EMNRD News:

SANTA FE — The Energy, Minerals and Natural Resources Department’s (EMNRD) Oil Conservation Division (OCD) announced Tuesday that it has settled a notice of violation (NOV) issued to Mewbourne Oil Company.

The stipulated final order also addresses the proposed administrative civil penalties associated with those violations, which were eliminated based on Mewbourne’s efforts to address OCD concerns and the acceptance of an updated Saltwater Waste Disposal (SWD) permit.

The new permit template, updated as of Jan. 1, 2021, aligns operator reporting requirements with current production reporting criteria and brings permit terms up to date with current requirements of the federal Underground Injection Control (UIC) program. The new template also clarifies operator responsibility for various issues including required responses for mechanical failures, continuing protection of drinking water sources and addressing induced seismicity.

The NOV in question was issued in February 2022 (link here). It included failure to comply with reporting conditions of approval at the Red Hills SWD Well No. 2 (API 30-025-45469). 

Failure to comply with the required terms, conditions, and provisions of a permit, administrative order, authorization, or approval undermines the OCD’s ability to ensure that SWDs are properly constructed and may put human health and the environment at risk.

Mewbourne has been cooperative throughout the informal resolution period, actively working to resolve OCD’s concerns, accepted the updated SWD permit, and is cooperating with OCD to address other concerns within the seismic response area.