Oil Giant Hit with $10 Million Fine for Polluting New Mexico’s Air

Hilcorp Energy, a major gas and oil company, has been fined $9.4 million for failing to divert harmful pollutants from entering the environment over a two-year period, between 2017 and 2019. This penalty stems from violations of the Clean Air Act and New Mexico climate laws, following the company’s failure to control pollution during the completion of nearly 200 oil wells in the San Juan Basin, including lands owned by the Jicarilla Apache and Navajo Nations.

What Happened?

The fine results from Hilcorp’s failure to capture or properly control the planet-warming gases released during the fracking process. During the completion of 145 oil wells, the company allegedly failed to capture any of the pollutants, releasing thousands of tons of harmful gases into the atmosphere. For the remaining wells, Hilcorp only captured a portion of the gas, burning off the rest in flares. The violation was found to have caused significant environmental harm over the two years.

Todd Kim, Assistant Attorney General for the DOJ’s Environment and Natural Resources Division, emphasized the company’s negligence, noting that Hilcorp, as a major natural gas producer, should have been aware of its responsibilities under the Clean Air Act.

Settlement Terms

In addition to the $9.4 million fine, the settlement requires Hilcorp to take corrective actions aimed at removing over 113,000 tons of carbon pollution from the air in the future. This reduction is equivalent to removing 24,000 cars from the road for a year. As part of the settlement, Hilcorp must hire an independent EPA-approved auditor to ensure that future operations comply with federal and state environmental laws.

Significance of the Settlement

This case marks a historic first for the Department of Justice, as it addresses violations involving fracking under the Clean Air Act. While the settlement cannot reverse the damage caused by Hilcorp’s actions, it sends a strong message to the industry about the importance of adhering to environmental standards.

The settlement also highlights the importance of protecting Indigenous lands. The violations occurred on both Jicarilla Apache and Navajo Nation lands, areas that are particularly vulnerable to the environmental impacts of fracking. Native communities often bear the brunt of such activities, and this settlement requires Hilcorp to take additional steps to mitigate pollution on these lands.

Broader Impact of Fracking

Although this settlement addresses air pollution violations, fracking continues to pose significant environmental and health risks. Beyond air pollution, fracking is linked to habitat destruction, species decline, land degradation, and increased human health risks, including cancer, respiratory issues, and pregnancy complications. Additionally, the oil extracted through fracking contributes to the ongoing environmental damage caused by fossil fuel consumption.

Strengthened Enforcement and Future Compliance

The DOJ and EPA have recently ramped up efforts to enforce compliance with the Clean Air Act, conducting more investigations and holding companies accountable for violations. However, many businesses continue to evade scrutiny, underscoring the need for stricter pollution standards and regulations.

What Can You Do?

As individuals, we can play an important role in advocating for cleaner energy solutions and stricter environmental policies. Supporting policies that hold oil and gas companies accountable, divesting from fossil fuels, and making eco-friendly choices in our own lives—such as using public transportation or adopting renewable energy sources like solar—can help reduce reliance on dirty energy.

In conclusion, while Hilcorp’s $9.4 million penalty is a significant step toward environmental justice, it is only one part of the larger effort to hold the oil and gas industry accountable for its impact on the planet. Ongoing action is needed to ensure that all companies comply with the law and protect vulnerable communities from the harmful effects of fracking.

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