United States Orders Mewbourne Oil Company to Pay $5.5 Million and Reduce Unlawful Air Pollution from Oil and Gas Wells in New Mexico and Texas, Eliminating More than 11,000 Tons of Harmful Air Pollutants Annually

 US EPA:

United States Orders Mewbourne Oil Company to Pay $5.5 Million and Reduce Unlawful Air Pollution from Oil and Gas Wells in New Mexico and Texas, Eliminating More than 11,000 Tons of Harmful Air Pollutants Annually

Company Also Agrees to Spend $4.6 Million for Preventative Measures and to Help Address Environmental Harm Caused by Its Violations

DALLAS, TEXAS (Aug. 8, 2023) – Mewbourne Oil Company (Mewbourne) has agreed to pay a $5.5 million penalty and undertake projects expected to cost at least $4.6 million to ensure 422 of its oil and gas well pads in New Mexico and Texas comply with state and federal clean air regulations and offset past illegal emissions.

These terms are in settlement of claims alleged in a civil complaint – filed jointly by the United States, on behalf of the U.S. Environmental Protection Agency (EPA), and the New Mexico Environment Department (NMED) – which alleges that, at more than 100 of its oil and gas production operations in New Mexico and Texas, Mewbourne failed to obtain required state and federal permits; failed to capture and control air emissions from storage vessels; and failed to comply with inspection, monitoring and recordkeeping requirements. EPA and NMED identified the alleged violations through field investigations and repeated flyover surveillance conducted in 2019, 2020, and 2022. Mewbourne’s actions taken pursuant to the deal will eliminate more than 11,000 tons of harmful pollutants from the air each year.

“Today’s settlement will eliminate 11,000 tons of harmful air pollutants annually and ensure that Mewbourne complies with the Clean Air Act,” said Principal Deputy Assistant Administrator Larry Starfield of EPA’s Office of Enforcement and Compliance Assurance. “The result will be cleaner, healthier air for communities in New Mexico and Texas.”

“Because New Mexico and Texas contain some of the most prolific oil and gas production areas in the world, emissions from these operations can quickly add up and affect public health and the environment,” said EPA Regional Administrator Dr. Earthea Nance. “All communities in New Mexico deserve the protections of the Clean Air Act, and companies must be held accountable when those protections are violated.”

“Good air quality is essential to the health of our communities, and we need to ensure that oil and gas facilities are properly designed, maintained, and monitored in order to meet national standards,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will continue to work to improve air quality and public health, including holding oil and gas production operations, like Mewbourne, accountable for their violations of federal and state law.”

“Compliance with air quality regulations is essential to ensure the health of our people and the protection of our environment,” said NMED Cabinet Secretary, James Kenney. “We will continue to conduct oil and gas investigations and aggressively enforce violations.”

In addition to paying a $5.5 million fine – to be shared equally by the United States and the State of New Mexico – the consent decree, filed together with the complaint, requires the company to take numerous steps to ensure that 422 well pads covered by the Decree and located in New Mexico and Texas are operated lawfully. New Mexico’s portion of the fines will be sent to the State of New Mexico’s general fund.

Mewbourne will spend at least $3.6 million to implement extensive design, operation, maintenance, and monitoring improvements, including installing new tank pressure monitoring systems that will provide advance notification of potential emissions and allow for immediate response action by the company.

Mewbourne’s compliance with the consent decree will result in annual reductions of more than 9,900 tons of volatile organic compounds (VOCs) and 1,300 tons of methane. VOCs are a key component 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, including reducing methane – a powerful greenhouse gas. 1,300 tons of annual methane reductions equates to more than 33,000 tons of carbon dioxide (CO2). Eliminating the release of this amount of methane per year is similar to eliminating the annual use of 3.4 million gallons of gasoline. Greenhouse gases from human activities are a primary cause of climate change and global warming. This enforcement effort furthers EPA’s commitment to deliver public health protections against climate-impacting pollution and other pollutants for communities across America and helps deliver on EPA’s top commitment in its strategic plan, which is to tackle the climate crisis.

Mewbourne will also spend at least $1 million to offset the harm caused by the alleged violations by replacing over 2,000 pollutant-emitting pneumatic devices with non-emitting devices on an accelerated schedule. This offset project will reduce VOC emissions over 15 years by approximately 4,500 tons beyond that required by existing regulation.

The Clean Air Act (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 when 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 Mewbourne. During the timeframes of Mewbourne’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, NMED is required by New Mexico state statute to take action to reduce ozone pollution.

Mewbourne is an independent oil and gas producer engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States. The company is a large producer in the Permian Basin, which is a shale oil and gas producing area located in southeast New Mexico and West Texas.

This settlement is part of EPA’s National Enforcement and Compliance Initiative, Creating Cleaner Air for Communities by Reducing Excess Emissions of Harmful Pollutants.

The consent decree is available for public viewing on the Department of Justice website. The United States will publish a notice of the consent decree’s lodging with the U.S. District Court for the District of New Mexico in the Federal Register and will accept public comment for 30 days after the notice is published. The Federal Register notice will also include instructions for submitting public comment.