NM Fines Hilcorp $1.6 million for Well Site Violations

Based on the approved plans, Hilcorp was required to maintain a minimum sanctioned SVE run-time, collect initial and annual gas samples, and submit regular status reports to the OCD. Hilcorp failed to comply with the outlined terms, conditions, and provisions of their approved plans.

September 1, 2021

From the NM Energy, Minerals & Natural Resources Department

       Today the Energy, Minerals and Natural Resources Department’s (EMNRD) Oil Conservation Division (OCD) announces that it issued a notice of violation (NOV) and associated administrative civil penalties of $1,620,000 to Hilcorp Energy Company (Hilcorp) for failing to remediate unauthorized releases and for not meeting the operational and reporting conditions of approval at six active remediation sites. The OCD considers failing to comply with the required terms, conditions, and provisions of a permit, administrative order, authorization, or approval to be a serious violation. Such violations undermine the OCD’s ability to ensure that a release is promptly managed and remediated to ensure that human health and the environment are protected.

      In August 2021, the OCD conducted a compliance review of all active Hilcorp Soil Vaper Extraction (SVE) remediation sites. SVE is a technique where remediation is performed directly on the site without excavating soil contaminants or causing disturbance to the soil structure. SVE is commonly used to remove volatile and some semi-volatile compounds such as petroleum and chlorinated products. During the investigation, OCD inspectors discovered that the SVE remediation systems at six sites were out of compliance with their approved plans and written conditions of approval. Based on the approved plans, Hilcorp was required to maintain a minimum sanctioned SVE run-time, collect initial and annual gas samples, and submit regular status reports to the OCD. Hilcorp failed to comply with the outlined terms, conditions, and provisions of their approved plans.

       “Thanks to the good work of our inspectors, the OCD is able to issue our largest civil penalty since our ability to assess penalties was reinstated in 2020, which sends the message that we take our compliance obligations seriously,” said OCD Director Adrienne Sandoval. “Failure to comply with remediation plans and reporting requirements is a serious violation as it makes it difficult for the OCD to ensure that human health and the environment are being protected. The OCD remains committed to ensuring compliance of the Oil and Gas Act by operators in New Mexico.”

        The operator now has the opportunity to discuss an informal resolution with OCD. If an informal resolution is not reached, OCD will hold a hearing on November 10, 2021.

 

Editor's note:  Hilcorp's New Mexico business activities are mostly in the San Juan Basin, where the company says it operates 15,500 producing wells. 

More from Local News

  • City Breaks Ground on Pinon Hills Extension

    Farmington Officials gathered with representatives from the NM Department of Transportation and San Juan County to break ground on the long-anticipated Pinon Hills Boulevard Extension Project. San Juan County announced that design work on their section of the project is 90% completed.

  • Back to Bloomfield: Summers Selected as New Superintendent

    Kevin Summers will be returning to the Bloomfield School District as Superintendent, after the retirement of Dr. Kim Mizell at the end of the current school year. Summers' hire makes an opening in the Superintendent's Office in Aztec where he has served for the past three years.

  • Fort Lewis College Seeks New President

    Fort Lewis College President Tom Stritikus is stepping down to become the President at Occidental College, a four-year liberal arts college in Los Angeles, Calif.     He will leave after this year’s Spring Commencement scheduled for Saturday, May 4.  

  • First Navajo Set to join Farmington City Council

    There were 10 applicants for the vacant seat for District 2. Herman Buck will serve for 18 months with the option to run for election at the end of the current term. Council unanimously approved his appointment tonight. He will officially take office Wednesday morning after completing the swearing-in process.

  • Aztec Mill Levy Passes by 71 Vote Margin

    Unofficial results show the Aztec Mill Levy Mail in Ballot question passed with the 71 vote margin. The voting deadline was 7pm Tuesday, March 19, 2024.

  • Candidates Declare their Intent to Run in the June 4, 2024 Primary

    Some returning candidates and also some new names from Tuesday's filing day on March 12, 2024. These candidates have filed their notice to run in the June 4, 2024 Primary. Some candidates are unopposed. The winners in June will face off on November 5, 2024.

On KSJE Now:

Today's Weather

  • Farmington, NM

    Sunny intervals

    High: 66°F | Low: 37°F

  • Durango, CO

    Sunny intervals

    High: 57°F | Low: 32°F

  • Shiprock, NM

    Sunny intervals

    High: 70°F | Low: 39°F

  • Cortez, CO

    Sunny intervals

    High: 63°F | Low: 36°F

  • Santa Fe, NM

    Sunny intervals

    High: 57°F | Low: 37°F