Apache Corporation, an oil and gas producer based in Houston, Texas, will pay $4 million in civil penalties to settle a lawsuit alleging it failed to comply with state and federal clean air regulations in New Mexico and Texas, the Justice Department (DOJ) announced on Feb. 14.

The firm is also expected to spend an additional $5.5 million to help address the environmental harm caused by its alleged violations, the DOJ said.

The agreement settles a civil lawsuit (pdf) filed jointly by the United States on behalf of the Environmental Protection Agency (EPA), and the New Mexico Environment Department (NMED) in the U.S. District Court for the District of New Mexico against Apache Corporation.

Officials alleged that the oil and gas firm failed to comply with federal and state requirements for capturing and controlling air emissions. The alleged non-compliance occurred at 23 of its oil and gas production facilities located in Lea County and Eddy County in New Mexico, as well as Loving County and Reeves County in Texas, violating the Clean Air Act.

According to the plaintiffs, the alleged violations were identified through field investigations and repeated aerial surveillance conducted between 2019 and 2022.

During this time, Apache Corporation’s alleged improper storing of the oil at several of its facilities “resulted in, and may continue to result in, unlawful and significant excess emissions” of volatile organic compounds—also known as VOCs—nitrogen oxides, and carbon monoxide, the plaintiffs said.

According to the lawsuit, VOCs, nitrogen oxides, and carbon monoxide are all criteria pollutants for which EPA has enforced National Ambient Air Quality Standards due to the pollutants’ “adverse effects on human health and the environment.”

They are all “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,” the EPA said.

Apache Corporation Must Reduce Emissions

Between 2019 and 2022, air quality monitors in the New Mexico counties of Lea and Eddy registered rising ozone concentrations that exceeded 95 percent of the national standards, according to the lawsuit, prompting NMED to take action to reduce ozone pollution.

“Today’s settlement will ensure compliance at hundreds of oil and gas facilities across New Mexico and Texas,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.

“Under the settlement, over 400 Apache facilities will be required to take extensive steps to reduce emissions of volatile organic compounds, which contribute to smog, as well as methane gas, which is a significant contributor to climate change,” Mr. Kim added.

According to the DOJ, the $4 million fine will be shared equally by the United States and the State of New Mexico, with New Mexico’s portion going to the state’s general fund. Apache Corporation is also required to make sure 422 of its well pads in New Mexico and Texas comply with regulations.

The company will also spend at least $4.5 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.”

Apache Responds to Settlement

Additionally, it will spend $1 million to “offset the harm caused by the alleged violations” including by replacing more than 400 pollutant-emitting pneumatic devices with non-emitting devices.

The DOJ anticipates Apache Corporation’s actions going forward will result in annual reductions of more than 9,650 tons of VOCs, and more than 25,000 tons of greenhouse gas emissions, including methane, measured as carbon dioxide (CO2) equivalents.

Apache Corporation is a wholly owned subsidiary of APA Corporation, which is engaged in the exploration and development of oil and natural gas resources in the United States, according to the DOJ.

In a statement to USA TODAY, Alexandra Franceschi, a spokesperson for Apache Corporation, said the settlement “resolves alleged violations from years ago,” and noted that the oil and gas firm had swiftly worked to remedy the alleged violations.

Ms. Franceschi added that Apache Corporation has modified its facilities to monitor and capture emissions, increased the rate at which it conducts site inspections, and “expedited maintenance timelines.”

“Moving forward, the consent decree represents our commitment to continuous improvement across our facilities in the Permian Basin. We also continue to collaborate with industry partners through organizations such as the Environmental Partnership and the U.N.’s Oil and Gas Methane Partnership in striving toward a more sustainable future,” the spokesperson said.