EPA v. Hilcorp Energy Company-Multiple Sites NM-Oil_Gas Consent Decree-FY2025 (HQ Lead)

Case summary

The U.S. alleges Hilcorp conducted well completion and flowback operations at at least 178 gas wells in the San Juan Basin (Rio Arriba County and San Juan County, NM) between 2017 and 2019 based on EPA information requests issued in October 2018, May 2020, and January 2023. As a result, the gas wells were subject to NSPS Subpart OOOOa. In particular, NSPS Subpart OOOOa required Hilcorp minimize its emissions during well completion and flowback operations (i.e., green completion). The U.S. alleges that Hilcorp failed to minimize these emissions, including GHGs and VOC, during the entirety of the flowback, and failed to meet recordkeeping and reporting requirements related to well completion and flowback operations, in violation of the NSPS. The CD will require Hilcorp to comply with well completion requirements of the CAA and NSPS Subpart OOOOa regulations on all well completions going forward. Hilcorp must hire an independent third-party verifier to conduct compliance verification for its well completions. As part of the injunctive relief, the CD will require that Hilcorp replace enough intermittent bleed and low bleed pneumatic controller devices at its San Juan Basin facilities on Tribal lands in NM with process controllers that are not natural gas-driven, to achieve emissions reductions that are more than excess emissions as calculated by the EPA. The CD will require that the mitigation project achieve emissions reductions of no fewer than 1,636 tons of methane (41,556 metric tons as carbon dioxide equivalent) and 659 tons of VOC by June 30, 2028. The mitigation projects will occur on tribal lands of the Jicarilla Apache Nation Reservation (in Rio Arriba County, New Mexico) and the Navajo Nation Off-Reservation Trust Land (in San Juan and Sandoval Counties, New Mexico), areas with potential environmental justice concerns.

Defendants (1)

• Hilcorp Energy CompanyNamed in complaintNamed in settlement

Facilities (47)

• SAN JUAN 30-6 UNIT 85A NO4085

  7.5 MI SE OF NAVAJO DAM, NAVAJO DAM, NM, 87419

  Registry ID: 110038525389

• SAN JUAN 30-6 #436

  ABOUT 40 KM ENE OF BLOOMFIELD, NEW MEXICO, NM, 87413

  Registry ID: 110007145259

• HILCORP - HUERFANITO UNIT 85M

  11.8 MI E OF HUERFANO, HUERFANO, NM, 87413

  Registry ID: 110046351363

• STATE COM L NO8 COMPRESSOR STATION

  3.1 MILES WEST OF CEDAR HILL, CEDAR HILL, NM, 87410

  Registry ID: 110056430250

• CONOCOPHILLIPS - SAN JUAN 31-6 UNIT 212

  9.1 MI NE OF NAVAJO CITY, NAVAJO CITY, NM, 87412

  Registry ID: 110055587388

• HILCORP - FEDERAL 12P

  18.2 MI N OF COUNSELOR, COUNSELORS, NM, 87018

  Registry ID: 110007145259

• STATE COM N NO10 COMPRESSOR STATION

  3 MILES E OF NAVAJO CITY, NAVAJO CITY, NM, 87413

  Registry ID: 110007013409

• SAN JUAN 32-7 UNIT 238

  11 MI N OF TURLEY, TURLEY, NM, 87412

  Registry ID: 110043218924

• SAN JUAN 32-8 NO233 CDP NO47 WELL SITE

  11 MI N OF ARCHULETA, ARCHULETA, NM, 87410

  Registry ID: 110040836110

• CONOCOPHILLIPS - DAY 2C

  4.5 MI W OF TURLEY, TURLEY, NM, 87412

  Registry ID: 110056289984

• SAN JUAN 30-6 #407

  ABOUT 40 KM ENE OF BLOOMFIELD, NEW MEXICO, NM, 87413

  Registry ID: 110007145259

• HILCORP - HUERFANITO UNIT 79N

  12.5 MI E OF HUERFANO, HUERFANO, NM, 87413

  Registry ID: 110046351354

• ARNIE NO1 PRODUCTION FACILITY

  0.25 MI ON HILLS DR, FARMINGTON, NM, 87401

  Registry ID: 110041891888

• EATON WHITE NO1 BLUFFS STATION

  2 MI SW OF FARMINGTON, FARMINGTON, NM, 87401

  Registry ID: 110028277852

• HILCORP - SAN JUAN 29-7 139N

  6.2 MI S OF NAVAJO CITY, NAVAJO CITY, NM, 87412

  Registry ID: 110046478316

• …and 32 more

Statutes cited

• CAA PARTD — New Source Review Permit Requirements
• CAA 111 — New Source Performance Standards

Enforcement conclusions (1)

• Hilcorp Energy Company-Multiple Sites NM-Oil_Gas Consent Decree-FY2025 (HQ Lead)entered 2025-01-23

  Primary law: CAA

  Federal penalty: $4,700,000 · State/local: $4,700,000

Timeline (7 milestones)

• 2021-03-11Referred To Dept Of Justice
• 2021-03-11Referred To Headquarters
• 2021-03-11Referred TO U.S. Attorney
• 2024-10-17Final Order Lodged
• 2024-10-17Complaint Filed With Court
• 2024-12-19Enforcement Action Data Entered
• 2025-01-23Final Order Entered