NM Environment Department fines natural gas company $47.8 million for emissions at Jal plant

A natural gas company operating in Jal, Lea County, has been fined $47.8 million by the New Mexico Environment Department for exceeding permitted emission levels. Targa Northern Delaware, a subsidiary of Targa Resources Corp., was found in violation of state rules for releasing harmful emissions at the Red Hills Gas Processing Plant.

The enforcement action requires Targa to cease all excess emissions at the plant immediately, complete specified projects and improvements estimated at $140 million, and pay the $47.8 million civil penalty. The emissions exceeded permitted air limits by nearly 2 million pounds for five pollutants, including carbon monoxide, nitrogen oxides, sulfur dioxide, volatile organic compounds, and hydrogen sulfide.

These pollutants pose health and environmental risks, such as ozone formation, which was observed at 95 percent of the federal standard near the plant. Additionally, hydrogen sulfide and an estimated 7 million pounds of methane were released into the atmosphere.

NMED General Counsel Zachary Ogaz emphasized the importance of compliance with permits to protect public health. Targa, a major natural gas processor in the Permian Basin, reported increased earnings despite the fine. While the matter is ongoing, management does not expect a significant financial impact.

Some violations were inherited from the previous facility owner, Lucid Energy Delaware, LLC, but Targa is responsible for compliance. The company has 30 days to respond, pay the penalty, or request a hearing. NMED has also involved federal and state agencies in the investigation to address potential violations.