Hilcorp fined $9.4 million over New Mexico methane emissions

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(Bloomberg) — Hilcorp Energy Co., the private oil producer run by billionaire Jeff Hildebrand, will be fined for failing to reduce methane and volatile gases in New Mexico. $9.4 million in civil penalties for emissions.

The U.S. Department of Justice and the Environmental Protection Agency said in a joint statement Thursday that this is the first settlement to address fracking violations under the Clean Air Act’s new source performance standards. The funds will be divided between the federal and state governments, the statement said.

The agencies found that three-quarters of the 192 wells Hilcorp completed in Rio Arriba and San Juan counties in the two years ending in August 2019 did not capture any emitted gases. The new equipment statement said the move would reduce CO2 emissions by the equivalent of 113,000 tonnes, equivalent to taking 24,000 cars off the road for a year.

“Hilcorp is a large, advanced natural gas producer that should know better than to violate the requirements of the Clean Air Act to capture and contain natural gas produced by fracking,” said Assistant Attorney General for the Department of Justice’s Environment and Natural Resources Division. Todd Kim said.

The government reduced the initial penalty after reviewing Hilcorp’s operations over five years, the company said in a separate emailed statement on Friday.

“The alleged violations occurred several years ago and involved short-term procedures on wells with extremely low emission potential,” the company said. “Hilcorp has since made operational adjustments to ensure future compliance.”

More stories like this can be found at Bloomberg.com

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