SANTA FE, N.M. — Ameredev will pay $24.5 million to settle alleged violations of New Mexico state air regulations, environmental officials announced Monday.

Last year, the New Mexico Environmental Department issued a $40.3 million administrative compliance order to Ameredev last June. The $24.5 million settlement announced Monday is still the largest the department has ever reached for a civil oil and gas violation. $24.1 million of it will go into New Mexico’s General Fund.

The NMED reportedly identified five Ameredev facilities that flared the “CO2 equivalent to heating 16,640 homes for one year.” Officials say this released over 7.6 million pounds of excess pollutants into the air. They say the pollutants cause serious health issues, like respiratory issues, impaired cognition and convulsions.

Upon the NMED discovery of compliance issues, Ameredev reportedly worked with a third-party contractor. They reviewed its compliance with state requirements and released the results to the department’s Air Quality Bureau. The bureau is reportedly unaware of any ongoing noncompliance at the Ameredev facilities in New Mexico.

Along with the cash settlement, Ameredev must perform an independent, third-party compliance audit of all of their New Mexico facilities. They must also submit monthly emission reports and:

• Propose, and get approved, mitigation project to conduct weekly Optical Gas Imaging inspections for each facility operating in New Mexico under a General Construction Permit-Oil & Gas for two years or implement an advanced leak and repair monitoring technOlogy.
• Remove equipment from the Azalea Central Tank Battery and submit the appropriate permit application or registration to amend the permit.

If the company fails to complete these actions in time, the state will penalize them $2,000 a day. That will go on until the company rights their wrong(s).

Fines for noncompliance with the settlement’s terms will also go into the state general fund.

A spokesperson for Ameredev issued this statement to KOB 4:

“This is an issue we take very seriously. Over the last four years, Ameredev has not experienced any flaring-related excess emissions events thanks to our significant – and ongoing – investments in various advanced technologies and operational enhancements. We are pleased to resolve this legacy issue, and look forward to continuing to responsibly work with the State of New Mexico and regional stakeholders to support the state’s economic development as well as American energy security.”