The New Mexico Environmental Department (NMED), citing low compliance rates with air quality requirements, declared plans to increase compliance assurance and enforcement activities across oil and gas operations in the Permian and San Juan Basins over the next six months. This announcement ushers in an unprecedented period of regulatory enforcement in the region.
This new initiative follows increased enforcement activities against oil and gas operators in New Mexico, including a notable $40 million penalty assessment for air quality violations. This enhanced scrutiny reflects broader environmental and regulatory shifts, with local and federal agencies taking a more proactive approach to environmental compliance and enforcement. In addition, the U.S. Environmental Protection Agency (EPA) recently made a similar announcement.
According to an official statement from the NMED, the new enforcement strategy was driven primarily by the continuing low compliance rates with air quality requirements in the region. This presents a clear message to operators within the Permian and San Juan Basins that adherence to environmental regulations is not optional, and failure to abide may result in severe punitive actions.
Over the next six months, affected corporations and law firms must pay attention to these recent announcements by the NMED and the EPA, and expect more stringent inspections and potential enforcement activities. This regulatory shift can significantly impact operations and advocacy strategies. Thus, it’s crucial for stakeholders to stay informed and understand the nuances of these regulatory changes.
For more details and a comprehensive review of the newly implemented strategies, refer to the official commentary by Holland & Hart LLP