United States and the New Mexico Environment Department v. Matador Production Company Settlement

(Washington, D.C. – March 27, 2023) - Matador Production Company has agreed to pay a penalty and ensure compliance with both state and federal clean air regulations at all 239 of its New Mexico oil and gas well pads to resolve unlawful operations alleged in a civil complaint filed today under the Clean Air Act and state regulations.

• Overview
• Violations
• Injunctive Relief
• Supplemental Environmental Projects (SEP)
• Pollutant Reductions
• Health Effects and Environmental Benefits
• Civil Penalty
• Comment Period
• Contact

Overview of Company

Matador Production Company (Matador) is a subsidiary of Matador Resources Company, a publicly traded oil and gas exploration and production company incorporated in Texas with operations in New Mexico, Texas, and Louisiana. The consolidated Matador Resources Company has net assets of approximately $2.3 billion.  

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 September 18, 2015, 40 C.F.R. Part 60, Subpart OOOOa (NSPS OOOOa); 

• Operating permit requirements under Subchapter V of the CAA (Title V), 42 U.S.C. § 7661 et seq., which are implemented and administered by NMED, as codified in Part 20.2.70 of the New Mexico Administrative Code (NMAC); 
• 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 20.2.73 NMAC (Notices of Intent); and 
• Provisions of NMED Air Quality Bureau General Construction Permit for Oil and Gas Facilities (GCP-O&G), issued on April 27, 2018, pursuant to 20.2.72.220 NMAC. 

Injunctive Relief

Matador will spend at least $2,500,000 to implement injunctive relief requirements imposed at all 239 New Mexico facilities, including: 

• field surveys, in which the company is required to address all compromised equipment and potential for excess VOC emissions; 
• engineering design evaluations at subject vapor control systems, requiring the company to perform any necessary modifications to ensure each vapor control system is properly designed and sized;
• directed inspection and maintenance activities at subject facilities to ensure proper upkeep and operation of vapor control systems and associated operations;
• an integrated monitoring program for subject vapor control systems, employing automation to maximize recovery of vapors and to prevent excess emissions, including use of storage vessel pressure monitoring, vapor recovery unit (VRU) availability monitoring, flare pilot monitoring, control system bypass monitoring, and flare valve position monitoring; 
• utilization of innovative technologies in lieu of periodic inspections; and,
• a third-party verification program examining the company’s compliance with all aspects of the Consent Decree’s injunctive relief requirements. 

Matador will spend approximately $800,000 to perform the following mitigation projects:

• Replace no fewer than 300 existing intermittent-bleed and 100 existing low continuous-bleed natural gas-driven pneumatic controllers with non-emitting controllers at its New Mexico facilities by January 1, 2025. Matador will ensure that 85 percent of its total controller count in New Mexico are non-emitting controllers; and, 
• Convert three existing natural gas-powered VRUs to electric-drive variable speed VRUs by January 1, 2025.

Supplemental Environmental Project (SEP)

Matador has also agreed to spend $1,250,000 on a federal SEP to replace two diesel Tier 2 engines with two new dual-fuel Tier 4 engines for use in its well completions. Matador will also spend $500,000 to implement an aerial methane leak detection state-only SEP. 

Pollutant Impacts

Matador’s compliance with the consent decree will result in reductions of more than 16,000 tons of pollutant emissions, including oxides of nitrogen (NO_x), volatile organic compounds (VOCs), and carbon monoxide (CO) and more than 31,000 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, CO and nitrogen dioxide (NO₂, a component of NO_x) are criteria pollutants emitted by oil and gas production facilities, such as those operated by Matador where the alleged violations occurred. During the timeframes of Matador’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 NO_x 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. 

Civil Penalty

Matador has agreed to a final civil penalty of $1,150,000 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

Jennifer Lee, 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) 564-5042
lee.jennifer@epa.gov