NMED fines pure fuel agency $47.8 million over emissions at Jal plant
Company directed to stop polluting and pay civil penalty
News-Sun Staff
JAL – A pure fuel agency with ties to southeast Lea County has been fined by the New Mexico Environment Department over what has been described as “harmful emissions.”
Targa Northern Delaware, a subsidiary of Houston-based agency Targa Resources Corp., was assessed $47.8 million in fines and civil penalties for reported emission releases far exceeding permitted ranges on the Red Hills Gas Processing Plant close to Jal. The enforcement motion cites Targa for alleged violations of state guidelines together with vital extra emissions of regulated air pollution, late reporting of some mandated documentation and an incomplete try at offering a root trigger evaluation to deal with the ability’s ongoing extra emissions.
NMED’s enforcement motion requires Targa to:
– Cease and desist all extra emissions on the Red Hills Gas Processing Plant efficient instantly.
– Complete 16 tasks, initiatives and enhancements to the Red Hills Gas Processing Plant to deal with its operations and extra emissions with an estimated price of round $140 million, as proposed by Targa.
– Pay a civil penalty of $47.8 million to the state normal fund.
In complete, the surplus emissions cited within the enforcement motion tackle practically 2 million kilos greater than Targa’s permitted air emission limits for 5 particular person air pollution: carbon monoxide, nitrogen oxides, sulfur dioxide, unstable natural compounds and hydrogen sulfide. Pollutants launched into the air are regulated by allow limits as a result of they’ll threaten each human well being and to the surroundings, a NMED press launch saying the penalty reported.
For instance, emissions of nitrogen oxides and unstable natural compounds react within the environment to trigger ozone, usually referred to a smog. The NMED investigation confirmed ozone ranges across the plant at 95 p.c of the federal customary. Other compounds reportedly launched embody hydrogen sulfide and an estimated 7 million kilos of methane.
“When the New Mexico Environment Department issues you a permit, it is a legally binding agreement to protect the health of New Mexicans,” stated NMED General Counsel Zachary Ogaz. “If you violate your permit by failing to effectively invest in compliance, we will hold you accountable.”
Targa is likely one of the largest gatherers and processors of pure fuel within the Permian Basin and throughout the nation, based on their public-facing supplies. Targa’s year-over-year adjusted earnings elevated by over $229 million to over $1 billion from the third quarter of 2023 to this 12 months, based on a current firm launch.
Regarding NMED’s investigation, Targa spokespersons stated in a current Securities and Exchanges Commission (SEC) submitting: “Although this matter is ongoing and management cannot predict its ultimate outcome, we do not expect that any expenditures related to this matter will be material to our consolidated financial statements.”
A portion of the surplus emissions and late reporting violations stem from Lucid Energy Delaware, LLC, who beforehand owned the ability earlier than Targa took over in 2022. However, as the surplus emissions and late reporting continued below Targa, it’s the entity liable for the ability and its compliance with state regulation.
Targa should reply to NMED’s enforcement motion and pay the civil penalty inside 30 days or request a listening to earlier than a listening to officer for a call by the NMED Cabinet Secretary.
NMED has additionally referred this matter to federal and state regulatory businesses to analyze further civil and doubtlessly felony violations.
