New Mexico oil field regulators reached an agreement with | Business news

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

The Division of Petroleum Conservation announced Monday that XTO will pay nearly $1.8 million into the state’s general fund to resolve notices on four wells.

Regulators say XTO is cooperating in correcting the violations and has audited its injection wells to identify and address gaps in regulatory compliance. Company representatives could not be reached for comment.

Last year, the state of New Mexico updated guidelines on disposal wells after increased seismic activity in parts of the Permian Basin, believed to be linked to injection wells for wastewater and other fluids generated during oil and gas production.

The recommendations included emergency response protocols to be followed by operators, including reporting and operational requirements. The advisory also detailed the next steps the Petroleum Conservation Division would take if seismic activity continued in the area.

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