producing area of the Permian Basin located in West Texas and southeast New Mexico.
Violations
The proposed Consent Decree addresses Clean Air Act (CAA) violations of the following:
- Standards of Performance for Crude Oil and Natural Gas Facilities for Which Construction, Modification or Reconstruction Commenced After August 23, 2011, and On or Before September 18, 2015, 40 C.F.R. Part 60, Subpart OOOO (NSPS OOOO);
- Standards of Performance for Crude Oil and Natural Gas Facilities for Which Construction, Modification or Reconstruction Commenced After September 18, 2015, 40 C.F.R. Part 60, Subpart OOOOa (NSPS OOOOa);
- Federally enforceable provisions of the New Mexico State Implementation Plan (SIP), including Section 74-2-7 of the New Mexico Air Quality Control Act (AQCA) and its implementing regulations at 20.2.72 NMAC (Construction Permits); and
- Federally enforceable provisions of the Texas SIP, including the Texas Commission on Environmental Quality’s Permits by Rule provisions at 30 Texas Administrative Code Chapter 106.
Injunctive Relief
Apache will spend at least $4,500,000 to implement compliance assurance measures at 422 New Mexico and Texas facilities, including:
- field surveys, in which the company is required to identify and address any compromised equipment with a potential for excess VOC emissions;
- a design analysis of the vapor control systems, followed by a requirement to implement any necessary modifications to ensure the systems are properly designed or sized;
- an ongoing and robust directed inspection and preventative maintenance program at subject facilities to ensure that problems are identified and resolved promptly;
- an extensive monitoring program for subject vapor control systems that includes tank pressure monitoring, vapor recovery unit inlet monitoring, and flare pilot monitoring; and,
- a third-party verification program examining the company’s compliance with all aspects of the Consent Decree’s injunctive relief requirements.
Apache will also spend over $1,000,000 to offset the harm caused by the alleged violations by replacing more than 400 existing pollutant-emitting intermittent-bleed natural gas-driven pneumatic controllers with non-emitting controllers at several New Mexico and Texas facilities by December 31, 2024.
Pollutant Impacts
Apache’s compliance with the consent decree will result in annual reductions of more than 9,650 tons of volatile organic compounds (VOCs), and more than 25,000 tons of greenhouse gas emissions, including methane, measured as carbon dioxide (CO2) equivalents.
Health Effects and Environmental Benefits
The CAA requires the EPA to set National Ambient Air Quality Standards (NAAQS) for criteria pollutants that are considered harmful to public health and the environment. Ozone, is a criteria pollutant that is created with oxides of nitrogen (NOx) and VOC react in the atmosphere. VOC and NOx are emitted by oil and gas production facilities, such as those operated by Apache where the alleged violations occurred. 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 NAAQS for ozone. In counties where ozone levels reach 95% of the NAAQS, the New Mexico Environment Department (NMED) is required by New Mexico state statute to take action to reduce ozone pollution.
VOCs and NOx are key components in the formation of ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. In addition, as a co-benefit of these reductions, the consent decree will result in significant reductions of greenhouse gas emissions. Greenhouse gases from human activities are a primary cause of climate change and global warming. This enforcement settlement further EPA’s commitment to deliver public health protections against climate-impacting pollution and other pollutants for communities across America.
Civil Penalty
Apache has agreed to a final civil penalty of $4,000,000 to be split between the United States and New Mexico.
Comment Period
The proposed settlement, lodged in the U.S. District Court for the District of New Mexico is subject to a 30-day public comment period and final court approval. Information on submitting comments is available at the Department of Justice website.
Contact Information
Christopher Williams, Chemical Engineer (technical)
Air Enforcement Division
U. S. Environmental Protection Agency
1200 Pennsylvania Ave, NW, MC 2242A
Washington, DC 20460 mail or 20004 courier
(202) 564-7889
williams.christopher@epa.gov
Daniel Hoyt, Environmental Engineer
EPA Office of Civil Enforcement, Air Enforcement Division
U. S. Environmental Protection Agency
1200 Pennsylvania Avenue NW, Mail Code 2242 A, Washington D.C. 20460
(202) 564-7898
hoyt.daniel@epa.gov
Alex Chen, Attorney
EPA Office of Civil Enforcement, Air Enforcement Division
U. S. Environmental Protection Agency
1200 Pennsylvania Avenue NW, Mail Code 2242 A, Washington D.C. 20460
(202) 565-0082
chen.alex@epa.gov