Proper compliance with the New Mexico Oil Conservation Division (NMOCD) natural gas venting and flaring rules is challenging for operators with legacy production. Now imagine it’s early 2024 and your company recently acquired producing assets in New Mexico. While preparing your yearly certificate of compliance with the statewide gas capture rule, you notice that due to your recent acquisition, your capture rate has dropped below your regulatory threshold. Now you are scrambling to find out if the newly acquired facilities are non-compliant due to:
· Improper accounting of onsite beneficial use;
· Previously undetected equipment leaks;
· Unauthorized routine flaring;
· Or improperly completed monthly C-115 reports: .
Considering the statutory requirement to both notify the agency and present a plan to address any non-compliance within 90 days of acquisition and that civil penalties for noncompliance start at $10,000 per day per site, it becomes clear that standard environmental due diligence alone provides insufficient risk management when acquiring assets in New Mexico.
ALL Consulting has assisted multiple operators in complying with New Mexico’s natural gas venting and flaring rules and has helped operators significantly reduce their fines.
If your team needs acquisition or regulatory support for oil and gas assets in New Mexico, please contact Mark F. Kidder or Oliver Seekins for assistance.
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