New Mexico oilfield regulators reach settlement with company

SANTA FE, N.M. (AP) — State oil and gas regulators say they have reached a financial settlement with XTO Permian Operating to resolve violation notices at wastewater injection sites in southeastern New Mexico.

The Oil Conservation Division on Monday announced that XTO will pay nearly $1.8 million to the state general fund to resolve notices at four wells.

Regulators say that XTO has been cooperative in correcting violations and undertook an audit of its injection well sites to identify and respond to gaps in regulatory compliance. Company representatives could not be reached immediately for comment.

New Mexico updated its guidelines for disposal wells last year following an increase in seismic activity in parts of the Permian Basin that was believed to be associated with injection wells for wastewater and other fluids generated during oil and gas production.

The guidelines included immediate response protocols for operators to follow, including reporting and operational requirements. The guidelines also detailed the next steps the Oil Conservation Division would take if seismic activity continues in the area.