EMNRD issues $2 million in civil penalties to Murchison Oil and Gas, LLC for environmental breach

Notice of violation involves two separate sites

SANTA FE, NM – Today, the Energy, Minerals and Natural Resources Department’s (EMNRD) Oil Conservation Division (OCD) announced that it has issued a notice of violation (NOV) and proposed cumulative administrative civil penalties of $2,007,900. to Murchison Oil and Gas, LLC for failure to properly report and cleanup two produced water releases located at or near two separate well sites approximately 16 miles directly south of Carlsbad, NM.

Produced water is a byproduct of the drilling or production of oil and gas. When produced water is released, remediation is critical due to the possible levels of contamination.

“Environmental justice means holding polluters like Murchison accountable for their actions,” said EMNRD Deputy Secretary Dylan Fuge. “Murchison’s pattern of non-compliance is unacceptable. We’re sending a message loud and clear: obey the rules or face the consequences.”

Under OCD’s rules operators are required to file release reports, submit remediation plans that meet OCD’s clean-up requirements, and take proper actions to remediate those releases in accordance with the rules. At the two sites identified above, Murchison failed to take appropriate reporting and compliance actions to address the releases, and in fact, took actions that risk exacerbating the possible contamination.

The OCD considers each of the listed violations to be serious, as is Murchison’s failure to comply with the OCDs rules concerning releases and associated cleanup. It is imperative that releases be addressed promptly and in accordance with the regulations.

The operator has the opportunity to seek an informal resolution with OCD. If an informal resolution is not reached, OCD will hold a hearing to enforce the terms of the NOV.